The global power electronics industry is entering a new growth phase, with electrified vehicles continuing to drive silicon carbide (SiC) adoption while artificial intelligence data centers create new opportunities for gallium nitride (GaN) technologies. Delivering the keynote at EE Power Asia 2026, Milan Rosina, PhD, principal analyst for Power Electronics and Batteries at Yole Group, outlined how the industry is evolving beyond traditional silicon devices as power efficiency becomes increasingly important across transportation, energy infrastructure and AI computing.
SiC Market Still Driven by Electric Vehicles
According to Rosina, the overall power device market is projected to grow at more than 7% annually through 2031, although silicon will remain the dominant technology across many applications. Wide-bandgap semiconductors, however, are steadily expanding into high-growth markets where efficiency and power density offer significant advantages. Rosina identified electrified passenger vehicles as the primary growth engine for SiC devices, with battery electric vehicles (BEVs) accounting for the largest share of future demand. Yole Group forecasts the SiC market for electrified vehicles to approach $7 billion by 2031, supported by continued adoption of high-voltage powertrains and the transition from hybrid vehicles toward fully electric platforms.
China remains the dominant market for SiC-equipped BEVs and continues to widen its lead over Europe and the United States. Chinese automakers including NIO, Geely Group, XPeng and Xiaomi have accelerated deployment of SiC-based vehicle platforms, while BYD has strengthened its position through vertical integration spanning batteries, power modules, charging infrastructure and vehicle manufacturing. Rosina highlighted BYD’s move to a 1,000-V battery platform using 1,500-V SiC devices as an example of how integrated supply chains enable faster adoption of next-generation vehicle architectures.
GaN’s New Opportunity: AI Data Centers
Unlike SiC, whose growth remains closely tied to electric vehicles, GaN adoption has historically centered on consumer fast chargers. AI data centers are now emerging as the technology’s next major growth opportunity. Within AI infrastructure, power conversion spans multiple voltage levels and architectures, from grid-connected systems to processor-level voltage regulation. This creates numerous opportunities for both SiC and GaN across different stages of power delivery. Rosina noted that the ecosystem is evolving rapidly around this opportunity, with partnerships between module manufacturers, semiconductor suppliers and system developers becoming increasingly important. However, he cautioned that uncertainty surrounding future power architectures also introduces significant commercial risk. Companies investing heavily in particular GaN technologies or voltage classes could see substantial gains if their designs are adopted by major platform providers, but face equally significant losses if alternative architectures prevail.
Supply Chain Reshaping and Geopolitical Risks
The rapid growth of SiC has also transformed the supply chain, particularly at the wafer level, where Chinese manufacturers have significantly expanded both production capacity and quality. Historically, SiC wafer supply was dominated by established suppliers such as Wolfspeed, Coherent and SK Siltron. Today, companies including SICC and TanKeBlue have emerged as major competitors. Rosina noted that while established suppliers continue to lead in device quality and reliability, Chinese manufacturers have made substantial progress that could reshape competitive dynamics over the coming years. At the same time, manufacturers are increasingly adopting “China Plus One” sourcing strategies to reduce geopolitical risks and diversify supply, while Chinese suppliers continue expanding domestic production under a “Made in China for China” strategy. The market is also attracting new foundries as expanding production capacity places additional pressure on pricing despite rising demand.
XPLAIN AI’s Analysis: Opportunities and Risks for Investors
XPLAIN AI interprets these developments as signaling a structural shift in the power semiconductor landscape. For investors, the SiC market appears to have a stable medium- to long-term demand base, underpinned by the continued growth of EVs and the transition to high-voltage architectures. In contrast, GaN’s expansion into AI data centers represents a potentially transformative new demand driver beyond consumer electronics. However, the uncertainty around future power architectures poses a significant risk for GaN-related investments: companies betting on specific technology directions could see stark winners and losers. Additionally, the rise of Chinese suppliers and the diversification of supply chains may intensify price competition in the short term, but technology leadership and quality are likely to remain key differentiators in the long run. Geopolitical tensions could also expose regionally concentrated investments to unexpected regulatory risks.
Key Metrics to Watch
Going forward, key indicators to monitor include power architecture announcements from major AI data center operators, large-scale design wins for GaN and SiC devices, the pace of Chinese EV makers’ overseas expansion, and capacity expansion plans from leading semiconductor manufacturers. These factors will serve as critical barometers for gauging the actual growth trajectory of the power semiconductor market.
- SiC market for EVs forecast to approach $7 billion by 2031
- GaN adoption expanding from consumer chargers to AI data centers
- Chinese manufacturers SICC and TanKeBlue emerging as major SiC wafer competitors
- Uncertainty in future power architectures creates both opportunity and risk for GaN investments
- Supply chain diversification and geopolitical factors reshaping competitive dynamics
#PowerSemiconductors #SiC #GaN #AIDataCenters #ElectricVehicles #WideBandgap #PowerEfficiency #SemiconductorSupplyChain
Sources
- Power Electronics Market Entering New Growth Phase — EE Times Asia · News coverage · Tue, 28 Jul 2026 02:06:13 +0000
Written by: XPLAIN AI Editorial Team · Reviewed by: XPLAIN AI Editorial Desk
This content was drafted with AI assistance based on publicly available sources and reviewed under XPLAIN AI's editorial standards.