Silicon Carbide Industry Enters Golden Growth Period, with Explosive Expansion Expected Between 2026–2030

Since the start of 2026, China’s silicon carbide (SiC) industry has accelerated its development momentum, with a series of major projects landing across the country. From the signing of a RMB 1 billion power module packaging and testing project in Hefei, to the official operation of Silan Micro’s 8‑inch SiC chip production line, and from the full‑capacity operation of a vehicle‑grade module line in Weihai to BaSic Semiconductor’s new headquarters base in Wuxi, these moves collectively signal strong vitality in the sector.
 
As a core material in third‑generation semiconductors, SiC is gaining widespread adoption in new energy vehicles (NEVs), photovoltaic (PV) energy storage, and other high‑power applications, driven by its superior performance in high‑temperature resistance, high voltage tolerance, and high power density. The industry is now entering a period of high‑certainty, rapid growth, with 2026–2030 widely viewed as the golden expansion stage.
 
Market expansion continues to serve as the key driver. According to industry data, the global Sic Power Device market reached approximately $5 billion in 2024 and is projected to exceed $15 billion by 2030, representing a compound annual growth rate (CAGR) of around 14.5%. China’s market is growing even faster, with an estimated CAGR between 18% and 40%, and the domestic market size is expected to surpass RMB 100 billion by 2026.
 
Demand is being fueled primarily by the accelerated adoption of 800V high‑voltage platforms in NEVs, where SiC modules are increasingly becoming standard in main inverters. Meanwhile, the PV energy storage, industrial control, and data center power supply sectors are also driving robust growth in SiC demand.
 
Policy support further underpins the industry’s development. China has extended subsidies for third‑generation semiconductors through 2026, with equipment investment subsidies for new fabs reaching up to RMB 3 billion. On the international front, the EU’s Carbon Border Adjustment Mechanism (CBAM) is pushing manufacturers toward higher‑efficiency power devices, indirectly boosting SiC adoption.
 
As the industry enters this critical growth phase, companies are focusing on key breakthroughs in 8‑inch substrate and epitaxy technologies, accelerating automotive‑grade certifications, and pursuing vertical integration to reduce costs and enhance competitiveness. While short‑term overcapacity risks and price competition remain challenges, the long‑term outlook for SiC remains strong, with technology upgrades and expanding application scenarios expected to drive sustained growth through 2030.