Gallium Nitride (GaN) is a compound semiconductor material which possesses notable advantages over the conventional semiconductor materials such as Silicon, Silicon Carbide, Aluminum, and so on. This material is most commonly used in optoelectronic products such as Lasers, LEDs. While the GaN material is also employed in Power Electronics, and Radio Frequency Amplifiers, its usage is not same in these products. The GaN material is a thin film (also called Template) grown on other substrates such as Sapphire, Silicon, and Silicon Carbide.
Opportunities and Growth: The Driving Factors for larger substrates would be the demand for less defects, more efficient devices, Internet of Things and Electric Vehicles.
This market witnesses LED and Power Electronic Products as its key growth areas. While the market is dominated by Sapphire which is nearing maturity, it is noted that SiC Substrates follows the order. As compared to these two leading segments, Silicon and GaN are presently smaller in size but according to research, these two are expected to grow hugely in the coming future.
By 2018, the production of 6-inch bulk substrates is estimated to begin and 4-inch substrates are estimated to constitute 2.5% of the overall bulk substrates market volume.
Region Analysis: 70% of the sapphire producers are located in Asia-Pacific. China production trends and economy will govern the market significantly during the forecast period. With cheaper prices, China dominates the market, but companies are experiencing major loss of margins.