The landscape of China’s semiconductor industry is undergoing a critical pivot as domestic firms move beyond the low-margin consumer electronics sector toward the more lucrative and strategically vital fields of industrial power and electric vehicles (EVs). Chengxin Microelectronics, a subsidiary of the analog chip leader Hynetek, recently unveiled a comprehensive suite of Silicon Carbide (SiC) solutions. This development marks a significant milestone in China’s efforts to master 'third-generation' semiconductors, which are essential for high-power environments like automotive charging and industrial power grids.
By concurrently deploying Gallium Nitride (GaN) for consumer fast-charging and SiC for high-voltage industrial applications, Chengxin Micro is positioning itself as one of the few domestic entities capable of providing a full spectrum of power solutions. While its GaN products already supply major smartphone brands for 20W to 140W fast chargers, the new 650V-800V SiC discrete devices represent a move into the high-stakes automotive and industrial sectors. This dual-track strategy allows the firm to capture the immediate volume of the mobile market while scaling up for the long-term growth of China’s green energy transition.
This technical maturation is being met with significant enthusiasm from China’s institutional investors, who are increasingly prioritizing 'technological self-reliance' in the face of persistent geopolitical friction. Zheng Xiaoxi of Southern Asset Management has emerged as a vocal proponent of this thesis, shifting fund allocations toward firms that form the backbone of the domestic supply chain. Her portfolios now heavily feature equipment giants like NAURA Technology and AMEC, alongside specialized players in the lithography and optical module space, such as Optic-Electronic and Moritex.
As the global semiconductor battleground shifts toward the 'elements' of the periodic table—specifically the wide-bandgap materials like SiC and GaN—China is aggressively subsidizing its domestic ecosystem to reduce reliance on Western power electronics. The success of firms like Hynetek in creating a vertically integrated design capability for power devices suggests that the gap between Chinese domestic capabilities and global leaders is narrowing. This is particularly true in the EV sector, where China’s massive internal market provides a unique laboratory for testing and refining these next-generation power chips.