East Asian Technology Intelligence
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This story ran in Issue #89, alongside three other stories.
Infineon rose to second place in the GaN power device market. This rise shows a deep shift in the power chip supply chain. High demands from AI data centers are driving this change. The market is turning toward big-scale efficiency, and GaN tech is now a key factor. The GaN market will grow 63% to nearly $600 million in 2025. Data centers are now the main force shaping power electronics. They have replaced consumer and car uses as the main drivers of new tech.
Local Japanese media, like *EE Times Japan*, focus on tech details and rivalries. They see this growth as proof of what GaN can do. It works well for high-density power delivery, which makes it more than just a financial story. The Japanese electronics industry has a long history in power chips. It knows this shift is key to staying competitive in global supply chains. This rise in GaN use lets Japanese firms use their skills in materials and precise making. Yet, they still face tough competition from Chinese rivals.
China’s Innoscience holds its lead with a 31% market share. Its quick rise shows a pattern we see in other AI hardware. These firms use fast growth in capacity and tight control of their supply chains. This is China’s way to scale a basic part for strategic growth. They use local demand and state aid to build market lead from the start. Their success is not just about low prices. They want to win a vital market before Western and Japanese firms can adapt.
Legacy firms cannot just carry their old silicon strengths over to GaN. The materials, factory steps, and design rules are very different. These differences lessen old advantages. Infineon made a big jump, but Innoscience kept its lead. This fact suggests that agile, pure-play GaN makers can capture new demand better as AI grows. Western firms must not ignore the Chinese plan to win market share through early, fast growth.
ROHM and Fuji Electric plan to grow their GaN-on-SiC factory capacity. These Japanese firms show where the next high-power GaN will be built. Major tech brands like Supermicro and Dell are putting GaN into their AI servers. Their choices will show which chip vendors perform best at scale. Finally, keep track of the yield rates from main GaN factories. Stable, high-volume production remains the true test of success in this vital market.
For the wider picture, see Japan Semiconductor Ecosystem.
This story appeared in AsiaAI.FYI Issue #89.
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