Industry Insights

China's general servo market rebounded to RMB 23 billion in 2025, with domestic brands capturing over 60% share for the first time — up from under 50% five years ago — while Japanese brands fell from over 50% to about 26%, according to a 2026 industry white paper. In low-voltage inverters, a RMB 29.3 billion market, domestic brands reached 46%, breaking long-standing foreign monopolies.

Local power-device makers are graduating from pure suppliers to strategic partners co-defining products with machine builders: StarPower develops custom IGBT/SiC modules with Inovance, while Silan fields an integrated "MCU + power module + gate-driver IC" portfolio.

Gaps remain at the high end — domestic high-end IGBT/SiC modules still lag in long-term reliability and batch consistency, and SiC cost barriers are slowing adoption in mid-to-low-end equipment, where price wars are squeezing R&D budgets.

onsemi's second price increase of 2026 takes effect today (October 10), covering a broad range of product lines. The company cites persistently rising costs across raw materials, manufacturing, energy and infrastructure — alongside growing demand from power, industrial and datacenter markets. It follows an earlier round of increases in the first half of the year.

This is not an isolated move. 2026 has turned into a broad-based power-semiconductor repricing: Texas Instruments, Infineon and STMicroelectronics have all implemented increases, Renesas has announced its second hike (effective January 2027), and Taiwan suppliers are reportedly planning 10–15% increases on spot products from October.

Behind the cost pass-through sits a genuine demand shift: as AI rack power climbs toward the megawatt range, power architectures are migrating from 48V to 800V HVDC — lifting per-rack content for SiC, GaN and high-efficiency MOSFETs.