SiC substrate market shows signs of recovery, driven by demand from vehicles, energy and AI infrastructure

DIGITIMES has observed that since Tesla equipped the Model 3 with a traction inverter integrated with SiC power modules in 2018, the application of SiC power devices in the electric vehicle (EV) sector has gradually expanded, prompting suppliers to aggressively ramp up capacity. However, as momentum in the EV market continued to weaken, demand for SiC power devices fell sharply, and substrate prices collapsed. With the EV market gradually recovering and renewable energy deployment expanding, the SiC substrate market is finally seeing signs of recovery. Meanwhile, the high-voltage direct current (HVDC) power architecture planned for AI data centers is also expected to further stimulate demand for SiC substrates.

SiC power devices not only withstand high voltage and high temperatures but also offer excellent thermal performance and greater flexibility in power module and mechanical design. After Tesla introduced SiC power modules in the Model 3, the EV industry followed suit. Chinese brands including BYD, NIO, Xpeng Motors, Li Auto and Xiaomi, as well as global automakers such as Porsche, Hyundai Motor Company, GM, BMW, Audi and Mercedes-Benz, have all adopted SiC power devices in EV traction inverters. By 2026, EVs are estimated to account for 65% of SiC device applications, making them the largest application segment.

This report covers the key applications of SiC substrates, their cost breakdown, major suppliers and their capacity expansion plans, and the size of the potential demand.