The overall WFE (Wafer Fab Equipment ) SiC manufacturing tool market is expected to peak at $5 billion by 2026 because of massive capacity expansion.
In view of the growing SiC device revenue forecast, players have been investing significant amounts in advance.
The intrinsic properties of SiC material require specific tools and processes.
Transition from 6” to 8” is also a key driver of investment in Power SiC.
Investments and expansions at device, epiwafer, and wafer levels are driving growth in the multi-billion dollar SiC power market.
Device manufacturers are constructing facilities in various regions.
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.
“As of 2024, the primary method for producing SiC wafers is PVT (Physical Vapour Transport) representing a market of over US$2 billion,” says Yole’s Taha Ayari, “the SiC powder market, essential for wafer production, is anticipated to exceed US$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 (Metrology & Inspection) 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.
“The overall SiC manufacturing tool market is forecast to grow at a 6,5% CAGR from 2023 to 2029, exceeding US$4.4 billion by 2029,” says Yoke’s Taguhi Yeghoyan, “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
