6-Inch SiC Substrate Prices Bottom Out and Rebound as Supply Tightens
Claire Weston
A nearly two-year price decline in 6-inch silicon carbide substrates has definitively bottomed out; distributors say customers must now accept higher quotes to secure additional volume — rigid demand from EVs and AI data centers is reshaping the supply chain.
Prices fell for two years — where do they stand now?
At the end of Q2 2026, 6-inch SiC substrate channel prices sat at roughly $200–300 per wafer — still in loss-making territory.
This means → most suppliers were losing money on every wafer sold; there was simply no room left for prices to fall further.
Taiwan's supply-chain cost floor is around $300, making it impossible to match mainland Chinese pricing. But as China's prices rebound, the pressure on Taiwanese suppliers is actually easing.
Why did the supply-demand picture flip so suddenly?
AI data centers and EV 800-volt DC systems are creating rigid demand for silicon carbide — a semiconductor material that handles high voltage and heat far better than ordinary silicon. EVs alone consume far more SiC than AI data centers do.
China's State Council published its 15th Five-Year Plan in July 2026, targeting a jump in new-energy-vehicle penetration from roughly 12% to 30% by 2030. This means → the market's forward demand expectations for SiC were sharply revised upward.
In plain terms = more EVs sold means more charging stations, grid upgrades, and energy-storage facilities built — each link in that chain uses SiC, so demand scales as a multiplier, not a simple add.
Geopolitical tensions and AI-driven competition for chip resources are reinforcing the market's view that SiC supply is running tight.
What is the status of Chinese suppliers?
The major 6-inch SiC substrate makers — SICC, TanKeBlue, Semicore (under Jingsheng), and Sanan Optoelectronics — are running at full capacity with full order books, and have told customers their ability to take additional 6-inch orders is limited.
This reflects a reality where capacity has been fully absorbed by demand — it is not that suppliers refuse to sell, but that they have no incremental supply to offer.
SICC and TanKeBlue have secured material-procurement contracts from Bosch and Infineon, widely seen as a historic milestone for China's SiC industry. Sanan is building an 8-inch SiC fab in Chongqing in a joint venture with STMicroelectronics.
Why aren't Taiwanese suppliers expanding 6-inch capacity?
After the violent price swings in 6-inch SiC, Taiwanese suppliers are cautious; utilization rates remain generally low.
Key players include GlobalWafers, Taisic Materials (under Clevo), Taiwan Applied Crystal, Formosa Chemicals & Fibre, and GeChi Compound Semiconductor — all are pivoting to 8-inch products.
In plain terms = Taiwan's strategy is to skip the 6-inch price war and bet directly on 8-inch, where margins should be better.
Can this rebound last — and what should we watch?
Two key variables: whether 6-inch prices truly exit the trough, and how fast 8-inch capacity comes online.
This means → if 8-inch capacity ramps quickly, the 6-inch supply squeeze may prove transitional; if 8-inch production stays delayed, the 6-inch up-cycle could stretch much longer.
This reflects an industry caught in a window where the old wafer size has hit a supply ceiling and the new size has not yet taken over — that mismatch is the core logic behind the current price rebound.
Content is for reference only, not financial advice.