According to data from Jibang Consulting, silicon carbide is accelerating its penetration in application markets that require high power density and efficiency, such as electric vehicles and renewable energy. The overall market demand is expected to continue to grow in the coming years. It is expected that by 2028, the global market size of SiC power devices will reach 9.17 billion US dollars.

    The application market of silicon carbide: electric vehicles and 5G communication dual wheel drive

At present, the two main application markets of SiC are: one is to replace silicon-based IGBT in electric vehicle inverters, charging piles, solar power generation, and DC power grids; The second is the use of gallium nitride (GaN) on SiC substrates for RF power amplifiers (RF power amplifiers) in 5G base stations. In these fields, SiC's high efficiency and high power density characteristics make it an ideal material, driving its rapid penetration worldwide.

    In the SiC industry chain, substrates are a key raw material with high technological content and are one of the most valuable areas. The proportion of substrate in the cost of SiC components is at least 50%. With the continuous expansion of SiC applications, the production technology and capacity demand for substrates have also increased.

Market challenge: oversupply leading to a sharp drop in prices

    According to foreign media reports, there will be an oversupply in the SiC market in 2024, leading to prices falling below production costs and disrupting the global supply chain. Xu Xiulan revealed that the price of 6-inch SiC substrates has plummeted by over 50%, reaching an unprecedented low. Although the price of 6-inch SiC substrates has stabilized, the short-term market recovery is not yet evident.

    With the sharp decline in SiC substrate prices, some small businesses are facing profit pressure and even falling into difficulties, leading to increasingly fierce competition in the industry. However, despite price fluctuations, the long-term prospects of the SiC market are still optimistic, especially driven by rapidly growing market demands such as electric vehicles, renewable energy, and 5G communications.

    Technological progress on the device side: improving production efficiency and quality

    Xu Xiulan also stated that the technology of silicon carbide crystal growth equipment and cutting, grinding, polishing and other processing equipment is constantly improving. The new crystal growth equipment not only improves the growth rate of silicon carbide crystals, but also enhances the quality of the crystals. Advanced processing equipment can further optimize the flatness and surface quality of the substrate, thereby better meeting the requirements of high-end chip manufacturing.

    With the advancement of equipment technology, the production efficiency and quality of SiC substrates are expected to be significantly improved, which will lay the foundation for more efficient and low-cost SiC device manufacturing in the future and further promote the popularization of SiC in multiple high-end application fields.

   epilogue

   Despite facing challenges such as price fluctuations and supply-demand imbalances in the current market, the long-term prospects of the SiC industry remain bright. With the gradual advancement of research and production of 8-inch SiC substrates, the supply capacity of the SiC substrate market will be further enhanced, and it is expected to continue to maintain a growth trend in the coming years. Meanwhile, the continuous advancement of device side technology will also provide strong support for the efficient production of SiC substrates. Overall, the SiC industry will move towards a healthier and more sustainable development stage driven by technological advancements, market demand, and supply-demand balance.