2023/10/3 上午9:54

EPC optimistic about GaN sector

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EPC optimistic about GaN sector

Nuying Huang, Taipei; Rodney Chan, DIGITIMES Asia

Tuesday 19 September 2023

Credit: DIGITIMES

Ecient Power Conversion (EPC) is optimistic about GaN despite geopolitical challenges and the changing landscape in the

compound semiconductor sector.

China's restrictions, announced in July, on exports of gallium and germanium have roiled the compound semiconductor sector.

And Inneon's proposed acquisition of GaN Systems is also promising to reshape the supply chain.

But EPC co-founder and CEO Alex Lidow has pointed out that components that the company makes using its GaN-on-Si wafer

technology consist of very limited amounts of gallium. EPC's GaN process is not based on gallium, but rather on TMGa as the

source material for making GaN. TMGa is not on China's list of export restrictions.

But to minimize the risk, EPC is still working to secure supply of TMGa from more sources, in order to increase the stability of

supply, the sources said.

There is also growing pressure from Inneon in the GaN sector. In March 2023, Inneon announced a US$830 million deal to

acquire GaN Systems. The proposed deal is still being reviewed by government regulators in various countries, but it shows

Inneon's strong ambitions in the compound semiconductor power device sector.

Inneon will become a top-3 player in the GaN sector if the deal goes through, leapfrogging EPC, who was a top-5 player in 2021.

Inneon will also be able to build up a product portfolio covering Si, GaN and SiC components.

Lidow noted that it is understandable that big companies with sucient capital would want to acquire others that could

complement their product lines.

For EPC, its short learning curves allow it to achieve technological maturity in the shortest time possible. And its patents have

allowed it to establish industry standards and authority, particularly in component specications, packaging and performances.

2023/10/3 上午9:54

EPC optimistic about GaN sector

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According to estimation by the US Department of Energy concerning the global market shares of Si, GaN and SiC components, Si

had a 95% share in 2022, but its share will drop to 80% in 2028. In 2022, SiC's share was less than 5%, but will jump to 17% in

2028. For GaN, its share in 2028 will be only 3%.

Lidow said that GaN is nding itself in a situation similar to that Si MOSFET faced 40 years ago when people were skeptical of the

possibility of it replacing bipolar transistors.

But MOSFET reached a turning point in 1988 when it started to gain dominance in the power electronics sector. Although bipolar

transistors are still being used, its market share is now much small than that for Si MOSFET.

GaN development is similar. The turning point will come when advanced computing, automotive electronics, aerospace

applications and consumer electronics embrace GaN more than Si MOSFET.

GaN's cost competitiveness is also comparable to Si MOSFET's, and GaN's potential is much bigger than Si MOSFET's. The crucial

thing now is to reshape many market researchers' outdated belief that GaN is too expensive.