November 18, 2024 /SemiMedia/ — Following a period of strong demand and tight supply, the silicon carbide (SiC) wafer market is now experiencing an oversupply in 2024, driving prices to unprecedented lows and signaling a major shift in the power semiconductor materials sector.

The market price for mainstream 6-inch SiC wafers fell to $400-$450 per piece in Q4 2023, well below previous levels and dipping under the estimated production cost of $500. Analysts attribute the sharp decline to an oversupply and intensified market competition.

Chinese suppliers have sparked an aggressive price war, with smaller manufacturers joining in, disrupting market stability. As a result, global buyers have gained stronger bargaining power, allowing major international IDM firms like Bosch and Infineon to secure more favorable pricing agreements.

Compared to the global market, the decline in China’s SiC substrate prices has been more pronounced. While international suppliers still offer mainstream 6-inch SiC wafers at $750-$800, Chinese manufacturers have reduced prices by approximately 30%. This disparity highlights the intense competition in China and showcases the domestic manufacturers’ advantages in cost control and capacity expansion.

However, IDM companies remain cautious about new supplier relationships. Manufacturers from Europe, the United States, and Japan continue to prioritize supply chain stability and security.

Industry experts anticipate that the consolidation wave originally expected in the SiC substrate market by 2026 could now arrive earlier, potentially by mid-2025, driven by the ongoing price war.