Taiwan's Acme Electronics is anticipating flat or slightly declining demand for its silicon carbide (SiC) powders used in electric vehicles (EVs) during the second half of 2024. To offset this impact, the company is actively exploring new applications for its products, according to company president Wen-hao Wu.
Wu noted that shipments of manganese-zinc and nickel-zinc soft ferrite cores— the company's major product line—have remained stable with slight growth this year, driven by strong demand from servers and other AI device applications. However, to stay competitive in the market, Acme is committed to R&D and innovation, especially capitalizing on the miniaturization trend in complex products.
In the first half of 2024, Acme sold over 60 tons of SiC crystal growth powder, similar to the volume of a year earlier. However, demand from EV-related customers is likely to remain flat or fall slightly in the second half of 2024. Despite this, Wu remains confident that exploring new customers and expanding into different application areas will sufficiently offset any slowdown in EV-related demand.
Currently, SiC applications primarily cover EVs, communications equipment, energy solutions, and AI data centers. Wu emphasized that as global priorities shift towards green and net-zero emissions, short-term fluctuations in EV demand do not necessarily dictate future trends.
The expansion of SiC powder production capacity is proceeding as planned, with a total output of 60-70 tons in the first half of 2024, and further increases expected in the second half. Overall, production capacity is steadily rising, with utilization rates nearing full capacity, supported by new customer acquisitions and expansion into advanced application areas.
To mitigate geopolitical risks, Acme is constructing a new plant in Malaysia, which is expected to be completed in the second half of 2024. The new plant is expected to send sample products to one or two customers for validation later this year.
Looking ahead, the EV market's slowdown has indeed impacted Acme's expansion plans for 2025. While the company initially aimed for double capacity growth annually, achieving this goal has become more challenging as the business base expands. As such, Acme will adjust its 2025 production capacity based on actual sales performance in the second half of 2024.
Despite short-term headwinds in the EV market, Wu believes that Acme will still achieve revenue growth in 2024, albeit at a slower pace. The company is committed to avoiding any revenue decline.
Regarding the potential price increase for SiC crystal growth powder, Wu noted that it depends on market conditions. The semiconductor electronics industry typically adjusts prices annually, and Acme will evaluate the market situation and customer relationships before making any adjustments.
Acme's SiC customers are primarily based in Europe and the US, with some in Japan and South Korea, while Taiwanese customers account for less than a single-digit percentage. Acme reported that its revenue from January to July 2024 rose 27.34% year-on-year to NT$1.835 billion (US$57.78 million).
