After several years of careful planning, the SiC industry has ushered in a significant transformation in 2024. The rapid deployment of new production capacity, coupled with the significant improvement in performance of domestically produced SiC devices, is gradually enabling automotive applications to expand from peripheral areas to core components such as electric drives and power controls. While achieving self-reliance and controllability, the prices of SiC products are also showing a significant downward trend. Market forecasts indicate that by 2025, the cost of integrating SiC into vehicles will continue to drop further, signaling that SiC technology is poised to spread more rapidly to a wider range of affordable car models.

However, as the prices of SiC products have dropped significantly, companies across the industry chain are facing growing pressure on profitability. In particular, the sharp decline in prices for mainstream 6-inch SiC wafers has already pushed some firms from profit into loss territory. To tackle this challenge, scaling up production of more cost-competitive 8-inch SiC wafers has been put on the agenda. Unfortunately, judging from current gross-margin trends, mass-producing 8-inch SiC products is unlikely to dramatically improve the financial outlook for SiC companies—potentially signaling that the entire industry may enter an early phase of restructuring.

△ New Market Needs and Applications

Driven by emerging fields such as new-energy vehicles, wind-solar-storage systems, and more, the SiC market is showcasing strong growth momentum. Compared to traditional IGBT technology, SiC has gained favor in the high-end new-energy vehicle market thanks to its superior efficiency, operational temperature range, switching speed, and voltage-handling capabilities. These markets are relatively insensitive to price and instead place greater emphasis on the enhanced driving and riding experience that SiC products deliver. It is this very market demand that has driven the rapid growth of the SiC industry.

02 Industry Investment and Competitive Landscape

Over the past few years, the SiC industry has become a hot spot for investment. According to a report released by industry analyst Li Chase and executive search consultant Cao Xiao, Between 2011 and 2024, total investments in the SiC substrate & wafer sector reached an astonishing 70.8 billion yuan. Among these, 2020 witnessed the first wave of domestic investment in SiC substrates, with annual investments totaling 19.4 billion yuan; by 2024, however, total investment reached a new high of 21.4 billion yuan.

△ Investment Boom and Corporate Strategies

As these proactive investments gradually take shape, SiC production capacity construction has entered a harvest phase in 2024. Companies such as North Semiconductor, Fangzheng Microelectronics, Xinjieneng, Shuoke Crystal, and Silan Micro have seen their SSC & DSC module production lines, Fab1/Fab2 facilities, headquarters bases, and industrialization projects either completed or put into operation, accelerating the pace at which capacity is being released. Meanwhile, firms like Tianyue Advanced, Tianke Heda, Tony Electronics, and San'an Optoelectronics have also emerged as key drivers behind the rapid expansion of domestic SiC production capacity.

△ Price Wars and Market Share

As innovative companies' products are gradually launched, the SiC price war is slowly escalating into an open battle. Taking a 6-inch SiC epitaxial wafer as an example, according to data from Tianyu Semiconductor's prospectus, the average price in the first half of 2023 was 9,149 yuan per wafer. However, by the first half of 2024, the average price had dropped to 7,693 yuan per wafer, representing a decline of 15.91%. Frost & Sullivan predicts that by 2028, the average price of SiC epitaxial wafers in the Chinese market will further decline to 6,500 yuan per wafer.

03 Industry Conference and Future Outlook

△ The 4th Third-Generation Semiconductor Conference

Over the past few years, Semiconductor Online has successfully hosted the first three Third-Generation Semiconductor Conferences in Suzhou, attracting more than 2,000 attendees in total and earning widespread acclaim. To further advance Exchange and Collaboration in the Field of Third-Generation Semiconductor Materials We are pleased to announce that the 4th Symposium will be held in Suzhou from March 6 to 7, 2025. This conference not only aims to provide industry professionals with a high-quality platform for exchange but also seeks to foster academic research, technological advancements, and industrial growth in China’s third-generation semiconductor materials sector.