Industry observers had long viewed the collaboration skeptically, questioning SBI's lack of semiconductor expertise and due diligence, while pointing to PSMC's shaky financial history. The breakdown underscores the risks of ambitious chipmaking ventures without solid groundwork. China imposes restrictions on SiC expansion China's silicon carbide (SiC) market is facing a shake-up as improving yields have led to an oversupply of substrates, prompting the government to tighten restrictions on expansion approvals. The National Development and Reform Commission (NDRC) now controls the approval process, and in 2024, fewer than ten companies received permits for 8-inch production, causing a bottleneck in growth. This has left many businesses in limbo, unable to secure financing or government contracts, while companies like SICC, Summit Crystal Semiconductor, and Semicore, with strong 6-inch operations, continue to thrive.