Silicon carbide (SiC) raw material and substrate-grade SiC

Why the concentration exists

4H-SiC serves as the power semiconductor standard, while 6H addresses niche applications and 3C remains in research and development. Semiconductor-grade silicon carbide quality has only surfaced for utilization in the last few decades, which contrasts with the mature silicon supply chain supporting logic, analog, MEMS, and photovoltaic applications. This relative immaturity reflects the technical complexity of achieving consistent purity and crystal structure at scale.[4][7]

SiC substrates account for nearly half of the total cost of power devices, while the epitaxy layer contributes roughly 25 percent. This cost structure places enormous pressure on substrate yield and defect rates throughout the production chain. Any improvement in material utilization directly impacts device economics and competitive positioning.[20]

Today's mainstream diameters are 100mm and 150mm, with 200mm scaling now underway across the industry. As SiC wafers increase from 6-inch to 8-inch diameters, the number of chips produced per wafer can increase by up to 75 percent. This transition requires new equipment, process development, and qualification cycles that extend the timeline for capacity expansion.[4][20]

What the evidence shows

Who supplies it

Wolfspeed manufactures over 60 percent of the world's silicon carbide wafers at its headquarters in Durham, North Carolina. STMicroelectronics enjoyed a 32.6 percent market share in the 2023 world ranking of major SiC suppliers, while onsemi held a 23.6 percent share. These figures reflect the device-level market, which differs from substrate production shares.[10][17]

Key companies in the high-purity SiC powder market include Nanomakers, Washington Mills, Fiven, Stanford Advanced Materials, Wolfspeed, Coherent, SK Siltron, SiCrystal, STMicroelectronics, TankeBlue, SICC, Hebei Synlight Semiconductor, Shanxi Semisic Crystal, and Pacific Rundum. In 2024, the global top 10 high-purity SiC powder manufacturers held a combined market share of approximately 67 percent in terms of revenue. The SHS method represents the largest product segment with a 65.3 percent share.[15][12]

What it depends on, and what depends on it

High-purity SiC powder with purity of 99.9999 percent (6N) serves as the raw material for SiC substrate-grade crystal growth. SiC wafer represents the largest application segment with a 78.6 percent share in the high purity SiC powder market. Manufacturers offer powder in particle sizes ranging from nanometers to micrometers to support different crystal growth processes.[14][12][13]

Where it sits in the stack

What would break it

The supply chain for semiconductor-grade SiC is moving toward a vertically integrated model to mitigate the risks of substrate shortages. Companies like STMicroelectronics are building fully integrated facilities that control everything from raw material to finished device. This integration reduces exposure to external substrate supply constraints and improves margin capture.[2][16]

Studies suggest that splitting or reusing a monocrystalline SiC wafer with engineered wafer technologies can yield two to ten times as many engineered wafers. This approach increases effective wafer capacity without requiring additional boule growth. By cutting the kerf from 220 to 143 microns, material utilization improves from 52 to 71 percent.[1][5]

Exploring alternative silicon carbide raw materials and epitaxial growth techniques builds redundancy and reduces dependence on constrained inputs like seed crystals and carbon sources. Adjusting the proportion of raw materials enables the reaction of Si powder in cutting waste with carbon to be completely converted into SiC. This recovery process increases the output of SiC crystals from existing material flows.[3][6]

What to watch

Rohm plans to manufacture 8-inch (200mm) silicon carbide wafers in its second factory in Miyazaki Prefecture, Japan, with operations expected to commence in 2024. Mitsubishi Electric plans to commence construction of a new 8-inch SiC fab in Kumamoto Prefecture, Japan, in April 2024, with operations scheduled to start in April 2026. Bosch expects to begin producing 200mm SiC wafers in 2026 at its Roseville, California facility.[8][9][11]

Wolfspeed announced the commercial launch of its 200mm SiC materials products on September 10, 2025. The company is offering 200mm SiC epitaxy for immediate qualification, paired with 200mm bare wafers. The 200mm SiC bare wafers feature improved parametric specifications at 350µm thickness.[19]

STMicroelectronics will begin production at its Catania, Italy facility in 2026, with a goal of producing up to 15,000 wafers per week by 2033. Mersen expects to invest Euro 85 million between 2023 and 2025 to accomplish a potential manufacturing capacity of 400,000 wafers (150mm) by 2027. onsemi completed its Bucheon, South Korea fab expansion in September 2023, which at full capacity can manufacture more than one million 200mm SiC wafers per year.[16][9][18]

Related nodes

Sources

1. mckinsey.com · 2024-08-06T00:00:00
2. knowledge-sourcing.com · 2026-04-10T00:00:00
3. hiitiosemi.com · 2026-02-27T09:00:53
4. universitywafer.com · 2018-10-01T14:24:01
5. wiresawcutter.com · 2026-06-04T03:45:06
6. sciencedirect.com · 2024-12-27T00:00:00
7. arrow.com · 2023-06-22T15:06:00
8. digitimes.com · 2024
9. trendforce.com · 2024-03-19
10. trendforce.com · 2024-04-01
11. trendforce.com · 2024-12-23
12. globalinforesearch.com · 2025-10-15
13. semi-cera.com
14. fushel.com
15. qyresearch.com
16. microchipusa.com · March 6, 2026
17. powerelectronicsnews.com · 2023
18. onsemi.com · October 24, 2023
19. wolfspeed.com · 2025-09-10
20. sic-wafers.com