China's silicon carbide (SiC) industry is witnessing rapid advancements, with two major breakthroughs making headlines: Shoke Crystal’s Phase II production facility is now fully operational, adding 200,000 wafers in annual capacity, and Li Auto has successfully installed its self-developed SiC power chips, marking a new milestone for domestic electric vehicle (EV) technology.
Shoke Crystal Expands SiC Production with Phase II Facility
On February 10, "Investment Shanxi" announced that Shoke Crystal has officially launched its Phase II SiC production line, significantly increasing its annual output by 200,000 SiC substrates. This expansion strengthens Shoke Crystal's position as a leading SiC materials supplier in China.
Shoke Crystal’s Phase II Highlights:
Located in Shanxi Transformation Comprehensive Reform Demonstration Zone, the factory spans two phases.
Total investment: ¥520 million ($72.3 million).
Additional output:
200,000 N-type SiC substrates/year.
25,000 high-purity substrates/year.
1.3 tons of moissanite crystals/year.
First in China to achieve 8-inch SiC wafer production, with a 12-inch wafer prototype launched in 2023.
Shoke Crystal plays a key role in China's third-generation semiconductor strategy. The Phase II expansion will not only increase domestic supply but may also help reduce manufacturing costs, addressing one of the industry's biggest challenges.
Li Auto Rolls Out Self-Developed SiC Power Chips
On February 13, Li Auto announced that its in-house developed SiC power chips have successfully been installed and tested in vehicles. The company’s SiC power modules and next-gen electric drive systems are now in mass production at its Suzhou semiconductor and Changzhou electric drive manufacturing facilities.
Li Auto’s SiC Integration Strategy:
The new power modules will be installed in pure EV models, expected to enhance energy efficiency and charging speed.
Li Auto’s 2024 sales exceeded 500,508 units, making it the first Chinese EV startup to cross 500,000 annual sales.
2025 target: 700,000 vehicle sales, with EVs contributing significantly.
Li Auto's investment in SiC-based 800V platforms is expected to improve vehicle range and reduce charging time, positioning it as a strong competitor to BYD, Tesla, and NIO in China’s premium EV market.
SiC Industry Growth: Challenges and Opportunities
The global silicon carbide industry is undergoing rapid expansion, especially with EVs, 5G, and renewable energy driving demand. However, China's SiC sector still faces structural challenges, including high production costs, technical barriers, and supply chain dependencies.
Key Industry Challenges:
Material Production
6-inch SiC wafers are in mass production, while 8-inch wafers remain in limited supply.
China’s SiC wafers have higher defect rates (5-10% lower yield than global leaders).
Device Manufacturing
Domestic companies like BYD, CRRC Times Electric, and Silan Microelectronics are advancing SiC MOSFETs and SBDs, but high-voltage IGBTs and RF power devices remain heavily import-dependent.
Cost Barriers
SiC components are 3-5 times more expensive than traditional silicon devices, limiting adoption in mass-market EVs.
Equipment Dependence
Crystal growth furnaces, cutting machines, and EDA tools are still reliant on imports from Japan and Germany.
Despite these challenges, Shoke Crystal’s expansion and Li Auto’s SiC adoption signal a positive shift towards domestic supply chain independence.
China’s SiC Roadmap: Key Strategies for Industry Growth
To scale the SiC market and reduce costs, collaboration across the supply chain and government support will be crucial.
Materials Companies: Scale up 8-inch wafer production, improve crystal quality, and reduce defect density.
Device Manufacturers: Focus on automotive-grade SiC certifications, improve MOSFET efficiency, and expand module production.
Automakers & Suppliers: Co-develop SiC-based powertrains, enhance 800V fast-charging adoption, and optimize vehicle efficiency.
Government Policies: Increase investment in SiC manufacturing equipment, EDA software, and domestic tooling, while preventing redundant low-end capacity expansion.
Conclusion
China’s SiC industry is transitioning from R&D to large-scale commercialization. With Shoke Crystal ramping up SiC wafer production and Li Auto integrating in-house SiC power chips, China is accelerating its role in the global SiC semiconductor landscape.
However, cost reduction, defect minimization, and supply chain localization remain the biggest hurdles. As the demand for high-voltage EV platforms grows, the next phase of competition will be driven by who can mass-produce high-quality SiC at lower costs.
