Core Insights - The power SiC market is undergoing a transformation, entering an adjustment period after unprecedented investment from 2019 to 2024, with a slowdown in the automotive market reducing demand and altering the supply chain [1] - Despite the market slowdown, SiC remains central to electrification, with device revenue expected to approach $10 billion by 2030 [1] - The first major investment cycle, driven by a surge in capital expenditure from 2019 to 2024, has led to significant overcapacity in upstream production, with utilization rates dropping to around 50% for upstream processes and 70% for device production lines by 2025 [1] - New capital expenditures are primarily concentrated in mainland China, which is expected to account for about 40% of SiC wafer and epitaxial wafer capacity by 2024 [1] Market Dynamics - The SiC device market is projected to grow at a compound annual growth rate (CAGR) of 23.9% from 2024 to 2030, driven by increased capacity and demand from electric vehicles and industrial applications [5] - Despite the economic downturn, IDM manufacturers continue to invest strategically in 200mm SiC capacity and advanced MOSFET architectures, maintaining global leadership [4] - The global landscape of SiC wafer and device production is shifting, with over 50% of wafer capacity expected to be located in China by 2025, while device capacity remains largely controlled by Western companies operating in Southeast Asia [8] Equipment and Supply Chain - The SiC value chain presents both challenges and opportunities for equipment suppliers, as most device processes can utilize silicon equipment, limiting demand for pure SiC equipment [12] - However, the unique properties of SiC maintain strong demand for upgrades and new systems, with significant revenue contributions from HTCVD and ion implantation equipment suppliers [12] - The transition of production capacity to Asia is reshaping the equipment ecosystem, with local suppliers rapidly expanding while international suppliers establish manufacturing and sales operations in Southeast Asia [8][7]