On November 4, 2025, Urumqi, Xinjiang - As a global leader in industrial silicon and organic silicon, Hesheng Silicon Industry has achieved a key breakthrough in its layout in the third-generation semiconductor field. Recently, the company announced the large-scale production of 8-inch silicon carbide substrates, and the development of 12 inch substrates has entered the sprint stage. At the same time, the high-end silicon carbide powder project has passed customer certification, marking China's official breaking of international monopoly in the field of silicon carbide materials.


Capacity release: 8-inch substrate yield exceeds 90%
In the silicon carbide workshop of Hesheng Silicon Industry in Shanshan Industrial Park, Xinjiang, 30 single crystal furnaces operate 24 hours a day and can produce 12000 8-inch substrates per month. Our yield rate has stabilized at over 92%, reaching the international first-line level, "said Chen Lei, General Manager of the Silicon Carbide Division of Hesheng Silicon Industry. It is reported that the company adopts the independently developed "multi zone infiltration method" process to control the substrate resistivity uniformity within ± 5%, which is three times higher than traditional processes.


At present, Hesheng Silicon has signed long-term supply agreements with companies such as CRRC Times Electric and Huawei Digital Energy, with orders exceeding 500000 pieces in the fourth quarter of 2025. In the past, 90% of the silicon carbide substrates used in domestic new energy vehicle inverters relied on imports. Now, our costs are 20% lower than imported products, and the delivery cycle is shortened by half, "said Chen Lei.


Powder breakthrough: customized products covering multiple fields
In the powder stage, Hesheng Silicon Industry has successfully developed two categories of high-end products: one is ultra-high purity silicon carbide ceramic powder, with a purity of 99.9999%, which can meet the needs of semiconductor, thermal spraying and other fields; The second is high-purity semi insulating silicon carbide powder, suitable for the growth of silicon carbide gemstone crystals and optical waveguide chips. In the first three quarters of 2025, the company's sales of silicon carbide powder increased by 300% year-on-year, with exports accounting for 45%.


Powder is the 'chip' of the silicon carbide industry chain. In the past, we were choked by Sumitomo Chemical of Japan and Cree of the United States, but now our product performance has exceeded expectations. ”Li Hua, R&D Director of Hesheng Silicon Industry, said. Data shows that by 2025, the company's R&D investment will reach 371 million yuan, with silicon carbide accounting for over 60% of the total. The company has applied for 127 patents and led the development of 3 industry standards.


Strategic synergy: Empowering the cost advantage of industrial silicon
The rise of Hesheng Silicon Industry's silicon carbide business cannot be separated from the collaborative support of its industrial silicon industry chain. The company has its own power plants in Xinjiang, Yunnan and other places, with electricity costs 15% lower than the industry average; At the same time, through the vertical integration layout of "siloxane rubber product", the comprehensive cost of industrial silicon to silicon carbide substrate has been reduced by 22%. Our industrial silicon production capacity accounts for 35% of the world's total, which is an advantage that no competitor can replicate, "emphasized Luo Liguo, Chairman of Hesheng Silicon Industry.


According to a research report by Open Source Securities, with the mass production of 8-inch substrates and breakthroughs in 12 inch substrates, the revenue of Hesheng Silicon Industry's silicon carbide business is expected to exceed 5 billion yuan in 2026, accounting for 15% of the company's total revenue and becoming the second growth pole. Huachuang Securities pointed out that in the context of the global silicon carbide market reaching $30 billion by 2029, Hesheng Silicon Industry is expected to occupy more than 20% of the global market share with its cost and technology advantages.


Industry impact: forcing international giants to adjust their strategies
The rise of Hesheng Silicon Industry has triggered a chain reaction among international silicon carbide giants. In October 2025, Infineon announced that it will build a silicon carbide power module packaging line in China and open substrate procurement to Chinese suppliers for the first time; Wolfspeed in the United States has postponed the expansion plan of its 8-inch factory in New York State and instead sought technical cooperation with Hesheng Silicon Industry.


The explosion of China's silicon carbide industry is reshaping the global semiconductor materials landscape, "said Zhang Wei, an expert at the China Electronic Materials Industry Association." In the next three years, China will form a three strong pattern of Hesheng Silicon Industry, Tianke Heda, and Shandong Tianyue. The shift in attitude of international giants from 'blockade' to 'cooperation' precisely proves the irreplaceability of Chinese technology