Pioneer semiconductor company Infineon Technologies AG IFNNY has collaborated with Panasonic Corporation PCRFY for jointly developing Gallium nitride (GaN) devices. The devices produced by the tie-up will integrate “normally-off (enhancement mode) GaN" of Panasonic’s silicon transistor with Infineon’s surface-mounted device (“SMD”) packages to ensure greater value for customers.
Per the agreement, Panasonic will also provide Infineon a license of its normally-off GaN transistor structure. With this move, Panasonic expects to expand its GaN power devices leveraging Infineon’s best-in-class technology expertise. Moreover, the idea of dual sourcing will improve the efficiency of supply chain management for both companies, allowing them to compete better in the market.
Apart from providing high-performance GaN devices, this agreement also promises customers the exclusive benefit of holding two sources of compatible packaged GaN power switches. The companies have selected the Applied Power Electronics Conference and Exposition (“APEC”) trade show, to be held in Charlotte, NC, as the platform to unveil samples of 600V 70 milliohm device in a DSO (Dual Small Outline) package.
GaN on silicon devices enhances performance of high-power density adaptors and power supplies, thus reducing their footprints. At the same time, it improves the energy efficiency. These devices are highly adaptable and can be used in high voltage industrial applications as well as low voltage ones, thus, strengthening their demand.
Infineon’s partnership with Panasonic comes at an opportune moment, when the buzz surrounding GaN on silicon devices seems to have reached a high. According to IHS’ market research report, the power semiconductor market carries an immense potential for the future, with an expected compound annual growth rate (CAGR) of 50% and above. In terms of market volume, it is projected to grow from $15 million in 2014 to $800 million in 2023. We believe that backed by such high growth prospects, the collaboration is expected to improve market share for both companies, going forward.
Infineon currently holds a Zacks Rank #2 (Buy). Other well-ranked stocks in the technology sector include Amkor Technology, Inc. AMKR and Cirrus Logic Inc. CRUS, both sporting a Zacks Rank #1 (Strong Buy).
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