The power SiC device market is forecast to approach US$10 billion by 2030.
Equipment CapEx peaked in 2023 at about US$3 billion, resulting in significant overcapacity across the upstream SiC value chain.
Utilization rates have fallen to around 50% for upstream and 70% for device processing in 2025.
China now represents the largest regional CapEx share.
ChipChat with Yole Group – SiC today: what’s the latest take from the front lines? Discover the full video
The Power SiC market continues its transformation. Following an unprecedented investment wave between 2019 and 2024, the industry is now entering a correction cycle. Yole Group’s latest report, Power SiC 2025 – Front-End Manufacturing Equipment, delivers an in-depth analysis of this shift, covering market metrics, technology trends, and competitive dynamics shaping SiC equipment across boule growth, epitaxy, wafer fab tools, and test equipment. The slowdown in the automotive market has reduced the demand for SiC, transforming the SiC supply chain. The cycle of falling utilization rates, excess capacity, and reduced investment is raising concerns among industry players. Yet, despite the slowdown, SiC remains central to the electrification roadmap, with device revenue forecast to reach nearly US$10 billion by 2030. The industry’s first major investment cycle, driven by the 2019–2024 CapEx boom, created significant upstream overcapacity. As of 2025, utilization rates have dropped to around 50% for upstream processes and 70% for device lines . The downturn is expected to persist until 2027–2028, when renewed growth will come from 8-inch production platforms and next-generation trench and superjunction MOSFETs.
Taguhi YeghoyanPrincipal Technology & Market Analyst, Semiconductor Equipment at Yole Group
SiC has entered a necessary correction phase. Indeed, after five years of massive investment, the market must absorb capacity before new tools and technologies can drive the next expansion.
Regional dynamics: China’s fast rise
Much of the new equipment CapEx is centered in Mainland China, where the government’s strategy encourages local procurement of equipment. In 2024, Chinese players already captured around 40% of SiC wafer and epiwafer capacity and are rapidly expanding into device manufacturing. While the equipment ecosystem is not yet fully self-sufficient, domestic suppliers have made significant progress in PVT and HTCVD tool segments.
“China is catching up fast on SiC front-end capability,” notes Taguhi Yeghoyan from Yole Group. “Local vendors now compete head-to-head in SiC crystal growth and epitaxy, even as international players retain leadership in thinning, metrology, and advanced ion implantation.”
Equipment ecosystem outlook
PVT (boule growth): Mature ecosystem with 8-inch capabilities established. The open PVT equipment market, led by Naura, is expected to contract sharply before stabilizing with about -11% CAGR growth from 2024–2030.
Epitaxy (HTCVD): European players ASM International and AIXTRON lead, followed by NuFlare and TEL. Chinese vendors Naura, JSG, and NASO Tech are expanding aggressively.
WFE tools: Require SiC-specific adaptation for etch, CMP, ion implantation, and inspection. The market will maintain roughly -7% CAGR through 2030, supported by upgrades of the existing installed base.
Overcapacity in burn-in systems offset the overall growth in test-related equipment, leading to a modest 3% CAGR.
Despite the downturn, IDMs continue strategic investments in 200mm SiC capacity and advanced MOSFET architectures, maintaining global leadership even as China’s domestic ecosystem gains traction.
Poshun ChiuPrincipal Technology & Market Analyst, Compound Semiconductor at Yole Group
After a period of accelerated expansion, the power SiC industry is recalibrating. The short-term slowdown masks a long-term transformation toward 200mm production, localized supply chains, and new device architectures that will define the next growth cycle.
Yole Group’s Power SiC 2025 – Front-End Manufacturing Equipment report provides a detailed outlook on technology adoption, vendor positioning, and CapEx evolution across every major process segment. Discover the complete analysis, forecasts, and market insights at yolegroup.com, and follow us on LinkedIn for continuous updates on compound semiconductor innovation.
