Electric Vehicle Power Module Business Case

The Electric Vehicle Power Module Business Case is a detailed report on quickly achieving profit in power module packaging.

It includes various types of costs, such as Clean room, Investments, selling prices, Margins, Market Demand Analysis, market Drivers, Challenges, Financial Projections, the Location of the Plant, and other Electric Vehicle Dynamics. The Financial Projection is available in the Excel sheet.

Power Module Business Case:

These three components are essential components of Electric Vehicles of cars and Commercial vehicles. These 3 components are decisive in Electric Vehicle Production planning and Sales forecast. Batteries, Electric Motor, and Power Module contribute between 60% and 70% of the Electric Vehicle Bill of Materials (BOM).

In 2022, only selected manufacturers, such as Infineon, SemikronDanfoss, Bosch, and Hitachi, were manufacturing the Power Module for EVs. At this time, demand was high, and supply was limited. Establishing a manufacturing line in Germany costs around 16 to 18 million euros. The business case gives different results for Moulded Halfbridge Power Module, 6P, Discrete Power Module, and Types of Semiconductors, such as Si or SiC. Since one of the key components of the power module is the semiconductor, its production planning, product cost, and supply depend to some extent on the semiconductors.

For a long time, Companies like Stellantis, ZF, and Rivian faced serious supply issues from their Power Module packaging companies.

Infineon Semiconductors is costly because its quality and delivery are among the industry’s best. Wolfspeed’s new-generation SiC semiconductors are one of the major suppliers of power module packaging companies. Rohm Semiconductor also offers a better offering for cost control and semiconductor performance.

To get an attractive ROI on Power Modules, packaging companies need to control their costs, like using Aluminum instead of Copper, making them compatible with both 400V and 800V vehicle architecture, reaching a larger market size, Focusing on the value segment instead of the premium one, delivering the Power Module on time and do not necessary charge to the customer (OEMs and Tier 1 Suppliers) for the name of the customization.

BMW and Mercedes are focusing on the most advanced power modules, such as the closed 6P SiC type.

Some OEMs plan to set up in-house Power Module packaging to fulfill the timely requirement and cost savings.

In preparation for the Business case, ACG predicts the future cost structure, Capex, Selling price, Competitor scenario, Inflation, and Market demand.