Beyond liquid cooling and PCBs, a new breakthrough direction in the semiconductor field has emerged.
After liquid cooling and PCBs, the most promising breakthrough direction in the semiconductor field has surfaced, and the next “Victory Electronics” or “New Easy Win” may be in the making.
The reason is that Huawei and NVIDIA, two industry giants, are focusing on silicon carbide (SiC) and are fully committed to its development.
Among them, a Chinese company that has broken the monopoly of international giants like Japan’s NTN and Germany’s Schaeffler, and has secured orders from leading manufacturers such as Huawei and BYD, is expected to become an industry benchmark in the second half of 2025.
Threefold Drivers: Giant Investments + Technological Breakthroughs + Policy Catalysts
NVIDIA’s Actions: In the next-generation Rubin processor, NVIDIA plans to switch the intermediary substrate material of the CoWoS advanced packaging process from silicon to silicon carbide. Currently, TSMC is leading the charge, promoting collaboration among multiple manufacturers to tackle silicon carbide substrate manufacturing.
Huawei’s Patents: Recently, Huawei announced two patents related to silicon carbide heat dissipation—”Thermal Conductive Composition and Its Preparation Method and Application” and “A Thermal Conductive Absorbing Composition and Its Application.” Both technologies use silicon carbide as the core filler, significantly enhancing the heat dissipation performance of electronic devices.
National Policies: The action plan released in August for implementing the “National Standardization Development Outline” has explicitly included silicon carbide as a key material for third-generation semiconductors, requiring accelerated standard formulation and promotion of large-scale applications.
This means that silicon carbide is entering a dual-benefit window of “technological innovation + policy support” similar to that of PCBs and liquid cooling.
As the core raw material for third-generation semiconductors, silicon carbide is expected to be widely used in data centers, AI chips, robotics, automotive, new energy, mobile phones, and commercial aerospace, with the potential market space expected to exceed one trillion.
Key Companies Overview
First Company: Tianyue Advanced
Breakthrough Highlights: The world’s first to achieve mass production of 12-inch silicon carbide substrates, with an 8-inch conductive substrate yield exceeding 70%, and costs reduced by 40% compared to 6 inches.
Technical Advantages: The liquid phase method has improved the yield of 8-inch substrates to 85%; 12-inch optical-grade substrates can meet the production of 3-4 pairs of AR glasses, entering the new blue ocean of AI/AR.
Second Company: Luxshare Technology
Capacity Layout: 6-inch conductive substrate mass production yield of 65%, 15% higher than the industry average; prices are 30% lower than overseas products.
Planning Goals: 8-inch substrate yield to reach 60%, achieving automotive-grade mass production by 2026; the Hefei base’s first phase will reach 240,000 pieces/year, with the second phase expanding to 500,000 pieces/year.
Third Company: Jing Sheng Machinery
Market Position: Over 50% global market share in silicon carbide crystal growth furnaces, covering the entire process of growth, cutting, and epitaxy equipment.
Synergistic Advantages: The domestic production rate of 8-inch epitaxy equipment has exceeded 80%, making it the only company in China that develops both equipment and materials in synergy, benefiting from industry expansion while also leading in large-size technology.
Fourth Company: Dongni Electronics
Segment Leader: Over 35% market share in silicon carbide cutting lines and conductive materials, with cutting efficiency improved by 30%, serving leading manufacturers such as Tianyue Advanced and Sanan Optoelectronics.
Growth Logic: As an invisible champion in cutting materials, breakthroughs in single crystal material technology open up long-term growth potential.
Fifth Company: Saiwei Electronics
Capacity Planning: Beijing FAB3 factory has a monthly production capacity of 5,000 6-inch silicon carbide epitaxial wafers, with a yield exceeding 90%, supplying Huawei HiSilicon and Anshi Semiconductor.
Expansion Direction: 8-inch epitaxy equipment is in debugging, with mass production expected in 2026.
Sixth Company: China Resources Microelectronics
Capacity Release: Monthly production capacity of 2,500 6-inch epitaxy wafers, with automotive-grade yield exceeding 95%, entering the supply chain of Tesla and NIO.
Expansion Plan: The Chongqing 12-inch production line is planned for 30,000 pieces/month, expected to be completed in the third quarter of 2025.
Seventh Company: Zhongwei Company
Technical Breakthrough: ICP etching equipment has successfully landed in silicon carbide device manufacturing, validated by Silan Microelectronics and China Resources Microelectronics, with new orders exceeding 500 million expected in 2025.
New Track: MOCVD equipment entering GaN power devices, jointly developing 5G base station RF chips with Huawei HiSilicon.
Eighth Company:*****【Company Name】Click to Unlock! (Research Report)
Full-Process IDM: The only domestic company to achieve integrated manufacturing of “substrate—epitaxy—device,” with a planned annual production of 480,000 8-inch silicon carbide devices at the Hunan base.
Cooperation Binding: The Chongqing production line, a joint venture with STMicroelectronics, is expected to achieve mass production in the fourth quarter of 2025; also received investment from Huawei Hubble, with joint R&D on automotive-grade SiC devices and optical communication chips.
Overseas Expansion: Products have passed Bosch and Continental certifications, with overseas revenue expected to increase to 35% by 2025, entering the supply chains of Tesla, Volkswagen, and other international automotive companies.
*****【Company Name】Click to Unlock! (Research Report)
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