Growing Demand for SiC in EVs to Drive Significant Growth in 2025, Onsemi Reports

Onsemi

As the electric vehicle (EV) market continues its expansion, the demand for silicon carbide (SiC) devices is expected to accelerate, according to Onsemi’s third-quarter earnings report. While overall semiconductor demand for the period remained below expectations, SiC devices remain a high-growth segment, especially in electric vehicles, where penetration is still under 6%. With the growing adoption of 800-volt (V) designs in EVs, the company anticipates significant growth in SiC demand by 2025.

SiC's Role in Electric Vehicles

The shift from 400V to 800V charging architectures, which significantly reduces battery charging times by up to 50%, is driving the demand for SiC power devices. SiC devices offer higher energy density, increased efficiency, and reduced weight compared to traditional silicon devices, making them ideal for key EV components like traction inverters, on-board chargers (OBCs), and DC-DC converters. Onsemi’s president and CEO, Hassane El-Khoury, pointed out that nearly all new EV models introduced at the 2024 Beijing Auto Show were designed around 800V using SiC, signaling a growing market for this technology.

SiC Demand Growth Despite Market Slowdowns

Onsemi’s automotive revenue for Q3 2024 rose by 5% compared to the previous quarter, reaching $951 million. However, the company saw a year-on-year decline of 18% due to lower-than-expected EV sales. Despite this, El-Khoury noted that this slowdown is likely a short-term delay rather than a long-term trend. The company’s outlook for SiC in the automotive sector remains positive, with continued adoption in China expected to drive growth. Onsemi also noted that North America and Europe are experiencing softer demand, but industrial markets tied to EVs, aerospace, and utility-scale solar are showing some recovery.

Onsemi’s strategic focus on SiC remains strong, with expectations that demand for these devices will outpace overall automotive market growth, bolstered by their continued adoption across China, followed by other key markets like the US and Europe.

Looking Ahead: SiC as a Key Growth Driver

As EV adoption grows and the shift to 800V architectures becomes more widespread, SiC’s role in powering these vehicles will become even more critical. Onsemi is optimistic that the ramp-up in SiC adoption will continue through 2025, further solidifying its place in the global EV market. The company’s cautious outlook for Q4 2024, with expectations of up to 5% growth in automotive revenue for the full year, reflects confidence in the long-term potential of SiC devices, despite some short-term fluctuations in demand.