2026 China Power Semiconductor Market Scale and Competitive Landscape: Deep Research Report

Abstract

Power semiconductors control all electricity in this era.

Unlike processors featured in consumer electronics advertisements, or memory chips that frequently dominate supply chain shortage headlines, power semiconductors perform one singular function at every moment: they precisely control the direction and form of electrical energy through switching actions occurring thousands to hundreds of thousands of times per second. In an electric vehicle accelerating from standstill, in a photovoltaic module converting sunlight to current, in a grid-scale energy storage station cycling megawatt-hours of electricity — power semiconductors are everywhere, acting as the "valves of electrical energy" in contemporary industrial civilization. These valves are undergoing a profound global restructuring.

In 2025, the global power semiconductor market reached approximately USD 60 billion, with China consuming roughly USD 25 billion (approximately RMB 180 billion), representing about 42% of the global total — making China the world's largest single-country market. In terms of volume, this is roughly 1.6 times the 2019 figure; in terms of structure, the market is undergoing a far deeper rewriting — silicon-based IGBT is rapidly penetrating new energy vehicles and photovoltaics, SiC MOSFET has crossed the threshold from a marginal substitute to mainstream front-end installation via the 800V high-voltage platform, and GaN devices have found their first genuine industrial-scale breakout point driven by AI computing infrastructure demand. These three demand drivers are erupting simultaneously, giving power semiconductors unique structural resilience within the broader semiconductor industry downturn.

New energy vehicle main drive modules push the per-vehicle value of IGBT above RMB 1,000, while the 800V high-voltage platform brings SiC MOSFET to the inflection point of front-end mass production. According to Q1 2025 data, SiC penetration in Chinese new energy vehicle main drive modules reached 18.9%; in 800V vehicle models already in mass production, SiC penetration stood at 71% — exceeding most institutions' beginning-of-year forecasts. From 2021, when automotive IGBT domestic substitution rate was approximately 31%, to approximately 65%–70% in 2025, the leap in China's automotive power semiconductor localization rate is the most landmark achievement in the power semiconductor industry over the past five years, and constitutes one of the most important narrative threads of this report.

Photovoltaic inverters consume large quantities of IGBT and SiC devices through global large-scale deployment. Global PV new installations are expected to exceed 500GW in 2025 — China accounting for approximately 250GW — driving continued expansion in global inverter power device demand. Domestic inverter leaders including Huawei Digital Power and Sungrow control approximately 70%–80% of global inverter shipments, making this supply chain dominance one of the most important channels for domestic power devices to break into global markets.

Energy storage converters (PCS) create a new demand plateau for high-end IGBT modules. China's new energy storage cumulative installations are expected to surpass 100GW in 2025; the PCS of each storage system's demand for high-reliability IGBT modules represents the "last mile" of power semiconductor localization — because requirements for device lifetime (20+ years) and reliability in this application currently explain why approximately 80% of high-end IGBT modules remain dependent on imports from Infineon and Mitsubishi.

Meanwhile, AI computing infrastructure is driving GaN into a central role in data center power supply. Innoscience (HK: 02577) successfully entered Nvidia's 800V HVDC supply chain in 2025, with AI datacenter GaN device sales growing 50.2% year-on-year, marking the first commercialization validation of domestic GaN devices in the world's highest-demand-intensity industrial application scenario.

On the international competitive landscape, 2025 was a year of profound rewriting of the global power semiconductor map. Infineon Technologies achieved FY2025 (through September 2025) revenue of approximately EUR 14.7 billion with a Segment Result Margin of 17.5% and SiC revenue of approximately USD 1 billion; STMicroelectronics achieved full-year revenue of approximately USD 13.27 billion, deeply tied to BYD and Tesla in SiC devices while jointly building an 8-inch SiC wafer fab in China with San'an. The most impactful event came from Wolfspeed: on June 30, 2025, Wolfspeed filed for Chapter 11 bankruptcy reorganization; on September 29, 2025, it emerged from bankruptcy, eliminating approximately USD 4.6 billion in debt (a 70% reduction) — the largest restructuring in the history of the global SiC industry, whose shockwaves have rewritten the global SiC substrate competitive landscape. The Dutch government's takeover of Nexperia (Nexperia Semiconductors) on national security grounds entered a new phase of Sino-Dutch semiconductor geopolitics, adding new variables to an already complex power semiconductor geopolitical landscape.

On the domestic competitive landscape, this report identifies the following key findings:

Starpower Semiconductor (603290) achieved 2025 revenue of RMB 4.012 billion (+18.34%), establishing itself as the largest-revenue domestic IGBT enterprise; but net profit fell 20.18% to RMB 405 million, with gross margin declining from approximately 31% in 2023 to approximately 26%, the "revenue growth without profit growth" pattern reflecting the depth of price pressure in the power semiconductor industry. R&D expenses grew 35.94% year-on-year, maintaining high R&D intensity in a cyclical trough — a proactive choice for the medium-to-long-term technology race.

CRRC Times Electric (688187) achieved 2025 revenue of approximately RMB 28.7 billion (+15.23%) with net profit attributable to parent company of approximately RMB 4.1 billion (+10.64%), and high-voltage IGBT device revenue exceeding RMB 1 billion — the first domestic enterprise to surpass this level. Leveraging CRRC's monopoly in rail transit and extending into energy storage/wind power, Times Electric significantly outperforms Starpower in earnings stability, making it the most defensive position among China's IGBT enterprises.

Tianyue Advanced (688234) achieved 27.6% global market share in conductive SiC substrates and 51.3% in 8-inch SiC substrates, completing a global substrate leadership transition during the historical window of Wolfspeed's bankruptcy. 2025 revenue declined 17.15% to RMB 1.465 billion with net profit loss of RMB 208 million; the price-for-share strategy creates near-term accounting pressure, but the substrate market share gain has set the stage for scale effects to be released in the 8-inch mass production era.

Innoscience (HK: 02577) achieved 2025 revenue of RMB 1.213 billion (+46.45%), gross margin turning positive from negative to approximately 7.3%, global GaN power semiconductor market share of approximately 31% (2023 data, global #1); entering the Nvidia supply chain marks a strategic anchor for GaN commercialization in the AI era.

This report follows the complete framework of "Definition — Global — Policy — Scale — Supply Chain — Enterprises — Industrial Clusters — Segments — Technology — Risks — Forecasts — Conclusions," using 2025 annual reports, Q1 2026 quarterly reports, and 2025 full-year industry data as the baseline to systematically analyze the competitive landscape and evolution logic of this industry at a historical inflection point.

Core judgment: China's power semiconductor localization is at the critical window of "quantitative change transitioning to qualitative change." Automotive IGBT localization rate has risen from 31% in 2021 to approximately 65%–70% in 2025 — this is the completed stage of quantitative change; SiC device localization rate of approximately 35%–40% is in the ascending phase of qualitative change; high-end IGBT modules (photovoltaic/energy storage/industrial high-power segments) and GaN power device localization rates remain below 25% and 10% respectively — qualitative change has yet to arrive. Over the next five years, the decisive variable will no longer be merely who can mass-produce, but who can simultaneously achieve international benchmarks in cost, reliability, and system solution capability while maintaining supply chain security in a continuously turbulent global trade landscape. Power semiconductor localization has passed the hardest startup phase and is entering the deep water zone that most tests comprehensive strength.

Reading the 2025 industry data against this backdrop reveals that China's power semiconductor is at a unique historical juncture: the past five years answered the question of "can we make it" (automotive IGBT mass production qualification, SiC substrate from zero to something); the next five years must answer "can we make it well, make it cheap, and sell it globally." These two phases have completely different technical challenges and business logic — the former required breakthroughs under adversity; the latter requires continuous improvement and scale economies.

This report covers the complete product categories of power semiconductors (IGBT, power MOSFET, SiC MOSFET, GaN HEMT, power diodes, power ICs), the complete supply chain (from SiC substrates to device packaging and testing), and the complete competitive dimensions (global vs. domestic landscape, technology roadmap vs. business model, historical data vs. future outlook), with the timeline anchored on 2025 full-year data and Q1 2026 reports, looking back five years and forward five years.

Rather than a flowing account of "what each enterprise did," this report focuses on answering three core questions: First, what fundamental, irreversible changes occurred in China's power semiconductor competitive landscape in 2025? Second, what is the underlying logic driving these changes, and does that logic still hold for 2026–2030? Third, what are the most critical variables over the next five years, and what kind of enterprises will become the true winners?

The answers to these three questions run through the entire report. The following twelve chapters expand on these answers.

Chapter 1　Definitions, Classifications and Supply Chain Overview

1.1　What Are Power Semiconductors

Power semiconductors are the collective term for semiconductor devices specialized in electrical energy conversion and control. Unlike processors, memory chips, and RF devices whose core function is signal processing, power semiconductors operate on electrical energy itself — controlling the magnitude, direction, and waveform of voltage and current in circuits to convert electrical energy from one form to another: AC to DC (rectification), DC to AC (inversion), DC to DC (chopping), AC to AC (variable frequency conversion).

In principle, power semiconductors are essentially "controlled switches" — switching rapidly on and off under control signal commands, delivering input electrical energy to the load in the required form. In a variable-speed air conditioner, power devices convert grid-frequency AC power into adjustable-frequency drive signals to enable infinitely variable compressor motor speed. In a pure electric vehicle, six or more IGBT chips forming an inverter convert the high-voltage DC power from the drive battery into three-phase AC power to drive the permanent magnet synchronous motor. In a photovoltaic system, power devices invert the DC output from solar panels into grid-frequency AC for feeding into the grid. Power semiconductors are the "valves" behind all these electrical energy conversion scenarios.

Unlike signal processing chips that pursue ultimate integration density and speed, power semiconductors pursue the unity of high voltage, high current, and low conduction loss. These three objectives are naturally in tension with each other: lower conduction resistance typically degrades voltage withstand capability; faster switching speed complicates the overall trade-off between conduction loss and switching loss. This is precisely why the technology advancement path of power semiconductors differs fundamentally from general-purpose logic chips — it does not rely on photolithography machine process shrinkage, but on engineering innovation in device structure. From planar type to trench type, from silicon-based to silicon carbide to gallium nitride, each leap in material and structure brings an order-of-magnitude improvement in electrical performance.

This fundamental difference is also reflected in the business model of power semiconductors. General-purpose logic chips (CPUs, GPUs) rely on Moore's Law for process node upgrades every approximately two years, with design companies (Fabless) outsourcing wafer manufacturing to foundries such as TSMC. Power semiconductors, however, are dominated by the IDM (Integrated Device Manufacturer) model, where the same company simultaneously controls design, manufacturing, and packaging, because power device performance is highly coupled to the microscopic control of manufacturing processes — design and process must co-iterate. This model difference profoundly shapes the power semiconductor industry's competitive landscape — higher barriers, higher migration costs, but also lower portability of process technology — which also explains why China's power semiconductor localization is simultaneously easier (no reliance on EUV lithography) and harder (requires long-term process accumulation on the manufacturing side) than consumer logic chips.

1.2　Device Classification of Power Semiconductors

Power semiconductors can be divided into four major device categories, each with clear differentiation in application scenarios and technology roadmaps.

Insulated Gate Bipolar Transistors (IGBT) are the most widely used power switching devices with the largest market scale. IGBT combines the high current density of bipolar junction transistors (BJT) with the high input impedance (voltage-controlled, no static gate current) of MOSFETs, suitable for mid-to-high voltage (600V–6500V), medium-to-large current (10A–3600A) applications. It is the standard configuration for new energy vehicle main drive inverters, photovoltaic inverters, energy storage converters, rail transit traction systems, and industrial variable frequency drives. IGBT's core advantage is that within its operating voltage range of tens to thousands of volts, it can balance a relatively low on-state voltage (VCE(sat) of approximately 1.5–2.5V) with relatively fast switching speed (microsecond range), forming a unique performance "sweet spot" compared to other devices. IGBT is typically delivered in module form — multiple chips and freewheeling diodes packaged in a single plastic-encapsulated or metal baseplate module — providing a standardized electrical interface for system integration.

Power Metal-Oxide-Semiconductor Field-Effect Transistors (Power MOSFETs) are among the fastest-switching power devices, suitable for mid-to-low voltage (below 600V) and high-frequency (> 100kHz) applications, serving as core devices in consumer electronics adapters, server power supplies, automotive 12V/48V system power, and industrial switching power supplies. Power MOSFET's greatest advantage is the absence of minority carrier storage effects, enabling extremely fast switching transitions (nanosecond range), ideal for high-frequency switching power supply designs. Super Junction (SJ) MOSFET is the mainstream recent improvement — using alternating P-column/N-column charge balance structures to reduce specific on-resistance by approximately 5–10× while maintaining high voltage withstand — making it the mainstream solution for power devices below 600V. Infineon's CoolMOS™ is its representative product.

Power Diodes (Rectifier Diodes) are the most fundamental power passive devices, including ordinary rectifier diodes, Fast Recovery Diodes (FRD), and Schottky Barrier Diodes (SBD). In IGBT or MOSFET circuits, power diodes typically serve as freewheeling diodes, carrying current during dead time of switching actions to protect switch devices. SiC Schottky Barrier Diodes (SiC SBD), with no reverse recovery charge (unipolar devices), have become the "golden partner" for pairing with silicon-based IGBT to reduce switching losses, and were the first SiC device category to achieve commercial mass production.

Power Integrated Circuits (Power ICs) integrate power devices with control circuits in the same chip or module, including gate driver ICs, switching power supply controllers (PWM controllers), motor driver ICs, and Intelligent Power Modules (IPM — integrating IGBT chips, driver ICs, over-current/over-temperature protection circuits in a single package). Power ICs are widely used in home appliances (IPM modules for variable-frequency air conditioners), automotive electronics, and consumer electronics.

Additionally, Thyristors (SCR) and Gate Turn-Off Thyristors (GTO) remain irreplaceable in ultra-high power (tens to hundreds of MW) HVDC converter valves, being the oldest device family in the power device family.

1.3　Material Classification: Silicon-Based and Wide Bandgap

From a material perspective, power semiconductors have undergone the historical evolution from "silicon dominance → wide bandgap emergence" — driven by the necessary choice imposed by the physical limits of materials, rather than the subjective preferences of technologists.

Silicon (Si) based power devices are the current mainstream, accounting for over 80% of market volume. Silicon material technology is highly mature, material costs are low (8-inch silicon wafers approximately USD 10–15), and the supply chain is well-established. It is the mainstream substrate material for IGBT, power MOSFET (including super junction), and power ICs. However, silicon material's physical limits constrain its further improvement in high-temperature (Tj > 200°C), high-voltage (> 1700V for mass-produced IGBT), and high-frequency (> 30kHz IGBT) scenarios.

Silicon Carbide (SiC) is currently the most important wide bandgap semiconductor material, with a bandgap (3.26 eV) approximately 3× that of silicon, breakdown electric field (approximately 3 MV/cm) approximately 10×, thermal conductivity (approximately 4.9 W/(cm·K)) approximately 3×, and saturated electron drift velocity approximately 2×. These parameter advantages translate to device performance: SiC MOSFET can reduce on-resistance by 50%–70% compared to silicon-based IGBT at the same voltage rating; switching losses can be reduced by over 50%; operating junction temperature can reach above 200°C (silicon-based IGBT typically 150–175°C). SiC is particularly suitable for new energy vehicle main drives (especially the 800V platform) and large-scale photovoltaic inverters.

Gallium Nitride (GaN) has a bandgap of 3.4 eV with extremely high two-dimensional electron gas (2DEG) density (approximately 10¹³ cm⁻²) and high electron mobility (approximately 2000 cm²/(V·s)), enabling GaN HEMT switching frequencies reaching tens to hundreds of MHz — making it the ideal device for low-to-mid voltage (100V–650V) ultra-high-frequency applications. Current applications primarily include consumer electronics fast charging (GaN chargers — fast charging above 100W has largely shifted to GaN), server/datacenter power supplies, wireless charging base stations, and expanding vehicle on-board chargers (OBC) and datacenter 800V HVDC power supply systems.

Key performance comparison of the three materials:

Parameter	Si	SiC	GaN
Bandgap (eV)	1.12	3.26	3.4
Breakdown field (MV/cm)	0.3	3.0	3.3
Thermal conductivity (W/(cm·K))	1.5	4.9	1.3
Electron mobility (cm²/(V·s))	1400	700	2000 (2DEG)
Primary voltage range	< 6500V	650V–3300V mainstream	< 650V mainstream
Cost (relative)	Lowest	High (substrate costly)	Medium (GaN-on-Si cost reduction)

1.4　Voltage Rating Classification

By rated operating voltage, power semiconductors can be divided into four ranges, corresponding to different mainstream devices and application domains.

Low-voltage segment (below 100V): Dominated by power MOSFETs, primarily used in consumer electronics power supplies (DC-DC conversion in laptops and phone chargers), PC motherboards (CPU power supply VRM), automotive 12V/48V power systems, and industrial low-voltage drives. Technology is most mature, domestic competition most intense, with multiple domestic enterprises (Silan Micro, SiEn, Novosense, etc.) achieving batch substitution of imports.

Mid-voltage segment (100V–650V): The main battleground for silicon super-junction MOSFETs and GaN HEMTs. Consumer electronics fast charge adapters (65W–240W) have largely migrated from silicon SJ MOSFET to GaN; server power supplies (400V/600V input side) are beginning to adopt GaN.

Mid-to-high voltage segment (650V–1700V): The most fiercely contested range between IGBT and SiC MOSFET, and the largest by value. Covers new energy vehicle main drives (750V/1200V IGBT or SiC MOSFET for 400V platforms, 1200V/1700V SiC MOSFET for 800V platforms), residential/commercial PV inverters (650V/1200V), medium-sized energy storage PCS (1200V), and industrial variable frequency drives (600V/1200V). This is the primary market analyzed in this report.

High-voltage segment (above 1700V): The domain of IGBT modules (3300V/4500V/6500V) and thyristors — used for rail transit traction converters, large-scale energy storage systems (high-voltage multilevel topologies requiring above 3300V IGBT), HVDC (high-voltage direct current transmission), and large wind power converters. Entry barriers are highest and reliability validation periods longest (rail transit IGBT modules typically require 5+ years of validation). Domestically, only Times Electric can mass-produce at scale in this range; Infineon, Mitsubishi Electric, and Fuji Electric are long-term dominators.

1.5　Full Supply Chain Overview

The power semiconductor supply chain, from upstream to downstream, consists of five major segments: substrates/materials, epitaxy, chip design and manufacturing, packaging and testing, and finally system applications and final products. Unlike consumer logic chips, these five segments are typically vertically integrated by the same IDM enterprise rather than divided among independent companies.

The substrate segment is the source of the entire supply chain. For silicon-based power devices, substrate technology is fully mature; for SiC, substrate preparation involves PVT (Physical Vapor Transport) growth at approximately 2400°C — the highest-barrier segment in the entire chain and the strategic node where Chinese enterprise Tianyue Advanced has achieved a global #1 breakthrough. For GaN-on-Si pathways, GaN is grown directly on ordinary silicon substrates through epitaxy, bypassing the high costs of standalone GaN substrates.

The epitaxy segment involves CVD (Chemical Vapor Deposition) growth of functional thin layers on substrates, with uniformity and defect density directly determining device performance and mass production yield. SiC epitaxy uniformity control (large-area uniformity deviation < 5% on 8-inch substrates) is one of the most important current technical research priorities.

Chip design and manufacturing is the core manufacturing process of implementing device structural patterns on wafers through photolithography, ion implantation, oxidation, metallization, and other process steps. Power semiconductor manufacturing uses mature processes from 40nm–0.18μm, without relying on EUV lithography machines — giving Chinese power semiconductor IDM capacity expansion relatively lower regulatory risk under the current geopolitical background.

Packaging and testing is the final step in power device production and the critical engineering segment determining whether devices can operate reliably for extended periods under harsh conditions. The core challenge of power module packaging is heat dissipation — power devices generate large amounts of heat during operation, which must be conducted out through a series of thermal structures. The rise of copper sintering packaging technology has increased the thermal cycling lifetime of automotive-grade modules by 3–4×, representing the most important packaging technology progress in recent years.

Downstream application systems span new energy vehicles (main drive/OBC/DC-DC/on-board power), photovoltaics and energy storage (inverters/PCS/MPPT controllers), industrial (variable frequency drives/UPS/welding power/servo drives/elevators), home appliances (variable-frequency air conditioners/compressors), rail transit (traction converters/auxiliary power), datacenters (power distribution/server PSU), consumer electronics (fast charging/adapters), and medical equipment (high-voltage power supplies for radiotherapy/imaging), forming a highly diverse end market.

1.6　Fundamental Differences Between Power and Signal Processing Semiconductors

The fundamental differences between power semiconductors and signal processing semiconductors (CPUs, GPUs, memory), often overlooked by external observers of the semiconductor industry, are crucial for judging the feasibility paths for China's power semiconductor localization.

Different physical mechanisms: Signal processing semiconductors process electronic signals (0/1 logic states); power semiconductors process electrical energy (voltage × current). The engineering optimization objectives are completely different — the former pursues "smaller is better," the latter pursues "higher voltage and current at thinner wafers while not leaking."

Different manufacturing processes: Signal processing semiconductors rely on EUV lithography to achieve 3–7nm processes; power semiconductors primarily use mature processes of 0.18μm–40nm, not requiring EUV. This makes power semiconductor manufacturing face smaller political risk under current geopolitical conditions.

Different barrier sources: Signal processing semiconductor barriers come primarily from design (architectural innovation) and process (miniaturization limits); power semiconductor barriers come primarily from process accumulation (multi-year batch data libraries), material innovation (exploring physical limits of SiC/GaN), and reliability validation (time accumulation required by AEC-Q101 etc.). The former can be broken through relatively quickly with massive R&D investment; the latter is highly time-dependent.

Different market structure: Signal processing chip markets (CPU, GPU) tend toward winner-take-all oligopoly structures; power semiconductor markets are fragmented "multiple segments, multiple winners" — no single company can dominate all voltage ranges and all application scenarios simultaneously. Infineon's global #1 accounts for only approximately 17%–20% of the market (including discrete devices). This structural characteristic means it is entirely possible for Chinese enterprises to reach global top five in a specific segment (such as automotive IGBT modules) — unlike in CPU/GPU where it is nearly impossible.

1.7　Value Distribution in the Power Semiconductor Supply Chain

From a value distribution perspective, the profit contribution and competitive moat depth of each supply chain segment are crucial for understanding the strategic choices of various enterprises.

Substrate segment (SiC exclusive, high value): SiC substrates account for approximately 40%–50% of total SiC device cost, with supply highly concentrated (Tianyue Advanced + Tankeblue combined accounting for 70%+ of Chinese capacity), representing the deepest competitive moat — the highest-margin segment in the SiC value chain (when market supply-demand is balanced, substrate gross margin can reach 40%–60%).

Epitaxy segment: Moderate added value, typically performed by IDM in-house or a few specialized contract growers; SiC epitaxy has relatively high technical barriers (uniformity control); silicon epitaxy (for IGBT/MOSFET) is already a mature commodity service.

Chip manufacturing segment: The core of IDM, locking in competitive advantages through process proprietary nature (precise doping and structure formation); moderate gross margins (30%–45% for IDM) but requiring massive fixed asset investment.

Packaging segment: Moderate added value with domestic packaging enterprises having established strong cost competitiveness; copper sintering and DSC are new differentiation points; standard plastic encapsulation is largely localized.

Module system design: As system integration level rises, the added value of "Power Stage module solutions" is increasing; mastering driver IC + sensors + IGBT/SiC + packaging in an integrated solution is the direction for future value enhancement.

This value distribution pattern explains several key phenomena: why Tianyue Advanced dares to cut prices by 38% and still maintain global #1 (high substrate profits support strategic pricing); why Innoscience chose GaN-on-Si over the more expensive GaN-on-SiC (cost advantage to capture large-scale market entry); why Starpower insists on IDM transformation (complete production line control is the necessary condition for maximizing power device enterprise profit margins).

Chapter 2　Global Competitive Landscape and Overseas Market Leaders

2.1　Global Market Overview and Competitive Structure

In 2025, the global power semiconductor market reached approximately USD 60 billion. After cyclical adjustment through 2023–2024, driven by demand from four sectors — new energy vehicles, photovoltaics, energy storage, and datacenters — the market entered a moderate recovery trajectory in 2025. The root cause of the cycle adjustment was excess inventory accumulated during the pandemic-era (2020–2022), which entered a systematic digestive phase in 2023, causing leading global power semiconductor companies to broadly experience revenue declines and gross margin compression. By 2025, inventory digestion was nearing completion, and structural growth on the demand side was re-emerging.

From geographic consumption structure: China commands approximately 42% consumption share as the world's largest single market; Europe (centered on Germany, Italy, France, with strong automotive and industrial foundations) contributes approximately 20%; North America approximately 15%; Japan/Korea and Southeast Asia combined approximately 23%.

From a technology dimension, the global power semiconductor market consists of three "tiers": mature silicon-based devices (IGBT/power MOSFET/diodes) at approximately 80% market share — the stable base; SiC devices at approximately 7% (approximately USD 4.3 billion), with over 30% CAGR — the fastest-growing segment; and GaN devices at approximately 3% (approximately USD 1.8 billion), penetrating industrial and automotive from the consumer electronics starting point.

The global power semiconductor market is fairly concentrated. The top five — Infineon, onsemi, STMicroelectronics, Wolfspeed (post-restructuring), and Rohm — collectively account for over 80% of the SiC market; the high-end IGBT module market is co-dominated by Infineon, Mitsubishi Electric, and Fuji Electric with CR3 of approximately 55%–65%.

2.2　Infineon Technologies: Defense and Offense by the Global Leader

Infineon Technologies AG (Germany, DAX: IFX), headquartered in Munich, is the absolute leader in global power semiconductors, maintaining global top 1-3 rankings across IGBT, power MOSFET, and SiC MOSFET product lines.

FY2025 Financial Performance: FY2025 (through September 30, 2025) revenue approximately EUR 14.7 billion, Segment Result Margin 17.5%, adjusted free cash flow approximately EUR 1.8 billion (approximately 12.3% FCF margin), proposed dividend of EUR 0.35 per share. Full-year results met the company's previously adjusted guidance; management characterized this as "demonstrating operational resilience during a global semiconductor industry cyclical trough."

Infineon divides its business into four segments: Power & Sensor Systems (PSS) — the core of power semiconductors, covering IGBT modules, SiC MOSFET, power MOSFET, and drivers; Connected Secure Systems (CSS); Green Industrial Power (GIP) — focusing on industrial motors and renewable energy; and Microcontroller & Security (MSP).

SiC position: Infineon's CoolSiC™ product line covers 650V–2000V SiC MOSFET and SiC Schottky diodes, with FY2025 SiC revenue estimated at approximately USD 1 billion level, primarily from new energy vehicle main drive modules and photovoltaic inverters. Infineon is also advancing 8-inch SiC wafer manufacturing (at Module 5 in Villach, Austria) to match the long-term cost reduction roadmap.

IGBT technology leadership: Infineon's TRENCHSTOP™ 7th generation (T7) IGBT is the de facto industry reference standard for automotive main drive modules. Infineon's share in the global IGBT module market (automotive, industrial, PV) is approximately 35%–40% — an unassailable industry #1.

Strategic challenges: Facing the rapid rise in China's automotive IGBT market localization rate, Infineon's strategy is "move up to SiC, deepen system integration" — increasing SiC investment through the CoolSiC™ series to consolidate barriers in high-performance segments, while through integrated driver ICs and sensors in system solutions to increase customer stickiness. The 2024 acquisition of GaN Systems (Canadian GaN design company) completes Infineon's GaN product portfolio covering automotive OBC and datacenter power.

2.3　onsemi: The SiC Vertical Integration Challenger

onsemi (US, NASDAQ: ON) is one of the most aggressive practitioners of SiC vertical integration strategy in the global power semiconductor space. After acquiring GT Advanced Technologies (SiC crystal growth technology) in 2020, onsemi formed a vertically integrated capability of "proprietary SiC substrates → epitaxy → devices."

SiC device competitiveness: onsemi's EliteSiC™ M3S (3rd generation trench type) SiC MOSFET performs strongly in automotive main drive qualification projects, especially with deep certification accumulation in European and North American automotive OEM supply chains. onsemi also maintains top-two position in the DC fast charging (DCFC) market.

2025 financials and strategy: Under pressure from slowing EV sales growth and customer inventory adjustment, onsemi's 2025 overall revenue was under pressure at an estimated USD 70–75 billion, contracting from peak years. onsemi's Eastern European Czech wafer fab is expanding to reduce dependence on Southeast Asian capacity; simultaneously, the company is gradually shifting back-end capacity from primarily outsourced to a higher in-house ratio.

2.4　STMicroelectronics: European Localization and China Joint Venture

STMicroelectronics (France/Italy dual headquarters, NYSE: STM) achieved FY2025 net revenue of approximately USD 13.27 billion, gross margin 39.3%, operating margin 12.6%.

SiC strategic position: STMicro's unique advantage in SiC MOSFET is deep binding to two global EV leaders — BYD and Tesla — forming scale effects through their front-end mass production orders.

China localization strategy — San'an joint venture fab: STMicro jointly established a SiC wafer fab with San'an Optoelectronics in Chongqing, designed capacity of 480,000 8-inch SiC wafers annually. The factory completed line-on in early 2025 and began delivering samples to customers for validation, expected to enter mass production gradually from 2026.

Challenges: STMicro's 2025 revenue decline came primarily from inventory adjustment in automotive semiconductors (including SiC) and sluggish MCU demand. BYD's strengthening in-house SiC capability poses structural threats to STMicro's long-term position as a BYD supplier.

2.5　Wolfspeed: Bankruptcy Restructuring of the SiC Pioneer

Wolfspeed (US, NYSE: WOLF, spun out from former Cree's semiconductor division), headquartered in Durham, North Carolina, once controlled approximately 55% of the global SiC substrate market (before 2020) — the acknowledged "SiC industry godfather." Its extensive SiC patents and long-accumulated substrate technology made it the preferred material source for device manufacturers globally.

Aggressive expansion and financial distress: The explosive growth of global EV markets in 2021–2023 ignited enormous expectations for SiC capacity. Wolfspeed launched the largest SiC manufacturing investment plan in history — the Mohawk Valley fab in Marcy, New York, with planned total investment exceeding USD 6 billion, designed as the world's first large-scale 8-inch SiC wafer fab. However, slowing EV demand growth from 2023, customer SiC inventory accumulation, combined with Wolfspeed's own massive debt (approximately USD 6.5 billion) and persistent losses made its capital structure unsustainable.

Full bankruptcy restructuring process: June 30, 2025 — Wolfspeed filed a pre-packaged Chapter 11 reorganization petition with the U.S. Bankruptcy Court for the Southern District of Texas in Houston; September 8, 2025 — the court approved the reorganization plan; September 29, 2025 — Wolfspeed formally emerged from bankruptcy, reducing debt by approximately USD 4.6 billion (a 70% reduction), extending debt maturity from concentrated 2026–2028 to 2030, and reducing annual cash interest expense by approximately 60%. The entire process took approximately 91 days — a record for speed in SiC industry bankruptcy restructuring. Wolfspeed continues to operate its SiC business post-restructuring but with capital expenditure plans drastically reduced.

Impact on global SiC landscape: Wolfspeed's bankruptcy profoundly rewrote the global SiC landscape: conductive SiC substrate supply tightened temporarily; automotive OEMs and Tier1s that had qualified Wolfspeed products had to launch backup supplier certifications; Tianyue Advanced (688234) seized the opportunity to raise its global conductive SiC substrate market share to 27.6%, surpassing Wolfspeed to become global #1 — the direct biggest beneficiary of this disruption.

2.6　Rohm: The Japanese SiC Pioneer

Rohm Semiconductor (Japan, Tokyo Stock Exchange: 6963) is Japan's most important power semiconductor enterprise and a key patent holder in SiC MOSFET trench gate technology. Through its wholly-owned subsidiary SiCrystal (Germany), Rohm has vertically integrated SiC substrate supply — one of the few Japanese SiC manufacturers with both substrate and device capability.

Rohm's SiC business 2025 target revenue was approximately USD 700 million, primarily serving European and Japanese automotive OEMs. Rohm's differentiated advantage lies in its 4th-generation trench SiC MOSFET's on-resistance performance — among the lowest specific on-resistance (Rsp) of commercial mass production products currently available.

2.7　Mitsubishi Electric and Fuji Electric

Mitsubishi Electric (Japan) and Fuji Electric (Japan) are the traditional two giants in global industrial IGBT modules, each with 30+ years of IGBT technology accumulation, building extremely deep technical barriers in high-voltage high-power scenarios (above 1700V). Both companies face strategy of moving toward higher voltage segments (3300V–6500V IGBT) and higher integration modules (SiC modules, system-level power modules) to defend high-margin profit bastions against Chinese enterprises' price attacks in mid-to-low voltage IGBT modules.

2.8　Texas Instruments: Analog + GaN Flank Positioning

Texas Instruments (TI, US, NASDAQ: TXN) does not compete in power switch devices (IGBT/SiC MOSFET) as its core competitive track, but is the world's largest supplier in power analog ICs (gate driver ICs, switching power controllers, power management ICs), with competitive GaN FET and GaN driver products. TI's overall positioning is "analog + embedded," with FY2025 full-year revenue approximately USD 16 billion — the largest enterprise in the analog semiconductor domain.

2.9　Global Landscape and China Opportunity: A Comprehensive Judgment

Viewing the companies above together reveals the deep logic of the global power semiconductor competitive landscape: European and American enterprises defend technical leadership and automotive/industrial high-end markets; Japanese enterprises defend high-voltage large-power profit bastions; Chinese enterprises use automotive IGBT as a breakthrough and progressively extend upward to high-end, while competing for greater global voice in SiC substrates and GaN devices.

Wolfspeed's bankruptcy was one of the luckiest moments in Chinese SiC enterprises' history — not because a competitor disappeared, but because it provided a difficult-to-replicate historical window: the world's largest SiC substrate supplier experienced supply contraction at a critical moment, prompting global device manufacturers and OEM customers to accelerate introduction of Chinese substrate enterprises as backup suppliers. Once this certification process is complete, it is difficult to reverse in the short term.

2.10　Deep Analysis of Global SiC Market Competitive Dynamics

The SiC market is the most complex and dynamic segment of the power semiconductor industry in 2025, with the competitive landscape having undergone profound rewriting following Wolfspeed's bankruptcy.

Market scale and growth: 2025 global SiC power device market approximately USD 4.3 billion; automotive main drive (including OBC/DC-DC) approximately 60%–65%; industrial/energy (PV inverters, industrial power) approximately 30%; consumer/other approximately 5%–10%. Growth approximately 25%–30%. China accounts for approximately 30% of the global SiC market — the fastest-growing region.

Substrate-level competitive structure rewriting: Before Wolfspeed's bankruptcy (through H1 2024), its global conductive SiC substrate market share was approximately 30%–35%. After the restructuring, its substrate capacity contracted with actual shipments reducing approximately 30%–40%. The vacated market space was rapidly filled by Tianyue Advanced, Tankeblue (China), SiCrystal/Rohm (Germany/Japan), and SK Siltron (South Korea). By end-2025, Tianyue Advanced's global conductive SiC substrate market share reached 27.6% — global #1.

Device-level competitive structure: At the SiC MOSFET device level, Infineon remains global #1 (approximately 30%–35% market share), followed by onsemi (approximately 15%–20%) and STMicro (approximately 10%–15%). Chinese domestic SiC device enterprises (San'an Optoelectronics Hunan San'an, Starpower, Basic Semiconductor, etc.) collectively at approximately 10%–15% — in rapid ascent.

Technology gap and catch-up difficulty: In SiC device technology, Infineon's CoolSiC™ 2nd generation trench MOSFET (G2) represents the highest level of current mass production products; Chinese enterprises' most advanced products (Hunan San'an 650V/1200V trench type) are at 1st generation trench type level — a gap of approximately 1–1.5 generations.

Price war and cost reduction pathway: 2025 SiC MOSFET device unit prices under multi-directional pressure: substrate price decline (6-inch approximately USD 500, down 38% from 2024), capacity surplus (mainly in 6-inch planar type, not in high-end trench type products), customer negotiation pressure. Infineon 1200V/30mΩ SiC MOSFET market pricing in 2025 approximately USD 4–6 per unit (bulk), down approximately 40%–50% from 2022 peak; domestic comparable products approximately USD 3–5 per unit, still a competitive price space, but reliability trust still needs accumulation.

2.11　GaN Market Global Competitive Landscape

The GaN power semiconductor market in 2025 reached approximately USD 1.8 billion, with high concentration — the top five enterprises (Infineon/GaN Systems, Navitas, Innoscience, Power Integrations, onsemi) collectively accounting for approximately 70%–75%.

Infineon's fast-follower catch-up: Through its 2024 acquisition of GaN Systems (Canadian GaN design company), Infineon quickly filled its gap in GaN power devices. GaN Systems' GS-065-060 series (650V/60A) is the benchmark product in automotive OBC and industrial power, having passed AEC-Q101 automotive-grade certification. Infineon now has a complete GaN product matrix from 40V to 650V.

Navitas Semiconductor's fast-charging dominance: Navitas Semiconductor (NASDAQ: NVTS) is the GaN pioneer in consumer electronics fast charging, with GaNFast™ chips widely used in fast charge adapters for Apple, Samsung, Xiaomi, and others. As the fast-charge market matures, Navitas is expanding to automotive OBC and datacenters.

Innoscience's scale advantage: Innoscience's core competitiveness is its 8-inch GaN-on-Si mass production line — the world's only 8-inch GaN power device manufacturer at scale — with monthly capacity approximately 13,000 wafers (8-inch equivalent). In 2025, the landmark achievement of entering Nvidia's supply chain established Innoscience's brand recognition in the datacenter GaN market for the 2026–2028 explosive growth period.

2.12　Strategic Adjustments of Japan's Power Semiconductor Industry

Japan's power semiconductor industry maintains important positions beyond Mitsubishi Electric and Fuji Electric. Toshiba Electronic Devices (Toshiba SEMU, spun off separately) has a wide product line in low-voltage MOSFET and IGBT discrete devices for consumer electronics, home appliances, and mid-to-low-end industrial applications — facing the most direct competition with domestic Chinese products and experiencing the most obvious impact from China's IGBT localization trend among Japanese manufacturers.

Chapter 3　PEST Policy Environment Analysis

3.1　Political and Policy Dimension

3.1.1　Dual Carbon Goals and New Energy Strategy

China's "peak carbon emissions by 2030, carbon neutrality by 2060" dual carbon targets are the most enduring policy driver for power semiconductor demand. The implementation path of dual carbon targets is essentially converting energy flows driven by fossil fuels into electrical energy-centered energy flows — with increasing industrial output, transportation, and building heating relying on electricity, and every stage of electricity production, transmission, and use requiring power semiconductor conversion and control.

National Energy Administration data indicate that China's new energy vehicle ownership is expected to exceed 40 million units in 2025, with NEV sales penetration continuing to rise; photovoltaic installations targeted to add over 100GW in 2025. Each new EV adds approximately RMB 700–1,200 in power semiconductor demand; each kilowatt of PV system installed consumes approximately RMB 10–15 of power devices in inverters. The large-scale expansion of new energy provides policy-backed rigid demand for power semiconductors.

3.1.2　National IC Industry Investment Fund Phase III (Big Fund III)

In May 2024, the National IC Industry Investment Fund Phase III ("Big Fund III") was formally established with registered capital of RMB 344 billion — surpassing the combined total of Phases I and II (approximately RMB 342.8 billion) — the world's largest dedicated semiconductor industry fund. Big Fund III has invested in power semiconductor IDM leaders Silan Micro and SiEn, as well as power IC design company Sinopower Semiconductor, covering both manufacturing and design ends.

3.1.3　Third-Generation Semiconductor Special Policy

SiC and GaN have been listed in the national key-supported "third-generation semiconductor" catalog. Multiple ministries — MOST, MIIT, NDRC — have issued a series of supporting policies around third-generation semiconductors, including R&D special funds, first-batch application subsidies, and national key laboratory construction.

3.1.4　New Energy Vehicle Industrial Policy

National sustained policy support for the NEV industry — through the "vehicle-to-component pull" mechanism — indirectly creates policy soil for domestic IGBT and SiC device suppliers' import substitution. Major OEMs including BYD, SAIC, FAW, and Dongfeng have established "domestic power device qualified supplier accelerated certification green channels," reducing certification time compared to fully market-based processes by approximately 30%–40%.

3.2　Economic Dimension

3.2.1　NEV Growth Exceeding Expectations

China's NEV sales are expected to exceed 12 million units in 2025, with 800V high-voltage platform models continuously penetrating premium segments. 800V platform large-scale mass production is the most critical economic variable driving SiC MOSFET migration from PV to automotive main drives. Q1 2025 data shows SiC penetration in China's NEV main drive modules reached approximately 18.9%, with 800V vehicle models' SiC penetration approximately 71% — both exceeding beginning-of-year expectations.

3.2.2　Continued High-Growth PV Installations

Global PV new installations in 2025 are expected to surpass 500GW (China approximately 250GW), driving inverter shipments to new historical highs. Domestic inverter SiC penetration is expected to exceed 30% in 2025.

3.2.3　Energy Storage Explosion and PCS Demand

China's new energy storage cumulative installations in 2025 are expected to surpass 100GW. The PCS of each storage system, as an important consumption scenario for high-end IGBT modules, constitutes the largest technical advancement space for domestic substitution.

3.2.4　AI Computing Infrastructure Explosion

The explosion of AI training and inference computing demand drove rapid surges in datacenter power consumption. Innoscience (02577.HK) successfully entered Nvidia's 800V HVDC supply system, with AI datacenter GaN sales growing 50.2% year-on-year.

3.3　Social Dimension

Supply chain security awareness awakened by the pandemic-era chip shortage (2020–2022) has led more customers to proactively introduce second sources, prioritizing domestic suppliers. BYD, Geely, GAC, Li Auto, Xpeng, and Huawei have all explicitly set domestic power semiconductor procurement ratios as supply chain management KPIs.

3.4　Technology Dimension

SiC MOSFET has evolved from 1st-generation planar type to 3rd-generation trench type, reducing on-resistance by over 50%; 8-inch SiC wafer is the key cost-reduction node for the entire SiC supply chain. Tianyue Advanced's 8-inch substrate global market share has reached 51.3%; San'an Optoelectronics Chongqing factory completed line-on in early 2025.

3.5　Geopolitics and Trade Controls

EAR Controls: US EAR controls on semiconductor equipment primarily target sub-14nm advanced process logic chip manufacturing equipment. Power semiconductors primarily use mature processes of 0.18μm–40nm, not in the strictest restriction range — giving Chinese power semiconductor IDM capacity expansion relatively lower political risk.

EU Chips Act: The EU Chips Act aims for European semiconductor capacity to account for 20% of global production by 2030. Infineon and STMicro both have European local expansion plans.

Nexperia Geopolitical Confrontation: In September 2025, the Dutch government invoked the wartime Economic Powers Act to temporarily take over Nexperia Semiconductors (controlled by Wingtech Technology, 600745), citing Chinese management's attempts to transfer core technical IP outside Europe. China's Ministry of Commerce subsequently imposed export control measures on Nexperia's Chinese subsidiaries.

3.6　Comprehensive Policy Impact Assessment

Demand-side policy certainty: Dual carbon targets, NEV support, PV/storage installation targets form the most certain long-term foundation for power semiconductor demand. Supply-side policy accelerator effect: Big Fund III, third-generation semiconductor special projects, and first-batch policies accelerate domestic IDM expansion and wide-bandgap device R&D. Geopolitical dual-directional impact: constraints on overseas expansion strategies but positive push on domestic substitution.

3.7　Detailed Policy Support for Key Technology Roadmaps

"Vehicle-to-Component Pull" Special Program: MIIT listed power semiconductors (IGBT modules, SiC devices) as core components of the "Automotive Chip Strengthening" special breakthrough. Starpower's domestic automotive IGBT module customer count exceeded 30 OEMs by 2025, with over 80% entering the supply chain through "vehicle-to-component pull" channels.

Big Fund III Investment Logic: The RMB 344 billion registered capital focuses on "bottleneck" and "mass production" nodes. In power semiconductors, Big Fund III's investment logic supports IDM enterprises (Silan Micro, SiEn) to expand 8-inch wafer line scale, while focusing on SiC equipment and material localization.

Third-Generation Semiconductor R&D Special Programs: The National Key R&D Program's "third-generation semiconductor materials and devices" special covers full-chain research from SiC/GaN substrate materials through epitaxial processes to device design and reliability evaluation.

Local Government Industrial Support Policies: Provinces and cities of major industrial clusters (Jiangsu, Zhejiang, Shandong, Shanghai, Hunan) have issued special industrial support policies including SiC production line construction subsidies (typically 10%–20% of total equipment investment), priority land security, and bonuses for first entry into NEV Tier1 supply chains.

3.8　Downstream Policy Transmission Effects

Charging Infrastructure Impact on Power Devices: National sustained subsidies for charging infrastructure are expected to drive public charging pile ownership to surpass 4 million units in 2025. Each DC fast charging pile (120kW–360kW) consumes power device value of approximately RMB 1,000–3,000. Charging pile SiC device domestic substitution rate is approximately 20%–30% — with substantial upside.

Industrial Motor Efficiency Improvement: MIIT's "Industrial Energy Efficiency Enhancement Action" targets lifting national industrial motor variable frequency rate from approximately 30% (2020) to approximately 50% by 2025. Each percentage point increase corresponds to approximately RMB 1 billion in additional power semiconductor demand.

3.9　Power Semiconductors in International Cooperation Frameworks

"Belt and Road" New Energy Project Export Opportunities: Chinese-led "Belt and Road" new energy projects use primarily Chinese-branded inverters and energy storage equipment, with the power semiconductors in these devices increasingly localized. As domestic inverter market share expands along the "Belt and Road," domestic IGBT and SiC devices also gain reliability validation opportunities in overseas field operation — important technical endorsement for future European market entry.

RCEP Regional Supply Chain Integration: The Regional Comprehensive Economic Partnership (RCEP) has reduced tariff barriers for Chinese power semiconductor enterprises entering ASEAN markets, while providing more favorable tariff conditions for power semiconductor-related raw material imports.

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Chapter 4　China Market Scale and Operating Landscape

4.1　Total Market Volume

In 2025, China's power semiconductor market size is estimated at approximately RMB 180–190 billion (approximately USD 25 billion), the world's largest single-country demand market at approximately 42% of global total. This figure is approximately 1.6× the 2019 level, with CAGR of approximately 9% — significantly higher than the global average of approximately 6%.

From a recent trend perspective, China's power semiconductor market in 2024 reached approximately RMB 175.2 billion, growing 15.3% year-on-year, outpacing 2023 (which saw slower growth due to inventory digestion). In 2025, with 800V platform accelerating, PV installations exceeding expectations, and energy storage PCS driving three simultaneous tailwinds, market scale continued to expand.

By category: IGBT is the largest segment, estimated at approximately RMB 24.5–25.5 billion in 2025; power MOSFET approximately RMB 35–40 billion; SiC devices approximately RMB 9–10 billion (approximately USD 1.3 billion); GaN devices approximately RMB 7–8 billion; power ICs approximately RMB 40–50 billion; power diodes and other approximately RMB 30–40 billion.

4.2　Demand Structure Analysis

China's power semiconductor demand structure has undergone significant structural changes over the past three years. 2025 estimated demand structure: new energy vehicles (including charging piles) approximately 25%–30% — the fastest-growing demand source; industrial variable frequency/UPS/drives approximately 25% — the largest installed base market; PV/wind (inverters) approximately 15%; energy storage (PCS) approximately 7%–8%; residential/commercial HVAC/home appliances approximately 10%; consumer electronics (fast charging/power adapters) approximately 8%–10%; datacenters (power/UPS/efficient conversion) approximately 3%–5%.

4.3　Localization Rate by Tier

Localization rate requires layered understanding — it cannot be summarized with a single figure.

Low-voltage power MOSFET (< 200V): Approximately 60%–80% domestic. Mid-voltage MOSFET (200V–600V): Approximately 40%–60%. Low-to-mid voltage IGBT (600V–1200V, industrial/home appliances): Approximately 25%–35%. Automotive-grade IGBT modules (car-grade 600V/750V/1200V): The fastest-localized segment — from approximately 31% in 2021 to approximately 65%–70% in 2024–2025. High-voltage IGBT modules (PV/energy storage/industrial large-power): Still low at approximately 15%–25%. SiC MOSFET (devices): Overall domestic rate approximately 35%–40%. SiC substrates: Most successful localization — Tianyue Advanced global conductive SiC substrate share 27.6% global #1. GaN devices: Domestic rate < 10%.

4.4　Trade Structure

China's power semiconductor imports in 2024 were approximately USD 15–18 billion, primarily from Germany (Infineon), Japan (Mitsubishi/Fuji/Rohm/Toshiba), Netherlands (Nexperia), and USA (onsemi). The absolute value of imports continues to grow, but the proportion of China's total power semiconductor consumption is continuously declining, reflecting substantive progress in domestic substitution.

4.5　Industry Profitability Structure

2025 shows an overall "volume growth but thin margins" pattern across China's power semiconductor industry, primarily due to pricing pressure from capacity expansion — particularly in mid-to-low voltage discrete devices and general-purpose IGBT. Starpower's 2025 gross margin approximately 26%, down from approximately 31% in 2023; Silan Micro and SiEn have capacity utilization rates above 90% but product unit prices declining compresses profit space.

4.6　Business Cycle Characteristics

Power semiconductors have markedly different business cycles from consumer semiconductors. Consumer semiconductor inventory digestion typically completes in 2–3 quarters; power semiconductor inventory digestion typically takes 4–6 quarters due to customers primarily being automotive and industrial with longer procurement cycles.

4.7　Unique Characteristics of China's Power Semiconductor Market

First, ultra-high concentration of new energy industries: China has approximately 60%+ of global NEV production volume and approximately 50%+ of global PV module production. Second, strong coupling between automakers and power device manufacturers: BYD is the world's only case of an automaker incubating a power semiconductor enterprise (BYD Semiconductor) and achieving large-scale self-supply. Third, price competition transmission speed above global average: Chinese NEV OEMs transmit cost pressure to supply chains faster and more directly than European and Japanese markets.

4.8　Market Entry Barriers Analysis

Capacity barriers: Power semiconductor IDM mode requires massive wafer production line investment — a 6-inch power semiconductor wafer line costs approximately RMB 1.5–3 billion, an 8-inch line approximately RMB 3–6 billion, and from project approval to mass production typically 3–5 years. Certification barriers: Automotive-grade (AEC-Q101) power device certification process: device-level certification (6–12 months) → system-level validation (12–18 months) → mass production qualification (3–6 months) — total 2–3 years. Process accumulation barriers: Power semiconductor device performance is highly dependent on microscopic process parameter control, requiring hundreds to thousands of batch experimental data.

4.9　Segment Profitability Deep Analysis

Starpower's profitability structure: Revenue growth of 18.34% but net profit decline of 20.18% — three simultaneous pressures: product structure lag (volume growth driven by industrial IGBT modules rather than price growth from automotive premium modules), industry-wide price decline (15%–25% price decline from peak in competitive industrial segments), and dual R&D and production line investment pressure from IDM transformation.

IDM model capital intensity and return cycle: An 8-inch wafer line has a construction period of 3–4 years, total investment approximately RMB 3–6 billion, and normal payback period of 8–12 years. At full production (95%+), gross margin can reach 35%–40%; below 80% utilization, gross margin may fall below 20%.

SiC device cost structure and cost reduction pathway: SiC substrate cost accounts for approximately 40%–50% of total SiC device cost. By cost reduction pathway: substrate-end cost reduction through size upgrade (6-inch → 8-inch, approximately 35% unit cost reduction) and yield improvement; epitaxy-end cost reduction through equipment localization; device manufacturing cost reduction through process optimization. By this cost reduction pathway, SiC device unit prices may narrow from approximately 3–5× IGBT in 2025 to approximately 1.5–2× by 2028.

4.10　Main Enterprise Profitability Comparison (2025)

Enterprise	2025 Revenue (RMB bn)	Gross Margin	Net Margin	Main Driver
Starpower (603290)	4.012	~26%	~10%	Automotive IGBT volume, but pricing pressure
Times Electric (688187)	~28.7	~30%+	~14%	Rail transit high-value business stable
Tianyue Advanced (688234)	1.465	~20%–25%	~-14%	SiC substrate price war, proactive price cuts
Innoscience (02577)	1.213	~7.3%	~-69%	GaN scale effect not yet sufficient
Silan Micro (600460)	~12+ (2025 growth)	~25%–30%	~8%–12%	IDM comprehensive, diversified
SiEn (688396)	~11+ (2025 growth)	~28%–32%	~10%–15%	Central SOE IDM, stable

4.11　Segment Capacity Analysis

For further clarity on the RMB 180–190 billion total scale, a cross-analysis by device type and application segment:

IGBT segment: approximately RMB 24.5–25.5 billion — NEV main drive (including HEV) approximately RMB 90–120 billion, PV/wind approximately RMB 40–55 billion, energy storage PCS approximately RMB 20–35 billion, industrial variable frequency/welding/UPS approximately RMB 50–70 billion, rail transit approximately RMB 20–30 billion, home appliances approximately RMB 15–25 billion.

SiC devices: approximately RMB 90–100 billion — automotive main drive (800V platform) approximately RMB 45–60 billion, PV/storage approximately RMB 25–35 billion, charging piles approximately RMB 8–12 billion.

GaN devices: approximately RMB 70–80 billion — consumer electronics fast charging approximately RMB 40–55 billion, datacenter/server power approximately RMB 10–15 billion, industrial/other approximately RMB 10–15 billion.

Methodology note: Power semiconductor market statistics historically have multiple accounting standards differing by 30%–50%, primarily due to device vs. module accounting differences and China consumption vs. China manufacturing differences. This report uses a combined module + discrete device standard, more closely approximating the actual economic scale of the entire supply chain.

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Chapter 5　Supply Chain Deep Analysis

5.1　Supply Chain Overview

Power semiconductor supply chain's distinctive nature lies in its technical barriers showing a "vertically layered, progressively escalating" structure. Unlike logic chip supply chains, power semiconductor IDM model dominates — design, manufacturing, and packaging are typically vertically integrated by the same company.

5.2　Substrate Segment: Highest Barrier

5.2.1　Silicon Substrates: Silicon-based power device wafers use mature commodity 6-inch and 8-inch silicon substrates.

5.2.2　SiC Substrates: Highest Barrier Node: SiC single crystal substrate preparation is extremely complex — high-purity SiC powder grows into single crystal ingots (boules) through PVT (Physical Vapor Transport) at approximately 2400°C, taking 1–2 weeks per growth cycle; the ingots are then cut, ground, and polished into substrate wafers.

By 2025, the global SiC substrate landscape has fundamentally changed. Tianyue Advanced achieved 27.6% global conductive SiC substrate market share, becoming global #1, with 8-inch substrate market share reaching 51.3%. Tianyue Advanced's Shanghai Lingang factory reached annual capacity of 300,000 conductive substrate wafers by mid-2024.

San'an Optoelectronics' SiC substrates (through Hunan San'an Semiconductor subsidiary) have also developed rapidly: Hunan base 6-inch monthly capacity 16,000 wafers, 8-inch monthly capacity 1,000 wafers; the Chongqing joint venture 8-inch SiC wafer fab with STMicro (planned annual capacity 480,000 8-inch wafers) completed line-on in early 2025 with sample validation begun.

5.2.3　GaN Substrates: GaN devices typically don't require independent GaN substrates — instead, GaN thin films are grown on silicon substrates through epitaxy (GaN-on-Si), significantly reducing manufacturing costs.

5.3　Epitaxy Segment

Epitaxy involves CVD growth of functional thin layers with specific parameters on substrates. SiC epitaxy technical difficulty is high — large-area uniformity (8-inch substrate position-to-position epitaxial thickness and doping concentration variation must be controlled within 5%), high-temperature high-speed growth (CVD furnace temperature approximately 1600°C), and defect propagation control.

5.4　Chip Design Segment

Power semiconductor device structure innovation is the core value of IDM mode. IGBT structure evolution from Planar → Trench → Trench Field Stop (TFS) → Micro Trench FS — each step requires co-development of design and process, difficult to achieve through pure design outsourcing. Starpower's mass production of 7th-generation Micro Trench FS IGBT is the result of years of IDM integrated mode accumulation.

5.5　Wafer Manufacturing Segment

Silicon-based power device manufacturing primarily uses 6-inch and 8-inch wafer lines with process nodes in the 0.35μm–40nm range. Key domestic manufacturing lines: SiEn (688396) 8-inch power chip line in Wuxi; Silan Micro (600460) 8-inch line and 12-inch line introduction in Hangzhou; Times Electric (688187) 6-inch IGBT chip line in Zhuzhou.

SiC MOSFET manufacturing is more complex than silicon-based devices: high-temperature ion implantation (approximately 500–700°C), SiC hardness causing etch rate control difficulties, ohmic contact metallization (Ni-Si alloy annealing approximately 950–1000°C). Domestic SiC device manufacturing capacity is primarily concentrated in San'an Optoelectronics (Hunan San'an) 6-inch/8-inch SiC lines.

5.6　Packaging and Testing Segment

Power semiconductor packaging is a segment where China's enterprises have established competitive advantages. Traditional plastic-encapsulated modules: DBC substrate + aluminum wire bonding + silicone potting — classic structure, cost-effective, proven process. Dual-side cooling (DSC) modules: IGBT chips sandwiched between upper and lower cooling plates, raising power density by 30%–50%. Copper sintering packaging: Copper particle sintering replaces traditional solder, raising junction temperature capability from approximately 150°C to approximately 200°C, increasing thermal cycling lifetime (Nf) from approximately 50,000 to over 200,000 cycles.

5.7　IDM vs. Fabless: Comparison of Two Models

IDM advantages: design-process synergy for faster product iteration speed, higher device performance ceiling, supply chain controllability, process data accumulation forming hard-to-replicate process barriers. Fabless advantages: asset-light, R&D investment concentrated in design end, can quickly adjust product direction following market demand. Long-term outlook: SiC field's endgame is more likely IDM-dominated, converging with silicon-based power device landscape.

5.8　Key Raw Materials and Equipment Supply Chain Security

SiC crystal growth raw materials (high-purity SiC powder): Currently limited domestic commercial supply capability for 6N-grade high-purity SiC powder; domestically pushing ahead with localization. SiC epitaxy growth equipment (CVD reactors): Domestic substitution rate is low; equipment mainly from Swedish Axcelis and Italian LPE systems. High-temperature ion implantation machines for SiC: Domestic substitution rate low; mainly Axcelis and Applied Materials. Packaging materials (DBC/AMB substrates): High-end AMB substrates still have gaps vs. Japanese Kyocera. Specialty gases: High-purity SiH₄, C₃H₈, TMGa, NH₃ for SiC/GaN epitaxy.

Overall assessment: Power semiconductor manufacturing equipment domestic substitution rate for mature processes (oxidation, diffusion, partial lithography) approximately 40%–60%, for critical high-end processes (SiC epitaxy CVD, high-temperature ion implantation, critical measurement) still below 20%.

5.9　Packaging Materials and Thermal Management Innovation Ecosystem

Power semiconductor packaging is the critical interface between "chip" and "system," with thermal management challenges far more prominent than in consumer chips.

Insulating substrate evolution: Al₂O₃ (aluminum oxide) DBC → AlN (aluminum nitride) DBC → Si₃N₄ (silicon nitride) AMB — thermal conductivity improving from approximately 24–27 W/(m·K) to approximately 170–230 W/(m·K) to approximately 60–90 W/(m·K) with better thermal cycling reliability.

Bonding material evolution: Traditional SAC305 (Sn-Ag-Cu solder) → silver sintering (Ag Sintering, raising temperature ceiling from approximately 125°C to 200°C+) → copper sintering (Cu Sintering, 40%–60% lower cost than silver sintering with comparable performance). Domestic Starpower and Times Electric have completed copper sintering mass production process R&D, expected for full mass production around 2026.

Packaging thermal structure evolution: Base plate type (single-side cooling) → Substrate Direct Cooling (SDC) → Dual Side Cooling (DSC). DSC module thermal dissipation capacity is approximately 1.5–2× that of traditional single-side cooling modules.

5.10　Power Semiconductor Reliability Testing Standards

AEC-Q101 core test matrix: High Temperature Operating Life (HTOL, 125°C actual circuit operation for 1000 hours), High Temperature Reverse Bias (HTRB), Temperature Cycling (TC, -55°C to 150°C, 1000+ cycles), Power Cycling (PC, simulating actual operating temperature fluctuations — the most critical IGBT module reliability test, typically requiring 100,000–1,000,000+ cycles).

Hierarchy of standards: AEC-Q101 is device-level certification; system-level validation by automotive OEM or Tier1 follows — environmental adaptability tests (EMC, vibration, shock, salt spray, humidity-heat) and functional safety assessment (ISO 26262). Complete "device certification → system validation → mass production qualification" process typically takes 2–3 years.

Domestic power semiconductor enterprises have made substantial progress in AEC-Q101: Starpower's automotive-grade IGBT modules and San'an Optoelectronics (Hunan San'an) automotive-grade SiC MOSFET have both passed AEC-Q101. However, the gap vs. imported products (Infineon CoolSiC™) in long-lifetime power cycling data under high-temperature high-power-density conditions — Infineon has 8+ years of automotive front-end mass production history vs. approximately 3–4 years for domestic products.

5.11　Domestic Power Semiconductor Specialized Equipment Localization Progress

Lithography (i-line/KrF): Power semiconductors use 248nm KrF and 365nm i-line lithography; Shanghai Micro Electronics (SMEE) has mass-produced 90nm i-line lithography machines, with KrF machines in development. For power semiconductor processes (generally above 0.18μm), domestic i-line lithography machines can meet most process requirements.

Ion implantation: Domestic CXSL mid-to-low energy ion implantation machines are commercially used in power semiconductor lines; high-temperature SiC-specific (approximately 700°C) ion implantation machine localization is still in progress.

Oxidation/diffusion furnaces: Domestic Mattson China (YGRS), NAURA, and others have commercial products with broad adoption in power semiconductor lines.

CVD/PECVD equipment: NAURA (002371) and Piotech (688072) have commercial PECVD/ALD products; SiC-specific high-temperature CVD epitaxy furnaces (approximately 1600°C) localization is still in R&D validation stage.

Overall assessment: Power semiconductor manufacturing equipment domestic substitution rate in mature processes approximately 40%–60%, in critical high-end processes still below 20%. This gap will improve with rapid growth of domestic equipment enterprises over the next 3–5 years, but complete localization (> 80%) requires at least 5–8 years.

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Chapter 6　Deep Analysis of China's Key Enterprises

6.1　Starpower Semiconductor (603290)

Starpower Semiconductor Co., Ltd. (603290), established in 2005 and headquartered in Jiaxing, Zhejiang, is China's IGBT sector domestic leader, with products covering IGBT modules, SiC modules, and power devices.

2025 Financial Performance: Revenue RMB 4.012 billion (+18.34%); net profit attributable to parent RMB 405 million (-20.18%); non-GAAP net profit RMB 377 million (-22.64%); gross margin approximately 26% (declining from approximately 31% in 2023). Q1 2026 net profit declined approximately 74% year-on-year to historic lows. R&D expenses grew 35.94% year-on-year.

Core technology and products: Starpower's IGBT products have evolved to 7th-generation Micro Trench Field Stop (TFS) technology; 750V/1200V automotive-grade IGBT modules (Plus version) continue to ramp in mainstream 800V dual-motor control platforms; launched 8th-generation TFS 1400V IGBT chip platform and 2nd-generation 1400V SiC MOSFET chip platform. In overseas markets, Starpower's automotive IGBT modules supply European top-tier OEMs through domestic and overseas Tier1s.

New market expansion: Starpower's automotive IGBT and SiC MOSFET modules obtained multiple eVTOL (electric vertical take-off and landing aircraft) project qualifications and began batch installation; SiC modules entered commercial passenger electric aircraft supply chains — the first entry into commercial aviation.

6.2　Times Electric (688187)

Zhuzhou CRRC Times Electric Co., Ltd. (688187) is CRRC Group's power semiconductor and rail transit electrical system leader headquartered in Zhuzhou, Hunan.

2025 Financial Performance: Revenue approximately RMB 28.7 billion (+15.23%); net profit attributable to parent approximately RMB 4.1 billion (+10.64%). High-voltage IGBT device revenue exceeded RMB 1 billion in 2025 — the first domestic enterprise to surpass this level in high-voltage IGBT device annual revenue.

IGBT technology accumulation: Times Electric's high-voltage IGBT modules (3300V/4500V/6500V) have served high-speed rail and urban rail applications for over 15 years of reliability validation — the only large-scale mass-producing enterprise in domestic high-voltage IGBT. Times Electric is now extending high-voltage IGBT technology to energy storage PCS and offshore wind power converters.

6.3　BYD Semiconductor

BYD Semiconductor, incubated by BYD Co., Ltd., focuses on automotive-grade IGBT and SiC module design and manufacturing, serving BYD Automotive's self-supply needs and external OEM sales. BYD holds approximately 20% global IGBT module market share; in China's NEV IGBT installed capacity market, BYD Semiconductor's share reached 28.9% (2023 data) at #1.

IPO termination: BYD Semiconductor formally terminated its A-share IPO application in November 2024 after multiple suspensions. Post-IPO termination, BYD Semiconductor maintains primarily internal self-supply mode, continuing expansion from its Shaoxing power device factory (annual capacity 720,000 wafers, completed end-2023).

6.4　Silan Micro (600460)

Silan Micro Electronics Co., Ltd. (600460) is a Hangzhou-based power semiconductor IDM leader with products covering power ICs, IGBT, power MOSFET, and LED driver ICs — one of the few domestic enterprises with complete 8-inch power semiconductor wafer lines. 2024 revenue approximately RMB 11.2 billion (2025 continued growth); automotive electronics business Q1 2025 year-on-year growth over 70%. Big Fund III's participation provides capital support for Silan's production line expansion.

6.5　SiEn (688396)

SiEn Co., Ltd. (688396) is a power semiconductor IDM under central SOE CRC Group, headquartered in Wuxi, with products covering MOSFET, IGBT, power diodes, and power ICs. 8-inch capacity utilization long maintained above 90%. 2024 revenue approximately RMB 10.1 billion (2025 continued growth). Big Fund also invested in SiEn, jointly forming "Big Fund-backed domestic power IDM twin champions" with Silan Micro.

6.6　Wingtech Technology (600745) — Nexperia

Wingtech Technology (600745) completed acquisition of Dutch Nexperia Semiconductors (approximately 76% stake) in 2020. Nexperia products are mainly transistors, diodes, and small-signal MOSFETs.

2025 major event: The Dutch government in September 2025 temporarily took over Nexperia on "national security" grounds, with China's Ministry of Commerce subsequently imposing export control measures on Nexperia's Chinese subsidiaries. Nexperia's approximately 60% revenue comes from automotive customers, causing significant disruption to European automotive supply chains.

6.7　Yangzhou Yangjie Electronic Technology (300373) and Jiangsu JJW Microelectronics (300623)

Both focus on power discrete devices (diodes, MOSFET, thyristors), are large-scale power discrete device export enterprises domestically. Yangjie Technology was in full-production full-sales state in 2025 with automotive electronics business maintaining rapid growth, Q1 year-on-year growth exceeding 70%.

6.8　San'an Optoelectronics (600703) — Full SiC Supply Chain

San'an Optoelectronics Co., Ltd. (600703) started from LED epitaxial chips and through Hunan San'an Semiconductor has built deep SiC full supply chain (substrate + epitaxy + devices) and maintained leadership in GaN power devices.

SiC business progress (2025): Hunan San'an has formed 6-inch capacity 16,000 wafers/month, 8-inch substrate 1,000 wafers/month; Chongqing STMicro joint venture 8-inch SiC fab planned annual capacity 480,000 wafers — completed line-on in early 2025 with sample validation. Hunan San'an H1 2025 sales approximately RMB 532 million; product matrix covers full voltage/current range SiC diodes (650V–2000V) and SiC MOSFET (650V–2000V, 13mΩ–1000mΩ).

6.9　Innoscience (HK: 02577) — GaN Leader

Innoscience (International) Semiconductor Co., Ltd. (HK: 02577) is a global leading GaN power semiconductor enterprise, listed on Hong Kong Stock Exchange main board in December 2024 raising approximately HKD 1.3 billion. Innoscience uses GaN-on-Si technology with 8-inch GaN wafers as its core technical barrier.

2025 Financial Performance: Revenue RMB 1.213 billion (+46.45%); gross margin turned positive at approximately 7.3% (2024 was -19.5%); net loss RMB 841 million (narrowing from 2024's RMB 1.046 billion loss); adjusted EBITDA turned profitable.

Market position and strategic breakthroughs: Global GaN power semiconductor market share approximately 31% (2023 data, global #1); most important strategic breakthrough in 2025 was successfully entering Nvidia's 800V HVDC datacenter supply system — AI/datacenter GaN sales grew 50.2% year-on-year. Monthly capacity approximately 13,000 wafers, cumulative shipments exceeding 500 million units.

6.10　Tianyue Advanced (688234) — SiC Substrate Global #1

Shandong Tianyue Advanced Technology Co., Ltd. (688234): 2025 global conductive SiC substrate market share 27.6% — surpassing post-bankruptcy Wolfspeed to become global #1; 8-inch substrate market share 51.3%, far ahead of global peers; delivered industry's first 12-inch SiC substrate sample in 2024.

2025 Financial Performance: Revenue RMB 1.465 billion (-17.15%) — primarily from active unit price reduction of 6-inch substrates (from approximately USD 800 in 2024 to approximately USD 500 in 2025), aiming to trade profit for volume and consolidate market share; net profit loss RMB 208 million; H1 2025 achieved small profit (approximately RMB 10.88 million).

Strategic significance: Tianyue Advanced's 8-inch SiC substrate market dominance confers a leading cost advantage in the entire SiC supply chain's cost competition — 8-inch vs. 6-inch single-chip cost reduction approximately 35%. Those who first deploy 8-inch have first-mover advantages in the 2026–2028 large-scale cost reduction window. The 12-inch substrate sample delivery establishes its first-mover position in next-generation substrate size competition.

6.11　Novosense (605111) and EaserSemiconductor (688261): Mid-to-High Voltage MOSFET Specialists

Novosense Semiconductor (605111) and EaserSemiconductor (688261) are representative domestic enterprises in mid-to-high voltage power MOSFETs, with products focused on 40V–900V super-junction MOSFET and high-voltage MOSFETs. Both were in full production or near-full production in 2025 with automotive electronics and industrial power applications demand robust.

6.12　HiWave (688711) and Huawei Electronics (600360): Specialized Segment Enterprises

HiWave Technology (688711) focuses on small-to-medium power IGBT discrete devices and modules in mature downstream markets including electric welders, medium-frequency induction heating, and variable-frequency home appliances. Huawei Electronics (600360) is an old-established Northeast power semiconductor IDM.

6.13　Competitive Landscape Comprehensive Comparison

First tier (global segment competitiveness): Starpower (automotive IGBT global top five), Times Electric (high-voltage IGBT domestic sole), Tianyue Advanced (SiC substrate global #1), Innoscience (GaN global leader).

Second tier (China market leadership, with international potential): Silan Micro, SiEn, BYD Semiconductor, San'an Optoelectronics.

Third tier (segment specialists, steady growth): Yangjie Technology, JJW Microelectronics, Novosense, EaserSemiconductor, HiWave, Huawei Electronics, Sinopower Semiconductor, etc.

6.14–6.20　Additional Enterprise Analysis

Sinopower Semiconductor (688508): Power IC design specialist with Big Fund III investment, deeply embedded in white goods supply chain with products entered major household appliance manufacturers.

EaserSemiconductor (688261): Explores high-voltage GaN (eTaN™ platform) — an industrial power and datacenter application commercial breakthrough in progress, but high-voltage GaN reliability certification and mass production yield challenges make progress more difficult than Innoscience.

JJW Microelectronics (300623): Thyristor/SCR, MOSFET, IGBT discrete device export specialist with cost advantages in mid-to-low power discrete devices.

Basic Semiconductor (unlisted): SiC MOSFET Fabless design house in Shenzhen, with car-grade certified products entering charging piles, PV inverters, and some automotive applications.

2025 competitive landscape dynamics: Starpower's overseas pace accelerated (overseas revenue now approximately 20%–25%); Times Electric's energy storage extension proved effective (high-voltage IGBT revenue from energy storage PCS and offshore wind contributing significantly); BYD Semiconductor "internalized" post-IPO termination; Tianyue Advanced's "price-for-volume strategic bet" — cutting 6-inch prices 38% to build customer lock-in effects ahead of 8-inch mass production.

Foreign enterprises in China competitive ecology: Infineon's strategy "defend high end, yield mid-end," strengthening SiC module and system solution positioning; onsemi strengthening local sales and application engineering teams; STMicro's Chongqing factory (with San'an) is the most important case of overseas giants directly deploying SiC capacity in China.

Product migration path comparison: Starpower: industrial IGBT → automotive IGBT → SiC; Times Electric: rail IGBT → energy storage/wind IGBT extension; San'an: LED → SiC/GaN full chain; Tianyue Advanced: insulating SiC substrate → conductive SiC substrate → 8-inch dominance; Innoscience: consumer fast charging GaN → datacenter + automotive OBC GaN.

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Chapter 7　China Power Semiconductor Industrial Cluster Distribution

7.1　Cluster Formation Logic

China's power semiconductor industrial cluster distribution follows "where manufacturing lines are, where supporting industries are." The IDM-dominated power semiconductor must locate in areas with large factory spaces, stable industrial land, sufficient power supply, and equipment support services.

7.2　Jiangsu Wuxi — SiEn and IGBT Manufacturing Hub

Wuxi is one of China's highest-density cities for power semiconductors. SiEn's core 8-inch IDM production line is located in Wuxi — one of the largest domestic power IDMs by scale, with capacity utilization long maintained above 90%. Wuxi also aggregates power semiconductor packaging, testing, materials enterprises, and power electronics device integrators, forming a fairly complete local supply chain.

7.3　Zhejiang Hangzhou — Silan Micro and IDM Innovation Center

Zhejiang Hangzhou is Silan Micro Electronics' home base. Silan Micro has cultivated power semiconductor IDM for over 20 years, building 6-inch and 8-inch wafer lines in Hangzhou and advancing 12-inch line introduction. Zhejiang's power semiconductor cluster extends to Jiaxing — Starpower Semiconductor (603290) is headquartered in Jiaxing.

7.4　Shanghai/Lingang — SiC Substrates and New Energy Power Devices New Heights

Shanghai, especially the Lingang New Area free trade zone, has become an emerging highland for China's SiC semiconductor and advanced power device industry. Tianyue Advanced's Shanghai Lingang base is its core SiC substrate mass production base, reaching annual capacity of 300,000 conductive substrate wafers by mid-2024. Innoscience's 8-inch GaN production line is in Suzhou (part of the Yangtze River Delta cluster).

7.5　Fujian Xiamen/Hunan Changsha — San'an Full SiC Supply Chain Base

San'an Optoelectronics' Xiamen LED compound semiconductor base provides the technological, talent, and manufacturing foundation for SiC and GaN power device expansion. Hunan San'an Semiconductor is one of the largest SiC epitaxy and device mass production bases nationally, with vertically integrated capabilities in SiC substrate growth, epitaxy, and device manufacturing. Hunan San'an H1 2025 revenue approximately RMB 532 million.

7.6　Shenzhen — BYD Semiconductor and Automotive-Grade Power Devices

Shenzhen is BYD Semiconductor's core R&D and operations center. Leveraging BYD Group's vehicle platform, BYD Semiconductor achieved the shortest internal closed loop of R&D → mass production → vehicle validation. Shenzhen also aggregates Basic Semiconductor (SiC MOSFET Fabless), multiple power module packaging enterprises, and large numbers of NEV Tier1 support vendors.

7.7　Shandong Jinan — Tianyue Advanced and SiC Substrate Heights

Tianyue Advanced (688234) is headquartered in Jinan, Shandong, with Jinan as its SiC substrate R&D and initial mass production core. Shandong provincial government provides continued policy and capital support for Tianyue Advanced, listing SiC substrate industry as a key new materials development direction.

7.8　Suzhou/Jiangsu — Innoscience and GaN Mass Production Center

Innoscience is headquartered in Suzhou with its 8-inch GaN-on-Si mass production line in Suzhou — the world's first 8-inch GaN production line achieving large-scale mass production. Innoscience's 2025 breakthrough into Nvidia supply chain has further elevated Suzhou's GaN industry reputation.

7.9　Full Cluster Landscape and Downstream Factory Identification

The Yangtze River Delta (Wuxi-Hangzhou/Jiaxing-Shanghai-Suzhou) is the highest-density manufacturing corridor; South China (Shenzhen-Xiamen) is an important node for automotive power devices and SiC vertical integration; Shandong (Jinan) is the emerging SiC substrate highland; Central China (Hunan Changsha) carries critical SiC device mass production bases.

Behind this industrial map lies a much larger support network — the downstream: Tier1 factories manufacturing NEV electronic control systems, system integrator factories assembling PV inverters, PCS factories producing energy storage converters, electrical equipment factories producing industrial variable frequency drives, and hundreds of component supplier factories surrounding these finished product manufacturers. Tianxiagongchang's industrial database reveals that within the radiation range of the above clusters, the number of producing factories related to power semiconductor upstream and downstream is enormous and extremely dispersed — from inverter manufacturers in East China to automotive electronic parts factories in South China, from energy storage equipment integrators in Central China to industrial variable frequency assemblers in Northwest China, constituting a dense production network difficult to accurately describe from a single data source. This highly dispersed distribution also explains why power semiconductor application factory identification has historically been a difficult point in supply chain data research: the actual consumption locations of devices are embedded in tens of thousands of subsystem factories, not concentrated in a few branded finished product enterprises.

7.10　Cluster Talent and R&D Ecosystem

Universities: UESTC, Xi'an Jiaotong University (wide bandgap semiconductors), Zhejiang University (power electronics), Tsinghua University, Nanjing University — each cultivating large numbers of power semiconductor and power electronics talents in their radiation zones. "Talent follows capacity": IDM manufacturing talent (process engineers, equipment engineers, test engineers) is highly attached to production lines — wherever lines are built, these talents aggregate. Industry-university-research collaboration: Tianyue Advanced's cooperation with Shandong University, San'an Optoelectronics' SiC epitaxy technical joint development with universities, Innoscience's GaN materials cooperation with Nanjing University are typical cases.

7.11　Localization Dynamics from Cluster Perspective

Fastest-replacing clusters: Shenzhen (automotive IGBT/SiC, BYD Semiconductor radiation) and Hangzhou/Jiaxing (IGBT modules, Starpower and Silan Micro) are the fastest regions for automotive power semiconductor localization — not only are products locally manufactured, but downstream applications (automotive electronic control Tier1) are also highly clustered, forming a local closed-loop validation ecosystem.

Highest-potential emerging clusters: Suzhou (Innoscience GaN) and Shanghai/Lingang (Tianyue Advanced SiC substrates) — these two segments' localization rate is still low, but leading enterprises have already formed clear technology-capacity-customer three-dimensional layouts; localization acceleration is only a matter of time.

7.12　Systemic Value of the Cluster Ecosystem

From a global perspective, China's power semiconductor cluster ecosystem has a unique systemic value — expressed not just in any single enterprise's scale or technology, but in the density, coordination efficiency, and self-improvement capability of the entire industrial network.

Taking the Yangtze River Delta (Wuxi-Hangzhou/Jiaxing-Shanghai-Suzhou) corridor as an example: power IDM manufacturing (SiEn 8-inch, Silan Micro 8-inch, Starpower module packaging), SiC substrate mass production (Tianyue Advanced Lingang), GaN devices (Innoscience Suzhou), power module supporting materials (DBC substrates, thermal grease, insulating solder), packaging equipment suppliers, test solution providers, and hundreds of power semiconductor application factories (inverter factories, variable frequency drive factories, power equipment factories) are all concentrated here. This density means a new entering power semiconductor startup can find all support suppliers within 100km in the Yangtze River Delta; an IGBT module factory in Jiaxing developing a new automotive module can find DBC substrate suppliers, bonding wire suppliers, and encapsulant suppliers within a few kilometers, plus process consulting from IDM engineers (Silan Micro or SiEn alumni) within tens of kilometers.

7.13　Coopetition Relationships Among Cluster Enterprises

Power semiconductor cluster enterprises don't have simple competitive relationships — they form complex coopetition (coopetition) ecologies: San'an Optoelectronics (Hunan San'an) supplies SiC epitaxial wafers to multiple domestic SiC module factories (including some competitors) — simultaneously competitor and supplier; Starpower, before completing its own wafer line, outsourced some IGBT chips to SiEn and others — a cooperative relationship existed. Same inverter enterprises (e.g., Sungrow, Huawei Digital Power) typically procure both Starpower and Infineon IGBT modules as dual sources — directly comparing products in actual customer environments, accelerating domestic product quality iteration.

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Chapter 8　Segment Market Special Research

8.1　NEV Main Drive: Frontline of IGBT vs. SiC Competition

Value scale: Each NEV main drive inverter consumes power semiconductors (IGBT or SiC modules) worth approximately RMB 700–1,200 — the largest single module in per-vehicle power semiconductor value. 2025 China NEV sales expected to exceed 12 million units, corresponding to IGBT/SiC main drive module market of approximately RMB 9–15 billion.

400V vs 800V platform device differentiation: 400V standard voltage platform uses IGBT as standard inverter configuration; 800V high-voltage platform fully exploits SiC advantages: over 50% lower switching losses vs. IGBT at 800V operating voltage, 6–10 percentage point system efficiency improvement, switching frequency can be raised to 40kHz+, reducing filter volume and system weight.

Penetration progress: January 2025 data: SiC MOSFET penetration in China's new energy passenger vehicle main drive modules reached approximately 18.9%; in 800V vehicles, SiC penetration approximately 71%. Full-year overall penetration expected approximately 20% — doubling from approximately 10% at end-2023.

Domestic substitution progress: Starpower, Times Electric, and BYD Semiconductor combined domestic share in automotive IGBT approximately 65%–70%, achieving domestic leadership; in automotive SiC MOSFET, San'an (Hunan San'an) and Starpower have mass-produced automotive-grade products but overall market share still dominated by Infineon and onsemi — domestic share estimated 15%–25%, in rapid growth phase.

8.2　PV Inverters: Largest Stock Market for IGBT

Market scale: 2025 global PV new installations expected to exceed 500GW; each kW of PV inverter consumes approximately RMB 10–15 of power devices — global PV inverter power device market approximately USD 5–7.5 billion. Global PV inverter market overall approximately RMB 140 billion (2025 forecast).

Device selection trends: Small-to-medium power (< 30kW) string inverters migrating from IGBT to SiC; large-scale (> 100kW) central inverters remain IGBT-dominated for 1500V+ high-voltage, with SiC penetration still low.

Domestic inverter dominance creating domestic device opportunities: Chinese inverter enterprises (Huawei Digital Power, Sungrow, Goodwe, Ginlong, etc.) account for approximately 70%–80% of global inverter shipments, driving Starpower, Silan Micro, and others' domestic device volume. The "Chinese-made inverters + Chinese power devices" combination is the core transmission pathway for PV installations to indirectly drive domestic power semiconductor exports.

8.3　Energy Storage PCS: Highest-End IGBT Battleground

Market scale: 2025 China new energy storage cumulative installations expected to surpass 100GW; corresponding PCS power device market approximately RMB 3–5 billion. Global energy storage PCS power device market approximately USD 10–15 billion.

Domestic substitution rate: High-end IGBT modules for energy storage PCS (especially 1200V/1700V large-power segment) — approximately 80% still dependent on Infineon and Mitsubishi Electric, domestic rate below 20%. Times Electric, with 15+ years of reliability validation history from rail transit high-voltage IGBT, is the most competitive domestic enterprise in energy storage PCS IGBT.

8.4　Industrial Variable Frequency Drives: Largest Stock Market

Market characteristics: Industrial variable frequency drive procurement update cycle long (typically 5–10 years), customers highly price-sensitive. Domestic IGBT penetration in industrial variable frequency drives approximately 30%–40% — the most suitable segment for "volume-first" domestic substitution strategy.

Policy driver: National "Energy Efficiency Enhancement Action" mandatory requirements on industrial motor variable frequency rate will bring large-scale industrial variable frequency drive new and replacement demand in 2025–2030.

8.5　Home Appliances: Variable-Frequency Penetration Driving Low-Power Demand

Variable-speed compressor electric motor drives need 600V/10–30A IGBT or IPM modules — domestic Silan Micro and SiEn have achieved high domestic substitution rates in this segment. 2025 China air conditioner variable frequency penetration approximately 90%.

8.6　Datacenters: GaN's Strategic New Heights

With AI model training and inference demand exploding, server rack power density rapidly rising from traditional 10–15kW to 30–50kW+. Innoscience's 2025 breakthrough into Nvidia supply chain marks the first commercial validation of domestic GaN devices in the world's highest-demand-intensity AI datacenter application scenario. Datacenter GaN device market approximately RMB 5–10 billion (China) in 2025, growth exceeding 50%.

8.7　Rail Transit: High-Voltage IGBT's Solid Fortress

Rail transit IGBT module reliability requirements are highest — HSR design life 30+ years, no power unit failures allowed during operation. Times Electric is the only major domestic rail transit high-voltage IGBT supplier, with 3300V/6500V modules having undergone 15+ years of actual operation validation.

8.8　Industrial Robots and New Drive Scenarios

The explosion of humanoid robots and collaborative robots creates a new incremental market for power semiconductors. Humanoid robot joint drives require high power density and high dynamic response power devices — precisely SiC MOSFET and GaN HEMT's strengths. Innoscience has explicitly listed robot joint drives as a strategic new application direction for GaN devices.

8.9　Segment Market Power Device Demand Summary

Segment	2025 China Market Size (est.)	Dominant Devices	Domestic Rate	Growth (2024-2025)
NEV main drive	~RMB 9–15bn	IGBT/SiC MOSFET	~65%–70% (IGBT), 15%–25% (SiC)	~20%–30%
PV inverters	~RMB 2.5–3.5bn	IGBT/SiC	~40%–60%	~20%–25%
Energy storage PCS	~RMB 3–5bn	High-end IGBT modules	~20%	~40%–50%
Industrial VFD/drives	~RMB 35–45bn	IGBT/Power MOSFET	~30%–40%	~5%–8%
Residential/commercial AC	~RMB 15–20bn	Power IC/IPM/IGBT	~40%–60%	~3%–5%
Rail transit	~RMB 5–8bn	High-voltage IGBT modules	~60%–70%	~5%–8%
Datacenter/AI	~RMB 3–5bn	GaN/Power MOSFET	~10%–15%	~50%–60%
Consumer fast charging	~RMB 10–15bn	GaN/Power MOSFET	~15%–25%	~10%–15%

8.10　HVDC: The Special Battlefield for Ultra-High Power

HVDC (High Voltage Direct Current) converter stations' core devices are high-voltage thyristors (typically above 6500V/5000A press-pack thyristors) or IGBT submodules for MMC (Modular Multilevel Converter). China's West-East power transmission and cross-regional interconnection plans make China the world's largest HVDC project market. Times Electric is the only domestic enterprise with mass production capability in high-voltage thyristors.

8.11　Medical Electronics: Niche Market for High-Reliability Power Devices

Medical equipment (X-ray machine high-voltage generators, MRI gradient amplifiers, ultrasound imaging systems, radiotherapy linear accelerators) has special requirements for power devices: high reliability, high insulating voltage, low noise. This segment is small globally (approximately USD 1–1.5 billion) but with high technical barriers, strong customer stickiness, and healthy profits. Domestic power semiconductor enterprises have relatively weak positioning in medical applications.

8.12　Consumer Electronics Fast Charging: Scale Foundation for GaN Localization

Fast charging above 100W has largely shifted to GaN. Globally, annual consumer electronics fast charging adapter shipments exceed 2 billion units — an important platform for GaN to achieve mass production and cost reduction. Innoscience's cumulative shipment of over 500 million units has a significant proportion from this segment.

From a broader macro perspective, China's power semiconductor relationship with global energy transition has already surpassed simple "import substitution" logic — China is the world's largest "energy transition manufacturing country." Every Chinese energy transition equipment export carries Chinese power semiconductor value: PV inverters (Huawei/Sungrow) exported to the Middle East contain increasingly domestic IGBTs and SiC devices from Starpower and Silan Micro; energy storage systems (CATL/BYD) exported to Europe/US are accelerating their PCS high-end IGBT module switch to domestic Times Electric brands. This "full supply chain going global" pattern makes China's power semiconductor globalization not just individual enterprise export behavior, but deep-embedded positioning as part of a larger system in the global market — an irreversible globalization pathway deeper than simply exporting devices.

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Chapter 9　Technology Evolution Roadmap

9.1　IGBT Technology Generational Evolution

IGBT has undergone approximately seven generations of technology evolution since its 1982 invention by B.J. Baliga at GE Research Center.

Generations 1–3 (1980s–early 1990s): Punch-Through (PT) to Non-Punch-Through (NPT) structure, drift layer introduction, wafer manufacturing from thick to thin.

Generations 4–5 (late 1990s–2000s): Introduction of Trench Gate IGBT was the 4th generation landmark breakthrough. Trench type vs. planar type significantly improves channel density, reducing on-resistance by 40%–60%; Field Stop (FS) layer introduction further compresses base region thickness, greatly reducing switching losses. Infineon TRENCHSTOP™ series and Fuji Electric V-series established leadership in this generation.

6th generation (2010s): Micro Trench and CSTBT (Carrier Stored Trench-Gate Bipolar Transistor) engineering innovations further increased trench density per cm², operating junction temperature raised to 175°C.

7th generation (2020s): Starpower's self-developed 7th-generation Micro Trench Field Stop (TFS) IGBT is the highest generational level in domestic IGBT technology — 750V/1200V in batch mass production on mainstream 800V dual-motor control platforms; Infineon T7 and onsemi M3S represent international mainstream level.

8th generation and beyond: Starpower has launched 1400V 8th-generation TFS chip platform targeting large-scale PV applications. Long-term: IGBT generational evolution is approaching silicon material physical limits; large-power segments above 1700V/200A will progressively be taken over by SiC.

9.2　SiC MOSFET Technology Roadmap

9.2.1　Planar vs. Trench Type: SiC MOSFET has undergone generational transition from Planar to Trench Gate. Planar-type channel extends laterally on the surface, limited by SiC/SiO₂ interface state density; trench-type embeds gate electrode in a trench, forming a channel on the side wall, avoiding the lowest-quality SiC/SiO₂ interface. On-resistance can be reduced by 50%–70%, chip area shrinks, cost reduces.

Current mainstream international SiC MOSFET (Infineon CoolSiC™, onsemi EliteSiC™ M3S, Rohm 4th generation) have all migrated to trench type; domestically, Hunan San'an has mass-produced trench SiC MOSFET products; Starpower's 2nd generation 1400V SiC MOSFET also uses advanced trench structure.

9.2.2　Automotive-grade reliability certification: Core threshold for SiC MOSFET to enter automotive front-end is passing AEC-Q101. By 2025, domestic Hunan San'an's automotive-grade SiC MOSFET has passed mainstream Tier1 system validation and is in mass production on vehicles.

9.2.3　Voltage coverage: Current SiC MOSFET mass production voltage levels primarily 650V and 1200V; 1700V+ devices are in productization advancement.

9.3　8-inch SiC Wafers: Key Node in Cost Reduction Pathway

Upgrading from 6-inch (150mm) to 8-inch (200mm) SiC wafers is the most critical technology-economic transition node for the entire SiC industry in 2025–2028.

Cost reduction logic: 8-inch substrate area approximately 1.78× that of 6-inch; in the same process flow, each 8-inch wafer produces approximately 1.78× the chips; combined with linear wafer-level process cost vs. area relationship, 8-inch vs. 6-inch single-chip manufacturing cost reduction approximately 35%.

Global progress: 2025 — Tianyue Advanced 8-inch SiC substrates achieved mass production with global market share leading (51.3%); Infineon Villach factory planned 8-inch SiC device mass production; onsemi in 8-inch SiC device line commissioning; STMicro Chongqing factory planned 8-inch. Timeline: large-scale 8-inch SiC device mass production will complete between 2026–2028.

12-inch forward-looking layout: Tianyue Advanced completed industry's first 12-inch SiC substrate sample delivery in 2024. 12-inch SiC device commercialization will need to wait until 2028–2030, but first-to-breakthrough enterprises will have first-mover advantage in the next substrate size competition.

9.4　GaN Power Devices: Crossing from Consumer to Industrial

Process platform evolution: From 4-inch GaN-on-SiC (high-frequency microwave, high cost) → 6-inch GaN-on-Si (power electronics, cost reduction) → 8-inch GaN-on-Si (Innoscience exclusively mass-producing, further cost reduction). Innoscience's 8-inch GaN-on-Si line has monthly capacity approximately 13,000 wafers (8-inch equivalent) — a cost advantage of approximately 30%–40% over 6-inch competitors.

Automotive-grade GaN challenges: GaN reliability barriers for automotive applications (OBC, DC-DC) are higher than SiC — gate reliability (Gate Oxide Integrity) and High Temperature Reverse Bias (HTRB) test pass rates are core productization difficulties. Infineon (after GaN Systems acquisition) has achieved automotive-grade certification; domestic Innoscience is pushing automotive-grade certification.

9.5　Power Module Packaging Technology Evolution

Copper sintering technology: Copper sintering (Cu Sintering) with high-purity copper particles sintered at approximately 250–300°C low temperature forms a dense metal layer replacing traditional Sn-Pb solder, raising bonding layer temperature capability from approximately 150°C to approximately 200°C, thermal cycling lifetime (Nf) from approximately 50,000 to over 200,000 cycles.

Dual-side cooling (DSC) modules: Traditional IGBT modules only bottom-cooled with power density approximately 25–40kW/dm²; dual-side cooling power density can reach 60–80kW/dm².

Integrated power module trends: Next-generation power modules evolving toward "Power Stage" (integrating main switch devices, freewheeling diodes, driver ICs, current sensors, temperature sensors in one package), simplifying vehicle electronic control system design.

9.6　Manufacturing Technology Bottlenecks and Domestic Breakthroughs

• SiC epitaxy uniformity: 8-inch SiC epitaxy large-area uniformity (thickness deviation < 5%) remains core yield bottleneck.
• SiC device trench gate precision control: SiC MOSFET gate oxide reliability is one of the core reliability gap sources between domestic and international products.
• Automotive module copper sintering process yield: Copper sintering process has extremely high requirements for temperature uniformity and particle dispersion.
• High-purity SiC powder localization: SiC crystal growth high-purity powder (purity > 99.9999%) still highly dependent on imports.

9.7　Intelligent Power Modules and System Integration Trends

IPM (Intelligent Power Module) integrates IGBT or SiC chips with driver IC, current sensing, over-temperature/over-current protection logic in the same module. In automotive main drive applications, the "Power Stage Module" concept integrates six IGBT/SiC chips (three-phase inverter bridge), driver chip, current sensor, connector, and heat sink base plate into a standardized unit.

System integration's deeper meaning: transferring "system performance optimization" control from Tier1 to device suppliers — when device suppliers can directly offer vehicle manufacturers a system-level optimized power module, their supply chain pricing power and binding depth both significantly increase.

9.8　Digitalization and AI Impact on Power Semiconductors

Device design assistance: ML-based TCAD simulation can significantly accelerate IGBT/SiC MOSFET new device structure parameter optimization. Advanced Process Control (APC): ML models for real-time prediction and adjustment of process parameters improve batch-to-batch consistency and yield. Reliability prediction and health monitoring: AI-driven module-level health monitoring and lifetime prediction allows early warning before module failure.

9.9　Technology Roadmap Summary: 2025–2030 Key Milestones

• 2025–2026: 8-inch SiC substrates achieve mass production scale (Tianyue Advanced > 300,000 wafers/year); 7th-generation micro-trench IGBT fully mass-produced on 800V dual-motor platforms; copper sintering packaging becomes mainstream choice for automotive IGBT modules.
• 2026–2027: 8-inch SiC MOSFET devices mass production (Infineon, onsemi); device unit prices down approximately 30% vs. 2025; GaN automotive-grade certification achieves substantial breakthrough.
• 2027–2028: SiC penetration (all platforms) in NEV main drive modules exceeds 35%; domestic SiC MOSFET automotive-grade share exceeds 30%; IPM becomes mainstream procurement form for NEV Tier1s.
• 2029–2030: 12-inch SiC substrate engineering sample validation (Tianyue Advanced, etc.); SiC penetration of 400V platforms accelerates; GaN datacenter power device market exceeds RMB 10 billion (global).

9.10　Key Device Parameter Cross-Comparison Table

IGBT vs. SiC MOSFET key parameters comparison (1200V, typical mass production specifications)

Parameter	7th-gen IGBT (Starpower/Infineon mass production level)	SiC MOSFET 1st-gen trench type (Hunan San'an mass production)	SiC MOSFET 2nd-gen trench type (Infineon CoolSiC G2)
Rated voltage	1200V	1200V	1200V
Typical on-state voltage/resistance	VCE(sat) ~1.7–2.0V (25°C)	Rds(on) ~80–100mΩ/cm²	Rds(on) ~50–65mΩ/cm²
Max junction temp Tj(max)	175°C	175°C	200°C
Turn-off losses Eoff (reference)	~3–5mJ (at rated current)	~0.5–1.5mJ	~0.3–0.8mJ
Typical switching frequency (vehicle inverter)	4–16kHz	20–60kHz	40–100kHz
Automotive certification status (2025)	AEC-Q101 in mass production	AEC-Q101 in certification/some models certified	AEC-Q101 in mass production
Primary applications	400V automotive main drive/PV/energy storage	800V automotive main drive (initial phase)	800V automotive main drive (mainstream)

SiC vs. IGBT core advantages visible in the table: turn-off losses only approximately 1/5–1/3 of IGBT, enabling 6–10 percentage point system efficiency improvement; higher max junction temperature (200°C vs. 175°C); can operate at higher switching frequency, reducing filter (inductor, capacitor) volume by 30%–60%.

IGBT's main advantages: cost (approximately 1/3–1/5 of equivalent SiC), on-state characteristics at high current, 20+ years of reliability validation history. SiC will replace IGBT, but not overnight — proceeding along "800V flagship vehicles → 800V mainstream vehicles → 400V premium vehicles → 400V mainstream vehicles" in a 5–8 year timeframe.

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Chapter 10　Major Risks and Challenges

10.1　Wolfspeed Bankruptcy-Induced Global SiC Supply Chain Restructuring Risk

Wolfspeed's post-restructuring capital expenditure has dramatically contracted — the originally planned Mohawk Valley 8-inch SiC device factory expansion is on hold. In the short term: automotive OEMs and Tier1s qualifying Wolfspeed products must re-evaluate SiC device stockpiling strategies; long term: global SiC substrate new supply reduction creates a window for Chinese substrate enterprises to rapidly expand share, while also potentially causing temporary SiC substrate and device supply-demand tightening in 2026–2027. Wolfspeed's post-bankruptcy technical asset disposal (including patent portfolios) still has uncertainty.

10.2　NEV Sales Growth Slowdown Demand Transmission to Main Drive IGBT/SiC

2025 NEV sales growth rate narrowing from 50%–80% to approximately 20%–30%. Direct impact: Main drive module absolute volume growth rate slows; customers accumulated relatively abundant IGBT/SiC module inventories over the past two years, continuing to suppress new procurement volume in 2025. Indirect impact: Automotive OEM cost pressure transmitted to power semiconductor suppliers. Leading OEM's supply chain price pressure resulted in IGBT module unit price decline of 20%–30% from 2021 peaks in some competitive segments.

10.3　Capacity Expansion Causing Phased Oversupply

New capacity launched in 2024–2025 from 2021–2023 investment decisions has released concentrated into a slowing demand growth environment, causing phased oversupply — particularly pronounced in low-to-mid voltage MOSFET and general-purpose IGBT discrete device segments. Structural contradiction: low-end products seriously oversupplied, while automotive-grade IGBT modules (especially 1200V+ large-power segment) and automotive-grade SiC still have slightly tight supply-demand signals.

10.4　SiC Substrate Price War and Profitability Erosion

6-inch SiC substrate prices fell from approximately USD 800 in 2024 to approximately USD 500 in 2025 (decline of approximately 38%). Tianyue Advanced's 2025 revenue fell 17.15%, net profit turned to loss. Price war will continue to pressure substrate-end profitability until 8-inch mass production achieves full scale in 2026–2027.

10.5　Trade and Geopolitical Risks

EAR control potential escalation: US EAR controls have limited current impact on mature process power devices, but if SiC high-end equipment (SiC epitaxy CVD furnaces, ion implantation machines, etc.) is explicitly listed in restriction lists, it will impede domestic SiC capacity expansion pace. Nexperia spillover effects: The Dutch government's takeover precedent may raise regulatory obstacles for other Chinese acquisitions of European semiconductor assets. Exchange rate risk: Key raw materials and some equipment priced in USD creates some cost exposure to RMB exchange rate fluctuations.

10.6　High-End Technology Gap and Certification Cycle

• Automotive SiC MOSFET system reliability: Domestic products still have gaps vs. Infineon CoolSiC™ and onsemi EliteSiC™ in high-temperature large-power long-lifetime validation data depth.
• High-voltage large-power IGBT modules (3300V/6500V): Only Times Electric can achieve large-scale domestic mass production; others have no mass production capability.
• Automotive-grade GaN certification: Domestic enterprise automotive-grade GaN product certification still in progress — approximately 1–2 years behind Infineon's schedule.
• SiC specialized manufacturing equipment: Domestic SiC epitaxy CVD furnaces and SiC-specific ion implantation machines have low domestic substitution rates.

10.7　Price War's Long-Term Profitability Erosion

Low-end power semiconductor price war has continued for over two years. Profitability erosion suppresses R&D investment, which prevents product competitiveness from advancing to high-end — forming a low-end vicious cycle. Starpower's R&D expenses growing 35.94% year-on-year against a 20% net profit decline is an active choice to counter this risk.

10.8　Localization "Stagnation Zones": Certain Segments' Slow Progress

High-power PV IGBT modules (1500V+, above 600A current capability) still primarily Infineon and Mitsubishi imports, domestic substitution rate below 20%; precision servo drives for industrial robots with domestic rate approximately 10%–15%; high-end power driver ICs still approximately 50%–60% import-dependent. Root cause: "trust barrier" — validation period 2–5 years, single failure cost extremely high — these factors can only be overcome through time, not through technology or capital alone.

10.9　Capital Structure and Financing Environment Risk

2024–2025 domestic capital market risk preference for semiconductor significantly reduced. Primary market semiconductor financing volume significantly contracted from the 2021–2022 peak, with some power semiconductor startups facing financing difficulties impacting product development and certification progress.

10.10　Comprehensive Risk Assessment

High urgency + high importance: NEV price war transmitting to IGBT/SiC (continued gross margin pressure); SiC substrate price war profitability erosion (Tianyue Advanced already losing money in 2025).

Medium urgency + high importance: Trade controls escalation risk (SiC equipment potential restrictions); Wolfspeed technical asset disposal uncertainty (patent licensing).

Low urgency + high importance: High-end IGBT/SiC reliability accumulation gap (time problem, will naturally resolve as operating data accumulates); GaN automotive-grade certification delay (technical accumulation).

From this analysis, China's power semiconductor currently faces risks that are more "growing pains" (price war, yield ramp-up, reliability accumulation) rather than "existential threats" (technology cutoff, market closure) — providing an important basis for maintaining strategic composure during the cyclical trough.

10.11　Business Cycle Management Challenges

When market demand unexpectedly rises, enterprises simultaneously launch expansion plans; but as line construction periods span 3–4 years, this capacity typically releases after demand has receded — classic "decide in good times, land in bad times" supply misalignment. The 2021–2023 expansion decisions whose capacity released concentrated into 2024–2025's growth slowdown is a universal strategic mistake at the industry level, not any individual enterprise's unique problem. For enterprises, cycle management's core challenge: how to avoid over-expansion during boom periods while maintaining sufficient R&D investment during downturns, preparing for technology iteration in the next cycle.

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Chapter 11　2026–2030 Outlook and Forecast

11.1　Market Scale Forecast

Global market: CAGR approximately 7%–9%, from approximately USD 60 billion in 2025 to approximately USD 85–95 billion by 2030. SiC market CAGR approximately 25%–30%, from approximately USD 4.3 billion to approximately USD 13–17 billion; GaN device CAGR approximately 30%–35%, from approximately USD 1.8 billion to approximately USD 7–10 billion. Traditional silicon-based IGBT and power MOSFET moderate growth at approximately 3%–5% CAGR.

China market: 2025 approximately RMB 180–190 billion, to approximately RMB 240–280 billion by 2030, CAGR approximately 5%–8%. High-end segments (SiC devices, automotive IGBT modules, high-voltage industrial IGBT) growth approximately 15%–25%.

11.2　SiC 800V Penetration Pathway

• 2025–2026: 800V platform vehicles rapidly ramp; SiC main drive penetration rising from 18.9% to 25%–30%.
• 2027–2028: 8-inch SiC devices mass production; single chip costs down approximately 30%–40% vs. 2025; SiC economic boundary for 400V platform penetration gradually opening; overall penetration (including 400V and 800V platforms) expected to reach approximately 35%–40% by end-2027.
• 2029–2030: SiC penetration in all NEV passenger car main drives with system voltage above 600V expected to exceed 50%; cost gap with IGBT narrowing to approximately 30%–50% (currently approximately 3–5×).

11.3　Localization Rate Improvement Pathway

Segment	2025 Domestic Rate	2030 Forecast Domestic Rate	Core Driver
Automotive IGBT modules	~65%–70%	~80%–85%	Starpower/Times/BYD Semi continue to ramp; foreign makers retreat from mid-range
Industrial IGBT (600V–1200V)	~25%–35%	~45%–55%	Silan Micro/SiEn/HiWave scale effects
SiC devices (automotive+PV)	~35%–40%	~50%–60%	San'an 8-inch in production; Starpower SiC qualifications volume
SiC substrates	~35%–45%	~55%–65%	Tianyue Advanced 8-inch dominance; Tankeblue mass production
GaN power devices	< 10%	~20%–30%	Innoscience 8-inch capacity ramp; automotive certification breakthrough
High-voltage IGBT (≥1700V)	< 15%	~25%–35%	Times Electric extending to energy storage/wind
Power ICs (driver/switching power)	~40%–50%	~55%–65%	Sinopower/Silan/SiEn continued expansion

11.4　Post-Wolfspeed Global Landscape Evolution

Wolfspeed post-restructuring operates in "asset-light, contracted expansion" mode. Global SiC substrate market will further concentrate toward Tianyue Advanced, Tankeblue (China) and SiCrystal/Rohm (Germany/Japan). Chinese SiC substrate enterprises' global share expected to exceed 50% (conductive type) before 2028. US SiC industry faces structural challenges — Wolfspeed as America's only large-scale SiC substrate manufacturer's capacity contraction threatens US domestic SiC supply chain independence.

11.5　GaN Market Explosion Cycle

GaN power semiconductors in 2026–2030 will undergo an explosion cycle similar to SiC in 2021–2025, driven by: server/datacenters (AI infrastructure continuous expansion, GaN is optimal for server PSU and 48V PoL step-down); automotive OBC (power density requirements highly compatible with GaN high-frequency small size — 2026–2028 automotive OBC GaN qualification peak); industrial high-efficiency power supplies (CNC servo drives, industrial robot joint drives).

11.6　Investment Logic and Key Observation Indicators

Alpha opportunities: Automotive SiC device localization rate exceeding expectations (key indicator: Starpower/San'an SiC installed share in NEV main drives); GaN automotive certification breakthrough (key indicator: Innoscience domestic OEM automotive certification project count); 8-inch SiC yield exceeding expectations (key indicator: Tianyue Advanced 8-inch shipment proportion and ASP trend).

Beta opportunities: Continued new energy industry expansion dividends — PV annual installations exceeding 200GW long-term base, energy storage installation 30%+ annual compound growth, NEV ownership reaching 100 million units.

Key risk indicators: Quarterly trend of automotive IGBT/SiC module unit prices; annual SiC substrate average price trend; post-restructuring Wolfspeed strategic movements; US semiconductor export control list update frequency.

11.7　Long-Term Convergence of Industry Structure

By 2030, China's power semiconductor landscape is expected to converge into a clearer three-tier structure:

Tier 1 (global competitiveness): Starpower (automotive IGBT global top five), Times Electric (high-voltage IGBT global top three), Tianyue Advanced (SiC substrates global #1), Innoscience (GaN power globally leading).

Tier 2 (China market dominant): Silan Micro, SiEn, and other IDM leaders, with scale and cost advantages forming moats in low-to-mid voltage power ICs and MOSFETs.

Tier 3 (segment specialists): Dozens of small-to-medium enterprises occupying stable but limited-scale shares in specific segments.

11.8　Overseas Market Opportunities: Go-Global Pathway and Challenges

Starpower's European pathway: Starpower's automotive IGBT modules supply European and Indian, North American OEMs through domestic/overseas Tier1 — "using Tier1 as a ship to go global" is the most realistic pathway for domestic IGBT modules to reach global markets. Tianyue Advanced's substrate globalization: SiC substrates are highly standardized bulk materials — Tianyue's global sales already face Infineon, STMicro, onsemi — the closest scenario to "purely market-based global competition" among Chinese semiconductor enterprises. Innoscience's technology export: Entering Nvidia's supply chain is a milestone for Chinese GaN device enterprises achieving technology export.

Go-global constraints: Some European defense/aerospace customers explicitly exclude Chinese suppliers; some European automotive OEMs maintain cautious purchasing attitudes toward "Chinese chips." For these restricted markets, Chinese enterprises' entry will be slower than technology catch-up, requiring longer-term trust building.

11.9　Industry Concentration Forecast: Consolidation Will Accelerate

By 2030, China power semiconductor industry CR3 (by revenue, IGBT segment) expected to rise from approximately 35%–40% in 2025 to approximately 50%–55%, with Starpower, Times Electric, and a third player (BYD Semiconductor or Silan Micro) forming a relatively stable three-way structure; SiC substrate segment CR2 (Tianyue Advanced + Tankeblue) to exceed 60%; GaN device segment Innoscience's dominant position to further consolidate (domestic CR1 expected to exceed 50%).

11.10　Long-Term Coexistence of SiC and GaN

A common misconception is viewing SiC and GaN as competing and mutually exclusive. This report's judgment: SiC and GaN will coexist long-term, each dominating different application scenarios rather than replacing each other.

SiC's primary territory: High-voltage (650V–1700V), high-current (> 50A), high-temperature (Tj > 175°C) conditions — NEV main drives, large-scale PV/energy storage inverters, heavy industrial drives.

GaN's primary territory: Mid-to-high frequency (> 100kHz), low-to-mid voltage (< 650V), ultra-high power density conditions — datacenter power, fast charging adapters, server PoL, automotive OBC.

Crossover competition zone: 400–650V, tens of amperes applications — the most intense crossover competition range between SiC and GaN, with final winner depending on cost competitiveness as both 8-inch SiC and 8-inch GaN-on-Si scale up.

11.11　Long-Term Certainty of Dual Carbon Targets for Power Semiconductors

China's "peak carbon by 2030, carbon neutral by 2060" commitment provides an extremely rare "long-term certainty" for power semiconductor markets — a policy backing spanning 35 years. By 2060, China's PV cumulative installations are expected to exceed 3,000GW, wind power exceeding 2,000GW, NEV ownership exceeding 500 million units, energy storage cumulative installations exceeding 600GW. Even in the most conservative scenario, CAGR for China's power semiconductor market in 2026–2030 will not fall below 6%, with SiC and GaN segments at 25%–30%.

This long-term certainty's strategic significance: it dramatically reduces the uncertainty of power semiconductor enterprises making long-cycle capital decisions — in other semiconductor segments, it's difficult to plan capacity and R&D investment over 10+ year horizons; in power semiconductors, especially SiC substrates and automotive IGBT modules, long-cycle deployment rationale is highly certain.

11.12　China Power Semiconductor Patent Portfolio

As technology accumulation deepens, Chinese power semiconductor enterprises' patent portfolios are entering rapid growth phases. Starpower in 2025 covered 7th-generation micro-trench IGBT structure, SiC MOSFET trench gate design, copper sintering packaging process, and other core technology directions; Tianyue Advanced has accumulated 300+ patents in SiC substrate crystal growth processes; Innoscience's patents in 8-inch GaN-on-Si epitaxy processes and GaN HEMT device structures were important intellectual property backing for the IPO.

However, compared to Infineon (30,000+ power semiconductor patents), Chinese enterprises' patent reserves are still in early stages, with gaps in: high-generational IGBT structure patents (Infineon, Fuji 7th+ generation IGBT trench structures), high-temperature SiC epitaxy process patents (Wolfspeed's massive historical accumulation), system-level power module layout patents. Short-term this won't directly block domestic market expansion (Chinese domestic litigation risk is limited), but for enterprises entering European and American markets (e.g., Starpower supplying European Tier1s), IP risk is a topic requiring serious management.

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Chapter 12　Conclusion

Power semiconductors are the "infrastructure of energy transition" in this era — not merely a component in manufacturing supply chains.

Understanding this enables understanding why China's power semiconductor localization progressed so rapidly over the past five years: not driven by a single enterprise or policy, but by the simultaneous, large-scale demand from three industrial waves — new energy vehicles, photovoltaics, and energy storage — intersecting with policy thrust, capital support, and supply chain maturation to form a rare historical synthesis. When the downstream adds millions of EVs, hundreds of GWs of PV installations, and dozens of GWs of energy storage systems each year, power semiconductor domestic substitution is no longer just "possible" — it becomes "must be completed," because at this scale of demand, global imported capacity simply cannot fully cover it; domestic supply chain filling is structural, not optional.

Looking back at 2025, China's power semiconductor industry completed several structurally significant achievements in a year of global industry cyclical trough combined with price war:

First, Starpower Semiconductor established domestic IGBT leader status at scale with RMB 4.012 billion revenue, and despite "revenue growth without profit growth," its expansion into European markets and new applications like eVTOL marks domestic IGBT's competitive radius extending from "domestic substitution" to "global competition."

Second, Tianyue Advanced completed the global substrate leadership transition during the historical window of Wolfspeed's bankruptcy with 27.6% global conductive SiC substrate market share and 51.3% in 8-inch SiC — this is the first time a Chinese semiconductor material enterprise truly reached the top of an important global segment, not relying on subsidies or protective policies, but on capacity investment and technology accumulation.

Third, Innoscience's entry into Nvidia's 800V HVDC datacenter supply chain marks China's GaN devices' first commercial validation in the world's highest-demand-intensity application scenario — from consumer electronics fast charging to AI infrastructure power supply, this is a milestone in GaN industry transition.

Fourth, Nexperia's Dutch government takeover, in the most unexpected way, reminded the entire industry: geopolitical intervention in semiconductor supply chains has extended from "restricting exports" to "direct takeover" — a real variable Chinese power semiconductor enterprises must incorporate into risk models when advancing global strategies.

From a technology perspective, the 2026–2030 core logic line is the "8-inch SiC cost reduction → SiC penetration downstream → domestic SiC substitution acceleration" transmission chain. When 8-inch SiC device mass production reduces single chip costs by 35%–40% vs. 2025, SiC replacement of 400V platform IGBT will extend from flagship models to mainstream vehicles; domestic SiC enterprises that synchronously maintain technology and capacity progress will harvest the second wave of localization dividends — in scale not smaller than the first wave of automotive IGBT localization.

From a competitive landscape perspective, China's power semiconductor localization completed in an environment where global supply chains remain highly connected — not forced substitution under closed conditions, but market share won through head-to-head competition with Infineon, onsemi, and Rohm. This distinction is important: market share won in head-to-head competition represents genuine technology and cost competitiveness; share protected by administrative barriers may rapidly erode once barriers loosen. Currently, automotive IGBT and SiC substrates — the two localization achievements — are closer to the former. This is China's power semiconductor industry's most commendable characteristic.

This report judges that by 2030, China's power semiconductor overall weighted localization rate will rise from approximately 30%–35% in 2025 to approximately 45%–55%; SiC substrate domestic share will exceed 50% (conductive type); automotive IGBT localization rate will exceed 80%; automotive-grade SiC device domestic rate may exceed 50%. Prerequisites: technology roadmap without detours, capacity investment uninterrupted, enterprise R&D intensity maintained above 8%–12% of revenue.

Tianxiagongchang's industrial data shows that downstream application factories related to the power semiconductor supply chain — from factories manufacturing EV electronic control systems, to factories assembling PV inverters, to factories producing energy storage converters — are distributed across over 30 provinces and municipalities in China, forming the world's highest-density, largest-scale power semiconductor application manufacturing base. These factories' collective presence is both the most important demand source for China's power semiconductor localization and the ecological foundation for power semiconductor technology to receive continuous validation and iteration in real engineering environments. Without this manufacturing network, any technological breakthrough would remain only a laboratory achievement; precisely because of this network, every reliability validation and every mass production qualification carries the weight of truly shifting competitive coordinates in the global power semiconductor industry landscape.

This is the fundamental logic of the "electrical energy valve" localization process, and also China's power semiconductor's most important industrial foundation at the historical inflection point of 2026.

From the perspective of the industrial ecosystem, power semiconductor localization has one fundamental difference from other semiconductor segment localizations: it did not complete within a closed "domestic market," but through genuine market competition alongside top international enterprises. Automotive IGBT localization was completed through commercial decisions where Starpower and Times Electric competed for the same vehicle models against Infineon; SiC substrate localization was won by Tianyue Advanced with more competitive 8-inch products and faster capacity expansion pace in the global market; datacenter GaN device localization was won by Innoscience passing quality and performance tests in Nvidia's supply chain review. Localization completed through genuine competition has a more solid foundation than substitution under protective measures.

This report judges that China's power semiconductors will complete three historically significant crossings in 2026–2030:

First, SiC device localization rate crossing the 50% threshold (automotive + PV weighted), marking China achieving genuine domestic supply dominance in the most important third-generation semiconductor device category.

Second, SiC substrate domestic share breaking 55%, making China the most important global SiC substrate supply base, establishing an unassailable position in the most critical source segment of the SiC supply chain.

Third, China's power semiconductor enterprises first appearing in global top five rankings (most likely Starpower or Times Electric, in automotive IGBT or high-voltage IGBT segments), marking the qualitative transformation completion from "domestic substitution" to "global competitor."

These three crossings are not optimistic estimates, but comprehensive inferences based on existing technology accumulation, capacity planning, downstream demand scale, and competitive landscape — each with clear industrial logic support. Of course, realizing these crossings requires: enterprises maintaining sufficient R&D investment during price wars, not abandoning high-end strategies under short-term profit pressure; stable supportive policy environment; global trade friction not generating a new round of sanctions targeting power semiconductor mature processes.

The power semiconductor localization story is a story of "time accumulation." Unlike consumer chips where a single overnight design breakthrough can be achieved, it requires accumulation in every parameter of manufacturing processes, every data point of reliability validation, and every qualification in customer relationships — measured in years. China's power semiconductors arrived at today through this accumulation; advancing to the future still requires this accumulation.

This is the final judgment this report wants to leave.

Power semiconductor competition is not a battle of a moment, but the work of a decade; not the victory of one enterprise, but the depth of an industry and the accumulation of a nation. After twenty-five years from dependence to breakthrough, China's power semiconductors have arrived at a new starting point. And this story, in its most important chapter — how to go from "breaking through" to "leading globally" — is still being written.

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Data Sources and Main References

This report is compiled and analyzed by the Tianxiagongchang Industrial Research Institute based on the platform's factory and supply chain data, combined with public materials, official information, and authoritative media reports. Main data and factual sources include:

• Tianxiagongchang industrial platform's China factory database and supply chain data (www.tianxiagongchang.com)
• Starpower Semiconductor (603290) 2025 Annual Report, H1 2025, Q1 2026 (listed company announcements, Shanghai Stock Exchange)
• Times Electric (688187) 2025 Annual Report, H1 2025 (listed company announcements, Shanghai Stock Exchange)
• San'an Optoelectronics (600703) 2025 Annual Report, H1 2025 (listed company announcements, Shanghai Stock Exchange)
• Tianyue Advanced (688234) 2025 Annual Report, H1 2025 (listed company announcements, Shanghai Stock Exchange)
• Innoscience (02577.HK) 2025 Annual Report (Hong Kong listed company announcements, Hong Kong Stock Exchange)
• Silan Micro (600460), SiEn (688396), Wingtech Technology (600745), Yangjie Technology (300373) public annual reports
• Infineon Technologies AG FY2025 Annual Report and investor relations releases (infineon.com)
• STMicroelectronics 2025 Full Year Financial Report (SEC Form 6-K)
• Wolfspeed Inc. Chapter 11 bankruptcy and restructuring announcements (SEC Form 8-K, U.S. Bankruptcy Court for the Southern District of Texas)
• Qianzhan Industrial Research Institute "2025 China Power Semiconductor Industry Panoramic Atlas"
• International Electronics Market China (ESMCHINA), Compound Semiconductor Market (CSET) 2025 power semiconductor market data
• China National Energy Administration new energy installation statistics (2025)
• China Association of Automobile Manufacturers (CAAM) NEV sales data (2025)
• National IC Industry Investment Fund Phase III establishment and investment announcements (NDRC, MIIT)
• MIIT policy documents and industry research reports on third-generation semiconductors and power semiconductor localization rates
• Dutch government official statement on Nexperia temporary takeover (September 2025)
• China Ministry of Commerce announcement on Nexperia China subsidiary export control measures (October 2025)
• Yuanzhan Huiku, East Money (caifuhao) related power semiconductor research reports
• Huachuang Securities, East Money Securities research reports on Innoscience, Starpower, and other enterprises
• Ai'bang Semiconductor, Electronic Engineering Times China (EET-China) related industry reporting and data