Changfei Advanced has closed an A+ financing round worth more than ¥1 billion, securing backing from provincial and industry funds as it ramps up work on silicon‑carbide (SiC) power semiconductors. The round was led by Jiangcheng Fund and the Yangtze Industry Group, with participation from Optics Valley financial vehicles and Chery’s automotive chip investment arm. Management says the cash will be used to build out technology across the full SiC power‑device value chain.
SiC is a high‑margin, capital‑intensive segment of the power‑semiconductor market that matters to electric vehicles, fast chargers and renewable‑energy converters because it enables higher switching frequencies, lower losses and better thermal performance than silicon. Global demand for SiC devices has accelerated as automakers and inverter makers race to improve efficiency and charging speeds. Historically much of the advanced SiC supply — especially substrates and epitaxy — has been concentrated in a handful of foreign incumbents, prompting Chinese firms and state funds to push for local capability.
The investor mix in this round is telling: provincial funds and a major industrial group led the deal, while an automaker‑linked fund joined as a strategic investor. That constellation signals a blend of commercial and policy motives: financial returns for backers, direct industrial support for automakers that need secure SiC supplies, and alignment with broader state goals of semiconductor self‑reliance. Chery’s involvement in particular suggests OEMs are investing upstream to stabilise supply and control costs.
Building a “full industry chain” for SiC typically means moving beyond device design into substrates, epitaxial layers, wafer fabrication, packaging and module integration. Each step carries technical hurdles — reducing defect density in SiC crystals, scaling wafer diameters, raising yields and developing robust power‑module packaging. Those challenges require sustained capital and long lead times, which helps explain why the sector has attracted patient, policy‑linked capital.
If Changfei can translate the new funding into demonstrable capacity and improved yields, the company would be well‑placed to supply China’s fast‑growing EV and industrial power markets and to compete with both domestic peers and foreign suppliers. For automakers, more domestic SiC supply could lower component costs, shorten lead times and reduce exposure to export controls or geopolitical disruption. For investors, success in SiC offers access to a segment with growing secular demand and relatively high margins.
Risks remain. Technical progress in SiC is incremental and uneven, and building a vertically integrated chain is expensive. Yield setbacks, slower than expected ramp‑up or new competitive entrants could blunt returns. Moreover, international tech restrictions and wider geopolitical tensions may shape which sub‑technologies and equipment remain available to Chinese manufacturers.
This funding round is a clear indicator that public and private capital in China are converging on strategic components of the EV supply chain. Watchers should monitor Changfei’s next milestones — pilot production, wafer‑size expansion and module qualification — as early signals of whether this latest investment will translate into a meaningful shift in the global SiC landscape.