Can Metal Replacement Drive Silicon Carbide's Valuation Beyond Expectations?
In the development process of the automotive industry, silicon carbide as a new emerging semiconductor material is gradually gaining prominence. It has numerous advantages such as high breakdown voltage and high electron mobility, which can significantly improve the performance and efficiency of electric vehicles. However, the cost of silicon carbide materials has always been a key factor limiting their large-scale application. The strategy of replacing precious metals with cheaper alternatives has become a focus within the industry, and its ability to support silicon carbide's valuation beyond expectations is worthy of in-depth exploration.
Siemens carbide has tremendous application prospects in the automotive field. For example, using silicon carbide power devices can reduce energy losses and improve battery efficiency, increasing vehicle range. Additionally, silicon carbide devices can withstand higher temperatures and voltages, helping to reduce system volume and weight, and enhance overall vehicle performance. However, the production cost of silicon carbide materials is currently high, mainly due to complex manufacturing processes and the need for precious metals in production.
To reduce the production cost of silicon carbide, researchers have begun exploring the use of alternative materials to replace precious metals. Some new metal compounds or alloys are believed to have the potential to replace precious metals. For example, certain transition metal compounds can exhibit similar electrical properties under specific conditions if they are used in place of precious metals. If these alternative materials can be successfully applied to the production process of silicon carbide, it is expected to significantly reduce production costs.
The following table compares the use of precious metals and alternative materials for silicon carbide:
| Comparison Project | Using Precious Metals | Using Alternative Materials |
| Cost | High, expensive precious metals and limited supply | Low, alternative materials are typically cheaper and sourced widely |
| Performance | Stable performance, validated over a long period | Some alternative materials have similar performance, but still require further optimization |
| Manufacturing Process Complexity | Complex, requiring high-tech processes | Relatively simple, possibly simplifying production workflow |
From a market valuation perspective, if the metal replacement strategy can achieve beyond-expected effects, the production cost of silicon carbide will be significantly reduced. This will further enhance the competitiveness of silicon carbide in the automotive market, driving growth in demand and revenue for related companies, thereby supporting the valuation of silicon carbide.
However, metal replacement also faces some challenges. On one hand, the performance and stability of alternative materials need to be extensively tested and validated to ensure they meet the strict requirements of the automotive industry. On the other hand, adjusting and optimizing production processes will require certain time and cost inputs. Moreover, market acceptance and demand growth velocity for silicon carbide are uncertain.
The supporting effect of metal replacement on silicon carbide's valuation has a certain potential. However, to achieve beyond-expected support effects, it is necessary to overcome numerous technical and market challenges. Only when technology breaks through, production processes mature, and market demand continues to grow will the valuation of silicon carbide have the potential to rise significantly.