With the rapid development of the technology industry, third-generation semiconductor materials - gallium nitride (GaN) and silicon carbide (SIC) - are gradually becoming the focus of attention in the industry. According to the latest forecast by market research firm Yole, thanks to the sustained prosperity of the consumer electronics market, accelerated data center construction, and explosive growth of the new energy vehicle industry, the global GaN market capacity is expected to reach an astonishing $2.2 billion by 2029, and is expected to climb strongly at a compound annual growth rate of 29% over the next five years. And the other protagonist, SiC, shines in its industrial and automotive applications, with a market size expected to exceed $10 billion in the same year, demonstrating enormous market potential and growth space.

In this global technology competition, internationally renowned companies such as STMicroelectronics, Infineon, Wolfspeed, onsemi, and ROHM have achieved significant growth in performance with their leading SiC device technology, with year-on-year growth rates exceeding 50%, fully demonstrating the commercial value and market demand of third-generation semiconductor technology.

Focusing on the domestic market, China, as one of the world's largest markets for new energy vehicles, is becoming a key driving force for the development of third-generation semiconductors. According to statistics, the market size of SiC/GaN power device modules in China has reached approximately 15.32 billion yuan in 2023, with a year-on-year growth rate of up to 45%, demonstrating China's strong development momentum in this field. Of particular note is that the penetration rate of third-generation semiconductors in the power electronics field has exceeded 12%, marking its official entry into a golden period of high-speed growth. Among them, new energy vehicles and their charging infrastructure have become the largest stage for the application of third-generation semiconductor power electronics, with a market share of up to 70.67%, highlighting the urgent demand for advanced semiconductor technology in the new energy vehicle industry.

Faced with huge market opportunities, domestic and foreign enterprises have increased their research and development investment, accelerated capacity expansion, in order to seize market opportunities. Especially in the SiC market, with technological advancements and intensified market competition, companies are moving towards 8-inch production lines to improve production efficiency and reduce costs. According to CASA Research's prediction, by 2027, China's announced SiC substrate production capacity will account for over 40% of global production capacity, which not only highlights China's rise in the third-generation semiconductor field, but also heralds a profound change in the global supply chain landscape.

It is particularly noteworthy that Chinese companies have made significant progress in the field of SiC substrates, not only greatly improving product cost-effectiveness, but also effectively narrowing the gap with international leading enterprises through technological innovation. In recent years, the price advantage of 6-inch silicon carbide substrates in China has gradually expanded, and the price difference with international suppliers has risen from around 5% to 30%. This undoubtedly has won valuable price advantages and market space for Chinese enterprises in global competition.

The third-generation semiconductor materials GaN and SiC are leading profound changes in the semiconductor industry, and domestic and foreign enterprises are fiercely competing in this blue ocean, constantly promoting technological innovation and industrial upgrading. In the future, with the continuous development of industries such as new energy vehicles and data centers, the market prospects for third-generation semiconductor materials will be even broader, injecting strong impetus into the high-quality development of the global economy.

Fushite Technology focuses on the field of power devices, providing customers with power devices such as IGBT and IPM modules, as well as MCU and touch chips. It is an electronic component supplier and solution provider with core technology.