Compound Power Semiconductor Market to Grow Sharply
The authors are analysts of NH Investment & Securities. They can be reached at hwdoh@nhqv.com. -- Ed.
The compound power semiconductor market is expected to grow more than fivefold by 2029. A ramp up in demand for the use of compound semiconductors such as SiC and GaN in 5G equipment, EVs, and industrial facilities (including solar facilities) is now starting to take place in earnest.
Compound power semiconductor market to grow in earnest from 2021
The growth of the next-generation compound power semiconductor market, including SiC (4H-SIC) and GaN (Galium Nitride), is now starting in earnest. Market research company Yole predicts that the SiC power semiconductor market will expand at CAGR of 29% through 2024, reaching US$2bn. Related beneficiaries should include Cree, STMicroelectronics and Veeco in the US and RFHIC in Korea.
Wafer production technology is essential in production of GaN and SiC semiconductors
We note that compound semiconductors have begun to be used in 5G equipment, industrial facilities, electric vehicles, and solar energy, amongst other industries. Recently, GaN transistors have come to be adopted in large-scale quantities for charging adapters for smartphones and notebooks. Moreover, Hyundai Motor Group has adopted Sic semiconductors for its recently announced E-GMP.
In the production of compound semiconductors, wafer production technology is important. GaN semiconductors are manufactured by growing a GaN epi layer on a substrate using metalorganic CVD (MOCVD) equipment. SiC epitaxial wafer is made by depositing a SiC single crystal layer several micrometers thick on a polysided wafer. SiC wafers are produced by a number of players, including Cree, Infineon, and Rohm. In Korea, SK Siltron, which acquired Dupont’s SiC wafer division, is investing in the industry. SiC wafer is now in short supply.
Cree plans to increase its SiC capacity by 30x by 2024 and invest US$1bn in its GaN business. Having reached US$200mn in 2019, ST Micro’s SiC chipset-related sales are targeted to reach US$1bn by2025.