As demand for automotive electronics is surging, so is production of power and compound semiconductors.

According to SEMI, an association representing semiconductor equipment and raw materials makers across the world, worldwide wafer capacity for power and compound semiconductors is forecast to top 10 million units per month in terms of 8-inch wafer equivalents in 2023.

The monthly wafer capacity is expected to hit 10.24 million wafers in 2023 and then grow to 10.60 million units in 2024, as a growing number of cars are now being electrified and digitalized in what’c called as “computers on the wheel”.

Regionally, China will lead the wafer installment boom, accounting for 33% of worldwide wafer capacity for power and compound semiconductor in 2023, as the country’s car makers are racing to produce more of EVs.

Home to world’s car production, Japan will also represent 17% of the capacity, closely followed by Europe and Middle East and Taiwan that account for 16% and 11%, respectively.

SEMI expects 63 companies to add more than 2 million wafers per month in the 8-inch equivalents from 2021 through 2024. Companies like Infineon, Hua Hong Semiconductor, STMicroelectronics, and Silan Microelectronics will lead the way, collectively adding 700,000 wafers per month.

As with the case, 47 new fabs will have been built from 2021 through 2024 to produce power and compound semiconductor. In total, 755 fabs will allocate wafers to fabricate power and compound semiconductors in 2024