China Securities Co., Ltd.: The AIDC boom is expected to drive a demand increase of tens of billions of yuan; power semiconductors are entering a new cycle.

China Securities Co., Ltd. released a research report stating that driven by the AIDC boom and incremental demand from new energy vehicles, power semiconductors have seen a wave of price increases since 2026. From the perspective of technological iteration, third-generation power semiconductor devices represented by SiC are highly suited to the technological trend of high-voltage DC conversion in AIDC, and therefore show penetration rate improvement trends across multiple areas including SST, HVDC, and solid-state circuit breakers, with more pronounced incremental growth. According to estimates, under the AIDC boom and technological iteration, it is expected that by 2030 this will bring incremental demand for SiC power devices on the scale of RMB10 billion. The upstream and downstream of the SiC power device supply chain are expected to see resonance in incremental growth. China Securities Co., Ltd.'s main viewpoints are as follows: The AIDC boom is driving power semiconductors into a new demand cycle Driven by the AIDC boom and incremental demand from new energy vehicles, power semiconductors have seen a wave of price increases. Since 2026, Infineon, Texas Instruments, onsemi, STMicroelectronics and others have collectively announced price increases, with domestic manufacturers following suit. The upgrade of AIDC power supply architecture will significantly drive incremental growth in SiC and GaN, among others. The upstream and downstream of the SiC power device supply chain are expected to see resonance in incremental growth The upstream of the SiC power device industry chain mainly includes SiC substrates, epitaxy and other segments, among which substrates account for a relatively high share of value. The SiC device production process mainly includes substrate manufacturing, epitaxial growth, wafer manufacturing, packaging manufacturing and other segments. The SiC industry chain currently generally presents a landscape in which overseas leaders lead with integrated operations while domestic enterprises accelerate their catch-up. The AIDC boom is expected to drive incremental demand on the scale of RMB10 billion 1) From the perspective of downstream application areas for power semiconductors, driven by the upgrade to 800V power supply architecture, AIDC is currently the fastest-growing marginal market. 2) From the perspective of technological iteration, third-generation power semiconductor devices represented by SiC are highly suited to the technological trend of high-voltage DC conversion in AIDC and are one of the core components of power supply units, and therefore show penetration rate improvement trends across segments including SST, HVDC, PSU, and solid-state circuit breakers, resulting in more pronounced incremental growth. According to estimates, it is expected that by 2030 this will bring incremental demand for SiC power devices on the scale of RMB10 billion.