While carmakers could succeed by playing the role of an ‘integrator’, GaN or SiC developers could be a ‘technology disruptor’ offering core technology expertise, says Lux Research.
Power electronics based on gallium nitride (GaN) and silicon carbide (SiC) have the potential to significantly improve efficiency. But since these materials are higher-cost, companies need market-specific strategies in order to succeed as these new wide-bandgap (WBG) materials claim market share from silicon-based semiconductors, according to Lux Research.
Carmakers would succeed by playing the role of an ‘integrator’, by vertically integrating upstream in the value chain to power modules, while a GaN or SiC developer would do well to pursue a ‘technology disruptor’ strategy, offering core technology expertise to solar inverter makers and incumbent system integrators like ABB.
“Fast-growing markets like automotive and solar inverters are unforgiving when it comes to players without strong business and strategy,” said Pallavi Madakasira, Lux Research Analyst and the lead author of the report titled, ‘Strategic Playbook for Power Electronics: Lessons from the IC Sector Evolution.’
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