"We plan to accelerate our entry into the smart wearables and medical markets with high-performance sensors, while expanding our new Gallium Nitride (GaN) power semiconductor business into the telecommunications and defense sectors as a new growth engine,” said Shim Kyu-hwan, CEO of Sigetronics.

Founded in 2008, Sigetronics is a specialized Integrated Device Manufacturer (IDM) based in Wanju, Jeollabuk-do, South Korea. The company possesses proprietary technologies for ESD (Electro Static Discharge) protection devices, sensors, and advanced compound power semiconductors, and operates its own fab to ensure full in-house production. Sigetronics went public on KOSDAQ in August last year.

The company’s main revenue driver is its ESD business, which accounted for 64% of total sales in 2023. These devices protect internal circuitry in electronic devices from sudden surges like static electricity.

Recently, Sigetronics has been diversifying its revenue streams by expanding into high-performance sensors and compound semiconductors. A key force behind this push is CEO Shim Kyu-hwan, who holds a Ph.D. in GaN epitaxy and devices and brings more than 38 years of experience in compound semiconductor R&D.

Shim began his career at ETRI (Electronics and Telecommunications Research Institute), where he focused on compound power semiconductors for 18 years. After earning his doctorate from the University of Illinois in 1992, he served as a professor of semiconductor science and technology at Chonbuk National University from 2004 to 2022. Sigetronics' core engineering team includes semiconductor professionals with over 15 years of design experience, bolstering its competitive edge in specialty semiconductors.

Expanding Sensor Business: Supplying to Smartwatches and Smart Rings

Sigetronics is developing broadband photodiode (BB-PD) sensors in flip-chip form for the wearable market, including smartwatches and smart rings. The company already supplies sensors to a global top-tier smartphone maker’s smartwatch for heart rate and SpO₂ monitoring, and this year it began supplying sensors for the company's smart rings as well. As a result, sensor revenue has

“We are currently undergoing qualification testing to supply sensors for the next-generation smartwatch from the same customer,” said CEO Shim. “We are also developing new sensors for the upcoming models, and expect to scale up our shipments significantly.”

He added that the company has developed a new IR emitter sensor and delivered samples to customers, with mass production scheduled to begin next year. These infrared LEDs are used in gesture recognition, obstacle detection, and distance measurement in robotics and smartphones.

Looking forward, Sigetronics aims to expand into the medical wearables market. Shim noted, “Although adoption in medical settings is currently limited, wearable devices may soon become mandatory in hospitals for patient monitoring. We're developing various sensors for this purpose while also targeting the fast-growing robotics market.”

Compound Semiconductor Business Ramps Up with New Fab Construction

One of Sigetronics' strengths lies in its in-house 6-inch wafer fab located in Wanju and its expertise in epitaxial (Epi) technology, a core process for growing thin films on substrates such as silicon (Si), silicon carbide (SiC), GaN, and Ga₂O₃. Through its M-FAB foundry line, the company manufactures ESD devices, sensors, defense-grade power semiconductors, and other compound semiconductor products.

To further expand, Sigetronics recently secured land in Iksan for a new fab, with construction scheduled to begin in 2025. The new facility will focus on compound semiconductor mass production starting in 2026.

“To support the expansion, we’re steadily investing in front- and back-end equipment,” Shim stated. “Some volume is currently outsourced to nearby partners, but once the new fab is operational, we’ll significantly boost our production capacity.”

Sigetronics is the only company in Korea with technology spanning GaAs, GaN, Ga₂O₃, and SiC semiconductors. Among these, GaN is seen as the company’s primary future growth driver.

“We’re focusing on GaN-based power and RF (radio frequency) devices,” said Shim. “GaN power semiconductors are in high demand for data center power systems and renewable energy markets, while GaN RF devices are essential for wireless communications, satellites, and radar systems in defense applications.”

According to Yole Développement, the global GaN device market is forecast to grow from $126 million in 2021 to $2 billion by 2027, representing a CAGR of 59%.

Strong Revenue Outlook for 2025

With robust growth across its sensor and compound semiconductor businesses, Sigetronics expects a year-on-year revenue increase in 2024, and a potential doubling of revenue in 2025 as new 

ZDnet korea, narilee@zdnet.co.kr, November 13, 2024