Huaxi: AI development drives significant growth in demand for SiC. SiC substrate and device companies are expected to benefit significantly.

Huaxi released a research report stating that with the development of AI, there is a significant increase in the demand for SiC in AI-related fields, and there is a lot of potential for future growth. The demand for AI-related applications far exceeds traditional markets like automotive regulations, and SiC is expected to become a new main theme in AI. This year, SiC has shown a reversal trend, and the market is expected to re-evaluate the SiC industry, with SiC substrates and equipment companies expected to benefit greatly. Key points from Huaxi are as follows: AI power drives up industry sentiment, SiC industry starts to reverse Several companies in the industry have indicated an increase in industry sentiment during Q1 earnings calls or announcements, with significant growth in demand for AI power supply driving outstanding performance in the global SiC core market. Global leading companies such as Foxconn, Bosch, and Samsung are also increasing their focus on SiC. SiC is expected to benefit greatly from the increase in AI power supply, with the power market expected to grow nearly 8 times in the future The report believes that as power consumption in AI data centers rises and NVIDIA introduces its 800V architecture, AI power supply becomes a crucial factor, and SiC as a power device is expected to benefit greatly. Many companies in the industry chain are already laying the groundwork for SiC solid-state transformers (SST). The penetration rate of SiC in the automotive market is still relatively low, offering significant growth potential. Combining this with the demand for AI power supply, the report predicts that the overall demand for SiC substrates in the power industry could reach close to 70 billion RMB by 2030, nearly 8 times the current level. The large-scale expansion of 8-inch downstream FAB lines is expected to greatly stimulate the demand for substrates and equipment. AI brings new applications for SiC, worth paying attention to CoWoS, AR glasses, and other new applications According to industry experts, TSMC has already presented clear demands for 12-inch intermediate layer SiC substrates to some companies, with deliveries expected to start this year and demand volume expected to double next year. Based on publicly available information, several SiC companies have already provided samples or are cooperating to advance. The report predicts that if 75% of CoWoS replaces SiC interposers, the demand for SiC substrates in 2030 could exceed 70 billion RMB; the demand for SiC substrates for AR glasses in the long term is expected to reach over 60 million pairs, amounting to 60 billion RMB. The report believes that these two major new applications belong to AI hardware and AI terminals, making SiC an important material in the future AI market. Risk warning Delays in the advancement of new applications, increasing industry competition, geopolitical risks, etc.