[Peace&Chips] The Next-Generation Power Semiconductor Samsung Focuses On

Samsung Electronics to Mass-Produce Next-Generation Power Semiconductors by 2025
High Process Compatibility of Gallium Nitride and Silicon Materials
Foundry Competition Intensifies Among TSMC, UMC, DB HiTek, and Others

Editor's NoteSemiconductors, known as the rice of modern industry. Although it's a term we hear every day, it’s often hard to explain. Peace & Chips will make the complex concepts and overall industry trends of semiconductors easy to digest. Just bring your spoon.

[Peace&Chips] The Next-Generation Power Semiconductor Samsung Focuses On

Samsung Electronics recently unveiled its new foundry (semiconductor contract manufacturing) business plan. The company held 'Samsung Foundry 2023' in Silicon Valley, USA, and for the first time announced the launch of an 8-inch gallium nitride (GaN) power semiconductor foundry service.

Power semiconductors are used to convert, distribute, and control power in various electronic devices such as smartphones and home appliances. They supply the appropriate power to devices, reducing unnecessary power consumption. By saving power, they also extend device battery life. Their applications are expected to be prominent in electric vehicles, telecommunications, and renewable energy sectors.

Power semiconductors made from compound materials such as silicon carbide (SiC) and GaN, instead of traditional silicon (Si), are anticipated to play a significant role. Compounds refer to materials composed of two or more elements, unlike silicon which is a single element. Using compound materials maximizes the use of power semiconductors in high-temperature, high-voltage, and high-frequency environments.

In particular, GaN is a compound made by combining gallium (Ga) and nitrogen (N), characterized by its heat resistance. It also offers advantages such as fast signal conversion and processing speeds, and enhanced power-saving effects. Compared to silicon materials, GaN allows for miniaturization. Its high compatibility with existing silicon processes makes technological access easier than with SiC.

However, since the technology is still maturing, production of power semiconductors using compound materials is currently limited to 6-inch (150 mm) and 8-inch (200 mm) wafers. Larger wafers allow for more semiconductor chips to be produced and higher circuit integration. Silicon-based semiconductors are mainly produced on 12-inch (300 mm) wafers at present.

In the foundry sector, Taiwan's TSMC, the industry leader, is mass-producing GaN-based power semiconductors. Taiwan's UMC, the US-based GlobalFoundries, and Korea's DB HiTek are also either advancing related businesses or conducting technology research. As a potential next-generation growth engine, many companies are showing keen interest.

Samsung Electronics plans to actively enter the 8-inch GaN power semiconductor foundry business starting in 2025. They intend to begin mass production based on customer orders from various applications including consumer, data centers, and automotive sectors.

Within the semiconductor industry, it is assessed that to enhance competitiveness in the GaN power semiconductor business, securing talent alongside technology development is a key challenge. Especially for compound materials, production is said to be more difficult than design, requiring specialized engineers skilled in handling these complex materials. As market competition intensifies, talent acquisition will become increasingly fierce.

Market research firm Yole D?veloppement forecasts that the GaN power semiconductor market will grow from $126 million in 2021 to $2 billion by 2027, with an average annual growth rate of 59%. We should pay close attention to the various business developments from related companies in this rapidly expanding market.