How GaN is changing the future of semiconductors

European chipmaker Infineon is betting on next-generation power semiconductors - used in everything from ultra-high-speed cell phone chargers to electric vehicles - to spur growth in a sluggish broader chip market.

Power semiconductors are part of power management systems that can withstand high voltages and currents. Infineon is targeting advanced materials that are expected to have higher capacity and efficiency than traditional silicon-based power chips.

Adam White, the company's president for power and sensor systems, told Nikkei Asia that Infineon is particularly bullish on gallium nitride (GaN) chips. "Our goal is to be the [chip industry] leader in power systems," White said. "We see the tipping point for GaN happening in real time."

The company predicts that the market for GaN chips will grow at a rate of 56 percent per year through 2027.

Infineon recently disclosed an $830 million deal to acquire Ottawa chip designer GaN Systems to expand its product portfolio and "strengthen its leadership position in power systems," according to White, who told Nikkei Asia that the deal, which is subject to regulatory approval, would allow it to White told Nikkei Asia that the deal, which is subject to regulatory approval, would nearly double the number of its R&D team specializing in GaN chips to more than 450 people and increase its global customer base to 2,000.

Power chips built on gallium nitride are more energy efficient, and the same capacity can be compressed into a smaller space than chips built on ordinary silicon wafers, meaning chargers and adapters can also be made smaller.

For example, the current iPhone 14 adapter has an output power of 20 watts, but using gallium nitride materials, that can be increased to about 120 watts at a similar size. For users, this means being able to fully charge a smartphone in less than 10 minutes, according to industry executives and analysts.

Another area of interest for Infineon is silicon carbide (SiC), both known as wide-bandgap semiconductors. Compared to the more common silicon-based chips, SiC can handle higher voltages and is more durable at higher temperatures. Of the two, silicon carbide is considered more suitable for power chips used in high-power electric vehicle chargers and energy storage systems.

In addition to the acquisition of GaN Systems, Infineon is spending €2 billion to expand its GaN and SiC chip production capacity at its plants in Güring, Malaysia and Firach, Austria.

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