During the wafer fabrication procedure, abrasive machining occupies a large proportion in time and economic cost, mainly including grinding, lapping, and polishing. The third-generation semiconductor materials, represented by SiC, have the properties of high hardness, large brittleness, and strong chemical inertness, which make abrasive machining more challenging. To improve the machining efficiency and quality, this paper applied the smoothed particle hydrodynamics (SPH) method to simulate the machining behavior of single abrasive grain for SiC wafer. The micro-mechanical mechanisms of the main influencing parameters, such as velocity, depth, and angle, were studied in abrasive machining for SiC wafer. First, it is proved that using SPH coupled with a finite element to study the mechanical effects of abrasive machining for SiC wafer is a feasible and useful method. Then, the explanations for the beneficial effects of ultrasonic vibration-assisted machining, high-speed machining, and other abrasive machining are provided through the analysis of the simulated results. In addition, the optimization basis for parameters such as scratching velocity, scratching depth, and ultrasonic vibration frequency is obtained. This research provides a good insight into implying the micro-mechanical mechanisms of abrasive machining and achieving the optimization for the abrasive machining of hard-brittle wafer materials, which help avoid the shortcomings of experimental research and produce economic benefits.