Exclusive: China tightens its grip on Silicon Carbide as the industry shifts to 8-inch wafers - digitimes

At Computex 2026, the rapid evolution of AI data center infrastructure dominated the spotlight, with silicon carbide (SiC) emerging as a key compound semiconductor material drawing renewed attention. ... Read original →

China’s tightening control over 8-inch silicon carbide wafer production is a strategic maneuver targeting AI data center power systems, not merely capacity scaling. Technically, the shift demands breakthroughs in substrate defect density, epitaxial uniformity, and equipment compatibility—gaps that could widen between domestic players and leaders like Wolfspeed if unaddressed. Regulatory constraints may raise overseas operational costs for Chinese firms but simultaneously force global customers to reassess the viability of de-risking from China. In response, the U.S., Japan, and Europe will likely accelerate alternative investments in Vietnam or India, though SiC’s long qualification cycles limit near-term supply chain diversification. Over the next 12–24 months, China could leverage scale to undercut 6-inch SiC pricing, squeezing smaller competitors while locking in AI server OEMs with 8-inch roadmaps—effectively redrawing the global power semiconductor hierarchy.