Seoul, South Korea — Shares of Sigetronics surged in the stock market following reports that Samsung Electronics is preparing for initial production of next-generation GaN (Gallium Nitride) power semiconductors, signaling growing investor interest in the GaN semiconductor sector.

According to industry and market sources on July 2, Samsung has begun investing in manufacturing equipment at its Giheung facility during the second quarter of this year, marking its first step toward entering the GaN foundry market. The installed equipment is understood to be sufficient for pilot production, with full-scale mass production to follow based on market demand and client acquisition.

Sigetronics, a specialized semiconductor manufacturer based in Wanju, Jeollabuk-do, is currently co-developing GaN power device technology in partnership with the Korea Nano Technology Research Society (K-Nanotech). The company made headlines last year after it successfully implemented an enhancement-mode (E-mode) GaN power transistor using a 6-inch GaN-on-Silicon (GaN-on-Si) epitaxial wafer, supplied to support the development of high-efficiency power conversion systems.

GaN power semiconductors are increasingly recognized for their superior performance in high-temperature, high-voltage environments compared to traditional silicon-based devices. The material's high efficiency and fast switching capabilities make it ideal for applications across the IT, telecommunications, and automotive sectors.

Samsung Electronics, noting the immense growth potential of GaN power semiconductors, previously announced at its 2023 Samsung Foundry Forum in Silicon Valley that it aims to launch 8-inch GaN foundry services by 2025, targeting consumer electronics, data centers, and automotive applications.

In alignment with this vision, Samsung reportedly installed metal-organic chemical vapor deposition (MOCVD) equipment from Germany’s AIXTRON at its Giheung fab. Currently, AIXTRON and U.S.-based Veeco dominate the global market for GaN MOCVD equipment, with AIXTRON holding a significant share. Industry insiders revealed that Samsung held discussions with AIXTRON’s CEO last year, during which equipment orders ranging from 30 to 40 units were considered.

Given Samsung's push into the GaN sector, attention has now turned to Sigetronics, one of the few Korean firms that has already achieved a domestic implementation of E-mode GaN power transistors. Investors are viewing Sigetronics as a potential beneficiary of increased demand and collaboration opportunities in the expanding GaN ecosystem.

With power semiconductors gaining global traction and Samsung initiating its entry into pilot production, Sigetronics’ technical achievements and strategic R&D partnerships are fueling heightened investor interest and a notable uptick in share prices.

Financial Post, press@financialpost.co.kr, September 2, 2024