In-Depth Analysis of IGBT: From Semiconductor Core Component to New Energy Investment Opportunities

What Exactly Is IGBT? Why Has It Become an Investment Focus

IGBT stands for Insulated Gate Bipolar Transistor, a key component in the power semiconductor field. In the cost structure of electric vehicles, IGBT is second only to batteries, directly affecting overall vehicle energy efficiency and performance.

This seemingly unfamiliar component has multiple functions: power amplification, inversion (DC to AC), control, and protection. Its high-efficiency switching capability—performing tens of thousands of switch operations per second—has earned it the industry’s nickname as the “CPU of power electronics.” Thanks to its advantages of high power, high reliability, fast switching speed, and low losses, IGBT is now widely used in complex fields such as rail transit, electric vehicles, smart grids, new energy equipment, aerospace, and more.

An electric vehicle equipped with high-efficiency IGBT can accelerate to 100 km/h in just 3 seconds, a direct reflection of IGBT’s high-performance conversion capability.

Global IGBT Market Size and Growth Potential

Market data shows that the IGBT industry is in a rapid growth phase. According to Donghai Securities, the global IGBT market size grew from $3.2 billion in 2012 to $7.09 billion in 2021, with a compound annual growth rate (CAGR) of 6.6%. International research firm YOLE predicts this figure will expand to $9.3 billion by 2027.

In terms of application distribution, electric vehicles and industrial control are the main demand sources, accounting for 28% and 37%, respectively, followed by new energy power generation and home appliance inverter markets. This distribution reflects the deep link between IGBT demand and the trend of energy transition.

Why Are IGBT-Related Stocks Worth Watching

Building Competitive Advantage Through Technological Barriers

As a high-end component, IGBT has a high technical threshold. Few companies master core technologies, giving those that do strong bargaining power. Currently, the global IGBT market is dominated by five giants: Infineon, Mitsubishi Electric, ON Semiconductor, Fuji Electric, and ABB, holding over 70% market share.

Policy Support and Industry Trends Are Aligned

Countries worldwide continue to increase support for electric vehicles and green energy. Policies introduced in 2020 have driven rapid growth in related industries, directly boosting demand for IGBT. In the long term, the development of electric vehicles, photovoltaics, wind power, and other new energy sources remains upward, and the demand for power semiconductors will only increase.

Review of U.S. Stock Performances

AMD (Advanced Micro Devices, Inc.)

A multinational company focused on designing and manufacturing microprocessors and graphics processors. In 2023, driven by the rise of tech stocks, its stock price increased from around $60 per share at the start of the year to about $140 at year-end, doubling. Even after the surge, some investors still see undervaluation potential.

Intel (INTC.US)

The world’s largest manufacturer of personal computer components and semiconductor chips. After years of downturn, signs of recovery appeared. In 2023, its stock rose from about $30 per share at the beginning of the year to nearly $50 at year-end, with an increase of nearly 70%, showing steady performance without major volatility.

Broadcom (AVGO)

Specializes in semiconductor and infrastructure software solutions. Its 2023 performance was also impressive, with stock rising from less than $600 at the start of the year to over $1,000 at year-end, an increase of about 70%. Similar to Intel, it showed a steady upward trend, making it a good long-term holding choice.

Analysis of IGBT-Related Companies in Taiwan Stock Market

Taiwan’s semiconductor industry chain is increasingly involved in new energy vehicles and new energy equipment. The following three stocks demonstrate different market performance characteristics:

Macronix (2342) Cyclical Fluctuations

Macronix has actively expanded into the automotive power component market in recent years. In 2022, revenue increased by 10.22% year-over-year to NT$2.151 billion, reaching an 11-year high. Benefiting from this, its stock price entered a strong rally in mid-March 2023, breaking key moving averages, and in less than half a month, reached an annual high of NT$47.96, up about 30%. However, the rally was short-lived; the stock reversed downward, giving back all gains by mid-May, then consolidated in the NT$38–42 range, and further declined to NT$33 by August, remaining subdued at year-end.

Powertech (2481) Volatility

Powertech mainly produces rectifier diodes and precision electronic materials. In the first half of the year, its stock was pressured by weak consumer demand and order adjustments. After July, it triggered an upward move, rising from NT$65 to NT$81.7 within half a month, an increase of over 25%. In August, industry cooling caused sharp declines, with the stock briefly falling below NT$60, only rebounding near year-end.

Fuding (8261) Persistent Weakness

Fuding provides advanced electronic solutions widely used in consumer electronics and calculators. In the first half, its stock mostly traded around NT$100. After July, it entered a downtrend, falling from above NT$100 to around NT$80, and remained sluggish for four months before starting to rebound at year-end.

Investment Opportunities and Potential Risks

Long-term Opportunities

IGBT is the fastest-growing product category among power semiconductors, with electric vehicle demand as the strongest driver. As the market size continues to expand, major international IGBT giants are likely to outsource more advanced technology foundry services, creating opportunities for Taiwanese and other regional power semiconductor manufacturers. Some IGBT concept stocks have already experienced significant corrections, with valuations becoming relatively reasonable, making it a good timing for strategic deployment.

Risk Warnings

1. Technology Concentration Risk: Advanced IGBT technology is mainly held by leading companies in Europe, the US, Japan, and South Korea. If international supply chains fragment further or geopolitical tensions escalate, Taiwanese and other regional power semiconductor firms may face difficulties in technological breakthroughs or material shortages.

2. Technology Iteration Risk: New semiconductor technologies such as silicon carbide (SiC) and gallium nitride (GaN) are maturing, potentially altering the competitive landscape of the current IGBT market. Companies unable to adopt new technologies in time risk being replaced.

Multiple Ways to Invest in IGBT-Related Stocks

Direct Stock Purchase: All IGBT concept stocks listed on the Taiwan Stock Exchange are accessible to investors with relevant accounts.

Derivative Instruments: Contracts for Difference (CFDs) can be used for trading, offering leverage. Traders can establish both long and short positions.

Index Funds: Risk-averse investors may choose ETFs tracking Taiwan Electronics Index or Taiwan Semiconductor Index.

Overall Outlook

The rapid development of global new energy industries such as electric vehicles, photovoltaics, and wind power has become the main engine driving IGBT demand. The long-term trend of increasing demand for power devices remains unchanged, and the IGBT industry outlook remains broad. For investors, now is a good time to strategically position in some related stocks.