On November 6, 2025, Beijing - In the field of third-generation semiconductor materials, Chinese companies have made breakthrough progress in the research and development of silicon carbide (SiC) substrates and powders, becoming a key force in the global industrial chain restructuring. According to industry data, the market size of silicon carbide substrates in China is expected to exceed 5 billion yuan by 2025, with a compound annual growth rate of over 40%. The domestication rate in downstream electric vehicles, energy storage, and photovoltaic fields is steadily increasing.


Leading technology among top enterprises, mass production of 8-inch substrates is imminent
Relying on the advantages of industrial silicon integration, Hesheng Silicon Industry has entered a harvest period in the research and development of silicon carbide business. The company has achieved small-scale production of 8-inch silicon carbide substrates, and the research and development of 12 inch substrates has been smoothly promoted. At the same time, ultra-high purity silicon carbide ceramic powder and high-purity semi insulating silicon carbide powder have been developed to meet the needs of high-end fields such as semiconductors, thermal spraying, and optical waveguides. According to a research report by Huachuang Securities, Hesheng Silicon Industry is located on the far left side of the industry's cost curve, and its silicon carbide business is expected to become its second growth pole.


Collaborative innovation of industrial chain, solving the bottleneck problem
Domestic enterprises accelerate technological iteration through industry university research cooperation. On October 30th, Yongxiu County, Jiangxi Province held a special matchmaking meeting for organic silicon new materials. Universities such as Hubei University of Technology and Wuhan University of Technology reached four cooperation intentions with local enterprises, focusing on key technologies such as silicon carbide power device packaging materials. In addition, the "Semiconductor Material Certification Accelerator" of China Research Institute Puhua is helping domestic enterprises overcome TSMC's supply chain, and the dependence on electronic grade silicone oil imports is expected to drop below 30% by 2025.


International giants increase their layout, with vast space for domestic substitution
The global silicon carbide market presents a pattern of "dual dominance of China and the United States". Companies such as Cree from the United States and Infineon from Germany dominate the high-end substrate market, while Chinese companies have shown outstanding performance in equipment localization rate and cost advantages. For example, equipment manufacturers such as Northern Huachuang and Zhongwei Company have achieved independent and controllable MOCVD (Metal Organic Chemical Vapor Deposition) equipment, promoting the domestic substrate yield to over 70%. According to estimates, the market size of silicon carbide devices in China will reach 30 billion yuan by 2027, with the automotive grade market accounting for over 60%.


Driven by both policy and capital, the industry has entered a period of large-scale expansion
The National Manufacturing Fund continues to increase investment in the field of silicon carbide, with over 10 investment projects disclosed by 2025, covering the entire chain of substrates, epitaxy, and devices. At the local level, Zhejiang, Jiangsu and other regions have introduced special policies to provide up to 30% subsidies for the construction of silicon carbide production lines. On the enterprise side, listed companies such as Sanan Optoelectronics and Tianyue Advanced are accelerating their capacity expansion. It is expected that by 2026, China's silicon carbide substrate production capacity will account for more than 50% of the world's total, completely reversing the dependence on imports.


Industry experts say that with the popularization of 800V high-voltage platforms in the electric vehicle field, the demand for silicon carbide devices will experience explosive growth. The comprehensive advantages of Chinese enterprises in technology, cost, and market response speed are expected to promote the reshaping of the global silicon carbide industry pattern.