Six-inch SiC substrate prices rebound on tightening supply

Prices for six-inch silicon carbide (SiC) substrates have started to rebound. This increase follows a period where prices may have softened, and the current upward trend is attributed to a tightening of supply for these critical components. The change indicates a shift in market dynamics for SiC materials.

This price rebound matters because SiC substrates are fundamental components in power semiconductors. These semiconductors are essential for high-efficiency power conversion in key growth areas like electric vehicles (EVs) and renewable energy systems. Rising substrate costs can influence the overall production expenses for devices using them.

The mechanism behind the rebound is primarily tightening supply, suggesting that the available quantity of six-inch SiC substrates is becoming insufficient to meet current demand. This imbalance indicates an increase in the underlying demand for power semiconductors, which in turn drives up the cost of their raw materials.

The price increase for SiC substrates could impact companies in the EV and power electronics sectors. Companies like Tesla (TSLA), General Motors (GM), and Ford (F) that produce EVs, or semiconductor manufacturers like ON Semiconductor (ON) and Wolfspeed (WOLF) that produce SiC devices, may see changes in their cost structures and potentially their profitability due to higher input costs.