Substrate and epiwafer markets are fueled by strong growth in power electronic and photonic compound semiconductors.

OUTLINE

● The compound semiconductor substrate market is expected to reach US$3.3 billion in 2029, with a 17% CAGR between 2023 and 2029.
● Wolfspeed, Coherent Corp., SEDI … Substrate players consistently craft new strategies to diversify their product portfolios and enhance their market presence.
● Compound semiconductor technologies showcase diverse advancements across sectors: SiC , GaN , InP …

Compound semiconductors have emerged as a transformative influence across various industries. SiC’s dominance in the automotive sector, especially in the domain of 800V EVs , drives a billion-dollar market. Simultaneously, GaN power electronics is expanding its presence in both the consumer and automotive fields. At Yole Group, analysts envision a billion-unit opportunity in smartphone OVP . In anticipation of a resurgence, RF GaAs aligns itself with 5G and automotive connectivity, while RF GaN establishes its presence in defense, telecommunications, and space industries, targeting high-power applications. Within the realm of photonics, InP and GaAs take the lead, with InP experiencing a resurgence fueled by AI applications, while GaAs photonics sees more modest growth influenced by various market dynamics. Although MicroLEDs show potential, their widespread adoption is  gradual…

In this dynamic context, the market research and strategy consulting company Yole Group has updated its annual report dedicated to the compound semiconductor markets: RF, power, photonics, and display. In its new Status of Compound Semiconductors Industry 2024 report, analysts deliver an in-depth understanding of this industry and technology trends for each substrate, SiC, GaN-on-Si ,GaAs, InP and Sapphires. Yole Group’s 2024 market & technology study also reviews in detail the complete ecosystem.
According to Ali Jaffal, PhD, a Technology & Market Analyst, Semiconductor Substrates & Materials at Yole Group: “The CS industry is at the corner to transition to larger diameter substrates. In the Photonics sector, AI is driving the demand of high-data-rate lasers, which could accelerate the transition to 6” InP substrates. On the other side of the coin, GaAs explores 8” manufacturing for microLED, which is competing with OLED, facing yield and efficiency challenges, questioning its success but gaining momentum with substantial investments.”

Suppliers of GaAs and InP substrates, including Freiberger, Sumitomo Electric, and AXT play a central role in the transition to larger diameter substrates. Photonics is part of this story, and the power and RF markets further complement this narrative.
Wolfspeed is leading the change to supply SiC substrates for power electronics applications. It has recently transitioned to the larger 8” wafer fabs and is expanding its material capacity in line with its strategic vision.
Coherent, another leading player, focuses on photonic devices and dominates the SiC substrate market for both power and RF applications. It has made a number of strategic alliances, for example, with SEDI in RF GaN, to reinforce its position and has started supplying power SiC devices. Following these actions, it covers the whole value chain from substrates to advanced devices. The landscape is continuously evolving, with multiple innovations on many fronts and strategic partnerships.

For Taha Ayari, PhD, Technology & Market Analyst, Semiconductor Substrates & Materials, at Yole Group: “Compound semiconductor technologies are advancing across sectors, notably in the booming SiC industry. While 6” wafers are still standard, Wolfspeed's US$1.2 billion investment in MHV fab is pioneering the transition to 8" wafer size. Other efforts focus on improving SiC wafer yield and supply, with innovations like engineered substrates from SOITECand Sumitomo Mining. Power GaN sees a shift to 8-inch GaN-on-Si, driven by expansion at Innoscience, STMicroelectronicsand Infineon Technologies”.
“RF GaN-on-Si is benefiting from synergies with the relatively more mature Power GaN to enter the telecom market and compete with established RF GaN-on-SiC technology. Additionally, major changes in the RF GaN ecosystem, such as Wolfspeed RF business being acquired by MACOMcould impact the RF GaN industry”. Aymen Ghorbel, Technology & Market Analyst, Semiconductor Substrates & Materials at Yole Group.

Source from Yole Group Status of the Compound Semiconductor Industry 2024