NXP to Close GaN Wafer Fab: Analysis of Tech Substitution Potential for A-share SiC Companies

In December 2025, Dutch semiconductor giant NXP announced it will close its ECHO gallium nitride (GaN) wafer fab in Chandler, Arizona, U.S., in Q1 2027, officially exiting the 5G RF power amplifier (PA) chip manufacturing business [1][2]. The fab was put into operation in September 2020 and was the most advanced GaN production facility at that time; it will be closed after only seven years of operation.

• Global 5G base station deployment volume is far below expectations, and mobile operators’ return on investment is insufficient
• The RF power amplifier business no longer aligns with the company’s long-term strategic direction
• 5G deployment progress has slowed, with no obvious signs of market recovery

This strategic adjustment marks the contraction of international giants in the GaN RF field, bringing structural opportunities to the silicon carbide (SiC) track.

• 5G RF Field:
  GaN remains the mainstream solution for high-frequency PA, but demand for SiC-based GaN epitaxial wafers is stable in high-power base station scenarios
• New Energy Vehicles:
  SiC is fully penetrating main drive inverters, OBC, and DC-DC systems, replacing IGBT and forming differentiated competition with GaN
• Industrial Power Supplies:
  SiC has significant thermal conductivity advantages in high-voltage and high-power scenarios

• Core Business:
  SiC semi-insulating and conductive substrate materials
• Technical Advantages:
  8-inch SiC substrate technology breakthrough, leading industry yield
• Market Position:
  Invested by Huawei Hubble, domestic substitution leader in substrate technology
• Substitution Logic:
  Benefits from SiC-based GaN epitaxial wafer demand and new energy vehicle SiC penetration rate increase

• Core Business:
  Hunan Sanan SiC production line, 6-inch SiC capacity layout
• Technical Advantages:
  Leading industry yield of 6-inch SiC MOSFET, IDM mode vertical integration
• Market Position:
  Largest domestic SiC capacity scale, covering full industry chain from substrate to device
• Substitution Logic:
  Undertakes power device market share released by international giants after contraction

• Core Business:
  SiC crystal growth furnaces and crystal growth equipment
• Technical Advantages:
  8-inch SiC crystal growth furnaces have achieved shipments
• Market Position:
  Equipment leader, benefits from SiC expansion wave
• Substitution Logic:
  SiC expansion wave drives equipment demand growth

• Core Business:
  SiC diode, MOSFET product lines
• Technical Advantages:
  6-inch SiC production line has achieved mass production
• Competitive Advantages:
  IDM mode with full industry chain integration capability

• Core Business:
  SiC Schottky diodes, MOSFET
• Technical Advantages:
  SiC products have passed automotive-grade certification
• Strategic Layout:
  Actively layout both SiC and GaN tracks

• Core Business:
  SiC SBD and MOSFET products
• Technical Advantages:
  Achieved mass production of SiC products
• Financial Performance:
  Stock price rose 42.64% in the past year, YTD increase of 59.26% [0]

• As an epitaxial substrate material for GaN, SiC remains irreplaceable in high-power RF applications
• Substrate manufacturers like Tianyue Advanced are expected to undertake stable demand

• SiC continues to penetrate 650V-3.3kV high-voltage fields
• IDM manufacturers like Sanan Optoelectronics and China Resources Microelectronics accelerate SiC capacity construction

• International giants’ contraction releases market share
• Domestic SiC manufacturers迎来 strategic opportunity to increase share

1. Tianyue Advanced (688234.SH)
   - Leading SiC substrate technology, 8-inch breakthrough, benefits from both RF and power tracks
2. Sanan Optoelectronics (600703.SH)
   - Largest SiC capacity scale, most integrated advantage with IDM mode
3. Jingsheng Mechanical & Electrical (688126.SH)
   - SiC crystal growth equipment leader, high order certainty

• 8-inch SiC substrate mass production progress
• SiC MOSFET yield improvement
• New energy vehicle SiC penetration rate increase
• Scale effect brought by capacity expansion

• Industry competition intensifies leading to downward price pressure
• Technology iteration fails to meet expectations affecting market share
• New energy vehicle sales fluctuations affect SiC demand
• Supply chain risks brought by international trade frictions

[1] Sina Finance - “NXP to Close ECHO Fab Wafer Fab, Exit Gallium Nitride 5G PA Chip Manufacturing” (https://finance.sina.com.cn/tech/digi/2025-12-14/doc-inhauuyz2667142.shtml)

[2] Electronic Engineering Album - “NXP: Close GaN Wafer Fab, Exit 5G RF” (https://www.eet-china.com/mp/a460522.html)

[0] Jinling AI - Listed Company Financial and Stock Price Data Based on Market Data API