Market Trends of SiC Wafer Industry
Radio Frequency (RF) Segment to Witness Major Growth
- The exceptional electronic and thermal characteristics of silicon carbide (SiC) render it exceptionally suitable for cutting-edge high-power and high-frequency semiconductor devices that surpass the capabilities of both silicon and gallium arsenide devices. SiC-based technology offers significant benefits such as minimized switching losses, enhanced power density, superior heat dissipation, and expanded bandwidth capability. This leads to significantly condensed solutions with greatly enhanced energy efficiency at a lower expense at the system level.
- Moreover, the market is expected to be driven forward by the increasing utilization of SiC technologies in various commercial applications, such as RF power amplifiers in 5G wireless base station antennas and other high-performance RF applications. Additionally, the growing usage of SiC devices in cellular base stations and radio-frequency operations and the supportive government regulations promoting the use of renewable energy resources for power generation are expected to contribute to market growth.
- Silicon carbide finds its application in the manufacturing of radio frequency devices, including amplifiers and mixers, owing to its exceptional electron mobility and impressive breakdown electric field strength. These characteristics render it highly suitable for high-frequency applications where conventional materials may not suffice. RF semiconductors are extensively utilized in the fields of telecommunication, aerospace, automotive, and defense. The utilization of RF semiconductor electronics extends beyond phase shifters, attenuators, couplers, filters, amplifiers, switches, oscillators, and antenna tuners, encompassing a wide range of circuits.
- Moreover, the demand for SiC wafers is increasing worldwide owing to the global 5G wireless connection deployment. According to 5G Americas, by 2027, 5G connections will reach 5.9 million, which is likely accelerating, boosting the need for RF power amplifiers that may function efficiently in new high-frequency bands on a technology platform that can expand to meet demand.
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Asia-Pacific Holds the Largest Market Share
- Asia-Pacific is a major market for silicon carbide wafers. Government policies have also helped the region because of its dominating position in the global semiconductor market. Moreover, the region's semiconductor industry has been driven by Taiwan, India, China, Japan, and South Korea. These countries make up a considerable share of the global market for semiconductors, while other countries such as Thailand, Vietnam, Singapore, and Malaysia have also contributed significantly to the dominance of the region.
- Moreover, global chip sales of Chinese companies are rising, largely due to rising US-China tensions and nationwide efforts to develop China's chip sector, including government subsidies, purchasing preferences, and other preferential measures.
- The Asia-Pacific region is also a huge market for renewable power energy, especially solar and wind. The national governments are also playing a vital role in the adoption of solar infrastructure in the region, thereby boosting the market growth in the region. For instance, India ranks fourth in the overall renewable energy sector as per the Ministry of New and Renewable Energy. At COP26, the country set an expanded target of 500 GW of non-fossil fuel energy by 2030. This was an important obligation under Panchamrit. It is the world's largest expansion plan for renewable energies.
- Moreover, the installed solar energy capacity has increased 30 times in the last nine years and stood at 72.31 GW as of November 2023. SiC, which forms a critical element in power electronics devices like inverters, finds many applications in the renewable energy sector, such as delivering energy from photovoltaic (PV) arrays to the electric grid. As such, the booming renewable energy industry in the region presents huge growth potential for the market.
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