Ferrosilicon & Silicon Carbide Industry Pulse: Technology, Policy, and Market Dynamics

Silicon Carbide: Accelerated Innovation and Standardization

1. Laser Spalling Revolutionizes Wafer Production

2. Liquid-Phase Epitaxy (LPE) Breakthrough

Jiangsu Jixin Advanced Materials unveiled China’s first 8-inch LPE-grown SiC monocrystal—a milestone achieved within six months. Compared to conventional PVT methods, LPE offers superior crystal uniformity, defect control, and material utilization, with 167 patents (83 inventions) securing its technological edge. This leap accelerates low-cost, high-yield SiC substrate production for EVs and renewable energy applications.

Jiangsu Jixin Advanced Materials unveiled China’s first 8-inch LPE-grown SiC monocrystal—a milestone achieved within six months. Compared to conventional PVT methods, LPE offers superior crystal uniformity, defect control, and material utilization, with 167 patents (83 inventions) securing its technological edge. This leap accelerates low-cost, high-yield SiC substrate production for EVs and renewable energy applications.

3. Unified Standards for High-Purity SiC Powder

China’s Electronic Materials Industry Association released the Group Standard for High-Purity Silicon Carbide Powder for Crystal Growth (T/CEMIA 049-2025), effective November 2025. The standard mandates ≥99.9999% purity (6N-grade) and harmonizes critical metrics like impurity limits and particle size distribution. This addresses historical quality inconsistencies, reduces verification costs, and accelerates domestic substitution in the semiconductor supply chain.

1. Supply-Demand Recalibration

• Regional Output Divergence:Southwest China (Sichuan/Yunnan) leveraged hydropower-rich wet-season conditions to ramp up production, while Xinjiang’s output cuts by leading enterprises fell below expectations. National output rose modestly in July but remains 20% lower YoY for Jan-Jul.  
• Demand Fragmentation:Robust steel sector consumption contrasts with weak non-steel demand (e.g., metal magnesium and exports). High inventory levels persist, reflecting muted downstream absorption.

2. Policy-Driven Restructuring

Industrial silicon producers face intensified pressure from China’s "anti-overcapacity" policies, targeting consolidation in polysilicon and photovoltaic sectors. Regulatory interventions cooled speculative futures trading, triggering sharp contract corrections as market sentiment shifted to fundamentals.  

3. Technology as a Survival Tool

At the 20th Industrial Silicon Development Forum (Kunming), industry leaders emphasized innovation for cost optimization. Sichuan-based producers are adopting DC furnace smelting and AI-driven automation, while Yunnan struggles with outdated equipment and insufficient policy support. Industry-wide, green manufacturing integration with renewable energy emerged as a strategic imperative.  

Sector-Wide Initiatives and Outlook

1. Global Silicon Trade Expo (Cleveland, Sept 9–11)

The premier North American event will spotlight semiconductor-grade materials and silicone elastomer applications, convening 190+ exhibitors and 3,000+ buyers to address supply chain realignments amid trade barriers.

2. Short-Term Trajectories

• Silicon Carbide:Continued price moderation is expected through 2025, driven by substrate yield improvements, though declines will narrow. LPE and laser spalling technologies may reshape global competitiveness by 2026.  
• Ferrosilicon:Supply-demand balance hinges on regional power policies and steel sector resilience. Inventory digestion and polysilicon consolidation remain critical watchpoints.