News-Taisic Materials navigates SiC oversupply by focusing on larger eight-inch wafers, eyeing growth in US and Japan
Taisic Materials navigates SiC oversupply by focusing on larger eight-inch wafers, eyeing growth in US and Japan
Nuying Huang, Taipei
In 2024, the silicon carbide (SiC) semiconductor industry faces challenges as increased crystal growth production capacity in China results in oversupply and significant price drops, affecting the global market. Adding to the uncertainty, the US plans to initiate Section 301 investigations against China in 2025.
Ming-hsun Hsieh, GM of Taisic Materials, a subsidiary of Kenmec Mechanical Engineering, shared that the company remains unaffected by the oversupply of mainstream six-inch SiC due to its focus on the larger eight-inch variants. Currently, Taisic Materials is certifying its products with major clients in the US and Japan, while its Taiwanese operations primarily serve the Hon Hai Technology Group, which is also moving towards eight-inch products.
Since Taisic Materials's operations are largely in the certification phase, they begin with a modest revenue base. However, the company anticipates that revenues will triple in the latter half of 2024 and expects to double its revenue across 2025. This growth is likely as certified clients initiate small orders, although reaching a breakeven point by 2025 remains uncertain, with stronger optimism placed on a potential turning point in 2026.
Taisic Materials's expertise lies in the processes of long, cutting, grinding, and polishing SiC, using equipment developed by Kenmec Mechanical Engineering. With 65 crystal growth furnaces in operation, Taisic Materials is involved in both conductive and semi-insulating SiC.
However, its downstream capacities, particularly in cutting, grinding, and polishing, are somewhat constrained, necessitating collaborations with external partners. The support from local Taiwanese partners is also crucial, as they develop essential consumables for SiC production.
As the US pursues its investigation into China's semiconductor processes under Section 301, there are questions about how this might influence Taisic Materials's strategic direction. Hsieh noted that any impact would be contingent on ongoing legal developments during Trump's administration. Taisic Materials's focus on non-Chinese demands has attracted substantial interest from clients seeking to avoid reliance on China, and Hsieh is confident that the investigation will not require drastic strategic alterations for Taisic Materials.
Despite Chinese SiC substrate prices falling and affecting global pricing dynamics, Taisic Materials' response has reinforced its capabilities to satisfy client demands. Japan remains a critical market, with clients there showing significant enthusiasm for testing and scaling production. Although identifying the end-users of SiC wafers, components, or modules proves complex, Taisic Materials has responded by securing automotive ISO 16949 certification to align with client needs.
The situation at Wolfspeed, a leader in SiC, reflects broader industry challenges. Wolfspeed's struggle with scaling eight-inch production highlights the hurdles even established companies face. Hsieh commented that while established entities like Wolfspeed face operational difficulties, Taisic Materials, as a specialized supplier, encounters different challenges.
The fate of older Chinese companies, some of which face bankruptcy, illustrates the volatile environment affecting all industry players. Despite these challenges, Taisic Materials remains focused on leveraging its specialized capabilities to adapt to the rapidly changing market.
Article translated by Jingyue Hsiao
Source:DIGITIMES
https://apps.digitimes.com/news/a20250106PD218/taisic-sic-oversupply-growth-2024.html?dt_ref=tag