Introduction
Leading semiconductor companies are making significant investments in the next wave of silicon carbide (SiC) wafer manufacturing, with billions of dollars committed to establishing 8-inch SiC wafer fabs.
At least 14 new factories are planned or under construction worldwide, aiming to meet the growing demand for SiC-based power electronics.
These facilities are expected to come online between 2025 and 2027, spearheading a transformation in the global semiconductor landscape.
Market leaders such as STMicroelectronics, Onsemi, Infineon, and Wolfspeed are driving these initiatives, focusing on technological advancements and upstream material improvements.
Key Highlights
- Major investments from top semiconductor companies are fueling the expansion of SiC wafer fabs.
- At least 14 new 8-inch SiC fabs are planned or under construction worldwide.
- The new factories are expected to start production between 2025 and 2027.
- Companies aim to address the rising demand for SiC in power electronics and electric vehicles (EVs).
- Leaders like STMicroelectronics, Onsemi, Infineon, and Wolfspeed are at the forefront.
Global Expansion of 8-Inch SiC Factories
The semiconductor industry is witnessing a significant shift towards SiC technology, driven by the increasing demand for efficient power management solutions in electric vehicles, renewable energy, and industrial applications.
SiC, known for its superior electrical properties compared to traditional silicon, offers higher efficiency, faster switching speeds, and greater thermal stability.
These benefits make it ideal for applications in electric vehicle powertrains, solar inverters, and other high-power electronics.
In response to these demands, semiconductor companies are ramping up their investments to establish large-scale 8-inch SiC wafer fabrication facilities.
The shift from 6-inch to 8-inch wafers boosts production volumes. It also lowers manufacturing costs.
This change is essential to meet growing market demands. Leading companies are expanding their production capacity. They are also improving upstream materials to raise SiC wafer quality.
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Production Timelines and Market Impact
The majority of these new factories are projected to start operations between 2025 and 2027. This timeline aligns with the anticipated growth in demand for SiC-based devices, especially from the electric vehicle (EV) sector.
Market forecasts suggest that the global SiC market could grow at a compound annual growth rate (CAGR) of over 20% through 2030, driven by the automotive, industrial, and energy sectors.
Why the Shift to 8-Inch SiC Wafers?
Transitioning to larger wafers, such as 8-inch, represents a significant technological upgrade for SiC production. Here’s why this shift matters:
- Increased Yield: Larger wafers enable the production of more chips per wafer, increasing the overall yield.
- Lower Costs: The cost-per-device decreases as the number of chips per wafer rises.
- Scalability: The 8-inch wafer fabs allow companies to scale production more efficiently to meet future demands.
- Enhanced Quality: The focus on upstream materials also ensures higher-quality SiC wafers with fewer defects.
- Industry Growth: Moving to 8-inch wafers aligns with the broader industry trend toward expanding SiC applications, particularly in power-intensive markets like automotive and industrial electronics.
Key Players Driving the SiC Revolution
STMicroelectronics
STMicroelectronics is one of the early adopters of 8-inch SiC technology.
The company has announced significant investments in new fabs and aims to strengthen its position in the automotive market, where SiC-based power modules are essential for EV applications.
ST’s strategy includes building new manufacturing facilities in Europe and Asia, which are slated to begin operations by 2026.
Onsemi
Onsemi is another major player investing heavily in expanding its SiC manufacturing capabilities.
The company recently announced plans for a new 8-inch SiC wafer fab in the United States, expected to start production in 2025.
Onsemi’s investment is part of a broader strategy to capture a larger share of the EV powertrain market, which relies on SiC technology for its efficiency and performance benefits.
Infineon
Infineon is expanding its SiC production footprint with a focus on catering to the automotive and industrial sectors.
The company’s new 8-inch SiC fab in Malaysia is expected to begin operations by 2027, with a significant portion of the output dedicated to automotive applications.
Infineon’s strategy involves not only expanding capacity but also enhancing its R&D efforts to improve SiC material quality.
Wolfspeed
As a leading SiC wafer supplier, Wolfspeed is doubling down on its investments in new fabs.
The company is constructing one of the world’s largest 8-inch SiC wafer facilities in the United States, with a projected start date of 2026.
Wolfspeed’s long-term strategy includes partnering with automakers and other industry leaders to drive adoption of SiC technology in various applications, particularly in electric vehicles.
SiC Technology: Meeting the Demand for EVs and Power Electronics
The electric vehicle market is one of the primary drivers of SiC adoption.
SiC-based devices offer superior performance for power conversion and charging systems in EVs, making them a key component in the push for higher energy efficiency.
As more automakers adopt SiC technology for inverters, onboard chargers, and powertrain systems, the demand for high-quality SiC wafers is expected to surge.
Renewable Energy Applications
Beyond automotive, SiC technology is gaining traction in the renewable energy sector.
Solar inverters, wind turbines, and energy storage systems require efficient power conversion solutions, where SiC’s high-voltage capabilities come into play.
The shift towards sustainable energy sources amplifies the need for robust semiconductor materials like SiC.
Technological Advancements in Upstream Materials
The drive towards establishing 8-inch SiC fabs is not solely about increasing capacity; it also involves advancing the quality of upstream materials.
Companies are investing in SiC substrate manufacturing, epitaxy, and other processes to ensure fewer defects and higher reliability in the final products.
By improving the material quality, semiconductor firms can enhance the performance and longevity of SiC devices, which is crucial for applications in high-power environments.
Epitaxial Growth and Substrate Innovations
Improving the epitaxial growth process and substrate quality is a priority for SiC manufacturers.
Companies are developing advanced techniques to produce defect-free SiC substrates, which are essential for the fabrication of high-performance power devices.
Innovations in this area could further lower production costs and improve device efficiency, making SiC technology more accessible to a broader range of applications.
Future Outlook: The Road to 2027 and Beyond
The global expansion of 8-inch SiC wafer fabs marks a significant turning point in the semiconductor industry.
More factories will start operating between 2025 and 2027. This expansion will boost the supply of SiC-based devices. Costs will drop, and adoption will speed up in key markets. The shift to 8-inch SiC production shows the industry’s dedication to meeting new demands. Power electronics, electric vehicles, and renewable energy sectors will benefit.
Challenges and Opportunities
The future for 8-inch SiC wafer production looks bright. But challenges remain. Companies must overcome technical issues like defect density, wafer quality, and yield. They tackle these problems through R&D, partnerships, and stronger supply chains.
The potential for SiC technology is enormous. Its applications go beyond automotive and energy. Industrial automation, telecommunications, and consumer electronics also stand to gain. As the industry evolves, SiC technology will help shape the future of power electronics.
Conclusion
The investments in new 8-inch SiC fabs represent a major leap forward for the semiconductor industry.
With at least 14 factories set to begin production by 2027, the stage is set for significant advancements in SiC technology.
Leading companies like STMicroelectronics, Onsemi, Infineon, and Wolfspeed are not only expanding their manufacturing capabilities but also driving innovations in material quality.
As demand for SiC-based power devices continues to grow, the global semiconductor landscape is on the verge of a transformative shift.
