European Semiconductors: Watts to Tokens: Europe gets a socket

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European Semiconductors: Watts to Tokens: Europe gets a socket

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European Semiconductors

Watts to Tokens: Europe gets a socket

Price Objective Change

233GW by 2030E; AI Power market to $27bn; 28% CAGR 26 May 2026

We published a deep dive into the AI power landscape, estimating c233GW of Equity

deployments through 2030E, expanding today’s $7.9bn AI analog market to $27bn (28% Europe

CAGR). We expect European companies to benefit from accelerating SiC/GaN adoption Semiconductors

alongside broader product portfolios. We see IFX best positioned to lead in power Didier Scemama >>

infrastructure, leveraging its depth in power semis, while STM more levered to the fast- Research Analyst

growing optical market (c30% CAGR 25-30E). We reiterate IFX as Buy/top pick and STM MLI+44 (UK)20 7995 6751

at Neutral, reflecting IFX’s stronger positioning to capture share as the market scales. didier.scemama@bofa.com

Amelia Banks >>

Infineon leverages AI Power focus to gain share in SiC ResearchMLI (UK) Analyst

We expect IFX to outpace STM in silicon carbide (SiC) within data centers, reaching amelia.banks@bofa.com

c37% market share by 2027/28E vs. c15% for STM, with SiC the fastest growing Oliver Wong >>

Research Analyst

segment (c73% CAGR 2025-30E) driven by rising power densities and higher-voltage MLI (UK)

architectures. While STM’s >30% share of the broader SiC market is anchored in oliver.wong2@bofa.com

automotive (notably Tesla), STM remains underpenetrated in DC and increasingly spread

across adjacent opportunities such as optics and LEO. In contrast, IFX’s strategy is more

tightly focused on AI power, leveraging its strength in power semiconductors incl. a

growing GaN portfolio across PSU, PCS and power infrastructure (e.g. SSTs, SSCB, ESS).