Chip Talk > Silicon Carbide Market Faces Challenges from Demand Weakness and Competition
Published May 12, 2025
The silicon carbide (SiC) market, renowned for its robust applications in power electronics, is currently navigating through a complex landscape. As per a recent report by TrendForce, global revenue from SiC substrates declined by 9% to $1.04 billion in 2024. This downturn is largely attributed to weakening demand from key sectors such as automotive and industrial, coupled with intensified competition and resulting price pressures.
Despite the decline, the SiC market's long-term potential remains strong. The ongoing advancements in semiconductor device technology and declining production costs are expected to spur future demand. However, in the short term, the market has been significantly impacted by the dual pressures of soft demand and oversupply.
Wolfspeed continues to lead this competitive landscape, holding a 33.7% market share even as they face ongoing operational challenges. Meanwhile, Chinese firms TanKeBlue and SICC have made significant strides, capturing 17.3% and 17.1% market shares, respectively. The shift towards 8-inch wafers, despite the technical challenges they pose, is a critical focus for the industry, aiming to enhance performance and reduce costs.
A key development in the SiC market is the transition from 6-inch to 8-inch wafers. Although 6-inch substrates remain prevalent due to their cost-effectiveness, the future lies in the larger 8-inch wafers. TrendForce projects that by 2030, 8-inch SiC substrates will comprise over 20% of total shipments, driven by industry demands for better performance and cost-efficiency.
Investments in 8-inch wafer production highlight the industry's commitment to this transition. Companies are investing aggressively to overcome the technical hurdles associated with scaling up 8-inch front-end processes. This shift is expected to set a new industry standard and facilitate the broader application of SiC technologies.
The SiC market's trajectory relies on navigating these immediate challenges while positioning itself for long-term growth. For market leaders like Wolfspeed and emerging challengers such as TanKeBlue and SICC, the ability to adapt to market demands and technological advancements will be crucial.
For more insights on this topic, the original TrendForce report provides in-depth analysis and forecasts. Read more here.
The evolution of SiC technology illustrates a broader trend within the semiconductor industry: the constant push towards efficiency, cost-reduction, and innovation in response to dynamic market demands. As these developments unfold, stakeholders in the semiconductor IP domain will need to stay informed to capitalize on emerging opportunities.
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