Xinlian Power, a Chinese compound-semiconductor manufacturer founded in 2023, has closed a Series C funding round of nearly US$275 million, lifting its valuation above US$2 billion. The round, led by China Mobile Chain Chief Fund and finalised in November 2026, drew more than US$550 million in investor interest despite a limited and targeted process, underscoring the intense appetite for silicon carbide technology positioned at the intersection of power electronics and artificial intelligence infrastructure.
The investor roster reflects a deliberate broadening of the company's strategic base. Participants include Inspur, Sinopec Hydrogen Energy Fund, NAURA Novatris Capital, Jiangfeng Electronics, Changzhou Xingyu, Cathay Capital, Puchao Capital, CCB Equity, CITIC Securities, and Galaxy Yuanhui, alongside a state power-grid group. The spread spans telecommunications, computing, power grids, and new energy — a notable shift from the automotive manufacturers that seeded the company in 2023. This diversification signals that Xinlian Power is repositioning itself to serve a wider industrial ecosystem as it pivots from electric-vehicle power chips into AI data-centre power supply.
Silicon carbide handles high voltages across both EV and data-centre systems, giving the company a natural pathway to migrate its manufacturing capabilities to new use cases. Data centres are increasingly moving from traditional low-voltage supply toward 800V high-voltage direct current architectures and, eventually, solid-state transformers — both aimed at cutting conversion losses and powering denser compute. Xinlian Power says some of its high-voltage SiC products have already entered sampling and verification, though 800V designs are only now reaching production and solid-state transformers remain years from mass deployment.
The company's silicon carbide business ranks first in China and among the top five globally, according to a 2025 Yole report. Revenue reached US$162.3 million in the first half of 2026, up roughly 106% year on year, with full-year revenue expected to top US$412.5 million. At roughly US$300 million, the round sits in the 97th percentile of Series C deals in China's semiconductor sector over the past 48 months, according to Dealroom data.
The pivot carries meaningful risk. The AI-power market is still emerging, and Xinlian Power must cultivate a new set of customers, architectures, and suppliers. Industry backing does not guarantee orders or commercial success. Yet the round marks a broader signal: capital is flowing not only to AI models but to the power infrastructure beneath them, and a bet that the supply chain for next-generation data-centre power is still being reshuffled.
Xinlian Power Raises $300M Series C to Pivot SiC Chips Toward AI Data Centre Power
By: IDCNOVARegion: East Asia