In recent years, the rise of electric vehicles (EVs) has positioned silicon carbide (SiC) technology at the forefront of semiconductor innovations, garnering unprecedented attention within the industryThe pivotal role played by SiC in driving advancements in electric vehicles signals a shift towards a more sustainable futureNot only are leading international manufacturers beginning to capitalize on the profitability of SiC, but Chinese companies are rapidly closing the technology gap within this promising realm, setting the stage for a dramatic expansion in production capabilities across the globe, particularly concerning 8-inch wafer production.

Silicon carbide is recognized as a third-generation semiconductor with a bright developmental outlook, creating synergies between top semiconductor companies and automotive and energy enterprises

By 2023, the market for silicon carbide power devices is projected to reach approximately $2.28 billion, and estimates predict this figure could soar to $8.69 billion by 2028 for conductive silicon carbide devices aloneThe burgeoning demand underscores the integral role these materials will play across various sectors, including EVs, telecommunications, industrial machinery, and photovoltaics.

As silicon carbide continues to transition from inception to early industrialization phases, its applications within electric vehicles, communication technologies, and clean energy solutions are becoming increasingly validatedLeading international SiC manufacturers reported remarkable year-on-year improvements in their fiscal performance for 2023, prompting aggressive expansions in their manufacturing capabilitiesDomestic firms are also making substantial technological breakthroughs, effectively enhancing the competitive landscape

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The domestic industry supply chain for silicon carbide diodes has matured, while significant acceleration is being seen in the commercialization of MOSFETs, making the leap toward heightened 6-inch production capacity while preparing for the lucrative opportunities presented by 8-inch manufacturing processes.

The growth potential of the commercial value of silicon carbide is becoming increasingly observableThird-generation semiconductors encompass a range of compound materials, including SiC, gallium nitride (GaN), zinc oxide, aluminum oxide, and diamondThese wide bandgap semiconductor materials hold distinct advantages over traditional silicon counterparts, particularly in high-voltage and high-temperature applications.

The substrate materials for silicon carbide can be classified into conductive and semi-insulating types based on their resistivity

Conductive SiC power devices require epitaxial growth on conductive substrates, followed by machining to produce components such as MOSFETs and IGBTsOn the other hand, semi-insulating substrates facilitate the growth of gallium nitride (GaN) for radio frequency devices, most notably for applications in 4G and 5G telecommunications and advanced radar systemsIn the overall downstream market structure for conductive silicon carbide devices, electric vehicles account for a staggering 70% share, showcasing the essential role these components play in modern automotive technology.

A prime driver behind the transition toward 800V electric vehicles lies in their dependence on robust power semiconductor devicesTraditional silicon IGBTs, operating at a 450V platform, typically withstand a maximum voltage of 650VWith the anticipated shift to an 800V architecture, voltage ratings must reach a more demanding 1200V threshold, accommodating factors such as switching voltage and surge overloads

Research indicates that silicon carbide technology, particularly SiC MOSFETs, can enhance electric vehicle range by 5%-10%, facilitating a reduction in inverter coil and capacitor sizes while minimizing losses for electric motor systemsRemarkably, the dimensions, on-resistance, and average energy loss of SiC MOSFETs stand at just one-tenth, one-two hundredth, and one-fourth, respectively, of their silicon counterparts.

The global trend toward electric vehicles experienced a significant milestone in 2023, achieving sales of approximately 14.653 million units – an impressive year-on-year increase of 35.4%. Beginning in 2018, major automotive brands have gradually adopted silicon carbide solutions in their electric drivetrains, leading to vehicle price ranges as low as 200,000 yuan (approx$30,000). This technological shift is coinciding with a continuous rollout of collaborative projects between top semiconductor manufacturers and the automotive and energy sectors

By the end of 2023, the overall market for silicon carbide power components is expected to account for an impressive $2.28 billion.

Despite the pronounced benefits of silicon carbide technology, its higher cost—roughly three times that of silicon devices—remains a significant barrier to the industry's rapid growthNevertheless, there are predictions that SiC will begin to displace traditional silicon IGBTs, ushering in a new era of power semiconductor devicesBy 2028, silicon carbide is anticipated to capture an approximate 25% market share within the power semiconductor landscape, reflecting an ongoing shift toward modern materials.

The array of applications associated with silicon carbide materials is on the rise, manifesting in both industrial and consumer sectors, with solutions rapidly penetrating these markets

According to recent data from Yole, the silicon carbide device market was valued at $1.97 billion in 2022, with conductive SiC power components contributing $1.79 billion and semi-insulating GaN RF devices adding $180 millionProjections suggest dramatic growth by 2028, with conductive SiC power devices expected to command an $8.69 billion market size and a compound annual growth rate (CAGR) of approximately 30.12%, while semi-insulating RF devices should achieve $229 million with a CAGR of around 52.79%.

In China, domestic manufacturers have recently gained significant ground in silicon carbide production, with advancements in terms of quality and technological capabilities for substrates, particularly 4-inch and 6-inch diameters, achieving internationally competitive standardsHowever, prevailing technical gaps still persist compared to global leaders, particularly regarding the 8-inch SiC substrate as an immense opportunity for domestic manufacturers to leapfrog into mainstream production.

Research and development conducted by leading Chinese companies, such as Jing Sheng and Tian Yue, have yielded remarkable advancements in 6-inch SiC crystal growth furnaces and process technologies, enabling them to tackle challenges associated with uneven temperature fields and crystal fractures

As they prepare to leverage 8-inch SiC growth methodologies effectively, their efforts to reduce the proportion of substrates in overall SiC device costs are pivotal in creating a foundation for widespread deployment.

Increased focus on multi-wire cutting techniques has also emerged, allowing for improved cutting quality between adjacent silicon carbide crystalsBy optimizing cutting fluids and refining process parameters, manufacturers are elevating the quality of their productsRecent achievements in device manufacturing are noteworthy, with companies like Yangjie achieving breakthroughs in SiC SBD and MOSFET products suitable for automotive applications and substantial orders from both domestic and international clients.

Looking ahead, global giants such as STMicroelectronics, Infineon, Wolfspeed, and ON Semiconductor stand testament to the growing silicon carbide power device market

STMicroelectronics, for instance, reported income from SiC product sales of $1.14 billion in 2023, with expectations of reaching $1.5-$1.6 billion by 2024. Infineon forecasts a surge in revenue to €750 million in the fiscal year 2024, leveraging a $5 billion investment into expediting their Malaysian SiC production facilities for 8-inch substratesMeanwhile, Wolfspeed is expected to complete its state-of-the-art U.Smanufacturing center, dedicated to the production of 200mm SiC wafers, by late 2024.

On semiconductor companies’ part, ON Semiconductor's recent expansion in its SiC facility culminated in an astounding revenue increase of more than 400% in 2023. With expectations set for 8-inch wafer certification and increasing production capacity set to occur by 2025, the outlook remains promising as they anticipate a sustained supply-demand imbalance for silicon carbide in the coming years.

Furthermore, advancements in domestic companies reflect the overall health of the silicon carbide industry

For example, Tian Yue achieved a nearly 200% revenue increase by 2023, while other firms keep pushing for production lines capable of producing large volumes of SiC MOSFETs, with the potential to greatly expand their output in the coming yearsChina’s diverse silicon carbide supply chain is nearing completion, poised to meet increasing demands for components across photovoltaic systems, energy storage solutions, DC fast-charging modules, hydrogen fuel cells, and UPS power supplies.

As industry dynamics evolve, companies are actively seeking market opportunities beyond conventional applicationsThe environmental impact reports for projects like Gree's electronics components expansion point to a broader interest in silicon carbide investments beyond energy and automotiveWith technological advancements underway and projected market growth, the silicon carbide landscape stands ready to transform numerous sectors, assuring a pivotal role in driving forward the green energy transition.