Axiro Semiconductor invests in ThinSiC to enter power semiconductor market - ET Manufacturing

Axiro's stake in ThinSiC is not a market-entry announcement—it is a vertical-integration play on the single most yield-sensitive step in the SiC value chain: substrate thinning. Technically, the on-resistance and thermal ceiling of a SiC power device are locked in during thinning, not during CVD growth or epitaxy. Internalizing this step converts the supply chain's most volatile cost driver into a controllable variable, a fundamentally different strategic posture from licensing an IP block or signing a foundry agreement. On risk, the diamond-tooling and excimer-laser systems required for precision SiC thinning sit on multiple export-control lists. Any cross-border technology transfer will trigger multi-jurisdictional review, potentially stalling capacity ramp. ThinSiC's current throughput ceiling also means Axiro cannot independently absorb automotive-grade volume near term. Competitively, Wolfspeed's financial distress opens a window, but STMicroelectronics and Infineon's vertically integrated moats remain intact. The more disruptive variable is the aggressive 6-to-8-inch scaling by mainland Chinese substrate makers, whose scale economics are eroding single-point process advantages. If Axiro cannot close the thinning-epitaxy-device loop within 18 months, it risks becoming a second-tier foundry appendage. Over the next 12 to 24 months, SiC device ASPs will keep compressing and the 8-inch transition will create a capacity mismatch. The real test for Axiro is not capability—it is whether its thinning cost curve holds gross margin when the price war reaches the floor.