April 20, 2024
GaN Semiconductor Market

GaN Semiconductor Market Projected to Accelerate Due to Increased Adoption of Next Generation Wireless Infrastructure

The GaN semiconductor market has seen noteworthy growth in recent years owing to rising demand for fast cellular connectivity and expanded 5G network deployment worldwide. GaN offers various advantages over other traditional semiconologies including gallium arsenide (GaAs) and silicon such as superior conductivity, higher breakdown voltage, and ability to operate at higher temperatures, power levels, and frequencies. These properties make GaN an ideal solution for wireless communication infrastructure and power electronics applications. The increasing usage of next generation networking hardware has substantially increased the utilization of GaN RF power amplifiers, transistors, and diodes.

GaN semiconductors are widely used in radio frequency wireless infrastructure to amplify and transmit 5G signals from cell towers to end user devices. They allow telecom base stations and networking equipment to broadcast robust connectivity over wider areas compared to previous technologies. GaN components also enable much faster data transfer speeds and enhanced mobile broadband capabilities. The energy efficiency of GaN reduces cooling requirements and operational costs for telecom operators. Its wide bandgap characteristics further support uninterrupted transmission of multimedia content in complex urban environments and indoor locations.

The Global GaN Semiconductor Market is estimated to be valued at US$ 3.88 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the GaN Semiconductor Market Size are Immersion, Texas Instruments Incorporated, Precision Microdrives Limited, Johnson Electric Holdings Limited, AAC Technologies, Analog Devices, Inc., ALPS ALPINE CO., LTD., Microchip Technology Inc., Cypress Semiconductor Corporation, Methode Electronics, NIDEC COPAL ELECTRONICS, SMK ELECTRONICS CORPORATION U.S.A, Visteon Corporation, Semiconductor Components Industries, LLC, Synaptics Incorporated, Apple Inc., and SAMSUNG. The widespread adoption of 5G networks across North America, Europe, and Asia Pacific is a major opportunity for industry participants. GaN components allow telecom operators to cost-effectively upgrade existing infrastructure for 5G networks rollouts. Technological advancements including improving manufacturing yields and reducing die size and costs are expanding GaN applications from mobile devices to electric vehicles, industrial motor controls, and renewable energy systems.

Market Drivers

The dominant market driver is the large-scale transition to 5G wireless services worldwide which is propelling the demand for advanced RF semiconductor technologies like GaN. 5G networks require exponentially higher bandwidth capabilities to support emerging technologies such as IoT, autonomous vehicles, augmented/virtual reality, and industrial IoT. GaN excels at efficiently transmitting high frequency signals over long distances. The superior RF performance of GaN amplifiers enables seamless next generation wireless coverage. Additionally, the increasing electrification of automobiles including electric and plug-in electric vehicles is raising demand for more efficient semiconductor materials to power charging systems and enhance vehicle performance.

Current Challenges in GaN Semiconductor Market:

The GaN semiconductor market is facing various technological and commercial challenges. GaN devices are more difficult to manufacture as compared to conventional silicon chips. Growing and depositing high-quality GaN crystal layers is a complex process which requires high temperatures and specialized equipment. This increases the cost of GaN wafers. Another challenge is the lack of standardization in terms of fabrication processes and design rules. Each manufacturer follows its own proprietary techniques which hampers interoperability. This restricts the usage of multi-vendor supply chains.

SWOT Analysis
Strength: GaN exhibits superior material properties compared to silicon and gallium arsenide. It can operate at much higher temperatures, voltages and frequencies. This enables the development of more efficient and compact power electronic and RF devices.
Weakness: High barrier of entry into GaN fabrication due to burdensome investment requirements. Limited availability of GaN epi-wafer supply further pushes up prices.
Opportunity: Growing demand for fast and high-power charging solutions for electric vehicles and consumer electronics. Increase in number of 5G base stations worldwide which will boost the uptake of GaN RF devices.
Threats: Stiff competition from silicon and Gallium nitride on phosphide (GaNP) in certain applications. Dependence on few dedicated foundries for GaN wafer manufacturing can disrupt supply chains.

Geographical Regions
North America accounts for the largest share of the GaN semiconductor market in terms of value. This is attributed to the high concentration of RF device, power electronics and EV manufacturers in the region which drives the demand for GaN semiconductors. The USA government’s initiatives to develop domestic semiconductor manufacturing capabilities through acts like CHIPS act will further accentuate the North American market.

Asia Pacific region is poised to witness the fastest growth during the forecast period. This can be accredited to increasing adoption of 5G networks, rapid EV charging networks and consumer electronics manufacturing in nations such as China, Taiwan, South Korea and India. The presence of leading foundries such as TSMC and UMC along with key OEMs provides impetus to the APAC GaN semiconductor market.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it