China's Semiconductor Industry Opportunity III: IGBT Industry

IGBT is the latest product of the evolution of power device technology and is the mainstream development direction of future power devices.

IGBT devices (insulated gate bipolar transistors) are a combination of MOSFET and bipolar transistors. Both power MOSFETs have the advantages of easy drive, simple control, and high switching frequency. Another advantage is that the power transistor has low on-state voltage, large on-state current, and low loss. Based on the technical and functional advantages, IGBT products can realize the gradual replacement of the previous power device products. IGBT products combine high-frequency, high-voltage, and high-current three technical advantages. IGBT can achieve energy saving and emission reduction, and has good environmental protection benefits. IGBT is recognized as the most representative product of the third revolution of power electronics technology, and it is the inevitable direction of future application development. IGBTs can be widely used in traditional and emerging fields such as electric power, consumer electronics, automotive electronics, and new energy, and have a promising market.

The explosive growth of the inverter household appliance market has driven the rapid growth of IGBTs. Low-power IGBTs are mainly used in variable-frequency home appliances. At present, China's inverter household appliances have a low penetration rate and have a large market potential. In addition to variable frequency home appliances, there is also a place where IGBTs can be used in non-fire cooking fashion induction cookers. Induction cookers are gradually becoming the main cookers. IGBTs have become key components in induction cookers due to their high frequency and low loss characteristics. At present, the annual output of China's Induction Cooker is 40 million units. In the future, it will increase by 20% to 30%, directly driving the development of single-tube IGBTs.

The motor power consumption is the main body of electricity in the country, and the inverter's energy-saving status is prominent. It is another great help for the growth of the IGBT industry. The inverter is the most ideal motor energy-saving device at present, and has a very broad application space. By applying variable frequency speed control technology, the inverter can adjust the motor speed so that the motor runs at the most energy-saving speed, which greatly reduces the power consumption during operation. IGBT is the key component of the inverter. IGBT is an important part of high-voltage inverters of 3kV and above. IGBTs in a single high-voltage inverter account for 4% to 15% of the cost. According to the information from Shenzhen Inventronics, the IGBT accounts for about 26% of the total cost in the low- and medium-voltage inverters below 3kV. At present, China's motors are equipped with inverters at less than 10%, and are still in the stage of extensive power consumption, which has huge market potential. The frequency converter is also widely used in papermaking, machine tools, metallurgy and other fields, and the demand for IGBT components is extensive.

The high-speed train market has huge potential for IGBTs. In the next three years, China’s high-speed railways will need to complete the construction of 10,000 km of mileage, and the progress of railway construction will accelerate. As of the end of 2009, the total mileage of China's high-speed railway operations is 2,830 kilometers, and according to the plan, it will reach 13,000 kilometers in 2012. Subway and urban railway planning are on the rise. At least 25 cities plan to build or expand subways for a total of several thousand kilometers, demanding more than 1,000 cars. The Yangtze River Delta and other regions have drawn up a total of more than 3,000 kilometers of intercity railway planning, which has increased the demand for EMU trains. High-power IGBT modules are essential components for electric locomotives and high-speed EMUs. Electric locomotives generally require 500 IGBT modules, EMUs need more than 100 IGBT modules, and a subway requires 50-80 IGBT modules. The boom in the high-speed train market will inevitably lead to huge demand for IGBT modules. According to forecasts, the annual market demand for IGBTs in the high-speed rail industry will reach 300 million yuan.

The rise of new energy industry has become a breakthrough point in the future IGBT market. Solar and wind power generators all use inverters. IGBTs are a common way to solve inverters. Solar energy needs to convert DC power into AC power and then use it in parallel with the grid. Wind power generation needs to convert “non-fixed-frequency AC power” generated by “AC-DC-AC” to grid-connected power. Solar energy and wind energy require inverters to generate current during power generation. The IGBT is an important part of the inverter and determines the performance of the inverter. The advent of hybrid electric vehicles (HEVs) and electric vehicles (EVs) has created a new market for IGBTs. In the field of HEV and EV, IGBTs are used in inverters. The inverters are responsible for the direct-to-AC transition of the batteries, thereby driving the motor.

The implementation of the smart grid from planning to large-scale implementation will also become a new market growth point for IGBTs. In the field of smart grids, China has the world's leading UHV DC transmission technology and UHV AC transmission technology. In 2009, the National Grid connected Xiangjiaba to Shanghai ±800 kv UHV DC transmission lines. The innovative DC transmission technology of this project is at the leading level in the world. IGBT is the core component of ultra-high voltage DC transmission technology and UHV AC transmission technology, providing protection for technology. The large-scale implementation of smart grid will realize the "win-win" of China's IGBT and smart grid. The demand of smart grid for IGBT can reach 400 million yuan per year, and IGBT will directly benefit from its huge market demand. At the same time, localization of IGBTs will help maintain China’s global leadership in the smart grid field.