As AI pushes data centres to breaking point, some Chinese chipmakers bet on SiC

Chinese chipmaker Basic Semiconductor is moving forward with an IPO in Hong Kong, betting on silicon carbide (SiC) semiconductors to address the power demands of AI-driven data centers. The company joins a national push to dominate next-generation SiC technology, as AI infrastructure upgrades create new opportunities for efficient power solutions.

As AI pushes data centres to breaking point, some Chinese chipmakers bet on SiC Basic Semiconductor is the latest firm in the space to move forward with an IPO Ann Cao /author/ann-cao in Shanghai data centre https://www.scmp.com/business/article/3354407/ai-boom-fuels-us116b-data-centre-investment-asia-pacific-hong-kong-eyes-niche-role?module=inline&pgtype=article energy grids, some Chinese chipmakers are betting on highly efficient silicon carbide SiC https://www.scmp.com/news/china/science/article/3313900/chinas-j-20-stealth-fighters-radar-leap-credited-semiconductors-expert-xu-xiangang?module=inline&pgtype=article semiconductors to help solve the technology sector’s power problem. Basic Semiconductor https://www.scmp.com/business/banking-finance/article/3312087/muyuan-basic-fscom-seer-and-worldwide-file-raise-capital-hong-kongs-ipo-flurry?module=inline&pgtype=article is the latest contender looking to bankroll its expansion after it passed a listing hearing earlier this week in its path to an initial public offering IPO in Hong Kong. Founded in 2016 by graduates from Tsinghua University and the University of Cambridge, the firm is one of China’s few fully integrated device manufacturers in the SiC space, specialising in everything from chip design and wafer fabrication to module packaging. Basic’s expected public debut underscores a broader national push to dominate the next phase of SiC technology. The firm joins peers like Silan Microelectronics and China Resources Microelectronics in a rush to supply next-generation AI infrastructure amid soaring demand. electric vehicles EVs https://www.scmp.com/business/china-business/article/3358193/do-or-die-small-carmakers-china-market-braces-156-new-models-price-war-looms?module=inline&pgtype=article . Now, a major new opportunity is emerging as AI demand drives the need for upgrading data centre power sources. gallium nitride GaN https://www.scmp.com/news/china/science/article/3356321/china-begins-large-scale-delivery-gallium-chips-space-ground-6g-network?module=inline&pgtype=article chips capture 10 to 15 per cent of the power semiconductor architecture, which was slated for mass deployment in 2027, according to research from UBS. Like SiC, GaN is a next-generation compound material that can handle higher voltages than traditional silicon. While UBS analysts said that the global SiC market was currently oversupplied, largely due to aggressive capacity expansion by Chinese firms, they said the transition to 800V architectures in 2027 and 2028 would help absorb some of the excess inventory, supported in part by adoption of the technology by data centres.