NVIDIA 'assists' Innoscience in securing position in the 800V ecosystem; Innoscience surges another 25% in a single day

Under this plan, Innoscience will—over the next two years—be the primary beneficiary of surging demand for 800V architecture, providing end-to-end GaN power solutions for its Kyber rack system. According to publicly available information, this collaboration with NVIDIA focuses on revolutionizing power supply for AI data centers, addressing the energy consumption pain points of high-performance computing clusters. NVIDIA expects mass production of its Rubin Ultra platform (with per-rack power exceeding 600 kW) in 2026; Innoscience’s GaN devices will be deployed in centralized rectifiers (HVDC) for high-voltage conversion and in rack-mounted DC-DC power modules (enabling highly efficient 800V→48V conversion). Its technical advantages include: superior high-voltage compatibility—its GaN devices withstand voltages above 800 V, achieving energy conversion efficiency of up to 98.5%, reducing power loss by 30% compared to traditional silicon-based solutions; and strong spatial optimization—device volume is only one-fifth that of silicon-based equivalents, enabling per-rack power density to exceed 300 kW and reducing data center floor space by 40%. After overseas sales surged 118%, Innoscience’s GaN export momentum is set to accelerate further. Public records indicate that Innoscience, founded in December 2015, is a high-tech enterprise dedicated to R&D and industrialization of third-generation semiconductor gallium nitride-on-silicon (GaN-on-Si). It is also the world’s first integrated device manufacturer (IDM) to achieve mass production of 8-inch GaN wafers, enjoying significant first-mover technological advantages and robust vertical integration across the supply chain. As the world’s only GaN-on-Si chipmaker offering a full voltage-range product portfolio, Innoscience has already launched or is developing products spanning 15 V to 1200 V. Its next-generation 700 V GaN device platform has completed customer qualification and is expected to enter mass production in 2025; its 1200 V platform and high-voltage vertical GaN (V-GaN) series have likewise completed R&D validation. According to the company’s 2024 annual report, overall chip yield reached 95% in 2024, driving unit manufacturing costs down nearly 40% and accelerating profitability improvement. This series of production-line and technological advantages is clearly reflected in financial results. The report shows that from 2024 through H1 2025, Innoscience demonstrated robust revenue growth and operational breakthroughs. Revenue-wise, it achieved RMB 828 million in 2024, a 39.8% year-on-year increase—marking four consecutive years of exceptionally high growth. Operational efficiency improved markedly: gross margin rose sharply from −61.6% in 2023 to −19.5%, narrowing losses by 42.1 percentage points. Behind this lies accelerated realization of economies of scale. In 2024 alone, Innoscience added 471 new customer design-ins, onboarded 21 new direct customers and 13 distributors. With such rapid customer expansion, it delivered 660 million GaN chips for the year—exhibiting geometric growth in shipment volume. Regionally, the domestic market maintained steady high growth, rising 31.2% year-on-year to RMB 700 million—remaining its core market. Although overseas markets contributed a relatively small share of total revenue, their growth rate was extremely rapid. In 2024, overseas sales reached RMB 126 million, up 118.1% year-on-year; their share of total revenue jumped from 9.7% to 15.3%.

A RMB 4-billion domestic power GaN leader surpasses Infineon!

In the global power GaN market, the top spot belongs to a Chinese company. According to Yole Développement’s ‘Power GaN Market Outlook 2026’, Innoscience retained the #1 position in 2025 with a 31% market share, while Infineon climbed from fifth to second place—but its 16% share remains nearly half that of the leader. Meanwhile, Yole forecasts the power GaN market will reach USD 3.5 billion by 2031, with AI emerging as the biggest growth driver. Holding the crown is hard; challenging it is even harder. How long can China’s domestic power GaN leader maintain its top position? 01 Innoscience Leads the Pack What underpins China’s power GaN leadership? Innoscience’s continued leadership can be understood through three sets of data: financials, manufacturing, and applications. Financially, revenue growth is translating into improving gross margins—but overall profitability has yet to be achieved. In H1 2026, Innoscience reported revenue of RMB 834 million, up 50.6% year-on-year; gross profit stood at RMB 97.08 million, up 156.5% year-on-year; gross margin rose from 6.8% to 11.6%; net loss narrowed to RMB 309 million, a 27.9% reduction year-on-year. Gross profit growth significantly outpaced revenue growth—indicating that while sales expanded, profitability quality also improved. On the manufacturing front, large-scale delivery and high yields provide foundational support. Leveraging its Suzhou and Zhuhai production bases, the company delivered 547 million GaN chips in H1 2026, bringing cumulative deliveries to over 2.5 billion units. The company disclosed that capacity utilization remained high during the reporting period, with overall production yield sustained above 95%. Further cost reductions rely on process iteration—the company is developing its fourth-generation high- and low-voltage process platform, focusing on optimizing switching speed, on-resistance, and manufacturing cost; it also plans to reduce wafer fabrication costs by minimizing and optimizing the number of process layers. In terms of applications, growth drivers have broadened to include AI, automotive, and industrial energy storage. In H1 2026, revenue from AI data centers, industrial & energy storage, and new-energy vehicles totaled RMB 532 million—a 70% year-on-year increase—and accounted for approximately 63.8% of total revenue, outpacing the company’s overall growth rate. Note: Shipment growth and sales revenue growth are measured on different bases. These figures indicate that Innoscience is leveraging scale manufacturing to fulfill more application-specific orders and improving gross margins via shifts in business mix. Yet with a gross margin of just 11.6% and persistent net losses, achieving sustainable profitability remains the critical hurdle to clear—even after securing market leadership. 02 Infineon Rises to Second Place Power GaN competition has extended into customers and patents. Infineon’s rapid ascent was no accident—in 2023, it acquired GaN Systems for USD 830 million, instantly bolstering its power GaN technology portfolio and customer base. Subsequently, Infineon pioneered 300-mm GaN manufacturing technology, aiming to lower chip costs through larger-diameter wafers. This ‘acquire-technology-plus-expand-capacity’ strategy quickly manifested in financial results. In the latest quarter, Infineon posted revenue of EUR 4.172 billion—an increase of EUR 360 million sequentially. Of this, the Power & Sensors Systems division contributed EUR 182 million in incremental revenue, accounting for roughly half of the group’s overall growth. The company explicitly identified AI data center power supplies as its current most critical growth engine. The rivalry between Innoscience and Infineon has also entered the patent arena.