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[Materials/Equipment] Market Demand is Booming! Compound Semiconductors Are Emerging as a Promising Frontier!
Release Time:
Jun 23,2020
Thanks to their mature manufacturing processes and lower costs, first‑generation silicon-based semiconductor chips have become indispensable components in everyday life. However, silicon semiconductors are constrained by material limitations that prevent them from operating in high‑temperature, high‑frequency, and high‑voltage environments, which has gradually propelled compound semiconductors into the spotlight.
The quality of the substrate and epitaxy is crucial in determining the characteristics of compound semiconductor devices.
Compound semiconductors primarily refer to second‑ and third‑generation semiconductors such as gallium arsenide (GaAs), gallium nitride (GaN), and silicon carbide (SiC). Compared with first‑generation elemental semiconductors, they exhibit superior high‑frequency and high‑temperature performance.
According to the Topology Industry Research Institute, a subsidiary of the globally renowned research and consulting firm TrendForce, the current supply chain for compound semiconductors primarily operates as follows: substrate manufacturers provide suitable wafers, which are then used by epitaxy facilities to grow the required functional layers. These wafers are subsequently processed by IDM manufacturers or independent foundries, before being assembled and integrated by end‑product manufacturers and ultimately sold to consumers.
Given that compound semiconductor substrates develop certain defects during the growth process, it is necessary to re‑grow the required reaction layers via epitaxial techniques such as MOCVD and MBE before device fabrication, thereby reducing defects and ensuring optimal device performance. In terms of substrates, compound semiconductors currently rely primarily on 6‑inch substrates while striving to meet the demands of various device manufacturing applications, including GaAs, SiC, and GaN on Si/SiC.
Because compound semiconductors have structures involving two or more elements, their preparation of substrates and epitaxial layers is more challenging than that of traditional silicon materials. Therefore, effectively controlling substrate and epitaxial quality is crucial in determining the performance characteristics of compound semiconductor devices.
The COVID-19 pandemic has swept across the globe, dealing a severe blow to compound semiconductor applications.
Compound semiconductors are not a recent development; however, it is only in recent years that they have truly begun to gain widespread adoption and flourish—especially as China has started making large-scale investments in the sector, further boosting industry prosperity. Nevertheless, affected by U.S.–China trade tensions and the sudden outbreak of COVID-19, the applications of the compound semiconductor industry have also been impacted.
The Topology Industry Research Institute points out that RF devices based on gallium arsenide or gallium nitride have been significantly impacted. Among these, gallium arsenide technology is relatively mature; however, since the market is still dominated by mobile phone RF applications, it has been particularly affected, with revenue expected to decline slightly in 2020. In contrast, gallium nitride devices are still in the development stage and are currently mainly used in base station RF technology, with revenue projected to see a modest increase in 2020.
In the realm of power devices, despite being affected by broader macroeconomic conditions, this sector has already become a key focus for compound semiconductor development, with still‑significant growth momentum. Due to the high manufacturing complexity of silicon carbide substrates, the growth rate of silicon carbide power devices remains constrained; continued advancements in substrate technology are expected going forward. By contrast, gallium nitride power device technology is relatively mature: although unfavorable macroeconomic conditions have led to a slowdown in growth, the upward trajectory remains clearly evident.
The technological gap between Chinese manufacturers and major international firms will gradually narrow.
Although the global semiconductor industry has been weighed down by U.S.–China trade tensions and the impact of the pandemic, compound semiconductors, thanks to their unique material properties and burgeoning application demands, have prompted IDMs to successively roll out relevant strategies to respond. Companies such as Qorvo, STMicroelectronics, ON Semiconductor, as well as China’s Sanan Optoelectronics and Innoscience, have all actively engaged in market competition through new products, mergers and acquisitions, or the construction of new production lines, aiming to expand their influence.
According to an analysis by the Toupun Industry Research Institute, while Chinese manufacturers still lag behind their international counterparts in the field of compound semiconductors, the technological gap is expected to narrow steadily thanks to the support of China’s National Big Fund and the continuous strategic deployments of domestic companies. Only by truly understanding market demand can manufacturers seize opportunities to grow and generate profits in the competitive landscape.
Cover image source: Paixin.com
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