Power Semiconductors

What it is

Power semiconductors switch large currents in an electric car's inverter, charger and DC converter. The main devices are silicon IGBTs and, increasingly, silicon carbide (SiC) MOSFETs, which waste less energy at high voltage and suit 800V platforms. They are the core of the electric drive system.

Where China stands

Two listed makers show the pressure:

• StarPower (斯达半导, 603290.SH) had flat revenue of ¥1.93bn and a 76.4% fall in net profit to ¥65.0m, which it blames on higher raw material costs and price cuts made last year. Its new-energy revenue fell 16.02%, while its direct supply to overseas electric vehicle makers rose more than 70%, and it says its second-generation SiC modules ship in volume on 400V and 800V drives (2026 interim report, p. 11).
• Silan (士兰微, 600460.SH) had revenue of ¥7.26bn, up 14.6%, and net profit of ¥516m, up 94.8%, but excluding non-recurring items profit rose only 0.67%. Its IGBT and SiC modules and devices for cars and solar earned ¥1.60bn, up about 11%, and its 6-inch SiC line is close to full with an 8-inch line ramping up (2026 interim report, pp. 9, 10, 13).

BYD describes vertical integration across power batteries, storage and power chips, so a large part of China's vehicle demand is met in-house (BYD 2026 interim report, pp. 14, 15). Inovance says higher prices for power semiconductors, among other materials, weighed on its EV business, which makes it a customer of the same chips (2026 interim report, p. 23).

Our view: independent power chip makers are being squeezed in vehicles. StarPower's sales and profit show it, Silan's reported profit growth came largely from investment gains, and the largest carmaker makes its own. The offsets are SiC and overseas customers, where StarPower reports growth, but neither company's filing shows SiC revenue.

What to watch

• SiC volume. Silan expects a large second-half rise in SiC drive module shipments, and StarPower expects a three-level SiC module in volume in 2027 (Silan p. 10, StarPower p. 11).
• Overseas. StarPower's direct overseas auto supply rose over 70%, and it delivers to a European Tier 1.
• New materials. StarPower is also working on GaN modules for 2028 to 2030.