Opening the Valve on a $68 Billion Opportunity

From the electrified drivetrain of an entry‑level hatchback to the multi‑megawatt converter that stitches offshore wind farms to the grid, power semiconductors are the silent workhorses of the energy transition. In 2024 the global Power Discrete and Modules market closed at US $42.73 billion. Momentum is only accelerating: by 2032 analysts project revenues of US $67.84 billion, implying a resilient 6.8 % CAGR for 2025‑2032. That growth will be won not by commodity silicon alone, but by a wave of wide‑bandgap (WBG) devices, new fab footprints, and strategic M&A that together rewrite the cost‑performance curve of power electronics.

Demand Drivers: EV Torque Meets Air‑Con Amperage

A pair of megatrends is straining grids worldwide. First, EV sales are still compounding at >25 % annually. Second—but less widely discussed—cooling demand in tropical and emerging economies is climbing even faster. A recent Reuters analysis calculates that air‑conditioning will add ~1 200 TWh of load to global grids by 2035—roughly 50 % more than the surge expected from AI data‑centres. Efficient inverters built around new SiC and GaN transistors are therefore becoming critical infrastructure rather than niche upgrades.

Why WBG? Physics, Policy and Payback

Silicon carbide (SiC) and gallium nitride (GaN) devices switch up to ten times faster than silicon IGBTs, shrug off 175 °C junction temperatures, and cut conduction losses by 50 % or more. Factor in shrinking passive components and cooling systems, and total system cost often falls despite the higher die price. These hard‑numbers economics—magnified by CO₂ regulations and EV range anxiety—explain why WBG content in a premium BEV inverter has already breached US $800 and is trickling down to mid‑segment cars.

Infineon: Building the “GigaFab” Era

Kulim 3, Malaysia
In August 2024 Infineon flipped the switch on Kulim 3, a €2 billion green‑field fab that is on track to become the world’s largest 200 mm SiC facility. Phase‑1 tooling is qualified; volume ramp of 200 mm CoolSiC wafers begins Q1 2025, backed by €5 billion in pre‑paid customer commitments across automotive and renewables.

kV CoolSiC™ XHP² Modules
The company isn’t only scaling wafers; it is extending voltage ceilings. At the Wide‑Bandgap Developer Forum in March 2025, Infineon unwrapped a 2.3 kV SiC module platform that collapses multilevel wind‑turbine converters into simpler two‑level topologies, promising 1 % higher conversion efficiency and double the power density.

JFET Comeback
A month later Infineon previewed a CoolSiC JFET family aimed at charger and PV micro‑inverter markets—evidence that the company intends to cover every WBG topology instead of betting it all on trench MOSFETs.

STMicroelectronics: Doubling‑Down on Europe

ST’s FY 2025‑27 cap‑ex blueprint reshapes its entire footprint. Headline items include:

• Catania (Italy): First 200 mm SiC line by Q4 2025.
• Agrate (Italy) & Crolles (France): Combined 300 mm silicon capacity to rise from 8 000 to 18 000 wafers/week by 2027.

The program targets “high‑triple‑digit million‑dollar” annual cost savings while adding up to 20 000 wafers/week of fresh WBG and 300 mm silicon capacity. On the product side, ST’s third‑generation 750 V/1200 V SiC MOSFETs sampled in late 2024 are now being designed into mid‑segment EV traction inverters shipping in model‑year 2027 cars.

ROHM: From Fab to Freeway in Toyota’s bZ5

On 23 June 2025, Toyota confirmed that the traction inverter in its new bZ5 (China) crossover BEV uses a ROHM fourth‑generation SiC MOSFET power module manufactured at the HAIMOSIC JV in Shanghai. ROHM’s fifth‑generation line comes online in late 2025, while 6‑ and 7‑gen devices are already in pilot, underscoring the pace at which SiC learning cycles are shrinking.

At APEC 2025, ROHM also demoed TRCDRIVE Pack™, a moulded 2‑in‑1 module platform claiming 50 % smaller stray inductance and integrated current sensing for compact 400 V/800 V traction systems.

onsemi: Silicon Valley’s SiC Powerhouse

Technology Grab: In January 2025, onsemi closed its purchase of Qorvo’s SiC JFET portfolio, adding normally‑off devices up to 1 800 V and unlocking US $1.3 billion of incremental TAM by 2030.

Financial Pulse: Despite walking away from a $6.9 billion bid for Allegro MicroSystems in April, onsemi guided Q2 2025 revenue above consensus on robust Chinese and European EV demand for its EliteSiC products. The firm is now one of the few IDMs with captive 200 mm SiC boule growth, substrate, epi, device and module assembly under one roof.

Mitsubishi Electric: 7th‑Gen IGBT Keeps Silicon Competitive

Not everything is SiC. In February 2025 Mitsubishi released application notes for its 7th‑generation NX‑type IGBT modules, showing 0.2 V lower V_CE(sat) and 7 % lower turn‑off loss versus 6G parts—key for cost‑sensitive industrial drives. High‑speed TH‑series variants push switching to 60 kHz, closing the efficiency gap with entry‑level SiC at a lower $/kW.

Deal Flow & Regional Plays

R&D Frontiers: 200‑mm Goes Global

On the same day Europe and Asia toast new SiC mega‑fabs, Singapore’s A*STAR IME opened the industry’s first open‑access 200 mm SiC R&D line (30 June 2025). The line offers shared process modules from boule to module packaging, lowering the barrier for fab‑light startups to prototype WBG devices.

Supply‑Chain Math: Wafer Shortage or Capacity Glut?

Long‑term wafer agreements such as the 10‑year Renesas‑Wolfspeed deal (scaling to 200 mm substrates once the JP fab is up) signal that the bottleneck is still crystalline SiC, not packaging. Yet short‑term pockets of over‑supply in 150 mm wafers have already emerged as China’s ‘super fabs’ out‑ship domestic demand. Smart OEMs are dual‑sourcing across continents to hedge geopolitical risk.

Market Outlook: Discrete vs Modules

• Discrete devices (diodes, MOSFETs, IGBTs) will keep a 55 % revenue share through 2027, buoyed by low‑ and mid‑power converters.
• Power modules enjoy a steeper 9 % CAGR thanks to EV traction inverters, PV string inverters, and factory automation servo drives.
• By 2032, modules will command 48 % of total market dollars, up from 41 % in 2024, driven chiefly by SiC and high‑current 7‑in‑1 IGBT packages.

Challenges on the Horizon

1. Cap‑ex vs ASP Compression: As WBG fabs proliferate, average selling prices per cm² are falling faster than equipment depreciation.
2. Talent Scarcity: Kulim 3 alone requires 4 000 skilled engineers; global demand for WBG process talent may outstrip supply by 30 % in 2027.
3. Eco‑Footprint: Net‑zero fabs must grapple with the high‑temperature, fluorine‑based chemistries of SiC processing; recycled substrate pilots are underway but remain <5 % of output.

Strategic Playbook for 2025‑2032

• Vertical Integration Wins Margin: Infineon and onsemi prove that owning boule‑to‑module flow captures 15‑20 % extra gross margin per finished device.
• Fab‑Light Can Still Win on Agility: ROHM’s partnership model (HAIMOSIC in China, Semikron‑Danfoss in Europe) shows time‑to‑market can beat cap‑ex heft when IP is world‑class.
• Regionalisation is Real: India’s OSAT push and ABB’s Spain converters highlight a pivot from single‑region supply chains to tri‑policentric footprints (Americas, EMEA, Indo‑Pacific).

Wires, Watts and the Road to $68 Billion

If the 2010s were about adding brains to devices, the 2020s are about adding brawn—moving kilowatts efficiently, cheaply and sustainably. The race toward US $67.84 billion by 2032 will reward companies that master three levers simultaneously:

1. Materials Leadership: Secure SiC, GaN, and next‑gen trench IGBT IP.
2. Manufacturing Agility: Scale 200 mm fabs or form deft foundry/OSAT alliances.
3. System Value: Deliver integrated, software‑defined power stages that reduce BoM and design time.

Those that do will not just ride the energy transition—they will power it.