Power SiC momentum builds as the global supply chain evolves – Insights ahead of SEMICON China 2026
Every quarter, Yole Group releases its Power SiC/GaN Compound Semiconductor Market Monitor, which tracks the latest developments in SiC and GaN for power electronics. As electrification accelerates across industries, and with the recent rapid expansion of AI data centers, the compound semiconductor market gains momentum. Combined, power SiC and GaN are expected to exceed $14 billion in 5 years, driven by strong demand across automotive, industrial, consumer, and now, increasingly, AI infrastructure applications.
With SEMICON China 2026 approaching, this is an ideal moment to share Yole Group’s analysts’ latest perspectives on the power SiC market and the ongoing evolution of the global supply chain, particularly through the lens of the Chinese ecosystem.
The rapid scaling of AI data centers is expanding the requirements for power electronics. Beyond traditional applications, SiC is now gaining traction in:
Power Supply Units (PSUs)
Battery Backup Units (BBUs)
Emerging Solid-State Transformers (SSTs).
This market segment is expected to be worth a hundred million dollars by 2026 with a strong CAGR, based on the latest market dynamics.
However, despite this strong momentum, AI-related applications remain smaller than the core SiC markets, namely:
Automotive (especially EV traction inverters)
Industrial and energy applications.
These segments are projected to drive the total SiC market to over $4.6 billion in 2026.
Poshun Chiu
Principal Analyst, Compound Semiconductors at Yole Group
Encouragingly, the overall outlook is more optimistic than in 2024–2025, when leading device players were impacted by the global slowdown in automotive demand.
Diverging dynamics: global vs. Chinese players
At the global level, many international SiC device players have faced a challenging environment. In 2025, growth remained limited due to:
Slower-than-expected demand
Continued price erosion.
As a result, several leading suppliers struggled to deliver continuous revenue growth in 2025.
In contrast, China presents a markedly different dynamic, offering fertile ground for the development of a domestic SiC ecosystem.
A notable example is UNT, China’s leading SiC device player. The company achieved approximately 50% year-on-year growth in 2025, reaching a top-5 position globally (tied) and accounting for around 5% global market share.
This performance is underpinned by several strategic factors, enabling the company to grow from both demand and supply perspectives:
Strong partnerships with multiple Chinese automotive OEMs
200mm SiC device manufacturing for the front-end started in 2025
Significant investments in power module packaging capacity for the back-end.
When focusing specifically on SiC power modules, UNT could rank as high as No.4 globally, highlighting the strength of its position in this segment.
Besides UNT, many Chinese device players are ramping up production and expanding capacity to prepare for growth in the coming years.
Chinese leadership in SiC materials
The position in SiC materials looks similar to that at the device level, as the same trend has been observed in the SiC wafer market over the past few years: Chinese suppliers have been rapidly scaling both in production capacity and technical capabilities. This has enabled them to align closely with customer roadmaps, including the transition to larger wafer sizes.
As of 2026, SICC and TankeBlue are both ranked among the top 3 global SiC wafer suppliers.
SICC leads in 200mm SiC wafer shipments, supporting key international players transitioning to 200mm platforms
TankeBlue has built the largest overall capacity, leading in total shipments when measured in 6-inch equivalents.
This rapid rise indicates that Chinese players have reshaped the structure of the domestic market within the dynamic SiC supply chain.
A Broader transformation across compound semiconductors
The evolution of the Power SiC ecosystem is just one part of a broader transformation across the compound semiconductor industry.
Innovation and growth in Power GaN, particularly for automotive and data center applications
Strategic developments in InP, driven by optical communication and datacom demands; the platform is also moving to 150mm substrates.
Looking ahead…
This article provides only a snapshot of the ongoing changes within the compound semiconductor industry. Yole Group’s team looks forward to meeting you at SEMICON China 2026, the CS Asia Conference on 24-26 March. On-site, analysts will explain the latest views on compound semiconductors and the impact of the robust AI datacenter market.
About the author
Poshun Chiu is Principal Analyst, Compound Semiconductors at Yole Group.
Poshun is engaged in the development of technology and market products and is involved in custom projects.
Before joining Yole Group, Poshun had 9 years’ experience in R&D and product management at Epistar (TW & CHN). He is the author or co-author of more than ten patents in solid-state lighting. Poshun was also engaged in the development and evaluation of novel applications of process technology and components based on relevant semiconductor material solutions.
Poshun received an MSc in Microelectronics from National Cheng Kung University (TW) and an MBA from IESEG School of Management (FR).”
Poshun Chiu Principal Analyst, Compound Semiconductors at Yole GroupEncouragingly, the overall outlook is more optimistic than in 2024–2025, when leading device players were impacted by the global slowdown in automotive demand.
