Kostexis, a specialized company in low thermal expansion and high heat dissipation material components, is showing strong performance. The news that Samsung Electronics will make full-scale investments in gallium nitride (GaN) power semiconductors appears to be influencing the stock price.
As of 10:17 AM on the 2nd, Kostexis was trading at 3,290 KRW, up 230 KRW (7.52%) compared to the previous trading day.
On the same day, Kostexis announced that it had been selected as a joint research and development institution for the Ministry of Trade, Industry and Energy's Materials and Components Technology Development Project. The government project is titled "Development of a Dedicated Package for Ultra-High Frequency GaN MMIC (Microwave Monolithic Integrated Circuit) and Development of Post-Packaging Processes." Kostexis is responsible for developing a dedicated package for GaN MMICs that provides ultra-high frequency low loss, high heat dissipation, and inspection function pathways, as well as implementing thermal design that facilitates the release of heat generated by power devices to the outside.
The research and development period extends until December 31, 2026, with government-supported R&D funding of approximately 2.8 billion KRW. The expected benefits of the government project include the localization of GaN MMIC power amplifier products, securing price competitiveness to replace imports and increase exports, and synergy with related industries.
A Kostexis representative explained, "We were selected for this project in recognition of our technology in low thermal expansion and high heat dissipation materials," adding, "We expect to continuously expand our business in the radio frequency (RF) sector, which currently serves as a cash cow." They further emphasized, "Above all, the significance lies in demonstrating the potential for our core material technology to expand into various fields where next-generation compound semiconductors such as SiC (silicon carbide) and GaN (gallium nitride) semiconductors are applied, including automotive power semiconductors and communication markets."
Additionally, the representative expressed their ambition, stating, "We will do our best to pioneer fields where Kostexis material technology can be applied and to become a continuously growing global top-tier material components company."
Meanwhile, Kostexis recently signed an initial supply contract for high heat dissipation spacers for automotive power semiconductors with a global power semiconductor specialist company.
Samsung Electronics has declared its entry into the compound semiconductor foundry (semiconductor contract manufacturing) market. At the recently held "Samsung Foundry Forum 2023," it announced, "Starting in 2025, we will begin foundry services for 8-inch GaN power semiconductor products for consumer, data center, and automotive applications." GaN, along with silicon carbide (SiC), is an emerging next-generation power semiconductor material developed to overcome the limitations of existing silicon semiconductors, which are vulnerable to high temperature and high pressure.
Not only Samsung Electronics but also DB HiTek and K-Foundry are accelerating their entry into the GaN foundry market. Taiwan's TSMC began 6-inch gallium nitride semiconductor contract manufacturing in 2020, and DB HiTek and SK Hynix's subsidiary K-Foundry are actively developing 8-inch gallium nitride processes.
Recently, it was reported that the CEO of German semiconductor equipment company Exytron secretly visited Korea and contacted related companies. An IT specialized media outlet reported that Samsung Electronics discussed equipment investments estimated between 700 billion and 800 billion KRW during the meeting with Exytron.
GaN is a next-generation power semiconductor material expected to see rapidly increasing demand across industries such as IT, telecommunications, and automotive due to its superior high-temperature and high-pressure durability and power efficiency compared to existing silicon semiconductors. According to market research firm TrendForce, the global GaN market size is projected to grow from $292 million last year to $1.768 billion by 2026, with an average annual growth rate of 57%.
GaN power semiconductors, which have better high-temperature and high-voltage durability and power efficiency than existing silicon semiconductors, are likely to be used in onboard chargers inside electric vehicles and converters that convert direct current to alternating current. Currently, automotive semiconductor companies are known to maintain only a few months' worth of inventory of these semiconductors.
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