According to a report from research firm TrendForce, the global SiC (silicon carbide) power component industry maintained strong growth in 2023, driven by pure electric vehicle applications. The top five SiC power component suppliers accounted for approximately 91.9% of overall revenue, with ST (STMicroelectronics) continuing to lead with a market share of 32.6%, and Onsemi (Ansemi) rising from fourth place in 2022 to second place with a market share of 23.6%.
The report shows that there has been a significant increase in demand from fields such as AI servers in 2024. However, the significant slowdown in sales growth of pure electric vehicles and the weakening of industrial demand are affecting the SiC supply chain. It is expected that the annual revenue growth of the global SiC power component industry in 2024 will significantly converge compared to the past few years.
Institutional analysis shows that ST, as a key automotive SiC MOSFET supplier, is building a full process SiC factory in Catania, Italy, which is expected to start production in 2026. In addition, the 8-inch SiC joint venture factory established by ST and Sanan Optoelectronics in China is expected to open by the end of this year at the earliest. At that time, ST can combine the local rear end sealing and testing production line with the supporting substrate material factory provided by Sanan Optoelectronics to achieve vertical integration benefits.
Onsemi's SiC wafer plant located in Fuchuan, South Korea will complete its expansion in 2023 and plans to convert to 8-inch after completing relevant technical validation in 2025. At present, the self-sufficiency rate of Onsemi SiC substrate materials has exceeded 50%. With the increase of internal material production capacity, the company is moving towards the goal of a gross profit margin of 50%.
Infineon ranks third with a market share of 16.5%, and nearly half of SiC's revenue comes from the industrial market. Compared to the previous leading manufacturers, Infineon lacks internal production capacity for SiC crystal materials, so it actively promotes a diversified supplier system to ensure supply chain stability.
Wolfspeed, as the world's largest SiC material supplier, ranks fourth in revenue, accounting for 11.1%. With the upcoming production of The JP factory in North Carolina, the company is expected to significantly increase material production capacity and drive the production process of the Mohawk Valley factory (MVF).
Rom Electronics ranks fifth in revenue share and has recently acquired Solar Frontier's Guofucho factory as its fourth SiC factory. The company plans to start producing 8-inch SiC substrates this year and will also invest in the manufacturing of power components in the future.
TrendForce believes that overall, SiC is in a rapidly growing and highly competitive market, where economies of scale are more important than any other factor. As of now, more than 10 manufacturers worldwide are investing in the construction of 8-inch SiC wafer factories. It can be foreseen that in the future, as the market size continues to expand, the competition in the SiC field will also become more intense.
