SiC power equipment manufacturing

SiC wafer production, crucial yet limited, has seen significant expansion, particularly in China, prompting substantial equipment orders. This is leading to questions about the dynamics of the SiC manufacturing tool market.

In this dynamic context, Yole Group confirms its leadership in analysing the compound semiconductor industry, especially SiC. In addition to its annual report, ‘Power SiC’ and its quarterly Monitor, ‘Power SiC/GaN Compound Semiconductor Market Monitor’, the company has released a new report on the SiC industry: ‘Power SiC - Manufacturing 2024’.

In this latest study, Yole Group’s analysts provide a comprehensive understanding of the power SiC equipment market from powder to the bare die, market forecasts, technology trends, and supply chain analysis. They also identify the challenges of power SiC processing for various SiC devices, establish SiC chipmakers’ overall CapEx, and discuss how it influences SiC device revenue and WFE expenditure. In addition, this report also provides an understanding of SiC powder suppliers.

Taha Ayari, PhD.Technology and Market Analyst, Semiconductor Substrates and Materials, at Yole Group: “As of 2024, the primary method for producing SiC wafers is PVT, representing a market of over $2 billion. The SiC powder market, essential for wafer production, is anticipated to exceed $36 million by 2029. Both PVT tool and powder markets are mainly captive and largely controlled by players ensuring quality in-house.”

The unique properties of SiC require specialised manufacturing tools and lines for processing power SiC devices. The epitaxy equipment market is forecast to generate a cumulative $4.3 billion in revenue from 2024 to 2029, while the SiC ion implanter market is projected to generate $4.9 billion over the same period.

Equipment such as diffusion furnaces and thermal oxidation machinery, are expected to generate $1.4 billion in revenue over the next five years. M&I tools are vital for detecting defects during SiC wafer/epiwafer and device processing, with an anticipated cumulative revenue of $5.7 billion from 2024 to 2029.

Additional tools contributing to the expanding SiC market include burn-in testing, patterning, wafer bonding, thinning, and CMP tools.

Taguhi Yeghoyan, PhDSenior Technology and Market Analyst, Semiconductor Equipment at Yole Group: “The overall SiC manufacturing tool market is forecast to grow at a 6,5% CAGR from 2023 to 2029, exceeding $4.4 billion by 2029. While critical WFE equipment drives the market, the overall revenue follows CapEx trends, with 50–60% per year.”

CapEx for SiC boule growth equipment, front-end and back-end processes, packaging, and infrastructure is expected to peak in 2026, with SiC device revenue exceeding overall CapEx in 2027.

Considering the projected increase in SiC device revenue, market players are ramping up investments. In 2023, global CapEx in the power SiC sector was double that of the SiC device market. In parallel, the transition from 6” to 8” platform is driven the growth of CapEx in the next years. And CapEx is expected to peak in 2026, with various players expanding their capacities. China stands out as a major player in the power SiC arena, capturing over a third of the SiC wafer and epiwafer market in 2023. However, despite the active equipment capabilities in China, Chinese device players may need time to establish a significant market share.