Why is China undercutting European and US silicon carbide wafer costs by nearly three times?

Why is China undercutting European and US silicon carbide wafer costs by nearly three times?
The cost gap is structural, not technical. A 6-inch SiC wafer costs about USD 1,200 to make in the Czech Republic versus roughly USD 400 in China. Three factors drive this: electricity prices, since SiC crystal growth runs at around 2,300°C for days and consumes 5-10 times more power than silicon; scale, as China now holds over half of global SiC substrate capacity, spreading fixed costs thinner; and a fully localized supply chain covering crystal growth furnaces, micropowder and processing, which cuts both procurement and maintenance costs. The result is brutal price erosion: 6-inch substrate prices fell about 40% year-on-year in Q1 2025 to RMB 2,500-2,800 per piece, near many producers' cost lines. Chinese firms are the main force pushing prices down, forcing players like onsemi to cut SiC wafer jobs in Europe and Wolfspeed into bankruptcy protection.