In the wave of the thriving Global semiconductor industry, Gallium Nitride Semiconductor leader Innosek, with its unique technological advantages, vast market prospects, and strong cornerstone investor lineup, has rapidly become one of the most notable focal points in the year-end market.
Against this backdrop, Silan Microelectronics Technology (Hangzhou) Co., Ltd. (hereinafter referred to as "Silan") announced on the 19th its intention to invest 20 million USD (cap) in Innosek to acquire a 0.5% equity stake, sparking discussions in the market.
From an industry perspective, Silan's investment in Innosek may have milestone significance in the development history of the Gallium Nitride Semiconductor industry.
Heavyweight investors reappear, and market confidence increases.
According to the information disclosed in the prospectus, Innosek has introduced a number of strong cornerstone investors, such as STMicroelectronics and Jiangsu State-owned Assets Fund, which undoubtedly adds strong support to its listing path and conveys a positive signal to the market.
Among them, STMicroelectronics, as a globally renowned semiconductor enterprise, has shown its high recognition of Innosek's technological strength and market prospects by subscribing for 50 million USD in shares. STMicroelectronics' deep heritage in the semiconductor field and extensive market channels are expected to synergize with Innosek to jointly explore the market and enhance competitiveness for both parties.
In addition, with the inclusion of renowned domestic investment institutions such as Jiangsu State-owned Enterprises Mixed Ownership Reform Fund, Jiangsu Suzhou High-end Equipment Industry Special Mother Fund, and Suzhou Dongfang Chuanglian Investment Management Co., Ltd., it not only provides ample funding support for Innosek, but also reflects the domestic capital and policy support for the Gallium Nitride Semiconductor industry and the bullish outlook on Innosek's development potential.
According to public news on the 19th, Silan Microelectronics Technology (Hangzhou) Co., Ltd. (hereinafter referred to as "Silan") intends to invest 20 million USD (cap) in Innosek to obtain a 0.5% equity stake, further highlighting Innosek's investment value.
It is reported that Silergy has been deeply engaged in the semiconductor field for many years, accumulating rich technical strength and market resources in analog integrated circuits and power management chips. Its products are widely used in Consumer Electronics, Communication Equipment, industrial control, and other fields, establishing a good reputation in the industry with high-quality and high-performance power management solutions.
In recent years, Silergy has indeed had many advantages and outstanding performance in the automotive-grade semiconductor field. Its products cover various automotive-grade semiconductors, such as Direct Current conversion chips, AC-DC conversion chips, multi-channel power management chips, Battery management system chips, light sensors, motor drives, audio amplifiers, and power modules, which can meet the requirements of different systems in Autos. According to public data, Silergy's global market size for automotive chips is expected to reach 60 million USD in 2024, and the sales of automotive chips will account for more than 10% of the company's total sales, with long-term targets showing that revenue proportion will be around one-third, demonstrating strong growth momentum and market potential.
Silergy's investment in Innoscience may bring new development opportunities for both parties, and they are expected to work together to create more value and innovative results in the semiconductor industry.
From a technological synergy perspective, Silergy's power management technology can be optimally integrated with Innoscience's Gallium Nitride power devices to develop more efficient and intelligent semiconductor solutions that meet the demand for high-performance, low-power electronic products across different market sectors. For example, in the industrial control sector, by combining the technological advantages of both sides, more precise power control and higher power conversion efficiency can be achieved, enhancing the overall performance and stability of the equipment.
In market expansion efforts, Silergy's extensive customer base and market channels will provide more promotional opportunities for Innoscience's products, accelerating market penetration. At the same time, Innoscience's Gallium Nitride technology will also provide new impetus for Silergy's product upgrades and business expansion, achieving mutually beneficial outcomes for both parties and jointly enhancing competitiveness and market share in the Global semiconductor market.
Technical strength builds core competitiveness.
It is noteworthy that Innoscience has demonstrated outstanding technical strength in the Gallium Nitride power semiconductor field, which is a significant highlight in its prospectus.
As the world's first company to achieve mass production of 8-inch silicon-based Gallium Nitride wafers, Innoscience has made significant technological breakthroughs, leading the industry's development trend. Its yield for 8-inch silicon-based Gallium Nitride wafers has exceeded 95%, and it has broken through the production bottleneck of 12,500 wafers per month. This data not only demonstrates its maturity and efficiency in production processes but also means Innoscience can meet the strong market demand with stable and large-scale production capacity.
In addition, the company has accumulated rich experience and strong technical expertise in the research and production of Gallium Nitride power devices, with products covering the full spectrum from low to high voltage, widely applicable in various fields. For example, its Gallium Nitride discrete devices perform excellently in the electric machine drive and battery charging systems of new energy vehicles, effectively improving energy conversion efficiency and system performance; in the power conversion modules of 5G base stations, InnoPhase's products provide strong support for the stable operation of the base stations due to their high frequency and high efficiency characteristics; in the fast charging applications in the Consumer Electronics field, they have also gained favor among many well-known brands thanks to their rapid charging and miniaturization advantages, gradually expanding market share.
At the same time, InnoPhase possesses a strong technical research and development team and patent accumulation advantages. According to the prospectus, as of June 30, 2024, the company holds 319 patents and 430 patent applications globally, covering key areas such as chip design, device structure, wafer manufacturing, packaging, and reliability testing. Its Gallium Nitride discrete devices are used in various low, medium, and high voltage application scenarios, with product development ranging from 15v to 1,200v, and continuous technological innovation helps InnoPhase maintain its leading position in the industry, assisting in the ongoing exploration of new market applications.
The vast market prospects spark imagination.
The semiconductor industry has always been the focus of global technological competition. In recent years, with the rapid rise of emerging technologies such as 5G communication, AI, and new energy vehicles, higher demands for the performance, power consumption, and integration of semiconductor devices have been proposed.
Gallium Nitride (GaN), as a representative of third-generation semiconductors, demonstrates great application potential in the field of power semiconductors due to its excellent physical properties like high electron mobility, high breakdown electric field strength, and high thermal conductivity. It is seen as one of the important directions for the future development of the semiconductor industry.
With the increasingly urgent global demand for energy-saving and efficient energy use, the Gallium Nitride power semiconductor market has entered a golden development period. According to market research institutions, the market size of Gallium Nitride power semiconductors is expected to experience explosive growth in the coming years, and InnoPhase, with its leading technology and production capacity advantages, is positioned to benefit. Based on the revenue of Gallium Nitride discrete devices, InnoPhase ranked first among global Gallium Nitride power semiconductor companies in 2023, with a market share of 33.7%. InnoPhase is already positioned at the forefront of this market growth.
From various industries, for example, in the new energy vehicle sector, governments around the world are implementing policies to promote the adoption of electric vehicles, which will significantly drive the demand for high-performance power semiconductor devices. InnoPhase's products can meet the requirements of electric vehicles for efficient charging, long range, and high reliability, and have established close cooperative relationships with many Auto Manufacturers, promising to gain a share in this rapidly growing market.
In the communications field, the accelerated construction of 5G base stations and strict requirements for device power consumption and size make Gallium Nitride power semiconductors essential components. InnoPhase's products can adapt to the high frequency and high power characteristics of 5G communication, providing quality solutions for Communications Equipment manufacturers, with huge market potential.
In addition, the continuous upgrade of the Consumer Electronics market, such as Smart Phones, tablets, and other devices, has led to a growing demand for fast charging features, providing ample application space for Innoscience's Gallium Nitride products.
Ending section.
The immense investment attractiveness and development potential demonstrated by Innoscience in the future does not stop here. It is believed that in the near future, Innoscience will open a new chapter in the field of Gallium Nitride power Semiconductors, and the company will likely continue to contribute significantly to the development of the Global semiconductor industry.
