South Korean chipmakers Samsung Electronics Co. and SK Hynix Co. are seeking to dominate the “compound power semiconductor” market, which is currently dominated by Europe, the U.S. and Japan.
Market research firm Global Research Company reports that the compound power semiconductor (e.g., GaN, GaAs, Sic, InP, etc.) market size was $73.91 billion in 2023 and is expected to grow to $113.3 billion by 2028.
Compound semiconductors have become a transformative influence in a variety of industries. the dominance of SiC in the automotive sector, particularly in 800V electric vehicles, is driving a multi-billion dollar market. At the same time, GaN is expanding its presence in the consumer and automotive sectors.
Korea relies on imports of compound power semiconductors, the main markets are Europe (54%), the United States (28%) and Japan (13%), Korea’s market share is only about 1% to 2%. Recently sources revealed that Samsung Electronics and SK Hynix are pushing the compound power semiconductor market.
In response to this latest development, the Korea Industrial Technology Planning and Evaluation Institute (KITPI) has decided to invest 138.5 billion won (about $109 million) by 2028 to develop advanced technologies for compound power semiconductors.
Samsung Electronics and SK Hynix are also considering commercialization with plans to develop silicon carbide (SiC) semiconductors as well as GaN semiconductors.
The move is seen as part of their strategy to enhance the competitiveness of their foundry (semiconductor contract manufacturing) business.On June 28, according to several Korean media reports, Samsung Electronics, SK Siltron, Korea’s Dongbu HiTek (DB HiTek), and fabless ABOV Semiconductor have signed a semiconductor business agreement (MOU) to work together on the Compound Power Semiconductor Advanced Technology Development Program.
Samsung’s road to GaN
In June 2023, Samsung Electronics Foundry Business President Choi Si-young announced at the Samsung Foundry Forum that the company will begin production of 8-inch GaN compound power semiconductors from 2025 onwards. This emphasis on compound power semiconductors is expected to be reiterated at the upcoming July 9, 2024 forum.
Samsung restructured its LED business team into the CSS business team at the end of 2023 to facilitate the commercialization of GaN semiconductors. This change was made because LED wafer deposition equipment can be used to deposit GaN compounds.
Samsung aims to develop GaN semiconductors with the LED development capabilities it has accumulated over the years.
SK Hynix’s road to GaN
SK Hynix, on the other hand, through its subsidiary SK keyfoundry , seeks to develop and mass-produce GaN semiconductors with the goal of developing GaN semiconductors within this year and starting mass production in 2025.
SK KeyFoundry, which formed a team to develop the GaN process in 2022, announced last month that it has obtained device characterization for an 8-inch 650V GaN HEMT and plans to complete development within this year.
In addition, in May of this year, DB HiTek announced that it would introduce the relevant equipment required for the production of gallium nitride devices in the third quarter of this year and would complete preparations for mass production by the end of this year, and that the GaN foundry was expected to begin operations early next year.
