(Yicai) Jan. 20 -- China's Gree Electric Appliances will begin mass production of silicon carbide chips for photovoltaic energy storage systems and logistics vehicles this year, expanding the use of its self-developed semiconductors beyond home appliances, a senior executive said.

The Zhuhai-based home appliance maker has already mass-produced silicon carbide chips for household products, with more than two million air conditioners equipped with the devices, which help lower operating temperatures and improve energy efficiency, according to Feng Yin, assistant president of Gree and general manager of Gree Electronic Components.

Feng said at an industry conference that silicon carbide devices for PV and energy storage products, as well as those used in central air conditioning chillers and logistics vehicles, will enter mass production this year. Gree has built a silicon carbide factory compatible with both six-inch and eight-inch wafers and equipped with a fully automated crane system. The facility can provide automotive-grade testing services and also offers foundry services to external clients, Feng added.

A few days earlier, Gree Chairwoman Dong Mingzhu said during a meeting with Feng Xingya, chairman of GAC Group, that half of the automotive chips used by GAC will be replaced by Gree’s products in the future.

Gree began introducing silicon carbide devices from US companies into its cabinet air conditioners in 2019 to improve energy efficiency. In 2023, the company established its electronic components unit, with the production line becoming operational by the end of that year. The first phase is designed to have an annual capacity of 240,000 six-inch silicon carbide wafers. By 2025, Gree’s cumulative chip sales had exceeded 300 million units.

Despite streamlining its upstream chip supply chain, Feng said Gree’s electronic components business still faces pressure. Intense price competition in the industry has made some clients cautious about costs, while certain machinery and equipment components remain dependent on imports. He said the company hopes to strengthen external partnerships to help more chip design firms with manufacturing and to work with suppliers to address industry bottlenecks.

Feng added that compound semiconductors such as silicon carbide and gallium nitride, which feature low energy consumption, high-frequency resistance, and compact size, have broad application prospects in areas including augmented reality glasses, electric vehicle charging stations, super energy stations, and the low-altitude economy.

Editor: Emmi Laine