SK Siltron, UK's IQE to produce high-efficiency wafers for Asian market

South Korean silicon wafer maker SK Siltron Co. has teamed up with UK-based wafer products supplier IQE plc to produce gallium nitride (GaN) epitaxial wafers, which are widely used for wireless communications and power generation.   

The Korean wafer manufacturer said on Tuesday it had signed a strategic collaboration agreement with IQE on Oct. 6.

Under the agreement, the two parties will jointly develop GaN epitaxial wafers and work to expand this business in the Asian market.    

GaN is a very hard, mechanically stable semiconductor. Because of its characteristics, GaN epitaxial wafers have more efficient power conversion in high-voltage and high-temperature environments than ordinary wafers. 

Such wafers are seeing demand grow, as they are increasingly used in high-tech products such as electric vehicles, smart devices and 5G service-based high-speed network equipment.

SK Siltron is boosting its investment in wafer production. On Sept. 29, the firm said it will invest 855 billion won ($596.4 million) to expand its 300-millimeter (12-inch) silicon wafer manufacturing facilities. The wafer maker will review an additional investment of 400 billion won in plant expansion during the first half of 2023.

The firm is one of several companies that collectively dominate 90% of the global silicon wafer market, alongside Japan’s Shin-Etsu Chemical Co. and Sumco Corporation, Taiwan’s GlobalWafers Co. and Germany’s Siltronic AG.

Write to Jeong-Soo Hwang at hjs@hankyung.com
Jihyun Kim edited this article.