[News] Samsung Reportedly Shifts GaN Strategy to Foundry on Customer Growth; Operations May Start in July

Samsung may be pivoting its GaN power semiconductor strategy. According to The Elec, the company is expected to prioritize foundry services amid comparatively stronger demand, rather than device sales, where it has reportedly struggled to attract customers.

Sources say Samsung Electronics failed to secure final purchase orders for its GaN devices after samples delivered to several customers earlier this year fell short of required quality and performance standards, preventing the business from advancing to mass production. Samsung also exited a government-backed project before completion, the report adds.

Why Samsung Struggled to Secure GaN Device Customers

Industry sources cited low efficiency as a factor behind Samsung’s difficulty in securing device customers. As the report indicates, one key metric used to evaluate the company’s GaN products — on-resistance (RDS), which measures internal resistance during current flow — reportedly fell short of customer requirements. Lower RDS reduces power loss and heat generation, improving efficiency, the report adds.

Samsung’s inability to supply GaN products in module form also appears to have hindered customer acquisition, as the report indicates. Initially, the company planned to offer GaN products as modules by integrating multiple components with GaN devices. However, Samsung is now understood to have effectively abandoned the module business. An industry source said customers wanted GaN products in module form, but Samsung could only supply devices, causing supply contracts to collapse.

Samsung’s GaN Foundry Business Gains Momentum

Unlike its GaN device business, Samsung’s foundry business is said to be progressing steadily. The company has reportedly secured multiple foundry customers and could begin operations as early as July, while demand continues to grow. The report adds that customers previously using rival foundries are considering placing new orders with Samsung Electronics.

As noted by the report, customers may be more willing to shift GaN foundry orders to Samsung because, unlike conventional silicon semiconductors, GaN involves relatively low photomask redesign costs when changing foundries. This makes multi-foundry strategies more practical, offering greater pricing leverage and supply flexibility. However, as the report notes, Samsung may struggle to absorb rising demand due to the complexities of GaN manufacturing, where maintaining stable resistance performance is critical.

Competition is also intensifying. According to another report from The Elec, domestic rival DB HiTek plans to begin mass production of GaN foundry services as early as 2H26. Meanwhile, SK keyfoundry is also targeting the GaN foundry market, though mass production is reportedly still some time away.

Samsung’s push into GaN also appears to align with broader efforts to expand its presence in next-generation power semiconductors. According to ETNews, Samsung has reportedly restarted its silicon carbide (SiC) foundry business, aiming to secure an early foothold in the market while improving utilization of existing 8-inch foundry lines. Industry observers expect mass production to begin in 2028.

Read more

• [News] GaN Industry Enters a New Phase as TSMC Licenses GaN Technologies to VIS and GF
• [News] Samsung’s 8-Inch GaN Production Line Reportedly Gets Ready

(Photo credit: Samsung)