Why Third-Generation Semiconductors?

🌟 Third-Generation Semiconductors: How Silicon Carbide and Gallium Nitride Quietly Reshape Our Technological Lives?

“When you can fully charge a smartphone in 10 minutes, when the range of your electric vehicle exceeds 1000 kilometers, when the efficiency of your home photovoltaic system increases by 20%—behind all this, there might be a small silicon carbide or gallium nitride chip working silently.”

In September 2025, at the Third-Generation Semiconductor Industry Development Conference held in Ningbo Qianwan New Area, experts painted an exciting picture: the third-generation semiconductors are surging with a compound annual growth rate of over 40%, and the market size in China is expected to exceed 100 billion yuan this year, becoming a rare growth pole in the global semiconductor industry. From electric vehicles to 5G base stations, from data centers to aerospace, this “energy efficiency revolution” represented by silicon carbide (SiC) and gallium nitride (GaN) is redefining the boundaries of technology.

🔋 1. Why Third-Generation Semiconductors?

Semiconductor technology has developed through three generations:

• First Generation: Represented by silicon (Si) and germanium (Ge), forming the basis of traditional integrated circuits.

• Second Generation: Represented by gallium arsenide (GaAs) and indium phosphide (InP), mainly used in optoelectronics and RF fields.

• Third Generation: Represented by silicon carbide (SiC) and gallium nitride (GaN), featuring wide bandgap properties suitable for high power, high frequency, and high temperature applications.

The Core Advantages of Third-Generation Semiconductors:

1. Higher Energy Conversion Efficiency: Silicon carbide devices can reduce energy consumption in electronic devices by over 60%.

2. Higher Operating Frequency: Gallium nitride devices can operate at frequencies over 10 times that of traditional silicon-based devices.

3. Smaller Size: Devices can be significantly reduced in size for the same power output.

4. High-Temperature and High-Pressure Resistance: Silicon carbide devices can operate at temperatures exceeding 600°C.

Industry Quote:

“If silicon semiconductors are ordinary railways, then third-generation semiconductors are high-speed rail—faster, stronger, and more efficient!” 🚄

📊 2. Application Scenarios: The Ubiquitous “Energy Efficiency Revolution”

1. Electric Vehicles: The “Ender of Range Anxiety”

• Silicon carbide power modules used in main drive inverters can improve range by 5%-10%.

• Gallium nitride devices in onboard chargers can increase charging efficiency to 98%.

• 800V High-Voltage Platform has become standard for high-end electric vehicles, with silicon carbide as the key technology support.

2. 5G Communication: The “Slimming Technique” for Base Station Power Consumption

• Gallium nitride RF devices have become the core of 5G base stations, with output power reaching 500-700W.

• Compared to traditional technologies, the size is reduced to 1/4-1/7, and power consumption is reduced by 30%.

• China has surpassed 2.84 million 5G base stations, leading globally.

3. Photovoltaic Energy Storage: The “Amplifier” of Green Energy

• Silicon carbide power devices used in photovoltaic inverters can improve system efficiency by 1%-2%.

• Switching losses are reduced by 85% compared to traditional silicon-based IGBTs.

• By 2025, even if only 2% of solar systems adopt silicon carbide, an additional 10GW of power could be generated.

4. Aerospace and Defense: The “Adapters” to Extreme Environments

• Gallium nitride devices used in radar systems significantly enhance detection distance and accuracy.

• Radiation-resistant characteristics make them suitable for space applications, providing power for satellites and spacecraft.

Engineer’s Fun Comment:

“Silicon carbide and gallium nitride are like the ‘special forces’ of the semiconductor world, going wherever the environment is harsh!” 💂♂️

🏭 3. The “Breakthrough Path” of Domestic Leading Enterprises

Although international giants like Infineon and STMicroelectronics still lead in technology, Chinese companies are rapidly catching up in the third-generation semiconductor field, forming a complete industrial chain from materials, devices to applications.

1. Leading Companies in Silicon Carbide

• Tianke Advanced: The global market share of conductive silicon carbide substrate materials has jumped to second place, achieving breakthroughs in the liquid-phase method for producing high-quality low-defect 8-inch crystals.

• China Resources Microelectronics: The first domestic 6-inch commercial SiC wafer production line has officially started mass production, launching industrial-grade SiC diode series products.

• San’an Optoelectronics: Successfully launched the 1200V 80mΩ SiC MOSFET, currently in the sample testing phase.

• Silicon Microelectronics: Launched the first domestic 8-inch SiC power device chip manufacturing production line project in Xiamen.

2. Leading Companies in Gallium Nitride

• Innoscience: Achieved outstanding results in gallium nitride power devices, with its shipment volume surpassing Power Integrations in 2021, becoming the number one in the field.

• Wentai Technology: Expanded its capacity in the third-generation semiconductor field by acquiring the UK’s Newport Wafer Fab wafer factory. Launched a 650V silicon-based gallium nitride power device (GaN FET), which has passed AECQ certification testing and achieved mass production.

• Siwei Electronics: Achieved total revenue of 306 million yuan in the second quarter of 2025, a year-on-year increase of 8.81%.

3. Companies with Full Industrial Chain Layout

• Yangjie Technology: Achieved total revenue of 1.876 billion yuan in the second quarter of 2025, a year-on-year increase of 22.02%; net profit was 305 million yuan.

• BYD: The world’s first and the only domestic power semiconductor company to achieve mass production of SiC three-phase full-bridge modules in electric vehicle motor drive controllers.

Investor Comment:

“The question is not whether to invest in third-generation semiconductors, but which company to invest in and how much!” 📈

📈 4. Technological Frontiers: Latest Developments in 2025

1. Breakthroughs in 8-Inch Silicon Carbide Substrates

Many domestic companies are actively advancing the research and production of 8-inch silicon carbide substrates. Tianke Advanced has achieved breakthroughs in the liquid-phase method for producing high-quality low-defect 8-inch crystals.

2. Hybrid Integration Technology

The industry is developing hybrid integration technologies such as GaN-on-Si and GaN-on-SiC, balancing performance and cost.

3. Advanced Packaging Technology

To improve heat dissipation performance and power density, companies are developing silver paste sintering technology and copper wire bonding technology, suitable for high-temperature and high-frequency applications.

🌐 5. Global Perspective: China’s Position in Global Competition

Although China’s third-generation semiconductor industry is developing rapidly, there is still a certain gap compared to global giants.

Technical Aspects: In some high-end technologies and advanced processes, such as 8-inch silicon carbide wafer manufacturing, international manufacturers are still in the lead. Foreign mainstream manufacturers have begun to actively layout 8-inch substrate, epitaxy, and device production capabilities, while domestically, development is still focused on 6-inch, with 8-inch mostly in planning and research stages.

Industry Scale and Market Share: Although the domestic industry scale continues to expand, it is still relatively small compared to international giants, with a low market share. In the global third-generation semiconductor market, companies in Europe, America, and Japan dominate in core components and high-end equipment.

R&D Investment: In the second quarter of 2025, leading Chinese companies continued to increase R&D investment. Wentai Technology’s R&D expenses reached 1.472 billion yuan, with San’an Optoelectronics and Yangjie Technology ranking second and third respectively.

Industry Quote:

“We don’t need to lead in every field, but we must have our own ‘killer app’ in key areas!” ⚔️

🚀 6. Future Outlook: Challenges and Opportunities

Challenges Faced:

1. Material Defect Control: The slow growth rate and high defect density of silicon carbide and gallium nitride crystals remain to be solved.

2. Cost Pressure: The cost of third-generation semiconductor products is still higher than that of traditional silicon-based products, requiring further cost reduction.

3. Industry Chain Coordination: Domestic industry chain coordination is still not tight enough, with issues such as information asymmetry and insufficient cooperation between upstream and downstream enterprises.

4. Talent Shortage: There is a severe shortage of high-end technical talent, especially in material growth and device design fields.

Development Opportunities:

1. Strong Policy Support: The Ministry of Commerce has issued relevant measures to support the development of third-generation semiconductor technology innovation centers.

2. Strong Market Demand: The market demand for electric vehicles, 5G communication, and photovoltaic energy storage continues to grow.

3. Continuous Technological Breakthroughs: Domestic companies are continuously achieving breakthroughs in 8-inch substrates, MOSFET devices, and other fields.

4. Accelerated Domestic Substitution: Against the backdrop of Sino-U.S. technological competition, the process of domestic substitution is significantly accelerating.

Future Trends:

• By 2026, the market size of silicon carbide power components is expected to reach $5.33 billion, with a compound annual growth rate of 35%.

• The gallium nitride semiconductor device market is projected to grow at a compound annual growth rate of 21.6% during the forecast period of 2025-2029.

• 8-inch silicon carbide substrates will become mainstream, with costs further reduced.

• Silicon carbide and gallium nitride composite technology will become a new direction.

💎 Conclusion: The “Breakthrough Path” of China’s Third-Generation Semiconductors

At the Third-Generation Semiconductor Industry Development Conference in Ningbo Qianwan New Area in September 2025, an expert remarked:

“Ten years ago, we were still discussing whether third-generation semiconductors were ‘concept hype’; today, we have begun to achieve a lead in some areas.”

This perhaps reveals the essence of the development of China’s semiconductor industry:

All breakthroughs in cutting-edge technology will ultimately return to the persistence of long-termism;

All ‘bottleneck’ dilemmas,

will eventually transform into new opportunities through innovation and iteration. 🔬

As an industry veteran said:

“There are no shortcuts in the semiconductor industry; we can only catch up step by step.”

With the continuous support of national policies and the joint efforts of the industry, China’s third-generation semiconductor industry is ushering in a historic development opportunity. Driven by silicon carbide and gallium nitride, a profound “energy efficiency revolution” is quietly taking place, which will reshape our way of life and provide the possibility for China’s semiconductor industry to “overtake on the curve.”