By 2023, the automotive industry will account for 70 to 80 percent of the SiC device market. As capacity increases, SiC devices will be more easily used in industrial applications such as electric vehicle chargers and power supplies, as well as green energy applications such as photovoltaic and wind power.
According to Yole Intelligence, which forecasts global SiC device capacity to triple by 2027, the top five companies are: STMicroelectronics(stmicroelectronics), Infineon Technologies (Infineon), Wolfspeed, onsemi (Anson), and ROHM (ROM).
They believe the SiC device market will be worth $6 billion in the next five years and could reach $10 billion by the early 2030s.
Leading SiC vendor for devices and wafers in 2022
8 inch production supremacy
Through its existing fab in New York, USA, Wolfspeed is the only company in the world that can mass-produce 8-inch SiC wafers. This dominance will continue over the next two to three years until more companies start building capacity - the earliest being the 8-inch SiC plant that stmicroelectronics will open in Italy in 2024-5.
The United States leads the way in SiC wafers, with Wolfspeed joining Coherent (II-VI), onsemi, and SK Siltron css, which is currently expanding its SiC wafer production facility in Michigan. Europe, on the other hand, is leading the way in SiC devices.
A larger wafer size is a clear benefit, as a larger surface area increases the number of devices that can be produced on a single wafer, thereby reducing the cost at the device level.
As of 2023, we've seen multiple SiC vendors demonstrate 8-inch wafers for future production.
6-inch wafers are still important
"Other major SiC vendors have decided to move away from focusing solely on 8-inch wafers and focus strategically on 6-inch wafers. While the move to 8 inch is on the agenda of many SiC device companies, the expected increase in production of more mature 6 inch substrates - and the subsequent increase in cost competition, which could offset the 8 inch cost advantage - has led SiC to focus on players of both sizes in the future. For example, companies like Infineon Technologies are not taking immediate action to increase their 8-inch capacity, which is in stark contrast to Wolfspeed's strategy." Dr. Ezgi Dogmus said.
However, Wolfspeed is different from other companies involved in SiC because it is focused solely on the material. For example, Infineon Technologies, Anson & Company and stmicroelectronics - which are leaders in the power electronics industry - also have successful businesses in the silicon and gallium nitride markets.
This factor also affects Wolfspeed's comparative strategy with other major SiC vendors.
Open more applications
Yole Intelligence believes the automotive industry will account for 70 to 80 percent of the SiC device market by 2023. As capacity increases, SiC devices will be more easily used in industrial applications such as electric vehicle chargers and power supplies, as well as green energy applications such as photovoltaic and wind power.
However, analysts at Yole Intelligence predict that cars will remain the main driver, with its market share not expected to change over the next 10 years. This is especially true when regions introduce electric vehicle targets to meet current and near future climate goals.
Other materials such as silicon IGBT and silicon based GaN may also become an option for Oems in the automotive market. Companies such as Infineon Technologies and STMicroelectonics are exploring these substrates, especially because they are cost-competitive and do not require dedicated fabs. Yole Intelligence has been keeping a close eye on these materials over the past few years and sees them as potential contenders for SiC in the future.
Wolfspeed's move into Europe with an 8-inch production capacity will no doubt target the SiC device market, which is currently dominated by Europe.
Post time: Mar-30-2023