Status of the Compound Semiconductor Industry 2024

Introduction

• Acronyms
• Methodology
• Table of contents
• Identity card
• Report objectives
• Scope of the report
• About the authors
• Companies cited
• What we got right and what we got wrong

3-Page Summary                                       

Executive Summary

Context

• Global technology roadmap
• What is Compound Semiconductor?
• History of Diameter Expansion of Different Crystals
• Compound Semiconductors are everywhere!
• Application Overview of Major Compound Semiconductors
• Silicon vs Compound Semiconductor substrates: today and tomorrow

Game-changing news in Compound Semiconductors

CS market forecasts - Focus on substrate and epiwafer markets

• From materials to components
• Compound Semiconductor substrate shipments (units)
• Compound Semiconductor substrate market ($M)
• Compound Semiconductor substrate ASP($) evolution
• Total Compound Semiconductor epiwafer shipments (units)
• Compound Semiconductor Open epiwafer market ($M and units)
• Compound Semiconductor epiwafer ASP($) evolution

Focus on InP Photonics market

Industry trends

• From components to applications
• Mobile and Consumer
  • Main trends
  • What are we monitoring
  • GaN consumer power supplies are now commodities
  • Mobile and Consumer: RF device trends
  • Handset Technology power amplifier trends
  • PA Handset : Opportunity for GaN-on-Si ?
  • Mobile and Consumer: Photonic device trends
  • Apple is leading the adoption of Photonics CS substrates in consumer applications
  • Rear LiDAR for AR applications
  • Market trends for MicroLED
• Automotive
  • Main electronic Trends in automotive industry
  • Power SiC and GaN trends in automotive
  • Automotive sensing, lighting and display
  • Focus on Automotive LiDAR for ADAS: InP Vs GaAs
  • What about microLED in automotive applications?
  • Automotive connectivity : RF Compound positioning
• Telecom and Infrastructure
  • Overview of end systems in telecom infrastructure
  • From 4G to 6G : Compound semiconductor opportunities
  • How compound semiconductors meet 5G and 6G requirements
  • Rf GaAs and GaN as standards in the telecom market
  • Strong demands in Fiber-Optic Communication
  • Artificial intelligence
  • Datacom – towards higher speeds
  • Telecom – towards higher speeds
  • Increasing Power consumption of Data centers
  • Power SiC and GaN trends in Telecom/Datacom
• Industrial
  • Main electronic trends in industrial applications
  • Power device trends
  • RF device trends
  • Photonic device trends
• Medical
  • Use cases of Compound Semiconductors in medical applications
• Defense and Aerospace
  • Long-term and short-term evolution
  • Overview of Compound Semiconductors in defense industry
  • Defense applications: power device trends
  • Defense Radar market trends
  • Photonic device trends in defense industry
  • Space applications : Mobile Satellite communication trends
  • Space applications: VSAT market trends
  • Space applications: Power device trends

Technology trends

• Power device positioning as a function of power and Frequency
• Tech trend - Power SiC
• Power SiC : Advantages, Challenges and Key trends
• Tech trend - Power GaN
• Power GaN : Advantages, Challenges and Key trends
• RF semiconductors overview
• Technical requirements by application
• Tech trend - RF GaN
• RF GaN : Advantages, Challenges and Key trends
• Tech trend – RF GaAs
• RF GaAs: Advantages, Challenges and Key trends
• GaAs Photonic devices adoption
• Tech trend – Photonics GaAs
• Photonics GaAs: Advantages, Challenges and Key trends
• MicroLED Applications Overview
• Tech trend – MicroLED
• MicroLED: Advantages, Challenges and Key trends

Focus On InP Photonics technology trends

• LASER diodes - Comparison of DFB and FP EELs and VCSELs
• Tech trend – Photonics InP
• Photonics InP: Advantages, Challenges and Key trends
• Overview of the InP technology trends as of 2024
• Main challenges of long-wavelength VCSELs
• Long-wavelength VCSELs – Manufacturing approaches
• Composite structure for long wavelength VCSEL
• Porous InP VCSELs
• Long-WAVELENGTH VCSELs : Status as of 2024
• Overview of InP EELS in optical communication
• Toward higher speed EELs

Substrate and Raw Materials in Compound Semiconductors

• Substrate size evolution in production : CS in Power
• Substrate size evolution in production: CS in RF and Photonics
• Substrate size evolution in production : VS in LEDs and Displays
• China’s impact on raw indium prices
• China controls the production of Gallium raw materials
• US-China trade war : Gallium raw materials
• Is China’s decision on the export regulations of Ga raw materials a good strategy?
• Why is the volume of raw material much larger than SiC boule growth

Epitaxy industry for Compound Semiconductors

• Epitaxy equipment: overview
• Epitaxy equipment type by Application
• Overall Compound Semiconductor epiwafer epitaxy
• Epitaxy WFE market Highlights : focus on SiC
• Epitaxy WFE market Highlights : focus on MOCVD
• Epitaxy WFE market Highlights : Focus on MBE
• Equipment vendors by substrate material and equipment type
• Equipment vendors by substrate material and application
• Geographic location of epitaxy equipment vendors
• Overview of the epitaxial materials vs. application
• Epitaxy equipment comparison
• Novel epitaxial techniques : RPCVD, Magnetron sputter epitaxy
• Focus on microLED epitaxy

Compound Semiconductor Ecosystem

• Power SiC : Supply Chain and business models at a glance
• Noteworthy investments in power SiC industry
• Power GaN :Supply Chain and business models at a glance
• Noteworthy investments in power GaN industry
• Ranking of substrate and epiwafer Suppliers in 2023e (2022) : Power Sic and GaN
• RF GaN-on-SiC : Supply Chain and business models at a glance
• RF GaN-on-Si : Supply Chain and business models at a glance
• Noteworthy investments in the RF Gan industry
• RF GaAs : Supply Chain and business models at a glance
• Ranking of substrate and epiwafer Suppliers in 2023e (2022) : RF GaN and GaAs
• Photonic GaAs : Supply Chain and business models at a glance
• Noteworthy investments in photonic GaAs industry
• Photonic InP : Supply Chain and business models at a glance
• Noteworthy investments in photonic InP industry
• Ranking of substrate and epiwafer Suppliers in 2023e (2022) : Photonics GaAs and InP
• GaAs LED: Supply Chain and business models at a glance
• GaN LED: Supply Chain and business models at a glance
• GaAs Display: Supply Chain and business models at a glance
• GaN Display: Supply Chain and business models at a glance
• Main application targets for major players
• Noteworthy investments in the display industry
• Leading Compound Semiconductor substrate suppliers’ capacity and expansion roadmaps

Focus on Business Synergies

• Focus on Compound Semiconductor substrate industry
• Focus on Compound Semiconductor epitaxy industry
• Synergies between different ecosystems – substrate size
• Top Semiconductor players’ activities in Compound Semiconductors
• Synergies between Power and RF GaN-on-Si
• Synergies between RF/Power GaN and microLED

Company profiles

• Company profiles of notable CS players
• Wolfspeed in RF GaN and Power SiC
• Business breakdown of Wolfspeed in calendar year
• Coherent in RF, Power and photonics
• Business breakdown of Coherent in Calendar year
• IQE, the leading epihouse in Compound Semiconductors
• Business breakdown of IQE
• Sumitomo Electric in RF, Power and Photonics
• Win Semiconductors in RF and Photonics
• VPEC in RF and photonics
• TSMC in Power
• Freiberger Compound Materials GmbH in RF and photonics
• AXT in RF, LED and Photonics
• SICC in SiC substrates for RF and Power

China

• The synergy of policies, supply chain and market demand in China
• The positioning of various Compound Semiconductors
• The compound semiconductor landscape and leading players
• Semiconductor Competition between the United States and China
• How is China responding to the U.S. sanctions?
• Where can China have strong impact in the CS industry?
• The China +1 implementation in SiC

Conclusions and outlooks

• Market, Technology, and Supply Chain Summaries
• Cs Industry at a glance Substrate market evolution ($M)
• Cs Industry at a glance Open Epiwafer market evolution ($M)
• Emerging substrates 

Compound semiconductors’ meteoric rise forecasts a $3.3B substrate market by 2029

Compound semiconductors (CS) stand as a transformative force across industries. SiC's dominance in automotive, particularly within the realm of 800V EVs, propels a billion-dollar market, while Power GaN extends its reach across consumer tech and automotive sectors, envisioning a billion-unit opportunity in smartphone OVP. Anticipating a revival, RF GaAs aligns with 5G and automotive connectivity, while RF GaN establishes its presence in defense, telecom, and space industries, setting its sights on high-power applications. In photonics, InP and GaAs take the lead, with InP experiencing a resurgence driven by AI applications, while GaAs photonics experiences modest growth due to various market dynamics. MicroLEDs exhibit potential, although their journey toward widespread adoption remains gradual.

Reshaping the CS landscape: major players’ strategic moves and supply chain dynamics

Compound semiconductor substrate players continually devise fresh strategies to broaden their product portfolios, seeking to expand their market presence. Wolfspeed stands at the vanguard, spearheading SiC substrate supply for Power SiC. The strategic shift towards larger-format 8” wafer fabs and expansive material capacity signals ambitious targets for the next decade. Meanwhile, Coherent emerges as a key player in photonic devices and dominates as a SiC substrate supplier for power and RF applications. Collaborations with SEDI in RF GaN and entry into power SiC devices alongside GE enhance its competitive edge from substrates to devices.

AXT, Sumitomo Electric, Freiberger, and SICC lead in GaAs, InP, and semi-insulating SiC substrates, aiming for revenue growth by expanding into other CS materials. Players are looking at the synergy between GaAs and InP substrates for RF, photonics, and µLED applications. Meanwhile, the new Chinese regulations on exporting Gallium raw materials from China have made the CS substrate players revise their strategic supply of raw materials. What are these new strategic supplies? And will we see an impact on CS substrate prices?

Revolutionizing CS: transitioning to larger substrates unlocks new industry potential

Compound semiconductor (CS) technologies showcase diverse advancements across sectors. In fact, the SiC industry is booming, with players focusing on expansion and investment. For instance, 6” wafer remains mainstream for SiC, though a $1.2B investment in an 8" MHV fab by Wolfspeed spurred revenue in Q1-23. R&D focuses on increasing SiC wafer yield, including innovations like engineered substrates by Soitec and Sumitomo Mining. Major IDMs like Infineon focus on boule and wafer-splitting technologies. Power GaN primarily adopts 6-inch GaN-on-Si, while 8-inch GaN-on-Si gains ground with expansions by Innoscience, STMicroelectronics, and Infineon. Power GaN players are pushing to have a similar attractiveness to SiC. Innovations aim for vertical device structures and improved performance using new substrates like QST. In the RF business, GaN-on-Si is paving the road for new opportunities to compete with established technologies, such as GaN-on-SiC. Photonics rides AI's wave, spurring high-data-rate lasers. InP Photonics is an established market in a growth phase. Could AI drive InP's transition to 6”? Meanwhile, GaAs explores 8" manufacturing driven by MicroLED. MicroLED competes with OLED, facing yield and efficiency challenges, questioning its success but gaining momentum with substantial investments. Apple's plans for an 8-inch microLED smartwatch could drive the industry transition from 6-inch to 8-inch substrates, unlocking new market potential.

We invite you to read our Status of the Compound Semiconductor Industry 2024 report for comprehensive analyses of the market dynamics, eco-system evolution, and technology trends, with a focus on CS substrates and epiwafers.

Aixtron, Accelink, Alibaba, Allos, Alpha&Omega, Alstom, Alta Devices, Amazon, Amec, ams-Osram, Amkor, Antora Energy, AOI, Apple, Arima, ASE, AT&S, AWSC, AXT, Aymont, Azur Space, BASiC Semiconductor, BMW, Bombardier, BorgWarner, Bridgelux, Broadcom, Brückewell, BYD, Caly Technology, Cengol, CETC, CGD, Changelight, China Crystal Technologies, Ciena, Cisco Clas-SiC wafer fab, CMK, Coherent, CRRC, Daimler, Danfoss, Delphi, Delta electronics, DenseLight, DENSO, DISCO, DongKe, Dowa, Duet Microelectronics, DXT Shenzen, Efficient Power Conversion, Egtronics, Elbana, Emcore, Enkris, Epic, Episil, Epistar, EpiWorld, Ericsson, Evatran, Facebook, Fairchild, FBH, Foxconn, Freiberger Compound Materials, Fuji Electric, Fuji Xerox, GaN Power, GaN Systems, GCS, GE, GeneSiC, Global Power Device, Global Power Technology, GlobalWafers, Google, GTAT, Hamamatsu, HC Semitek, Hestia Power, Hexawave, Hisense Broadband, Hitachi, HiWafer, Huawei, Huntersun, IGaN, IMEC, Infineon, Infinera, Inneas, InnoLight, Innoscience, Impact, InPhi, Intel, IntelliEPI, IQE,  IVCT, Ivworks, JEDEC, JX Nippon, Keysight, KISAB, Kyma, LandMark, Lasertel, LG Electronics, Littelfuse, Low Noise Factory, Lumentum, Lumileds, Luminar, MACOM, Masimo, MediaTek, Microchip, Microsoft, Mitsubishi Chemical, Mitsubishi Electric, Modulight, Navitas Semiconductors, NexGen, Nichia, Northrop Grumman, NTT, Nuvoton, NXP, Odyssey Semiconductor, OKMETIC, onsemi, Optowell Korea, Panasonic, Philips, Power Integrations, Powerex, Qromis, Qualcomm, RENESAS, Ricoh, Rockley Photonics, ROHM, Samsung, Sanan IC, Sanan optoelectronics, Sanken, Schneider Electric, SCIOCS, SCIOXS, Semiconductor Wafer Inc., Semikron, SemiQ, Senic, Sensors Unlimited, Showa Denko,  SICC, SiCrystal, Siemens, Siltronic, SinoNitride, Sivers Photonics, SK siltron css, SkyWater, Skyworks, SMA, Smart Photonics, Soitec, Sony, Source Photonics, StarPower, STMicroelectronics, Sumco, Sumitomo Chemical Advanced Technologies, Sumitomo Electric, Sumitomo Metal Mining, Sumitomo SEI, Synlight, Tagore Technology, TankeBlue, Teledyne, Texas Instruments, Thorlabs, Toshiba, Toyoda Gosei, Toyota, Transphorm, Trilumina, TrueLight, TSMC, TT Electronics, UMS, Vanchip, Veeco, Vertilas, VIGO photonics, VIS, VisIC Technologies, Vital, Vitesco, Volvo, Voyant Photonics, VPEC, Wafer Technologies, WeEn, Win Semiconductor, Wingtech, Wise Integration, Wolfspeed, X-FAB, Yaskawa, Yunnan Germanium, Zadient, ZTE and more.

Key Features

• 2019-2029 forecast for CS substrates and epiwafers for power, RF, photonics, LEDs and displays (Units, $M).
• 2019-2029 forecast for InP photonic substrates and epiwafer market split by application (Datacom, Telecom, - Consumer sensing, Consumer wearable sensing, Automotive LiDAR, Medical sensing, and others (Units, $M).
• Mega market trends in automotive and mobility, defense and aerospace, Industrial Medical , Mobile and consumer, telecom and infrastructures applications.
• Overview of the technology trends in CS related devices with a special focus on InP trends.
• Analysis of the game changing news in the CS industry that happened in 2023.
• Focus on epitaxy equipment for CS industry with a 2019-2029 forecast split by technology and CS material.
• Overview of CS substrate and epiwafer supply chain and business synergies including a specific focus on China.

What's new?

• 2019-2029 forecast for all the CS substrates and epiwafers with a special focus on the InP photonics market, split by application.
• Raw materials for CS substrates with a focus on Ga, InP and SiC powder.
• New chapter on epitaxy equipment for CS substrates including 2019-2029 forecast split by technology and CS substrate materials.
• Overview of the CS epitaxy equipment supply chain and technology trends.

Product Objectives

• To provide context on the Compound Semiconductor (CS) markets in RF, Power, Photonics, and Display applications and forecasts for the 2019-2029 timeframe
  • What has been the game-changing news in the CS industry over the last few years?
  • What are the key drivers growing the CS market?
  • What are the CS substrate and epiwafer market values and volumes by application and technology?
  • What is the status of the InP photonics market?
• To analyze the industry trends for each CS substrate
  • What are the opportunities for CS in different market verticals, and how well have they been adopted?
  • What about the competition between the various Compound Semiconductors and mature Si technology?
• To review the CS ecosystems
  • Players and strategies at different levels of the supply chain
  • Synergies between industries and players
  • Special focus on capacity expansion of players in the CS industry
  • Special focus on epitaxy equipment
  • Significant events and latest trends of market players
  • The developmental focus in different regions
• Technology trends for GaAs, InP, GaN-on-Si, GaN-on-SiC, GaN-on-sapphire, and SiC substrates as well as emerging substrates
  • What are the latest technological developments?
  • What are the benefits and challenges?
  • Technology maturity and market status of emerging substrates: bulk GaN, Ga2O3, AlN, Single crystal diamond, engineered substrates, Antimonides.