The TSMC Industry Research Institute points out that compared to the currently mainstream silicon wafers (Si), the third-generation semiconductor materials SiC and GaN not only feature high voltage resistance but also have advantages in high-temperature resistance and suitability for high-frequency operations. This can significantly reduce the chip area and simplify the design of surrounding circuits, achieving a reduction in the size of modules, system components, and cooling systems. In addition to lightweight vehicle design, the low conduction resistance and low switching loss characteristics of third-generation semiconductors can also greatly reduce energy conversion losses during vehicle operation, both of which significantly help improve the range of electric vehicles. Therefore, the technology and market development of SiC and GaN power components are closely related to the development of electric vehicles.

However, SiC materials are still in the verification and introduction stage, and at this stage, they are only applied in racing cars in the automotive field. Therefore, the current global automotive power components using SiC solutions account for less than one-thousandth of the area. On the other hand, the GaN power components currently on the market are manufactured using two types of wafers: GaN-on-SiC and GaN-on-Si. Among them, GaN-on-SiC has advantages in heat dissipation performance, making it suitable for high-temperature and high-frequency operating environments. Therefore, its visibility in 5G base station applications is relatively high. It is expected that SiC substrates will enter a period of rapid growth in the next five years, driven by validation from car manufacturers and the commercialization of 5G in May 2020.

Although the cost of GaN substrates remains high during the process of scaling up in area, the current output value of GaN substrates is still less than that of SiC substrates. However, the advantages of GaN in high-frequency operations remain a focal point for major technology companies. In addition to high-spec products using GaN-on-SiC technology, GaN-on-Si has become the mainstream in the current GaN power component market due to its cost advantages, showing growth potential in applications for automotive and smartphone power management chips and charging systems.

The TSMC Industry Research Institute points out that observing the development of the supply chain, due to the growth trends in 5G and automotive technology, the supply chain has developed a wafer foundry model, providing customers with foundry services for SiC and GaN, changing the past situation where only integrated component giants like Cree, Infineon, and Qorvo supplied these materials. For GaN, TSMC and GlobalFoundries provide GaN-on-Si foundry services, while Win Semiconductors focuses on the GaN-on-SiC field targeting opportunities in 5G base stations. Additionally, X-Fab, Hanlei, and Huanyu also provide foundry services for SiC and GaN. With the promotion of foundry services, the market scale of third-generation semiconductor materials will further expand.