China's IPM (Intelligent Power Module) demand continues to grow, and there is significant room for domestic substitution in the market
Intelligent Power Module (IPM) is an intelligent IGBT power module, an advanced hybrid integrated power device. The mainstream IGBT products include three main categories: IGBT discrete devices, ITBT modules, and IPM. IGBT discrete devices have the simplest structure and lower reliability; The IGBT module encapsulates multiple IGBT chips and FWD chips, adapting to high-voltage, high-current circuits with high reliability; IPM features high integration, simple operation, and high reliability. In the IGBT market, IPM accounts for about 30% of the market share.
IPM is an intelligent IGBT module, composed of BJT and MOSFET, so IPM combines the advantages of both BJT and MOSFET. In addition, IPM integrates components such as logic, control, detection, and protection, further enriching its functions. IPM has advantages such as high current density, low saturation voltage, low driving power, high switching frequency, high functional integration, comprehensive protection functions, ease of use, compact size, and good reliability, making it widely applicable downstream.
According to the "2021-2026 Intelligent Power Module (IPM) Industry Market In-depth Research and Investment Prospect Forecast Analysis Report" released by the New Thinking Industry Research Center, IPM has outstanding performance advantages, can simplify circuit design, reduce space occupied within circuits, and improve operational reliability. It can be widely applied in consumer electronics, home appliances, automobiles, rail transit, industrial equipment, new energy, smart grids, and many other fields. In 2019, China's IPM supply exceeded 18 million units, benefiting from the development of industries such as automotive, industrial equipment, and new energy. It is expected that China's IPM supply will exceed 21 million units in 2021.
White goods are an important downstream market for IPM. China is the world's largest producer of white goods. To achieve energy conservation, emission reduction, and green environmental protection, new energy efficiency standards for Chinese home appliances are continuously rising. IPM is an important component of the variable frequency controller, which is the core component for enabling the variable frequency control functions of white goods. The improvement of home appliance energy efficiency standards has continuously increased the requirements for IPM functionality, energy consumption, size, weight, and reliability in the Chinese market. In addition, the demand for IPM in fields such as automotive and industrial equipment is also growing rapidly, where high performance stability is required. Therefore, high-quality IPM development has become a trend.
The world's leading IPM manufacturers mainly include ON Semiconductor, Infineon, STMicroelectronics, ROHM, Mitsubishi Electric, Fuji Electric, and other European, American, and Japanese companies. China's IPM industry started relatively late, and compared to advanced foreign companies in the technology field, there is a significant gap; the domestic market is mainly occupied by foreign companies. As market demand continues to grow, more Chinese companies are entering the IPM industry. Outstanding companies have achieved independent R&D and production throughout the entire process from chip to packaging, supplying the market in bulk.
Industry analysts at New Thinking Group stated that the main IPM manufacturers in China include Silan Micro, StarSemiconductor, Huawei Electronics, Hongwei Technology, Xinneng Semiconductor, Xinguang Runze, BYD, and others. With continuous improvement in production capacity, the market share of domestic IPMs has risen, but the core competitiveness of domestic companies lags significantly behind foreign companies. Currently, the domestic IPM market is still dominated by foreign companies, leaving huge potential for domestic substitution in the future.
