In-Depth Analysis Report on the Application Prospects of Silicon Carbide in Semiconductor Packaging

Now I will prepare an in-depth analysis report on the application prospects of silicon carbide in semiconductor packaging for you.

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Silicon carbide (SiC), as a representative of third-generation wide-bandgap semiconductor materials, is at a critical juncture of industrial transformation. Traditionally, silicon carbide has been mainly used in power electronics fields such as new energy vehicles and photovoltaic inverters. However, with the explosive growth of artificial intelligence technology and the continuous evolution of advanced packaging technologies, silicon carbide is expanding to the higher-end AI computing chip sector. This transformation is reshaping the competitive landscape of the entire semiconductor industry chain[1][2].

This report will systematically analyze the application prospects of silicon carbide in semiconductor packaging, covering core dimensions such as technical advantages, market size, industrial chain layout, investment opportunities and risks, to provide professional reference for investment decisions.

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Silicon carbide has significant physical performance advantages over traditional silicon materials, which make it perform excellently in high-temperature, high-frequency, and high-power applications:

Property Indicator	Silicon Carbide (SiC)	Silicon (Si)	Advantage Multiple
Bandgap	3.2 eV	1.1 eV	~3x
Thermal Conductivity	490 W/m·K	150 W/m·K	~3x
Breakdown Electric Field	2.8 MV/cm	0.3 MV/cm	~9x
Electron Saturation Velocity	2.0×10^7 cm/s	1.0×10^7 cm/s	~2x

Thermal conductivity is the most critical property of silicon carbide in advanced packaging applications. The thermal conductivity of single-crystal silicon carbide is 2-3 times higher than that of silicon, making it an ideal material for heat dissipation solutions for high-power density chips[3][4].

TSMC’s CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging technology is the mainstream packaging solution for current AI chips. As chip power consumption continues to increase, traditional silicon interposers are facing heat dissipation bottlenecks. With its excellent thermal conductivity, silicon carbide is expected to become an upgraded replacement for interposer materials in CoWoS packaging[3][4].

According to a research report from Huaxi Securities, if CoWoS replaces interposers with SiC in the future, based on a 35% CAGR for CoWoS after 2028 and a 70% replacement ratio, the demand for 12-inch SiC substrates will exceed 2.3 million pieces in 2030, equivalent to approximately 9.2 million 6-inch pieces, far exceeding current supply capacity[5].

TSMC has collaborated with equipment manufacturers to develop relevant manufacturing technologies, planning to apply 12-inch single-crystal silicon carbide to heat dissipation substrates, replacing traditional aluminum oxide, sapphire substrates, or ceramic substrates. Once this technical route matures, it will significantly improve the heat dissipation efficiency and reliability of AI chips[2][6].

In power semiconductor module packaging, silicon carbide MOSFETs and diodes are rapidly replacing silicon-based IGBTs. Silicon carbide devices have lower on-resistance, faster switching speed, and higher operating temperature tolerance, which can significantly improve the overall performance of power modules[7][8].

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According to research data from Mordor Intelligence, the global power semiconductor market will reach $56.87 billion in 2025, is projected to increase to $59.98 billion in 2026, and will grow to $78.25 billion by 2031, with a compound annual growth rate (CAGR) of 5.46%[7].

The silicon carbide power semiconductor market is in a stage of rapid growth:

Year	Market Size (USD)	Growth Rate
2025	$2.73 billion	Base Year
2030	$8.41 billion	CAGR 8.41%
2035	Projected over $15 billion	CAGR 11.8%

In terms of application fields, automotive electronics account for 31.02% of the silicon carbide market revenue in 2025, mainly used in traction inverters, on-board chargers, and DC-DC converters of electric vehicles. The energy and power sector is expected to grow at a CAGR of 7.21% and will become the application field with the largest incremental revenue by 2031[7][8].

Emerging applications of silicon carbide in semiconductor packaging are rapidly emerging:

1. AI Data Centers (AIDC)
   : With the explosive growth of artificial intelligence technology, the energy consumption issue of data centers has become increasingly prominent. Silicon carbide power devices can significantly improve the efficiency of server power supplies. Under the trend of industry giants such as NVIDIA promoting the evolution of data centers to 800V high-voltage architectures, silicon carbide is expected to become a key material[3][4].

2. AR/VR Devices
   : Due to its advantages of high refractive index and light weight, silicon carbide is expected to become an ideal material for waveguide lenses of next-generation AR glasses, achieving better display effects[3].

3. Advanced Packaging
   : As mentioned earlier, silicon carbide has huge application potential in advanced packaging technologies such as CoWoS, which is expected to open up a new growth space for the silicon carbide market[5][6].

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The global silicon carbide industrial chain is highly concentrated, with the highest technical barriers in the upstream substrate material segment:

Segment	Key Players	Competitive Advantages
Substrate Materials	Tianyue Advanced, Wolfspeed, Coherent, SK Siltron	Large-size substrate technology, yield control
Epitaxial Growth	HanTian Tiancheng, Tianyu Semiconductor, Wolfspeed	Film uniformity, defect control
Chip Manufacturing	Infineon, ON Semiconductor, STMicroelectronics, Rohm	Process maturity, automotive-grade certification
Packaging and Testing	Changjiang Electronics Technology, Tongfu Microelectronics, Huatian Technology	Advanced packaging capabilities, production scale

Mainland Chinese enterprises are rapidly rising in the silicon carbide industrial chain:

• A leading global silicon carbide substrate enterprise with a high market share
• One of the few global enterprises capable of providing 12-inch silicon carbide substrate samples
• Its customers have entered NVIDIA’s supply chain, seizing a first-mover advantage in the AI track
• Actively expanding applications of silicon carbide in emerging fields such as AR glasses, AIDC, and advanced packaging[2][3][4]

• Han Lei (3707.TW) and Chia Shing (3016.TW):
  Although the two companies clarified that they have no direct relationship with the introduction of 12-inch SiC substrates into advanced packaging, as mature silicon carbide foundry manufacturers, they will still benefit from the overall market growth[1]
• Hongsu Technology (3131.TW):
  A semiconductor wet process equipment manufacturer that lists silicon carbide heat dissipation solutions as a continuous focus of development[1]
• MOSFET (2342.TW):
  Its silicon carbide process platform has started trial production and customer validation[1]

• Plans to replace the advanced packaging interposer material of its next-generation Rubin GPU from silicon to silicon carbide by 2027
• This technical route shift means that the application of silicon carbide is expanding from traditional new energy fields to the higher-end AI computing chip field[2][5]

• In Q4 2025, its revenue exceeded NT$1.04609 trillion for the first time, and net profit soared 35% year-on-year to approximately $16 billion
• Its 2026 capital expenditure guidance has been significantly raised to $52-$56 billion, nearly 40% higher than previous expectations
• Has collaborated with equipment manufacturers to develop manufacturing technologies for applying 12-inch single-crystal silicon carbide to heat dissipation substrates[3][4]

• Plans to officially establish a power semiconductor special working group in January 2026
• SiC power semiconductor technology is highly likely to be designated as a national strategic technology
• SK Keyfoundry plans to start mass production of SiC power devices as early as Q1 2026
• DB HiTek has completed the R&D of 650V GaN processes and is expanding clean rooms to increase the production capacity of GaN and SiC devices[6]

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The application prospects of silicon carbide in semiconductor packaging provide three core investment themes for investors:

As a global leading silicon carbide substrate enterprise, Tianyue Advanced has the following investment highlights:

• Leading large-size substrate technology, one of the few global enterprises capable of providing 12-inch SiC substrates
• Its customers have entered NVIDIA’s supply chain, directly benefiting from the explosive demand for AI chips
• Actively expanding into emerging application fields, opening up long-term growth space
• A+H dual listing, providing liquidity options[2][3][4]

With the increasing penetration rate of silicon carbide in advanced packaging, the following enterprises are expected to benefit:

• Changjiang Electronics Technology (600584.SH):
  Global leader in packaging and testing, with leading advanced packaging capabilities
• Tongfu Microelectronics (002156.SZ):
  Deeply bound to international customers such as AMD
• Huatian Technology (002185.SZ):
  Actively laying out automotive-grade and advanced packaging
• Yongxi Electronics (688362.SH):
  A rising star, quickly catching up through high-intensity capital expenditure[6]

The continuous growth of the silicon carbide power device market will benefit the following enterprises:

• Star Semiconductor (603290.SH):
  Leader in IGBT modules, rapidly laying out its silicon carbide business
• CRRC Times Electric (688187.SH):
  Leader in rail transit power semiconductors
• Yangjie Technology (300373.SZ):
  Power device IDM manufacturer

Despite the broad application prospects of silicon carbide in semiconductor packaging, investors still need to pay attention to the following risks:

• The application of silicon carbide in advanced packaging is still in the R&D and verification stage, and the industrialization progress may fall short of expectations
• Yield control of large-size silicon carbide substrates remains a technical difficulty
• The introduction of silicon carbide materials in TSMC’s CoWoS process requires collaborative breakthroughs in equipment, processes, and materials[5][6]

• The continuous decline in silicon carbide prices remains a major challenge for the industry, which may compress the profit margins of the industrial chain
• Fierce competition among Chinese manufacturers may lead to overcapacity and price wars
• Fluctuations in demand from downstream applications (especially new energy vehicles and photovoltaics) may affect the growth of the silicon carbide market[1]

• Sino-US technological competition may affect the international supply chain of silicon carbide materials
• Changes in industrial subsidy policies of various countries may change the competitive landscape
• The South Korean government’s designation of SiC as a national strategic technology may strengthen localized supply[6]

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• The penetration rate of silicon carbide in traditional power applications continues to increase
  , with new energy vehicles and photovoltaics remaining the main growth drivers
• Production capacity of 12-inch silicon carbide substrates is gradually released
  , but the overall supply remains tight
• Leading enterprises such as TSMC and NVIDIA complete technical verification of silicon carbide advanced packaging
  , and small-scale trial production is launched
• South Korean SiC power devices start mass production
  , and the global supply pattern is gradually diversified[1][6]

• NVIDIA’s Rubin GPU adopts silicon carbide interposer materials
  , pioneering the upgrade of heat dissipation materials for AI chips
• The application of silicon carbide in advanced packaging such as CoWoS gradually becomes popular
  , with a significant increase in penetration rate
• Consumer electronics such as AR/VR start to adopt silicon carbide waveguide lenses
  , opening up emerging application scenarios
• 800V high-voltage architectures are popularized in AIDC data centers
  , leading to explosive demand for silicon carbide power devices[2][3][4]

• The substitution effect of silicon carbide in advanced packaging is fully manifested
  , becoming a standard material option
• The global silicon carbide market size exceeds $10 billion
  , with a significant increase in the proportion of advanced packaging applications
• China’s mainland silicon carbide industry achieves key breakthroughs
  , occupying an important position in the global supply chain
• Emerging applications (6G communication, quantum computing, etc.) bring incremental demand
  [5][7][8]

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The application prospects of silicon carbide in semiconductor packaging are very broad, with the main conclusions as follows:

1. Technical Aspect:
   The thermal conductivity advantage of silicon carbide makes it an ideal material for heat dissipation in advanced packaging, with irreplaceable value in high-end packaging technologies such as CoWoS.

2. Market Aspect:
   The silicon carbide power semiconductor market will grow from $2.73 billion in 2025 to $8.41 billion in 2030, with a CAGR of 8.41%. Combined with incremental demand brought by advanced packaging, the market prospects are optimistic.

3. Industrial Aspect:
   The technical route choices of leading enterprises such as NVIDIA and TSMC will lead the industry trend, with silicon carbide expanding from traditional power fields to the AI computing chip field.

4. Investment Aspect:
   Leading silicon carbide substrate enterprises, advanced packaging and testing manufacturers, and power device manufacturers are all expected to benefit from this industrial transformation.

• Tianyue Advanced (688234.SH/02631.HK):
  Leading silicon carbide substrate enterprise, benefiting from the explosive demand for AI chips and the upgrade of advanced packaging materials
• Changjiang Electronics Technology (600584.SH):
  Leader in advanced packaging and testing, deeply benefiting from the growth in demand for AI chip packaging
• Tongfu Microelectronics (002156.SZ):
  Bound to international leading customers, with continuous improvement in advanced packaging capabilities

• Short-Term:
  Focus on the performance realization capability of silicon carbide in traditional power applications
• Mid-Term:
  Lay out targets related to advanced packaging to seize excess returns brought by technological upgrades
• Long-Term:
  Focus on technological innovation and capacity breakthroughs of silicon carbide substrate and material enterprises

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[1] Commercial Times - Hongsu’s Layout of Silicon Carbide Heat Dissipation Solutions (https://www.ctee.com.tw/search/碳化矽)

[2] Hong Kong Stock Decoding - The Logic Behind Tianyue Advanced’s 13.5% Surge (https://m.sohu.com/a/976868256_522913)

[3] Zheshang Securities - Research Report on Tianyue Advanced’s Silicon Carbide Applications in Emerging Fields (https://finance.sina.com.cn/stock/hkstock/marketalerts/2026-01-16)

[4] Huaxin Securities - Research Report on SiC Materials Meeting AI Chip Performance Requirements (https://caifuhao.eastmoney.com/news/20260118180843940082000)

[5] Huaxi Securities - Market Calculation of SiC Replacing Silicon Interposers in CoWoS Packaging (https://www.finet.hk/newscenter/news_content/696a292e5a7712a9d028644d)

[6] Caifuhao - South Korean Government’s Power Semiconductor Special Working Group Plan (https://caifuhao.eastmoney.com/news/20260118180843940082000)

[7] Mordor Intelligence - Power Semiconductor Market Analysis (https://www.mordorintelligence.com/industry-reports/power-semiconductor-market)

[8] MarketsandMarkets - Power Electronics Market Report (https://www.barchart.com/story/news/37066884)

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: January 21, 2026

: Jinling AI

This report is for reference only and does not constitute investment advice. Investment involves risks; please proceed with caution.