INDUSTRY UPDATE 2025 Review: WBG and AI remain as power electronics industry drivers

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In 2025, the power electronics industry has responded to continued power demand growth, particularly in the US, with ongoing innovation in GaN and SiC wide bandgap semiconductors, higher functional integration, and increasing AI penetration. This article shows exactly how these technologies are improving power electronics performance.

According to an International Energy Agency (IEA) mid-year update for 2025, strong global electricity growth is expected in 2025 and 2026 – increasing by an annual average of 3.3% in 2025 and 3.7% in 2026. Although lower than 2024’s 4.4%, these figures are still some of the highest rates of the last decade.

High growth in US energy demand, and lower growth in the EU

Despite the IMF downgrading their global GDP growth outlook, strong demand upturns from industries, air conditioning (AC) and data centers, as well as significant strides in electrification, are expected to support growth in electricity use through 2026ⁱ .

A major driver of this demand growth in the United States is the expansion of data centers, which consumed around 180 TWh of electricity in 2024, according to the IEA’s Energy and AI report. Investment in artificial intelligence and data centers continues to accelerate, with companies such as Meta, Amazon, Alphabet and Microsoft committing to spend USD320 billion in 2025, up from USD230 billion the previous year. Data center electricity demand is expected to steadily rise through 2030, with consumption projected to increase by approximately 240 TWh relative to 2024 levels.

Emerging large industrial loads in high technology manufacturing sectors such as semiconductor fabrication and battery production are also contributing to electricity demand growth.

After a modest rebound in 2024 following two consecutive years of significant decline, demand in the European Union is forecast to continue rising, albeit at a moderate pace as the industrial sector has still to recover.

Power electronics industry response

Against this background, 2025 has seen the power electronics industry respond to this growing demand in three key areas:

• Ongoing innovation in wide bandgap semiconductors, particularly gallium nitride (GaN) and silicon carbide (SiC), is delivering faster switching speeds and lower energy losses, leading to more efficient power systems.

• Integration of power management functions into single modules or chips – which sometimes comprise a mix of GaN and SiC technologies – is reducing the size and complexity of electronic systems, improving reliability and reducing manufacturing costs.

• Integrating AI into power electronics is set to revolutionize the sector, offering several advancements for 2025 and beyondⁱⁱ . Areas where improvements are expected include predictive maintenance, real-time machine health monitoring, and automation of transient operations such as start-up and shut down.

• Generative AI and Agentic AI will synthesize plans and recommendations based on vast datasets, and adapt strategies in real time, broadening industrial automation possibilities.

Below, we explore these three aspects of power electronics innovation in more detail. We focus particularly on wide bandgap semiconductor technology, as it is so central and so important to the industry and its future. However, WBG semiconductor integration also deserves (and gets) a mention in its own right – as does AI, because power electronics is no different from the rest of our digital world in feeling its rapidly-growing influence.

SEMICONDUCTOR INDUSTRY

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Why bandgap width is dominating today’s power electronics industry

To explain why SiC and GaN are delivering such a significant impact, we look first at the difference between WBG and conventional semiconductors, and the advantages that this creates. Then we compare SiC and GaN implementations of WBG technology and their relative advantages. Next, we see how SiC and GaN are being deployed across various key power semiconductor device types, and, in turn, how these devices are improving or extending their roles across applications and industries.

Conventional and wide bandgap devices

A material’s bandgap refers to the amount of energy needed to lift an electron from the valence band, where it is bound to an atom, to the conduction band, where it is free to move when subjected to electrical or thermal energy.

Conductors have an extremely narrow bandgap, so electrons can flow freely, while insulators have a very high bandgap, which inhibits electron flow and provides insulation properties. Between these extremes lie semiconductors, which are characterized by the size of their bandgaps.

Conventional semiconductors such as silicon (Si) and germanium (Ge) have a narrow bandgap, typically of 1 eV or below. This means that they can easily be excited into conduction at room temperatures, so they have long been used – and are still in use – for transistors, diodes, and other semiconductor devices. However, they have limited stability under high temperatures and voltages, and have low carrier mobility, which can affect the performance of high-speed devices, potentially impacting operational speed and efficiency.

However, recent years have seen a steady growth in wide bandgap alternatives, particularly using materials such as silicon carbide (SiC) and gallium nitride (GaN). This is due to significant improvements in the quality of materials used, device design, and production techniques. These have led to increased material performance, greater device yields, and lower production costs – and all these factors contribute to the devices’ improving commercial viability.

This has brought us to 2025’s landscape, where we are seeing that power electronics is no longer confined to specialist applications; its influence now spans mainstream areas such as electric vehicles, renewable energy systems, industrial automation, data-center infrastructure and advanced consumer equipment. These sectors all share the need to move energy more efficiently and at higher power densities.

WBG generic advantages

Wide bandgap semiconductors allow devices to operate at much higher voltages, frequencies, and temperatures than conventional narrow bandgap types, while reducing power loss. WBG devices’ high temperature tolerance, at 300°C or more, means that they can be operated at much higher power levels under normal conditions. Additionally, most wide bandgap materials have a much higher critical electrical field density; around ten times that of conventional semiconductors. Combined, these properties allow them to operate at much higher voltages and currents. Also, high free electron velocities enable higher switching speedsⁱⁱⁱ .

COMPARISON

Battle of SiC vs GaN power modules

SiC vs GaN

Both materials enable higher efficiency, smaller devices, and improved thermal performance, but their relative merits diverge, optimizing them for different applications. GaN represents speed and compactness, while SiC represents high voltage and endurance. Choosing the right material depends on the application, but future devices will increasingly integrate the strengths of both .

Compared with an Si bandgap of ~1eV, GaN has a bandgap of ~3.4eV, while SiC’s is slightly lower at ~3.2eV. Both can operate at higher temperatures and voltages. However, GaN offers significantly higher electron mobility, at ~2000 cm²/V·s compared to SiC’s ~900 cm²/V·s, making it superior for fast switching and high-frequency applications.

Yet SiC outperforms GaN in terms of thermal conductivity, giving it better heat dissipation and stability under high power loads. SiC is also more robust under sustained high-voltage stress.

Advantages of GaN

• High-speed switching: GaN transistors switch up to 10× faster than silicon MOSFETs and 100× faster than IGBTs.

• Compact design: High power density enables smaller, lighter devices, ideal for chargers, drones, and telecom equipment.

• Efficiency: GaN achieves >95% efficiency in fast chargers and RF systems.

• Cost-effectiveness: GaN-on-silicon manufacturing can reduce costs compared to SiC, especially for lower-voltage devices^v

Advantages of SiC

• High-voltage capability: SiC devices can handle 1.2–10 kV, making them indispensable for electric vehicles, grid converters, and renewable energy systems.

• Thermal resilience: SiC operates reliably up to 600°C, far beyond GaN’s ~500°C, reducing cooling requirements.

• Efficiency at scale: SiC inverters improve EV range by 5–10% and enhance solar power conversion.

• Reliability: SiC’s superior thermal conductivity and endurance make it ideal for industrial and automotive-grade certification^vi

In essence, GaN represents speed and compactness, while SiC represents endurance and high-voltage robustness. GaN is the material of choice for fast, lightweight, and efficient consumer and telecom applications, while SiC dominates automotive, renewable energy, and industrial power systems. Increasingly, hybrid modules combining GaN’s speed with SiC’s endurance are emerging, offering the best of both worlds.

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Practical benefits of WBG innovation

The above shows how WBG technology brings generic improvements to power systems design, but how are these being implemented in real world devices?

The route to delivery comprises a wide range of components which are revolutionizing power electronics, radio frequency (RF), optoelectronics, and high temperature and harsh environment electronics.

In power electronics, SiC and GaN power MOSFETs are used in high-efficiency power converters, inverters, and motor drives, while SiC Schottky diodes are providing fast switching and low losses in rectifiers and power supplies. Within EVs and renewable energy systems, SiC transistors are replacing silicon IGBTs.

For radio frequency applications, GaN HEMTs (High Electron Mobility Transistors) are being widely used in RF amplifiers for 5G base stations, satellite communications, and military radar. In optoelectronics, designers are using GaN, Zinc Oxide (ZnO), and Aluminum Nitride (AlN) diodes for short-wave (blue, green, and UV) emission.

Newly introduced SiC and GaN devices

In January 2025, Guerrilla RF released the first of a new class of GaN on SiC HEMT dice – designed for high-performance RF applications - to provide up to 50 W of saturated power for customers within the wireless infrastructure, military, aerospace and industrial heating markets who are looking to integrate bare die within their own custom monolithic microwave integrated circuits (MMICs)^vii .

Each device offers exceptional flexibility, supporting either 50 V or 28 V supply rails while covering multiple octaves of operational bandwidth for continuous wave, linear, and pulsed modulation schemes. When using a 50 V rail, the GRF0030D is rated for 50 W (PSAT) operation from DC to 6 GHz, with gain varying from 13.5 dB to 23.7 dB. The device also supports 28 V operation while delivering up to 27.5 W of saturated output power.

Similarly, the GRF0020D variant provides up to 30 W and 19 W of saturated power when using 50 V and 28 V rails, respectively. This slightly lower power HEMT supports frequencies up to 7 GHz while providing 13.8 dB to 24.3 dB of gain. As with all of Guerrilla RF’s bare die offerings, each device is 100% DC production tested to ensure KGD (known good die) compliance.

According to market research from Yole Group, the RF GaN device market is expected to grow from USD1.3B in 2022 to USD2.7B by 2028. This growth is driven by expansion in key segments including telecom infrastructure (5G and point-to-point systems), military, and satellite communications, with projected compound annual growth rates of 10%, 13%, and 18%, respectively. Additionally, GaN on SiC variants are expected to dominate the market for the next decade.

In the company’s view, GaN technology is critical for next-generation, high-performance, energy-efficient RF systems and devices.

SiC-based sensors and ICs, which can withstand elevated temperatures, are found in avionics and military hardware where reliability under extreme conditions is critical.

NASA’s Glenn Research Center in Cleveland, US^viii , is developing silicon carbide (SiC) to enable intelligent sensing and control electronic subsystems into extreme aerospace (including 600°C [1,112°F]—hot enough to glow red) that are beyond the physical capabilities of conventional silicon technologies. Silicon carbide’s ability to function in high temperature, high power, and high radiation conditions enables important performance enhancements across aircraft, spacecraft, power, automotive, communications, and energy production industries.

SiC is also facilitating extremely advanced sensor research: The HUN-REN Wigner Research Center for Physics, the Beijing Computational Science Research Center, the University of Science and Technology of China and other institutes recently introduced a new quantum sensing platform that utilizes silicon carbide (SiC)-based spin qubits, which store quantum information in the inherent angular momentum of electrons. This system operates at room temperature and measures qubit signals using near-infrared light^ix .

SemiQ is using SiC MOSFET technology in their QSiC 1200 V Gen3 SiC MOSFET modules^x , released in April this year as solutions for ultra-efficient, high-performance, and high-voltage applications. This family of co-packaged 1200 V SOT-227 MOSFET modules is based on the company’s third-generation SiC technology.

In addition to smaller die sizes, these highly rugged and easy-mount SiC devices offer faster switching speeds and reduced losses. The family comprises six devices with an R_DSon range of 8.4 to 39 mΩ, with one unit having a switching time down to 67 ns.

The COPACK MOSFETs with Schottky barrier diode provides minimal switching losses at high junction temperature due to the low turn on switching losses.

SemiQ is targeting the robust SiC MOSFET modules at applications including solar inverters, energy storage systems, battery charging, and server power supplies. All devices have been screened with wafer-level gate-oxide burn-in tests and tested beyond 1400 V, with avalanche testing to 330 mJ (R_DSon = 39 mΩ) or 800 mJ (R_DSon = 16.5 or 8.4 mΩ).

POWER ELECTRONIC TRENDS

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Highly integrated and modular WBG power systems

However, as well as improvements to basic components, there has been a notable shift towards highly integrated and modular power electronic systems. Advanced packaging techniques now allow for the integration of multiple power stages, controllers, and passive components into single modules or even onto a chip. This trend is reducing system size and complexity, enhancing reliability, simplifying production, and facilitating rapid deployment, particularly in electric vehicles, data centers, and distributed energy resources.

This type of high integration has been highlighted in a March 2025 announcement from Cambridge GaN Devices (CGD). The release describes a technology breakthrough that enables GaN to address inverters for 100 kW+ EV powertrain applications^xi .

The company’s Combo ICeGaN combines smart ICeGaN HEMT ICs and IGBTs in the same module, or IPM, maximizing efficiency and offering a cost-effective alternative to expensive silicon carbide (SiC) solutions.

CGD comments: “Today, inverters for EV powertrains either use IGBTs which are low cost but inefficient at light load conditions, or SiC devices which are very efficient but also expensive. Our new Combo ICeGaN solution will revolutionize the EV industry by intelligently combining the benefits of GaN and silicon technologies, keeping cost low and maintaining the highest levels of efficiency which, of course, means faster charging and longer range. We are already working with Tier One automotive EV manufacturers and their supply chain partners to bring this technology advancement to the market.”

The proprietary Combo ICeGaN approach uses the fact that ICeGaN and IGBT devices can be operated in a parallel architecture having similar drive voltage ranges (e.g. 0-20 V) and excellent gate robustness. In operation, the ICeGaN switch is very efficient, with low conduction and low switching losses at relatively low currents (light load), while the IGBT is dominant at relatively high currents (towards full load or during surge conditions).

Combo ICeGaN also benefits from the high saturation currents and the avalanche clamping capability of IGBTs and the very efficient switching of ICeGaN. At higher temperatures, the bipolar component of the IGBT will start to conduct at lower on-state voltages, supplementing the loss of current in the ICeGaN. Conversely, at lower temperatures, ICeGaN will take more current. Sensing and protection functions are intelligently managed to optimally drive the Combo ICeGaN and enhance the Safe Operating Area (SOA) of both ICeGaN and IGBT devices.

ICeGaN technology allows EV engineers to enjoy GaN’s benefits in DC-to-DC converters, on-board chargers and potentially traction inverters. CGD expects to have working demos of their economical Combo ICeGaN at the end of this year.

AI APPLICATIONS

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Building artificial intelligence into power electronics

Throughout 2025, the power electronics industry has continued to be influenced by further developments in SiC, GaN, and integrations involving either or both materials. Unsurprisingly, though, the impact of AI is also growing – but in two directions. While modern AI systems are introducing new technologies for improving energy systems design and implementation, they are also creating massive demand for electrical power. This interdependent relationship was explored in a session titled ‘Power for AI and AI for Power’ at the IEEE Power Electronics Society (PELS) Future of Electronic Power Processing and Conversion (FEPPCON XII)^xii .

At a practical level, the Fraunhofer Institute is conducting continued development of intelligent power electronics with additional AI functionality, which they refer to as cognitive power electronics (CPE).

These "perceptive systems" are equipped with sensors to detect various physical parameters and embedded electronics to record and analyze data in real time.

One use case of CPE is electrical drive technology, where the drive inverter is modified and its electrical parameters are used for predictive analysis. The drive becomes an integrated intelligent system that uses machine learning methods to make predictions and react autonomously to internal and external influences and event^xiii.

On a larger scale, many renewable energy sources supply electrical energy as direct current. Energy storage systems and consumers are also mostly DC-based. Intelligently interconnecting them within DC grids reduces AC-to-DC conversions, saving energy. AI-based solutions for smart DC grids are based on learning with sparsely annotated data, sequence-based learning, and mathematical optimization.

The Fraunhofer Institute is also involved with a European project (Ref AI4CSM^xiv ) concerning temperature sensors in EV batteries. These sensors may not measure reliably, for example when a battery measurement point attachment has degraded.

To ensure rapid detection of such dangerous situations, Fraunhofer developed a highly effective, tried-and-tested AI-based solution. The method employs an intelligent algorithm that monitors the condition of conventional temperature sensors, which lack self-supervision capability, and identifies potentially defective sensors. The approach is based on dynamic mode decomposition and utilizes only the data that is already captured by the available sensors in the battery system. Temperature deviations that are far lower than the range of temperatures occurring in the battery system are sufficient for the algorithm to detect defective sensors^xv .

Search the Power & Beyond website for more examples of Fraunhofer’s involvement with power electronic systems research and development.

Into the future

While SiC and GaN innovation will continue, there is also active research into ultra-wide bandgap semiconductors and novel materials, including certain nitrides and compound semiconductors. In theory, these offer even higher voltage tolerance, better thermal conductivity, and improved performance under harsh conditions.

As manufacturing scales, expect more integration of WBG devices into modules, better packaging, and co-design with power electronics, making adoption easier and more widespread — even in cost-sensitive applications.

Integration of large and complex power systems such as within EVs, solar farms, power grids, and data centers, will increasingly rely on AI coordinating many converters. This will lead to higher efficiency at system level as well as at device level.

In the further future, (10 – 20 years) AI will likely lead to power electronics that can design, control, protect and optimize themselves, and communicate with one another for system-level optimization.

References

• ⁱDemand: Global electricity use to grow strongly in 2025 and 2026 – Electricity Mid-Year Update 2025 – Analysis - IEA

• ⁱⁱDigitalisation and AI for Power Systems Transformation 2025 – Power Library

• ⁱⁱⁱWide-bandgap semiconductor - Wikipedia

• ^ivThird-Generation Semiconductors Showdown: GaN vs SiC Performance Analysis - Sapphire Wafer_Silicon Wafer_SIC Wafer_GaAs Substrate_ZnSe Windows_Quartz Glass

• ^vWhy GaN: Benefits of Gallium Nitride & GaN Technology | EPC

• ^vi5 Key Advantages of Silicon Carbide (SiC) in Power Semiconductors

• ^viiGRF0020D-30D_2025_01_16_PR_Final.pdf

• ^viiiSilicon Carbide Electronics and Sensors - NASA

• ^ixQuantum sensor based on silicon carbide qubits operates at room temperature

• ^xSemiQ Launches 1200 V Gen3 SiC MOSFET Modules in SOT-227 Package for Reduced Switching Losses and Improved Thermal Resistance - SemiQ – SiC Schottky Diodes

• ^xiCGD Announces Breakthrough 100 kW+ Technology Enabling GaN to Address $10B+ EV Inverter Market

• ^xiiPower for AI and AI for Power: The Infinite Entanglement Between Artificial Intelligence and Power Electronics Systems | IEEE Journals & Magazine | IEEE Xplore

• ^xiiiThe Perfect Match – (U)WBG Semiconductors and Information Technology are Revolutionizing Power Electronics

• ^xiv AI4CSM - Home

• ^xvCognitive Power Electronics

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