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Growth in Compound Semiconductors Propels Power Electronics and Photonics Forward

Published: 2.27.2024

The compound semiconductor industry is experiencing a surge in growth, particularly in the substrate and wafer markets, driven by advancements in power electronics and photonics. According to Yole Group projections in their Status of Compound Semiconductors Industry 2024 report, the compound semiconductor substrate market is poised to reach a staggering US$3.3 billion by 2029, showcasing a remarkable 17% CAGR between 2023 and 2029.


Across various sectors, including automotive, consumer electronics, telecommunications, and space industries, compound semiconductor technologies like Silicon Carbide (SiC), Gallium Nitride (GaN), and Indium Phosphide (InP) are making significant strides. SiC, for instance, is dominating the automotive sector, particularly in the realm of 800V electric vehicles (EVs), driving a billion-dollar market. Similarly, GaN power electronics are witnessing expanded applications in consumer electronics and automotive fields. 

Moreover, in photonics, InP and GaAs are leading the pack experiencing a resurgence propelled by artificial intelligence (AI) applications. GaAs photonics, though experiencing more modest growth, is still influenced by various market dynamics. 

The compound semiconductor landscape is continuously evolving, with companies like Wolfspeed and Coherent at the forefront of innovation. Wolfspeed, for instance, is spearheading the supply of SiC substrates for power electronics applications, recently transitioning to larger 8-inch wafer fabs to align with its strategic vision. On the other hand, Coherent is focusing on photonic devices and has established strategic alliances, such as with SEDI in RF GaN, to strengthen its position across various markets. 

The compound semiconductor industry is witnessing unprecedented growth and innovation, driven by advancements in power electronics and photonics. With key players driving strategic initiatives and market research firms providing valuable insights, the future looks promising for this dynamic sector. 

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