Intelligence Feed event · Equity · 2026-10-07

    Power IC and discrete markets project 6-7% CAGR expansion on AI datacenter GaN and SiC demand

    Question

    Power IC and discrete markets project 6-7% CAGR expansion on AI datacenter GaN and SiC demand

    Direct answer

    Industry forecasts project substantial expansion across power semiconductor segments through 2034, with Power ICs expanding at a 7.4% CAGR to $21.58 billion and Power Discretes growing at a 6.4% CAGR to $24.46 billion. The structural drivers center on elevated thermal and power conversion demands in next-generation AI server clusters and electric mobility, accelerating the transition from legacy silicon MOSFETs to higher-efficiency Silicon Carbide and Gallium Nitride devices.

    Original publisher
    Market Ontology
    Evidence through
    2026-10-07
    Published
    2026-10-20
    Revision
    1 · 2026-10-20

    Cite as: Market Ontology, “Power IC and discrete markets project 6-7% CAGR expansion on AI datacenter GaN and SiC demand”, revision 1, evidence through 2026-10-07. https://marketontology.com/market-events/2026-10-07/power-ic-and-discrete-markets-project-6-7-cagr-expansion-on-ai-datacenter-gan-an-9edec3

    EQUITY
    Power IC and discrete markets project 6-7% CAGR expansion on AI datacenter GaN and SiC demand
    Industry forecasts project substantial expansion across power semiconductor segments through 2034, with Power ICs expanding at a 7.4% CAGR to $21.58 billion and Power Discretes growing at a 6.4% CAGR to $24.46 billion. The structural drivers center on elevated thermal and power conversion demands in next-generation AI server clusters and electric mobility, accelerating the transition from legacy silicon MOSFETs to higher-efficiency Silicon Carbide and Gallium Nitride devices.
    ONSTM
    Impact
    62
    OCT 7
    SIG
    80%
    ONSTM
    Power IC and discrete markets project 6-7% CAGR expansion on AI datacenter GaN and SiC demand
    Industry forecasts project substantial expansion across power semiconductor segments through 2034, with Power ICs expanding at a 7.4% CAGR to $21.58 billion and Power Discretes growing at a 6.4% CAGR to $24.46 billion. The structural drivers center on elevated thermal and power conversion demands in next-generation AI server clusters and electric mobility, accelerating the transition from legacy silicon MOSFETs to higher-efficiency Silicon Carbide and Gallium Nitride devices.
    → Escalating kilowatt-per-rack power densities in artificial intelligence compute installations force a mix shift toward higher-efficiency Gallium Nitride and Silicon Carbide power discretes from suppliers including ON Semiconductor and STMicroelectronics.
    Impact
    Industry forecasts project substantial expansion across power semiconductor segments through 2034, with Power ICs expanding at a 7.4% CAGR to $21.58 billion and Power Discretes growing at a 6.4% CAGR to $24.46 billion. The structural drivers center on elevated thermal and power conversion demands in next-generation AI server clusters and electric mobility, accelerating the transition from legacy silicon MOSFETs to higher-efficiency Silicon Carbide and Gallium Nitride devices.
    Affected
    ONSTM
    Transmission
    Escalating kilowatt-per-rack power densities in artificial intelligence compute installations force a mix shift toward higher-efficiency Gallium Nitride and Silicon Carbide power discretes from suppliers including ON Semiconductor and STMicroelectronics.

    How this development reaches the affected companies

    AssetExposure and channelDirectionEvidence
    ONpower component content expansion in AI data centers and automotive systemsUp1-3mON Semiconductor is named as a primary market participant in expanding SiC/GaN discrete power applications.
    STMwide-bandgap power semiconductor demand growthUp1-3mSTMicroelectronics is explicitly identified as an operating supplier in the expanding Power IC and Discrete segments.

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    What happened next

    Price follow-up pending — no stored daily closes for these assets yet.

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