In 2025, the microelectronics industry is witnessing a major shift toward wide‑bandgap (WBG) semiconductors — especially Silicon Carbide (SiC) and Gallium Nitride (GaN) — as demand accelerates for high‑efficiency power devices, EVs, renewable‑energy systems, and high‑frequency telecommunications infrastructure. According to recent market forecasts, the global compound‑semiconductor materials market — which includes SiC, GaN and related materials — is projected to grow at a compound annual growth rate (CAGR) of 7.2% from 2025 through 2032, reaching roughly US $63.0 billion by that year.
The transition toward WBG materials is being driven by several converging pressures. First, power‑efficiency demands in sectors such as electric vehicles (EVs), renewable‑energy inverters, industrial power supplies, and data‑center power systems are rising rapidly. SiC and GaN offer significant advantages over traditional silicon: higher breakdown voltages, lower on‑resistance, faster switching speeds, and better thermal stability — which translate directly into energy savings, smaller passive components, and more compact designs.
Second, generative AI, data‑centre buildouts, and infrastructure upgrades (e.g., 5G/6G base stations) are creating surging demand for power electronics capable of handling high voltages, high frequencies, and reliable long‑duration operation. As one recent industry survey puts it: WBG power semiconductors are a “key enabler” for next‑gen power delivery and efficiency in both computing and energy‑conversion applications.
Notably, the transition is not limited to niche or premium applications. The use of SiC and GaN is expanding into mainstream automotive EV powertrains, residential energy storage systems, renewable‑energy inverters, and even industrial motor drives. As a result, manufacturing capacity for WBG materials is scaling up accordingly. Recent announcements indicate that some fabs are adding or optimizing SiC‑based processes capable of handling high‑voltage MOSFET fabrication, targeting deployments as early as 2026.
This surge brings significant implications for microelectronics buyers, integrators, and system designers. For one, sourcing strategies must increasingly account for WBG components — not just as a specialized option, but as a core part of BOM planning for power‑sensitive or high‑performance systems. Designers may need to re‑architect power delivery systems, reevaluate thermal management, and consider the long‑term reliability and cost‑benefit trade‑offs of WBG devices versus silicon-based solutions.
At the supply‑chain level, the growing demand for SiC and GaN could strain availability of high‑purity substrates, epitaxy wafers, and specialized fabrication capacity. That makes early engagement with vendors, long‑term sourcing agreements, and inventory planning more important than ever.
Furthermore, for suppliers and distributors of microcomponents, this trend signals a growing opportunity: companies that build expertise, relationships, and inventory around WBG semiconductors are likely to be in high demand — especially among customers targeting EVs, renewable energy, AI infrastructure, and high-frequency communications.
In short, 2025 may well represent a tipping point for wide‑bandgap semiconductors. What was once a niche market segment is rapidly becoming mainstream — reshaping the power‑electronic, automotive, energy, and telecom industries. For stakeholders across the microelectronics value chain, adapting to and investing in SiC and GaN technologies now could yield strategic advantage over the next decade.
