DS Investment & Securities: SiC & GaN Market Growth & Opportunities: > The adoption of 800V architectures creates new growth opportunities for 8inch foundries, challenging traditional Si power semiconductors. > SiC Power Market: Expected to grow at a CAGR of +20%, scaling from $3.4 billion (2024–2025) to $10.3 billion by 2030F. > GaN Power Market: Expected to experience even faster growth at a CAGR of +44%, rising from $0.6 billion to $3.0 billion by 2030F. Role Breakdown & Material Specialization: > SiC: Excels in high-voltage, high-power, and high-temperature environments, serving as a partial substitute for Si IGBT. Main applications include EV inverters/OBC, 800V EVs, AI datacenters (AI DC), and energy storage systems (ESS). > GaN: Excels in high-frequency, high-power-density, and high-efficiency power conversion, serving as a partial substitute for Si MOSFETs. Key application areas include chargers, adapters, power supply units (PSU), AI datacenters, robots, and solar power. Infrastructure & Trends: > Datacenter Penetration: The penetration rate of SiC/GaN within datacenter power systems is projected to increase from 17% in 2026F to over 30% by 2030F, driven heavily by new high-frequency, high-density conversion needs (such as 800V to 54V/12V transitions in AI datacenters). > Manufacturing Shifts: SiC is currently transitioning from 6-inch to 8-inch fabrication lines, while GaN relies heavily on 8-inch GaN-on-Si processes. Long-term transitions up to 12-inch wafers are also being evaluated.

Sumitomo Mitsui DS AM sold its entire holdings of French government bonds amid concerns about the nation’s fiscal situation, shifting funds to German bunds and short-term Japanese government bonds