Looking back at 2024, the silicon carbide (SiC) and gallium nitride (GaN) industries have made significant progress in multiple fields and undergone important changes. Looking ahead to 2025, the industry will also face new opportunities and challenges.
01
SiC demand is influenced by multiple factors, but market opportunities continue to expand
Semiconductor Insider: According to estimates from Expert Research, the SiC power semiconductor market is expected to grow by around 14% year-over-year in 2024, a slower rate than last year. What do you think are the main reasons behind the significant fluctuation in SiC demand?
Francesco MUGGERI: The fluctuation in SiC demand can be attributed to various factors. First, the rapid adoption of SiC in automotive electrification and renewable energy projects has led to a temporary saturation of SiC production capacity. In addition, supply chain constraints and capacity limitations have affected the industry’s ability to consistently meet market demand. Macroeconomic conditions and varying government incentive policies are also key factors influencing changes in demand for SiC power semiconductors. While EV market growth has slowed in some regions, the long-term outlook remains optimistic, with global sales of battery electric vehicles and plug-in hybrids continuing to grow, supported by increasingly strong EV regulations.
Semiconductor Insider: If you had to summarize the development of the SiC industry in 2024 with three keywords, which would you choose?
Francesco MUGGERI: Maturity, innovation, and expansion.
Semiconductor Insider: Despite entering a period of adjustment in 2024, the SiC industry also had some development highlights. What new progress do you think the industry made this year, and what are the future development directions for SiC?
Francesco MUGGERI: In 2024, the SiC industry made significant progress in process technology and production efficiency. Major highlights include the transition to 8-inch wafers, which offer increased capacity and lower cost, and the development of more efficient SiC devices for high-performance applications.
The future direction of the SiC industry includes further improving manufacturing processes, expanding SiC applications in sectors like industrial power and renewable energy, and continuing to innovate to enhance product performance and reliability. The penetration of SiC devices in the EV and hybrid markets is expected to increase further, driving sustained industry growth.
02
STMicroelectronics 8 inch SiC plant capacity release achieves dual breakthroughs in technology iteration and scale effects
Semiconductor Insider: As competition in the SiC industry intensifies, how do you view changes in the competitive landscape? What are the main challenges and opportunities?
Francesco MUGGERI: The competitive landscape in the SiC industry is changing rapidly, with more new players entering the market and established companies ramping up capacity. Key challenges include maintaining cost competitiveness, ensuring supply chain resilience, and keeping up with technological advancements.
These challenges also bring opportunities for technological innovation, strategic partnerships, and market expansion. Companies that can effectively scale operations and offer high-quality, cost-effective SiC solutions will gain a competitive edge. STMicroelectronics is fully prepared to meet these challenges and seize opportunities by leveraging our extensive experience and strong market presence.
Semiconductor Insider: The price war in the SiC industry is heating up. How does your company balance cost control, high quality, and stable supply?
Francesco MUGGERI: STMicroelectronics controls product costs through multiple strategies while maintaining high quality and ensuring stable supply. We invest in advanced manufacturing processes and automation to improve production efficiency and reduce costs. Our vertically integrated supply chain strategy allows us to control the entire supply chain from raw materials to finished products, ensuring product quality and reliability. In addition, we maintain strong relationships with key suppliers and continually optimize our logistics and warehousing management to ensure stable SiC product supply. The joint venture factory between STMicroelectronics and Sanan in Chongqing will further strengthen our capacity to meet the growing demand for SiC devices in the Chinese market.
To better support the growing demand in China for EV electrification and industrial energy and power management applications, ST and Sanan have invested in establishing an 8-inch SiC power device manufacturing joint venture in Chongqing (Sanan STMicroelectronics Co., Ltd.). The plant is expected to begin production in Q4 2025 and reach full completion by 2028. It will use ST’s proprietary SiC manufacturing process and serve as ST’s dedicated wafer foundry to meet the needs of Chinese customers.
03
8 inch SiC leads industry transformation, AI and energy storage markets grow rapidly
Semiconductor Insider: What is your view on the development of 8-inch SiC, and how is your company positioned in this area?
Francesco MUGGERI: The move to 8-inch SiC wafers marks a major milestone for the silicon carbide industry. Compared to smaller wafers, larger wafers offer higher yields and lower manufacturing costs. STMicroelectronics is at the forefront of this development, currently investing in building 8-inch SiC capacity. Our manufacturing facilities are equipped to handle the wafer size transition and enhance the supply capability of SiC products to meet the growing demand for high-performance SiC solutions. The joint venture between ST and Sanan in Chongqing will play a key role in building a complete localized 8-inch SiC supply chain in China, further solidifying our market position.
Semiconductor Insider: What markets or development goals will your company focus on in 2025?
Francesco MUGGERI: In 2025, STMicroelectronics will focus on expanding in key markets such as industrial power, renewable energy, and high-performance computing. Our development goals include advancing SiC and GaN technologies, enhancing computing capabilities for digital and AI applications, and continuing to innovate in power management solutions. We aim to leverage ST’s expertise in power semiconductors to drive revenue growth and provide cutting-edge solutions to meet the evolving needs of customers across industries. The rapid growth of AI applications and energy storage systems brings new opportunities for SiC and GaN technologies, and we are well-positioned to capitalize on them.
Source: Internet
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