The COVID-19 pandemic has increased demand for electronic devices.
Investment in power and compound semiconductor fab equipment,
Expected to reach $6.9 billion next year after a rebound in the second half of this year


Investment in power semiconductor equipment is steadily increasing.

The Semiconductor Equipment and Materials International (SEMI) projected on the 6th that investment in power and compound semiconductor fab equipment will rebound in the second half of this year and reach a record high of $6.9 billion next year, a 59% increase from this year.

According to SEMI's latest Power and Compound Semiconductor Report, investment in 2020 is expected to decline by approximately 8% compared to 2019, but the decline is expected to slow as the COVID-19 situation begins to recover in the second half of the year.

The COVID-19 pandemic has led to a surge in remote work, driving demand for servers, computers, and other electronic devices. This, in turn, is driving demand for power and compound semiconductors used to control the electrical energy in these applications.

In 2019, 804 power and compound semiconductor manufacturing facilities had a monthly production capacity of approximately 8 million 200mm wafers, and by 2024, 38 new facilities are expected to begin operation, increasing production by approximately 20% to 9.6 million wafers per month.

China's power peninsula by region from 2019 to 2024Total fab production is expected to increase by 50%, with compound semiconductors seeing the most significant increase globally, up 87%.

During the same period, production of power and compound semiconductors is expected to increase significantly in Europe and the Middle East. Taiwan is expected to see increased production of power semiconductors, while North America is expected to see increased production of compound semiconductors.

Meanwhile, in Korea, more than 90% of the demand for electricity and compound semiconductors depends on imports.

Currently, Maple, LG Innotek, POSCO, KERI, IA, Yes Power Technics, Kwangwoon University, and Hyundai Motors are developing and demonstrating silicon carbide (SiC) semiconductor technology, while Kyungpook National University, Seoul National University, ETRI, and Iveworks are developing and demonstrating gallium nitride (GaN) semiconductor technology.

In April, Magnachip announced that it would focus on power semiconductors by selling its foundry division to a private equity fund with SK Hynix participating.