Samsung Restarts 8-Inch SiC Wafer Line for 2028

Samsung Electronics' foundry division has restarted preparations to build an 8-inch silicon carbide (SiC) production line, signaling a renewed push into compound semiconductors driven by surging AI-related demand. According to Korean media outlet ETNEWS, discussions with material, component, and equipment partners have already progressed to the scale of equipment procurement, with mass production targeted for 2028.

The move marks a significant strategic pivot for Samsung Foundry, which had paused its SiC commercialization efforts due to market downturns and a corporate focus on memory chips. Now, with the AI industry igniting explosive growth in power semiconductor demand, Samsung is betting big on compound semiconductors as a future growth engine.

Key Facts at a Glance

• Samsung Foundry is resuming construction preparations for an 8-inch SiC production line
• Discussions with equipment and materials partners have reached the equipment procurement stage
• A prototype pilot line is expected to be completed by 2027
• Mass production is targeted for 2028
• Samsung plans to convert existing 8-inch silicon (Si) fabs to SiC and gallium nitride (GaN) production
• The company first began SiC development in 2023 but paused due to market conditions

Why Samsung Is Reviving Its SiC Ambitions Now

Samsung's Device Solutions (DS) division first entered the SiC space in 2023, recognizing the material's superior performance characteristics for high-power, high-temperature applications. However, the semiconductor market experienced a significant downturn that year, and Samsung's leadership redirected resources toward its core memory business — particularly HBM (High Bandwidth Memory) chips needed for AI accelerators.

The landscape has shifted dramatically since then. The global AI boom has created unprecedented demand for power semiconductors, which are critical components in data center infrastructure, electric vehicles, and renewable energy systems. SiC-based power devices offer lower energy losses, higher thermal conductivity, and greater efficiency compared to traditional silicon-based alternatives, making them ideal for the high-power environments that AI workloads demand.

This convergence of AI-driven demand and SiC's technical advantages has compelled Samsung to dust off its compound semiconductor playbook and accelerate timelines.

Smart Factory Conversion Strategy Cuts Costs

One of Samsung's most notable strategic decisions is its plan to repurpose existing 8-inch silicon wafer fabrication facilities rather than building entirely new plants from scratch. This approach offers 2 key advantages that could give Samsung a competitive edge in the compound semiconductor race.

First, converting an existing fab significantly reduces upfront capital expenditure. Building a new semiconductor fabrication facility from the ground up can cost anywhere from $5 billion to $20 billion depending on the technology node and capacity. By retrofitting existing infrastructure, Samsung can enter the SiC market at a fraction of that cost.

Second, the conversion strategy helps improve capacity utilization rates at facilities that may be underperforming. As the industry increasingly shifts toward 12-inch wafers for advanced logic and memory chips, older 8-inch fabs risk becoming underutilized. Transforming these facilities into compound semiconductor production lines gives them a profitable second life.

This dual benefit of cost savings and improved utilization represents a pragmatic approach that could accelerate Samsung's time-to-market compared to competitors building greenfield facilities.

The Competitive Landscape: Samsung vs. TSMC and Wolfspeed

Samsung's SiC push places it in direct competition with several major players in the compound semiconductor space. Wolfspeed, the American SiC specialist, has been the industry leader with its dedicated SiC wafer production capabilities. However, Wolfspeed has faced financial challenges, filing for Chapter 11 bankruptcy protection in early 2025 despite holding cutting-edge technology.

Meanwhile, TSMC — Samsung's primary rival in the foundry business — appears to be taking a different approach. Reports suggest that while TSMC has pulled back from GaN production, Samsung has moved aggressively into that space, with its 8-inch GaN line reportedly on track for production as early as Q2 2026.

Other key competitors in the SiC market include:

• STMicroelectronics — A European leader in SiC power devices with established automotive partnerships
• Infineon Technologies — Germany-based chipmaker expanding SiC capacity aggressively
• ON Semiconductor — US-based firm with growing SiC revenue from EV applications
• Rohm Semiconductor — Japanese manufacturer with vertically integrated SiC production
• Bosch — Recently entered SiC chip manufacturing at its Roseville, California facility

Samsung's foundry model offers a distinct advantage: rather than manufacturing its own branded SiC chips, it can produce them for a wide range of fabless customers, potentially capturing market share across multiple end applications.

AI Is Reshaping Power Semiconductor Demand

The connection between artificial intelligence and power semiconductors may not be immediately obvious, but it is profound. Modern AI data centers consume enormous amounts of electricity. A single NVIDIA H100 GPU draws up to 700 watts, and large-scale AI training clusters can contain tens of thousands of these chips.

This massive power consumption creates intense demand for efficient power conversion and management systems. SiC-based power devices are increasingly preferred in these environments because they can operate at higher voltages and temperatures while wasting less energy as heat. Industry analysts estimate the global SiC power device market could reach $10 billion by 2030, up from approximately $3 billion in 2024.

Beyond data centers, SiC demand is being driven by several parallel trends:

• Electric vehicles — SiC inverters improve EV range by 5-10% compared to silicon alternatives
• Renewable energy — Solar inverters and wind turbine converters benefit from SiC's efficiency
• 5G infrastructure — Base stations require high-efficiency power supplies
• Industrial automation — Motor drives and power supplies in smart factories
• Grid-scale energy storage — Power conversion systems for battery installations

The AI industry's explosive growth is essentially acting as a catalyst that is pulling forward investment timelines across the entire power semiconductor ecosystem.

What This Means for the Semiconductor Industry

Samsung's re-entry into SiC production carries several important implications for the broader semiconductor landscape. For fabless chip designers, Samsung's foundry offering could provide a much-needed alternative to the limited SiC manufacturing options currently available. Most SiC production today is handled by integrated device manufacturers (IDMs) who both design and fabricate their own chips, leaving fabless companies with few outsourcing options.

For automotive OEMs and Tier 1 suppliers, Samsung's involvement could help ease supply constraints that have plagued the SiC market. The automotive industry has been the largest consumer of SiC power devices, and additional manufacturing capacity from a heavyweight like Samsung could stabilize pricing and improve lead times.

For Samsung itself, the SiC initiative represents a critical diversification play. The company's foundry business has struggled to compete with TSMC in advanced logic manufacturing, capturing only about 12% of the global foundry market compared to TSMC's roughly 60%. Compound semiconductors offer Samsung a chance to carve out a differentiated position in a high-growth market where TSMC's dominance is less entrenched.

Looking Ahead: The Road to 2028

Samsung's timeline envisions a prototype pilot line operational by 2027, followed by volume production in 2028. While this puts Samsung behind current market leaders like Wolfspeed and STMicroelectronics, the company's massive manufacturing expertise and financial resources could allow it to scale rapidly once production begins.

Several milestones will be critical to watch over the next 3 years. Equipment procurement decisions, expected in the coming months, will reveal the scale of Samsung's ambitions. Partner selections for SiC substrate supply will also be telling — the quality and availability of SiC wafers remain a bottleneck for the entire industry.

The success of Samsung's GaN line, which is expected to begin production in 2026, will serve as an important bellwether. If Samsung can demonstrate reliable compound semiconductor manufacturing with GaN, it will build confidence among potential SiC foundry customers.

Ultimately, Samsung's compound semiconductor strategy reflects a broader industry truth: the AI revolution is not just about designing smarter chips — it is about building the entire power infrastructure to support them. As AI workloads grow more demanding, the companies that can efficiently manufacture the power devices needed to feed these systems will occupy a critically important position in the global technology supply chain.