When the surface of &bgr;‐SiC, grown epitaxially on (001) silicon by chemical vapor deposition, is chemically etched, boundaries appear which may be observed by optical or scanning electron microscopy. Examination by plan‐view and cross‐sectional transmission electron microscopy shows boundaries in the film which exhibit line or fringe contrast. Convergent beam electron diffraction has been used to show that these boundaries separate domains that are in an antiphase relationship to each other. A model is presented which discusses the formation of these domains from independent nucleation on a stepped substrate surface.