AI Server Demand Fuels Opportunities in Third-Generation Semiconductors

Soaring power consumption by AI servers and GPU computing is pushing data-center rack power toward 1 MW, exposing conventional power systems to severe energy losses. Third-generation semiconductor materials silicon carbide (SiC) and gallium nitride (GaN), which offer high-voltage tolerance, high-frequency switching and strong heat dissipation, have become critical to overcoming this bottleneck. Taiwanese upstream materials and wafer manufacturers including GlobalWafers and Episil Technologies are actively upgrading power systems to capture global business opportunities.

Episil Technologies posted cumulative consolidated revenue of NT$3.33 billion in the first half of 2026, up 25.07% year on year. Its new 8-inch SiC production line, built with a strategic partner, is expected to enter commercial mass production in the second half of 2026. GlobalWafers also announced a long-term partnership with Micron in July 2026, securing $500 million from the U.S. chipmaker to support its new Texas plant. The companies signed a 10-year supply agreement targeting opportunities in AI and advanced manufacturing processes.