Samsung Electronics is officially preparing to enter the next-generation power semiconductor market. The company has begun placing orders for materials and equipment, aiming to start sample production of its silicon carbide (SiC) MOSFETs in the third quarter of 2026. This move signals an ambition to add a third pillar to its memory and foundry-centric business, targeting the structural growth in power efficiency demanded by EVs, industrial inverters, and data centers.
But why now, in a market facing such mixed signals? Samsung's decision appears to be a calculated response to three overlapping industry shifts.
First, the demand landscape has become challenging. The rollback of EV subsidies and infrastructure policies in the U.S. has created short-term uncertainty for North American demand. Simultaneously, a global price war, fueled by expanding Chinese production, has caused SiC wafer prices to plummet. This environment raises the risk of entering with a high-performance, high-cost product. Samsung's response is to start with a planar MOSFET, a mature, reliable, and cost-effective design. This strategy allows them to build a track record and manage risks before moving up the value chain.
Second, the competitive bar has been raised. European giants like STMicroelectronics and Infineon are aggressively expanding their 200mm (8-inch) SiC fab capacity, locking in customers with long-term agreements. This has made scale and vertical integration the new standard for success. For Samsung, this creates pressure to differentiate but also an opportunity. By focusing on 8-inch R&D from the start and potentially leveraging the strengthening Korea-U.S. supply chain—like SK Siltron CSS's wafer plant in Michigan—Samsung can build a path to cost competitiveness and supply stability.
Finally, the struggles of competitors have provided valuable lessons. Wolfspeed's difficult and costly transition to 200mm manufacturing, which led to a period of restructuring, highlighted the immense execution risks involved. This has likely reinforced Samsung's decision to pursue a gradual, phased approach: sample → pilot → mass production. This allows them to validate their process and ensure stable yields before committing to massive capital expenditure, a prudent strategy for a new entrant in a turbulent market.
- SiC (Silicon Carbide): A wide-bandgap semiconductor material that can operate at higher voltages, temperatures, and frequencies than conventional silicon, making it ideal for power electronics.
- MOSFET (Metal-Oxide-Semiconductor Field-Effect Transistor): A type of transistor used to switch or amplify electronic signals, acting as a fundamental building block in power devices.
- Planar MOSFET: A traditional MOSFET design with a flat, two-dimensional structure. It is known for its reliability and cost-effectiveness compared to more complex trench structures.