Growing Demand for SiC in EVs to Drive Significant Growth in 2025, Onsemi Reports

Onsemi

As the electric vehicle (EV) market continues its expansion, the demand for silicon carbide (SiC) devices is expected to accelerate, according to Onsemi’s third-quarter earnings report. While overall semiconductor demand for the period remained below expectations, SiC devices remain a high-growth segment, especially in electric vehicles, where penetration is still under 6%. With the growing adoption of 800-volt (V) designs in EVs, the company anticipates significant growth in SiC demand by 2025.

SiC's Role in Electric Vehicles

The shift from 400V to 800V charging architectures, which significantly reduces battery charging times by up to 50%, is driving the demand for SiC power devices. SiC devices offer higher energy density, increased efficiency, and reduced weight compared to traditional silicon devices, making them ideal for key EV components like traction inverters, on-board chargers (OBCs), and DC-DC converters. Onsemi’s president and CEO, Hassane El-Khoury, pointed out that nearly all new EV models introduced at the 2024 Beijing Auto Show were designed around 800V using SiC, signaling a growing market for this technology.

SiC Demand Growth Despite Market Slowdowns

Onsemi’s automotive revenue for Q3 2024 rose by 5% compared to the previous quarter, reaching $951 million. However, the company saw a year-on-year decline of 18% due to lower-than-expected EV sales. Despite this, El-Khoury noted that this slowdown is likely a short-term delay rather than a long-term trend. The company’s outlook for SiC in the automotive sector remains positive, with continued adoption in China expected to drive growth. Onsemi also noted that North America and Europe are experiencing softer demand, but industrial markets tied to EVs, aerospace, and utility-scale solar are showing some recovery.

Onsemi’s strategic focus on SiC remains strong, with expectations that demand for these devices will outpace overall automotive market growth, bolstered by their continued adoption across China, followed by other key markets like the US and Europe.

Looking Ahead: SiC as a Key Growth Driver

As EV adoption grows and the shift to 800V architectures becomes more widespread, SiC’s role in powering these vehicles will become even more critical. Onsemi is optimistic that the ramp-up in SiC adoption will continue through 2025, further solidifying its place in the global EV market. The company’s cautious outlook for Q4 2024, with expectations of up to 5% growth in automotive revenue for the full year, reflects confidence in the long-term potential of SiC devices, despite some short-term fluctuations in demand.

STMicro targets new sources of silicon chip demand

STMicro

STMicro is betting on new sources of silicon chip demand from AI data centres and advanced EV platforms. The company sees silicon and silicon carbide (SiC) devices as core growth engines, even as it trims some near-term capital spending. As a result, STMicro is repositioning its portfolio toward photonics, high-voltage power electronics and next-generation vehicle systems that can unlock new sources of silicon chip demand across several end markets.

Photonics and AI servers anchor new sources of silicon chip demand

STMicro is using silicon photonics to capture new sources of silicon chip demand from hyperscale AI data centres. In the third quarter, the firm reported rising orders for silicon photonics integrated circuit prototypes from its 300mm fabs. This confirms internal expectations that photonics ICs will become a meaningful revenue driver as AI server build-outs accelerate worldwide.

Meanwhile, the company is tightening its integration into the AI infrastructure ecosystem through the Starlight Consortium. The consortium connects substrate suppliers, device makers and system integrators to develop high-speed optical solutions for data centres, telecoms and automotive. In parallel, STMicro is collaborating with Nvidia on an 800V DC AI data centre architecture that combines SiC, gallium nitride (GaN) and silicon technologies. The firm has also demonstrated a GaN prototype with over 98pc conversion efficiency, underscoring how power density and efficiency now drive silicon chip demand as much as raw compute.

SiC, EV power electronics and a more selective capex strategy

STMicro is broadening SiC usage beyond traction inverters and onboard chargers to new power roles in active suspension inverters. This expands the addressable market in EVs just as advanced driver-assistance systems increase demand for sensors and control chips. However, weaker-than-expected EV programmes in Europe and China have delayed the full impact, forcing the company’s main automotive customer to cut orders.

Therefore STMicro is trimming near-term SiC capex as it transitions production from 150mm to 200mm wafers. The company will slow some investments in SiC conversion while maintaining its 300mm expansion plans in Agrate, Italy, and Crolles, France. These fabs continue to see solid order visibility, particularly for data-centre power modules and optical components. STMicro expects EV growth and SiC restocking to resume in 2026, once inventory drawdowns run their course and regional electrification policies translate into firmer demand.

The Metalnomist Commentary

STMicro’s push into photonics and SiC power devices shows how new sources of silicon chip demand are shifting toward AI infrastructure and complex EV systems. For the wider materials chain, this means sustained pull for high-purity silicon, SiC substrates and GaN epitaxy, even if near-term EV softness delays some projects. Suppliers that align with 300mm and 200mm wafer roadmaps and can support AI-class power densities will be best positioned as these new demand waves crystallise from 2026 onward.

Wolfspeed Secures $2.5B Funding to Expand Silicon Carbide Production in the US

Wolfspeed

Wolfspeed, a prominent US-based semiconductor manufacturer, is poised for significant expansion, targeting a $2.5 billion funding pool to boost its silicon carbide (SiC) production. This strategic move is aimed at addressing the surging demand from electric vehicle (EV) manufacturers and other industries reliant on SiC technology.

Key Funding Milestones

Wolfspeed has entered into a preliminary memorandum of terms (PMT) with the US Commerce Department, securing up to $750 million in direct funding under the Chips and Science Act. To meet the conditions for full funding, the company has also obtained $750 million in financing from a consortium of investment funds.

An additional $1 billion is expected in cash rebates through the advanced manufacturing tax credit provided by the Chips and Science Act. This credit allows companies to claim up to 25% of qualified capital expenditures, further bolstering Wolfspeed’s financial framework.

The funds will enable Wolfspeed to achieve two critical objectives:

Construction of a new SiC wafer manufacturing facility in Siler City, North Carolina.

30% expansion of its SiC power device production plant in Marcy, New York.

These projects are set to create the world’s largest 200mm SiC production footprint, serving key sectors such as automotive, industrial, and energy.

Supporting the EV Revolution

Silicon carbide is a pivotal material for the EV industry due to its superior efficiency in power conversion and thermal management. Wolfspeed’s expanded production capacity aims to solidify its leadership in the SiC market, addressing the rapidly increasing demand driven by global EV adoption.

Driving US Semiconductor Leadership

Wolfspeed’s ambitious initiatives align with the US government’s objectives under the Chips and Science Act, which seeks to strengthen domestic semiconductor manufacturing capabilities. These projects also underscore the growing importance of public-private partnerships in ensuring the US maintains its competitive edge in the global semiconductor industry.

With this funding in place, Wolfspeed is well-positioned to lead the SiC revolution, supporting advancements in clean energy, EV technology, and industrial applications.

Chipmakers Face Slower Automotive Demand in Q1 2025

Wolfspeed

Semiconductor Firms Anticipate Declining Auto Sales, With EV Growth Concentrated in China

Semiconductor companies like STMicroelectronics, Wolfspeed, and NXP are bracing for slower demand growth from the automotive sector in the first quarter of 2025. This reflects a broader decline in vehicle production outside of China, where the electric vehicle (EV) market continues to outpace the rest of the world.

Declining Automotive Demand and Growing EV Shift in China

NXP, based in the Netherlands, reported a 4% drop in its automotive revenue for 2024. This decline was attributed to "inventory digestion at western tier 1 customers" amid an uncertain automotive demand environment. The company expects further declines in automotive revenue for the first quarter of 2025. However, NXP’s revenue from China grew by 4%, highlighting an increase in semiconductor content in vehicles as Chinese automakers embrace electrification and software-defined architectures.

NXP's strategy for China, which it calls "China for China," involves producing devices at its Tianjin plant for sale to the Chinese market. According to NXP president and CEO Kurt Sievers, the growth is natural and structurally ongoing, especially in China where 50% of cars sold in the second half of 2024 were electric or hybrid. This rapid transition to EVs in China is fueling an above-average increase in the semiconductor content of vehicles.

STMicroelectronics, based in Switzerland, faces similar challenges and is prioritizing the transition from 150mm wafers to 200mm wafers, driven by demand for silicon carbide (SiC) semiconductors. SiC devices are crucial for the automotive sector, particularly for EVs. The company plans to start 200mm SiC semiconductor wafer production at its Shenzhen plant in the first half of 2026. STMicro reported that 2024 was one of the worst years in decades, with weaker demand in both the automotive and industrial sectors and a higher level of inventories.

In response to growing demand, STMicro is building a new facility in Catania, Italy, to supply western markets. Silicon carbide manufacturers are making the transition to 200mm to produce more devices per wafer, a move driven by increasing demand from the automotive sector. However, the industrial and energy (I&E) sector continues to show low semiconductor demand, forcing companies like STMicro to focus more on automotive sales.

Wolfspeed's Shift to Automotive and Growing Market Opportunities

Wolfspeed, a US-based company that has pivoted to focus on SiC wafers and devices, has seen its product mix shift from industrial and energy (I&E) applications to automotive. Wolfspeed is shifting production from its 150mm plant in Durham, North Carolina, to its new 200mm plant in Mohawk Valley, New York. The company expects its revenue split to shift to 70% automotive and 30% I&E as the transition progresses. Despite the shift, Wolfspeed acknowledges the slower-than-expected adoption of EVs, which has contributed to a weaker market environment for EV semiconductors.

Despite these challenges, Wolfspeed is well-positioned as a first mover in the 200mm transition and expects its automotive revenues to grow through a broad customer base. SiC demand from I&E applications is beginning to show signs of recovery, but visibility into the coming quarters remains uncertain.

The automotive sector continues to be a primary focus for semiconductor firms as demand from the industrial and energy sectors remains weak. With the increasing push for electrification, semiconductor companies are recalibrating their strategies, focusing on innovations like SiC wafer production and ramping up investments in manufacturing capacity to meet growing automotive demand.

Wolfspeed's Silicon Carbide Demand Surges with EV Transition to 800V Architecture

The global transition to 800V electric vehicle (EV) charging systems from the traditional 400V architecture is fueling a significant increase in demand for silicon carbide (SiC) power devices, according to US-based semiconductor manufacturer Wolfspeed. This trend has been a key driver behind Wolfspeed's strong quarterly revenue growth, despite a general downturn in the broader automotive semiconductor market.

Wolfspeed reported that its EV-related revenue more than doubled in the quarter ending June 30 compared to the previous year, and it is expected to increase by around 300% year-on-year in the upcoming quarter ending September 30. Electric vehicles accounted for approximately 50% of Wolfspeed's power device revenue in the most recent quarter, a substantial rise from 25% a year earlier. This percentage is projected to climb above 60% by the end of September.

Chief Financial Officer Neill Reynolds emphasized that while short-term EV adoption rates have been revised downward, the demand for SiC in EVs remains robust. The shift to 800V systems, which require higher power capabilities that SiC technology offers over conventional silicon devices, is a major factor driving this demand.

Industry experts predict that by 2027-30, over 90% of new EVs will utilize 800V systems. Reflecting this trend, approximately 70% of Wolfspeed's $2 billion in design-ins from the June quarter were linked to 800V applications. Many of the EV designs Wolfspeed has developed over the past 5-7 years are now moving into production, with around $500 million in new designs receiving approval for use during the last quarter. This backlog supports over 125 EV models across more than 30 original equipment manufacturers (OEMs) in the coming years.

While the automotive sector is leading the adoption of SiC technology, Wolfspeed’s President and CEO, Gregg Lowe, noted that high-voltage applications in energy markets, such as AI data centers, electric mobility, and solar inverters, are also expected to drive further demand in the coming years.

Wolfspeed is accelerating the transition of its power device production to 200mm semiconductors at its new Mohawk Valley facility in New York, where unit costs are lower compared to its 150mm device facility in Durham, North Carolina. The company expects to complete construction of its new JP Siler City materials factory by mid-2025, which will supply wafers to Mohawk Valley, aiming for 30% capacity utilization.

Although the Durham facility has been operating at reduced rates due to weaknesses in the industrial and energy markets, Wolfspeed is assessing the timing of the 150mm device fab's closure as production ramps up at Mohawk Valley. However, this shift does not alter the company’s long-term view that industrial and energy products will continue to be a substantial part of its portfolio, according to Reynolds.

Navitas Expects Surging GaN Demand in 2025 Driven by AI Data Centers and EV Markets

Navitas

Changan EV Deal and Expanding AI Infrastructure Mark Pivotal Year Ahead for Gallium Nitride Adoption

AI and EV Sectors to Fuel Gallium Nitride Growth in 2025

Navitas Semiconductor forecasts robust demand for gallium nitride (GaN) power devices in 2025, particularly in artificial intelligence (AI) data centers and electric vehicles (EVs). The U.S.-based firm reported that GaN revenue soared by over 50% in 2024, hitting record levels. Growth was led by mobile, consumer electronics, and the ramp-up of AI-based data center applications in the second half of the year.

While silicon carbide (SiC) revenues declined due to weaker demand in solar and industrial markets, GaN has proven resilient, gaining traction across high-growth sectors that prioritize energy efficiency and performance.

AI Data Centers and Global Expansion Define Strategic Growth

Navitas has seen its AI data center customer pipeline surge to over $165 million in 2024, more than doubling from $70 million in 2023. The company began sampling its 80–120V GaN fan lift devices designed for 48V DC-to-DC converters in data centers and expects significant revenue from this segment in 2025. It will pursue both SiC and GaN technologies to serve next-generation power architectures.

AI platforms such as DeepSeek are driving decentralized computing and edge AI, which are expected to require more efficient power delivery systems. Navitas anticipates this trend will accelerate adoption of its GaN and SiC components across cloud infrastructure.

EV and Solar Integration Signal Next Wave for GaN Applications

Navitas is now sampling 48V EV battery systems and expects the strongest demand growth to begin in China. The company’s GaN technology has secured its first EV production contract, set for H1 2026, targeting on-board charging systems. Notably, Changan Automobile selected Navitas GaN devices for its Qiyuan E07 platform, forecasting a 10,000km increase in range and up to 20% reduction in charging costs versus traditional silicon solutions.

In the solar sector, GaN is expected to debut commercially in mid-2025 with the launch of Navitas' new GaN-based micro-inverter. This technology promises to reduce size, weight, and cost while enhancing conversion efficiency.

Despite these industrial advances, GaN adoption in consumer electronics will remain strong. Navitas predicts GaN chargers will power over 10% of all mobile devices in 2025, with expansion into high-growth markets such as India, Latin America, the Middle East, and Africa.

Singapore opens GaN semiconductor facility to strengthen global supply

GaN Chip

Singapore has launched the National Semiconductor Translation and Innovation Centre for Gallium Nitride (NSTIC GaN), marking a major step in the nation’s advanced chip manufacturing ambitions. The new GaN semiconductor facility will begin commercial operations in mid-2026 and position Singapore among a handful of global hubs capable of producing GaN on SiC wafers. This Singapore GaN semiconductor facility is expected to support both domestic and international demand for high-efficiency power electronics and communication devices.

Singapore GaN semiconductor facility boosts manufacturing capacity

NSTIC (GaN) will feature production lines for 6- and 8-inch GaN on SiC wafers, offering flexibility for diverse applications. According to Minister Tan See Leng, the facility aims to support companies from start-ups to multinationals with production-grade capabilities. GaN semiconductors can operate at higher voltages, switch faster, and reduce heat, making them vital for telecoms, EV chargers, and aerospace systems. Demand for GaN chips is rising sharply, with the global RF GaN market projected to more than double to $2.7bn by 2028.

Global collaboration and market impact

The Singapore GaN semiconductor facility is a collaboration between A*Star, DSO National Laboratories, and Nanyang Technological University, backed by $123mn in funding. Partnerships include WaferLead, a SiC substrate start-up, which will leverage NSTIC GaN to enhance wafer quality and expand its global market presence. Once fully operational, the facility will offer foundry services to overcome capital barriers and accelerate new product launches. This initiative complements Singapore’s broader semiconductor push, including NSTIC (Photonics) and a $500mn advanced packaging facility announced earlier this year.

The Metalnomist Commentary

The Singapore GaN semiconductor facility reflects the strategic shift toward localized, resilient semiconductor ecosystems. By investing in GaN technology, Singapore not only reduces reliance on foreign supply chains but also positions itself as a critical hub in the global race for next-generation power electronics. The move underscores the increasing geopolitical and industrial weight of semiconductors in clean energy, EVs, and defense applications.

GaN Adoption Set to Expand in 2025: Power Integrations Leads the Way

Power Integrations

The future of gallium nitride (GaN) technology looks promising, as Power Integrations anticipates a major surge in its adoption by 2025. The U.S.-based semiconductor manufacturer expects its GaN-based products to grow significantly, not just in the smartphone charger market but across various other industries, including consumer electronics, telecommunications, data centers, and electric vehicles (EVs).

Power Integrations Growth in GaN Technology

Power Integrations predicts that by the end of this year, revenues from GaN-based products will make up over 10% of the company’s total sales. The company's expansion into GaN technology is evident, with new partnerships and contracts being signed across the globe. In India, Power Integrations has already supplied GaN products to a 5G telecom customer, replacing their previous silicon-based solutions. Additionally, metering customers in India are upgrading to GaN products, driven by the need for improved performance amidst the country's variable electricity grid voltages.

GaN's Role in the AI and EV Markets

As Power Integrations explores new opportunities for GaN, a significant focus is on the artificial intelligence (AI) sector. The company sees substantial potential in the AI data center market, with high-power GaN products gaining traction. However, there are technical challenges that need to be overcome. GaN technology, particularly for high-power applications, has been limited by design constraints when compared to silicon carbide (SiC). Nevertheless, Power Integrations is optimistic about GaN’s future, especially as it moves towards vertical GaN designs, which are expected to outperform SiC in both performance and cost.

Looking toward the electric vehicle market, Power Integrations believes that GaN could significantly reduce the cost of EV drivetrains compared to traditional silicon carbide technology. With the release of their new 1,700V GaN switch for EV chargers, the company is positioning itself as a leader in power electronics for the EV market. Balakrishnan, the CEO, emphasizes that high-power GaN technology will likely be market-ready in the next three to five years.

US Semiconductor Manufacturers Expand with CHIPS Act Funding

US Chip

The US Department of Commerce has allocated CHIPS Act funding to boost domestic semiconductor production. Companies Analog Devices, Coherent, IntelliEPI, and Macom will use this funding to increase manufacturing capacity, modernize facilities, and enhance the US semiconductor supply chain.

Investments in Key Semiconductor Companies

On January 16, the Department of Commerce announced preliminary funding agreements for four semiconductor manufacturers:

• Analog Devices will receive up to $105 million to expand mature node semiconductor manufacturing at its Oregon and Washington facilities. The investment will boost capacity by 70%, focusing on 180nm and 350nm process nodes. It will also expand module production at its Massachusetts facility for commercial, space, and defense applications.

• Coherent will receive up to $79 million to increase 150mm and 200mm silicon carbide (SiC) wafer production at its Easton, Pennsylvania facility. The expansion will add 750,000 substrates per year and double epitaxial wafer output, supporting energy and military applications.

• IntelliEPI will use $10.3 million to modernize its Allen, Texas facility, which produces epitaxy materials for indium phosphide, gallium arsenide (GaAs), gallium antimonide, and gallium nitride (GaN) wafers. These materials are essential for defense, AI, data centers, telecommunications, and automotive industries.

• Macom has announced a $345 million investment over five years, supported by up to $180 million in CHIPS Act funding, federal tax credits, and state funding. The company will modernize its Massachusetts and North Carolina wafer fabrication plants. Its Massachusetts facility will upgrade 100mm production lines for GaAs, GaN, and silicon materials and install 150mm GaN-on-SiC manufacturing. In North Carolina, Macom will develop 150mm wafer production and expand metal-organic chemical vapor deposition (MOCVD) epitaxial growth.

Strengthening the US Semiconductor Supply Chain

The CHIPS Act investments will expand domestic semiconductor production, ensuring a more resilient supply chain for key industries such as automotive, defense, telecommunications, and AI. These companies will also benefit from the Advanced Manufacturing Investment Tax Credit, which covers 25% of qualified capital expenditures.

By scaling up domestic semiconductor manufacturing, the US aims to reduce dependence on foreign suppliers and strengthen its position in advanced technology sectors.

US Expands Semiconductor Investments with India Partnership

India Chip

The US government continues to ramp up investments in semiconductor manufacturing both domestically and internationally, with a significant focus on partnerships with allied nations. This week, a major agreement was reached between the US and Indian governments to establish a new semiconductor plant in Kolkata, India. The facility will focus on producing advanced semiconductors, including infrared, gallium nitride (GaN), and silicon carbide (SiC), to support sectors such as national security, next-gen telecommunications, and clean energy.

Strengthening Tech Ties: US-India Collaborations

This venture is a part of a broader collaboration supported by the US Space Force, Bharat Semi, 3rdiTech, and the India Semiconductor Mission. The mission, initiated by India's electronics and IT ministry (MIIT), aims to build a robust semiconductor supply chain, supported by the US Department of Commerce’s International Technology Security and Innovation (ITSI) Fund. The fund itself is a key initiative under the CHIPS and Science Act, designed to bolster US semiconductor production.

In addition to the plant in Kolkata, US-based Analog Devices has also signed a partnership with India's Tata Electronics. Their collaboration focuses on chip production at Tata's planned $11bn manufacturing plant in Gujarat, with a potential $3bn facility for chip assembly and testing in Assam. Furthermore, US manufacturer GlobalFoundries, after acquiring Tagore Technology’s power GaN IP, announced plans to develop a Kolkata Power Centre for GaN technology.

On the domestic front, the US Commerce Department recently awarded Polar Semiconductor up to $123mn to expand its silicon wafer manufacturing in Bloomington, Minnesota. This marks the first allocation under the CHIPS Act for commercial chip production, which has sparked over $400bn in private semiconductor investments and more than $35bn across 16 states.