Silicon carbide (SiC) power semiconductors are moving from niche applications to mainstream adoption in electric vehicles, driven by the need for higher efficiency, faster charging and extended driving range. Unlike traditional silicon-based insulated-gate bipolar transistors (IGBTs), SiC devices can operate at higher voltages and temperatures, reducing energy losses and enabling smaller, lighter power modules.
Leading EV manufacturers including Tesla, BYD and Hyundai have already introduced SiC inverters in mass-market models. Industry estimates suggest SiC content per EV could grow from around $250 today to more than $400 by 2028 as 800-volt architectures become standard. The total addressable market for automotive SiC is projected to exceed $15 billion by the end of the decade.
The supply chain is concentrated. Wolfspeed, Coherent and Rohm are the largest SiC substrate suppliers, while STMicroelectronics, Infineon and Onsemi dominate device manufacturing. Chinese companies such as SICC and TanKeBlue are rapidly expanding capacity to capture domestic EV demand, supported by government industrial policy.
However, the transition faces headwinds. SiC substrates remain expensive due to complex crystal-growth processes, and yield improvements have been slower than expected. Recent price cuts by Tesla and BYD are pressuring automakers to reduce SiC costs, which could delay margin expansion for substrate makers.
MetalSemi Asia favors vertically integrated SiC suppliers and equipment makers serving crystal-growth and wafer-processing steps. We see the sector as a long-term structural growth story, but near-term earnings volatility is likely as the industry scales.
