On October 21, gold futures on the New York Mercantile Exchange closed at $2,734.50, continuing to reach new all-time highs.

As one of the world’s primary safe-haven assets, gold has risen by over 30% so far this year. This increase mainly reflects the fact that major global economies have entered an interest rate-cutting cycle due to weakened economic outlooks. In addition, rising tensions in the Middle East and uncertainty surrounding the U.S. election have further driven gold prices upward.

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Interest rates are a key factor in the pricing of all assets, but they are especially important for gold, as it does not provide interest or dividend income. As a result, gold’s price is highly sensitive to interest rate fluctuations.

The real interest rate (nominal interest rate minus inflation) is the key factor influencing gold prices. Typically, when real interest rates rise, gold’s attractiveness decreases relative to higher-yielding assets, leading to a drop in its price. Conversely, when real interest rates fall or turn negative, gold’s appeal as a safe-haven asset increases, pushing its price higher.

According to economic forecasts from major central banks, global interest rates are expected to decrease by 75 to 125 basis points by 2025. Therefore, the upward trend in gold prices is likely to continue through 2025.

(Source: Fed, ECB, BOE, RBA, S&P Global, TrendForce)

The application of silicon carbide (SiC) and gallium nitride (GaN) in the automotive industry seems to be “gradually gaining momentum.”

Among them, the trend of SiC power devices accelerating their integration into vehicles has become very clear. In recent years, more and more new energy vehicle models have adopted SiC technology. Recently, a series of new models equipped with SiC such as EXEED’s new pure electric SUV STERRA ES, the second-generation AION V Aion Tyrannosaurus Rex, HIMA’s first luxury flagship sedan Jiangan S9, the 2025 models of BYD Seal, ZEEKR 007, and the VOYAH Zhiyin SUV have been successively released, forming a notable trend of collaboration between SiC and new energy vehicles.

At the same time, exploration in the application of GaN in automotive scenarios is continuously making new progress. Focusing on car chargers and automotive LiDAR scenarios, manufacturers such as Infineon and EPC have launched relevant products, contributing to the rising popularity of GaN automotive-grade applications.

Leading Players Battle for Automotive Scenarios with SiC/GaN Power Devices

The industry currently sees significant potential for the application of SiC/GaN power devices in the new energy vehicle (NEV) field, which is why major players are actively deploying automotive SiC/GaN markets.

International semiconductor giants such as STMicroelectronics, Infineon, and onsemi have been deeply involved in the SiC power device field for many years, holding a first-mover advantage in technology and market, which helps them better expand their global business, including the Chinese market.

In recent years, with the explosive growth of the Chinese domestic NEV market, the demand for automotive SiC has surged. International giants have been increasing their investment in the Chinese market, and partnering with car manufacturers is one of the most convenient ways to seize market share. Since 2024, a series of new cooperations between international manufacturers and local carmakers have been reached around automotive SiC power devices and modules, including STMicroelectronics’ strategic cooperation with Great Wall Motors, Infineon’s agreement with Xiaomi, and onsemi’s long-term cooperation agreement with Li Auto.

To reduce supply chain costs, STMicroelectronics has partnered with local leading SiC player, San’an Optoelectronics, investing billions of dollars to build a SiC device joint venture factory in China. Localizing SiC device production in China not only helps lower supply costs but also aids in further expanding their SiC automotive business in China through capacity assurance.

Lowering costs and improving efficiency can help expand the market, while enhancing technical advantages can also attract customer attention, thereby facilitating cooperation. For example, in the first half of 2024, Infineon launched a new generation of SiC MOSFET trench gate technology, which improved the main performance indicators of the MOSFET by 20% under the premise of ensuring quality and reliability, thereby enhancing overall efficiency.

Currently, capacity building and technological upgrades are the focus of international giants, and major manufacturers are expected to continue making breakthroughs in these two areas in the future.

In the Chinese NEV market, international SiC power device giants are accelerating the introduction of related products, while local companies are also making efforts to get a share of the market.

During PCIM Asia 2024, TrendForce had exchanges with Infineon, onsemi, EPC, Semikron Danfoss, Soitec, and StarPower Semiconductor, understanding their deployment and progresses in SiC and GaN automotive markets.

Infineon

On the international front, Infineon is currently committed to comprehensively enhancing the competitiveness of its SiC power device products in terms of cost-performance ratio, reliability, and efficiency. Leveraging its profound accumulation in technology and market as an international IDM giant, Infineon can better respond to various market demands for power devices, including automotive applications.

At the PCIM Asia 2024 exhibition, in the electric mobility section, Infineon showcased its HybridPACK™ Drive G2 Fusion module and Chip Embedding power devices to the domestic market for the first time. The HybridPACK™ Drive G2 Fusion module integrates IGBT and SiC chips, significantly improving module efficiency while effectively reducing SiC module costs. The Chip Embedding technology can be directly integrated into the PCB board, achieving minimal stray inductance and high integration.

For automotive electronics control, Infineon demonstrated its electronic control system solution using the second-generation HybridPACK™ Drive SiC power module motor controller system. This system integrates AURIX™ TC4 series products, the second-generation 1200V SiC HybridPACK™ Drive modules, third-generation EiceDRIVER™ 1EDI30XX driver chips, and non-magnetic core current sensors.

For on-board charger (OBC)/DC-DC applications, Infineon showcased its complete top-cooling solution: a 7.2kW magnetic integrated Tiny Box top-cooling solution, achieving an effective combination of high power density electrical and high integration structural solutions.

onsemi

Sangjun Koo, an application engineer at onsemi, stated that onsemi has two main advantages in the SiC field: first, a fast response to market demand for SiC power devices, enabling rapid decision-making on product development; second, as the world’s second-largest SiC power device supplier, it has the capability for mass production, ensuring supply for customers. Based on these advantages, onsemi can better meet market demands, including automotive. Currently, onsemi is also actively exploring AI data center field, which is expected to develop in coordination with the automotive business.

To meet the charging needs under the 800V architecture, high-power OBCs are gradually entering the market. Achieving a peak system efficiency of 97% at 11kW and a power density of 2.2 kW/l. Additionally, this design can reduce the use of passive components, thereby reducing PCB area and contributing to automotive lightweighting.

To meet the high-power demands of main drive inverters, onsemi has launched the 1200V SiC half-bridge power module B2S, supporting up to 400kW of output power. This module uses transfer molding packaging, and the chip connections are implemented with silver sintering technology, achieving high reliability and low thermal resistance. The module has a stray inductance of approximately 4nH and integrates onsemi’s latest M3 silicon carbide technology, ensuring high performance.

EPC

Zhang Shengke, Vice President of Reliability at EPC, said that EPC’s low-voltage GaN devices can cover the demand for all 48V to 12V server power converters. They are also exploring humanoid robots and LiDAR scenarios. EPC’s LiDAR GaN devices are also suitable for automotive applications.

At PCIM Asia 2024, EPC showcased a humanoid robot sample. Some joint components in this robot are likely to adopt GaN. Additionally, EPC brought a driverless electric cart with a LiDAR component equipped with EPC’s GaN power devices.

Semikron Danfoss

According to Norbert Pluschke, Director of Solution and System Sales & Technical Director for Greater China at Semikron Danfoss, as one of the leading SiC module packaging manufacturers, Semikron Danfoss offers two packaging solutions specifically optimized for silicon carbide: The first is the full-bridge power module eMPack® platform, which features extremely low stray inductance (2.5nH), facilitating high switching speeds for SiC. The second is the DCM platform, a direct-cooled injection-molded half-bridge module developed for demanding automotive traction inverter applications, and this technology is also suitable for future GaN applications.

At the PCIM Asia 2024 exhibition, Semikron Danfoss showcased its solutions in the industrial energy and automotive sectors, including electric motor controller products for new energy vehicles from companies such as Citroën and EKPAC Power, utilizing eMPack® and DCM SiC modules.

Soitec

Gonzalo Picun, Business Development Manager at Soitec, stated that large-size silicon carbide (SiC) substrates, which can effectively improve the production efficiency of SiC power devices and reduce costs, are the key development trend of the current SiC industry. Meanwhile, many new material technologies have emerged, which can help improve material utilization efficiency. Additionally, Soitec also finds that various innovative SiC growth methods are developed, such as Physical Vapor Transport (PVT), Liquid Phase, and Chemical Vapor Deposition (CVD), which can help enhance the quality of SiC substrates. In this context, Soitec is actively developing high-quality material technologies, including large-size substrates.

Regarding capacity, Soitec’s new factory in Bernin, France, was completed in October 2023, with a total investment of 380 million euros (approximately 3 billion RMB) and covering an area of 2,500 square meters. Once fully operational in 2028, it can produce 500,000 wafers annually, with 80% being SmartSiC wafers. Technologically, Soitec possesses unique SmartCut™ technology, which can precisely cut SiC wafers, improving wafer yield and performance, and significantly increasing production output. Overall, Soitec has the strength to secure a significant place in the application of SiC in new energy vehicles (NEVs).

StarPower Semiconductor

StarPower Semiconductor has made swift progress in the automotive sector. According to Deputy General Manager Dr. Tang Yi, in 2022, StarPower Semiconductor became the first domestic company to mass-produce SiC modules for car manufacturers (used in the XPeng G9 model). In 2023, it began mass production and supply of its self-developed silicon carbide (SiC) chips. This year, StarPower Semiconductor’s self-built production line has also started supplying products, with applications covering main drive inverters, power supplies, and automotive air conditioning systems.

Domestic companies such as StarPower Semiconductor are continually advancing the adoption of SiC in automotive applications, competing with international giants.

While SiC power devices are rapidly integrating into automotive applications, GaN is also being actively promoted by major players. STMicroelectronics, Infineon, and onsemi are exploring both SiC and GaN automotive opportunities. STMicroelectronics’ SiC products have been or will be introduced into models from leading NEV manufacturers such as Li Auto and Great Wall Motors. Its PowerGaN series products are also suitable for electric vehicles and their charging facilities in higher power applications.

EPC has developed Time-of-Flight (ToF)/LiDAR reference designs based on GaN, utilizing GaN field-effect transistors (GaN FETs) to offer fast switching speeds, smaller footprints, high efficiency, and excellent reliability in LiDAR circuits. Currently, EPC’s eGaN FET has accumulated billions of hours of successful experience in automotive applications, including LiDAR and radar systems.

The application of GaN in the automotive field is still in its early stages, with mature applications in automotive LiDAR products, and it is gradually penetrating other automotive scenarios. By around 2025, GaN is expected to start small-scale penetration into low-power on-board chargers (OBCs) and DC-DC converters. Further into 2030, original equipment manufacturers (OEMs) might consider introducing GaN into main drive inverters.

Trends in Automotive Silicon Carbide/Gallium Nitride

Thanks to the collective efforts of Chinese domestic and international manufacturers of silicon carbide (SiC) and gallium nitride (GaN) power devices, the global automotive industry, especially the new energy vehicle (NEV) sector, is undergoing revolutionary changes.

Currently, the NEV sector is transitioning from a 400V voltage system to an 800V voltage system. In the latest new-energy models released by major manufacturers, 800V high-voltage SiC platforms have almost become standard configuration. This transition mainly aims to enhance battery charging speed, reduce battery heating, improve motor efficiency, extend vehicle range, and lower manufacturing costs. In this process, SiC power devices play a crucial role.

In automotive applications, 1200V and even 1700V SiC power devices are becoming mainstream to better match the platform requirements of 800V or higher voltage levels.

This transition from 400V to 800V is also accelerating the popularization of NEVs. According to recent data from major NEV manufacturers, significant sales growth was achieved in August, and this growth trend is expected to continue, benefiting SiC power device manufacturers.

Additionally, with the advancement of the NEV industry, the demand for reducing energy loss and enhancing reliability is increasing, driving the need for more integrated SiC modules.

Summary

In recent years, advancements in synthesis technology and expanded production scale have driven the costs of SiC substrates and epitaxial layers downward, resulting in lower prices for related products such as devices and modules. This is favorable for further penetration into various application scenarios, especially the NEV field being massively adopted. Under the scale effect, price reduction further encourages automakers to promote SiC automotive adoption.

Simultaneously, the SiC industry is transitioning from 6-inch to 8-inch wafers. Although mainstream products are still 6 inches, the cost reduction and efficiency improvement of 8-inch wafers are significant, making it a focal point for manufacturers’ development. In the future, as 8-inch wafer capacity gradually increases, it is expected to further promote the widespread application of SiC in fields including NEVs and photovoltaic storage and charging.

Currently, SiC’s application in the NEV field is mostly concentrated in mid-to-high-end models. As costs and prices decrease, it is expected to gradually penetrate into low-to-mid-end NEV models, further enhancing its involvement in the NEV field.

Additionally, under the trend of industry integration, more and more SiC power device manufacturers are choosing to cooperate with NEV manufacturers to develop automotive SiC products. Guided by market and user needs, they are working from the front end of the industry chain to achieve customized technology and product development, shortening the process from R&D and verification to mass application, thereby achieving cost reduction and efficiency improvement while better seizing market opportunities.

Regarding GaN, in the NEV field, GaN devices currently mainly occupy applications below 400V. However, some manufacturers are promoting the high-voltage application development of GaN devices, including Bosch’s development of 1200V GaN technology for automotive use. In the future, GaN power devices will gradually expand from low-voltage automotive LiDAR applications to main drive inverters and other applications requiring higher voltage.

(Photo credit: TrendForce)

According to a report by the Maeil Business Newspaper, U.S. semiconductor giant Intel has reached out to Samsung Electronics to explore the possibility of forming a foundry alliance.

Citing sources in the semiconductor industry, the report reveals that a senior Intel executive recently requested a high-level meeting between the two companies. Intel’s CEO, Pat Gelsinger, is reportedly seeking a direct meeting with Samsung Electronics Chairman Lee Jae-yong to discuss comprehensive cooperation plans for their foundry divisions.

Since the establishment of Intel Foundry Services (IFS) in 2021, Intel has secured contracts with Cisco and AWS but has struggled to attract larger-scale clients. Samsung Electronics, which launched its foundry business in 2017, has gained some traction with customers but still trails far behind TSMC.

According to data from TrendForce, in the second quarter of this year, TSMC and Samsung held 62.3% and 11.5% market shares in the foundry sector, respectively.

The report also highlights that if an Intel-Samsung foundry alliance materializes, the two companies could collaborate on various fronts, including process technology exchanges, shared production equipment, and joint research and development (R&D) efforts.

Samsung Electronics is known for its advanced 3nm GAA (gate-all-around) technology, which enhances performance and power efficiency in fine processes,. Meanwhile, Intel possesses technologies such as Foveros, which combines chips produced using different processes into a single package, and PowerVia, which improves power efficiency. These combined strengths could be crucial in developing high-performance, low-power designs for AI, data centers, and mobile application processors.

Additionally, Samsung operates manufacturing facilities in the U.S., South Korea, and China, while Intel has facilities in the U.S., Ireland, and Israel, enabling potential collaboration or equipment sharing when needed. The report also notes that with tightening controls on advanced semiconductor exports, particularly from the U.S. and EU, regional production capabilities are becoming increasingly important.

However, both Samsung and Intel declined to confirm whether a top-level meeting will take place, according to the Maeil Business Newspaper.

(Photo credit: Intel)

While Samsung is struggling to catch up with SK hynix on its HBM3e progress, it would also be one of the company’s top priorities to retain talent. According to the report by Korean media outlet The Elec, around 200 Samsung employees have been flocking to apply for three job openings posted by SK hynix.

Citing sources familiar with the matter, the report indicates that a recent SK hynix job posting seeking three experienced etching engineers attracted applications from around 200 Samsung employees.

As the majority of Samsung’s qualified fab engineers applied for the position, this high number of Samsung applicants has drawn attention across the industry, as it is highly unusual for so many to apply for such a role, the report notes.

Previously open to those with less than three years of experience, the program of SK hynix, known as Junior Talent, has expanded its criteria to include engineers with up to five years of experience, counting Master’s and PhD studies as part of their professional background. The adjustment has attracted Samsung engineers with limited experience, according to the report.

Following the program’s expansion, the number of applicants from Samsung significantly increased, sources revealed.

To provide additional background information, the report points out that the number of Samsung semiconductor engineers leaving for competitors or government-backed research institutes seems to be growing.

For instance, the Korea Electronics Technology Institute (KETI) recently posted a job opening for three research positions, and attracted around 50 PhD-level engineers from Samsung’s semiconductor division, the report suggests. Sources cited by the report also note that all eight of KETI’s recent hires had previously worked at Samsung.

It is worth observing that whether this is a long-term employee mass “exodus” or it is merely a temporary trend within a company already known for higher turnover compared to other domestic firms, the report notes.

A former Samsung Semiconductor employee told The Elec that while Samsung once offered the highest salaries in the industry, its compensation today only slightly exceeds that of competitors, and only when factoring in bonuses.

On the other hand, for Samsung employees, the jobs in jeopardy may not simply be those mid-level positions. After reporting disappointing third-quarter earnings forecast, a report by the Korea Economic Daily notes that the company is set to significantly reduce its chip executive positions and reorganize its semiconductor-related operations.

According to the information cited by the report, as of the second quarter, Samsung’s DS division had 438 executives, making up 38% of the company’s total 1,164 executives. Notably, this number is more than double that of the current HBM leader, SK hynix, which has 199 executives.

Read more

• [News] Lagging behind SK hynix in HBM, Samsung Plans Significant Year-end Cuts to Chip Executives

(Photo credit: Samsung)

Vietnam recently announced its national strategy for developing its semiconductor industry. According to a report from the Diplomat, this plan focuses on gradually building local expertise and integrating the country into the assembly, packaging, and testing (APT) stages of the semiconductor value chain, signaling its long-term goal of becoming a leading global semiconductor hub.

According to the report, the success of Vietnam’s plan relies on how the country uses its geo-economic strengths. The report pointed out that there are some significant advantages.

First, Vietnam’s political environment is relatively stable and predictable compared to some of its regional peers, as the report mentioned. The country is not prone to abrupt changes in policy or political instability. According to the report, this stability offers a considerable advantage attracting foreign companies seeking to make long-term investments in Vietnam’s semiconductor and technology sectors.

Second, the report notes that major semiconductor hubs like the U.S. and South Korea are projected to face significant labor shortages by 2030, making Vietnam’s youthful population a key advantage. Planned investments in the talent pool will support Vietnam’s development of its semiconductor industry, encompassing areas such as APT, chip design, prototyping, and fundamental research.

Lastly, according to the report, Vietnam maintains strategically neutral diplomatic relations with key players in the global semiconductor industry, enhancing its appeal as a prominent semiconductor hub. Amid geopolitical risks, Vietnam avoids taking sides with major superpowers, allowing it to engage in business with all parties.

The report highlights that the comprehensive strategic partnerships Vietnam has established provide a foundation for deeper business cooperation, as evidenced by a rising number of deals, including Amkor’s increased investment in its APT plan in Bac Ninh, chip design training from Cadence and Synopsys in Da Nang, and the expansion of Marvell’s design operations.

On the other hand, Vietnam still faces challenges in establishing itself as a significant player in the global semiconductor value chain. First, according to the report, despite its neutral diplomatic strategies, Vietnam is under increasing pressure to choose between competing superpowers, particularly China and the U.S.

Other challenges include the competition with countries that are already in the race and implementing similar strategies. The report indicated that India is a major talent hub, whereas Malaysia and Indonesia are ahead in drawing foreign investment.

Lastly, there are greater demands to comply with sustainability standards in the semiconductor industry, as indicated by the report. As there is growing scrutiny over carbon emissions and water usage, Vietnam is also adapting its existing infrastructure. The country is striving to balance its commitments to U.N. climate change targets while expanding its presence in the global semiconductor industry.

In conclusion, the report highlights that Vietnam has the potential to become a major player in the global semiconductor value chain by leveraging its political stability, demographic advantages, and balanced diplomatic relationships. However, the country must also address challenges such as increasing geopolitical tensions, the need to meet sustainability standards, and the necessity for investments in its workforce and infrastructure.

Read more

• [News] Vietnam Plans to Establish Over 20 Semiconductor Plants
• [News] Vietnamese Semiconductor Industry Rising with Projected Investment From Global Giants

(Photo credit: Samsung)