What’s next for SiC?
The focus is shifting, says Yole
SiC in power electronics is on track to reach $10B in revenue by the end of this decade, and the strong growth in 2023 was a crucial step in multiple applications, writes market research firm Yole Group in a Viewpoint article.
BEV remains the key market driver, with Tesla’s 1.8 million cars shipped in 2023 while major OEMs such Hyundai, BYD, Xpeng, Nio and many others are increasingly launching 800V BEVs. All the major SiC device players are supplying this application, helping it achieve record revenue in 2023.
In the meantime, other applications, such as EV chargers, power supplies, photovoltaic, etc., are waiting for sufficient volume at a competitive cost for the next generation SiC device designs. It was the same in SiC wafer and epiwafer businesses, with record 2023 revenues.
However, Yole says there is a concern that shipments are slowing down due to the weakness of the global economy. Many players are re-evaluating the timing of the return to growth; could it be in Q3 of 2024 or later? The SiC supply chain is closely monitoring it, as 2024 results will be highly impacted.
In the meantime, the supply chain is reshaping. This is seen in the ranking of players by revenue in 2023: Currently, Yole sees at least two Chinese companies ranked in the top five in SiC wafer and epiwafer. This also indicates the maturity of equipment supply supporting this rapidly growing SiC market.
Another critical consideration is the demand-supply issue. In the past years, SiC wafer was in tight supply; an LTA with a wafer supplier is essential to secure access to SiC wafers. However, following significant capacity expansion in the past two years, the discussion is moving to price and the risk of overcapacity, says Yole.
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