Silicon carbide (SiC), a core material of wide‐bandgap semiconductors, is entering a rapid development cycle driven by simultaneous advances in materials technology and surging demand in high-efficiency power electronics. With superior attributes such as high breakdown voltage, wide bandgap, high thermal conductivity and low switching losses, SiC is becoming indispensable in electric vehicles, renewable energy, power grids, industrial systems and aviation-grade power electronics.

The industry is shifting from “technology validation” to scaled commercialization, opening a crucial strategic window for accelerated growth.

1. Demand and Technology Reinforce Each Other:

SiC Enters a High-Speed Development Phase**

Global electrification, decarbonization and digital power systems are pushing semiconductor requirements far beyond what silicon can support. SiC devices—Schottky diodes, MOSFETs and power modules—deliver higher efficiency, smaller size and better thermal performance, making them ideal for:

• EV traction inverters

• On-board chargers (OBC) and fast-charging systems

• Solar inverters and energy-storage converters

• High-frequency industrial power supplies

• Power grid conversion and transmission equipment

Electric vehicles remain the strongest driver, especially with the adoption of 800-V high-voltage platforms, which significantly increase SiC device consumption per vehicle. Meanwhile, renewable energy, energy storage and industrial automation are steadily increasing SiC penetration in high-performance power electronics.

2. Structural Upgrade Across the Entire Supply Chain

The SiC supply chain spans substrates, epitaxy, device manufacturing, packaging and system integration. As demand escalates, the global competitive landscape is shifting toward deeper collaboration and vertical integration.

(1) Upstream: Larger Substrates and Lower Defect Density

SIC Substrates constitute the most challenging and highest-value segment. The industry is moving from 4-inch and 6-inch wafers toward 8-inch, with early development of 12-inch platforms.

Key breakthroughs include:

• Enhanced control of basal plane dislocations and micropipe defects

• Stable growth of larger single-crystal boules

• Improved uniformity of epitaxial layers

• Higher yield in wafering, polishing and crystal shaping

Larger wafers are essential to reducing cost per ampere and enabling higher voltage devices in applications such as grid converters and high-power traction systems.

(2) Midstream: IDM and Process Integration Become Core Competitiveness

Manufacturing SiC devices requires significant expertise in:

• Advanced MOSFET designs (low Rds(on), high voltage, high reliability)

• High-temperature ion implantation and activation

• Optimized epitaxial doping profiles

• Metallization and passivation technologies

• High-temperature, high-current test and reliability evaluations

IDM (Integrated Device Manufacturer) models—unifying design, manufacturing and packaging—are gaining traction as they shorten development cycles, improve yield and accelerate product iteration.

(3) Downstream Applications: EVs Lead, Energy and Industrial Markets Expand

The penetration of SiC in EVs continues to rise, particularly in:

• Traction inverters

• 800-V fast charging platforms

• DC–DC converters

• Electric drive systems

Beyond automotive, new high-value sectors are rapidly adopting SiC:

• Solar + energy storage: higher conversion efficiency and lower cooling requirements

• Power transmission: flexible DC substations, grid-level converters

• Industrial systems: robotics, servo drives, industrial power supplies

• Aerospace and defense: small size, lightweight, high-temperature operation

These diverse scenarios are unlocking long-term growth momentum for SiC.

3. Core Challenges Remain: Technology, Cost and Supply Chain Pressure

Despite strong momentum, the SiC industry still faces several structural obstacles:

Challenge 1: High Technical Barriers

Key bottlenecks include:

• Controlling dislocation density in large substrates

• Achieving uniform, thick, high-quality epitaxy

• Improving MOSFET channel mobility

• Enhancing long-term reliability under high temperatures and high voltages

These challenges limit yield improvement and slow down large-scale expansion.

Challenge 2: Cost Reduction Still Lagging Market Expectations

SiC devices are 3–5 times more expensive than silicon solutions.
Main reasons include:

• High cost of substrates

• Low yield during early stages of 8-inch production

• Expensive specialized equipment (epitaxy reactors, implantation systems)

• High depreciation cost of production lines

Cost remains the primary constraint for mid-range consumer and industrial applications.

Challenge 3: Supply Chain Resilience Needs Improvement

Some critical upstream equipment and materials still rely on overseas suppliers, and the long lead time of specialized tools affects the pace of expansion. Building a more resilient, localized supply chain is essential for long-term stability.

4. Future Direction: Competition Shifts from Single Devices to System-Level Capability

The next phase of the SiC industry will be shaped by three major trends:

Trend 1: Higher Voltage, Higher Efficiency, Higher Reliability

Advances will focus on:

• Ultra-high-voltage MOSFETs

• Trench structure optimization

• Low-loss epitaxial designs

• High-thermal-conductivity packaging

These improvements will unlock new applications in grid-level and industrial power equipment.

Trend 2: Vertical Integration as a Key Competitive Advantage

As customer requirements emphasize performance, reliability and delivery capability, deep integration from substrate to module becomes increasingly important.

Cost, yield and time-to-market will differentiate future leaders.

Trend 3: Application Expansion Will Create a Trillion-Dollar Market Opportunity

Three core application engines are forming:

1. Electric vehicles (traction inverters, fast charging)

2. Power grid transformation (flexible DC, HVDC systems)

3. Energy storage and renewable energy (higher efficiency inverters)

Industrial drives, aviation power and automation equipment will provide sustained incremental demand.

5. Investment Perspective: Structural Opportunities Are Becoming Clear

Three directions offer the most compelling medium-to-long-term opportunities:

(1) Upstream Substrates and Epitaxy

Large-diameter, low-defect wafers and advanced epitaxy remain the most deterministic growth segments.

(2) High-Voltage, High-Power Devices

Device manufacturers focusing on high-performance MOSFETs and power modules will benefit from rising penetration in energy and grid applications.

(3) System-Level Applications

EV platforms, energy storage converters and high-efficiency industrial electronics will generate sustained multi-year demand expansion.

Conclusion

The global SiC industry is transitioning from early adoption to accelerated scale-up. With breakthroughs in materials, growing production capacity and rapidly expanding application scenarios, SiC is reshaping the future of power electronics.

The coming years will be a decisive period—those who achieve system-level leadership across materials, devices and applications will shape the next generation of high-efficiency power technologies.