According to Yole's forecast, the market value of SiC devices will reach nearly $10 billion by 2029, with a compound annual growth rate of 24% from 2023 to 2029. Automobiles and mobility (mainly BEV applications) have driven the growth of SiC. This industry will dominate the majority of the market in 2023 and is expected to further grow by 2029. As of 2024, Tesla and other 400V BEVs represent the largest demand for SiC. OEM launches more 800V BEVs to create stronger momentum. Industrial applications, including the energy sector, are another key area for the growth of SiC. Photovoltaic inverters and high-power electric vehicle DC chargers are one of the most promising industrial applications of SiC technology. Although many companies are evaluating the use of SiC devices, industry concerns about the availability and cost of SiC wafers and devices are still hindering the wider adoption of this technology in the face of higher demand. Therefore, the SiC industry is investing heavily in improving the manufacturing capabilities of wafers and devices. Due to easier supply of SiC wafers, focus shifts to SiC devices As of 2024, the IDM business model that integrates at least design, device manufacturing, and packaging is the mainstream in the power SiC field, as it can respond to the needs of automotive applications (the main market drivers). Due to limited supply from SiC wafer suppliers before 2022, most major device manufacturers have also integrated their SiC wafer capabilities internally in recent years. Unlike Wolfspeed, Rohm, onsemi, and STMicroelectronics, companies such as Infineon, Bosch, and various foundries focus on device level and procure SiC wafers from external sources. Most of the value of

SiC comes from device manufacturing, which is also affected by the rapid decline in prices of SiC wafers and epitaxial wafers. At the same time, the production of SiC wafers and epitaxial wafers in China has significantly increased in the past two years, becoming another key factor driving the evolution of the SiC supply chain. The main participants are committed to the 8-inch transformation and overcoming challenges As of 2024, 6-inch SiC wafers have become the mainstream choice for leading companies, and this situation is expected to continue until 2029. 6-inch wafers are being commercialized, with prices significantly decreasing. Meanwhile, most equipment manufacturers continue to expand their 6-inch wafer production capacity. The technical challenges of 8-inch SiC manufacturing include the quality of crystal growth and wafer cutting processes, as it requires a thickness of 350 μ m to be comparable to 6-inch wafers and maintain cost competitiveness. Leading companies are adopting new PVT furnace designs

to achieve better thermal zone control and using laser wafer cutting to reduce cut loss and warpage issues. There are two main types of SiC MOSFETs coexisting in the market: planar and trench. As far as we know, more and more device manufacturers are developing trench MOSFETs for future generations. Power Semiconductor Revolution: Transformation and Trends In the constantly developing field of power semiconductors, significant changes have occurred in the past decade, and reliable indicators indicate that significant changes will occur in the future. The entire power electronics market, including discrete devices and modules, is expected to be worth $20.9 billion in 2022 and is projected to grow to $33.3 billion by 2028. From a historical perspective, silicon has always been the dominant technology - the evolution of silicon is still ongoing, with the adoption of 300mm Si MOSFET and IGBT platforms ensuring its continued cost competitiveness. But the rapid rise of wide bandgap (WBG) technology, especially silicon carbide (SiC) and gallium nitride (GaN), has had the greatest impact on reshaping the industry. SiC is experiencing significant growth. It is expected that by 2029, the SiC power electronics market will reach $10 billion, accounting for 28.6% of the global market. This is due to technological trends such as the 200mm platform, higher power density, and optimized power module packaging. The transition of SiC ecosystem towards vertical integration has driven these trends. For example, leaders such as STMicroelectronics, ROHM, ON Semiconductor, and Wolfspeed are enhancing their supply chains to include internal substrate production capabilities. At the same time, great efforts have been made to

expand SiC wafer production capacity, especially by Chinese companies such as Tankeblue, SICC, SemiSiC, etc. GaN technology is also showing strong growth in various application areas, including consumer electronics and automotive, particularly in fast chargers and overvoltage protection, as well as power applications in household appliances and data centers. Innovation has also driven the exploration of next-generation semiconductors, such as bulk GaN, gallium oxide, and diamond. Electric vehicles (EVs) have gained considerable market recognition and occupy a significant share in the entire power electronics industry. By 2023, almost 30% of all passenger cars sold globally will be electric vehicles. It is expected that this proportion will increase in the coming years, and electric vehicles are expected to account for 50% of all passenger cars by 2028. Electric vehicles represent a huge and sustainable market opportunity, but their impact is also broader. The automotive industry is renowned for promoting standards and introducing new technologies in power electronics. Its direct motivation is to increase driving mileage and reduce costs. But these advances have repeatedly changed the trend of power module technology, battery pack development, and streamlining the supply chain. As this technology is applied to various industrial applications that require strong performance and higher efficiency, it creates new opportunities. Electric vehicles are entering a new stage of market expansion, commonly referred to as the 'shift towards more affordable cars'. After initially being enthusiastic about high-power, long-range cars, car manufacturers are expanding their customer base to include those seeking electric vehicles in the price range of $20000 to $25000. This involves various cost reduction strategies, such as reducing electric motor drive power, shrinking on-board charger power, reducing battery capacity, improving system integration, and reducing SiC content in vehicles. These trends are affecting the electric vehicle supply chain,

and China is adopting a different strategy than Europe and the United States. Although affordable electric vehicles are seeking ways to use more silicon, it is expected that the automotive industry will continue to dominate the demand for SiC devices in the foreseeable future. SiC has made a breakthrough in Tesla Model 3 and is widely used in 800 V battery electric vehicles (BEVs), which are expected to occupy nearly 80% of the market share. Major manufacturers such as Tesla and BYD are increasing their use of SiC technology, while BYD is also developing internal SiC capabilities and collaborating with other semiconductor companies to supply SiC. The adoption of SiC technology requires consideration of cost issues. But recent capacity expansion of SiC wafer and device technology, advances in packaging technology, and market dynamics are reducing costs, making SiC technology easier to apply to a wider range of fields. Reducing costs is also the fundamental driving force for intelligent integration of power electronics. The main focus is to minimize energy waste, maximize the potential of renewable energy, and ultimately reduce the impact on the environment. Intelligent integration achieves this at various levels of the energy ecosystem, utilizing the synergies between different applications such as power generation, distribution, energy storage, and consumption. It is applied to connect everything from wind, wave, and photovoltaic systems to battery storage or hydrogen production systems and power grids, as well as

households, electric vehicles, and industrial consumption. This trend has impacted a series of technological developments that require reducing the size and cost of solutions to simplify deployment and promote adoption. From liquid cooling to wide bandgap technology, solutions need to be developed across multiple fields. Therefore, developers need to diversify their professional fields and organize exploration of new business opportunities to provide complete solutions. In this sense, intelligent integration is reshaping the supply chain, and mergers and acquisitions are predictable. With the expansion of production capacity, especially SiC capacity, coming online in 2024, supply constraints may be alleviated to some extent. This will promote significant growth and market opportunities in the automotive, industrial, and energy sectors, thereby driving further applications of power electronics technology.