Current market situation

According to the analysis of the compound semiconductor supply chain, there are approximately 8-9 companies that have obtained production licenses for 8-inch SiC substrates. Among them, not only companies mainly based on 6-inch substrates such as Shandong Tianyue, Tianke Heda, Tongguang, Shuoke, Sanan, but also emerging enterprises such as Nansha, Jingsheng, Zhongdian, and Tony have successfully entered the market.

At present, about two 8-inch SiC substrate companies are far ahead in terms of output scale, while the other four are considered potential stocks, and the market is highly concerned about their dynamics. It is widely expected in the industry that other newly entered companies will soon be involved in this fiercely competitive "internal competition war".

Market competition and price fluctuations

Now, the SiC market is in a fiercely competitive stage, especially in the 6-inch SiC substrate market where the phenomenon of internal competition is particularly severe, and prices have fallen below production costs. With this vicious competition, the scarce and promising 8-inch SiC substrate has become a winning weapon for major competitors.

For those enterprises that have mastered the mass production technology of 8-inch SiC substrates, as long as they can survive this difficult market downturn, they are likely to occupy a leading position in the domestic SiC market. The government's support for the semiconductor industry has always been "selective support", so only those enterprises that can stand out in fierce competition can enjoy the next round of policies and resource allocation.

Price and Capacity of 8-inch SiC Substrate

In the past two years, the price of 6-inch SiC substrates has been significantly declining, even falling below production costs at one point, which has to some extent delayed the popularity of 8-inch SiC substrates. Nevertheless, the price target for 8-inch SiC substrates at the beginning of 2025 is still set at $700 per piece, which is significantly lower than the $1500 price at the end of 2024.

From the perspective of the semiconductor supply chain, the area of an 8-inch SiC substrate is approximately 1.77 times larger than that of a 6-inch substrate. This means that as 12 inch manufacturing of silicon-based (Si) wafers gradually replaces 6-inch, if existing 6-inch production equipment can be transformed into SiC production, it can not only inject new vitality into the equipment, but also create higher production efficiency than 6-inch SiC substrates.

Market Prospects: Opportunities in the Electric Vehicle and Photovoltaic Markets

At present, the market performance of SiC's two main application areas - electric vehicles and solar inverters - is relatively sluggish. However, international semiconductor giants have not stopped because of this and have increased their certification and investment in 8-inch SiC substrates, striving to enhance the cost competitiveness of SiC substrates through vertical integration of supply chains. Once the market recovers, the application prospects of 8-inch SiC substrates will quickly open up.

Layout of international manufacturers

International manufacturers have also made new progress in the technological layout of 8-inch SiC substrates** Infineon has announced the delivery of the first batch of 8-inch SiC wafer process products in mid February 2025, which means that the mass production of 8-inch SiC substrates has gradually entered the right track. In the mass production process of 8-inch SiC substrates, Wolfspeed， As a leader in the industry, it has encountered bottlenecks in quality and cost control, leading to a significant decline in its performance, which has become a warning in the industry.

conclusion

Overall, with the intensification of market competition and the intensification of price wars, 8-inch SiC substrates are expected to become the winning weapon in the SiC market in the coming years. Despite the current price decline and overcapacity issues, the market prospects for 8-inch SiC substrates remain broad with the maturity of technology and the recovery of market demand. For domestic enterprises, especially those that have already mastered the production technology of 8-inch SiC substrates, if they can persist in this low period, they will have the opportunity to occupy a place in the global SiC market in the future.