In recent years, the automotive industry has witnessed a significant transformation influenced by the proliferation of new energy vehicles (NEVs). As a fundamental component of these vehicles, silicon carbide (SiC) semiconductor technology has garnered substantial attentionIts role in improving performance and energy efficiency is becoming increasingly crucialMajor global semiconductor manufacturers are now emphasizing SiC technology, marking a turning point in its commercialization and enabling a brighter future for this burgeoning sectorThe growing investments in SiC production reveal a strong push towards scaling up capacity, with an increasing trend towards 8-inch wafer production.

Considered a key player in the third generation of semiconductor materials, SiC is not only used in NEVs but also finds applications across communications, industrial sectors, and solar energy

The global market for SiC power devices in 2023 is projected to reach approximately $2.28 billion, while experts forecast that by 2028, the market will expand to $8.69 billion for conductive SiC power devices and $2.29 billion for semi-insulating SiC RF devicesThe practical applications in various industries validate its commercial value, with significant improvements in revenue observed among leading overseas SiC manufacturers, who are now aggressively expanding their production capacities.

However, to fully understand the evolution of SiC technology, it is essential to grasp its classification as a wide-bandgap semiconductor material encompassing compounds such as gallium nitride (GaN), zinc oxide, aluminum oxide, and diamondThe substrate materials for SiC are distinguished between conductive and semi-insulating types, which affects the manufacturing process of SiC-based devices

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For instance, SiC power devices require the formation of SiC epitaxial layers on conductive substrates, further processed into MOSFETs and Insulated Gate Bipolar Transistors (IGBTs), whereas semi-insulating substrates are used for the production of RF devicesNEVs command the largest market share for conductive SiC devices, accounting for nearly 70% of the downstream marketOther sectors such as charging equipment, photovoltaics, and industrial applications account for a smaller percentage.

One of the most compelling benefits of SiC technology is its impact on electric vehicles' efficiencyFor example, widely-used silicon-based IGBTs offer a voltage rating of around 650V at a 450V platformHowever, with advancements in automotive electric architecture elevating to the 800V range, SiC MOSFETs become integral as they can withstand voltages up to 1200V

A comparative study indicates that SiC MOSFETs can enhance electric vehicle battery life by an impressive 5%-10%, significantly optimizing components in inverters and reducing motor lossesThe compactness and efficiency of SiC devices versus traditional silicon alternatives—having a size comparison of 1/10, conduction resistance of 1/200, and energy loss reduction at 1/4—starkly highlight their importance.

As we delve into the statistics, 2023 marked a breakthrough year in global NEV sales with 14.65 million units sold, reflecting a 35.4% year-on-year increaseSince 2018, various automobile manufacturers have increasingly integrated SiC solutions into their vehicles, with price ranges dipping as low as 200,000 yuanThis trend has prompted continuous cooperation between leading semiconductor manufacturers and automotive companies, leading to a significant expansion in the total market for SiC power devices.

Despite these advancements, the cost of SiC devices remains approximately three times that of silicon devices, posing a considerable barrier to the accelerated development of the industry

Current production capacity and cost are still major obstacles, though there’s optimism for a gradual market share transitionProjections estimate that by 2028, SiC will claim roughly 25% of the power semiconductor market.

The application spectrum of SiC materials continues to broaden, infiltrating both industrial and consumer sectorsAccording to Yole, the SiC device market was valued at $1.97 billion in 2022, with conductive devices accounting for $1.79 billion and semi-insulating devices reporting $180 millionWith a robust annual growth projection, these numbers are expected to reach $8.69 billion for conductive devices and $2.29 billion for semi-insulating devices by 2028, indicating a thriving sector.

China’s domestic manufacturers are progressively bridging the technology gap, particularly in 4-inch and 6-inch SiC substrate quality, achieving international standards

The ambition to produce 8-inch substrates represents a crucial opportunity for domestic firms to leapfrog competitors globallyInnovations such as the growth of silicon carbide crystals face challenges, primarily due to the intricate process management requirements at extreme temperatures, where SiC’s melting point significantly surpasses that of silicon.

Companies like Jingcheng Electromechanical have successfully developed 6-inch SiC crystal growth furnaces and have made considerable progress in overcoming challenges associated with 8-inch SiC crystal growthTheir advancements have laid the groundwork for the extensive application of larger SiC substrates, mitigating high substrate costs within device manufacturing.

Innovation is not limited to crystal growthCompanies like Tianyue Advanced are pioneering multi-wire cutting technologies to enhance the quality of cut crystals and to improve efficiency while reducing costs

As these durability and effectiveness improvements manifest throughout the manufacturing process, the sector is expected to experience substantial growth.

Companies focused on device manufacturing such as Yangjie Technology have been developing SiC products ranging from 650V to 1200V, aimed at automotive applicationsFurthermore, Star SEMI has entered the market with automotive-grade SiC MOSFET modules while Silan has aligned itself with the standards required by international manufacturers.

The global landscape for SiC manufacturing is dominated by companies like STMicroelectronics, Infineon, Wolfspeed, and On Semiconductor, each unveiling plans for substantial capital investments to boost their production capabilitiesSTMicroelectronics reported a revenue exceeding $1.14 billion from its SiC products in 2023, and anticipates further revenue growth in the future with expanded production facilities in multiple countries.

Infineon is estimated to generate approximately 500 million euros from SiC business, planning substantial investments of up to 5 billion euros in its production facilities over the next five years

Similarly, Wolfspeed's investment of $5 billion in manufacturing technology is set to cement its future in the SiC market, further bolstered by record revenue growth.

As markets evolve, emerging players such as Tianyue and Silan Mingja are also making headway, reporting exponential growth and advancements in production capabilities that cater to the burgeoning demand for SiC devices.

The potential of SiC technology even extends beyond automotive applications, with companies like Gree Electronics considering expansions into the component production for SiC as demonstrated in environmental impact reports submitted in 2023.

Currently, China’s domestic SiC diode industry has reached a level of proficiency allowing for stable deliveries across various applications including photovoltaics, energy storage, hydrogen fuel cell modules, and UPS systems