A 2024 EV Slowdown Will be Negative Silicon Carbide Chip Market Says the Information Network

New Tropoli, PA, January 15, 2024 --(PR.com)-- The increasing adoption of EVs is driving a surge in demand for advanced chips, particularly those manufactured with silicon carbide (SiC). Some segments of the EV industry are slowing, reducing demand for SIC devices, according to the report entitled "Power Semiconductors: Markets, Materials and Technologies," recently published by The Information Network, a New Tripoli, PA-based market research company.

"The EV auto industry is facing headwinds not only in the U.S., but in Germany as the German government decided to terminate a seven-year subsidy program," reported Dr. Robert Castellano, President of The Information Network. "Recently, we have seen the downward revisions made by three of the largest automobile companies, General Motors, Ford, and Volkswagen. Other automakers, including Toyota, Lucid, Polestar (Volvo), and Fisker, have also announced more conservative EV sales targets in alignment with the current market conditions."

"Onsemi (ON) has already reported in its Q3 earnings call that it cut its 2023 SiC revenue guidance from $1 billion to $800m because a European tier-1 automotive OEM pushed out deliveries," added Dr. Castellano. "With a slowdown in EV sales, which comprise 61% of SiC chip sales, I had revised downward my SiC projections."

According to the report, Wolfspeed Semiconductor (WOLF) will be most impacted by an EV slowdown in the U.S. and Europe. Wolfspeed supplies SiC chips to VW and GM, both of which revised sales downward, and Jaguar and Mercedes, both of which are European auto companies.