The Global Silicon Carbide Industry Accelerates Amid Intensifying Competition and Supply Chain Reshaping

The global silicon carbide (SiC) industry is entering 2026 with robust momentum, characterized by significant capacity expansions, technological advancements toward larger wafer sizes, and a reshaping competitive landscape as companies worldwide vie for position in this critical semiconductor segment.

Capacity Expansion and Global Footprint Reshaping
A wave of capacity expansion is defining the industry's current phase. A key development is the strategic push by Chinese companies to establish manufacturing bases overseas. Jingsheng Mechanical & Electrical's subsidiary recently completed the main structure of its new manufacturing factory in Malaysia, which is set to become a significant production hub for 8-inch SiC substrates. This move highlights a trend of building supply chain resilience and accessing global markets directly.

Concurrently, international players are consolidating and optimizing their global manufacturing networks. STMicroelectronics has announced comprehensive plans to reshape its manufacturing footprint over the next three years, with a specific focus on 200mm SiC advanced manufacturing infrastructure. Similarly, major manufacturers like ON Semiconductor are advancing their transition to 8-inch wafer production.

Technological Evolution and Market Diversification
The industry's technological roadmap is clearly progressing toward larger diameters. While 6-inch wafers remain mainstream, 8-inch technology is transitioning to high-volume manufacturing. Notably, companies are already setting their sights on the next frontier; Taiwan's Shen Xin Materials, for instance, is developing 12-inch semi-insulating substrates for specialized applications in advanced packaging and thermal management solutions.

Market demand is also diversifying beyond the dominant electric vehicle sector. Emerging applications are gaining traction, including SiC for optical waveguides in AR glasses and its use in thermal management solutions for AI chips and advanced packaging.

Shifting Competitive Dynamics and Supply Chain Strategies
The competitive landscape is undergoing a significant shift. Chinese manufacturers have rapidly advanced their technical capabilities and, leveraging integrated domestic supply chains, have gained considerable market share, particularly in the 6-inch substrate segment. International manufacturers like STMicroelectronics and Infineon maintain leadership in high-end MOSFET products but face intensifying competition.

This environment is prompting strategic realignments. ON Semiconductor is accelerating its transition to a "fab-lite" manufacturing model to enhance competitiveness. Other companies, like Taiwan's GlobalWafers, are emphasizing strategies of cost control and flexible capacity expansion to solidify their position in non-China markets.

Trade and Global Market Outlook
Global trade in silicon carbide remains active, reflecting its strategic importance. The total trade value for SiC reached approximately $1.38 billion in 2022. Major global trade flows see China as the leading exporter, with significant exports also originating from Norway and Brazil. Key import markets include the United States, Germany, and Japan.

Looking ahead, the industry is poised for sustained growth. Market analysts project the global SiC market to maintain a strong compound annual growth rate of over 13.5% from 2026 to 2035, driven by its irreplaceable role in power electronics for electric vehicles, renewable energy, and industrial applications.

The industry's trajectory for 2026 and beyond will be determined by the interplay of massive capacity investments, the successful ramp-up of next-generation wafer technologies, and the ability of companies to navigate an increasingly competitive and geopolitically sensitive global supply chain.