The author expresses a bearish sentiment toward the current trade involving GaN (Gallium Nitride) and SiC (Silicon Carbide), noting that Texas Instruments has indicated production ramps will take 2–3 years to impact earnings. There is a warning that China may flood the market with GaN and SiC similarly to their impact on InP (Indium Phosphide). The author suggests a better risk-reward profile exists in WFE (Wafer Fabrication Equipment) and providers of full systems like transformers and inverters.