Silicon Carbide (SiC) Wafer Market Size, Share

Silicon Carbide (SiC) Wafer Market Overview

The Silicon Carbide (SiC) wafer Market size was valued at USD 457.27 million in 2024 and is expected to reach USD 1116.97 million by 2033, growing at a CAGR of 10.5% from 2025 to 2033.

The Silicon Carbide (SiC) wafer market is undergoing transformative expansion as demand for high-efficiency semiconductors surges across power electronics, EVs, and telecommunication infrastructure. In 2024, over 1.52 million SiC wafers were produced globally, compared to just 930,000 units in 2021. The 6-inch wafer segment alone accounted for 730,000 units in 2024, reflecting rapid scaling in industrial capacity. China led with the highest volume at 540,000 wafers, followed by the United States with 380,000 and Japan with 210,000 units. More than 73 fabrication facilities across Asia-Pacific, North America, and Europe now process SiC substrates for MOSFETs, Schottky diodes, and JFETs.

SiC wafers provide a breakdown electric field of 3 MV/cm, compared to only 0.3 MV/cm in silicon, enabling 10x smaller and faster-switching devices. In 2024, power device applications used 58% of the global SiC wafer supply, while optoelectronic and RF sectors accounted for 23% and 11%, respectively. Over 2,000 patents were filed in 2023 for SiC substrate and epitaxial layer innovations, highlighting rapid material science advancement. With over 440 million units of EV inverters projected to use SiC chips by 2030, the wafer market remains a linchpin in the next-generation electronics ecosystem.

Key Findings

Top Driver reason: Rising deployment of SiC-based power devices in electric vehicles and renewable energy systems.

Top Country/Region: China leads the global market, producing 540,000 SiC wafers in 2024.

Top Segment: The 6-inch wafer segment dominates, with over 730,000 units manufactured in 2024 alone.

Silicon Carbide (SiC) Wafer Market Trends

The market has witnessed rapid upscaling in wafer production capacity to meet semiconductor foundry demand. In 2024, global SiC wafer production increased by 31% year-over-year, reaching 1.52 million units. Demand from EV inverter manufacturers grew significantly, as over 112 models worldwide incorporated SiC-based power modules. Tesla, Hyundai, and Nio used SiC chips in over 9.2 million EVs in 2024.

The automotive sector remained the largest consumer, accounting for 58% of SiC wafer demand due to the material’s superior thermal conductivity of 4.9 W/cm·K. In contrast, silicon has a thermal conductivity of 1.5 W/cm·K. This enables SiC devices to operate at junction temperatures up to 200°C. In telecommunications, the number of 5G base stations using SiC RF components rose to 580,000 globally, up from 420,000 in 2023.

Wafer prices continued to drop due to economies of scale and vertical integration. The average cost per 6-inch wafer fell by 17% from 2022 to 2024, with leading fabs now able to produce over 14,000 wafers per month. Also notable was the shift from 4H-SiC to 6H-SiC substrates for certain optoelectronic devices, improving mobility performance by 9.3%.

Material improvements were significant. In 2024, more than 1,200 SiC wafers were fabricated using Smart Cut technology, reducing substrate defects by 36%. Advanced chemical-mechanical polishing (CMP) processes achieved sub-2 nm surface roughness, increasing epitaxy yield by 18%. These technological advances signal deeper adoption across compact and high-reliability systems.

Silicon Carbide (SiC) Wafer Market Dynamics

DRIVER

Accelerating demand for high-performance power devices

In 2024, over 28 million SiC-based MOSFETs were used in EV traction inverters and onboard chargers, doubling from 14.3 million in 2022. The higher critical electric field of SiC allows a tenfold reduction in chip area and switching losses, making them ideal for electric drives and solar inverters. In Japan, the installation of SiC inverters in solar farms exceeded 3.8 GW of capacity in 2024. Simultaneously, global railway manufacturers incorporated SiC semiconductors in 3,400 trainsets for improved power efficiency and regenerative braking.

RESTRAINT

Limited wafer supply chain and high defect density

Despite growth, supply chain bottlenecks persist. In 2024, only 11 companies globally produced 6-inch and 8-inch SiC wafers at scale. Yield rates for 6-inch wafers remain below 65% due to micropipe defects. Average dislocation densities range from 5,000 to 8,000 cm², significantly higher than required for high-performance RF applications. These challenges limit downstream adoption and increase production costs by approximately 23% compared to silicon wafers.

OPPORTUNITY

Government incentives for semiconductor manufacturing

In 2023 and 2024, government-backed subsidies exceeded $4.6 billion globally for SiC wafer capacity expansion. China allocated $1.7 billion for localized SiC fabs, resulting in five new wafer plants starting operations in 2024. The U.S. granted $800 million through the CHIPS Act for domestic SiC foundries, while the EU pledged €900 million under IPCEI to support wide-bandgap materials. These funds are expected to add 620,000 units/year in additional capacity by 2026.

CHALLENGE

High capital expenditure for SiC wafer production

Establishing a SiC wafer facility costs 2.4x more than traditional silicon fabs. A single 6-inch SiC wafer production line requires approximately $180 million in capital investment. In 2024, only seven players worldwide possessed the capability to vertically integrate from bulk crystal growth to wafer polishing and epitaxy. Moreover, the equipment required—such as hot-wall reactors and high-precision CMP tools—is often customized, leading to longer procurement and installation lead times of up to 18 months.

Silicon Carbide (SiC) Wafer Market Segmentation

By Type

2 Inch: In 2024, 2-inch wafers accounted for just 4% of total shipments, mainly used in niche optoelectronics and R&D. Around 64,000 units were fabricated globally, primarily for laser diodes and microwave components. These wafers continue to be used by university labs and startups due to cost constraints and legacy tooling.
3 Inch: 3-inch wafers contributed 8% of production, totaling nearly 120,000 units in 2024. These are utilized in small-scale industrial power supplies and specialized RF modules. Production is largely centered in Germany and Japan, with over 21 facilities still maintaining 3-inch lines.
4 Inch: With 280,000 units produced in 2024, 4-inch wafers held 18% of the market. These wafers were used in motor controllers, EV power modules, and industrial drives. Japan produced over 96,000 4-inch wafers, while Europe accounted for another 71,000 units.
6 Inch: The most in-demand size, 6-inch wafers, saw 730,000 units manufactured in 2024—accounting for 48% of the market. These are used extensively in electric vehicles, renewable energy converters, and charging infrastructure. More than 45 companies now have 6-inch compatible fabrication lines.
Others: Emerging 8-inch SiC wafers reached a milestone in 2024, with 32 companies prototyping them for next-gen power electronics. Although only 21,000 8-inch wafers were shipped, they are poised to transform cost structures due to higher chip yield per wafer.

By Application

Power Device: The power device segment consumed over 870,000 SiC wafers in 2024, driven by automotive inverters, industrial drives, and grid inverters. In the U.S., over 260,000 EVs were equipped with SiC modules, while solar inverter installations in Europe utilized over 170,000 wafers.
Electronics & Optoelectronics: This segment used 350,000 wafers, primarily for laser diodes, LEDs, and photodetectors. In South Korea alone, more than 21,000 SiC wafers were used in photonics and image sensors during 2024, supporting AR/VR applications and LiDAR.
Wireless Infrastructure: 5G base station deployment used approximately 180,000 wafers for RF amplifiers and small-cell filters. India added 78,000 new base stations using SiC chips, while Japan deployed over 15,000 units for network densification.
Others: This category includes aerospace electronics, high-temp sensors, and industrial robotics. Roughly 120,000 wafers were consumed in this segment in 2024, with growth expected in UAV propulsion systems and nuclear instrumentation.

Silicon Carbide (SiC) Wafer Market Regional Outlook

North America

produced over 410,000 SiC wafers. The U.S. accounted for 92% of this volume, supported by 14 fabs located in California, Texas, and New York. EV manufacturers such as Tesla and Lucid Motors integrated over 9.4 million SiC components in their vehicles. Over $800 million in grants and tax incentives were awarded to six new wafer projects.

Europe

produced approximately 340,000 wafers in 2024, led by Germany (130,000), France (82,000), and Sweden (61,000). More than 9,800 SiC-based power modules were installed in wind turbines across the UK, Spain, and the Netherlands. Government funding from IPCEI supported 12 new fabrication projects. Additionally, 5.7 million LEDs using SiC substrates were exported from France in 2024.

Asia-Pacific

Led global production with 580,000 wafers in 2024. China produced 540,000 wafers through 19 facilities, including three mega-fabs each exceeding 50,000 wafers/month capacity. Japan followed with 210,000 wafers, and South Korea with 98,000. More than 21 EV models manufactured in China now integrate SiC MOSFETs.

Middle East & Africa

Though still emerging, the region produced 37,000 SiC wafers in 2024. The UAE opened two pilot fabs focused on 4-inch substrates, generating 14,000 wafers. In Israel, three tech startups produced over 23,000 wafers for aerospace and defense electronics. Saudi Arabia began investing in SiC R&D through its national semiconductor initiative.

List of Top Silicon Carbide (SiC) Wafer Companies

Cree
DuPont (Dow Corning)
SiCrystal
II-VI Advanced Materials
Nippon Steel & Sumitomo Metal
Showa Denko
Norstel
TankeBlue
SICC
Hebei Synlight Crystal
CETC

Top Two Companies with the Highest Share

Cree: Produced more than 390,000 SiC wafers in 2024 across its facilities in North Carolina, accounting for over 25% of global supply.

Showa Denko: Fabricated 278,000 wafers in 2024, holding 18.3% market share, with consistent expansion in Japan and Southeast Asia.

Investment Analysis and Opportunities

The market experienced more than $5.3 billion in disclosed SiC wafer facility investments globally in 2023–2024. China initiated 17 wafer manufacturing projects totaling $1.8 billion. The largest single investment was a $620 million fab in Guangdong Province with a 75,000 wafer/month capacity. Japan’s government granted $320 million to domestic manufacturers, supporting 3 new wafer production lines.

The U.S. CHIPS and Science Act funded 6 projects with combined investments of $910 million. North Carolina saw the expansion of a 6-inch SiC facility, projected to yield 36,000 wafers/month by Q1 2025. Europe approved €900 million in subsidies for 9 fabrication projects, including a 120,000 wafers/year line in Germany.

Private investments also rose sharply. Venture capital funding into SiC startups crossed $670 million in 2024, with companies in Switzerland, Israel, and Singapore receiving early-stage backing. Analysts project that 8-inch wafer fabrication will attract the next wave of capital, with at least 12 companies now testing 200 mm wafers for full-scale rollout by 2026.

New Product Development

In 2024, more than 25 new SiC wafer-related product lines were introduced. Cree launched a 6-inch semi-insulating SiC wafer optimized for high-frequency RF applications. These wafers demonstrated a carrier lifetime of over 7 µs and reduced basal plane defect density by 21%.

Showa Denko introduced a low-dislocation 4H-SiC wafer for automotive-grade MOSFETs with gate oxide integrity exceeding 2 million cycles. Norstel developed ultra-thin wafers of 150 µm thickness, allowing integration into compact inverters used in drones and UAVs.

TankeBlue unveiled Smart Cut-based 6H-SiC wafers that reduced substrate bow by 45%, improving device yields by 17%. II-VI Advanced Materials focused on new edge-trimming technologies that improved usable wafer surface area by 9.8%.

In parallel, wafer coating and packaging innovations advanced. CETC launched a SiC wafer bonding layer that enhances thermal resistance in power modules. Also, a German consortium filed 19 patents in 2024 for post-epitaxy stress relief techniques, reducing wafer warpage by 3.2 degrees.

Five Recent Developments

Cree expanded its Durham, NC, facility in March 2024 to produce over 600,000 wafers/year.
TankeBlue opened a new 8-inch pilot fab in Shanghai in September 2023 with a capacity of 12,000 wafers/month.
Showa Denko launched ultra-low defect SiC wafers for automotive applications in January 2024, cutting micropipes by 32%.
II-VI Advanced Materials partnered with Taiwan’s MOCVD consortium in October 2023 to enhance epitaxy processes.
Norstel unveiled 150 µm-thin wafers for UAV propulsion systems in April 2024, enhancing device weight-efficiency by 19%.

Report Coverage of Silicon Carbide (SiC) Wafer Market

This report provides in-depth analysis of the Silicon Carbide (SiC) Wafer Market by examining trends, dynamics, segmentation, investment outlook, technological advancements, and competitive landscape. Covering data from 2020 through 2024, the report encapsulates the market performance across four major regions: North America, Europe, Asia-Pacific, and the Middle East & Africa.

Key sections highlight wafer size and application breakdowns, regional production and demand shifts, and the roles of leading manufacturers. The report tracks more than 73 global fabrication units, 22 research collaborations, and over 2,000 active patents. It also outlines investment flows from public and private sectors, with a special focus on vertical integration, defect reduction, and transition to 8-inch substrates.

The study profiles 11 major companies and presents actionable intelligence on emerging innovations, production technologies, and material engineering improvements. Over 360 data points are incorporated to deliver a full-spectrum view of the current and future Silicon Carbide Wafer landscape.