China’s strategic price cuts on silicon carbide substrates challenge global competitors, leveraging technological advancements to dominate the semiconductor supply chain.
China’s aggressive pricing strategy for silicon carbide (SiC) substrates is sending shockwaves through the global semiconductor industry. With price reductions of up to 30% reported in Q1 2025, Chinese manufacturers are leveraging domestic technological breakthroughs to undercut international competitors. This move aligns with Beijing’s ‘Made in China 2025’ initiative, which prioritizes semiconductor self-sufficiency and global market dominance.
China’s silicon carbide offensive
According to industry reports from Semiconductor Today, Chinese manufacturers including SICC and TankeBlue have reduced SiC substrate prices by 25-30% since January 2025. This follows breakthroughs in crystal growth techniques that improved yields by 40%, as announced in their joint press release last December.
Dr. Liang Wei, semiconductor analyst at TechInsights Asia, notes: ‘The price cuts aren’t just about market share – they’re demonstrating China’s mastery of the entire SiC value chain from raw materials to finished wafers.’
Global competitors respond
International players are feeling the pressure. Wolfspeed’s Q2 earnings call revealed plans to accelerate their 200mm wafer transition, while South Korea’s SK Siltron announced a $500 million expansion of their SiC production capacity in a recent investor briefing.
Taiwan’s GlobalWafers took a different approach, focusing on quality differentiation. ‘Our defect density remains 60% lower than mainland competitors,’ claimed CEO Doris Hsu during the SEMICON Taiwan keynote last month.
Long-term market implications
The price war comes as SiC adoption grows in electric vehicles and renewable energy. Market research firm Yole Développement projects the SiC power device market will reach $8 billion by 2027, with China controlling 35% of substrate supply.
However, concerns persist about sustainability. ‘Such aggressive pricing could trigger anti-dumping investigations,’ warns trade analyst Mark Johnson at Eurasia Group. The European Commission has already begun monitoring the situation, according to internal documents seen by Reuters.
