semiconductor business… Receiving attention for strengthening the semiconductor ecosystem such as electric vehicles
DB HiTek Is promoting new gallium nitride (GaN) and silicon carbide (SiC) based semiconductor business.
GaN and SiC semiconductors are products that are in the spotlight as next-generation power semiconductors. They are superior in power efficiency and durability compared to conventional silicon (Si) based semiconductors.
Although this is a promising field for growth as the electric vehicle market expands, only a handful of companies have been able to manufacture semiconductors with new materials such as GaN and SiC in Korea.
Many are paying attention to whether the base for next-generation power semiconductor production will be expanded and synergy with electric vehicle industry will be created as DB HiTek, a leading domestic foundry company, enters the market.
According to the industry on the 22nd, it was found that DB HiTe kis advancing on commercializing GaN and SiC power semiconductors. The company is reviewing facilities for manufacturing GaN and SiC along with market research.
A well-informed official from DB HiTek said, “Considering that the delivery period of equipment is at least one year, it is likely that an order for equipment (DB HiTek) will be placed soon.” The GaN and SiC semiconductor line seems to be built as early as next year.
GaN and SiC-based semiconductors have higher durability and power efficiency compared to conventional Si-based semiconductors. Due to these advantages, demand for GaN and SiC-base semiconductors is increasing in the fields that prioritize stability for high consumption of power such as electric vehicles, artificial intelligence (AI), and 5th Generation (G) mobile communication.
According to YoleDévelopment SA, a market research firm, the GaN semiconductor market recorded $46 million last year. The market is expected to grow at a CARG of 70% and reach $1.1 billion in 5 years. In particular, the automobile sector is expected to grow at an average annual rate of 185%. SiC semiconductors are also expected to grow at a CAGR of 32% from $700 million in 2020. This is why GaN and SiC semiconductors are attracting attention as next-generation power semiconductors.
It is understood that DB HiTekis preparing for the GaN and SiC semiconductor business to respond to the rapidly-growing market and diversify its business.
DB HiTekis a foundry company that allocates power management integrated circuits (PMIC), DNS, DHCP, IPAM (DDI), and image sensors designed by customers. All chips manufactured by DB HiTekare based on 8-inch silicon wafers. Amidst this, it is possible to expand foundry services by introducing GaN and SiC processes.
It is expected to expand the business as a next-generation power semiconductor manufacturer after enabling not only the production of foundries but also of their own semiconductors. Even though DB Hitek’s main business is foundry, it is also releasing self-developed chips.
Above all, DB HiTek's move is drawing attention as it is expected to contribute in strengthening the highly-lacking ecosystem of the next-generation power semiconductor industry in Korea. Currently, the only domestic companies that can produce SiC power semiconductors are Yes Power Technix and Power master Semiconductor.
As a leading foundry company in Korea, DB HiTek is expected to have a significant production capacity. DB HiTek official said, “It will be an opportunity to solve the problem of supply shortage of next-generation power semiconductors where GaN and SiC power semiconductor production infrastructure is insufficient.”
Securing a supply chain for semiconductors for vehicles became a hot topic as shortage of semiconductors is causing setbacks in completion of car production. Due to this, DB HiTek is under the spotlight whether its investment will contribute to strengthening the domestic ecosystem and supply chain.
DB HiTekdid not go in detail regarding to the advancement of the next-generation power semiconductor business such as GaN and SiC, saying, “Nothing has been confirmed yet.”
By Staff Reporter Dong-jun Kwon