Taiwan power device makers gain from automotive inventory buildup and order shifting

Automakers, haunted by the 2021 chip shortage, are proactively stockpiling power devices—fueling a rebound for Taiwan, China’s suppliers. This triggers accelerated adoption of SiC/GaN in 800V EV architectures, pressuring upstream substrate and epitaxy capacity while increasing reliance on Japanese and German packaging equipment. Although U.S. CHIPS Act restrictions don’t yet target power semiconductors directly, deepening tech decoupling could force Taiwan, China-based firms into higher compliance costs for customer validation and tool procurement. In response, Infineon and STMicroelectronics may counter with long-term OEM agreements or pre-emptive SiC wafer capacity locks. Over the next 18 months, the market will experience 'structural overheating': automotive-grade devices remain tight, while consumer segments face post-3C-demand correction—opening a critical window for industry consolidation.