AI infrastructure is emerging as a major growth opportunity: Yole Group forecasts a $2 billion market for compound semiconductor substrates used in power electronics by 2031, including data center infrastructure.
The power SiC device market is expected to reach $11 billion by 2031, growing at a 20% CAGR between 2025-2031.
AI data centers and future AI infrastructure: power SiC is enabling next-generations of high-performance power supply.
The industry is undergoing a major transformation, driven by two key trends: more than $30 billion of investments in the global scale to meet growing demands – The transition from 150mm to 200mm manufacturing platform.
China is strengthening its position across the entire value chain, from wafers to devices.
Higher voltages, larger wafers, and broader SiC penetration are driving the next wave of innovation.
Yole Group announces the release of its new annual Power SiC 2026 – Markets and Applications report, providing a comprehensive analysis of the global SiC industry, from materials and wafers to devices, applications, supply chains, and technology developments. Today, artificial intelligence is driving an unprecedented demand for power in data centers. Meeting these requirements will require new power architectures, creating significant opportunities for power SiC technologies. At the same time, electrification continues to transform mobility and energy systems. In this context, SiC plays the strategic role for power electronics. It enables higher efficiency, higher power density, and lower energy losses. As a result, SiC is becoming a key enabler of next-generation digital and energy infrastructure.
Poshun CHIUPrincipal Technology & Market Analyst, Semiconductor Substrates & Materials, at Yole Group
The next phase of power SiC growth will be driven not only by electric vehicles, but also by the accelerating electrification of energy and digital infrastructure.
Covering the 2026–2031 period, Yole Group’s Power SiC 2026 – Markets & Applications report provides an in-depth analysis of market trends, supply chain developments, technology roadmaps, and competitive dynamics across the value chain.
In its latest edition, Yole Group forecasts the power SiC device market to be worth $11 billion by 2031, supported by strong demand from electric vehicles, renewable energy systems, battery storage installations, EV charging infrastructure, and rail transportation, as well as the rapidly evolving AI data center ecosystem. Despite a temporary slowdown in electric vehicle demand during 2024 and 2025, the automotive market is entering a new growth phase. Yole Group’s report highlights the increasing deployment of 800V battery electric vehicles, which require significantly more SiC content than previous platforms.
By 2031, 800V platforms are expected to represent approximately half of global BEV shipments, making automotive the largest contributor to Power SiC revenue over the entire forecast period.
Earlier this year, Yole Group’s Status of the Compound Semiconductor Industry 2026 – Focus on Substrates and Epiwafers report identified AI infrastructure as one of the most promising growth opportunities for compound semiconductors. And SiC is one of the key enablers for the new generations of power supply, which represents the additional growth momentum across the entire SiC supply chain. With power requirements continuing to increase, the industry is working on improving the efficiency of PSU.
The power level of PSU is going far 3 kW; the migration from 48/54 V rack distribution to three-phase sidecar HVDC architectures and, ultimately, to 800 VDC/±400, becomes a necessary step for VDC power architectures designed for AI factories. High-voltage DC architectures are considered as milestones to achieve, as well as SST (solid-state transformer) in the next generations. SiC is well positioned for some reasons besides the outstanding performance in high voltage and high efficiency. The investment across the supply chain in the past years also secure the supply to deal with the surge demand.
Ahmad ABBASPhD, Technology & Market Analyst, Compound Semiconductors, at Yole Group
Power SiC is no longer an automotive-only story. The emergence of AI data centers is creating a new demand driver alongside EVs, renewable energy, and energy storage, making the market more diversified and resilient.
As AI data centers, electrification, and energy transition reshape power infrastructure requirements, power SiC is becoming a critical enabling technology. Yole Group’s Power SiC 2026 report provides the insights needed to understand this rapidly evolving market, anticipate technology shifts, and identify the opportunities ahead.
Poshun Chiu and his team will attend Semicon Taiwan, with a dedicated presentation during the WBG Forum.
