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YG PRESS NEWS – Investment and M&A to transform power SiC and GaN markets

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Power SiC and GaN continue their growth trajectories, aiming to surpass $10 billion and $2.25 billion, respectively, by 2029, despite short-term headwinds from the global economy.

  • The power GaN market is projected to grow beyond US$2.25 billion by 2029, with a 44% CAGR from 2023 to 2029.
  • The power SiC market is expected to exceed US$10B in 2029.
  • Over the last six months, more than US$1.6 billion in investments, including M&As and other funding, have been announced in this industry.

According to Yole Group and its Power SiC/GaN Compound Semiconductor Market Monitor, multiple SiC players have announced plans for capacity expansion to meet the future demands of end systems, particularly in the automotive sector. Leading device manufacturers such as STMicroelectronics, onsemi, Infineon, Wolfspeed, and ROHM are actively developing facilities in various locations. Recent quarters have seen updates on their investment activities. At the SiC wafer and epiwafer levels, large-scale capacity expansion fueled strong growth in 2023, especially in China, although it also led to overcapacity in SiC materials. Additionally, the advancement of the 8” SiC platform is driving technology scaling and significant cost reductions. Wolfspeed’s MHV fab has been ramping up since its opening in 2022, and more device manufacturers are planning initial volume shipments in the second half of 2024. However, with a slowdown in the BEV market, the SiC market is expected to see lower growth in 2024. The supply chain is de-stocking in the first half of 2024 and anticipating stronger growth in 2025.

In the power GaN market, Infineon Technologies’ acquisition of GaN Systems for US$830 million is the largest transaction to date in this industry. Another significant development is Renesas’s ongoing acquisition of Transphorm for US$339 million, expected to be completed in 2024. The industry is consolidating, with a shift towards an ecosystem dominated by an IDM business model. More mergers and acquisitions are anticipated, with new players potentially entering the power GaN market with varied backgrounds and strategies. Overall, the power GaN market is projected to grow beyond US$2.25 billion by 2029, with a 44% CAGR from 2023 to 2029, attracting increasing interest. Over the last six months, more than US$1.6 billion in investments, including M&As and other funding, have been announced in this industry… For further details on the Power SiC/GaN Compound Semiconductor Market Monitor Q2 2024, please reach out to us!

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