Silicon carbide boule. (Source: MDPI)
By Bolaji Ojo
What’s at stake?
Silicon carbide device designers and wafer suppliers are shifting to a vertically integrated business model — and spending lavishly on capex — betting that demand will remain strong for power electronics in high-growth markets. If those sectors falter, SiC suppliers will be left holding billions of dollars in unused capacity and raw materials.
The silicon carbide supply chain is engaged in a delicate balancing act.
To continue satisfying demand — already strong and expected to skyrocket — SiC manufacturers are investing or promising to invest billions of dollars in new fabs and processes for a market still in its infancy. But it’s potentially problematic that the growth projections for SiC products are largely based on hope.