On July 1, GlobalFoundries (GF), a major foundry player, announced that it has acquired Tagore Technology’s production-verified proprietary GaN (Gallium nitride) power IP portfolio, which refers to a high-power density solution designed to enable higher efficiency and better performance of automobile, IoT, and AI data center applications where power supply is widely used.

Founded in January 2011, Tagore Technology focuses on developing GaN-on-Si (Gallium nitride on silicon) semiconductor technology for RF and power management applications.

As part of the acquisition, a team of veteran engineers from Tagore, dedicated to developing GaN technology, will join GF. “With this acquisition, GF takes another step toward accelerating the availability of GaN and empowering our customers to build the next generation of power management solutions that will reshape the future of mobility, connectivity and intelligence,” said Niels Anderskouv, chief business officer at GF.

It is worth mentioning that in February 2024, GF received a direct subsidy of USD 1.5 billion under the US CHIPS and Science Act, with part of the funds allocated to the mass production of critical technologies, including GaN.

By combining this manufacturing capability with the technical expertise of the Tagore team, GF is well positioned to transform the efficiency of AI systems and enable lower power consumption particularly pivotal for edge or IoT devices.

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• [News] SK keyfoundry Advances in GaN Power Semiconductors, Reportedly Producing for Tesla Soon
• [News] Infineon in GaN and SiC Expansion Drive Advancements in the New Energy Market

(Photo credit: GF)

The chip war between the U.S. and China keeps escalating, as China’s new regulation would reportedly take effect soon. This time it has a new target – rare-earth materials. According to the reports from Nikkei and Tom’s Hardware, the new regulation would be effective on October 1, asserting state ownership over its rare-earth materials critical for semiconductor production.

This measure aims to protect national and industrial interests, though it is seen internationally as a strategy in the ongoing trade dispute with the U.S., the reports noted. By prohibiting unauthorized access to or disruption of rare-earth resources by any individual or organization, the regulation signifies the state ownership over crucial rare earth metals like gallium and germanium.

The regulation, with its large scope, encompasses the entire rare-earth element supply chain, including mining, smelting, processing, distribution, and export.

Starting from October, 2022, the U.S. has launched a series of export controls, targeting to limit China’s access to advanced semiconductor technologies, while tech giants including Intel, Qualcomm and NVIDIA are not allowed to ship some of their most cutting-edge chips to China. Now a new development seems to emerge, as the White House is said to consider additional restrictions on China’s access to gate-all-around (GAA) transistor technology as well as high-bandwidth memory (HBM), according to reports from Bloomberg and Tom’s hardware.

China’s latest move may be a reaction to U.S. export regulations on advanced wafer fabrication equipment, the reports stated.

It is worth noting that as of 2023, China accounted for approximately 70% of global rare-earth element production, according to the reports. Particularly in the case of gallium, which is essential for power ICs, China dominates around 94% of global supply.

While the production of high-performance components such as CPUs, GPUs, and memory may not be severely affected, restrictions on gallium nitride (GaN) and gallium arsenide (GaAs) could notably affect power chips, radio frequency amplifiers, LEDs, and other critical applications, the reports said.

On the other hand, China’s upcoming regulation on rare earth metals may have other impacts. The reports noted that gallium and germanium, being not scarce, has been maintained at low price levels in China, which makes mining them elsewhere relatively unprofitable. The new restrictions, therefore, have influenced the prices of these metals, prompting companies in other countries to initiate extraction projects, potentially reducing China’s market dominance in the long run.

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• [News] US Reportedly Mulls to Further Limit China’s Access to GAA Chip Technology and HBM
• [News] Escalating US China Tech War! China Reportedly Tightens Grip on Intel and AMD, Impacting TSMC

SK keyfoundry, a subsidiary of memory giant SK hynix, has achieved notable progress in the development of Gallium Nitride (GaN) power semiconductors. According to the latest report by Business Korea, the foundry would begin producing power semiconductors for Tesla in the second half of 2024.

According to the report, SK keyfoundry announced in early June that it has achieved the primary device characteristics of a 650V GaN High Electron Mobility Transistor (HEMT), which surpasses traditional silicon-based semiconductors in both efficiency and durability. This advancement aligns with SK keyfoundry’s plan to finalize the development of GaN power semiconductors by the end of this year.

It is worth noting that TSMC has also entered the GaN market a few years ago, as it provides GaN process for manufacturing 100/650V discrete GaN power devices for customers. For instance, in 2020, the world’s largest foundry has announced to collaborate with STMicroelectronics. According to its press release, ST’s GaN products will be manufactured using TSMC’s leading GaN process technology, including applications relating to automotive converters and chargers for hybrid and electric vehicles.

Regarding the development of SK keyfoundry, Business Korea noted that the company established an official team in 2022 to focus on the development of GaN technologies. Citing industry sources on June 20^th, the report stated that SK keyfoundry will reportedly begin producing power semiconductors for Tesla in the second half of this year.

Moreover, it also mulls to broaden its business scope, entering markets like fast-charging adapters, data centers, and energy storage systems afterwards. Starting in November, the company plans to manufacture power management chips (PMIC) at its 8-inch wafer fab in Cheongju.

Though foundries have not significantly contributed to SK hynix’s revenue so far, the development of power semiconductors could boost overall foundry sales. According to the report, SK keyfoundry also provides contract manufacturing for non-memory semiconductors such as Display Driver ICs (DDI) and Microcontroller Units (MCU), further diversifying its product lineup.

In the current landscape of the new energy market, third-generation semiconductors such as SiC and GaN have gained significant traction. SiC (Silicon Carbide) and GaN could offer significant benefits over traditional silicon.

To elaborate, semiconductor materials have the so-called “bandgap,” an energy range in a solid where no electrons can exist. According to German chipmaker Infineon, GaN has a bandgap of 3.4 eV, compared to silicon’s 1.12 eV bandgap. The wider bandgap of GaN allows it to sustain higher voltages and temperatures than silicon. While SiC dominates the high-power domain, GaN excels at lower power levels, offering lower conduction losses.

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• [News] Infineon in GaN and SiC Expansion Drive Advancements in the New Energy Market

(Photo credit: SK keyfoundry)

According to a report from Korean media outlet THE ELEC, a senior executive at analog chip manufacturer Texas Instruments (TI) stated that the company is transitioning its production of gallium nitride (GaN) chips from several 6-inch fabs to 8-inch fabs.

The same report further noted that Jerome Shin, manager of Texas Instruments’ Korean subsidiary, stated at a press conference in Seoul that Texas Instruments is preparing to build 8-inch fabs in Dallas and Aizu, Japan. This move will enable the company to offer more competitively priced GaN chips.

Jerome Shin pointed out that there has been a shift in the perception of GaN chips compared to silicon carbide (SiC) chips since 2022. While GaN chips were previously considered more expensive, this perception is changing because Texas Instruments is transitioning its production from 6-inch fabs to 8-inch fabs. Producing larger wafers means more chips per wafer, leading to increased productivity and lower costs for GaN chips.

Currently, the price of GaN chips is already lower than that of SiC chips. Once the transformation of Texas Instruments’ fabs in Dallas and Aizu, Japan is completed, they will be able to offer even more affordable solutions. Expansion at the Dallas facility is expected to be completed by 2025, although Jerome Shin did not disclose the timetable for the Aizu facility.

However, some industry sources cited in the report suggest that Texas Instruments’ plan may lead to a comprehensive decline in GaN chip prices.

Currently, Texas Instruments is also transitioning the production of power management IC from 8-inch fabs to 12-inch fabs. This move has already resulted in a decrease in the prices of power management chips across the industry.

Still, reportedly, transitioning the production of power management chips from 8-inch fabs to 12-inch fabs could enable Texas Instruments to save over 10% in costs.

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• [News] Major Acquisition in SiC/GaN Semiconductor Industry Concludes as Infineon Completes GaN Systems Purchase

(Photo credit: Texas Instruments)

Advancements continue in China’s semiconductor landscape with progress reported in five major semiconductor projects. Companies like BYD Semiconductor, Empyrean Technology, CGEE, Sinopack, and CETC (Shanxi) have witnessed recent developments across semiconductor materials, design, packaging and testing, and power semiconductors.

BYD Semiconductor: completed the first phase of power devices and sensor controller project

BYD Semiconductor has successfully completed the first phase of its Power Devices and Sensor Controller project, focusing on automotive-grade semiconductors. This project aims to establish a production line capable of producing 720,000 power device products and CNY 6 billion (about USD 847 million) sets of optical microelectronics products annually, contributing to an expected annual output value of CNY 15 billion (about USD 2.1 billion). The devices produced are critical components for new energy vehicles.

Empyrean Technology: 7 semiconductor-related projects signed to build in Xi’an

Empyrean Technology is an EDA and services provider, focusing on analog design and digital SoC solution.

Empyrean Technology’s Xi’an R&D base, along with six other projects, has been signed in Xi’an High-tech Zone. Empyrean Technology envisions its Xi’an R&D base as the largest center in northwest China. According to CCTV, these projects included fields such as integrated circuits and network security, providing essential technical support to address challenges arising from the U.S. bans.

CGEE: completed headquarters production and R&D center project

CGEE specialize in semiconductor-grade single crystal silicon furnaces (8-12 inches), 6-8 inch SiC, GaN, and associated crystal growth equipment and processes.

On November 28, CGEE highlighted the completion of the opening ceremony for its headquarters production and R&D center project. Focused on expanding production capacity, the company clarified that this project is an extension of its core business. It involves technical research, development, and upgrades in crystal growth equipment and processes, hastening the industrialization of research outcomes. This strategic move aims to assist the company in diversifying its product line to better align with customer demands.

In a recent interview, CGEE highlighted its proactive approach to enter the Taiwan market, engaging in close technical exchanges with customers. The company has not only secured bulk orders but also witnessed a continuous increase in order quantities. Furthermore, there is an active strategic deployment in overseas markets. CGEE emphasized the successful delivery and acceptance of its semiconductor-grade single crystal silicon furnaces and SiC single crystal furnaces in Taiwan.

Sinopack’s subsidiary Bowei: completed third-generation semiconductor power device industrialization project

Bowei focus on GaN communication base station RF device. The project’s annual capacity is planned to reach 6 million units.

On November 27, Sinopack announced that its subsidiary, Bowei, has successfully completed the expansion project for the third-generation semiconductor power device industrialization. The key products of this project include GaN communication base station RF chips and devices, with an annual production capacity planned at 6 million units.

Sinopack highlighted that Bowei primarily engages in integrated circuits design, packaging, testing, and sale of GaN communication RF integrated circuits products. This includes including GaN communication base station RF integrated circuits and devices, along with microwave communication RF integrated circuits and devices.

CETC (Shanxi): Completed Its third-generation semiconductor technology innovation center project

CETC(Shanxi) engage in the research, development, and industrialization of high-purity graphite and carbon-based material equipment.

The third-generation semiconductor technology innovation center of CETC (Shanxi) is situated in the Shanxi Transformation and Comprehensive Reform Demonstration Zone (Shanxi ZGQ). This center includes the trial verification line and supporting projects, along with the microelectronics smart manufacturing industry base project. The construction is planned in two phases. Upon completion of the first phase, it will possess the capacity to produce 600 units/sets of smart manufacturing equipment annually, along with 24,000 pieces/year of ceramic substrates and modular circuits. The facility will also establish a 6-inch wide bandgap semiconductor manufacturing equipment process verification platform and a common technology research and development platform.
(Image: BYD Semiconductor)