Exclusive: How China's subsidized SiC boom is driving global prices to the floor - digitimes

Chinese silicon carbide (SiC) substrate manufacturers continue to slash prices despite operating on razor-thin margins, highlighting the intensity of a price war reshaping the global compound semicond... Read original →

Fueled by state subsidies and aggressive capacity expansion, Chinese SiC substrate makers are flooding global markets below cost, squeezing margins for incumbents like Wolfspeed and II-VI while forcing equipment suppliers to accelerate 8-inch crystal growth R&D. Although downstream device makers gain short-term material cost relief, long-term supply chain sovereignty is at risk—overreliance on cheap Chinese substrates erodes technological autonomy. The U.S. and EU are now evaluating export controls on semiconductor materials, raising compliance burdens. In response, global players will likely pivot toward IDM integration or high-reliability niches like automotive and aerospace to build defensible moats. Over the next 12–24 months, a brutal consolidation wave will eliminate subsidy-unbacked competitors, leaving only those with generational tech leads and deep customer lock-ins. This state-capital-driven overcapacity is fundamentally shifting compound semiconductors from a performance-centric to a cost-dominated paradigm.