South Korean chip contract manufacturer Key Foundry has formed a gallium nitride (GaN) research team as demand for chips made using the material continues to increase.
The company is aiming to offer 8-inch GaN wafer foundry services for customers, sources said.
Key Foundry currently contract manufactures display driver ICs, power management ICs and other chips with 8-inch silicon wafers.
GaN is known to be more durable and offers a faster switching speed compared to silicon while also having a wider band gap.
These characteristics have caused demand for GaN power management ICs to increase in consumer electronics, RF, vehicles and other applications.
Analyst firm Yole Development expects GaN device market to grow 59% per year from 2021 to 2027 to ultimately worth US$2 billion.