2023 SiC Power Component Revenue: ST Leads Market

According to a recent report by research agency TrendForce, the global silicon carbide (SiC) power components industry experienced robust growth in 2023, driven primarily by the electric vehicle (EV) sector. The top five suppliers of SiC power components accounted for approximately 91.9% of the total market revenue, with STMicroelectronics maintaining a leading position with a 32.6% market share. Onsemi advanced from fourth place in 2022 to second place, capturing a 23.6% share of the market.

The report highlights a significant increase in demand from AI servers and other sectors in 2024. However, the slowing growth rate of EV sales and weakening industrial demand are impacting the SiC supply chain. It is projected that the annual revenue growth rate for the global SiC power components industry will notably decelerate in 2024 compared to previous years.

STMicroelectronics, a key supplier of automotive SiC MOSFETs, is constructing a fully integrated SiC factory in Catania, Italy, which is expected to become operational by 2026. Furthermore, ST’s joint venture with Sanan Optoelectronics in China is on track to commence operations at its 8-inch SiC plant by the end of this year. This venture will leverage local backend packaging and testing facilities and Sanan’s substrate material plant, optimizing vertical integration benefits.

Onsemi completed the expansion of its Bucheon, South Korea SiC wafer plant in 2023, with plans to transition to 8-inch wafers after technical verification in 2025. Currently, Onsemi's self-sufficiency rate for SiC substrate materials exceeds 50%, positioning the company to achieve a 50% gross margin target as internal material production capacity increases.

Infineon Technologies ranks third with a 16.5% market share, with nearly half of its SiC revenue derived from the industrial market. Unlike its leading competitors, Infineon lacks in-house SiC crystal production capabilities, prompting it to diversify its supplier base to ensure a stable supply chain.

Wolfspeed, the world’s largest supplier of SiC materials, holds the fourth position with an 11.1% revenue share. The upcoming operation of Wolfspeed's JP plant in North Carolina is expected to significantly boost material capacity and advance the production timeline of the Mohawk Valley Factory (MVF).

ROHM Semiconductor ranks fifth in revenue share. The company recently acquired Solar Frontier's Kunitomi factory, marking its fourth SiC plant, with plans to start producing 8-inch SiC substrates this year and subsequently expand into power component manufacturing.

TrendForce concludes that the SiC market is in a phase of rapid growth and intense competition, where economies of scale are essential. Currently, more than ten companies worldwide are investing in 8-inch SiC wafer factories. As the market continues to expand, competition within the SiC sector is expected to intensify.