The rapid global shift toward electric vehicles (EVs) and clean energy is fueling unprecedented demand for power semiconductors, reshaping supply chains and prompting a wave of investment across the electronics industry.

Over the past year, manufacturers of MOSFETs, IGBTs, and wide-bandgap semiconductors like silicon carbide (SiC) and gallium nitride (GaN) have struggled to keep up with the surge in orders. These components are critical for efficiently converting and managing electrical energy—whether it’s stored in a battery, transmitted through a grid, or used to power an electric drivetrain.

In the EV sector alone, the shift from internal combustion engines to electric propulsion has dramatically increased the number of high-voltage power components per vehicle. Major automakers are not only ramping up EV production but also demanding better performance, smaller footprints, and higher thermal efficiency from their semiconductor suppliers.

Meanwhile, renewable energy systems—including solar inverters, wind turbines, and energy storage solutions—are becoming more sophisticated and widespread. Power semiconductors are at the heart of these technologies, enabling them to operate reliably and with minimal energy loss, even in harsh outdoor conditions.

"Demand is outpacing supply in many areas," said an industry executive from a leading SiC device manufacturer. "We’re seeing customers placing long-term orders two or three years in advance to secure allocation."

To meet the growing need, semiconductor companies are expanding fabrication facilities, accelerating R&D, and investing in new materials. At the same time, startups focused on GaN and SiC innovation are attracting record funding, with an eye toward breaking into mainstream automotive and industrial markets.

This trend is expected to continue well into the next decade, as governments push for stricter emissions targets and more sustainable energy infrastructure. Power semiconductors—once a niche component—are now seen as a cornerstone of the next era of electrification.