Silicon Carbide Stocks Drive Global Power Electronics Market

Silicon carbide (SiC) is an extremely hard chemical compound composed of silicon and carbon that occurs naturally as the rare gem moissanite as well as being produced synthetically for use as an abrasive.

Silicon carbide stocks should be of interest to investors as this material will soon be utilized in electric vehicle charging stations, electrical utility grids and data centers. Watch the following video to gain more insight into these under-the-radar semiconductor stocks.

Power Electronics

Silicon Carbide (SiC) semiconductors possess a wide band gap that allows it to operate at higher frequencies and voltages than traditional silicon semiconductors, making them an excellent choice for power electronics applications, including energy storage and conversion systems, compact devices with reduced heat loss, reduced energy loss due to heat generation, heat energy losses reduced further as well as rugged environments being tolerated without degradation; its increasing popularity will drive global SiC semiconductor market demand.

SiC chips are increasingly being employed in high-voltage power converters for use in various applications, from electric vehicles and renewable energy setups to renewable energy systems. SiC offers superior efficiency and performance than silicon-based components, enabling greater energy optimization and system reliability. Tesla Model S was the first car to utilize SiC components; specifically a “traction inverter,” which converts DC energy from batteries into AC power that runs motors.

Demand for high-voltage SiC power semiconductors has led several companies to invest in its development. Microchip Technology stands out in this regard with their mSiC product portfolio; ON Semiconductor Corp also stands out, with both their revenue and earnings rapidly expanding over time.

Both companies have invested significantly in research and development to stay ahead of the competition with their products, using cutting-edge processes to produce devices that will play an integral role in power electronics’ future. Furthermore, both are partnering with industry leaders to broaden their product offering.

Partnerships such as these should help advance growth within the power electronics industry, and may increase demand for semiconductors produced from silicon carbide material. Silicon carbide semiconductors offer superior performance and durability, which should translate to increased sales over time.

As such, semiconductor market is projected to experience exponential growth in coming years, giving investors significant investment opportunities and making these stocks some of the top candidates to buy in 2024.

Automotive

Silicon carbide technology has many applications in the automotive sector. For instance, an electric vehicle’s traction inverter converts DC power from its battery into AC current for driving its motor; using silicon carbide power chips helps increase its efficiency thus increasing range.

As electric vehicle sales increase, so too will their need for semiconductors that manage them – an enormous market for silicon carbide that early entrants to will profit greatly from.

As such, it’s worth keeping an eye out for microchip companies that specialize in silicon carbide technologies, like Microchip Technology (MCHP) and ON Semiconductor Corp (ON). Microchip Technology stands out for having a comprehensive product portfolio for their mSiC chip power semiconductor with broad operating temperature range and high performance, making it suitable for use in high voltage applications. ON Semiconductor Corp also excels at this area.

ON Semiconductor’s EliteSiC power semiconductors offer an extensive product roadmap designed to address the global increase in energy density needs. Their platform delivers more efficient power conversion, reduced heat and size reduction and enhanced reliability compared to their competition.

Additionally, these products offer another advantage over standard semiconductors made of silicon: durability. This quality can be especially valuable in high-reliability applications like those found in electric vehicles (EVs).

Both companies specialize in producing silicon carbide solutions for various automotive applications, such as power management, ADAS and infotainment systems. Both firms can also handle higher voltage power requirements that increasingly come to play in hybrid and EV vehicles.

This company provides high-volume silicon carbide processes, including dicing, heavy gauge wirebonding, copper clipping and burn-in services. Their processes can easily manage high temperature operating envelope of silicon carbide devices as well as meet reliability demands from automotive industry customers.

Silicon carbide has rapidly gained favor as an alternative to silicon-based semiconductors in power electronics due to its superior performance and cost advantages. With its wider bandgap allowing lower switching losses at higher frequencies and quicker operation times at elevated temperatures and voltages. All these attributes will continue to drive demand for silicon carbide components and modules across industries including automotive, industrial and energy & power.

Semiconductor

Silicon carbide (SiC) is an exceptionally strong hexagonal-structure chemical compound with wide band-gap semiconductor properties, boasting an unprecedented bandgap of 3.26eV compared to traditional Si transistors which only offer 1.5eV gap gaps and thus enable greater current flow. Due to increasing power electronics demand, companies such as Wolfspeed and ON Semiconductor have pledged their services as providers of SiC power semiconductors with superior performance characteristics for supply to industry players such as these two.

SiC devices can handle higher levels of electrical current than traditional silicon chips and operate at higher temperatures, leading to reduced energy consumption and greater reliability. They may even be used to create faster DC fast-charging for electric vehicles (EVs) as well as AC-DC converters in data centers.

As global EV sales expand, so too has the need for reliable and efficient power electronics chips – driving an unprecedented surge in silicon carbide (SiC) industry growth and helping position several transformational companies for decades of expansion.

ON Semiconductor and Wolfspeed are among the best silicon carbide stocks to invest in 2024. Both companies produce power semiconductors made with this advanced technology, such as MOSFETs, gate drivers and diode modules.

Wolfspeed, in particular, has seen tremendous success in the automotive market – quadrupling year over year revenue in this space and signing $3 billion worth of long term supply agreements for their products.

ON Semiconductor’s stock multiple has come under increased strain as the firm struggles to make profits from its new-generation SiC semiconductors, raising investors’ concerns that its business may commoditize or fade completely and leading to a consequent decrease in its stock price.

However, its recent earnings report suggests that it’s beginning to make progress in expanding its SiC product use. Furthermore, the company recently announced a partnership agreement with Shenzhen BASiC Semiconductor that will develop next-generation SiC power semiconductors specifically targeted towards electric vehicle (EV) applications – giving both firms a strong chance at expanding their respective markets within semiconductor industry.

Renewable Energy

Silicon carbide semiconductors process electricity more efficiently than traditional semiconductors for applications like DC-to-DC converters for onboard charging of electric vehicles. Their ability to maximize energy efficiency while decreasing battery management system size and weight will allow electric vehicle drivers to travel farther distances on one charge.

SiC technology boasts temperatures reaching 300 degrees Celsius compared to 175 for silicon technology, providing increased thermal conductivity that enables power producers to maximize renewable energy use while improving overall grid reliability by creating a smooth transition between renewable sources and traditional generators. Furthermore, its ability to withstand higher operating voltages allows for reduced losses and enhanced power electronics performance.

Silicon carbide demand should increase alongside the rising steel industry in the US as it serves as an essential raw material in producing refractory materials and furnace linings, in addition to serving as the substrate of semiconductor devices.

Wind and solar energy have rapidly entered the marketplace, becoming cost-competitive with conventional fossil fuels in some markets. Renewables help balance out electricity supply and demand while decreasing grid load, improving resilience, and contributing to cleaner environments.

Silicon carbide plays a pivotal role in helping transform industries from enhanced power electronics to advanced semiconductors – giving these stocks an exciting growth path over the coming years.