SiC Power Devices Market Growth Amidst EV Sales Slowdown

The latest "2024 Global SiC Power Device Market Analysis Report" by TrendForce Consulting reveals a dynamic landscape for SiC technology. Despite a slowdown in pure electric vehicle sales affecting the SiC supply chain, SiC remains pivotal in shaping the future of power electronics. Its usage is steadily increasing in automotive and renewable energy sectors, where power density and efficiency are paramount. Market demand is forecasted to continue rising, with the global SiC Power Device market anticipated to hit an impressive $9.17 billion by 2028.

Tesla and BYD, two prominent BEV brands, have recently reported disappointing sales figures, causing a temporary strain on the SiC supply chain. However, the increasing adoption of 800V systems and the ongoing optimization of the SiC supply chain costs promises long-term prospects in the automotive sector.

The SiC market has seen significant activity, including notable merger and acquisition cases in 2023. For instance, Bosch's acquisition of key assets from TSI Semiconductors to ramp up 8-inch SiC wafer production and Veeco's acquisition of Epiluvac AB to enter the SiC epitaxial equipment market showcase the industry's enthusiasm and commitment to growth. Additionally, Renesas' 10-year SiC material supply agreement with Wolfspeed underscores the determination of new players entering the market.

While the shortage of substrate materials has historically hindered SiC market development, the landscape is evolving with the emergence of Chinese suppliers rapidly scaling up production. However, this expansion comes with risks of price volatility and overcapacity, prompting manufacturers to carefully manage these challenges. IDM giants like Infineon are diversifying their focus to components, packaging, and application technology after securing stable material supply, recognizing these as key areas for future competitiveness.

In this rapidly expanding and competitive market, economies of scale are crucial. Leading IDM manufacturers are pivoting from conservative strategies to aggressive SiC expansion plans, aiming to secure leadership positions. As the market continues to grow, competition in the SiC field is expected to intensify, emphasizing the importance of innovation and strategic positioning for future success.