More than half of the world's SiC wafers may come from China in 2024

【Lansheng Technology News】In 2023, China's compound semiconductor industry will achieve a historic breakthrough. In the field of silicon carbide crystal growth, it has been especially recognized by international IDM manufacturers, and the production capacity of Chinese manufacturers has increased significantly. Previously, SiC materials from China accounted for only 5% of the global market. However, by 2024, it is expected to capture a considerable market share.

There are about four to five leading companies engaged in SiC crystal growth in China, which provides a basis for calculating my country's SiC crystal growth capacity. Currently, their combined monthly production capacity is approximately 60,000 units. As companies actively increase production, monthly production capacity is expected to reach 120,000 units by 2024, and annual production capacity is expected to be 1.5 million units.

Compared with the estimated global SiC wafer supply in 2023 of about 1.7 million pieces, China's supply in 2024 is expected to account for about half of the global market share.

According to statistics from many industry figures and market research institutions, SICC and TankeBlue together account for about 5% of the global market share. By comparison, the four largest global players - Wolfspeed (60%), Coherent (15%),Rohm'sSiCrystal (13%) and SK Siltron (5%) - hold a much larger share.

Previously, many market research institutions were skeptical about the production capacity, actual output, and quality of Chinese manufacturers. Despite this, Bosch,Infineon, STMicroelectronics and other companies have signed contracts with SICC, TankeBlu, Sanan and other companies to form joint ventures, which can be regarded as a guarantee of China's strength and quality. This indirectly shows that China’s participation in the SiC material supply chain is growing rapidly.

Currently, the global SiC wafer market mainly uses 150 mm wafers. With the rapid expansion of Chinese manufacturers, it is expected that the industry may undergo a major shift by 2024, resulting in SiC chips no longer facing the severe shortages of the past, and as Chinese manufacturers invest in new production capacity, it may lead to significant price declines. This situation may pose challenges to less competitive manufacturers, especially those with low volumes and production costs that are not in line with average market pricing.

Facing the new competitive landscape, European and American SiC material suppliers accelerated financing activities in the second half of 2023, fearing being eliminated. The Chinese government has also complicated the approval process for new entrants in 2023 due to the overheating of the SiC market. These limitations apply not only to SiC materials but also to silicon wafers, preventing some established SiC design companies from expanding into the SiC field. The silicon wafer industry, even though its major shareholders include leading companies in the European automotive supply chain.