China is vigorously promoting a new field - power semiconductors. Power semiconductors are used to control and convert electricity in systems, and are used in automobiles, computers, and industrial products. Power semiconductors are specialized transistors that allow current to flow in the "on" state and stop in the "off" state. They improve efficiency and minimize energy loss in the system. After decades of use, power devices have become increasingly important. The country must use technology to protect the environment. One solution is hybrid and electric vehicles, with power electronics being the key. Due to the trend of automotive electrification and digitization, the demand for power semiconductors is predicted to grow rapidly by multiple power chip manufacturers, such as IGBT and SiC MOSFET.

The current power semiconductor market is dominated by silicon-based devices, including power MOSFETs, super junction power MOSFETs, and insulated gate bipolar transistors (IGBTs). Power MOSFETs are used for low-voltage, 10 to 500 volt applications, such as adapters and power supplies. Super MOSFETs are used for applications ranging from 500 to 900 volts. IGBT is a leading mid-range power device used in systems ranging from 1.2 kV to 6.6 kV.

IGBT and MOSFET are widely used, but they have also reached their limits. This is why more and more suppliers are developing power devices based on two broadband gap technologies (GaN and SiC). GaN and SiC based power devices are smaller and more efficient than silicon, but they are also more expensive.

Several Chinese companies are developing and manufacturing various types of power semiconductors. Nevertheless, domestic system manufacturers still have to import most of these devices from multinational corporations.

On the one hand, technologies like GaN are difficult to develop and silicon carbide is more robust, so Chinese automotive companies are all sourcing from foreign companies. Looking ahead to the future, the country hopes to develop and manufacture more of its own semi-finished products. According to SEMI data, China is expected to become the global leader in power and compound semiconductor wafer fab production capacity by 2023.

Currently, China is also expanding in other ways. In 2017, NXP sold its standard product business called Nexperia to a Chinese consortium. In 2019, China Telecom's Wentai Holdings held a controlling stake in Nexperia, a discrete device and MOSFET supplier. Nexperia is now a subsidiary of Wingtech, with its headquarters still located in the Netherlands.

In 2020, China invested 25 projects in the SiC and GaN fields, with a cost of 10.9 billion US dollars. According to TrendForce data, there are approximately 14 6-inch SiC wafer production lines in China among these numbers. HDSC、 Sanan IC, Tankeblue, and others have SiC production lines in China.

Domestic domestic silicon carbide suppliers have also turned their attention to multiple markets. The booming electric vehicle market in China and globally is incentivizing all SiC suppliers to expand their manufacturing capabilities. The significant growth in sales in the electric vehicle market is accelerating the decline in SiC device prices, thereby increasing their adoption rates in other growth markets such as photovoltaic string inverters, energy storage, UPS, and motor drives.

Now, all car manufacturers are integrating or evaluating SiC for power inverters in their new BEVs. Silicon carbide devices are also used in DC-DC converters and car chargers in BEVs. With the increasing demand for fast charging and autonomous driving, vehicles will require high-voltage platforms. Silicon carbide MOSFETs will contribute to the future of the system by providing longer distances, more compact dimensions, and better overall system costs.

In addition to SiC, China is also interested in GaN, which is a III-V group material used for LEDs, power semiconductors, and radio frequencies. The first booming market for GaN for power conversion is in the field of fast chargers. A fast charger based on GaN devices is a small adapter that can charge smartphones and laptops faster than traditional chargers. Quick chargers are popular accessories for Chinese smartphone manufacturers. Recently, Xiaomi has launched a smartphone and an independent 55 watt fast charger based on nano and micro GaN power devices.

Multinational corporations still dominate the GaN power device market, but China's Innosccience is poised to take off. Several Chinese companies are also building new GaN wafer factories. According to TrendForce data, as of 1H21, China has installed approximately 7 GaN on Si wafer production lines, and currently at least 4 GaN power device production lines are under construction. Similarly, not all projects in China will be successful.