芯片制造

On August 30, Taiwan crossed a double hurdle in the field of wide bandgap semiconductor materials: Taisilicon Materials successfully grew Taiwan's first 12-inch silicon carbide crystal rod using a crystal growth furnace designed and manufactured in-house by its parent company, Peng-Easy Mechanical Engineering. This achievement is significant because wafer size and equipment sourcing represent two distinct strategic implications, with equipment self-sufficiency being the more crucial factor.

Silicon carbide (SiC) doesn't start as a wafer. Each SiC wafer begins as a crystal rod, a dense cylindrical single-crystal ingot grown in a high-temperature furnace over several days or even weeks using a physical vapor transport (PVT) process . SiC powder is placed in a sealed graphite crucible and heated to 2000 to 2400 degrees Celsius (3632 to 4352 degrees Fahrenheit). Under pressures as low as 10 to 90 Pa, the powder sublimates into a silicon- and carbon-containing gaseous species. A precisely designed temperature gradient—typically 10 to 50 degrees Celsius per centimeter—carries the gaseous phase upwards to a cooler seed crystal, allowing the crystal to deposit atom by atom and grow into a crystal rod. Each growth cycle typically runs continuously for over 100 hours; any interruption will degrade the crystal quality.

The larger the crystal diameter, the greater the engineering difficulty. Maintaining a uniform thermal field on a 12-inch crystal is far more challenging than on a 6-inch standard, from a thermal physics perspective. The geometry of the graphite crucible, induction coil, insulation materials, and airflow dynamics must all be designed to control the temperature gradient within strictly permissible limits over an area four times the size of a 6-inch crystal. Therefore, the real technological barrier for large-scale SiC is not the crystal itself, but the growth furnace capable of producing these crystals.

Growing a 12-inch crystal ingot is a milestone, but building a crystal growth furnace is the breakthrough.

Until recently, most Asian SiC manufacturers sourced such equipment from the United States and Japan, the two leading producers of precision high-temperature equipment. In 2023, Taisilicon originally planned to operate 65 growth furnaces , with 5 from the United States, 10 from Japan, and the remainder supplied by Ponyi. The crystal ingots grown on August 30th changed this configuration. If Taiwan can grow 12-inch crystals using Ponyi's entirely self-designed equipment, theoretically, SiC substrate production capacity can be expanded without waiting for import licenses or dealing with third-country technology licensing issues. As semiconductor equipment becomes a focus of export control policies, this structural weakness is receiving increasing attention.

What exactly does 12-inch wafers represent for the economic benefits of SiC?

The SiC wafer market size was approximately US$822 million in 2024 and is projected to reach US$4.27 billion by 2033, representing a CAGR of approximately 20%. Electric vehicle powertrain systems, industrial motor drives, renewable energy inverters, and power supply systems for AI data centers are the main drivers of growth. SiC substrates still account for 40% to 50% of the total cost of SiC wafers, far exceeding the cost of silicon substrates in traditional semiconductor manufacturing. Therefore, each increase in ingot diameter by one pitch can potentially bring significant economic benefits.

The calculation is straightforward: wafer area is proportional to the square of its diameter. A 12-inch wafer has 2.25 times the surface area of ​​an 8-inch wafer. In practice, SICC's 12-inch substrate yield data shows that the number of chips per wafer on a 12-inch platform is approximately 2.5 times that of an 8-inch platform. This ratio directly translates to a reduction in cost per component; no improvement in the underlying growth process is needed, only a larger usable area. 6-inch wafers currently dominate the market , accounting for approximately 42% of revenue in 2026; most companies are racing to expand their 8-inch capacity. As for 12-inch wafers—Tessil's current new target—the industry generally believes that even for the most resource-rich companies, mass production is unlikely to be achieved until the late 2020s.

While industry standards are still being established, Tessil is entering this untapped field ahead of time.

Ten years of conscious and gradual upgrading

Tecs Silicon's rapid development has compressed a process that typically takes much longer for multinational companies. In less than three years, the company grew its first 4-inch SiC crystals and tripled its growth furnace capacity by the end of 2022 , supplying the capacity needs of what would later become Foxconn's 6-inch SiC wafer fab in the Hsinchu Science Park. In June 2023, Tecs Silicon showcased Taiwan's first 8-inch SiC wafer; at the time, the company's CEO stated that Tecs Silicon's crystal growth technology lagged behind Cree by about a year. At that time, Cree was the only manufacturer in the world capable of mass-producing 8-inch SiC substrates.

Foxconn has been a crucial pillar in this development process. In July 2022, Foxconn invested NT$500 million to acquire a 10% stake in Tecsin, providing the company with funding and bringing stable potential demand. Chen Hsuan-pin, General Manager of Foxconn's Semiconductor Business Group, stated at the time that SiC substrates are "a crucial part of the electric vehicle supply chain because they account for a large portion of the overall cost of SiC semiconductors."

This partnership has gradually formed an integrated SiC supply chain that is among the few outside of traditional European, American, and Japanese companies: Tecsin is responsible for upstream crystal growth and substrate manufacturing, Mega International Development Limited is responsible for wafer dicing, grinding, and polishing, and Foxconn has acquired a SiC wafer foundry in the Hsinchu Science Park from Macronix. Now, Tecsin's parent company, the industrial automation group Ponyi, has also supplied the growth furnace that produced Taiwan's first 12-inch crystal ingot.

How exactly are SiC crystals grown?

The physical vapor transport (PVT) process begins by loading high-purity SiC powder into a graphite crucible, which is then sealed within a Pengyi-type induction furnace and heated to 2000-2400 degrees Celsius (3632-4352 degrees Fahrenheit) using an RF coil. Under near-vacuum pressure and high temperature, the powder sublimates into gaseous species , primarily Si₂C, SiC₂, and Si. These gaseous species diffuse upwards through the crucible towards a SiC seed crystal positioned above the chamber at a lower temperature. The seed crystal is intentionally kept at a lower temperature; the temperature difference causes the gaseous substances to precipitate, promoting crystal deposition.

Scaling up to 12 inches presents the most challenging aspect: radial temperature uniformity. A thermal gradient acceptable for 6-inch wafers can lead to poor packing on the seed surface of 12-inch wafers—crystal defects that reduce device performance. A seed cavity simulation study found that with specific design elements in the seed cavity, the radial temperature difference on the seed surface of an 8-inch wafer could be reduced from 93 degrees Celsius (200 degrees Fahrenheit) to 11 degrees Celsius (52 degrees Fahrenheit), an improvement of 88%, enabling stable growth. Achieving similar uniformity at 12 inches requires furnace thermal engineering capabilities that have been demonstrated by very few global players. If PENGYI can achieve 12-inch wafers using its own designed equipment, it will join the ranks of the very few equipment manufacturers possessing this type of precision manufacturing capability.

The global competitive arena is becoming increasingly crowded.

This milestone for Tessil comes as the global competitive landscape is rapidly reshaping over the past 18 months.

The structural change began with Cree. This American company held approximately 33.7% of the global SiC substrate market in 2024 and was for many years the only manufacturer capable of mass-producing 8-inch substrates. However, burdened with $4.6 billion in debt, it filed for Chapter 11 bankruptcy reorganization on June 30, 2025. Cree completed its Chapter 11 reorganization on September 29, 2025, reducing its total debt by approximately 70%, and announced a breakthrough in Cree's 300mm SiC technology on January 13, 2026. Cree's Chief Technology Officer, Elif Balkas, described it as "a significant technological achievement and the result of years of focus on innovation in crystal growth, ingots, and wafer fabrication."

The rapid pace of development by Chinese companies has made it difficult for the industry to quickly absorb their impact. At Semicon China in March 2025, SICC had already achieved a 22.8% global market share in SiC substrates in 2024 and showcased a complete commercial portfolio of 12-inch substrates, including N-type conductive and high-purity semi-insulating types. In September 2025, JSG launched its first 12-inch pilot production line , with all core equipment domestically produced in China. In October, Zhuhai Tiancheng Advanced announced the launch of a 12-inch high-purity semi-insulating SiC crystal with an effective thickness exceeding 35 mm. In December, CGEE delivered its first commercially developed 12-inch SiC crystal growth furnace. In February 2026, Luxshare Precision produced its first 12-inch SiC single crystal sample. In March of the same year, Tiancheng Semiconductor announced the use of its self-developed equipment to manufacture 14-inch SiC single crystals, indicating China's intention to directly leapfrog the 12-inch stage.

Against this backdrop, China's SiC market share has risen to about 40% of the global SiC substrate market; Cree has maintained its market position, but has gone through bankruptcy reorganization, while Western production capacity has been limited by years of insufficient investment compared to demand.

Peng Yi's shift and the signals revealed by its listing on the Emerging Stock Market.

Founded in 1976, Pengyi Machinery Engineering Co., Ltd. is listed on the Taipei Exchange (stock code: 6125). The company's main business has always been industrial automation and factory logistics, including automated warehousing, production line systems, and liquid-cooled infrastructure for AI servers. Its development of a crystal growth furnace capable of producing 12-inch SiC ingots indicates the company's intention to enter the high-value semiconductor equipment market, a market long dominated by Japanese, German, and American companies.

On August 19, Hsieh Hung-liang, founder and chairman of Ponyi, publicly confirmed the development plans of two subsidiaries through Ponyi's listing announcement on the Emerging Stock Market : Taisilicon Materials (SiC) and its sister company Kent (targeting AI data center infrastructure) are both expected to be listed on the Taiwan Emerging Stock Market in October 2026. This timeline is significant for Taiwan's industrial policy circles: a SiC materials company and a data center infrastructure company, both spun off from an automation industry parent company, have entered the public market within weeks, demonstrating that the SiC vertical supply chain centered on Foxconn is gradually maturing and moving towards independent financing.

What will happen next?

The process engineering work between growing a single 12-inch wafer and mass-producing 12-inch substrates still takes several years. This includes improving crystal quality, reducing differential packing density, increasing the number of growth furnaces, obtaining wafer certification from component manufacturers, and reducing costs to improve price competitiveness. Cree itself has not yet announced a commercialization timeline for its 300mm platform. Expanding 8-inch SiC production by 2026 remains an industry priority, and even for the most resource-rich companies, 12-inch mass production will still be several years away.

For Tecs, the immediate priority is likely to be converting 12-inch ingot demonstrations into repeatable, high-yield growth batches, followed by advancing wafer certification with power device manufacturers. Tecs' location within the Foxconn ecosystem provides a favorable environment for initial verification; however, Tecs has previously indicated its intention to expand its substrate supply to customers outside the Foxconn ecosystem.

The deeper significance of the August 30th announcement may not lie in the 12-inch diameter itself, but in the fact that a Taiwanese industrial automation company primarily engaged in warehousing and conveying systems has designed a crystal growth furnace that has allowed it to enter the ranks of equipment manufacturers that most countries cannot obtain. This growth furnace is more difficult to imitate and more difficult to acquire through import, thus becoming a more sustainable competitive asset. While Tecsin has grown Taiwan's first 12-inch crystal ingot, the equipment used to grow this ingot can manufacture even more ingots.

Frequently Asked Questions

Why is wafer size so important for silicon carbide?

Since substrate costs account for 40% to 50% of the total cost of SiC wafers, far exceeding that of traditional silicon semiconductor manufacturing, increasing the ingot diameter can directly reduce the cost per device. A 12-inch (300 mm) wafer provides approximately 2.5 times the usable die area of ​​an 8-inch (200 mm) wafer. In material processing where each growth cycle takes days or even weeks and requires temperatures exceeding 2000 degrees Celsius (3632 degrees Fahrenheit), each increase in size can bring significant improvements in manufacturing efficiency without changing the underlying chemical processes.

Why is the growth furnace manufactured by Pengyi strategically more important than the crystal rod itself?

Large-scale SiC crystal growth furnaces are a specialized category of equipment subject to export controls, with the market primarily dominated by US and Japanese manufacturers. Taiwanese SiC companies, including Tecsin, have historically relied on imports of these furnaces. However, with advanced semiconductor equipment becoming a focus of export control policies, reliance on foreign growth furnace suppliers has created a structural weakness: regardless of Taiwan's strong crystal growth capabilities, licensing restrictions or trade disputes can slow down capacity expansion. Domestically designed growth furnaces capable of producing 12-inch SiC ingots can eliminate this single external dependency on the most technically demanding stage of the manufacturing process.

Who are the main competitors in the global 12-inch SiC race?

As of August 2026, competitors include Cree (USA, announced 300mm wafers in January 2026, but has not yet announced a commercialization timeline), SICC (China, already commercially shipping 12-inch substrates), JSG (China, started pilot production in September 2025), and several other Chinese companies such as Tiancheng and Luxshare Precision. Tiancheng Semiconductor has announced the development of 14-inch SiC, directly skipping the 12-inch stage on paper. Including Cree, none of these companies have announced mass production timelines; 2026 will primarily be a year of expanding 8-inch capacity for the entire industry. Tecsilicon's unique advantage lies in its simultaneous achievement in 12-inch wafer production and domestically produced growth furnaces; most competitors who have achieved 12-inch wafer production still rely to some extent on imported equipment.

When will Tecs be able to mass-produce 12-inch SiC wafers?

Not in the short term. Moving from a single demonstration wafer to repeatable, high-yield mass production batches typically requires years of process engineering work. Afterward, the wafer must obtain certification from component manufacturers; for automotive and industrial applications, certification itself can take more than a year. Cree announced a 300mm technology breakthrough in January 2026, but has not yet announced a commercialization timeline. Any manufacturer aiming to mass-produce 12-inch SiC substrates is expected to wait until the late 2020s. Tecsilicon's milestone gives the company the opportunity to compete when the market matures, but this does not mean that commercial mass production has begun.