Terms	Description
SiC	➢ SiC stands for silicon carbide, which is a hard chemical compound containing silicon and carbon.
Band gap	➢ Band gap refers to the energy difference between the top of the valence band and the bottom of the conduction band in a semiconductor. Compared with traditional semiconductors, wide-bandgap semiconductors enable devices to operate at higher voltages, frequencies, and temperatures.
Breakdown field strength	➢ The breakdown field strength of a semiconductor is the critical electric field strength in the semiconductor material that can cause avalanche breakdown. A higher breakdown field strength indicates that the semiconductor device can operate at higher voltages without breakdown, thus having a larger operating range and power range.
Saturated electron velocity	➢ The saturated electron velocity of a semiconductor is the maximum drift velocity that electrons can reach in a semiconductor material under a high-electric field. A high saturated electron velocity helps improve the switching speed and high-frequency performance of the device.
Thermal conductivity	➢ The thermal conductivity of a semiconductor material refers to the material’s ability to conduct heat. The higher the thermal conductivity, the more efficient the material is at conducting heat.
Heat resistance	➢ Heat resistance refers to the ability of a material to resist significant deformation or degradation when heated. The higher theheat resistance of a material, the higher its reliability in a high-temperature environment.
Voltage resistance	➢ The voltage resistance of a semiconductor material refers to the ability of a semiconductor device to withstand over-voltage. Itis usually characterized by the voltage value at which the device breaks down or the current reaches a specific value. The higher the voltage resistance of a semiconductor, the higher its reliability in a high-voltage environment.
Radiation resistance	➢ The radiation resistance of a semiconductor material refers to the ability of a semiconductor device to withstand and operate normally in a high-radiation environment. The higher the radiation resistance of a semiconductor material, the higher its reliability in a high-radiation environment.
Switching frequency	➢ Switching frequency refers to the rate at which a switching-mode power supply turns on and off. It affects the performance of the device, including its efficiency and power output, and plays a crucial role in designing compact and low-cost circuits. The higher the switching frequency of semiconductor material, the faster the switching speed of the material in the device.
Heat dissipation	➢ Heat dissipation refers to the ability to transfer heat away from the heat source. The better the heat dissipation, the more conducive it is to reduce the local temperature of the device and improving the device’s performance and reliability.

Glosary

Source: Frost & Sulivan

Overview of Global Silicon Carbide Materials and Aplications Market1

Overview of Global Silicon Carbide Substrate Market2

Competitive Landscape of Global Silicon Carbide Substrate Market3

Overview of Global Silicon Carbide Materials and Aplications Market

Silicon Carbide Materials: Empowering the Critical Engines of Future Technology Revolution (1/2)

Source: Frost & Sulivan

Energy transition and artificial inteligence (AI) are two critical engines driving the future technology revolution. Building aworld of growth, inovation, and

sustainability stands as the core objective of the advancement and integrated development of energy transition and AI technologies. Silicon carbide

materials have emerged as one of the cornerstones empowering energy transition and AI to achieve their core development goals.

Silicon carbide materials serve as the “energy eficiency multiplier” for empowering energy transition.

•Energy transition refers to the global shift of the energy structure from traditional fosil fuels to clean and renewable energysources such as solar and

wind energy. It also emphasizes improving energy eficiency through technological advancements, which is a crucial strategy for achieving global

“carbon neutrality.” For energy suply, energy transition emphasizes reducing reliance on fosil fuels and developing clean and renewable energy

sources like solar and wind energy. In 2024, renewable energy acounted for over 40% of the global total electricity generation,and this proportion is

expected to rise further in the future. The combined contribution of electricity generation from solar photovoltaics and windpower is projected to

reach 40% in 2035 and 60% in 2050. For energy consumption, the trend of electrification is driving the growth of electricity consumption demand and

changing the energy consumption structure. From 2020 to 2024, the proportion of global electricity consumption in total global energy consumption

increased from 19.8% to over 20% and is expected to further increase to 23% in 2028. The increase in the total amount of electricity consumption

makes the conversion eficiency of electricity particularly crucial. It is estimated that by 2028, every 1% increase in the conversion eficiency of

electricity wil save 348.3 TWh of electricity anualy, equivalent to the anual power generation of more than 40 medium-sized nuclear power plants.

Improving the conversion eficiency of electricity is quite urgent.

•Thanks to the advantages of silicon carbide materials, such as high frequency, low los, high-voltage resistance, and high-temperature resistance, silicon

carbide power semiconductor devices can enhance the conversion eficiency of electricity in the generation and consumption, achieve a smaler system

size and higher power density, and also les demand for coling systems. They have become the “energy eficiency multipliers”infields such as new

energy vehicles, photovoltaic and energy storage system, power suply, and data centers, driving the energy system to transitiontowards low-

carbonization.

Overview of Global Silicon Carbide Materials and Aplications Market

Silicon Carbide Materials: Empowering the Critical Engines of Future Technology Revolution (2/2)

Source: Frost & Sulivan

Silicon carbide materials are an inevitable choice for the growth and inovation of the AI industry.

•Silicon carbide materials enable the AI industry to adres power suply chalenges. As a transformative foundational technology, AI is leading the

development of the fourth industrial revolution. Curently, AI is being integrated into various aspects of industries and people’s daily lives, exerting

a profound impact on human development. With the advancement of large language model technology, generative AI has stronger reasoning and

inteligent capabilities, further acelerating the rapid penetration of AI. The explosive growth of AI wil reshape the global power landscape. AI

model training and inference highly rely on the suply of masive computing power resources, and high computing power demandsmean high

power consumption. Compared with traditional software aplications, AI aplications consume more power. Taking search Q&A as an example, the

power consumption of a single ChatGPT question-answering is 6-10 times that of a single Gogle search. As an important infrastructure suporting

the development of AI, data centers are expected to acount for 10% of global power consumption by 2030. Compared with traditional silicon-

based power semiconductor devices, silicon carbide-based power semiconductor devices can provide higher power conversion eficiency and higher

power density. The aplication of silicon carbide-based power semiconductor devices in data centers is an inevitable choice to aleviate the global

power suply chalenges for AI and achieve the low-carbonization of data centers.

•On the other hand, silicon carbide materials empower the inovation of AI-enabled smart products. The development of AI technology continuously

gives rise to inovations in AI-enabled smart products, which in turn create aplication oportunities for new materials represented by silicon

carbide. For example, silicon carbide materials are aplied to the inovation of AI glases. AI glases are smart glases integrated with artificial

inteligence technology. They can acquire environmental information in real-time, analyze data, and provide inteligent fedbackor services

acording to users’ neds. They can also achieve visual interaction through the integration of display technology. The refractive index of silicon

carbide materials is significantly higher than that of high-refractive-index glas, lithium niobate, and other materials. The aplication of silicon-

carbide-based optical waveguides in AI glases can achieve a larger field of view and a simpler structured ful-color display. This can reduce the size,

weight, manufacturing cost, and complexity of AI glases, and significantly enhance the user experience. The aplication of silicon carbide materials

wil directly promote the large-scale comercialization of the global AI glases market. AI glases are expected to replace smartphones as the next-

generation inteligent terminal and computing platform for individual users.

Features	Explanation	Application Examples
High-voltage Resistance	SiC material can withstand high voltages without breakdown, with a maximum withstandvoltageofover10kV.	 It can be applied in fields such as new energy vehicles, rail transit, power grids,andultra-fastchargingpiles.  In the converters and inverters of high-voltage direct-current (HVDC) transmission systems, it reduces energy losses during long-distance power transmission.
High-frequency Resistance	SiC material supports high switching frequencies (usually ranging from tens of kHz to several MHz), has low on-resistance, can reduce switching losses, minimizehigh-frequencysignallosses,andimprovecircuitresponsespeed.	 Applicable in fields like new energy vehicles, data centers (AI server power supplies),communication,andindustry.  In the motor drive of new energy vehicles, it reduces switching losses, significantly improves energy conversion efficiency, extends the driving range,andreducesbatteryconsumption.
High Thermal Conductivity	SiCmaterialexhibitshighthermalconductivity,enablingrapidheatconduction.	 Itcanbeusedinareassuchas new energy vehicles,datacenters, andheat- dissipationcomponents.  In high-power-density devices like LED lighting and semiconductor lasers, it helps with effective heat dissipation, maintaining the stability of device performanceandextendingthedevice’sservicelife.
High- temperature Stability	SiC material maintains stable physical and chemical properties at high temperatures.	 Appliedinfieldssuchasnewenergyvehiclesandrailtransit.  Inthemotordrive ofnew energy vehicles, it canstillmaintainstable power outputinhigh-temperatureenvironments.
HighRefractiveIndex	SiC material can better confine light propagation in waveguides oroptical fibers, reducing light leakage andimprovingthe efficiency ofoptical devices. It can also reduce the wavelength of light in the material, enabling the design of more compact optical devices. Moreover, it can achieve higher resolution and smaller opticalaberrations	 UsedinfieldslikeAIglasses  In the optical waveguide optical solution of AI glasses, it transmits the imagesdisplayedonthemicro-displaytotheuser’seyes.

Overview of Global Silicon Carbide Materials and Aplications Market

Introduction to Silicon Carbide Materials: Key Fundamental Materials Empowering Energy Eficiency Improvement and

Smart Product Inovation

Source: Frost & Sulivan

Silicon carbide (SiC), a compound composed of carbon and silicon elements, features high hardnes and excelent physical and chemical properties. Characterized by high-voltage

resistance, high-frequency resistance, high thermal conductivity, high-temperature stability, and a high refractive index, silicon carbide materials serve as crucial materials for

cost-reduction and eficiency-enhancement in numerous industries.

TypicalApplicationFields	Advantages of Silicon Carbide
Power Semiconductor Devices and Radio- Frequency SemiconductorDevices	 Compared with silicon, the band-gap width of silicon carbide is approximately 2.9 times that of silicon, the thermal conductivity is about 3.3 times that of silicon, the breakdown voltage is around 9.3 times that of silicon, and the saturated electron velocity is roughly 2 times that of silicon. Therefore, silicon carbide has become a key material for power-electronics applications in high-temperature andhigh- voltage environments such as electric vehicles, photovoltaic energy storage, and rail transit.
Optical Waveguides	 Comparedwithhigh-refractive-indexglass,therefractiveindexofsiliconcarbideisatleast1.2timesthatofhigh-refractive-indexglass.  Comparedwithlithiumniobate,therefractiveindexofsiliconcarbideis1.1-1.2timesthatoflithiumniobate.  Thanks to its higher refractive index, silicon carbide helps AI glasses achieve a larger field of view, reduce light loss, and realize a more lightweightfull-colordisplaybasedonamonolithicwaveguide.
TF-SAW High-end Filters	 Compared with silicon, with its characteristics of high sound velocity, low loss, high thermal conductivity, and low coefficientof thermal expansion, silicon carbide improves frequency selectivity, pass-band performance, and filtering efficiency, while meeting the strict requirements of high power and temperature compensation.
Heat-dissipation Components	 Compared with traditional heat-dissipation materials such as aluminum and aluminum nitride, the thermal conductivity of silicon carbide is 1.2 times that of copper and about more than 2 times that of aluminum nitride. Therefore, silicon carbide is more suitable for scenarios where rapid heat dissipation is required to protect sensitive electronic components or to maintain stable operationinhigh- power-density devices.

Overview of Global Silicon Carbide Materials and Aplications Market

Advantages of Silicon Carbide over Traditional Materials in Diferent Aplication Fields

Source: Frost & Sulivan

Benefiting from the above-mentioned excelent material properties, and with the advancement of silicon carbide material manufacturing technology and the inovation of

downstream industry aplications, the aplication fields of silicon carbide materials have ben continuously expanding, especialy atracting extensive atention in high-tech

fields. Silicon carbide materials can be widely aplied in downstream products such as power semiconductor devices, radio-frequency (RF) semiconductor devices, AI glases

optical waveguides, TF-SAW (Thin-Film Surface Acoustic Wave) high-end filters, and heat-disipation components. The main aplication industries include new energy vehicles,

photovoltaic energy storage, power suply, rail transit, mobile comunication, satelite comunication, consumer electronics,industry, and data centers, replacing or

suplementing traditional materials in the above-mentioned fields.

Overview of Global Silicon Carbide Materials and Aplications Market

Silicon carbide materials take the lead in promoting the transformation of the semiconductor industry, and are begining to

replace and complement silicon-based technologies in more fields

Source: Frost & Sulivan

First generation semiconductorThird generation semiconductorSecond generation semiconductorSemiconductor

Material

Elemental semiconductors: Silicon (Si),

germanium(Ge)

Compound semiconductors: Galium

Arsenide (GaAs), Indium Phosphide (InP)

Compound semiconductors: Silicon Carbide

(SiC), Galium Nitride (GaN)

Aplication

•Widelyusedininformationprocesingand

automation,includingconsumerelectronics,

telecomunications,photovoltaics

•Inoptoelectronics,includingmilimeter-wave

devices,satelitecomunication,mobile

comunication,andGPSnavigation

•Inhigh-performancesensors

•Aplicationspan5G,IoT,electricvehicles,

optoelectronics,andisplaytechnology

Advantage

Industrialization

Proces

•Abundantandlow-cost,siliconisthemost

widelyusedsemiconductor

•Enabledtheshiftfromvacumtubestocompact

electronics

•Elementalsemiconductormanufacturing

technologyismatureandclosetoptimal,but

hasreachedthephysicalimit,performance

enhancementspaceisnarowed,

industrializationisverymature

•Fasterelectronmobilityforhigh-frequency

transmision

•Directbandgapforaplicationsinlightemision,

includinginfraredlasersandhigh-brightnesred

LEDs

•Compoundsemiconductorsinthefieldofhigh-

frequencyhigh-powerindustrialization,

especialyinthefieldofradiofrequency,

comunicationsandotherareasofsignificant

development

•Enhancedthermalandelectronicproperties

•Improvedelectricalstrengthandradiation

resistance

•Energy-eficientandeco-friendly

•Compactdevicesize

•Wide-bandsemiconductorsareinthearlystage

ofindustrialization,theproductionprocesis

complex,thereistilromforimprovement,only

asmalnumberofcompanieswithlarge-scale

high-qualityproductioncapacity

The aplication inovation in downstream industries such as power electronics, along with the advancements in upstream materialscience, jointly drive the progres and inovation

of materials aplied in the semiconductor field. Silicon (Si), as a representative of elemental semiconductor materials, has become the cornerstone of the semiconductor industry due

to its abundant reserves, low cost, and mature manufacturing proceses. However, due to the limitations of silicon materials themselves in terms of bandgap, thermal conductivity,

breakdown field strength, and frequency performance, it has gradualy become dificult to met the performance requirements of semiconductors for downstream industry

aplications. This has given rise to the emergence and development of compound semiconductor materials, especialy wide-bandgap semiconductor materials. The folowing figure

shows the types, advantages, industrialization proceses, and aplication scenarios of the main semiconductor materials of diferent generations.

Data Metrics	Main Characteristics	Silicon	Silicon Carbide	The Index Multiples of Silicon Carbide Compared to Silicon
Band Gap （eV）	Heat Resistance、Voltage Resistance、 adiation Resistance	1.12	3.26	~2.9x
Breakdown Field Strength （MV╱cm）	Voltage Resistance	0.3	2.8	~9.3x
Saturated Electron Velocity （107 cm╱Second）	Switching Frequency	1.0	2.0	2.0x
Thermal Conductivity （W/(cm*K)）	Heat Dissipation	1.5	4.9	~3.3x

Overview of Global Silicon Carbide Materials and Aplications Market

Data Metrics and Main Characteristics of Silicon Carbide and Silicon

Source: Frost & Sulivan

Compared with silicon-based semiconductors, wide-bandgap semiconductors represented by silicon carbide (SiC) and galium nitride(GaN) have prominent performance advantages

from the material to the device level. They feature high frequency, high eficiency, high power, high-voltage resistance, and high-temperature resistance, and are an important

direction for the future development of the semiconductor industry. Among them, silicon carbide exhibits unique physical and chemical properties. Characteristics such as its high

band-gap width, high breakdown electric field strength, high electron saturated drift velocity, and high thermal conductivity make it play a crucial role in aplications such as power-

electronic devices. These properties endow silicon carbide with significant advantages in high-performance aplication fields such as new energy vehicles and photovoltaic energy

storage, especialy in terms of stability and durability. The folowing figure shows the data indicators and main characteristics of silicon carbide and silicon.

In adition, compared with the importance and proportion of value contributed by silicon materials in the silicon-based semiconductor industry, silicon carbide materials are of even

greater importance and contribute a larger proportion of value in the silicon-carbide-based semiconductor industry chain. The main reason is that the manufacturing proces of

silicon materials is relatively mature, leading to relatively low manufacturing costs. The performance of silicon-based semiconductors mainly depends on the capabilities in

semiconductor design and manufacturing proceses, such as more advanced IP and proces nodes. In contrast, the manufacturing proces of silicon carbide materials is more

complex. The growth rate of silicon carbide materials is slow, and their yield is lower than that of silicon materials, resulting in a higher overal cost. Thus, the proportion of the

material’s value in the final semiconductor product’s value is higher. Meanwhile, the manufacturing of silicon-carbide-based semiconductors mostly uses mature proces nodes,

making the quality of silicon carbide materials one of the key factors determining the performance of the final semiconductorproduct.

Overview of Global Silicon Carbide Materials and Aplications Market

Silicon carbide materials have broad market aplication potential in power semiconductor devices, radio-frequency

semiconductor devices, and emerging aplication fields

Source: Frost & Sulivan

Silicon carbide materials are comonly used to produce silicon carbide substrates or silicon carbide epitaxial wafers. Among them, silicon carbide substrates can be widely aplied in

downstream products such as power semiconductor devices, radio-frequency semiconductor devices, optical waveguides, TF-SAW high-end filters, and heat-disipation components.

The main aplication industries include new energy vehicles, photovoltaic energy storage, power suply systems, rail transit,comunications, AI glases, smartphones,

semiconductor lasers, etc. The folowing figure shows the types of products manufactured based on silicon carbide materials and their main existing and potential aplication fields.

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices -Overview

	Silicon Carbide MOSFET	Silicon-based IGBT
Switching Frequency	‐ High switching frequency, which can reduce switching losses and the demand for passive components, enabling moreminiaturizedsystems andhigherpowerdensity.	‐ Low switching frequency, with a high demand for passive components, making it difficult to achieve system miniaturizationandhigherpowerdensity.
Efficiency and Performance	‐ Relativelyhighenergyconversionefficiency. ‐ The maximum operating junction temperature is 200°C, reducing the requirements for the heat dissipation system andallowingtheuseofsmallerheatsinks.	‐ Relativelylowenergyconversionefficiency. ‐ The maximum operating junction temperature is 175°C, imposing higher requirements on the heat dissipation system.
Application	‐ Adopts a driving method extremely similar to that of silicon-based IGBT, which is conducive to promoting industrialapplications.	‐ Moredevicesarerequiredunderthesamepower.

Overview of Global Silicon Carbide Materials and Aplications Market

Introduction of Power Semiconductor Devices and SiC Power Semiconductor Devices

Source: Frost & Sulivan

•In the field of power semiconductor devices, silicon carbide (SiC) MOSFETs are expected to achieve large-scale replacement of silicon-based IGBT products in the future. In

terms of product advantages, SiC MOSFETs have a relatively high switching frequency. This can reduce switching loses and thedemand for pasive components, thus enabling

the realization of more miniaturized systems and higher power density. They also poses a relatively high energy conversion eficiency, with a maximum operating junction

temperature of 200°C. This reduces the requirements for the heat disipation system, alowing the use of smaler heat sinks. Moreover, SiC MOSFETs adopt a driving method

extremely similar to that of silicon-based IGBTs, which is conducive to promoting industrial aplications. Aditionaly, compared with silicon-based IGBTs, fewer SiC MOSFET

devices are neded under the same power conditions.

14,690
1,279
361 415 332 2,667

11,720
1,055 295 351 286

Overview of Global Silicon Carbide Materials and Aplications Market

MarketSize of Global SiC Power Semiconductor Devices, by aplication

Source: Frost & Sulivan

Global SiC power semiconductor device market size, in terms of sales revenue

Milion USD，2020-2030E

*Note: ES for Energy Storage System

Note: Emerging industries include home apliances, low-altitude flights and data centers

*Note: other industries include xEV charging, wind energy, UPS, oil and natural gas, etc.

KeyFindings

➢Byaplicationarea,from2020to2024,

theglobalrevenueofSiCpower

semiconductordevicesusedinxEVhada

compoundanualgrowthrate(CAGR)as

highas65.1%.From2024to2030,the

CAGRinthexEVvehiclesectorwilstilbe

ashighas36.1%,continuingtoleadthe

growthoftheglobalSiCpower

semiconductordevicemarket.The

photovoltaicenergystorage,powergrid,

andrailtransitsectorsalsoshowstrong

growthmomentum.TheCAGRsinthe

futureforecastperiodwilreach27.2%,

24.5%,and25.3%respectively.Emerging

aplicationareasofSiCpower

semiconductordevicesuchashome

apliances,low-altitudeflight,andata

centerswilexhibithefastestgrowthrate.

TheglobalrevenueofSiCpower

semiconductordevicesapliedtothese

areasisexpectedtohaveaprojected

CAGRof39.2%

1,922

2,310

2,916

4,022

5,859

8,992

2025E

2026E

2027E

1,535

2028E

2,088

2029E

2,667

2030E

1,107

1,794

2,746

3,240

5,548

8,004

12,151

15,796

19,745

4,050

xEv

Photovoltaic + ES*

Power grid

Rail transportation

Emerging industries

Other*

CAGR2020-20242024-2030E

Total49.8%35.2%

65.1%36.1%

39.0%27.2%

8.0%24.5%

12.9%25.3%

39.2%

34.7%38.5%

Penetration rate of

global SiC power

semiconductor devices

out of global power

semiconductors

1.4%2.4%3.7%5.8%6.5%7.6%9.5%12.5%17.1%20.1%22.6%

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices –xEV

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC Power Semiconductor Devices in xEV

Source: Frost & Sulivan

•Range, charging sped, and driving experience are crucial factors determining the popularity of new energy vehicles. Comparedwith traditional silicon-based power devices

such as silicon-based IGBTs, silicon carbide power devices have significant advantages such as low on-resistance, high switchingfrequency, high heat resistance, and high

thermal conductivity. These advantages can efectively reduce energy loses in the power conversion proces, decrease the volumeof pasive components like inductors and

capacitors, lower the weight and cost of power modules, reduce the ned for heat disipation and simplify the thermal managementsystem, and improve the dynamic

response of motor control. As a result, they enhance the range, charging sped, and driving experience of new energy vehicles. By 2024, wel-known global automakers such

as Tesla, Toyota, Mercedes-Benz, and Volkswagen had already used silicon carbide power devices in many of their new energy vehicle models. The number of new energy

vehicle models worldwide using silicon carbide power devices rapidly increased from 1 model in 2019 to over 200 models in 2024. The coresponding vehicle sales

increased from aproximately 300,000 units in 2019 to aproximately 3,400,000 units in 2024, with a compound anual growth rate of 62.5%.

•Silicon carbide power devices can be aplied to various components in new energy vehicles, including motor drives, on-board chargers (OBCs), DC/DC converters, air-

conditioning compresors, high-voltage PTC heaters, and pre-charge relays. Curently, they are mainly used in motor drives, OBCs, and DC/DC converters, replacing traditional

silicon-based IGBT power modules:

MotorDrive:

Thepowermoduleinthemotordriveconvertsthe

directcurentfromthebateryintoalternating

curentodrivethemotor.Comparedwithsilicon-

basedIGBTpowermodules,siliconcarbidepower

modulescansignificantlyreducethenergylosof

themotordriveby70-90%, increasing vehicle

range by 10%.Thisubstantialydecreasesthe

energyconsumptionintheconversionproces,

therebyincreasingtherangeofnewenergy

vehicles.Moreover,siliconcarbidepowermodules

canmaintainstablehigh-poweroutputinhigh-

temperaturenvironmentsandsuporthigher

ratedvoltages.Thesiliconcarbidepowerdevicesin

themotordrivecontributethemostintermsof

value,acountingfor97.2%ofthetotalglobal

marketsizeofsiliconcarbidepowerdevicesfor

newenergyvehiclesin2024.

OBC(On-BoardCharger):

ThepowermoduleoftheOBCconvertsexternal

alternatingcurentintodirectcurentocharge

thebatery.Comparedwithsilicon-basedIGBT

powermodules,siliconcarbidepowermodulescan

reducethecharginglosoftheOBCby40%.This

shortensthechargingtime,enableshigh-voltage

fastcharging,improvestheuserexperienceduring

thechargingproces,andsolvestheproblemof

lowenergyreplenishmenteficiencyofnewenergy

vehicles.Themarketsizeofsiliconcarbidepower

devicesintheOBCsegmentacountsfor6.4ofthe

totalglobalmarketsizeofsiliconcarbidepower

devicesfornewenergyvehiclesin2024.

DC/DConverter:

TheDC/DCconverterconvertsthedirectcurent

fromthehigh-voltagebateryintolow-voltage

directcurentforusebyin-vehiclelectronic

devices.Siliconcarbidepowermodulescan

improveconversioneficiency,reducenergylos

andheatgeneration.Comparedwithsilicon-based

IGBTpowermodules,siliconcarbidepower

modulescansignificantlyreducethenergylosof

theDC/DCconverterby80-90%.Thisdecreases

thenergyconsumptionintheconversionproces,

therebyimprovingthepowerusageficiencyand

reducingtheimpactofthenergyconsumptionof

in-vehiclelectronicdevicesonthevehicle’srange.

Themarketsizeofsiliconcarbidepowerdevicesin

theDC/DCconvertersegmentacountsfor0.4%of

thetotalglobalmarketsizeofsiliconcarbide

powerdevicesfornewenergyvehiclesin2024.

19.	2%

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC Power Semiconductor Devices in xEV

Source: Frost & Sulivan, Public

Information Colection

SiCAplication

•The system cost advantage of silicon carbide power devices is gradualy emerging and wil be further enhanced.

•The improvement in energy utilization eficiency brought about by silicon carbide power devices gives them a

competitive edge in terms of overal cost. Take the motor drive power module as an example. Compared with silicon-

based IGBT power modules, silicon carbide power modules can increase the overal energy utilization eficiency by 10%.

That is, for pure-electric vehicles with the same cruising range, the batery capacity can be reduced by 10% when using

silicon carbide power modules. Calculated based on the batery capacity of aproximately 65 kWh for mainstream

pure-electric vehicles, a pure-electric vehicle using a silicon carbide power module can save 3,250 RMB in batery costs

(calculated based on the cost of lithium iron phosphate bateries). The average reduction in this cost has exceded the

curent price gap betwen silicon carbide power modules and silicon-based IGBT power modules, demonstrating that

silicon carbide power modules are gradualy gaining an advantage in terms of system cost.

•Secondly, as the technology and manufacturing proceses mature and upgrade, the overal production and

manufacturing costs of silicon carbide power devices wil gradualy decline. The cost gap betwen silicon carbide power

devices and silicon-based IGBT power devices wil continue to narow, and the system cost advantage wil be further

enhanced, driving more new energy vehicles to adopt silicon carbide power devices.

•Furthermore, the aplication of silicon carbide power devices can significantly enhance the eficiency and user

experience at the system level in new energy vehicles. The use of silicon carbide power devices can efectively reduce

the number of pasive components, thereby reducing the size and weight of systems such as the motor drive and OBC,

and lowering the overal vehicle weight, thus improving energy eficiency. High-voltage systems based on silicon

carbide power devices suport faster charging rates, thereby enhancing user experience in charging.

SiC Penetration

•The market size of silicon carbide power devices aplied in the new energy vehicle sector is expected to grow further. It

is predicted that by 2030, the global sales revenue of silicon carbide power semiconductor devices for new energy

vehicles wil reach 14.7 bilion USD, with a compound anual growth rate of 36.1% from 2024 to 2030. The penetration

rate of silicon carbide power semiconductor devices in the new energy vehicle sector has ben on the rise. It was 19.2%

in 2024 and is expected to reach 53.6% in 2030.

Market Size of Global SiC Power Semiconductor Devices for xEV

Industry, in terms of revenue

Milion USD，2024-2030E

CAGR2024-2030E

Total36.1%

Note: Penetration rate in terms of percentage of xEV equiped with SiC

power semiconductor components out of xEV equiped with power

semiconductor components

2,309

14,690

5,000

10,000

15,000

53.6%

2030E

penetration rate of SiC power semiconductor device in xEV industry

revenue of global SiC power semiconductor device in xEV industry

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices –Photovoltaic Energy Storage

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC Power Semiconductor Devices in Photovoltaic Energy Storage

Source: Frost & Sulivan

Market Size of Global SiC Power Semiconductor Devices for Photovoltaics

+ES Industry, in terms of revenue

Milion USD，2024-2030E

CAGR2024-2030E

Total27.2%

SiCAplication

•Silicon carbide power semiconductor devices can be used in photovoltaic components such as inverters, bost

converters, and energy storage converters, as wel as in energy storage systems. They improve energy conversion

eficiency, reduce switching loses, decrease the volume of pasive components like inductors and capacitors, and

minimize the weight and size of the system to the greatest extent, thus facilitating the widespread aplication of

photovoltaic energy storage systems. Compared with traditional silicon-based devices, silicon-carbide-based

photovoltaic inverters can increase the conversion eficiency by 1%-3%. Their volume and weight can usualy be

reduced by 40%-60%, which is convenient for logistics transportation, simplifies the instalation proces, reduces

logistics and labor costs. Moreover, the reduced volume enables the inverters to be aplied in a more diverse range of

scenarios.

•Taking photovoltaic power generation as an example, the increase in power generation revenue brought about by the

improvement in conversion eficiency wil largely ofset or exced the aditional costs incured by using silicon carbide

power semiconductor devices, demonstrating the advantages of using such devices in the photovoltaic field. For

instance, a 10-MW power station can generate 16 milion kWh of electricity anualy. Asuming that silicon carbide

power semiconductor devices can increase the conversion eficiency by 2%, the anual aditional power generation is

320,000 kWh, which is aproximately worth 128,000 RMB. With an inverter service life of 10 years, the use of silicon

carbide modules is conducive to improving the return on investment in photovoltaic power generation.

SiC Penetration

•In the energy storage sector, in 2024, the newly instaled capacity of global new-type energy storage was

aproximately 43.7 GW, an increase of 24.9% compared to the previous year. Silicon carbide can drive the

development of energy storage converters towards large-capacity and modular directions. Compared with traditional

silicon-based IGBT solutions, silicon carbide devices can significantly simplify the design of energy storage converters.

For example, in a 1000-kW comercial and industrial energy storage converter, the adoption of silicon carbide

technology can reduce the number of required chips from 44 IGBTs to only 12 SiC devices, efectively balancing cost

and eficiency.

•With the reduction in the cost of silicon carbide and the improvement of various technologies in photovoltaic power

generation, the comprehensive cost-performance ratio of the silicon-carbide-based inverter solution wil be further

enhanced. The penetration rate of silicon carbide power semiconductor devices in the photovoltaic energy storage

industry is expected to gradualy increase, rising from 9.7% in 2024 to 20.4% in 2030.

Note: Penetration rate in terms of percentage of photovoltaic instalations equiped with SiC

power semiconductor components out of total global photovoltaic instalations with power

semiconductor components.

1,279

1,000

1,200

1,400

9.7%

20.4%

2030E

penetration rate of SiC power semiconductor device in Photovoltaics+ES industry

revenue of global SiC power semiconductor device in Photovoltaics+ES industry

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices –Ultra-fast Chargers

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC Power Semiconductor Devices in Ultra-fast Chargers

Source: Frost & Sulivan

➢At present, DC fast-charging technology is a key step in improving the energy-replenishment experience of xEVs. As the electrical systems of xEVsare transitioning from 400V to

800V, the power level and power density of the power modules of ultra-fast chargers are gradualy increasing from 20kW/30kW to 40kW/50kW and above to met the neds of

xEVswith higher voltages. Due to its excelent high-voltage and high-temperature resistance properties, SiC-based materials have a much lower on-resistance than silicon-based

materials, reducing conduction loses and ensuring that ultra-fast chargers can provide a higher and wider output voltage range to cover the batery neds of various xEV models.

At the same time, the low-junction-capacitance characteristic of SiC semiconductor materials alows for a higher switching frequency, which in ultra-fast chargers means faster

charging sped and higher power density. In adition, the high thermal stability and wide operating temperature range (-55°C to +175°C) of SiC MOSFETs ensure the stable

operation of ultra-fast chargers under various climatic conditions, meting the market demand for eficient, fast, and stable charging solutions.

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices –Data Centers

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC Power Semiconductor Devices in Data Centers

Source: Frost & Sulivan

SiC Aplication in Data Centers

•SiC is mainly aplied to the AC/DC stage of the rack power suply in AI data center power suplies. SiC MOSFETs can be used to construct the power-factor-corection (PFC) circuit

of the power-suply unit (PSU) to replace silicon-based MOSFETs. Compared with silicon-based MOSFETs, SiC MOSFETs have a higher switching frequency and lower reverse-

recovery loses, which can efectively reduce the number of components, increase the power density of the power suply, and improve the energy-conversion eficiency of the

AC/DC stage. The power density of a PSU using SiC MOSFETs can be more than twice that of a PSU using silicon-based power devices, and the power-conversion eficiency can be

increased by up to about 1%.

Market Size of Global Data Center, in terms of Capacity

•Benefiting from the development of large language model technology and the rapid penetration of generative AI, the global AI market size is growing rapidly. By 2030, global data

center capacity is expected to reach 299 GW, a net increase of 244 GW from 2023, at a CAGR of 27.4%. This growth wil significantly increase data center power consumption from

1.4% to 10% of global electricity use from 2023 to 2030. Traditional silicon-based power suply systems in data centers have an eficiency of about 85%-88%, wasting 12%-15% of

electricity as heat. SiC power semiconductor devices can help improve energy eficiency, reduce operating costs, and suport sustainable development strategies in data centers.

•Aditionaly, the rise in AI workloads has increased the number of AI servers in data centers, which consume significantly more power than traditional servers. This has led to a

higher power density requirement for rack power suplies, making SiC power devices a viable solution for increasing power outputwithin existing rack spaces. It is expected that

from 2025 to 2030, the global AI data-center scale wil increase by 201 GW. Corespondingly, the potential market size of PSUs based on SiC power devices in the AI data-center

field from 2025 to 2030 wil exced RMB80 bilion, the penetration rate of SiC in the AI data-center is expected to reach 18.3% in 2030.

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices –Power Grid

4.	2%

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC Power Semiconductor Devices in Power Grid

Source: Frost & Sulivan

Market Size of Global SiC Power Semiconductor Devices for Power Grid

Industry, in terms of revenue

Milion USD，2024-2030E

CAGR2024-2030E

Total24.5%

SiCAplication

•Renewable energy sources such as solar and wind have ben playing an increasingly important role in global

power systems. In 2024, renewable energy contributed over 40% of the global total electricity generation,

and this share is expected to rise further in the future. The power grid, as the primary carier of electricity

production, transmision, consumption, and utilization, faces growing demands for integration of distributed

renewable energy and energy storage. As such, the development of smart grids with stronger and more

flexible capabilities in regulation, control, and routing of power flows has become an inevitable trend. The

construction of smart grids requires extensive use of power devices to met the demands of aplications

such as power flexible DC transmision, power flow control, reactive voltage control, harmonic supresion,

AC-DC hybrid active distribution networks, and DC distribution networks. Silicon carbide power

semiconductor devices have overcome the limitations of silicon-based power semiconductors in terms of

high voltage, high power, and high temperature, thereby adresing system constraints. This has driven the

development and transformation of smart grids in various aplications, including solid-state transformers,

flexible AC transmision systems (FACTS), static VAR compensators (SVC), and high-voltage direct curent

(HVDC) transmision systems.

SiC Penetration

•SiC’spenetration rate is on the rise, from 4.2% in 2024, and is projected to reach 14.6% in 2030

•Thanks to the advantages of silicon carbide, such as high switching frequency, low los, high voltage

resistance, and high temperature tolerance, the aplication of silicon carbide power semiconductor devices

can significantly reduce the number of components required for power equipment, as wel as the

equipment’s size, weight, energy los, and system complexity. It also reduces the demand for coling

equipment, thereby lowering the overal construction cost of power systems. For example, in flexible DC

transmision, compared to silicon-based devices, the use of kilovolt-level, kilampere-grade silicon carbide

devices can significantly reduce the number of power devices required in the converter transformers,

thereby decreasing the volume, weight, energy consumption, heat disipation requirements, and overal

system cost of the converter transformers. In Static VAR Compensators (STATCOMs), silicon carbide-based

devices can simplify the structure and increase the switching frequency, thereby improving power quality

and helping adres power balancing presures and voltage control isues in modern power systems.

Note: Penetration rate in terms of percentage of power generator instalation equiped with SiC

power semiconductor components out of total global power generator instalations with power

semiconductor components

4.2%

14.6%

2030E

penetration rate of SiC power semiconductor device in Power Suply industry

revenue of global SiC power semiconductor device in Power Suply industry

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices –Rail Transportation

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC Power Semiconductor Devices in Rail Transportation

Source: Frost & Sulivan

Market Size of Global SiC Power Semiconductor Devices for Rail Industry, in terms of revenue

Milion USD，2024-2030E

CAGR2024-2030E

Total25.3%

SiCAplication

•The high critical field strength, high carier saturation velocity, and high thermal

conductivity of silicon carbide have enabled the miniaturization and lightweight

development of the traction conversion system in rail transit. This is crucial for meting

the gren and energy-saving requirements of rail vehicle operations.

•By using silicon carbide power semiconductor devices, the power-electronic devices of

rail transit vehicles can be significantly reduced in volume and weight, which has a

positive impact on increasing sped, aceleration, and extending the maintenance cycle

and service life.

•At the same time, the high-eficiency and high-power-density characteristics of these

devices also help to reduce operating costs and improve energy utilization eficiency.

SiC Penetration

•Starting from 16.7% in 2024, the penetration rate is projected to reach 36.6% in 2030.

This growth is atributed to the advantages that SiC devices ofer in terms of high-

temperature tolerance and high-frequency switching capabilities

•Curently, SiC has ben maturely aplied in the rail transit field. On July 2020, Zhuhai Line

1 in China adopted SiC power devices, which led to a 50% reduction in equipment volume,

a 56% decrease in weight, and an eficiency improvement to over 95.5%. Same month,

the N700S train of the Tokaido Shinkansen in Japan was oficialy put into operation. This

train adopted hybrid SiC modules, which reduced the size and weight of the traction

inverter by 40% and decreased loses by 35%

•Compared with the transmision system of the traditional silicon-based IGBT traction

inverter, the system based on silicon carbide power semiconductor devices reduced the

comprehensive energy consumption by more than 10%. The noise of the traction motor

decreased by more than 5 decibels in the medium-low-sped range, and the temperature

rise decreased by more than 40°C.

Note: Penetration rate in terms of percentage of rail industry equiped with SiC power semiconductor

components out of total global rail industry with power semiconductor components.

16.7%

36.6%

2030E

penetration rate of SiC power semiconductor device in Rail industry

revenue of global SiC power semiconductor device in Rail industry

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices –Household Apliances

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC Power Semiconductor Devices in Household Apliances

Source: Frost & Sulivan

In the field of household apliances, SiC Schotky barier diodes (SBDs) and SiC MOSFETs can be used in power-factor-corection (PFC) circuits, motor drives, bost circuits, high-

voltage power suplies, etc., and are suitable for high-power household apliances. SiC power semiconductor devices can improve the energy-conversion eficiency of household

apliances, thereby enhancingenergy-eficiency performance and providing consumers with more environmentaly friendly and eficient household apliances products.

At the same time, SiC power semiconductor devices can increase the power density of household apliances power suplies and reduce the size of heat sinks, thus reducing the

volume and cost of magnetic components and thermal-management components and promoting the miniaturization of household apliances products. Taking air conditioners as

an example, to met higher energy-eficiency standards, the PFC frequency of variable-frequency air conditioners is constantly increasing. Traditional silicon-based IGBTs and fast-

recovery diodes (FRDs) are gradualy strugling to met the requirements of high voltage, high switching frequency, and shortreverse-recovery time. SiC SBDs have become the

first choice to replace these silicon-based power devices.

Aplication in Air Conditioning

Air conditioning is expected to be a major sector to adopt SiC power semiconductor devices. In 2030, the potential shipments of SiC-based high-end home air conditioners could

reach more than 80 milion units, which acount for aproximately 30% of the global home air conditioner shipments in the same year. Going forward, it is posible for SiC power

semiconductor devices to become more afordable and to penetrate into mas market of home air conditioners, which holds aproximately 70% of the market share. SiC power

semiconductor devices have great growth potential in the global household apliances market and wil be more widely aplied in the future in areas such as refrigerators, washing

machines, microwave ovens, induction cokers, electric ovens, rice cokers, and televisions.

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices –electric Vertical Take-of and Landing (eVTOL)

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC Power Semiconductor Devices in eVTOL

Source: Frost & Sulivan

1.0

19.6

20242030E

Market Size of Global eVTOLMarket

Bilion USD, 2024E-2030E

➢Theweightofthemotorisanimportantindicatorinthedesignrequirements

ofeVTOLaircraft,whichasahighdemandforthepowerdensityof

materials.Thehigh-power-density,high-temperature-resistant,andhigh-

voltage-resistantcharacteristicsofSiCpowersemiconductordevicescan

metherequirementsofeVTOLaircraftforthevoltageresistanceand

outputpowerofelectricontrol,makingthemanidealchoiceforlow-

altitudeaircraftandhelpingtoimproveflightperformanceandsafety.

➢Theglobalow-altitudeflighteconomymarketsizereached1.0bilionUSDin

2024andisexpectedtoreach19.6bilionUSDby2030.

➢TheaplicationofSiCpowersemiconductordevicesintheVTOLaircraft

fieldhasjuststarted.Withthegrowthofthelow-altitudeflighteconomy,the

potentialofSiCinthisfieldishuge.

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC RF Semiconductor Devices -Overview

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

Global semi-insulating SiC based RF semiconductor device market size

Bilion USD，2020-2030E

CAGR2020-20242024-2030E

Total5.9%19.2%

KeyFindings

➢In2024,theglobalmarketsizeofsemi-

insulatingsiliconcarbide-basedRF

semiconductordevicesreached1.12bilion

USD.Inthenextfiveyears,drivenbythe5G

market,semi-insulatingsiliconcarbide-based

RFsemiconductordeviceswilgradualy

capturethemarketshareofLDMOS,andthe

globalmarketforsemi-insulatingsilicon

carbide-basedRFsemiconductordevicesis

expectedtoenterastageofacelerated

growth.By2030,themarketisexpectedto

reachapeakof3.2bilionUSD.During2024to

2030,thecompoundanualgrowthrateofthe

marketisexpectedtoreach19.2%.This

remarkablegrowthratereflectsthestrong

growthinmarketdemandforsemi-insulating

siliconcarbide-basedRFsemiconductordevices.

RFsemiconductordevicesplayacrucialroleinthewirelescomunicationfield.Theyaremainlyresponsible

forsignalconversionandprocesingandareindispensablebasicomponentsofwirelescomunication

devices.Thesedevicesincludepoweramplifiers,filters,switches,low-noiseamplifiers,anduplexers,which

jointlyensuretheperformanceandeficiencyofcomunicationsystems.Especialyinthefieldofcomercial

mobilecomunication,galiumnitrideRFsemiconductordevicesbasedonsemi-insulatingSiCsubstrates

exhibitsignificantadvantages.Withtheirhigh-power,high-eficiency,andhigh-frequencycharacteristics,these

devicesarewidelyusedinpoweramplifiersofcomunicationbasestations,significantlyimprovingthequality

andcoverageofsignaltransmision.Inadition,withthepopularizationof5Gnetworksandthedevelopment

ofInternetofThingstechnologies,galiumnitrideRFsemiconductordevicesplayakeyroleinincreasingdata

transmisionrates,reducingenergyconsumption,andsuportingtheconectionofmoredevices.

Definition

202020212022202320242025E2026E2027E2028E2029E2030E

0.89

0.95

1.021.01

1.12

1.27

1.47

1.74

2.09

2.56

3.20

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC RF Semiconductor Devices –AI Glases

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC in AI Glases

Source: Frost & Sulivan

➢ForAIglases’opticalsystems,silicon-carbide-basedSRGwaveguidesarearevolutionaryinovation.Siliconcarbidehavetraitslikehighrefractiveindex,wideFOV,andful-color

integration.Notably,siliconcarbide’sexceptionalrefractiveindex(2.6−2.7)enablesingle-layerintegrationofRGBcolorchanels,efectivelyadresingrainbowefectsand

significantlyreducingdeviceweight,thicknesandproductioncomplexitycomparedtoconventionalmulti-layersolutions.ThisadvancementpositionsiliconcarbideSRG

waveguidesastheoptimalchoicefornext-generationARdisplaysrequiringcompactformfactorsandimersivevisualexperiences.AsAIglasesevolveintomainstreamwearable

computingplatforms,itisestimatedthatby2030,thepotentialmarketsizeofsilicon-carbide-basedSRGwaveguidesintheglobalAIglasesmarketwilreachover60milion

pieces.

	SRG Waveguide	VHG Waveguide	Array Waveguide
Advantages	‐ Mature manufacturing process with low mass production difficulty: The production and manufacturing of SRG waveguides adopt mature semiconductor manufacturing processes such as nanoimprinting.	‐ Excellent display effect: High diffraction efficiency, capable of achieving a larger field of view angle, avoiding light leakage problems, and reducing the rainbow effect.	‐ Excellent display effect: Uniform color, large field of view angle, high resolution and high light efficiency.
Current Main Limitations	‐ The refractive index of traditional waveguide materials (such as glass) is relatively low, resulting in a smaller FOV and lower light efficiency. ‐ There is a rainbow effect.	‐ The final display effect depends on the selection and preparation of holographic materials, which will directly affect optical properties such as the uniformity of the holographic coating and the FOV. ‐ Has very strict requirements on the stability of the production environment.	‐ High mass production difficulty and cost: The manufacturing process of array waveguides is complex, and the manufacturing complexity of the array mirror film layer is high, resulting in low yield; if two-dimensional pupil expansion technology is used, the mass production difficulty and cost are several times that of one-dimensional pupil expansion.

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC in AI Glases

Source: Frost & Sulivan

Comparison of Main Optical Solutions for AI Glases

➢Theopticalsystemisoneofthesentialhardware

componentsofAIglaseswithdisplayfunctions.The

opticalsystemtransmitstheimagesdisplayedonthe

screntotheuser’seyeswhilenotinterferingwith

theuser’sviewoftherealworld.Curently,themain

opticalsolutionsforAIglasesincludeBirdbathand

opticalwaveguides.Amongthem,opticalwaveguides

haveadvantagesintermsofvolume,light

transmitance,clarity,andfield-of-view(FOV),and

wilbecomethemainstreamopticalsolutionforAI

glasesinthefuture.Opticalwaveguidescanbe

dividedintogeometricopticalwaveguidesand

difractiveopticalwaveguides.Geometricoptical

waveguidesaremainlydominatedbyarayoptical

waveguides,andifractiveopticalwaveguidesare

furtherdividedintosurfacereliefgrating(SRG)

waveguidesandvolumetricholographicgrating(VHG)

waveguides.Benefitingfromtheuseofmature

semiconductormanufacturingproceses,SRG

waveguideshaveastrongermas-productioncapacity.

However,howtoadrescurentisuesuchasthe

smalFOVandrainbowefectofSRGwaveguideshas

becomeakeyfactorafectingthepenetrationrateof

SRGwaveguides.

	SiC	High Index Glasses	LiNbO 3
Refractive Index	2.6-2.7	<2.1	2.3
FOV	60-70°	<30°	40-50°
Full-color Display Solution	It can combine the red, yellow, and blue color channels into a single waveguide, reducing the size, weight, manufacturing cost, and complexity of AI glasses.	Adopts a two-layer or multi- layer waveguide solution, resulting in higher weight and cost.	Adopts a two-layer or multi- layer waveguide solution, resulting in higher weight and cost.

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC in AI Glases

Source: Frost & Sulivan

Comparison of Silicon Carbide and Some Traditional Materials

Theoretical Relationship betwen Waveguide

Refractive Index and Display FOV

➢InSRGwaveguides,therefractiveindexofthematerialusedtomaketheopticalwaveguideisakeyfactordeterminingthesizeoftheFOV.Thehighertherefractiveindexofthe

material,thelargertheFOVoftheAIglases.Therefractiveindexofsiliconcarbideisignificantlyhigherthanthatofcompetingmaterialsuchashigh-refractive-indexglasand

lithiumniobate.WhenapliedinAIglases,itcanachievealargerFOV,significantlyenhancingtheuserexperience.Inadition,thehighrefractiveindexofsiliconcarbidemakesit

posibletocombinethered,yelow,andbluecolorchanelsintoasinglewaveguide.Thiscanreplacethemulti-layeropticalwaveguidesolutionusedtoaleviatetherainbow-

stripefectandachieveful-colordisplay,reducingthesize,weight,manufacturingcost,andcomplexityofAIglases.

➢Benefitingfromtheabove-mentionedadvantagesofsiliconcarbidematerials,thesilicon-carbide-basedSRGwaveguidesolutionhashugepotentialforgrowthinthedisplayfield

ofAIglases.Itisestimatedthatby2030,thepotentialmarketsizeofsilicon-carbide-basedSRGwaveguidesintheglobalAIglasesmarketwilreach659.3milionpieces.

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC RF Semiconductor Devices –TF-SAW High-end Filters

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC in TF-SAW High-end Filters

Source: Frost & Sulivan

Definition

•TF-SAW (Thin-film surface acoustic wave) high-end filters are a type of acoustic filter. Acoustic filters are used to proces acoustic wave signals. They can selectively

pas or supres acoustic waves of specific frequencies, thus achieving a filtering efect. They are widely aplied in fieldsuch as consumer electronics (smartphones,

personal computers, etc.), Internet of Things devices, and vehicle-to-everything (V2X). Acoustic filters include surface acoustic wave (SAW) filters and bulk acoustic

wave (BAW) filters. SAW filters are the filter components most comonly used in consumer electronics on a large scale. They havea relatively low cost and complexity

and are mainly suitable for low-frequency comunication. BAW filters, on the other hand, are slightly more expensive and are mainly used in high-frequency

comunication. As wireles comunication technology evolves towards higher comunication frequency bands, the market for filtersthat suport these higher

frequency bands has great potential. However, due to the high cost, proces complexity, and high manufacturer concentration of BAW filters, more and more filter

manufacturers are seking technological inovation in the SAW filter field to enable SAW filters to suport higher comunicationfrequency bands.

•TF-SAW filters are curently the most important technological inovation direction in the SAW filter field. TF-SAW filters are based on the Piezoelectric on Insulator

(POI) substrate. By ading a carier substrate under the piezoelectric layer, energy disipation is reduced. They poses excelent properties such as high frequency,

high selectivity, high temperature stability, low insertion los, smal size, high reliability, and durability. The production proces of TF-SAW filters is similar to that of

ordinary SAW filters, and their proces complexity and manufacturing cost are lower than those of BAW filters. However, the POI substrate has become the core factor

determining the competitivenes of TF-SAW filters.

Benefiting from its excelent physical properties, TF-SAW filters based on silicon carbide substrates perform even more outstandingly in terms of high frequency, high Q-value, high

power, and high-temperature stability. Specificaly:

(1)The high sound-velocity property of silicon carbide helps optimize the acoustic wave propagation mode in TF-SAW filters, therebyimproving the frequency selectivity and pas-

band performance of the filters;

(2)The low-los property of silicon carbide efectively reduces the acoustic wave propagation los and enhances the filtering eficiency;

(3)The high thermal conductivity and low coeficient of thermal expansion of silicon carbide materials enable beter low-temperature bonding with other heterogeneous materials

and met the requirements of temperature compensation and heat disipation.

Silicon-carbide-based TF-SAW filters can suport frequency bands above 3.3GHz and can be used in high-end smartphones (5G and above), 5G routers, base stations, optical

comunication, AIoT, inteligent conected vehicles, and other fields. They are expected to replace BAW filters in high-frequency bands. With the development of wireles

comunication technology towards more advanced comunication technologies (such as 5G-Advanced, 6G), the demand in the comunication field for silicon-carbide-based TF-

SAW filters with high frequency, large bandwidth, high-power handling capabilities, high-temperature stability, miniaturization,and integration has increased significantly. The

global market for silicon-carbide-based TF-SAW filters is expected to continue growing. As wireles comunication technology advances, the demand for these filters is expected to

grow substantialy, with the potential market size for silicon-carbide-based TF-SAW filters projected to reach USD5.2 bilion by2030.

SiC Aplication

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC RF Semiconductor Devices –Heat Disipation Components

Overview of Global Silicon Carbide Materials and Aplications Market

Aplications of SiC in Heat Disipation Components

Source: Frost & Sulivan

SiC Aplication

Due to its high thermal conductivity, low coeficient of thermal expansion, high hardnes, chemical stability, and lightweight characteristics, SiC has a wide range of aplications

in the fields of heat disipation and heat sinks, including semiconductors, thermal management systems, 5G comunication, high-power LED lighting, electric vehicles, and

renewable energy systems. This improves the operating eficiency and reliability of equipment, reduces the weight of the thermalmanagement system, and extends the service

life of the equipment. Compared with traditional heat-disipation materials such as coper and aluminum nitride, the thermal conductivity of SiC is 1.2 times that of coper and

more than 2 times that of aluminum nitride. Therefore, SiC is more suitable for scenarios where rapid heat disipation is required to protect sensitive electronic components or

to maintain stable operation in high-power-density devices.

For example, in high-power laser aplications, silicon carbide could be used in the fabrication of heat sinks, which are designed to transfer heat away from a heat-generating

object, to replace other conventional materials. It is estimated that in 2030 the total potential demands for heat sinks madeofsilicon carbide in high-power laser aplications

could reach more than 35 milion pieces.

TAM Estimation

Overview of Global Silicon Carbide Materials and Aplications Market1

Overview of Global Silicon Carbide Substrate Market2

Competitive Landscape of Global Silicon Carbide Substrate Market3

Overview of Global Silicon Carbide Substrate Market

Introduction of Silicon Carbide Substrates and Manufacturing Proceses

Source: Frost & Sulivan

•A silicon carbide substrate refers to a single-piece material formed through manufacturing proceses such as crystal growth, ingot procesing, cuting, grinding,

polishing, and cleaning, with silicon carbide powder as the main raw material. It is the basic material for fabricating wide-bandgap semiconductors and other

silicon-carbide-based devices. The research, development, and manufacturing proceses of silicon carbide substrates are highly complex, involving the

aplication of interdisciplinary knowledge from materials science, thermodynamics, semiconductor physics, chemistry, computersimulation, and mechanics.

The manufacturing proces of silicon carbide substrates is much more dificult than that of silicon wafers. Moreover, the growthrate of silicon carbide ingots is

slow, resulting in high technical bariers, low product yields, long manufacturing cycles, and high costs for silicon carbidesubstrates.

•Based on diferences in electrical properties, silicon carbide substrates are divided into conductive substrates and semi-insulating substrates. Conductive

substrates, through the homo-epitaxy proces, grow an epitaxial layer with characteristics consistent with those of the substrate material, and are mainly

aplied to the manufacturing of silicon carbide power semiconductor devices. Silicon carbide power semiconductor devices, with their excelent performance

in terms of high eficiency, high power density, and high-temperature resistance, play a key role in multiple fields such as newenergy vehicles, photovoltaic

energy storage, rail transit, industry, and data centers. Semi-insulating substrates, on the one hand, can use hetero-epitaxy technology to grow a galium nitride

epitaxial layer with diferent characteristics from the substrate material, mainly for the production of radio-frequency (RF) devices. These RF devices

demonstrate their unique value in high-frequency comunication aplications. On the other hand, semi-insulating substrates can be used in other types of

devices such as optical waveguides, high-end filters, and heat disipation components, leveraging the unique advantages of silicon carbide in acoustics, optics,

and heat disipation.

•When clasified by substrate diameter, silicon carbide substrates can be divided into products with diameters of 2-inch,3-inch, 4-inch, 6-inch, 8-inch, and 12-

inch. The research, development, and comercialization progres of diferent-sized silicon carbide substrates under diferent technical routes vary.

Definition

subs	trate

subst	rate

Epi-w	afer

Overview of Global Silicon Carbide Substrate Market

Silicon Carbide Substrate Industry Chain

Source: Frost & Sulivan

•Substratemanufacturersareupstreamparticipantsinthentiresiliconcarbideindustrychain.Theyareresponsibleforprocesingrawmaterialsintosiliconcarbide

substratesthroughaseriesoftechnologicalproceses.Thesesubstratemanufacturersareacrucialinkintheindustrychain,transformingrawmaterialsintosubstrate

productsthatcanbeusedbydownstreamplayers.

•Themid-andownstreamsegmentsincludedevicemanufacturers,foundrymanufacturers,andend-customers.Afterepitaxialgrowth,thesubstratesareusedto

manufacturevariouspowerdevices,radio-frequencydevices,etc.Thesedevicesarewidelyapliedinfieldsuchasnewenergyvehicles,photovoltaicsandenergy

storage,powersuply,railtransit,andemergingindustries.

Downstream

Aplications

xEV

Photovoltaics+ Energy

Storage System (ES)

Power Grid

Rail

Emerging Industries

Others

UpstreamMidstream

Raw Materials SupliersDevice Manufacturers

Substrate Providers

Epitaxial-wafer

Providers

Packaging &

Testing

ManufacturingDesign

Manufacturers

Devicemanufacturershavetheoptiontoprocuresubstratesand

conductin-housepitaxyprocesesorelectoacquirepre-

fabricatedepitaxialwafersfromexternalsupliers

Data Center

Overview of Global Silicon Carbide Substrate Market

Introduction of Silicon Carbide Substrates and Manufacturing Proceses

Source: Frost & Sulivan

High-purity

carbon powder /

silicon powder

Silicon carbide

powder

Raw material

synthesis

Silicon carbide

ingot

Silicon carbide

crystal rod

Silicon carbide

wafer

Silicon carbide

substrate

Crystal

growth

Ingot

procesing

Crystal rod

cuting

Wafer grinding,

polishing, cleaning

-Raw Material Synthesis: High-purity silicon powder and high-purity carbon powder are uniformly mixed acording to the proces formula. Under high-temperature

conditions above 2000°C, in the reaction chamber, high-purity silicon carbide powder raw materials meting the requirements of crystal growth are prepared through

specific reaction proceses and treatment procedures. Silicon carbide substrate manufacturers without the ability of raw material synthesis usualy ned to purchase

finished silicon carbide powder raw materials from outside.

-Crystal Growth: The Physical Vapor Transport (PVT) method is comonly used in the industry to prepare silicon carbide single crystals. The PVT method realizes the growth

of ingots through sublimation and vapor deposition, including thre main proceses: high-temperature sublimation, vapor transport, and crystal growth, ultimately forming

high-quality SiCingots.

-Ingot Procesing: The silicon carbide ingot is ground and rounded through precision machining to be procesed into a silicon carbide crystal rod with a standard diameter

size and angle.

-Crystal Rod Cuting: In the industry, multi-wire cuting (such as diamond wire cuting) is often used to cut the silicon carbide crystal rod into cuting slices of diferent

thickneses to met customer requirements. Automatic testing equipment is used to detect surface shapes such as warpage, bow,and thicknes variation.

-Wafer Grinding, Polishing and Cleaning: During the grinding proces, the cuting slices are thined to the apropriate thicknes using a grinding fluid, while also removing

surface wire marks and damage. For polishing, the ground slices undergo mechanical and chemical polishing with a polishing fluid. This serves to eliminate surface

scratches, reduce surface roughnes, relieve procesing stres, and ultimately achieve a nanoscale level of flatnes on the surface of the ground slices. Finaly, in the

cleaning stage, the polished slices inside the cleaning machine are washed with chemical reagents and deionized water. This removes fine dust particles, metal ions, and

organic contaminants from the surface of the polished slices. After that, the slices are spin-dried and packaged in clean wafer boxes, resulting in silicon carbide substrates

that are ready-to-use for customers upon opening the box.

The technological proces of silicon carbide substrates includes steps such as raw material synthesis, crystal growth, ingot procesing, crystal bar cuting, wafer grinding,

polishing, and cleaning. The specific technological proces is shown in the folowing figure:

Overview of Global Silicon Carbide Substrate Market

Dificulties in Manufacturing Proceses

Source: Frost & Sulivan

The preparation of silicon carbide substrates is highly complex, with the folowing dificulties:

•High dificulty in growth proces: Defect control during the growth of SiCsingle crystals is extremely chalenging and constitutes a significant production dificulty. First, there are diverse and

intractable defect types. Second, SiChas a complex crystal form, covering more than 200 structures. Many of these crystal forms are prone to transformation due tosimilar formation energies in a

high-temperature growth environment, resulting in polytype inclusion, which disrupts the crystal structure and seriously interferes with electrical and optical properties. Third, thermal field factors

lead to many problems. The temperature gradient in the thermal field can generate thermal stres. Coupled with frequent fluctuations in temperature and components during the growth proces,

defects such as dislocations are likely to ocur, laying hiden dangers for subsequent epitaxial growth and device manufacturing, and greatly afecting product quality and performance. Overal, these

dificulties are intertwined, and producers must adopt precise measures in complex technological proceses to achieve the stableproduction of high-quality SiCsingle crystals.

•Powder synthesis dificulty: The preparation of SiCpowder faces several chalenges. The synthesis environment exerts an influence, and the raw and auxiliary materials contain inherent and

unremovable impurities. As a result, the synthesized SiCpowder unavoidably has a large number of impurities introduced. These impurities directly impact the purity and electrical performance of the

crystals, posing significant dificulties in the preparation of high-quality SiCpowder.

•High procesing dificulty: Silicon carbide substrates, as a high-hardnes britle material, face chalenges such as cracking during procesing and isues like warping post-procesing. To met the high

standards of “ready-to-use” requirements for downstream epitaxial proceses, ultra-precision surface procesing is esential to significantly reduce surface roughnes and improve flatnes, while

strictly controling metal impurities and particle contamination. Aditionaly, the high hardnes and britlenes of SiCsubstrates make cuting, grinding, and polishing proceses time-consuming and

prone to chiping, further increasing procesing dificulty. These factors colectively highlight the high technical bariersand complexity involved in the procesing of SiCsubstrates.

•High dificulty in diameter expansion: Large-sized crystals require a more uniform temperature distribution to avoid stres and defects. Thermal stres management becomes more complex. Internal

stres caused by temperature gradients and growth rate diferences may lead to crystal cracking. Raw material consumption andcosts increase acordingly, as diameter expansion means more high-

purity raw materials are neded. The crystal growth rate slows down, increasing the production cycle and costs. Due to the combined efects of the above factors, the growth yield of expanded-

diameter crystals is usualy low, afecting the product’s economic eficiency and market competitivenes. These chalenges ned to be overcome through technological inovation and proces

optimization to achieve the stable production of large-sized, high-quality SiCsubstrates. Curently, 6-inch silicon carbide substrates have become the mainstream in the market, while 8-inch

substrates are in a phase of rapid scaling. With swift technological advancements, they are expected to further drive industry upgrades in the future.

•Dificulty in maintain production consistency: The highly complex preparation proces of SiCsubstrates makes it dificult to maintain production quality consistency during large-scale mas

production. The quality of the final SiCsubstrate is jointly afected by key links such as material purity, proces control capabilities, equipment acuracy, and inspection capabilities. The instability of

any link wil afect the consistency of the final product quality. Substrate manufacturers usualy ned to have a profound understanding of proces technology, and by establishing a fine-grained

production proces system, introducing automated and inteligent equipment, and implementing a complete quality inspection system, they can ultimately achieve consistency in product production

quality during large-scale mas production.

50.1
8.4

33.1
6.6

22.7
5.3

16.3
4.1

12.0
3.3

8.7
2.6

5.4
2.0

6.6
2.2

3.4

Overview of Global Silicon Carbide Substrate Market

Global Silicon Carbide Substrate Market Size

Source: Yole, Frost & Sulivan

Global Silicon Carbide Substrate Market, by Sales Revenue

bilion RMB, 2020-2030E

CAGR2020-20242024-2030E

Total

29.9%37.1%

38.5%40.1%

14.1%25.0%

1.3

1.5

1.7

2.6

1.8

2.4

2.0

2.2

20242025E2026E2027E2028E2029E2030E

3.0

3.8

5.1

7.4

8.8

11.3

15.3

20.4

27.9

39.7

58.5

Conductive silicon carbide substrate

Semi-insulating silicon carbide substrate

KeyTakeaways

•Intermsofsalesrevenue,theglobalsiliconcarbidesubstrate

markethasgrownfrom3.0bilionRMBin2020to8.8bilionRMB

in2024,withacompoundanualgrowthrateof29.9%.Itis

expectedthatby2030,themarketsizeislikelytoincreaseto58.5

bilionRMB,withacompoundanualgrowthrateof37.1%.

•Themarketsizeofconductivesiliconcarbidesubstratesis

expectedtogrowfrom1.8bilionRMBin2020to6.6bilionRMB

in2024,withacompoundanualgrowthrateof38.5%.Itis

projectedthatby2030,themarketsizeofconductivesilicon

carbidesubstrateswilreach50.1bilionRMB,withaCAGRof

40.1%.

•Themarketsizeofsemi-insulatingsiliconcarbidesubstrateswil

increasefrom1.3bilionRMBin2020to2.2bilionRMBin2024,

withaCAGRof14.1%.Itisestimatedthatby2030,themarketsize

ofsemi-insulatingsiliconcarbidesubstrateswilgrowto8.4bilion

RMB,withaCAGRof25.0%.

Note: The market size only includes products for external sales, and data of self-produced and self-used

products are not included.)

Overview of Global Silicon Carbide Substrate Market

Key Drivers

Source: Frost & Sulivan

Forenergysuply,energytransitionemphasizesreducingrelianceonfosilfuelsandevelopingcleanandrenewablenergysourceslikesolarandwindenergy.In2024,

renewablenergyacountedforover40%oftheglobaltotalelectricitygeneration,andthisproportionisexpectedtorisefurtherinthefuture.Forenergyconsumption,the

trendofelectrificationisdrivingthegrowthofelectricityconsumptiondemandandchangingthenergyconsumptionstructure.From2020to2024,theproportionofglobal

electricityconsumptionintotalglobalenergyconsumptionincreasedfrom19.8%tover20%andisexpectedtofurtherincreaseto23%in2028.Theincreaseinthetotal

amountofelectricityconsumptionmakestheconversioneficiencyofelectricityparticularlycrucial.Thankstotheadvantagesofsiliconcarbidematerials,suchashigh

frequency,lowlos,high-voltageresistance,andhigh-temperatureresistance,siliconcarbidepowersemiconductordevicescanenhancetheconversioneficiencyofelectricity

inthegenerationandconsumption,achieveasmalersystemsizeandhigherpowerdensity,andalsolesdemandforcolingsystems.Theyhavebecomethe”energy

eficiencymultipliers”infieldsuchasnewenergyvehicles,photovoltaicandenergystoragesystem,powersuply,andatacenters,drivingthenergysystemtotransition

towardslow-carbonization.Theglobalmarketsizeofthesiliconcarbidepowersemiconductordeviceindustryisexpectedtoreach$19.7bilionin2030,withacompound

anualgrowthrateof35.2%from2024to2030.

GlobalEnergyTransitionPropelstheDevelopmentoftheSiliconCarbideIndustry

Curently,AIisbeingintegratedintovariousaspectsofindustriesandpeople’sdailylives,exertingaprofoundimpactonhumandevelopment.Withtheadvancementoflarge

languagemodeltechnology,generativeAIhastrongereasoningandinteligentcapabilities,furtheraceleratingtherapidpenetrationofAI.Asanimportantinfrastructure

suportingthedevelopmentofAI,datacentersarexpectedtoacountfor10%ofglobalpowerconsumptionby2030.Comparedwithtraditionalsilicon-basedpower

semiconductordevices,siliconcarbide-basedpowersemiconductordevicescanprovidehigherpowerconversioneficiencyandhigherpowerdensity.Theaplicationof

siliconcarbide-basedpowersemiconductordevicesindatacentersisaninevitablechoicetoaleviatetheglobalpowersuplychalengesforAIandachievethelow-

carbonizationofdatacenters.Moreover,thedevelopmentofAItechnologycontinuouslygivesrisetoinovationsinAI-enabledsmartproducts,whichinturncreate

aplicationoportunitiesfornewmaterialsrepresentedbysiliconcarbide.Forexample,theaplicationofsilicon-carbide-basedopticalwaveguidesinAIglasescanachievea

largerfieldofviewandasimplerstructuredful-colordisplay.Thiscanreducethesize,weight,manufacturingcost,andcomplexityofAIglases,andsignificantlyenhancethe

userexperience.

GrowthandInovationofAIndustriesCreateMoreIncrementalOportunitiesforSiliconCarbide

Overview of Global Silicon Carbide Substrate Market

Key Drivers

Source: Frost & Sulivan

From2020to 2024,theglobalmarketsizeoftheSiCpowersemiconductordeviceindustryincreasedsignificantly,from$644milionto$3.2bilion,withaCAGRof49.8%.This

growthtrendnotonlyreflectsthestrongdemandintheSiCpowersemiconductordevicemarketbutalsodirectlydrivesthegrowthofthedemandforSiCsubstrates.Withthe

widespreadaplicationofSiCpowersemiconductordevicesinstrategicemergingindustriesuchasxEVs,photovoltaicandwindenergy,and5Gcomunication,thesubstrate,

asakeymaterialforproducingSiCdevices,hasenanexpansioninmarketdemand.Itisexpectedthatfrom2024to2030,themarketsizeoftheSiCpowerdeviceindustry

wilcontinuetogrow,withacompoundanualgrowthrateof35.2%.By2030,themarketsizeisexpectedtoreachaproximately$19.7bilion.Theglobalpenetrationrateof

SiCinthentirepowersemiconductordevicemarkethasalsoincreasedsignificantly,from1.4%in2020to6.5%in2024,andisexpectedtoincreaseto22.6%by2030.

HigherRequirementsforPerformance,Eficiency,andStabilityDrivetheGrowthoftheSiliconCarbidePowerDeviceMarket

Technologicalprogresincrystalgrowth,slicing,andgrindingandpolishingproceseshasignificantlyimprovedtheproductioneficiencyofSiCsubstratesandreduced

productioncosts.Forexample,advancementsincrystalgrowthtechnologyhavenabledthemasproductionof8-inchconductivesubstrates.Thelargeravailablesubstrate

areahasreducedtheunitcomprehensivecostby50%andincreasedthesubstrateproductionyield,furtherdrivingdowntheunitcostofsubstrates.Withcontinuous

technologicalprogresandcapacityexpansion,thecostofSiCsubstratesisexpectedtodeclinefurther,andtheireconomyandmarketpenetrationratewilcontinueto

increase.

TechnologicalAdvancementsImproveProductionEficiency,ReduceProductionCosts,andEnhanceEconomyandPenetrationRate

Overview of Global Silicon Carbide Substrate Market

Key Trends

Source: Frost & Sulivan

SiCsubstrateshavewitnesedrapidevelopmentinrecentyears,withtheiraplicationscopecontinuouslyexpanding.ThepenetrationrateofSiCpowersemiconductor

devicesinthexEVsfieldwas19.2%in2024andisexpectedtoreach53.6%by2030.Inthephotovoltaicenergystoragefield,themarketpenetrationrateofSiCisexpectedto

increasefrom9.7%in2024to20.4%in2030.Intheopticalwaveguidefield,SiCcanbeusedinAIglasestoachievealowerefractiveindexandlighterweight.Itisexpected

thatinthefuture,withtheincreaseintheshipmentvolumeofAIglases,theshipmentvolumeofSiCinthisfieldwilalsorise.Withthevigorousdevelopmentof5G,the

demandforSiCinthefilterfieldhasincreasedsharply.Thehigh-frequencyandhigh-spedcharacteristicsof5Grequirefilterstohavelowlosandhighstability,whichSiC

substratescanpreciselymet.Therefore,intheconstructionofadvancedcomunicationbasestationsinthefuture,itspenetrationratewilclimbyearbyear.Its

penetrationrateinadvancedcomunicationbasestationsincreasedfrom36%in2019to50%in2024andisexpectedtoincreaseto66%by2030.Athesametime,the

improvementofelectronicdeviceperformancebringsheatdisipationpresure.SiC,withitshighthermalconductivityandhigh-temperatureresistance,standsoutinthe

high-endheat-disipationmaterialmarket,anditsmarketsharewilcontinuetogrow.Evidently,SiCsubstratematerialshavegreatpotentialinbothexistingandemerging

fields.Inthefuture,theywilplayakeyroleinthetransformationofthetechnologyindustry,helpingmultipleindustriesbreakthroughtechnicalbotlenecksandpromoting

theglobaltechnologyindustrytoanewheight.

AceleratedPenetrationinExistingFieldsandExpansionintoEmergingAplicationAreas

Atpresent,theSiCsubstrateindustryisatacrucialdevelopmentstageofsizeupgrading.Although6-inchconductivesubstratesarestildominantinthemarket,themarket

demandfor8-inchconductivesubstratesisgradualyrising.Theoutputofsingle-chipchipsonan8-inchsubstrateisaproximatelytwicethatofa6-inchsubstrateandfour

timesthatofa4-inchsubstrate.Moreover,8-inchsubstratescanmakepartialuseoftheproductionlinequipmentofsilicon-basedpowerchips,whichcanefectivelyreduce

costsandimproveproductioneficiency.EnterprisesthataketheleadinachievingR&Dbreakthroughsin8-inchSiCsubstrateswilentertheverificationprocesof

downstreamdevicemanufacturersearlier.Theverificationperiodfortheirelectricalperformancegeneralylasts6to12months.Oncetheverificationisucesful,

downstreamdevicemanufacturerswilnoteasilychangesubstratesupliers.Basedontheseadvantages,globalsubstratemanufacturersarevigorouslyinvestinginthe

constructionof8-inchconductivesubstrateproductionlines.StatisticshowthathetotalinvestmentofglobalSiCpowersemiconductordevicemanufacturersin8-inch

projectshasexceded175.4bilionRMB.Amongthem,thetotalinvestmentofthetopfiveSiCpowerdevicemanufacturershasexceded126.9bilionRMB,acountingfor

morethan72%.Athesametime,manufacturersintheindustryareconstantlyexploringsubstratesoflargersizes.Curently,thereareR&Dsamplesof12-inchconductive

SiCsubstrates.The12-inchsubstratescanfurtherenhanceconomicbenefits,createmoreposibilitiesforthelarge-scaleaplicationofSiCmaterials,andrepresenthe

futuredevelopmentdirectionandindustrializationtrendofSiCsubstratetechnology.

Thesubstratesarevolvingtowardslargersizes.Curently,6-inchconductivesubstratesremainthemainstream,whilethe8-inchconductive

substratesarestartingtogainmomentum,andtherearealreadyR&Dsamplesof12-inchconductivesubstrates

Overview of Global Silicon Carbide Substrate Market

Key Trends

Source: Frost & Sulivan

ThepriceofSiCsubstrateswilcontinuetodeclineinthefuture,mainlydrivenbytwofactors.First,thereductioninunitdiecostbroughtaboutbyongoingimprovementsand

advancementsinbothtechnologyandproceses.AstheyieldinlinksuchasSiCcrystalgrowthimprovesandthesubstratesizexpands,theunitcostofeachdevicewil

continuetodecrease.Second,economiesofscale.WiththecapacityexpansionofleadingSiCsubstratemanufacturersglobaly,especialyinChina,theseleading

manufacturersdemonstratesignificanteconomiesofscaleinaspectsuchascost-sharing,productionautomationandprocesoptimization,suplychainprocurement,and

technologyacumulation,thusdrivingdownthepriceofsubstrates.ThedeclineinsubstratepriceswilpromotetheadoptionofSiCsubstratesinmoredownstreamscenarios.

DecreaseinUnitProductionCostsandEmergenceofEconomiesofScale,PromotingtheAdoptionofSiliconCarbideSubstratesinMore

DownstreamScenarios

Withtechnologicalprogresandcapacityexpansion,especialytheR&Dandproductionof8-inchsubstrates,industrymanufacturerswilwitnesmorecapacityrelease,

promotingcostreductionandqualityimprovementofsiliconcarbideandaceleratingitsaplication.Athesametime,marketcompetitionisbecomingincreasinglyfierce.

Manufacturerswithoutechnologicalandscaleadvantageswilfacesignificantlimitationsintechnologicalupgrading,productyieldimprovement,productioncostreduction,

andcontinuousR&Dinvestment.Somemanufacturersmaywithdrawfromthemarketduetoalackofcompetitiveadvantages.However,leadingenterpriseswith

technologicalandscaleadvantageswilwininthecompetitionandcontinuetomaintaintheirleadingpositions.

ContinuousCapacityExpansionofManufacturerswithObviousHead-efect

SiCSubstrate Price 000’ RMB/Piece	2020	2021	2022	2023	2024	2025E	2026E	2027E	2028E	2029E	2030E
Price Range	4.4-6.4	4.0-6.0	3.6-5.6	3.3-5.3	2.7-4.7	2.4-4.4	2.3-4.3	2.3-4.3	2.3-4.3	2.3-4.3	2.3-4.3

000’ RMB/Piece	2020	2021	2022	2023	2024	2025E	2026E	2027E	2028E	2029E	2030E
Graphite Parts	2.7-3.7	5.0-6.0	6.5-7.6	5.0-6.0	5.2-6.2	5.4-6.4	5.6-6.6	5.8-6.8	6.0-7.0	6.2-7.2	6.4-7.4
Graphite Felts	7.3-8.3	10.6-11.6	17.5-18.5	13.1-14.1	14.1-15.1	15.1-16.1	16.1-17.1	17.1-18.1	18.1-19.1	19.1-20.1	20.1-21.1

Overview of Global Silicon Carbide Substrate Market

Price and Cost Analysis

Source: Frost & Sulivan

ThemarketpriceofglobalSiCsubstrateshasexperiencedeclinebetwen2019and2024,mainlydrivenbyfactorsuchasincreasedmarketcompetition,costoptimization

duetotechnologicalmaturity,andgradualexpansioninproductioncapacity.Inthefuture,withtheaceleratediterationofSiCsubstrateproductsandthecontinuousrisein

demanduetothefastdevelopmentofdownstreamaplications,thepricedeclineforsubstratesofthesamesizeisexpectedtogradualynarow.

AnalysisoftheUnitPriceofGlobalSiCSubstrates

ThemajorupstreamrawmaterialsforSiCsubstratesincludesiliconpowder,carbonpowder,graphiteparts,graphitefeltsusedforsubstratepreparation,aswelasdiamond

powder,polishingfluid,polishingpads,etc.usedforpost-procesingprocedures.InthetotalcostcompositionofSiCsubstrates,carbonpowderandsiliconpowder,which

directlyformthesubstrate,usualyacountforarelativelylowproportionasrawmaterials.Thepricesofcarbonpowderandsiliconpowderarehighlypositivelycorelated

withtheirpurity.Higherpuritymeansmorecomplexpreparationprocesesandcostinputs,resultinginhigherprices.Fluctuationsinthepricesoftheserawmaterialshavea

relativelylimitedimpactontheoveralcostofSiCsubstrates.GraphitepartsandgraphitefeltsacountforarelativelylargeproportioninthecostofSiCsubstrates.However,

graphitepartsandgraphitefeltsaremostlycustomizedproducts,andtheirpricesdependonvariousfactors.

AnalysisofPriceChangesofMajorUpstreamRawMaterialsforGlobalSiCSubstrates

Overview of Global Silicon Carbide Materials and Aplications Market1

Overview of Global Silicon Carbide Substrate Market2

Competitive Landscape of Global Silicon Carbide Substrate Market3

The Top Five Global Silicon Carbide Substrate Manufacturers, in terms of Sales Revenue (2024)
Ranking	Manufacturers	Revenue of SiCSubstrates (RMB Billion)	Market Share (%)
1	Company A	2.07	23.5%
2	SICC	1.5	16.7%
3	Company B	1.0	11.3%
4	Company C	0.9	10.4%
5	Company D	0.5	6.1%
CR5		6.0	68.0%

Competitive Landscape of Global Silicon Carbide Substrate Market

Overview of the Competitive Landscape

Source: Frost & Sulivan

Therearenumerousparticipantsintheglobalsiliconcarbidesubstratemarket.However,thecompetitionlandscapeisdominatedbyafewleadingenterprises,whichave

significantadvantagesintermsoftechnologicalstrength,productionscale,brandawarenes,andrecognition.Intermsofthesalesrevenueofsiliconcarbidesubstrates,thetotalmarket

shareofthetopfivemarketparticipantsin2024was68.0%.Themarketconcentrationisrelativelyhigh,withleadingenterprisestakingadominantposition.

The Top Five Global Silicon Carbide Substrate Manufacturers, in terms of

Sales Revenue (2024)

23.5%

16.7%

11.3%

10.4%

6.1%

32.0%

Company A

SIC

Company B

Company C

Company D

Others

Competitive Landscape of Global Silicon Carbide Substrate Market

Key Suces Factors and Entry Bariers of the Global Silicon Carbide Substrate Market

Source: Frost & Sulivan

ThepreparationofSiCsubstratesisatechnology-intensiveproces,involvingmultipletechnicalchalenges.Firstly,thegrowthofSiCcrystalsmustbecariedoutinahigh-

temperatureandairtightenvironmentexceding2000°C,whichrequiresextremelyhighprecisionintemperaturecontrol.Secondly,duringthegrowthproces,parameters

suchasthesilicon-carbonratio,temperaturegradient,crystalgrowthrate,andgasflowpresurenedtobepreciselycontroledtoavoidcrystalformtransformationand

polytypeinclusiondefects.Inadition,theprocesingofSiCsubstratesisdificult.Reducingthemicropipedensityisakeytechnicaldirectionforimprovingdevice

performanceandreliability.Withtheincreaseinsubstratesize,thechalengesofdiameter-expansiontechnologyalsoincrease,whichrequirescomprehensivetechnical

controlinaspectsuchasthermalfieldesign,structuraldesign,andcrystalpreparationprocesdesign.Thesetechnicaldificultiesjointlyformthehigh-techbariersofthe

SiCsubstrateindustry.

TechnicalKnow-how

TheSiCsubstrateindustryposeseverechalengestonewentrantsduetoitshighresourcebariers.Thesechalengesincludeinvestmentinequipmentsuchascrystalgrowth

furnacesandprocesingmachinery,aswelasthecontinuousR&Dcapitalinvestmentrequiredtomaintaintechnologicaleadershipandensureproductquality.Inadition,

thehighentrythresholdforformingprofesionalmanagementandR&Dteams,andthetechnicalbariersinpreciselycontrolingmultipleparametersduringthecrystal-

growthprocestoensurecrystalqualityandstability,alincreasethedificultyofenteringtheindustry.Thelong-termverificationprocesofdownstreamcustomersleadsto

long-termcoperationbetwencustomersandexistingsupliers.Thishighcustomerstickinesmakesitdificultfornewentrantstocompeteformarketshare.Athesame

time,theintensificationofmarketcompetitionandthediversificationofdemandrequirenterprisestohavestrongR&Dcapabilitiesandproductionflexibilitytomethe

nedsofdiferentcustomers.Thesefactorsjointlyformthedificult-to-enterthresholdoftheSiCsubstrateindustry.

AdequateResources(Customers,Capital,Supliers,etc.)

Competitive Landscape of Global Silicon Carbide Substrate Market

Key Suces Factors and Entry Bariers of the Global Silicon Carbide Substrate Market

Source: Frost & Sulivan

Cost-controlcapabilityisakeycompetitivebarierintheSiCsubstrateindustrybecauseitinvolvesmultipleaspectsuchastechnologicalacumulation,equipment

investment,R&Dinvestment,productioneficiency,materialprocesingdificulty,marketaceptance,economiesofscale,andsuplychainmanagement.Newentrants,due

totheirlackofexperienceandresourcesintheseareas,finditdificultoachievecostoptimizationquickly.Earlyentrants,throughlong-termtechnologicalacumulation,

large-scaleproduction,andmaturesuplychainmanagement,havealreadyestablishedcostadvantages,putingnewentrantsunderhighercostpresureinmarket

competitionandmakingitdificultforthemtoreachthesamecost-controlevelasearly-stagenterprisesintheshorterm.

Cost-controlCapability

IntheSiCsubstrateindustry,achievinghigh-qualitymasproductionisofgreatsignificance.Itsproductionandprocesingarextremelydificultandrequirelong-term

industry-specificefortsandprofoundprocesexperienceacumulation.Ontheonehand,large-scaleproductionoflarge-sizedsubstratesfaceschalenges.Itisnecesaryto

designcompatiblequipmentinadvanceacordingtotheprocesesofdiferent-sizedproductsbasedonaforward-lokingstrategytoachieverapidproductionswitching,

andathesametime,kepupwithdownstreamdemandanditeratetheproces.Ontheotherhand,therearemanydificultiesinincreasingthefectivecrystal-growth

thicknes.Itisnecesarytovercometheimpactofthicknesandsource-powderconsumptiononthethermalfielduringthecrystal-growthproces,andalsoensurethe

consistencyofoutputfromalargenumberofproductionequipment.Furthermore,achievinglow-defectproductionisnoteasy.Product-relatedmeasurementindicatorsned

tobreakthroughthexistingindustrylevel,anditisquitedificultoachievezero-defectdelivery.Finaly,theinvestmentininteligentconstructionislarge,andthethreshold

ishigh.High-performanceinteligentequipment,profesionalpersonel,andmultiplesystemsarerequiredtoachievereal-timecontrolofproductionqualityandoptimization

ofmultiplelinks,soastoachieveahighautomationrate,highproduction-eficiencyimprovement,andhighoveralequipmenteficiency.Fornewentrants,itisdificulto

takeintoacountalaspectsandachievehigh-qualitymasproductionintheshorterm.Especialyforthemasproductionofautomotive-gradesiliconcarbidesubstrates,as

theyrequirebreakthroughsinmultipletechnicalbariersuchaslow-defectcontrol,thermalfieldstability,inteligentproduction,andautomotive-gradecertification,while

metingstringentreliabilityandconsistencyrequirements.

Glosary

Source: Frost & Sulivan

Table of Contents

Overview of Global Silicon Carbide Materials and Aplications Market1

Overview of Global Silicon Carbide Substrate Market2

Competitive Landscape of Global Silicon Carbide Substrate Market3

Overview of Global Silicon Carbide Materials and Aplications Market

Silicon Carbide Materials: Empowering the Critical Engines of Future Technology Revolution (1/2)

Source: Frost & Sulivan

Energy transition and artificial inteligence (AI) are two critical engines driving the future technology revolution. Building aworld of growth, inovation, and

sustainability stands as the core objective of the advancement and integrated development of energy transition and AI technologies. Silicon carbide

materials have emerged as one of the cornerstones empowering energy transition and AI to achieve their core development goals.

Silicon carbide materials serve as the “energy eficiency multiplier” for empowering energy transition.

•Energy transition refers to the global shift of the energy structure from traditional fosil fuels to clean and renewable energysources such as solar and

wind energy. It also emphasizes improving energy eficiency through technological advancements, which is a crucial strategy for achieving global

“carbon neutrality.” For energy suply, energy transition emphasizes reducing reliance on fosil fuels and developing clean and renewable energy

sources like solar and wind energy. In 2024, renewable energy acounted for over 40% of the global total electricity generation,and this proportion is

expected to rise further in the future. The combined contribution of electricity generation from solar photovoltaics and windpower is projected to

reach 40% in 2035 and 60% in 2050. For energy consumption, the trend of electrification is driving the growth of electricity consumption demand and

changing the energy consumption structure. From 2020 to 2024, the proportion of global electricity consumption in total global energy consumption

increased from 19.8% to over 20% and is expected to further increase to 23% in 2028. The increase in the total amount of electricity consumption

makes the conversion eficiency of electricity particularly crucial. It is estimated that by 2028, every 1% increase in the conversion eficiency of

electricity wil save 348.3 TWh of electricity anualy, equivalent to the anual power generation of more than 40 medium-sized nuclear power plants.

Improving the conversion eficiency of electricity is quite urgent.

•Thanks to the advantages of silicon carbide materials, such as high frequency, low los, high-voltage resistance, and high-temperature resistance, silicon

carbide power semiconductor devices can enhance the conversion eficiency of electricity in the generation and consumption, achieve a smaler system

size and higher power density, and also les demand for coling systems. They have become the “energy eficiency multipliers”infields such as new

energy vehicles, photovoltaic and energy storage system, power suply, and data centers, driving the energy system to transitiontowards low-

carbonization.

Overview of Global Silicon Carbide Materials and Aplications Market

Silicon Carbide Materials: Empowering the Critical Engines of Future Technology Revolution (2/2)

Source: Frost & Sulivan

Silicon carbide materials are an inevitable choice for the growth and inovation of the AI industry.

•Silicon carbide materials enable the AI industry to adres power suply chalenges. As a transformative foundational technology, AI is leading the

development of the fourth industrial revolution. Curently, AI is being integrated into various aspects of industries and people’s daily lives, exerting

a profound impact on human development. With the advancement of large language model technology, generative AI has stronger reasoning and

inteligent capabilities, further acelerating the rapid penetration of AI. The explosive growth of AI wil reshape the global power landscape. AI

model training and inference highly rely on the suply of masive computing power resources, and high computing power demandsmean high

power consumption. Compared with traditional software aplications, AI aplications consume more power. Taking search Q&A as an example, the

power consumption of a single ChatGPT question-answering is 6-10 times that of a single Gogle search. As an important infrastructure suporting

the development of AI, data centers are expected to acount for 10% of global power consumption by 2030. Compared with traditional silicon-

based power semiconductor devices, silicon carbide-based power semiconductor devices can provide higher power conversion eficiency and higher

power density. The aplication of silicon carbide-based power semiconductor devices in data centers is an inevitable choice to aleviate the global

power suply chalenges for AI and achieve the low-carbonization of data centers.

•On the other hand, silicon carbide materials empower the inovation of AI-enabled smart products. The development of AI technology continuously

gives rise to inovations in AI-enabled smart products, which in turn create aplication oportunities for new materials represented by silicon

carbide. For example, silicon carbide materials are aplied to the inovation of AI glases. AI glases are smart glases integrated with artificial

inteligence technology. They can acquire environmental information in real-time, analyze data, and provide inteligent fedbackor services

acording to users’ neds. They can also achieve visual interaction through the integration of display technology. The refractive index of silicon

carbide materials is significantly higher than that of high-refractive-index glas, lithium niobate, and other materials. The aplication of silicon-

carbide-based optical waveguides in AI glases can achieve a larger field of view and a simpler structured ful-color display. This can reduce the size,

weight, manufacturing cost, and complexity of AI glases, and significantly enhance the user experience. The aplication of silicon carbide materials

wil directly promote the large-scale comercialization of the global AI glases market. AI glases are expected to replace smartphones as the next-

generation inteligent terminal and computing platform for individual users.

Overview of Global Silicon Carbide Materials and Aplications Market

Introduction to Silicon Carbide Materials: Key Fundamental Materials Empowering Energy Eficiency Improvement and

Smart Product Inovation

Source: Frost & Sulivan

Overview of Global Silicon Carbide Materials and Aplications Market

Advantages of Silicon Carbide over Traditional Materials in Diferent Aplication Fields

Source: Frost & Sulivan

Overview of Global Silicon Carbide Materials and Aplications Market

Silicon carbide materials take the lead in promoting the transformation of the semiconductor industry, and are begining to

replace and complement silicon-based technologies in more fields

Source: Frost & Sulivan

Elemental semiconductors: Silicon (Si),

Compound semiconductors: Galium

Compound semiconductors: Silicon Carbide

Overview of Global Silicon Carbide Materials and Aplications Market

Data Metrics and Main Characteristics of Silicon Carbide and Silicon

Source: Frost & Sulivan

Overview of Global Silicon Carbide Materials and Aplications Market

Silicon carbide materials have broad market aplication potential in power semiconductor devices, radio-frequency

semiconductor devices, and emerging aplication fields

Source: Frost & Sulivan

Overview of Global Silicon Carbide Materials and Aplications Market

Source: Frost & Sulivan

SiC Power Devices -Overview

Overview of Global Silicon Carbide Materials and Aplications Market

Introduction of Power Semiconductor Devices and SiC Power Semiconductor Devices