Electronic Energy (April): From Power Chips to Smart Grids, Reshaping the New Ecology of the Energy Industry

As we reach a critical juncture in the iteration of new energy technologies and the global energy transition, “electronic energy” is emerging as a key player. Technologies such as power semiconductors, energy storage chips, and smart grid systems are deeply integrating into the new energy industry chain, promoting the intelligentization of energy production, storage, and consumption. According to data from the first quarter of 2025, the global energy electronics market has surpassed 500 billion USD, with China’s power semiconductor self-sufficiency rate increasing to 35%. Additionally, CATL’s sodium-ion battery BMS chip has achieved 100% domestic substitution.

This article explores how the “silicon revolution” is reshaping a trillion-dollar market by adding the dimension of electronic energy to the existing framework.

1. Market Trends: Energy Electronics as a New Growth Engine

1.1 Explosive Growth of Power Semiconductors Driven by New Energy Vehicles

By 2025, the global power semiconductor market for new energy vehicles is projected to reach 15 billion USD, with the usage per vehicle increasing fivefold compared to traditional cars. The penetration rate of silicon carbide (SiC) modules is expected to exceed 30%. BYD’s self-developed IGBT chip has captured 28% of the market share, surpassing Infineon and becoming the second-largest globally.

Data Source: TrendForce, BYD Financial Reports

1.2 Core Components of Energy Storage Systems

A 1GWh energy storage system requires over 2000 MCU chips. The global energy storage chip market is expected to reach 8.5 billion USD by 2025, with Gigadevice’s energy-specific MCU shipments increasing by 120%.

Data Source: CCID Consulting

1.3 Acceleration of Smart Grids and Energy Digitalization

The integration of “source, grid, load, and storage” in China: State Grid plans to invest 60 billion RMB in 2025 to construct a digital twin grid, driving a surge in demand for sensors and communication modules due to the smart transformation of distribution networks. Weisheng Information has reported a 90% increase in smart meter orders.

Data Source: State Grid, Weisheng Information Announcements

International Market Breakthrough: Huawei Digital Energy has won a bid for a 13GW photovoltaic + storage project in Saudi Arabia, providing a full-stack intelligent monitoring system that improves generation efficiency by 15%.

Data Source: Huawei Official Website

2. Technological Breakthroughs: Electronic Energy Reshaping the Industry’s Technological Route

2.1 Battery “Brain”: Breakthrough in BMS Chip Localization

CATL’s sodium-ion battery now features a self-developed BMS chip, achieving an energy management accuracy of 99.5% and supporting low-temperature starts at -40°C. By 2025, the associated energy storage projects are expected to exceed 50GWh. BYD’s blade battery BMS has achieved cell-level monitoring, increasing battery cycle life to 8000 times while reducing system costs by 25%.

Data Source: CATL Technology White Paper, BYD Press Conference

2.2 Hydrogen Energy Electronics: From Sensors to Control Chips

Proton exchange membrane (PEM) electrolyzers: Suzhou Jiehydrogen’s self-developed hydrogen concentration sensor has an accuracy of 0.1ppm and is paired with Shanghai Jieneng’s fuel cell system, achieving a power density exceeding 4.5kW/L. Infineon’s hydrogen-specific MCU chip has achieved millisecond-level response, supporting safe management of high-pressure hydrogen storage systems at 70MPa, and is already applied in Yutong’s hydrogen fuel buses.

Data Source: Suzhou Jiehydrogen Official Website, Infineon Technical Reports

2.3 Photovoltaic Electronics: Breakthroughs in BC Technology and Stacked Batteries

LONGi Green Energy has achieved an 80% domestic production rate for laser micro-processing equipment in the 50GW BC battery capacity, with a yield improvement to 98.5%. In collaboration with SMIC, Xina Solar has developed a driver chip for perovskite stacked batteries, with component efficiency surpassing 29% and expected mass production by 2026.

Data Source: LONGi Green Energy Announcements, Xina Solar News

3. Policy Impact: Global Commitment to Energy Electronics

3.1 China’s “Strong Chip, Supplement Chain” Policy Implementation

The “Action Plan for the Development of the Energy Electronics Industry” has set clear targets for 2025, including a power semiconductor self-sufficiency rate of over 40% and a silicon carbide substrate production capacity of 3 million pieces per year. Localization assessments for wafer production will be implemented against foreign enterprises such as Infineon and STMicroelectronics.

Data Source: Ministry of Industry and Information Technology

3.2 Local Subsidies

Shenzhen is providing a 50% subsidy for wafer costs to energy storage BMS chip design companies, while SMIC’s 12-inch automotive-grade chip production line received 2 billion RMB in support from Dongguan.

Data Source: Shenzhen Municipal Bureau of Industry and Information Technology

3.3 US and European Technology Restrictions and Localization Competition

The US “CHIPS and Science Act” mandates that 40% of the power semiconductors used in energy storage projects must be produced in North America, compelling CATL and BYD to establish factories in Mexico. The EU’s “Digital Compass Plan” aims for 200GW of silicon carbide production capacity by 2030, with STMicroelectronics and Infineon jointly building the first 8-inch silicon carbide wafer production line in Europe.

Data Source: US Department of Energy, European Commission

4. Corporate Dynamics: Cross-Industry Integration Giving Rise to New Giants

4.1 Semiconductor Companies Transitioning to Energy

SMIC’s automotive-grade MCU monthly production capacity has reached 50 million units, entering the supply chains of CATL and BYD, with a target of 25% revenue share from energy electronics by 2025. Gigadevice has launched the GD32E5 series chips specifically for energy storage, supporting 1500V high-voltage systems, already applied in Sungrow’s 100MWh storage project.

Data Source: SMIC Earnings Conference, Gigadevice Official Website

4.2 Energy Companies Spinning Off Electronic Business

CATL has established “Ningxin Microelectronics,” focusing on battery management chip development, aiming for 100% self-sufficiency in BMS chips by 2025, with plans for external sales. State Power Investment Corporation has spun off its digital technology sector to create “Smart Energy Technology Company,” focusing on virtual power plant scheduling algorithms, already integrating 30% of the national distributed photovoltaic resources.

Data Source: Qichacha, State Power Investment Corporation Official Website

4.3 Cross-Industry Collaboration Examples

Huawei and Changan are jointly developing an integrated “light-storage-charge-compute” solution, utilizing Ascend chips to increase charging station utilization by 40%. SMIC and CATL are co-building a 12-inch automotive-grade chip packaging and testing production line, achieving full-process localization from design to manufacturing to packaging, shortening chip delivery times by 50%.

Data Source: Huawei Press Conference, SMIC Announcements

5. Future Outlook: Electronic Energy Defining Industry Competitive Barriers

5.1 “Silicon + Carbon” Dual-Drive Era of Technological Integration

Solid-state battery electrolyte interface control relies on high-precision sensors, while hydrogen storage and transportation require pressure chips for real-time monitoring. The increasing complexity of energy systems is fostering a trend where “chips serve as the core of hardware.”

Cost Reconstruction: Silicon carbide modules are expected to boost electric vehicle range by 15% and accelerate charging speeds by 30%, with related industry chain scale projected to surpass 200 billion RMB by 2027.

Data Source: Yole Development

5.2 Intelligentization Determining Industry Added Value

Energy storage systems equipped with AI diagnostic BMS are becoming standard, with fault prediction accuracy exceeding 95%, driving a 40% reduction in operational costs. Virtual power plants, utilizing edge computing chips, can achieve millisecond-level responses, with China’s dispatchable load capacity expected to reach 300 million kilowatts by 2025, equivalent to 15 Three Gorges power stations.

Data Source: National Energy Administration, CITIC Securities

5.3 Supply Chain Security Reshaping the Global Landscape

China’s advantages: In mature process fields such as IGBT and MCU, CRRC Times and Silan Microelectronics are rapidly increasing market shares, potentially breaking the monopoly of the US, Europe, and Japan. Risk warning: Restrictions on EUV lithography machines may impact the development of advanced process chips, with 28nm and below storage-specific chips still reliant on imports by 2025.

Data Source: SEMI, CRRC Times Announcements

Conclusion: A Disruptive Revolution is Unfolding as “Electronic” Meets “Energy”

From power semiconductors to smart grids, and from BMS chips to hydrogen sensors, electronic energy is acting as a “technological glue,” connecting all aspects of new energy into a cohesive whole. By 2025, companies that establish cross-advantage in battery materials, electronic chips, and digital algorithms will build formidable barriers in this integration revolution. As silicon-based civilization becomes deeply intertwined with carbon neutrality goals, we are witnessing not just a transformation in energy forms, but also an intelligent reconstruction of the entire industrial system.

Upgrade Interaction Topic: What technology in electronic energy do you think is most likely to disrupt the industry in the next five years?

• A. All-Silicon Carbide Electric Vehicle Platform (50% range increase)
• B. Intelligent BMS achieving zero thermal runaway in batteries
• C. Chip-Level Energy Router (turning homes into microgrids)
• D. AI Chip for Hydrogen-Electric Conversion (efficiency exceeding 60%)

Click to vote and leave your reasoning!

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