In recent years, data center has been one of the key areas for GaN (Gallium Nitride) manufacturers to tap power electronics market, and GaN applications in the data center power supply market have taken a big step forward. Notably, the rise of AI technology has further fueled this market at present.

In the AI ecosystem, data centers have enormous demands for high-speed computing and power. According to a TrendForce report, NVIDIA’s Blackwell platform will be officially launched in 2025, replacing the existing Hopper platform, and will become NVIDIA’s primary solution for high-end GPU, accounting for nearly 83% of all high-end products.

For high-performance AI servers like the B200 and GB200, a single GPU can consume more than 1,000W of power.

Facing soaring power demands, the power specifications for each data center rack will increase from 30-40kW to 100kW, posing significant challenges for data center power systems. The combination of GaN and liquid cooling technologies will be critical to improving energy efficiency in AI data centers.

The hike in chip power consumption requires servers to achieve higher power density and efficiency.

GaN, which reduces energy losses and increases power density, is now seen as one of the key technologies for optimizing energy efficiency in AI data centers, which has attracted many players, including Infineon, Texas Instruments (TI), Navitas, Innoscience, Transphorm, CorEnergy, Danxi Tech, and GaNext, to join the race.

Among them, both Navitas and Infineon have unveiled their AI data center power roadmaps.

Infineon’s AI Data Center Power Roadmap (Source: Infineon)

Combining the unique advantages of Si (Silicon), SiC (Silicon Carbide), and GaN (Gallium Nitride), Infineon has launched a 3 kW PSU and a 3.3 kW PSU, with an 8 kW PSU expected to be available in the first quarter of 2025.

The new 8 kW PSU will support AI racks with outputs of up to 300 kW or more. Compared to the 32 W/in³ density of the 3 kW PSU, its efficiency and power density will increase to 100 W/in³, further reducing system size and lowering operator costs.

In terms of GaN technology, Infineon’s CoolGaN™ solution can provide over 99% system efficiency in PFC topologies. Moreover, GaN Systems, acquired by Infineon, already released a 3.2kW AI server power supply as early as 2022 and unveiled its fourth-generation GaN platform in 2023.

The new platform achieves efficiency exceeding the Titanium level, with power density increased from 100W/in³ to 120W/in³. Thereby, the industry highly expects the synergistic effect created by the combination of these two companies.

Navitas introduced its GaNSafe™ and Gen-3 Fast SiC technology last year, along with a 4.5kW CRPS design, achieving more than double the power density of traditional silicon solutions. In July this year, Navitas unveiled its CRPS185 4.5kW AI data center server power solution, with a power density of 137W/in³ and over 97% efficiency.

Navitas AI Data Center Power Roadmap (Source: Navitas)

Navitas revealed that over 60 customer projects involving 3.2kW and 4.5kW power solutions for data centers are currently under development.

These projects are expected to bring millions of dollars in revenue growth for Navitas’ GaN and SiC business between 2024 and 2025. It aims to begin small-scale production of AI data center power solutions in 2024.

Aside from Infineon and Navitas, other manufacturers like TI, EPC, CorEnergy, GaNext, and Innoscience also set sights on this market.

TI reached an agreement with Delta, the world’s largest server power supply provider (with nearly 50% market share), as early as 2021. Based on GaN technology and TI’s C2000™ MCU real-time control solution, they are developing high-efficiency, high-power server PSU for data centers.

Thus, their joint efforts and future fruit in the AI server power market are highly anticipated.

Beyond AI data center server, humanoid robot industry that enjoys burgeoning growth this year, also injects new vitality into the GaN market.

Humanoid robot is assembled by sensing, control, motor, and battery systems, in which GaN can has its place in LiDAR system, motor drive, DC-DC converter, and battery BMS, among which motor drive plays a critical role.

According to TrendForce, the demand for motor driver in humanoid robot has skyrocketed due to the mounting demands for degrees of freedom.

To achieve higher power output, high-power-density, high-efficiency, and fast-response motor driver are in demand, and GaN is a perfect fit for it, which also has the ability to strengthen overall robot performance in terms of heat management, compact design, and overall system design.

It is reported that Siemens, Yaskawa Electric, and Elmo have already integrated GaN technology into their robotic motors, and the GaN industry chain is gearing up for seizing more opportunities.

Currently, companies such as TI, EPC, Transphorm, Innoscience, Navitas, and CorEnergy are actively promoting GaN adoption in motor drive market. Among them, Transphorm has supplied GaN FET products for Yaskawa Electric’s new servo motor.

TrendForce points out that future robots will exceed our imagination, with precise, fast, and powerful movement capabilities as the key parts, which will inevitably push the motors required to drive these movements advance forward, and this is regarded as a boon for GaN technology.

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(Photo credit: Infineon)

According to TrendForce’s “2024 Global GaN Power Device Market Analysis Report”, the development of the GaN power device industry is expected to accelerate once again as Infineon and Texas Instruments allocate more resources into GaN technology.

In 2023, the market size of global GaN power device was around USD 271 million, and it is projected to grow to USD 4.376 billion by 2030 at a compound annual growth rate (CAGR) of 49%.

Notably, the proportion of non-consumer applications is expected to increase from 23% in 2023 to 48% by 2030, with automobile, data center, and motor drive being the core application scenarios.

• GaN Expected to Make Great Difference in Reducing Heat and Improving Efficiency in AI Era

The evolution of AI technology has driven the continuous increase in computing power demand, making the power consumption of CPU and GPU an increasingly striking issue. To meet the requirements of more advanced AI computations, server power supply is required to further enhance efficiency and power density, and thus, GaN has emerged as a key solution.

Delta, the world’s largest server power supply provider, holds nearly 50% of the market share. Observing the advancement of its server power supplies, the power density has increased from 33.7W/in³ to 100.3W/in³ over the past decade, while power levels has reached 3.2kW and even 5.5kW, and the next generation is expected to exceed 8kW.

TrendForce’s research indicates that AI server is expected to account for 12.2% of overall server shipment in 2024, an increase of ~3.4% from 2023, while the annual growth rate for general server shipment is only 1.9%.

In face of such an attractive opportunity, both Infineon and Navitas Semiconductor have announced technical roadmaps for AI data center this year.

Infineon highlights the significant advantages of combining liquid cooling technology with GaN at lower junction temperature, which will enable data center to maximize efficiency, meet the growing power demands, and overcome the challenges posed by server heat increase.

• Potential of GaN’s High-Frequency Characteristics can be Fully Tapped in Motor Drive Applications

In motor drive applications like robotics, the potential of GaN is gradually emerging. Compared to industrial robots, humanoid robots have a significantly higher degree of freedom (DoF), greatly increasing the demand for motor drivers.

It’s learned that the joint modules of humanoid robots bear the main tasks of exertion and braking. To achieve higher explosive power, motor drivers with high power density, high efficiency, and high responsiveness are needed. As a result, GaN has attracted market attention, especially in load-bearing areas like the legs.

Texas Instruments and EPC (Efficient Power Conversion) have been dedicated to driving GaN’s application in the motor drive field, drawing new players into the market.

Robotics is expected to embrace a future beyond imagination, where precise, fast, and powerful motion capabilities are crucial, and the motors driving these movements will inevitably advance forward, which will be a boon for GaN.

• GaN Provides New Solutions for Automotive Power Electronics

While SiC thrives in the automotive industry, GaN is also gaining traction in this field, with on-board chargers (OBC) considered the best entry point.

The first automotive-grade GaN power product meeting AEC-Q101 standard was released by Transphorm (now Renesas) in 2017, and several manufacturers have since introduced a wide range of automotive-grade products so far.

Overall, although GaN still faces several technical challenges in entering inverter and OBC power system, it is believed that with continuous investment from major automotive chip companies like Infineon and Renesas, GaN will soon become a key component in automotive power systems.

• Consumer Electronics Remain the Main Applications for GaN

Consumer Electronics still holds the biggest proportion among GaN power device applications, in which GaN’s footprint is quickly expanding from fast chargers to home appliances and smartphones.

Specifically, GaN has been widely adopted in low-power smartphone fast chargers, and next will enter into more demanding applications like notebook and home appliance power supplies. Other potential consumer applications include Class-D audio, smartphone over-voltage protection (OVP), etc.

TrendForce believes that GaN power device industry is at a critical breakthrough moment, with several potential applications simultaneously boosting rapid growth.

Moreover, new structures and processes are expected to be introduced in built on better reliability to get into more complex high-power, high-frequency scenarios, injecting new momentum into the industry.

In terms of industry development and market landscape, Fabless companies have been particularly active in the past.

However, as the industry continues to consolidate and the application markets gradually open up, traditional IDM (integrated device manufacturer) giants are expected to gain significant influence, bringing new major changes to the future landscape of the industry.

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(Photo credit: Infineon)

TSMC announced last year that it would build a plant in Dresden, Germany. The plant is originally expected to break ground as early as Q4 this year, but now it may start sooner. According to a report from Deutsche Welle, TSMC’s Dresden plant will begin construction within a few weeks, which means it will start this fall, aligning with the company’s previously announced timeline.

The TSMC Germany plant was initially scheduled to begin construction in the second half of 2024 and to start production by late 2027. The new plant is expected to create approximately 2,000 direct high-tech jobs. TSMC will hold a 70% stake in the plant, with Bosch, Infineon, and NXP each holding 10% stakes, and TSMC will operate the facility. The EU and the German government are subsidizing about half of the plant’s investment.

To ensure the plant can commence production smoothly in 2027, the city of Dresden is investing EUR 250 million to build an industrial water supply system and enhance the reliability of the local power grid.

The TSMC Germany plant is expected to use 28/22nm planar CMOS and 16/12nm FinFET process technologies, with a monthly production capacity of approximately 40,000 300mm (12-inch) wafers.

On the other hand, another global semiconductor giant, Intel, was said to have delayed its construction of Fab 29.1 and 29.2 in Magdeburg, Germany, as the new timeline pushed the start of construction to May 2025, according to a report by Tom’s Hardware, citing German media outlet Volksstimme.

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(Photo credit: TSMC)

Due to the impact of international situations and uncontrollable factors, the global semiconductor supply chain is undergoing a shift. According to a report from WeChat account DRAMeXchange, the Southeast Asian region, with its advantages in labor and development conditions, has become the preferred location for major global companies. Countries such as Malaysia, India, and Singapore have been targeted by many manufacturers, who are rapidly setting up operations to secure a foothold.

On June 5, Taiwan-based contract chipmaker Vanguard International Semiconductor Corp. (VIS) announced to team up with Netherlands-based semiconductor supplier NXP Semiconductors N.V. to set up a joint venture, VisionPower Semiconductor Manufacturing Company (VSMC), and build a 12-inch fab in Singapore.

The fab will have an investment of approximately USD 7.8 billion. VIS will invest USD 2.4 billion and take a 60% stake, with NXP to invest USD 1.6 billion and a 40% share. The fab will be operated by VIS.

Besides, both parties have promised to allocate a total of USD 1.9 billion of long-term capacity security deposit and usage fees, with the remaining funds (Loans included) to be provided by third parties.

VSMC will run as an independent wafer manufacturing service provider, offering a certain proportion of its capacity to both partners. By 2029, the fab’s monthly 12-inch wafer capacity is expected to reach 55,000 pieces, which is projected to create around 1,500 jobs in Singapore. Following the successful mass production of the first fab, both sides will consider building a second one.

This fab will use 130nm to 40nm technologies to produce mixed-signal, power management, and analog products for markets including automotive, industrial, consumer electronics, and mobile terminals. Relevant technology licensing and transfers are expected to come from TSMC. VSMC will commence construction of the first fab in 2H24 , pending approval from relevant regulatory authorities, and it is expected to start mass production in 2027.

Currently, VIS has five 8-inch fabs, respectively located in Taiwan and Singapore. Three of them are based in Hsinchu (Taiwan) and one in Taoyuan (Taiwan). In 2023, the average monthly capacity was about 279,000 8-inch wafers.

On this collaboration with NXP, VIS Chairman Fang Leuh stated that both parties wish to own a 12-inch fab as they currently only have 8-inch fabs. More than half of the new fab’s capacity has already reserved upon long-term commitments from customers, including NXP. He also noted that setting up a fab in Singapore offers several advantages.

Since VIS is held by TSMC, industry experts believe that the establishment of the new VIS fab is driven in part by the need to meet the demands of TSMC’s mature process customers. Mature processes above 90nm account for a small single-digit percentage of TSMC’s revenue but retaining all customers is also necessary to match orders from various manufacturing capacities.

As such, VIS will take over TSMC’s customer orders. Influenced by multiple factors, the order transfer effect is expanding, and VIS has recently received new orders from several customers, like Qualcomm and MPS. That means order transfer effect in 2H24 has become evident.

It is worth noting that Singapore is being seen as a critical hub of the Asian semiconductor industry. It currently boasts a complete semiconductor industry chain, covering design, manufacturing, packaging, test, equipment, materials, and distribution, with more than 300 semiconductor-related companies already established.

According to another report from WeChat account DRAMeXchange, multitudes of semiconductor companies, including Texas Instruments, STMicroelectronics, Infineon, Micron, GlobalFoundries, TSMC, UMC, VIS, and ASE, have set up branches or expanded production in Singapore.

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(Photo credit: VIS)

According to a report from Reuters, Malaysian Prime Minister Anwar Ibrahim announced the National Semiconductor Strategy on May 28th, which includes providing at least USD 5.3 billion in financial support and training 60,000 semiconductor engineers, aiming to make Malaysia a global chip hub.

Over the next 5 to 10 years, at least MYR 25 billion (roughly USD 5.33 billion) will be allocated to cultivate chip talent and strengthen local businesses, with funding from Malaysia’s sovereign wealth funds such as Khazanah Nasional.

As per the semiconductor strategy, Malaysia plans to train 60,000 talents covering all aspects of chip manufacturing, including IC design, packaging, and testing. Universities and enterprises will participate in the training, and the government will also support local engineers in engaging in chip design IP.

Prime Minister Anwar revealed that Malaysia intends to establish at least 10 local  companies in design and advanced packaging for chips. If Malaysia wants to attract investment from global chip giants, cultivating more local semiconductor talent is crucial, especially as the country aims to enhance its advanced chip manufacturing capabilities.

The Malaysian government aims to attract at least MYR 500 billion (roughly USD 106.5 billion) in funds through domestic direct investment (DDI) and foreign direct investment (FDI) into fields such as chip design, advanced packaging, and manufacturing equipment.

Amidst the U.S.-China rivalry and other geopolitical tensions, global companies are seeking to diversify their supply chains. Facing competition between the U.S. and China, Malaysia is reportedly keen to maintain a neutral position in the semiconductor supply chain landscape.

Malaysia began engaging in the semiconductor industry over 50 years ago. According to the Malaysian Investment Development Authority (MIDA), the country currently provides 13% of global testing and packaging.

In December 2021, U.S. chip giant Intel announced an investment of over USD 7 billion to build a chip packaging and testing plant in Malaysia, expected to start production this year. Last year, German semiconductor giant Infineon announced an investment of EUR 5 billion to establish the world’s largest 200mm silicon carbide power chip plant in Malaysia over the next five years.

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(Photo credit: ASE Group)