As two representative materials of wide-bandgap semiconductors, gallium nitride (GaN) currently thrives in the fast charging sector of consumer electronics, while silicon carbide (SiC) is gradually gaining ground in the application scenarios of new energy vehicles. Simultaneously, both are expanding into broader application boundaries. The strong emergence of AI has created new incremental markets for silicon carbide and gallium nitride.

Against this backdrop, innovative products such as Infineon’s CoolSiC™ MOSFET 400V series and Navitas’ new 4.5kW server power supply solutions have recently been launched, driving the increasing popularity of silicon carbide/gallium nitride in AI server power supplies (PSU).

Silicon Carbide/Gallium Nitride: The Breakthrough for PSU Upgrades

In recent years, the hot application of generative AI and the explosive growth of AI chip computing power have led to a surge in global data center electricity consumption. To address the high energy consumption crisis brought about by AI, upgrading data center PSUs has become a critical breakthrough.

Currently, PSUs for global AI and hyperscale computing data centers come in three form factors: CRPS185, CRPS265, and OCP of the Open Compute Project. The heights and widths of these power supplies are the same, differing only in length. Each CRPS185 power supply has fixed dimensions of 185mm x 73.5mm x 40mm. Thus, given that the physical size cannot change, increasing power demands from AI servers necessitate improvements in power density.

Power density enhancements can be achieved by increasing switching frequency. Since silicon-based products have reached their physical performance limits, the high switching frequency characteristics of GaN devices make them more suitable for high-density CRPS applications. In contrast, SiC devices, compared to silicon-based products, can operate at higher temperatures and voltages, achieving more efficient power conversion and reducing energy loss.

In practical applications, Navitas has significantly improved power density and efficiency through a reference design for CRPS server power supplies that combines SiC power devices and GaN power chips. In July this year, Navitas released an innovative CRPS185 4.5kW AI data center server power supply solution based on its GaNSafe™ high-power GaN power chips and the third-generation fast SiC power devices from GeneSiC™, reportedly achieving a leading power density of 137W/in³ and efficiency of over 97% in the AI data center PSU industry.

The Battle for AI Server Power Supplies Among Leading Silicon Carbide/Gallium Nitride Power Device Manufacturers

A competition in AI server power supplies among SiC/GaN power device manufacturers is already underway. Apart from Navitas, players such as Infineon, ON Semiconductor, EPC, Texas Instruments, GaNext, Corenergy, and Danxitech have entered the fray.

Infineon

In June of this year, Infineon launched a new CoolSiC™ MOSFET 400V series specially developed for AC/DC stages of AI servers. This new series has lower conduction and switching losses compared to existing 650V SiC and Si MOSFETs, increasing the power density of AI server power supplies to over 100W/in³ and achieving an efficiency of 99.5%, which is 0.3 percentage points higher than solutions using 650V SiC MOSFETs.

For the 54V output platform of AI servers, Infineon has developed a 3.3kW PSU dedicated demo board, utilizing Infineon’s CoolGaN™, CoolSiC™, and CoolMOS™ designs to achieve a benchmark overall efficiency of 97.5% and a power density of 96W/in³, meeting the high-power demands of data center PSUs.

At the PCIM Asia 2024 exhibition, an Infineon spokesperson emphasized that reducing data center energy consumption is a pressing need for AI industry development and a primary focus for Infineon. Infineon’s new generation of SiC MOSFET trench gate technology features lower on-resistance, higher switching efficiency, and better reliability, offering significant performance improvements to meet the needs of AI server power supplies.

ON Semiconductor

In response to the “three highs” challenge of PSU output power, conversion efficiency, and power density, ON Semiconductor has launched the latest generation of T10 PowerTrench® series and EliteSiC 650V MOSFET combination, providing a comprehensive solution for data center applications. This solution offers higher efficiency and better thermal performance in a smaller package size.

Among these products, the EliteSiC 650V SiC M3S MOSFET is designed to address data center efficiency challenges, meeting the Open Rack V3 (ORV3) PSU’s peak efficiency requirement of up to 97.5%. The T10 PowerTrench® series enhances thermal performance through optimized packaging technology, addressing the need for high power conversion efficiency and miniaturization in data centers.

EPC

At the PCIM exhibition, EPC showcased samples of humanoid robots using GaN and an autonomous mini-vehicle incorporating EPC’s GaN power devices in its onboard LiDAR components.

In addition to scenarios like humanoid robots and LiDAR, AI data center PSUs are also a key focus area for EPC. In communications with TrendForce Compound Semiconductor, Zhang Shengke, Vice President of EPC’s Reliability Division, stated that EPC’s low-voltage GaN devices can meet all 48V-to-12V server power converter component needs.

TI

As early as 2021, TI had reached a collaboration with server power supply provider Delta to develop efficient, high-power enterprise PSUs for data centers based on TI’s GaN technology and C2000™ MCU real-time control solutions.

TI has invested ten years into GaN technology and C2000™ MCU real-time control solutions. Through collaboration with Delta, TI can utilize innovative semiconductor manufacturing processes to produce silicon-based GaN and integrated circuits, helping companies like Delta create differentiated applications and power data centers worldwide more efficiently.

To lead the industry’s development, both Navitas and Infineon announced their AI data center power supply technology roadmaps, demonstrating their commitment to continuously strengthen their presence in this field.

To meet the exponential power demand increase of AI data centers, Navitas is continuously developing new server power supply platforms, aiming to rapidly elevate power levels from 3kW to 10kW, with a launch expected in Q4 2024.

In addition to its existing 3kW and 3.3kW PSUs, Infineon will soon launch new 8kW and 12kW PSUs to further enhance AI data center efficiency. With the 12kW reference board, Infineon is poised to release the world’s first AI data center PSU to achieve this performance level.

On the domestic front, GaNext has partnered with prestigious universities to jointly develop and mass-produce the industry’s first 3.5kW CRPS fanless server power supply, achieving a high efficiency of 97.6% through two-phase interleaved totem-pole PFC and LLC, with a power density reaching 73.6W/Inch³. Several relevant products from Nengsi Technology have been sampled by leading domestic enterprises and have successfully completed the related reliability tests. Danxitech’s related products have been sampled to leading domestic companies and have completed reliability tests. Corenergy ‘s 1200V GaN products have been sampled by a known server power supplier and are undergoing reliability evaluation. Various major manufacturers are jointly advancing the industrialization of GaN in AI data center PSU applications.

Summing up, power density and efficiency in AI server power supplies continue to improve, focusing on two primary performance indicators for SiC/GaN power device manufacturers. This trend is likely to spur the production of various high-performance products, attracting more SiC/GaN players to enter the market.

Conclusion

The data center power supply sector has become a key focus of leading silicon carbide/gallium nitride manufacturers in recent years. Some manufacturers’ SiC/GaN products have already made progress in the data center power supply market, with the strong rise of AI further driving the development of this market.

As AI technologies evolve and computational power demand continues to grow, the energy efficiency and power density requirements of data centers will become increasingly stringent, imposing higher performance demands on SiC/GaN power device products from various manufacturers.

The continuous development of the SiC and GaN industry, coupled with the thriving AI ecosystem, will result in more intersections between SiC, GaN, and AI. The competition for AI server power supplies among major manufacturers will become increasingly intense.

Texas Instruments (TI), a leading player in the analog IC market, reported stronger-than-expected quarterly earnings, though its outlook for the current quarter fell short, reflecting ongoing pressures in the industrial semiconductor sector.

According to Reuters and MarketWatch, TI announced its Q3 results after the market closed on the 22nd. Revenue declined 8% year-over-year but increased 9% from the previous quarter, reaching $4.15 billion. Diluted earnings per share (EPS) came in at $1.47, down from $1.85 a year earlier. Analysts surveyed by FactSet had projected Q3 revenue of $4.12 billion and EPS of $1.38.

TI CEO Haviv Ilan stated in the press release that Revenue decreased 8% from the same quarter a year ago and increased 9% sequentially. Industrial continued to decline sequentially, while all other end markets grew.

According to Bloomberg, CEO Haviv Ilan stated that customers are clearing excess inventory, and the timing is now favorable for an order rebound after eight consecutive quarters of declining revenue.

Looking ahead to Q4 (October-December), TI expects revenue to range between $3.7 billion and $4 billion, with a midpoint of $3.85 billion, and diluted EPS between $1.07 and $1.29, with a midpoint of $1.18. FactSet consensus forecast Q4 revenue of $4.06 billion and EPS of $1.34.

According to a report by Money DJ, Texas Instruments is seen as a bellwether for the semiconductor industry due to its early earnings reports. Additionally, TI is the largest manufacturer of foundational chips for various electronic devices. Although its executives are generally reluctant to provide long-term industry forecasts, investors often use TI’s financial guidance to assess overall industry demand. The company’s largest revenue sources are industrial equipment and automotive manufacturers, which together contribute over 70% of its total revenue.

(Photo credit: TI)

Amid the rising of emerging applications in the AI market, the booming demands for high-performance computing (HPC), high-bandwidth memory (HBM), CoWoS advanced packaging, and high-performance storage, have energized the wafer foundry industry.

Given the broader applicability of 12-inch wafer in advanced process chips, the global expansion of 12-inch wafer production has accelerated in recent years. Leading companies like TSMC, Intel, UMC, Vanguard International Semiconductor (VIS), SMIC, and Huahong have successively released production capacity.

• VIS’ Singapore 12-Inch Fab Got Approved

On September 4, VIS and NXP jointly announced the approval of their Singapore-based 12-inch wafer fab joint venture by regulatory authorities in Taiwan, Singapore, and other regions.

The joint venture, named VisionPower Semiconductor Manufacturing Company (VSMC), will begin construction of its first 12-inch (300mm) wafer fab in the second half of this year.

VIS estimates that trial production will begin in 2027, with profitability expected by 2029. TSMC will provide technological support, and the market holds a favorable long-term outlook for the company’s operations.

Upon its mass production, both companies may consider building a second fab. Currently, VIS operates five 8-inch fabs located in Taiwan and Singapore. Three of the 8-inch fabs are in Hsinchu, and one in Taoyuan. The average monthly capacity of its 8-inch fabs in 2023 was about 279,000 wafers.

• TSMC Expands Production Worldwide

On August 20, TSMC held a groundbreaking ceremony for its new German fab, ESMC, which is set to begin construction by the end of the year and aims to start production by the end of 2027.

The project involves an investment of over EUR 10 billion and is expected to have a monthly capacity of 40,000 12-inch wafers, utilizing TSMC’s 28/22nm planar CMOS and 16/12nm FinFET process technologies.

In early September, Taiwan’s Ministry of Economic Affairs announced that TSMC plans to build a third fab in Japan to produce advanced semiconductors, with construction expected after 2030.

TSMC’s first fab in Kumamoto, Japan, officially opened on February 24, 2023, and will begin mass production in Q4 this year using 28/22nm and 16/12nm process technologies, with a monthly capacity of 55,000 wafers.

The second fab in Kumamoto is planned, with construction expected to start by the end of this year and operations to begin by the end of 2027, targeting 6/7nm nodes.

Additionally, TSMC’s 2nm fabs in Hsinchu (Fab 20) and Kaohsiung (Fab 22) in Taiwan are scheduled to start mass production next year.

In the U.S., TSMC’s first fab in Arizona is scheduled to begin producing chips using 4nm technology in the first half of 2025. The second fab will produce both 3nm and 2nm chips using next-generation nanosheet transistors, with production starting in 2025.

Plans for a third fab are also underway, with production of chips using 2nm or more advanced processes expected to begin in 2028.

• UMC’s Fab 12i in Singapore has Set Equipment in Place

On May 21, UMC held a ceremony for the settlement of equipment at its expanded Fab 12i in Singapore with the arrival of the first equipment.

UMC has operated 12-inch fabs in Singapore for over 20 years, and in February 2022, it announced the plan to invest USD 5 billion to expand Fab 12i, adding a new 12-inch fab with a monthly capacity of 30,000 wafers, focusing on 22/28nm processes. Mass production is expected by early 2026.

• Toshiba’s 12-Inch Wafer Fab Completed

On May 23, Toshiba Electronic Devices & Memory Corporation announced the completion of its new 300mm power semiconductor manufacturing fab, with a total investment of JPY 100 billion and plans to begin production in March 2025.

The fab will be built in two phases, with the first phase starting production within the 2024 fiscal year. Once fully operational, Toshiba’s power semiconductor capacity will be 2.5 times that of 2021. Equipment installation is underway, with mass production expected in the second half of FY2024.

• Powerchip Begins Construction of Two New 12-Inch Fabs

On March 13, Powerchip held a groundbreaking ceremony for a 12-inch wafer fab in partnership with India’s Tata Group, located in Dholera, Gujarat, with a total investment of INR 910 billion rupees (about USD 11 billion).

The fab will have a monthly capacity of 50,000 wafers and will produce chips using 28nm, 40nm, 55nm, 90nm, and 110nm nodes.

In early May, Powerchip also announced plans for a new 12-inch fab to expand advanced packaging capacity to support growing demand for AI devices. Powerchip’s chairman stated that the company will provide interposers, one of the three components in CoWoS packaging technology.

• Texas Instruments Built Three New 12-Inch Fabs

Texas Instruments is currently expanding its 300mm capacity to meet future demand for analog and embedded processing chips. TI plans to invest USD 30 billion in building up to four interconnected fabs (SM1, SM2, SM3, SM4) in the coming decades.

According to its 2022 roadmap, TI will build six 300mm fabs by 2030, with RFAB2 in Richardson, Texas, and LFAB (acquired from Micron) already starting production in 2022 and 2023, respectively. Two of the Sherman fabs were completed in 2023, with two more planned for 2026-2030.

In addition to the plan mentioned above, TI also announced the plan for a second 300mm fab in Lehi, Utah in February 2023, adjacent to its existing 12-inch fab, with production estimated to begin in 2026, focusing on producing analog and embedded processing chips. These fabs will be combined into one once the construction is completed.

On August 16, Texas Instruments announced that it received USD 1.6 billion in funding from the U.S. CHIPS Act. This funding will be used to build a cleanroom for the SM1 fab and complete the pilot production line, construct a cleanroom for LFAB2 to begin initial production, and build the shell for the SM2 fab.

• Intel Focuses on U.S. Projects in Arizona and Ohio

Intel has disclosed chip expansion plans in multiple regions, including Arizona, New Mexico, Ohio, Oregon, Ireland, Israel, Magdeburg, Malaysia, and Poland. However, due to market challenges and poor financial results, some of Intel’s expansion plans have been delayed.

Currently, Intel is advancing the construction of large semiconductor manufacturing plants in Arizona and Ohio for the production of cutting-edge semiconductors, as well as working on equipment development and advanced packaging projects at smaller facilities in Oregon and New Mexico.

• GlobalFoundries Revved up Investment in the U.S. and Portugal

On February 19, the U.S. government announced a USD 1.5 billion subsidy for GlobalFoundries. According to a preliminary agreement with the U.S. Department of Commerce, GlobalFoundries will establish a new semiconductor manufacturing facility in Malta, New York, and expand its existing Fab 8 plant in the same location.

The facility will leverage manufacturing technology already implemented in GlobalFoundries’ plants in Germany and Singapore to produce automotive chips, effectively introducing mature-node technology into Fab 8.

In February of this year, GlobalFoundries also announced a partnership with Amkor Technology to build a large packaging facility in Portugal.

It plans to transfer the 12-inch wafer-level packaging production line from its Dresden plant to Amkor’s facility in Porto, Portugal, aiming to establish Europe’s first large-scale backend facility. GlobalFoundries will retain ownership of the tools, processes, and IP transferred to Porto.

• China’s 12-Inch Wafer Production Lines Entered New Stages

In China, companies like SMIC, Huahong, CR Micro (Shenzhen), and Zensemi (Guangzhou) are making new progresses in 12-inch wafer production.

SMIC expects its monthly 12-inch wafer capacity to increase by 60,000 by the end of the year.

Huahong is speeding up the construction of its new 12-inch fab in Wuxi, with the first lithography machine installed on August 22, aiming for production in 1Q24.

CR Micro’s 12-inch fab in Shenzhen has entered the stage of equipment installation and debugging, with production expected to start in late 2024.

Zensemi’s 12-inch wafer manufacturing production line has went into production.

Read more

• [News] Wafer Foundry Market Shows Signs of Recovery
• [News] Two Contrasting Trends Emerge in Wafer Foundry Industry

(Photo credit: TSMC)

On August 16, the U.S. government announced a preliminary agreement with Texas Instruments (TI) to propose up to USD 1.6 billion in direct funding through the CHIPS and Science Act to support three 300mm semiconductor wafer fabrication plants (Fabs) under construction in Texas and Utah. Two of them (SM1 and SM2) is located in Sherman, Texas, and one (LFAB2) in Lehi, Utah.

Haviv Ilan, President and CEO of Texas Instruments, stated that the company plans to increase its internal manufacturing rate to over 95% by 2030, and is currently expanding its 300mm wafer capacity to meet customer demand for analog and embedded processing chips in the coming years.

The funds will respectively be used to build the clean room for SM1 and complete the initial production pilot line, construct the clean room for LFAB2 to start initial production, and build the shell for SM2. In addition to the funding, the U.S. government will also provide up to USD 3 billion in loans to TI.

Moreover, TI expects to receive an estimated USD 6 billion to USD 8 billion from the U.S. Department of Treasury’s Investment Tax Credit for qualified U.S. manufacturing investments, which will support the company’s investment of over USD 18 billion in building the new facilities.

Previously, TI announced the plan to spend USD 30 billion to construct up to four interconnected wafer fabs (SM1, SM2, SM3, SM4) to meet customer demand for the coming decades.

As per its 2022 plan, TI will build six new 300mm wafer fabs by 2030. Among them, RFAB2 in Richardson, Texas, and the LFAB plant acquired from Micron began production in 3Q22 and 1Q23, respectively. Two of the four Sherman plants completed construction in 2023, with the remaining two to start construction between 2026 and 2030.

Aside from the above mentioned plan, TI announced the construction of a second 300mm fab in Lehi, Utah in February 2023, which commenced construction in the second half of 2023 and is expected to start production as early as 2026.

This fab will primarily produce analog and embedded processing chips. It is adjacent to the existing 300mm wafer fab LFAB. Once completed, the two fabs will be merged into a single operation.

Looking forward, TI aims to achieve revenue of USD 45 billion by 2030, more than doubling its 2022 revenue. The company targets a compound annual growth rate (CAGR) of 7% over the next decade, compared to an average growth rate of 4% from 2010 to 2020.

To achieve this, TI has revised its capital expenditure plans, increasing its annual capital spending to USD 5 billion for 2023-2026, with capital expenditures accounting for 10%-15% of revenue after 2027.

Read more

• [News] Nearly 40% of Major Manufacturing Projects Reportedly Face Delays under U.S. IRA and CHIPS Act
• [News] Texas Instruments Plans Large-Scale Transition of GaN Chip Production from 6-inch to 8-inch Wafers

(Photo credit: Texas Instruments)

According to TrendForce’s “2024 Global GaN Power Device Market Analysis Report”, the development of the GaN power device industry is expected to accelerate once again as Infineon and Texas Instruments allocate more resources into GaN technology.

In 2023, the market size of global GaN power device was around USD 271 million, and it is projected to grow to USD 4.376 billion by 2030 at a compound annual growth rate (CAGR) of 49%.

Notably, the proportion of non-consumer applications is expected to increase from 23% in 2023 to 48% by 2030, with automobile, data center, and motor drive being the core application scenarios.

• GaN Expected to Make Great Difference in Reducing Heat and Improving Efficiency in AI Era

The evolution of AI technology has driven the continuous increase in computing power demand, making the power consumption of CPU and GPU an increasingly striking issue. To meet the requirements of more advanced AI computations, server power supply is required to further enhance efficiency and power density, and thus, GaN has emerged as a key solution.

Delta, the world’s largest server power supply provider, holds nearly 50% of the market share. Observing the advancement of its server power supplies, the power density has increased from 33.7W/in³ to 100.3W/in³ over the past decade, while power levels has reached 3.2kW and even 5.5kW, and the next generation is expected to exceed 8kW.

TrendForce’s research indicates that AI server is expected to account for 12.2% of overall server shipment in 2024, an increase of ~3.4% from 2023, while the annual growth rate for general server shipment is only 1.9%.

In face of such an attractive opportunity, both Infineon and Navitas Semiconductor have announced technical roadmaps for AI data center this year.

Infineon highlights the significant advantages of combining liquid cooling technology with GaN at lower junction temperature, which will enable data center to maximize efficiency, meet the growing power demands, and overcome the challenges posed by server heat increase.

• Potential of GaN’s High-Frequency Characteristics can be Fully Tapped in Motor Drive Applications

In motor drive applications like robotics, the potential of GaN is gradually emerging. Compared to industrial robots, humanoid robots have a significantly higher degree of freedom (DoF), greatly increasing the demand for motor drivers.

It’s learned that the joint modules of humanoid robots bear the main tasks of exertion and braking. To achieve higher explosive power, motor drivers with high power density, high efficiency, and high responsiveness are needed. As a result, GaN has attracted market attention, especially in load-bearing areas like the legs.

Texas Instruments and EPC (Efficient Power Conversion) have been dedicated to driving GaN’s application in the motor drive field, drawing new players into the market.

Robotics is expected to embrace a future beyond imagination, where precise, fast, and powerful motion capabilities are crucial, and the motors driving these movements will inevitably advance forward, which will be a boon for GaN.

• GaN Provides New Solutions for Automotive Power Electronics

While SiC thrives in the automotive industry, GaN is also gaining traction in this field, with on-board chargers (OBC) considered the best entry point.

The first automotive-grade GaN power product meeting AEC-Q101 standard was released by Transphorm (now Renesas) in 2017, and several manufacturers have since introduced a wide range of automotive-grade products so far.

Overall, although GaN still faces several technical challenges in entering inverter and OBC power system, it is believed that with continuous investment from major automotive chip companies like Infineon and Renesas, GaN will soon become a key component in automotive power systems.

• Consumer Electronics Remain the Main Applications for GaN

Consumer Electronics still holds the biggest proportion among GaN power device applications, in which GaN’s footprint is quickly expanding from fast chargers to home appliances and smartphones.

Specifically, GaN has been widely adopted in low-power smartphone fast chargers, and next will enter into more demanding applications like notebook and home appliance power supplies. Other potential consumer applications include Class-D audio, smartphone over-voltage protection (OVP), etc.

TrendForce believes that GaN power device industry is at a critical breakthrough moment, with several potential applications simultaneously boosting rapid growth.

Moreover, new structures and processes are expected to be introduced in built on better reliability to get into more complex high-power, high-frequency scenarios, injecting new momentum into the industry.

In terms of industry development and market landscape, Fabless companies have been particularly active in the past.

However, as the industry continues to consolidate and the application markets gradually open up, traditional IDM (integrated device manufacturer) giants are expected to gain significant influence, bringing new major changes to the future landscape of the industry.

Read more

• [News] Foundry Giant GlobalFoundries Acquired GaN-Related IP
• [News] SK keyfoundry Advances in GaN Power Semiconductors, Reportedly Producing for Tesla Soon

(Photo credit: Infineon)