SMC Diode Solutions is a semiconductor design and manufacturing company based in Nanjing, China. It is an American-led company with sales offices in the U.S., China, Germany, and South Korea.
SMC Diode Solutions recently opened a second fabrication plant in Nanjing, China, enabling end-to-end manufacture of silicon carbide Schottky rectifiers and MOSFETs. What are the impacts of your advancements in this technology on the semiconductor world?
Both Schottky rectifiers and MOSFETs are fundamental devices in the semiconductor world. Their functions are simple, and therefore the real focus in the power electronics industry is their efficiency—reducing power loss during operation. Our goal is to push the boundaries of design and processing technology to make these devices more efficient. Much of the progress in this field comes from incremental improvements over many years, and with our new fab, we have significant room for technological improvement.
The ultra-fast recovery diodes market is growing rapidly, with projections of a 9.3% annual growth rate until 2031. What role do ultra-fast recovery rectifier diodes and TVS diodes play in shaping the future of electronics and technology?
Ultra-fast recovery diodes function like switches, designed to turn on and off as quickly as possible. If they can't turn off fast enough, energy is wasted—similar to a faucet that doesn't shut completely. However, achieving this speed comes with trade-offs, as we often need to balance speed with parameters like voltage drop and power consumption. Our focus is on fine-tuning this balance to meet specific customer applications.
As a component manufacturer, we work closely with customers to understand their requirements. While our products may not drive industry applications directly, they are integral to enabling our customers to achieve greater efficiency in their fields.
What emerging applications are driving demand for diodes among your customers?
Electric vehicles (EVs) are a key growth area, with diodes and MOSFETs—both silicon and silicon carbide—being integral to various components. Renewable energy, particularly photovoltaic systems, is another significant application. These systems require inverters to convert DC power from solar energy into grid-compatible AC power, where efficiency improvements are crucial.
AI is another emerging sector, as data centers and servers demand efficient power supplies. Reducing heat generation and energy loss in these environments is critical, and ultra-fast rectifiers and silicon carbide devices are increasingly important in meeting these needs. These applications highlight the diverse ways our components enable efficiency in growing markets.
Where are you seeing the strongest regional demand for your products, particularly in sectors like EVs, renewable energy, and AI?
The EV market is growing very fast in China, with new brands and increasing adoption rates. Renewable energy is also advancing quickly there, driven by strong governmental and market initiatives. Meanwhile, AI-related applications and data center efficiency improvements seem to be developing faster in the United States and Europe.
How does SMC navigate tensions and trade complexities, such as tariffs and supply chain challenges, between the U.S. and China?
Because diodes and MOSFETs are basic components, we haven't faced significant trade restrictions. For semiconductors, however, import tariffs to the U.S. will rise from 25% to 50% on January 1st, 2025.
Geopolitical factors are beyond our control - as a manufacturer, we cannot manage our day-to-day business based on that. We focus on what we can manage: making good products. For the moment, our customers abroad are willing to pay elevated tariffs for quality.
How does SMC maintain timely deliveries across a global customer base?
Staying close to our customers is paramount. For larger clients, we plan annually, quarterly, and monthly, enabling us to prepare well in advance. We also maintain stock of half-finished products, reducing lead times to just 25% of normal production timelines.
For smaller customers, our global distribution network helps ensure short delivery times. Planning is key to managing surprises, and by understanding customer needs thoroughly, we can adjust and adapt as required to deliver high-quality products efficiently.
