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MARKET ANALYSIS Growth in power semiconductors to triple by 2030

Editor: Nicole Kareta

According to current estimates by the German industry association ZVEI, growth in the market for power semiconductors will triple by 2030 and thus develop six times as fast as the overall semiconductor market. With a 30 % share of the market for power semiconductors, Europe is currently the world market leader - this position must be strengthened and expanded.

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The demand for chips will also rise sharply for other applications such as sensors and processors.
The demand for chips will also rise sharply for other applications such as sensors and processors.
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Power semiconductors are needed, among other things, to feed renewable energies into the power grid. Electricity generated by wind and solar power is fed into the public grid with the aid of converters with integrated power semiconductors. Power semiconductors are also important for power- and energy-optimized production and for increasing energy efficiency in industry. Last but not least, the rapidly growing market for electric cars relies on power semiconductors.

"Power semiconductors are irreplaceable for the transformation to a climate-neutral and digital society. Demand will increase enormously, especially in the industrial, renewable energy and automotive sectors and in the coupling of these sectors. Without power semiconductors, we will not get green electricity, therefore we will not get green hydrogen, and an all-electric society is not possible," said Wolfgang Weber, Chairman of the ZVEI Board of Management, on the importance of the market.

According to Weber, Europe needs to increase the production of power semiconductors enormously in order to secure value creation and to be able to continue as an industrial location in international competition. "By 2030, about six additional semiconductor factories would have to be built in Europe to just maintain the current position of the power semiconductor market," he said. Today's European market leaders would have to at least triple their production in less than 10 years," Weber said.

The demand for chips will also rise sharply for other applications such as sensors and processors. Therefore, the EU Commission, the German government and the other interested EU member states must now quickly adopt the second "Important Project for Common European Interest" (IPCEI) for microelectronics and communications technology. In addition, a long-term strategy is needed to strengthen Europe's strengths, such as power semiconductors, and to boost areas that have so far been rather weak in Europe, such as processors. "What is needed are precisely tailored support programs that take into account the needs of the various user industries - in particular also SMEs as the top performers in German industry."

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