Silicon Carbide Industry Faces Challenges and Opportunities Amidst Chinese Expansion
The Silicon carbide (SiC) industry is undergoing significant changes as Chinese manufacturers ramp up production, resulting in a collapse of prices for mainstream 6-inch substrates and a steep decline in 8-inch prices. This shift, reported by DIGITIMES Asia, has raised concerns about the future viability of non-Chinese systems, particularly in the EV and solar panel markets where China holds a dominant position.
With the Chinese government pushing for semiconductor self-sufficiency, Taiwanese companies are facing a mixed bag of opportunities and challenges. Doris Hsu, chairperson of Sino-American Silicon Products (SAS) and GlobalWafers, highlighted the unexpected nature of the changes in the SiC industry this year, attributing them to substantial capacity increases from Chinese manufacturers.
Looking at the situation from a geopolitical and industrial perspective, Hsu sees a pivotal moment for Taiwanese manufacturing to assert its advantages. While regions like the US, Europe, and Japan are seeking to reduce reliance on Chinese suppliers, they view Taiwan as a potential ally due to its stable quality and reliability in silicon-based semiconductor markets.
From an industrial standpoint, the importance of SiC in medium- to high-voltage power demands cannot be understated. The safety and reliability requirements in automotive applications and industrial-grade power networks make quality and performance crucial factors for customers. While Chinese manufacturers may have cost-competitive strengths, the focus must remain on meeting customer expectations for quality and reliability.
Despite the current trend of falling SiC substrate prices, Hsu predicts that supply chains, including Taiwan’s, will struggle to match the cost-effectiveness of Chinese manufacturers. As the range of applicable sectors for SiC substrates expands beyond electric vehicles and solar modules, the industry must prioritize quality and reliability to meet the evolving demands of customers.
