Asia Pacific Silicon Carbide Market Outlook to 2030

Asia Pacific Silicon Carbide Market Overview

• The Asia Pacific Silicon Carbide Market was valued at USD 2.15 billion in 2023 This growth is primarily driven by the increasing demand for silicon carbide in the electronics and automotive industries, where it is used for its superior properties like high thermal conductivity, low thermal expansion, and ability to operate at high temperatures. The adoption of electric vehicles (EVs) and the need for efficient power electronics are significant contributors to this market's expansion.

• The key players in the Asia Pacific Silicon Carbide market include Cree, Inc., ON Semiconductor Corporation, Infineon Technologies AG, STMicroelectronics NV, and ROHM Co., Ltd. These companies dominate the market due to their extensive product portfolios, strong R&D capabilities, and strategic partnerships. They are continuously innovating to enhance the efficiency and performance of silicon carbide-based products, which has led to their leadership in the market.
• In early 2024, Wolfspeed and STMicroelectronics expanded their existing long-term silicon carbide wafer supply agreement, which is now valued at over $800 million. This agreement will facilitate the supply of 150mm silicon carbide wafers, crucial for meeting the increasing demand from automotive and industrial sectors, particularly as the market shifts towards electric vehicles (EVs) and renewable energy applications.
• IN 2023, Shanghai was dominating the market, due to the hub for electric vehicle (EV) manufacturing, with companies like NIO and Tesla operating large-scale production facilities in the region. The city's strategic location, advanced logistics networks, and proximity to key supply chains further enhance its position as the dominant city in the SiC market, enabling efficient production and distribution of SiC components to meet the growing demand in the automotive and electronics sectors across China and the broader Asia Pacific region.

Asia Pacific Silicon Carbide Market Segmentation

The Asia Pacific Silicon Carbide Market is segmented into different factors like by product type, by application and region.
By Product Type: The market is segmented by product type into Silicon Carbide Discrete Devices and Silicon Carbide Power Modules. In 2023, Silicon Carbide Discrete Devices was dominating the market due to its widespread application across various industries, particularly in power electronics, automotive, and industrial sectors. With the increasing demand for energy-efficient solutions in consumer electronics and renewable energy applications, this segment is expected to maintain its leading position in the market. In the automotive industry, these devices are critical components in electric vehicle (EV) powertrains, where they improve energy efficiency, reduce heat loss, and extend the driving range of EVs.

By Region: The market is segmented by region into China, South Korea, Japan, India, Australia, and Rest of APAC. In 2023, China was dominating the market, driven by several factors, including its extensive manufacturing capabilities, strong government support for the semiconductor industry, and a large consumer base for electric vehicles and electronics. Additionally, Chinas focus on renewable energy development and the deployment of smart grid technologies have further accelerated the demand for silicon carbide in the country.

By Application: The Asia Pacific Silicon Carbide Market is segmented by application into Automotive, Consumer Electronics, and Renewable Energy. In 2023, the Automotive segment held a dominant market share due to its attributed to the growing adoption of electric vehicles (EVs) across the Asia Pacific region. Silicon carbide is a critical component in EV power electronics, offering benefits such as reduced energy loss, increased efficiency, and enhanced performance. The rapid expansion of the EV market, particularly in China and South Korea, has driven the demand for silicon carbide in automotive applications.

Asia Pacific Silicon Carbide Market Competitive Landscape

Asia Pacific Silicon Carbide Market Major Players

• ON Semiconductor: In 2023, ON Semiconductor has significantly expanded its presence in the Asia Pacific silicon carbide (SiC) market, particularly through the completion of its new fabrication facility in Bucheon, South Korea. This facility, which is now the largest SiC wafer fabrication plant in the world, has an impressive production capacity of over one million 200 mm SiC wafers annually once fully operational. The expansion project began in mid-2022 and was completed in September 2023, which included the construction of a new 150 mm/200 mm SiC fab line and supporting infrastructure.
• Infineon Technologies: In August 2023, Infineon revealed plans to build the world's largest 200-mm SiC power fab in Kulim. This expansion is projected to have a total revenue potential of about 7 billion by the end of the decade, supported by customer commitments worth approximately 5 billion in new design wins for automotive and industrial applications.

Asia Pacific Silicon Carbide Market Analysis

Asia Pacific Silicon Carbide Market Growth Drivers

• Expansion of Renewable Energy Projects: The Asia Pacific region is aggressively expanding its renewable energy capacity, with over 180 gigawatts (GW) of new installations expected in 2024. With the aim of achieving a 500 GW capacity by 2030, it is anticipated that renewables will make up approximately 50% of the total installed capacity. Countries like China and India are leading in solar and wind energy projects, where SiC components are vital for efficient power conversion. This expansion is driving the SiC market as renewable energy projects require robust and efficient power electronics.
• Growth in Industrial Automation: The industrial automation sector in the Asia Pacific region is projected to grow significantly, with China and Japan leading the way. By 2024, the Asia Pacific industrial automation market is expected to reach substantial growth, driven by the manufacturing sectors adoption of automation technologies. SiC semiconductors are increasingly used in industrial automation systems for their ability to operate at high temperatures and voltages, enhancing the efficiency of robotic systems and machinery. This demand for automation is propelling the growth of the SiC market.
• Surging Demand for Electric Vehicles (EVs): The Asia Pacific region, particularly China, is witnessing exponential growth in the adoption of electric vehicles, driving significant demand for silicon carbide (SiC) components. SiC plays a crucial role in EV power electronics, enhancing energy efficiency and reducing heat dissipation in EVs, which extends their driving range and battery life. This surge in EV production is a direct consequence of governmental policies promoting clean energy vehicles, such as Chinas target to achieve 20 million new energy vehicles (NEVs) on the road by 2025.

Asia Pacific Silicon Carbide Market Challenges

• Limited Availability of Raw Materials: The availability of high-quality silicon carbide raw materials is a challenge for the market. In 2024, the global supply chain disruptions have exacerbated the scarcity of raw materials, with the Asia Pacific region facing delays in SiC wafer production. For instance, Chinas raw material production was affected by stringent environmental regulations, leading to a reduction in the supply of silicon carbide powder. This limitation in raw material availability is a significant challenge, impacting the production capacity and driving up the costs of SiC products.
• Competition from Alternative Materials: While SiC is recognized for its superior properties, it faces competition from other advanced materials such as gallium nitride (GaN). In 2024, the GaN market is expected to see a significant rise, with companies investing in GaN technology for power electronics applications due to its lower production costs and high efficiency. This competition poses a challenge to the SiC market, as manufacturers weigh the benefits of adopting SiC versus GaN, particularly in applications where cost sensitivity is a critical factor.

Asia Pacific Silicon Carbide Market Government Initiatives

• Indias Semiconductor Mission: The Indian government launched the "Semiconductor Mission" in 2021, with a budget of 76,000 crore(approximately USD 9.2 billion) to establish a robust semiconductor ecosystem, including SiC manufacturing. This initiative includes setting up SiC wafer fabrication units and research centers across the country. The mission aims to position India as a global hub for semiconductor manufacturing, reducing reliance on imports and supporting the domestic demand for SiC in automotive, electronics, and renewable energy sectors.
• South Koreas National Semiconductor Strategy: South Korea announced its National Semiconductor Strategy in 2024, with a planned investment of 26 trillion won(approx.USD 19 billion) to advance semiconductor technologies, including SiC. The strategy focuses on enhancing research and development capabilities, establishing new SiC production facilities, and fostering collaboration between industry and academia. This initiative is expected to strengthen South Koreas position in the SiC market, particularly in the automotive and electronics sectors.

Asia Pacific Silicon Carbide Market Future Outlook

The Asia Pacific Silicon Carbide Market is projected to grow exponentially by 2028. The future growth will be fueled by the continued adoption of electric vehicles, increased investments in renewable energy infrastructure, and advancements in semiconductor technologies. Additionally, government initiatives to promote green technologies and reduce carbon emissions will further bolster the demand for silicon carbide in the region.

Market Trends

• Growth in Industrial Robotics: The industrial robotics market in the Asia Pacific region is expected to grow significantly by 2028, with China and Japan leading the way. SiC semiconductors are increasingly being used in robotic systems due to their ability to operate at high temperatures and voltages, enhancing the efficiency and performance of robots. The adoption of SiC in industrial automation is expected to increase, driven by the need for more efficient and reliable robotic systems in manufacturing.
• Emergence of 5G and IoT Applications: The rollout of 5G networks and the proliferation of IoT devices in the Asia Pacific region are expected to drive the demand for SiC-based power electronics over the next five years. SiC components are crucial for managing the high-power requirements of 5G infrastructure and IoT devices. By 2028, the Asia Pacific region is expected to increase the no. of 5G connections, creating a significant market opportunity for SiC manufacturers.