Bank of America: The Market Size of Analog Chips May Reach $27 Billion by 2030

Morgan Securities points out that electricity is becoming the biggest bottleneck for the expansion of AI infrastructure, and the resulting revolution in data center power architecture will bring a growth opportunity for analog semiconductor manufacturers that will last for several years.

The report expects the AI analog chip market to grow from the current $7.9 billion to approximately $27 billion by 2030, with a compound annual growth rate of 28%. The market size within data centers (from racks to chips) will expand from $7.6 billion to $25 billion, and the power infrastructure sector will grow from about $245 million to $1.8 billion.

The core logic behind this growth is that the surge in AI computational density is driving the power consumption per rack to leap from the traditional cloud server's 10-15 kilowatts to over 1.5 megawatts in the NVIDIA Feynman platform era, an increase of nearly 100 times. Existing power infrastructure cannot meet this demand, and the entire power transmission chain, from the power grid to the racks and then to the GPU cores, needs to be upgraded comprehensively.

800-volt DC architecture: The inevitable path for the next generation of data centers

The report elaborates on the path of electricity architecture in data centers evolving towards 800-volt direct current (800 VDC). The traditional architecture relies on multiple AC-to-DC voltage conversions, with each conversion incurring a loss of about 1%-2%, and consuming a large amount of copper and physical space.

The 800 VDC architecture directly converts grid AC electricity into 800-volt DC and allocates it to the racks, significantly reducing the intermediate conversion process. Morgan cites NVIDIA data stating that this architecture can increase end-to-end efficiency by up to five percentage points, reduce copper usage by 45%, and improve overall ownership costs by up to 30%.

This architecture will also foster the large-scale application of emerging devices such as Solid State Transformers (SSTs) and Solid State Circuit Breakers (SSCBs). The report predicts these new technologies will truly ramp up between 2028 and 2030 with the promotion of hybrid microgrid architectures.

Silicon Carbide and Gallium Nitride: The fastest-growing "newcomers"

From the perspective of device types, analog ICs remain the largest sub-market, with an estimated scale of $15.9 billion by 2030. However, the fastest-growing are wide bandgap semiconductors—Silicon Carbide (SiC) and Gallium Nitride (GaN), with compound annual growth rates of 63% and 69%, respectively, from 2025 to 2030.

SiC has an outstanding advantage in high-voltage front-end conversion and protection, while GaN is more competitive in the intermediate Bus Converter (IBC) link that requires high switching frequencies and high power density. The report believes that GaN is expected to become the dominant material for high-power rack IBCs.

Competition Landscape: Texas Instruments is leading, with the largest share increase from Infineon

Looking at the competitive landscape of manufacturers, Texas Instruments currently has the highest share with its extensive range of power semiconductor products, and it is expected to maintain a market share of about 21% by 2030. Infineon is considered the manufacturer with the largest share growth, with its share increasing from about 12% in 2025 to 17% by 2030, benefiting from its broadest product portfolio across silicon, SiC, and GaN.

ADI ranks as the third-largest beneficiary, with its acquisition of Empower bringing integrated voltage regulator technology, which will strengthen its competitiveness in the chip-level power transmission process. Onsemi is expected to achieve significant share expansion with its layout in SiC and vertical GaN technologies.

The report emphasizes that the ultimate winners will be those manufacturers who have system-level design capabilities and can cover the full chain of power management from the power grid to the chip core, rather than single-product suppliers.