SiC has emerged as a material of choice for manufacturers thanks to its ability to push the boundaries of performance and efficiency, driving innovation and investment across the industry.

SiC's applications promise a future of enhanced efficiency shaped by advanced technology. This burgeoning material promises transformative innovations across diverse industries, particularly automotive, making it essential for professionals in the electronics sector to monitor it closely.

Silicon Carbide's Crucial Role in Automotive Advancement

SiC, a unique compound of silicon and carbide, stands out as a wide-bandgap semiconductor. The crucial properties of SiC enable it to function at higher temperatures, higher voltages, and with greater efficiency than conventional silicon-based semiconductors. Due to these features, SiC is increasingly adopted for applications in power electronics, LED lighting, and high-frequency RF devices. Its ability to withstand high temperatures and harsh environments makes it particularly suitable for applications where reliability and efficiency are critical.

SiC emerged as a solution to barriers within the electric vehicle industry, which has pushed the automotive industry to become an early adopter. SiC-based power electronics deliver lower conduction and switching losses, translating to higher efficiency in electric drivetrains. This results in an extended driving range per charge and improved energy utilization, addressing a critical concern for EV adoption.

Furthermore, SiC technology enables faster charging rates for EV batteries and allows for higher power density designs in powertrains. These are two major concerns holding back general EV adoption, as demand for EVs has slowed recently. However, if SiC can enhance the convenience and practicality of EVs without sacrificing performance, demand would increase.

Manufacturers' Strategic Investments Shape the Market Landscape

The growing importance of SiC technology is underscored by how manufacturers are investing in the market. Currently holding a dominant 44% share in the SiC market, STMicroelectronics Co. was among the first to enter the market, and its early offerings have positioned it as an industry frontrunner. With a diverse product portfolio, including SiC MOSFETs, Schottky diodes, and power modules, STM has secured strategic partnerships, such as with Li Auto, a major player in China's EV sector.

However, competition in the SiC market remains fierce, with companies like Infineon Technologies making significant strides to establish their presence. Infineon is currently in a solid second-place position with a 19.8% market share, but it is making moves to grow its influence in SiC. In 2023, Infineon sealed a multi-year agreement with Hyundai and Kia to supply power semiconductors for their electric vehicles.

This year, Infineon is also focused on expanding its product portfolio. Last quarter, the company introduced industrial-graded and automotive-graded SiC MOSFETs, signaling its commitment to capturing a larger share of the SiC market and solidifying its role in the automotive electrification landscape.

As competition intensifies and companies expand their offerings, the SiC market is poised for further growth.

Rising Contenders Wolfspeed and onsemi Forge Ahead

While Infineon is chasing STM, other manufacturers are steadily gaining their momentum. Wolfspeed is in third place with a 14.7% market share. Wolfspeed became the world's only pure-play vertically integrated silicon carbide company in 2023.

Wolfspeed made this move to become the top silicon carbide device supplier in years to come. To aid in this, the company entered an extended partnership with Infineon to support the demand for SiC semiconductor products for automotive, solar, and EV industry customers.

Onsemi, the next largest manufacturer in the SiC space with a 12.5% market share, is also keeping its sights on the SiC market. In early forecasts, the company predicted that the SiC market would double in 2024 despite varying demand trends. As rising contenders like Wolfspeed and onsemi push forward, their strategic moves and partnerships signal a robust investment trajectory in the expanding SiC market, poised to capitalize on the burgeoning demand across automotive, solar, and EV industries.

SiC's Role in Shaping Future Technology

These developments emphasize SiC’s growing importance in automotive advancement, both for traditional internal combustion engines and electric vehicles and across diverse industries like renewable energy and industrial automation. As manufacturer capacity comes online, SiC's capabilities will likely expand, making this market an essential one to watch.

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Fusion Worldwide is the preeminent open-market distributor of electronic components and products. We source, inspect, test, and deliver a wide range of components to a large and diversified customer base that includes OEMs, CMs, and ODMs across a wide array of verticals. Founded in 2001, Fusion is headquartered in Portsmouth, New Hampshire, and maintains offices and quality centers in major manufacturing centers around the world.