According to technology experts, China is expected to experience strong global demand for third-generation semiconductors, particularly those made of wide-band-gap materials such as silicon carbide (SiC) and gallium nitride (GaN). These new-generation chips are suitable for applications in power grids, electric vehicles, and telecom base stations, as they can operate in high-temperature, high-frequency, and high-voltage environments. The global market for SiC power devices is projected to reach $5.33 billion by 2026, while the market for GaN power devices is expected to grow to $1.33 billion in the same period. Analysts believe that China, unaffected by US sanctions in this sector, has the potential to develop its own foundries and achieve self-supply of third-generation chips. The new energy industry, particularly the demand for new energy vehicles, is a key driver for the growth of SiC power devices, which are forecasted to reach $3.98 billion in sales for automotive use by 2026. GaN chips, on the other hand, are mainly driven by consumer electronics, especially fast-charging devices. The rising use of third-generation chips is expected to have a significant impact on the global semiconductor industry and support China’s emission reduction goals. However, China faces challenges in catching up to Western firms in the short term, as key technologies are still owned by foreign companies. Despite this, China has seen significant growth in sales of SiC and GaN power devices and aims to strengthen its self-sufficiency in chip production to meet the demand from various industries. Collaboration agreements, such as the joint venture between STMicroelectronics and Sanan Optoelectronics, reflect efforts to enhance China’s capabilities in manufacturing third-generation chips.
