Silicon Carbide Industry Enters Accelerated Phase Amid Technological Breakthroughs and Strategic Alliances

The global silicon carbide (SiC) industry is witnessing unprecedented growth, driven by material science innovations, expanding applications beyond electric vehicles, and collaborative efforts to standardize critical technologies. Recent developments highlight significant progress in substrate scaling, manufacturing efficiency, and cross-industry partnerships, positioning SiC as a cornerstone of next-generation electronics, AI infrastructure, and sustainable energy systems

1. Substrate Technology Advancements: Larger Wafers and Higher Yield

The race to scale up SiC substrate dimensions has gained momentum, with 12-inch wafers emerging as a focal point for reducing long-term production costs. China achieved a milestone with its first fully autonomous 12-inch SiC pilot line, launched by Jingcheng Electromechanical in September 2025. This line features 100% domestically developed equipment, underscoring progress in supply chain localization. Compared to mainstream 8-inch wafers, the 12-inch format boosts chip output per wafer by approximately 2.5 times, enhancing production efficiency for future high-volume demand.

Concurrently, Toyota Central R&D Labs demonstrated a leap in crystal growth technology, achieving 70mm-thick 6-inch SiC crystals with a yield exceeding 80%. By refining physical vapor transport (PVT) systems with thermal-equilibrium insulation layers and optimized graphite components, the team addressed long-standing challenges in material utilization and defect control-9. Such innovations are critical to lowering substrate costs—a persistent barrier to broader SiC adoption.

2. Manufacturing Expansion and Localization Trends

Global SiC manufacturing capacity is expanding rapidly. Wolfspeed commenced large-scale commercialization of its 200mm SiC product portfolio in September 2025, responding to robust customer feedback. Similarly, GlobalWafers acknowledged underestimating demand for 8-inch SiC and accelerated capacity builds, targeting volume production by 2025 and aiming for 8-inch wafers to surpass 6-inch output by 2026.

In China, domestic firms are gaining prominence. TianYue Advanced and San’an Optoelectronics have rolled out 12-inch and 8-inch substrate solutions, respectively, while Starpower and Silan Microelectronics advanced their 6-8-inch SiC chip production lines. Collective efforts contributed to China’s share of the global SiC substrate market rising from 35% in 2024 to an anticipated 60% in 2025.

3. Strategic Collaborations Focus on Standardization and Supply Resilience

Alliances to streamline design and sourcing processes marked another industry trend. In October 2025, Infineon and ROHM agreed to collaborate on package compatibility for key SiC power devices, establishing each other as second-source suppliers. This initiative covers top-side cooling platforms (e.g., TOLT, D-DPAK) and module designs like DOT-247, giving customers greater flexibility and reducing procurement risks.

Downstream, IC Nexus and Li Auto celebrated the mass production and delivery of SiC products for Li’s pure-electric vehicle series. Their partnership, solidified through a 2024 strategic agreement, exemplifies deepening integration between semiconductor suppliers and automotive OEMs to optimize performance metrics like on-resistance and thermal stability.

4. Diversifying Applications: From AI Data Centers to Consumer Electronics

SiC’s role in powering AI data centers is expanding. As server rack power densities climb to hundreds of kilowatts, SiC MOSFETs enable power supply units (PSUs) to achieve efficiencies exceeding 99%. The high-power PSU market (≥3kW) is projected to grow at a CAGR of 15.5%, with SiC-based solutions capturing 24% of penetration by 2030, up from 10% in 2025.

Beyond energy infrastructure, SiC is penetrating consumer optics. With AR glasses poised to become the next mainstream computing platform, companies like TianYue Advanced and San’an Optoelectronics are supplying SiC optical substrates to Meta and other AR manufacturers. These substrates address critical limitations in field of view, power consumption, and device thickness, creating a new growth vector for the industry.

5. Capital Investment and Global Competitive Landscape

Despite concerns over near-term oversupply, investment in SiC technologies remains strong. Hanxin Technology secured over ¥200 million to establish a second headquarters in Xi’an and accelerate SiC core product development. Zhongke Guangzhi also received thousands of millions in state-backed funding to advance high-precision die-attach equipment for SiC chip packaging.

Internationally, Wolfspeed maintained its lead with 34% of the global substrate market in 2024, but Chinese players like Tianke Heda and Zhongke Gangyan are closing the gap, each holding about 17% market share.

Conclusion

The SiC industry is transitioning from a focus on electric vehicles to a multi-sector enabler of energy efficiency and advanced computing. Breakthroughs in wafer size, crystal growth, and manufacturing localization—coupled with stronger ecosystem collaboration—are paving the way for SiC’s ubiquitous adoption. As global demand for efficient power solutions accelerates, SiC technology stands to play an integral role in shaping a sustainable, digitally connected future.