⏎ Words Summary from News
**Chinese chipmakers are betting on silicon carbide (SiC) semiconductors to solve the energy crisis in AI data centres, with Shenzhen-based Basic Semiconductor leading a wave of IPOs.** Basic Semiconductor, founded by Tsinghua and Cambridge graduates, passed a listing hearing for a Hong Kong IPO, positioning itself as a fully integrated SiC device manufacturer. The company joins peers like Silan Microelectronics in a national push to dominate next-generation AI infrastructure, as SiC chips—prized for heat resistance and power efficiency—shift from electric vehicles to data centre power upgrades.</p><p class="summary-lead">**Nvidia’s upcoming 800V Kyber rack configurations, slated for mass deployment in 2027, are expected to drive SiC and gallium nitride adoption to 10-15% of power semiconductor architecture.** While the global SiC market is currently oversupplied due to aggressive Chinese expansion, analysts at UBS predict the transition to 800V architectures will absorb excess inventory. Research firm TrendForce projects China’s SiC power device market could surpass US$6 billion by 2030, with global revenue growing from US$3.7 billion in 2025 to US$11 billion in 2031.</p><p class="summary-lead">**Despite rapid commercialisation—Basic’s SiC products are already in over 80 vehicle models—steep scaling costs keep the company unprofitable, posting a net loss of 335 million yuan on 311 million yuan in revenue.** Chinese firms face an uphill battle against entrenched foreign rivals like Infineon and Wolfspeed, though Basic holds a 2.9% market share in China’s SiC power module market. Aggressive domestic expansion has triggered fierce price wars across SiC products, accelerating industrial integration but squeezing margins.</p><p class="summary-lead">**What to watch next:** Whether Basic’s IPO can sustain investor confidence amid ongoing losses, and if the 2027-2028 transition to 800V architectures will truly absorb China’s SiC oversupply or deepen price competition.
Key Takeaways
- Basic Semiconductor’s Hong Kong IPO underscores China’s strategic bet on SiC to power AI data centres, shifting focus from electric vehicles.
- Nvidia’s 800V rack configurations will be a key catalyst for SiC adoption in data centres by 2027-2028.
- China’s SiC market is oversupplied from aggressive expansion, leading to price wars and unprofitable firms like Basic.
- Global SiC revenue is projected to nearly triple to US$11 billion by 2031, driven by AI and industrial demand.
Insights & Analysis
- China’s SiC push mirrors its earlier dominance in solar and EV supply chains—using scale to drive down costs and capture global market share, even at the expense of short-term profitability.
- The convergence of AI data centre power demands and EV electrification could create a dual-market buffer for SiC, but only if 800V architectures deploy on schedule and price wars don’t cripple domestic innovators.