CJ Electronics, a developer of optical and individual devices for non-memory semiconductors, is showing strong performance. The anticipation surrounding the commercialization of power semiconductors using gallium nitride (GaN), a compound semiconductor material, appears to be influencing the stock price. There are forecasts that GaN will replace silicon (Si) power semiconductors. GaN power semiconductors are gaining attention for their potential to reduce power consumption when applied to data centers. Recently, with the surge in artificial intelligence (AI) demand, concerns about power shortages have increased. In this context, stocks related to power facilities have been continuously hitting record highs. It seems that quick investors are turning their attention to power shortage beneficiary stocks that have risen relatively less.
As of 10:45 AM on the 10th, CJ Electronics is trading at 14,810 KRW, up 19.44% from the previous day.
Power semiconductors are semiconductor components that enhance the power efficiency of electronic devices. As AI technology advances, the number of data centers is increasing. Power efficiency technology is considered a core competitive advantage for power semiconductors.
CJ Electronics is promoting power semiconductors using GaN materials as a new business in response to the growing demand for changes in semiconductor materials according to the usage environment of power semiconductors. Research and development of power semiconductor devices using GaN have been underway since 2017, and RF (Radio Frequency) devices since 2020. The company is striving to commercialize these products.
CJ Electronics expects GaN power semiconductors to be applied to data centers as well. With the rapid increase in demand for generative AI, investments in expanding servers within data centers to support this are also continuing. If power semiconductors installed in data centers are replaced from Si to GaN, power consumption can be significantly reduced. Reduced power consumption also lowers heat generation and saves costs associated with cooling servers.
Last year, the Korea Nano Technology Institute established a domestic platform for GaN compound semiconductor epiwafer materials. GaN compound semiconductors can withstand voltages two to three times higher than conventional silicon semiconductors and operate normally at high temperatures. The institute provided CJ Electronics, which is jointly conducting research projects on GaN power devices, with a 6-inch GaN on Si epi-material substrate for power semiconductor manufacturing, achieving the first implementation of an enhancement mode (E-mode) power semiconductor device that simplifies the design of high-efficiency power conversion systems.
Korea Investment & Securities forecasted that the GaN power semiconductor device market is just beginning to bloom and is expected to rapidly replace existing silicon power semiconductors. They anticipate benefits for CJ Electronics’ sensor devices and GaN power semiconductor device sectors due to the growth of the upstream industry.
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