[News] Wafer Capacity Set to Surge: A New Phase for the SiC Industry in 2026

In early February 2026, competitive dynamics in the global silicon carbide (SiC) industry are coming into sharper focus. Disclosures and earnings call transcripts from companies including Wolfspeed, Infineon Technologies, and STMicroelectronics indicate that while a slowdown in the electric vehicle (EV) market has weighed on short-term performance for some vendors, AI data center demand for advanced power management has emerged as a new growth engine. Meanwhile, a wave of wafer capacity expansion is set to be released over the coming quarters.

Global Players: Rising AI Exposure, Accelerated Capacity Realignment

• Wolfspeed: Phasing Out 6-Inch Lines, Pivoting to AI Data Centers

Wolfspeed has completed the shutdown of its 150mm (6-inch) wafer fab in Durham one month ahead of schedule and plans to fully shift production focus to its 200mm facility in Mohawk Valley in 2026. Management noted during its earnings call that while the transition entails short-term underutilization costs, larger-diameter wafers will support structurally lower unit costs over the long term.

Notably, Wolfspeed’s AI data center-related revenue has doubled over the past three quarters. The company plans to prioritize SiC solutions tailored for AI server power architectures in 2026, targeting market migration from 400V to 800V systems.

• Infineon: Raising AI Targets, Ramping Kulim Capacity

In response to market changes, Infineon has set a fiscal 2026 AI-related revenue target of Euro 1.5 billion, with plans to increase that figure to Euro 2.5 billion by 2027. On the manufacturing front, Module 3 at its Kulim site in Malaysia—dedicated to 200mm SiC wafer production—has entered the ramp-up phase. Infineon reiterated its “30-30” strategic objective: to secure a 30% share of the global SiC market by 2030.

• STMicroelectronics: Advancing Vertical Integration, Expanding China JV Capacity

ST continues to emphasize vertical integration across the SiC supply chain. Its integrated SiC substrate manufacturing facility in Catania, Italy, is scheduled to commence production in 2026. In China, its joint venture with San’an Optoelectronics has completed multi-product validation and entered the risk production stage.

The project will establish an annual capacity of approximately 480,000 8-inch SiC wafers, primarily for automotive-grade power control chips. The risk production phase, positioned between pilot runs and full-scale mass production, aims to identify and resolve process stability, yield, and long-term reliability issues, laying the groundwork for volume manufacturing.

Chinese Vendors: Diverging Performance, Focus on 8-Inch Lines

Several Chinese SiC companies have recently released preliminary 2025 earnings guidance. Amid global substrate price volatility and increased R&D investment, some upstream suppliers face earnings pressure. In contrast, companies operating under IDM models or with strong vertical integration and sector-specific barriers have shown relatively resilient performance.

• SICC: Accelerating 8-Inch Substrate Deployment

As competition intensifies in the 6-inch segment, SICC will shift its 2026 strategic focus toward expanding 8-inch substrate capacity and improving yields at its Shanghai Lingang facility. Increasing the shipment ratio of larger-diameter products is expected to optimize its product mix and enhance profitability.

• CRRC Times Electric: Expanding into High-Voltage Industrial Applications

CRRC Times Electric, traditionally a supplier to rail transit and power grid sectors, has positioned its SiC strategy around high-voltage applications. Its Zhuzhou-based 8-inch SiC production line completed equipment move-in and line qualification by end-2025 and is now preparing for mass production. Beyond automotive markets, the company plans to extend 3300V and higher-voltage SiC devices into flexible DC transmission, photovoltaic inverters, and mining machinery.

• Silan Microelectronics: Utilization Rising, Full Capacity Expected in 2026

The SiC chip line operated by a subsidiary of Silan Microelectronics has seen steadily increasing output since the second half of 2025. The line is expected to reach full capacity in 2026. Through a combined “6-inch SiC + 12-inch silicon” manufacturing structure, the company aims to lower production costs and better serve home appliance and industrial customers.

Outlook

Based on currently available disclosures, 2026 marks a convergence of technological iteration and structural market adjustment in the global SiC industry.

On the demand side, while EVs remain the primary pillar, AI data centers are rapidly turning into a second growth engine. Surging demand for high power-density power supplies in AI servers is reshaping end-market dynamics.

On the supply side, 2026 will be a pivotal year for large-scale 8-inch (200mm) manufacturing. As leading global players complete production line transitions and Chinese vendors accelerate 8-inch capacity build-out, yield ramp speed and unit cost control will become decisive factors shaping market share and profitability.

Industry observers increasingly view 2026 as a watershed year—when the global SiC industry shifts from capacity-driven expansion toward a new phase defined by cost efficiency and technological maturity as core competitive strengths.

(Photo credit: Infineon)