On one hand, we have major original equipment manufacturers struggling to "get on board" with core technologies, while on the other hand, there is insufficient production capacity for silicon carbide, leading to challenges in the upstream and downstream industrial chains. What is causing these issues?

"Currently, the bottleneck for further development of the silicon carbide industry lies primarily in silicon carbide substrates," according to industry insiders. If both front and rear drives of a car were equipped with silicon carbide devices, the cost would be 10,000 yuan, making electric vehicles priced below 200,000 yuan unaffordable. Therefore, the key to cost reduction for silicon carbide devices lies in lowering the substrate cost.

Public information reveals that silicon carbide substrates account for approximately 47% of the total device cost, while epitaxy accounts for 23% and pre-manufacturing costs make up a significant 70%. In contrast, in silicon-based devices, silicon wafers only contribute to 7% of the device cost, with the entire wafer manufacturing cost accounting for 50%. The high cost of silicon carbide substrates hinders the penetration of silicon carbide power devices in downstream applications.

So, how can we reduce the cost of silicon carbide substrates? As an integrated company covering the entire industry chain, improving crystal growth efficiency, enhancing crystal quality, reducing cutting losses, and localizing equipment and raw material supply chains are crucial approaches to cost reduction for substrates.

If the cost of silicon carbide substrates is significantly reduced, leading to a decrease in the price of silicon carbide devices, it would mean that a large number of new energy vehicles could utilize silicon carbide devices. This would expand the market size of silicon carbide, leading to further industry growth once this trend is established. The current period is therefore a critical phase for the development of the silicon carbide industry.

During this crucial period, the leading companies in silicon carbide substrates are striving to reduce costs and increase efficiency while significantly expanding production to seize market share.

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Silicon Carbide (SiC) Substrate