China's SiC race shifts from EVs to AI data centers as SICC overtakes Wolfspeed

China’s strategic pivot of SiC adoption from EVs to AI data centers signals a fundamental revaluation of wide-bandgap semiconductor demand drivers. Technically, the push for >800V power delivery in AI racks demands substrate defect densities below 1/cm², favoring domestic players with proprietary PVT furnace capabilities. On compliance, U.S. export controls on epitaxy tools have raised non-U.S. fab costs, yet China’s maturing MOCVD ecosystem is mitigating supply rupture risks. Competitively, Wolfspeed will likely deepen alliances with Infineon and STMicro to secure European automotive contracts as a hedge against Asian price wars, while Chinese leaders like SICC target NVIDIA’s GB200 NVL72 power chain. Over the next 18 months, data-center SiC modules will sustain gross margins above 45%—well beyond the ~30% in automotive—redirecting global capital flows and redrawing value capture in the WBG semiconductor landscape.