Full Overview of the Power Semiconductor Market

I. Overall Market Status

The power semiconductor industry is currently seeing price recovery, tight production capacity and surging demand. Coupled with constrained supplies from overseas manufacturers and the boom of emerging applications, domestic enterprises have gained a critical development window, and the pace of domestic substitution is accelerating rapidly.

II. Two Core Drivers of Price Rebound

1. Rising Raw Material Costs

Base metals including copper, silver and tin have seen price hikes since late 2025. In 2026, copper prices rose by another 5.2%, tin prices hit a three-year high, and rare earth material prices increased by 8%.For medium and low-voltage MOSFETs, the proportion of material costs climbed from 22% at the start of the year to 31%. Prices of packaging and other auxiliary materials rose by over 10%, directly pushing up overall product costs.

2. Shrinking 8-inch Wafer Capacity & Widening Supply-Demand Gap

Major players including TSMC and Samsung have cut 8-inch wafer capacity, leading to a global decline of over 2% in 8-inch capacity in 2026.Driven by AI, cloud computing and automotive electronics, demand for 8-inch chips has skyrocketed, triggering a market rush for inventory. Capacity expansion by domestic manufacturers still fails to fill the gap, keeping overall capacity operating at full load.Quotation prices for 8-inch wafer foundry services increased by 5%–20%, with the most notable rises seen in BCD chips and medium & low-voltage MOSFETs. Downstream product prices followed suit, with medium & low-voltage MOSFETs rising by 10%–20%.Industry Responses: Enterprises are adjusting inventory and order schedules, signing long-term supply agreements and speeding up domestic substitution.

III. Demand Side: Booming Growth Across Multiple Sectors

1. AI Data Centers

Soaring computing power demand fuels the expansion of data centers. The power consumption of a single cabinet has reached the megawatt level, and the industry is shifting toward 800V high-voltage DC solutions. Wide-bandgap power semiconductors have become core components, with tens of thousands of power devices required per cabinet, driving explosive demand for related products.

2. New Energy: Energy Storage, Photovoltaics & Wind Power

Power conversion systems for energy storage and photovoltaic inverters are the main application scenarios. Over tens of millions of power devices are needed per gigawatt of installed capacity.New energy projects in Europe and other regions are growing rapidly, while local capacity falls short. A large number of orders have been transferred to domestic manufacturers, with market penetration and industry scale doubling continuously.

3. Overseas Supply Chain Status

Overseas manufacturers maintain low inventory levels, with lead times greatly extended (generally 6 months, up to 1.5 years at maximum), and their order books are booked through to the next year.Leading overseas suppliers prioritize high-margin clients such as AI and data center operators, resulting in shortages of mid-to-low-end industrial power devices. This creates huge opportunities for domestic players to capture larger market shares.Europe is ramping up policy support for local new energy and data center industries, further boosting overall industry orders.

IV. Key Leading Domestic Manufacturers

1. MOSFET Sector

• CR Micro: A leading domestic full-chain IDM enterprise. Monthly 8-inch wafer output reaches 150,000 pieces. Its super-junction MOSFETs match international top-tier standards. A 6-inch silicon carbide (SiC) production line has been put into operation, with a 30% capacity expansion planned.

• New Energy Saving: Achieved technological breakthroughs in medium and high-voltage MOSFETs and entered global supply chains.

• Yangjie Technology: Its third-generation SiC MOSFETs have passed automotive-grade certification and supply BYD and Xiaomi.

2. IGBT Sector

• Sida Semiconductor: Its IGBT modules achieve 92% efficiency, holding an 18% global market share, with clients including Tesla and NIO.

• BYD Semiconductor: A front-runner in the IGBT market, with capacity supporting 1 million new energy vehicles.

• Silanwei: Boasts self-developed IGBT technology and has launched a 6-inch SiC production line.

• CRRC Times Electric: Leading supplier of rail transit IGBTs with efficiency exceeding 95%.

• Macro Micro Technology: Strong competitiveness in IGBTs dedicated to photovoltaics and energy storage.

3. Third-Generation Semiconductors (SiC/GaN)

• Silanwei: Its SiC devices have obtained automotive-grade certification.

• Xinlian Integration: Ranks top 3 in domestic shipments of automotive-grade modules.

• Innoscience: Gallium nitride (GaN) products have entered data center supply chains.

• Dongfei Semiconductor: Holds a considerable market share of high-voltage super-junction MOSFETs for charging piles and green energy applications.

4. Specialized Enterprises in Niche Segments

• Jiejie Microelectronics: Leading thyristor manufacturer with products adopted by mainstream supply chains.

• Yandong Microelectronics: Specializes in customized process foundry and holds qualifications for manufacturing military discrete devices.

• Huawei Electronics: Excels in power devices for home appliances and consumer electronics.

• Taiji Electronics: Focuses on high-voltage rectifiers and thyristors.

• Yinhe Microelectronics: Strong capability in packaging small-signal discrete devices.

V. Golden Era for Domestic Manufacturers: Core Drivers & Outlook

1. Key Growth Drivers

• Supply-Demand Imbalance: Global giants dominate the high-end market, while booming demand from new energy and data centers creates a substantial supply gap.

• Technological Breakthroughs: Multiple domestic enterprises have passed automotive-grade certification, entered top global supply chains and steadily expanded market share.

• Cost & Policy Advantages: Supported by coordinated domestic industrial chains and favorable policies, domestic products cost 20%–30% less than overseas equivalents, delivering prominent cost-performance.

2. Industry Outlook

Driven by domestic substitution and technological innovation, China’s power semiconductor industry is expected to enter a phase of rapid development by 2030.