Haitong: 8-inch silicon carbide products boost penetration in the catalysis industry.

Haitong's research report states that according to Wolfspeed's calculation, the silicon carbide market related to new energy vehicles will experience rapid growth with a compound annual growth rate of 39% between 2022 and 2027, reaching nearly $5 billion in 2027. In addition to the new energy sector, the non-vehicle sector market (energy, power supply, industry, etc.) is expected to reach over $1 billion in 2027. Overseas progress: Silicon carbide application pioneers driving commercialization. Overseas leaders like Wolfspeed have achieved full coverage in silicon carbide products. Taking Wolfspeed as an example, horizontally, Wolfspeed has achieved comprehensive coverage of conductive/semi-insulating; vertically, Wolfspeed has achieved full coverage of 8-inch substrates, 1700V MOSFETs, and other products, with the entire industry chain iteration progress at a global leading level. Domestic progress: Catching up and fully releasing capacity. Since Wolfspeed successfully developed 8-inch silicon carbide substrates in 2015, several domestic and foreign manufacturers have successively announced mastering the technology for preparing 8-inch substrates. In 2022, domestic manufacturers represented by Shuoke Crystal and Sicc Co., Ltd. have broken the technical monopoly of overseas leaders on large-size substrates and have officially put substrate diameter expansion on the agenda. Since 2016, Wolfspeed's gross profit margin has been continuously decreasing from 54%, while on the other hand, the profit-making ability of domestic substrate manufacturers has gradually become evident with the large-scale release of capacity. Since the third quarter of 2023, Sicc Co., Ltd.'s net profit margin has turned positive, and by the first quarter of 2024, it has achieved stable profitability.