SiC-On-Insulator and Other Substrates Market Size and Share

Updated on : October 22, 2024

SiC-On-Insulator and Other Substrates Market Size & Growth

The SiC-on-insulator and other substrates market size is estimated to be worth USD 99 million in 2024 and is projected to reach USD 149 million by 2029, growing at a CAGR of 8.5% between 2024 to 2029.

The surging demand for power devices and thermal management solutions is a major driver contributing to the market growth of SiC-on-insulator and other substrates. This is attributed towards the growing requirement for electrical and thermal conductivity which can be achieved through the integration of SiC wafers. Additionally, the growing adoption of SiC substrates in electric vehicles is attributed towards the increasing need for high power densities, fast charging, extended driving ranges and reduced overall system-level cost of ownership, thereby contributing towards the market growth of SiC-on-insulator and other substrates globally

SiC-On-Insulator and Other Substrates Market Forecast to 2029

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SiC-On-Insulator and Other Substrates Market Trends:

Driver: Surging demand for power devices and thermal management solutions

The ongoing technological advancements, growing demand for consumer and automotive electronics, surging need for renewable energy expansions and industrial automation drives the demand for power devices and thermal management solutions. The increasing demand for SiC wafers in power devices and thermal management solutions is attributed to the growing requirement for electrical and thermal conductivity, which makes them highly suitable for diverse applications. Therefore, the surging demand for power devices and thermal management solutions is expected to drive the market growth of SiC-on-insulator and other substrates.

Restraint: High costs of SiC Substrates

The high costs associated with SiC substrates hinder the growth of SiC-on-insulator and other substrates market. The costs involved in producing SiC substrates can be a limiting factor for the widespread adoption of SiC-on-insulator technology. The production costs of SiC substrates are influenced by various factors such as prices of raw materials, energy consumption during the production process, and the complex manufacturing methods involved in creating SiC substrates. The initial high costs of SiC substrates can impact the overall cost-effectiveness of SiC-on-insulator solutions which makes them less accessible or economically viable for certain applications, which hinders the market adoption of SiC-on-insulator technology.

Opportunity: The escalating need for SiC-on-substrates based photovoltaic systems

Various SiC polytypes such as 4H-, and 6H- are emerging as attractive photonic materials. Recently, SiC has gained significant attention in the field of photonics due to its unique photonic properties such as low towo-photon absorption and optical transparency, there is a presence of a growing demand for advanced SiC-on-insulator and SiC based platforms to cater to the photonics applications. These advanced platforms have the potential to be used in the manufacturing process of large-scale integration of linear, nonlinear optical systems, quantum devices and integrated quantum photonic circuits. As a result, SiC-on-insulators and other substrates in photonics industry are an emerging market.

Challenge: Process complexities related to SiC-on-insulator and other substrates

Crucial factors such as the fabrication process, material properties, and thermal conductivity in SiC-on-insulators poses challenges in the manufacturing process of SiC-on-insulator devices. Moreover, production of SiC products is expensive which contributes towards the overall expense of manufacturing SiC-on-insulator substrate. Complexities can arise in the fabrication process of manufacturing SiC-on-insulator due to aspects such as ion-cutting, layer transferring, and wafer bonding of crystalline SiC to create an integrated photonic material platform. Moreover, material properties, particularly the requirement for high-quality amorphous silicon carbide deposited at low temperatures for effective hybrid photonic integration, are critical considerations which may impede the market growth of SiC-on-insulator and other substrates.

SiC-On-Insulator and Other Substrates Market Ecosystem

The prominent players in the SiC-on-insulator and other substrates market are Wolfspeed, Inc. (US), SICC Co., Ltd. (China), SOITEC (France), Coherent Corp. (US), GlobalWafers Co., Ltd. (Taiwan). These companies perform organic and inorganic growth strategies to expand themselves globally by providing SiC-on-insulator and other substrates.

SiC-On-Insulator and Other Substrates Market Segmentation

Conductive SiC substrates to register the highest CAGR in the SiC-on-insulator and other substrates market during the forecast period.

The presence of several companies such as Wolfspeed, Inc. (US), Coherent Corp. (US), SOITEC. (France), SICC Co. (China), Ltd., and Xiamen Powerway Advanced Material Co., Ltd. (China) offer conductive SiC substrates that are extensively used in power devices. Additionally, the growing implementation of SiC-on-insulator and other substrates in power electronics is expected to drive the market growth of conductive SiC substrates in the SiC-on-insulator and other substrates market.

Power devices held the largest market size in the SiC-on-insulator and other substrates market during the forecast period.

The unique properties of SiC enable the development of smaller devices that operate at higher voltages, switch faster, and run cooler. Moreover, SiC materials exhibit a significantly higher critical breakdown voltage than Si, which enables the creation of thin drift layers and higher doping concentrations. This results in lower on-resistance for a given die area and voltage rating, contributing to improved efficiency through decreased power loss in power devices. Therefore, power devices are expected to have the largest market size in the SiC-on-insulator and other substrates during the forecast period.

SiC-On-Insulator and Other Substrates Industry Regional Analysis

Asia Pacific held for the largest share of the SiC-on-insulator market in 2023.

Asia Pacific is expected to dominate the SiC-on-insulator and other substrates industry during the forecast period. The presence of established several key players companies such as SICC Co., Ltd. (China), TankeBlue (China) and Ruttonsha International Rectifier (RIR) (India), government-led initiatives for increasing the adoption of electric vehicles are the major factors driving the market growth in Asia Pacific.

SiC-On-Insulator and Other Substrates Market by Region

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Top SiC-On-Insulator and Other Substrates Companies - Key Market Players

The major players in the SiC-on-insulator and other substrates companies include

• Wolfspeed, Inc. (US),
• SICC Co., Ltd. (China),
• SOITEC (France),
• Coherent Corp. (US),
• GlobalWafers Co., Ltd. (Taiwan)

These companies have used both organic and inorganic growth strategies such as product launches, partnerships, agreements, collaborations, contracts, acquisitions, cooperations, and expansions to strengthen their position in the market.

SiC-On-Insulator and Other Substrates Market Report Scope

SiC-On-Insulator and Other Substrates Market Highlights

The study segments the SiC-on-insulator and other substrates market based on substrate type, application and region at the regional and global level.

Recent Developments in SiC-On-Insulator and Other Substrates Industry

• In May 2023, Wolfspeed, Inc. announced the establishment of a joint European R&D center with ZF Friedrichshafen AG, a global technology company that supplies systems for passenger cars, commercial vehicles, and industrial technology. This joint R&D center will provide SiC power electronics in the Nuremberg Metropolitan region. This joint European R&D center will focus on breakthrough innovations for SiC systems, products, and applications.
• In May 2023, SICC Co., Ltd. announced its agreement with Infineon Technologies AG, a semiconductor manufacturing company, to diversify the SiC material supplier base and have a competitive advantage over SiC sources. In this agreement, the company will supply its high-quality 150 mm wafers and boules to Infineon Technologies AG to manufacture SiC substrates.
• In December 2022, SOITEC and STMicroelectronics, a semiconductor contract manufacturing and design company, announced their cooperation in which STMicroelectronics’ client, Tesla Inc., will use SOITEC’s SiC substrate technology in the form of a bigger 200-mm wafer, which is underdevelopment.
• In October 2023, Coherent Corp. announced that DENSO CORPORATION, an automotive component manufacturing company, and Mitsubishi Electric Corporation, an electronics and electrical equipment manufacturing company, planned to invest about USD 1 billion in its silicon carbide business. Additionally, the company planned to enter a long-term supply agreement with these two companies to address 150 mm and 200 mm substrate and epitaxial wafer demand.
• In June 2020, GlobalWafers announced its collaboration with National Chiao Tung University (NCTU) to establish a compound semiconductor research center including 6″–8″   SiC and GaN technology to support crystal development for high-performance device applications on SiC and GaN materials.

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