June 28, 2026, (Inside AI) — Shenzhen-based Basic Semiconductor cleared a key listing hearing this week, advancing toward an initial public offering in Hong Kong. The move positions the Chinese chipmaker to fund expansion in silicon carbide technology at a moment when AI data centers strain global power systems.
Founded in 2016 by graduates from Tsinghua University and the University of Cambridge, Basic Semiconductor operates as a rare fully integrated device manufacturer in the SiC sector. Its work spans chip design, wafer fabrication, and module packaging.
The IPO underscores China’s aggressive push to lead next-generation SiC technology. Basic Semiconductor joins rivals Silan Microelectronics and China Resources Microelectronics in racing to supply AI infrastructure. Data center demand for energy-efficient power chips has surged alongside AI’s exponential compute growth.
Global data center electricity consumption could double by 2030, according to recent projections. SiC chips offer higher thermal conductivity and voltage tolerance than traditional silicon, making them critical for high-power AI servers. Yet the industry faces a paradox: oversupply now, but looming demand as architectures evolve.
UBS analysts noted the global SiC market is currently oversupplied, largely from aggressive capacity expansion by Chinese firms. They stated:
“The transition to 800V architectures in 2027 and 2028 would help absorb some of the excess inventory, supported in part by adoption of the technology by data centres.”
That shift aligns with hyperscalers retrofitting power delivery for next-gen AI clusters. Basic Semiconductor’s integration model could give it an edge in quality control and cost, but it faces fierce competition. More than a dozen Chinese SiC players have scaled production in the past two years, driving down prices globally.
Industry veterans caution that SiC’s data center payoff isn’t guaranteed. Gallium nitride and advanced silicon designs still compete on cost and maturity. Yet China’s state-backed investment in SiC signals a long-term bet that AI’s power hunger will force a material transition.
Basic Semiconductor’s IPO proceeds will target expanded wafer capacity and R&D for 200mm SiC substrates, a frontier for lowering per-chip costs. Its Hong Kong listing could test investor appetite amid trade tensions and chip export controls.
Meanwhile, global SiC leaders like Wolfspeed and STMicroelectronics are also pivoting toward data center applications, intensifying the race. The outcome may hinge less on technology and more on who can survive a brutal pricing cycle until 2028.
