Core Insights - The silicon carbide (SiC) power market is undergoing significant changes, entering a necessary correction phase after an unprecedented investment wave from 2019 to 2024 [1][2] - Despite a short-term demand slowdown in the automotive market impacting the SiC supply chain, SiC remains a core technology in electrification, with device revenue expected to approach $10 billion by 2030 [1][2] Market Trends - By 2030, the SiC power device market is projected to reach nearly $10 billion [2] - Capital expenditures (CapEx) in 2023 peaked at approximately $3 billion, leading to noticeable overcapacity in the upstream SiC supply chain [2] - By 2025, upstream capacity utilization is expected to drop to around 50%, while device manufacturing utilization will be about 70% [2][5] Regional Developments - China has emerged as the largest region for SiC equipment capital expenditures, driven by policy support for localized procurement [5][6] - Chinese manufacturers have made significant progress in the PVT crystal growth and HTCVD epitaxy equipment sectors, although the overall equipment ecosystem has not yet achieved complete self-sufficiency [5][7] Equipment Ecosystem Outlook - The PVT (crystal growth) market is maturing, with 8-inch capabilities being established, but is expected to experience a compound annual growth rate (CAGR) of approximately -11% from 2024 to 2030 [11] - The epitaxy (HTCVD) market is led by European companies like ASM International and AIXTRON, with Chinese firms actively expanding their presence [11] - The wafer fabrication equipment (WFE) market is projected to maintain a CAGR of about -7% until 2030, driven by the need for specialized adaptations for SiC materials [11] Industry Adjustments - The SiC industry is recalibrating after a period of rapid expansion, with a focus on local supply chains and new device architectures defining the next growth cycle [12] - The current industry downturn is expected to last until 2027-2028, after which new growth momentum will primarily come from 8-inch production platforms and next-generation trench and superjunction MOSFET technologies [5][12]