Cost Comparison Analysis Report of SiC Wafers vs. Silicon Wafers

Silicon Carbide (SiC), as a third-generation semiconductor material, is accelerating its penetration in fields such as new energy vehicles, power electronics, and renewable energy due to its excellent physical properties (high thermal conductivity, high breakdown voltage, high switching frequency)[1][2]. However, the high cost of SiC wafers has always been the main obstacle to its large-scale application. Based on the latest market data, this report systematically analyzes the differences in cost structure, price change trends, and influencing factors between SiC wafers and silicon wafers.

According to industry data, there is a significant price gap between SiC wafers and silicon wafers[3]:

Wafer Type	Size	Price (USD/piece)	Price Gap Multiple
SiC Substrate	6-inch	$450-$500 (end of 2024)	~10x
Silicon Wafer	6-inch	Below ~$50	Benchmark

It is worth noting that in 2021, the price of 6-inch SiC substrates was as high as over $900 per piece, while the price of 6-inch silicon wafers was less than $50 per piece in the same period[3]. After a price reduction of about 30% in 2024, the price of 6-inch SiC substrates has dropped to around $450, but it is still about 9-10 times the price of silicon wafers of the same specification.

In device manufacturing costs, the cost structures of SiC and silicon-based materials show distinctly different characteristics[3][4]:

• Substrate cost ratio:
  47%
• Epitaxy cost ratio:
  23%
• Front/backside processing:
  17%
• Yield loss:
  32%

• Silicon wafer substrate ratio:
  Usually no more than 10%

This significant difference stems from the fact that the preparation of SiC single crystal materials is far more complex than that of silicon materials. SiC crystal growth requires a high-temperature environment above 2000℃, and the growth cycle is as long as 7-10 days, while silicon ingots can be grown in only 2-3 days[3][4].

The SiC wafer market experienced significant price adjustments in 2024[5][6]:

• Overall price reduction:
  Nearly 30% price drop
• Price trend of 6-inch SiC substrates:
  • Mid-2024: Fell below $500
  • Q4 2024: Further dropped to $450
• Conductive substrates:
  Price reduction of over 20%

The prices of SiC devices also showed a synchronous downward trend[6]:

• Average price of 1200V/40mΩ SiC MOSFET: Dropped from RMB 35 in September 2023 to RMB 23 in April 2024, a decrease of 35%
• Currently, the price of SiC devices is still 1.5-2 times that of silicon-based IGBTs of the same specification
• Industry forecast: This ratio is expected to drop to 1.2-1.5 times in the next 2-3 years

Indicator	SiC	Si
Crystal Growth Temperature	2000-2500℃	1500℃
Growth Rate	0.2-1mm/hour	1-10mm/hour
Production Cycle	7-10 days	2-3 days
Ingot Length	~2cm	~2m
Hardness	Close to diamond	Relatively soft

[3][4]

1. Difficult crystal structure control:
   SiC has more than 200 crystal structures, and only a few such as 4H type are suitable for manufacturing power devices
2. Black box process:
   The high-temperature cavity cannot monitor crystal growth in real-time
3. Difficult diameter expansion:
   8-inch SiC crystal growth faces issues such as seed crystal development, uneven temperature fields, and stress cracking
4. Complex back-end processing:
   The high hardness of SiC makes cutting, grinding, and polishing technologies difficult

Size	SiC Chip Output (32mm² bare die)	Edge Chip Ratio
6-inch	Benchmark	14%
8-inch	~2x that of 6-inch	7%
12-inch	~2.5x that of 6-inch	~3%

Silicon wafers have achieved large-scale mass production of 12-inch size, while the mainstream SiC wafer size is still 6-inch, with 8-inch in the mass production ramp-up phase[7]. This results in the unit chip cost of SiC being significantly higher than that of silicon-based products.

Layout of 8-inch SiC substrates by major global manufacturers[7][8]:

Manufacturer	Substrate/Epitaxy	Progress Status
Wolfspeed	Substrate/Epitaxy	Small-scale mass production, planning large-scale mass production in H1 2025
Rohm	Substrate	Started production of 8-inch SiC substrates at the end of 2024
Coherent	Substrate/Epitaxy	Small-scale mass production
Soitec	Substrate	Planning production at the end of 2024
STMicroelectronics/Sanan Optoelectronics	Substrate/Epitaxy	Expected to start production in Q4 2025
Resonac	Substrate/Epitaxy	Mass production in 2025

According to industry analysis, the future price decline of SiC substrates will mainly come from two factors[8]:

1. Unit cost reduction driven by technological progress:
   • Improved yield of SiC crystal growth
   • Increased chip output brought by expanded substrate size
   • Process optimization and improved automation level

2. Scale effect:
   • Capacity expansion by leading manufacturers globally, especially in China
   • Cost sharing effect
   • Supply chain procurement advantages

According to forecasts from industry institutions[5][6]:

• The price of 6-inch SiC epitaxial chips was approximately RMB 7,300 per piece in 2024
• It is expected to drop to RMB 4,400 per piece in 2029
• The price reduction mainly comes from the decline in substrate prices and yield improvement

2024 Market Application Distribution of SiC Power Semiconductor Devices[5]:

Application Field	Market Share
Electric Vehicles	74.4%
Charging Infrastructure	7.8%
Renewable Energy and Energy Storage	Growing trend
Data Centers, Industrial Control	Continuous adoption

With the continuous decline of SiC prices, its cost competitiveness relative to silicon-based devices is improving:

Comparison Indicator	Current Status	Future Trend
SiC MOSFET vs. Silicon-based IGBT	1.5-2x	1.2-1.5x (in 2-3 years)
Total System Cost	SiC solution is higher	Close to or lower (considering system-level advantages)

Although the unit price of SiC devices is higher, due to its high-performance characteristics, it can reduce the volume of passive components and lower heat dissipation requirements, and the overall system cost is expected to achieve balance or even advantage[3].

According to data from market research institutions[9][10]:

• The global SiC wafer market size is expected to grow from $822 million in 2024 to $4.27 billion in 2033
• Compound Annual Growth Rate (CAGR): ~20%
• 8-inch substrates are expected to grow at a CAGR of 28.6% (by 2031)

The industry expects[5][6]:

• A new round of price competition for 6-inch substrates will emerge in 2025
• Price competition for 8-inch substrates will emerge in 2026
• Industry integration will be basically completed around 2027, forming a new pattern
• Eventually, “the last man standing wins”, and technological and cost competitiveness are the key

Phase	Time	Main Driving Factors
Phase 1	Current-2025	6-inch capacity expansion, improved technological yield
Phase 2	2025-2027	8-inch mass production ramp-up, scale effect emerges
Phase 3	After 2027	12-inch technological breakthrough, complete industrial chain integration

There is still an approximately 10x price gap between SiC wafers and silicon wafers, mainly due to the technical complexity of SiC material preparation, the smaller mainstream wafer size, and the insufficiently released scale effect. The nearly 30% price drop of SiC wafers in 2024 indicates that the industry is maturing rapidly. With the acceleration of 8-inch SiC wafer mass production, improved technological yield, and expanded production capacity, the cost gap between SiC and silicon wafers is expected to gradually narrow.

For downstream application manufacturers, the current period is a critical window for deploying SiC technology. On one hand, price declines reduce adoption risks; on the other hand, leading manufacturers are establishing competitive advantages through technological innovation and cost control. In the next 2-3 years, the price ratio of SiC devices to silicon-based devices is expected to drop to 1.2-1.5x, which will accelerate the penetration of SiC in fields such as new energy vehicles, charging infrastructure, renewable energy, and industrial control.

[1] APC UK - Narrative Report on Power Electronics 2024

[2] Wolfspeed - IEDM 2024 Technical Chart

[3] The Chinese Society of Nonferrous Metals - In-depth Research Report on SiC Substrates

[4] Debon Securities - In-depth Industry Report on SiC Cost Reduction

[5] 21st Century Business Herald - Game of Price and Market: SiC Chips Accelerate into the Competition for Market Positions

[6] ESM China - Five Changes Sorting Out the Global SiC Industry

[7] Sicc Tech - 2025 Interim Report

[8] Securities Times - SiC Knockout Competition Begins: Price Competition, Giant Adjustments

[9] Yahoo Finance - Silicon Carbide Wafer Markets Report 2025-2033

[10] Mordor Intelligence - Silicon Carbide Wafer Market Size & Share Analysis