The global market size has exceeded 610 billion yuan, with China accounting for over 40%. Power semiconductors, the “CPU” of power electronic devices, are becoming the core engine of the new energy revolution.
When we drive electric vehicles or use solar charging panels, a series of power semiconductor devices are silently converting and controlling electrical energy behind the scenes. As the “energy regulator” of electronic devices, power semiconductors utilize the unidirectional conductivity of semiconductors to achieve functions such as frequency conversion, phase conversion, voltage conversion, inversion, and rectification, making them the “CPU” of power electronic devices. By 2025, the global power semiconductor market size is expected to reach 610.1 billion yuan, with China, as the largest consumer country, exceeding 180 billion yuan, accounting for over 40% of the global total. Driven by the new energy revolution, this once-obscure foundational industry is now in the spotlight.
01 Industry Chain Overview: An Ecological System of Collaborative Development in Upstream, Midstream, and Downstream
The power semiconductor industry chain is clear, covering three major links: upstream materials and equipment, midstream manufacturing and packaging, and downstream applications. The upstream link is the foundation of the industry, mainly providing semiconductor materials and manufacturing equipment. Semiconductor silicon wafers are the primary raw material for power semiconductors, with global sales expected to reach approximately 11.5 billion USD in 2024. Photoresists, as core materials for photolithography processes, are projected to reach a market size of 8.05 billion yuan in China in 2024, a year-on-year increase of 25.39%, and expected to grow to 9.78 billion yuan in 2025. Semiconductor equipment includes photolithography machines, etching machines, etc., which have high technical requirements and are expensive. The global semiconductor equipment market is expected to reach 119.2 billion USD in 2024, a year-on-year increase of 11.3%, and is projected to grow to 139.82 billion USD in 2025. Chinese companies have made progress in areas such as photolithography and etching machines, but high-end equipment still relies on imports. Midstream manufacturing is the core of the value chain, including design, manufacturing, and packaging testing. It can be divided into two main categories based on integration: power discrete devices and power ICs. Power discrete devices include diodes, thyristors, MOSFETs, and IGBTs; power ICs integrate power devices with control circuits. Downstream applications are extremely broad, covering almost all areas of power electronics. In 2024, industrial applications will account for the largest share at 25.4%, while automotive and consumer electronics will account for 25.3% and 23.6%, respectively, with communications accounting for 15.0%. The demand in new energy vehicles and renewable energy sectors is growing the fastest.
02 Market Size: Rapid Growth Driven by New Energy
The power semiconductor market is entering a period of rapid growth, with China becoming the largest consumer market globally. The global market is steadily expanding, increasing from 411.5 billion yuan in 2020 to 595.3 billion yuan in 2024, with an average annual compound growth rate of 9.67%, and is expected to reach 610.1 billion yuan in 2025. This growth is primarily driven by demand from emerging industries such as the Internet of Things and new energy. The Chinese market is particularly impressive. In 2023, the market size of power semiconductors in China reached 151.9 billion yuan, exceeding 160 billion yuan in 2024, and is expected to surpass 180 billion yuan in 2025. As the largest consumer of power semiconductors globally, China contributes approximately 40% of the global market share. In terms of product structure, power ICs are the largest sub-market, accounting for 54.3%, including power management chips and driver chips. MOSFETs account for 16.4%, power diodes 14.8%, and IGBTs 12.4%. The MOSFET market has maintained stable growth, with the Chinese market size in 2022 being approximately 5.4 billion USD, a year-on-year increase of 15.88%, and is expected to reach 5.66 billion USD in 2023. IGBTs, as one of the fastest-growing power devices, had a market size of 32.19 billion yuan in China in 2022, and is expected to grow to 46.81 billion yuan by 2025, with an average annual compound growth rate of 13.3%.
03 Technological Evolution: From Silicon-Based to Wide Bandgap Material Revolution
Power semiconductor technology is undergoing a revolutionary transition from traditional silicon-based to wide bandgap semiconductors. MOSFETs and IGBTs are currently the mainstream power devices. MOSFETs are suitable for high-frequency scenarios (100-1000KHz, 20-1200V), while IGBTs are more suitable for high-voltage, medium-low frequency fields (<100KHz, 600-6500V). IGBTs combine the advantages of low drive power and fast switching speed of MOSFETs with the low on-state voltage drop and high current-carrying capacity of BJTs, making them the main devices in modern power semiconductors. Wide bandgap semiconductors have become the direction of technological breakthroughs. Silicon carbide (SiC) and gallium nitride (GaN), as third-generation semiconductor materials, possess characteristics of “high voltage resistance and low loss.” SiC devices significantly outperform traditional silicon-based power devices in terms of on-resistance, blocking voltage, and junction capacitance, making them more suitable for high-voltage, high-energy density applications. GaN devices have higher switching frequencies, making them more suitable for high-frequency applications. Technological iterations are driving product upgrades. Power semiconductors are continuously evolving from uncontrollable, current-controlled to voltage-controlled, from low power to high power, and from discrete devices to intelligent power modules. MOSFETs have evolved from planar, trench to super junction and shielded gate device structures; IGBTs have evolved along the paths of punch-through, non-punch-through, and field-stop technologies. Integration has become an important trend. Power modules consist of multiple discrete devices connected in series and parallel according to specific functions, simplifying external connection circuits and improving reliability. Power ICs integrate power devices with their driving circuits, protection circuits, etc., achieving higher integration levels.
04 Competitive Landscape: International Giants Dominate and Domestic Substitution Opportunities
The power semiconductor market presents a competitive landscape dominated by international giants, with Chinese companies rapidly catching up. The global market is highly concentrated, mainly dominated by companies from Europe, America, and Japan. Infineon holds a market share of 13.5%, followed by Texas Instruments, ON Semiconductor, and others. The MOSFET and IGBT markets are firmly monopolized by Infineon, which holds a significant market share. Among the top ten global power semiconductor companies, half are Japanese, with three from Europe and two from the United States. Chinese companies are rapidly rising, but the market concentration is relatively low. The competition in the Chinese power semiconductor market is quite fragmented, with no monopolistic companies emerging. Domestic companies such as China Resources Microelectronics, Silan Microelectronics, and BYD Semiconductor are accelerating technological breakthroughs. Wingtech Technology’s Anshi Semiconductor is the only Chinese company to enter the global top ten power semiconductor companies, ranking eighth. Domestic substitution has vast potential. The Chinese power semiconductor industry has gaps in technological accumulation and talent reserves compared to foreign countries, but it is accelerating its catch-up. Domestic companies have mastered core technologies such as IGBT chips and FRED chips and have achieved mass production, breaking the monopoly of foreign manufacturers in the market. Model selection is becoming an important development direction, with IDM (Integrated Device Manufacturing) emerging as a key trend. Power semiconductor companies are gradually moving towards the IDM model to effectively control costs and ensure delivery times. Most international giants are IDM manufacturers, possessing the advantages of integrated design and manufacturing.
05 Application Scenarios: New Energy Revolution Creates New Demand
The application scenarios for power semiconductors are rapidly expanding from traditional industrial control and consumer electronics to emerging fields such as new energy and smart grids. New energy vehicles have become the largest growth point. Power semiconductors are used in electric vehicles for core components such as motor drives and battery management systems, directly affecting key indicators such as range and charging speed. From January to July 2024, the production and sales of new energy vehicles in China increased by 28.8% and 31.1%, respectively, with new car sales accounting for 36.4%. The sales of smart vehicles in China increased from 8 million units in 2020 to 20.4 million units in 2024, with an average annual compound growth rate of 26.37%. Industrial control is the largest application field, accounting for 25.4%. The global industrial automation market size is expected to reach approximately 509.59 billion USD in 2024, and is projected to reach 543.66 billion USD in 2025. The advancement of Industry 4.0 has increased the demand for automation equipment. The renewable energy sector is experiencing strong demand. Power semiconductors play a key role in photovoltaic inverters, wind power generation, and other areas. In the first half of 2024, China’s newly added photovoltaic capacity reached 102 million kilowatts, a year-on-year increase of 31%, with a total installed capacity of 713 million kilowatts. The consumer electronics market accounts for 23.6%. Although the smartphone market is nearing saturation, fast charging technology is driving the demand for new power semiconductors such as GaN. In the first half of 2024, the Chinese tablet market rebounded, with shipments reaching 14.33 million units.
06 Regional Distribution: Industrial Clusters and Regional Heat
The power semiconductor industry in China exhibits significant clustering characteristics, with the Yangtze River Delta and Pearl River Delta becoming enterprise aggregation areas. Enterprise distribution is highly concentrated. Power semiconductor-related listed companies are mainly located in Jiangsu Province, with a total of 11. Zhejiang Province and Guangdong Province have 8 and 7, ranking second and third, respectively. These regions have a complete industrial chain, policy support, and talent advantages. The Yangtze River Delta and Pearl River Delta are economically developed, with dense electronic manufacturing industries and large market demand, becoming aggregation areas for power semiconductor companies. Jilin and Hubei have a traditional industrial base, with universities and research institutions concentrated, leading to deep technological accumulation. Shanghai, as an economic center, is rich in financial and technological resources, promoting rapid industrial development. Collaborative advantages of the industrial chain are becoming evident. Power semiconductor companies rely on industrial clusters to form a complete industrial chain from materials, equipment to design, manufacturing, and packaging testing. Collaborative innovation within the region accelerates technological breakthroughs and industrial applications.
07 Policy Environment: National Strategy Supports Industry Development
Power semiconductors, as a key industry supported by the state, benefit from a series of policy dividends. The national strategy has increased support. The “14th Five-Year Plan” proposes to concentrate advantageous resources to tackle key core technologies in critical components and parts. Power semiconductors, as core components for achieving autonomous and controllable electrification systems and energy conservation and environmental protection, will see a significant increase in demand. Domestic substitution has become the main theme. After the China-U.S. trade friction, the autonomy and control in key components have become increasingly important. Relevant national departments have introduced a series of policies to support the development of the power semiconductor industry, and the process of domestic substitution is expected to accelerate. New energy policies drive demand growth. Under the “dual carbon” strategic goal, China’s new energy industry is developing rapidly. Policies for new energy vehicles, photovoltaic power generation, and other industries create a huge market space for power semiconductors.
08 Future Trends: Greening, Integration, and Domestic Substitution
The power semiconductor industry will evolve towards three major directions: greening, integration, and domestic substitution. Green and low-carbon will become the main technical line. Wide bandgap semiconductors such as SiC and GaN are expanding their application range due to their performance advantages. ON Semiconductor predicts significant growth in its silicon carbide revenue, while STMicroelectronics has adjusted its 2025 silicon carbide revenue target to 2 billion USD. Integration will continue to advance. Power semiconductors are developing from discrete devices to modular and integrated forms. Intelligent power modules will integrate control and protection functions, improving system reliability. The integration level of power ICs continues to rise, meeting the demand for miniaturization and lightweighting of electronic devices. Domestic substitution is accelerating. With national policy support and market demand driving, Chinese power semiconductor companies are accelerating technological breakthroughs. The domestic production rate across the entire industry chain, from materials and equipment to design and manufacturing, will continue to rise. Application innovation expands market space. New energy vehicles, renewable energy, smart grids, and other emerging fields present new demands for power semiconductors. Third-generation semiconductors have significant advantages in high-voltage, high-frequency, and high-temperature application scenarios, with a broad market prospect. The power semiconductor industry is ushering in unprecedented development opportunities. The global energy revolution and low-carbon transition are driving continuous growth in market demand, while technological innovation injects new momentum into the industry. In China, policy support and market demand are driving the acceleration of domestic substitution. In the next five years, the Chinese power semiconductor industry is expected to achieve full autonomy in the mature process field and keep pace with international advanced levels in the wide bandgap semiconductor field. Companies that master core technologies and layout the entire industry chain will gain an advantage in this round of industrial transformation.
Contact via WeChat: gonghaoshanghai