Can Metal Replacement Support Silicon Carbide Power Devices' Valuation Beyond Expectations?

In the development process of the automotive industry, silicon carbide power devices are gradually emerging as a key player, with broad application prospects in fields such as electric vehicles. However, cost issues have always been one of the critical factors limiting their large-scale adoption. Against this backdrop, metal replacement has become a focus of attention within the industry, and whether it can provide super-expected support for silicon carbide power devices' valuation is worth exploring.

Silicon carbide power devices have numerous advantages, such as high withstand voltage, low loss, and high switching frequency, which enables them to perform well in improving electric vehicles' efficiency and extending their cruising range. However, the traditional manufacturing process of silicon carbide power devices often involves the use of some precious metals, which are expensive and scarce, resulting in a high cost for the devices. Therefore, seeking alternative materials to reduce costs has become a necessary trend for industry development.

Currently, there have been some research and practices exploring the possibility of metal replacement. Some new materials are gradually approaching or even surpassing traditional precious metals in terms of electrical performance, while their cost is relatively low. For example, a research team has discovered a new type of alloy material whose conductivity and stability are comparable to those of traditional precious metals, but its cost is about half that of the latter. The emergence of this replacement material has brought new hopes for reducing the cost of silicon carbide power devices.

From a market valuation perspective, if metal replacement can successfully achieve large-scale application and significantly reduce costs, the competitiveness of silicon carbide power devices in the market will be greatly enhanced. This will attract more automakers to adopt silicon carbide power devices, thereby expanding the market demand. According to data from market analysis institutions, when silicon carbide power device costs decrease by 30%, its penetration rate in the electric vehicle market is expected to increase from the current 10% to 30% over the next three years. The increased demand will directly drive revenue growth for relevant companies and ultimately have a positive impact on their valuation.

However, metal replacement also faces some challenges. On one hand, the stability and reliability of new alternative materials need to be verified through long-term testing to ensure they can operate normally in the complex usage environment of automobiles. On the other hand, the mass production and supply chain establishment of these materials require a certain amount of time and cost. The following is a comparison table between precious metals and replacement materials:

In summary, metal replacement for cost reduction has brought opportunities for the development of silicon carbide power devices, but it is necessary to overcome numerous technical and market challenges to achieve super-expected support for their valuation. Only by ensuring that alternative materials have stable and reliable performance and can be mass-produced can we truly drive the widespread application of silicon carbide power devices in the automotive industry and enhance their market valuation.