The CS substrate market is strongly driven by power and photonics applications and will be worth close to US$2.4 billion by 2027 with a 16% CAGR. CS has been adopted in various applications over the past decades; recently, however, SiC and GaN in power, GaN and GaAs in RF , GaAs and InP in Photonics, and LED and µLED in display, have all gained momentum. As a result, the substrate and epiwafer markets are also expected to grow.

In this context, Yole Intelligence has developed a dedicated report to provide context for the CS markets in RF, power, photonics, and display applications, including forecasts. In its Status of Compound Semiconductors Industry 2022 report, the company, part of Yole Group, delivers an in-depth understanding of the industry and technology trends for CS substrates such as SiC, GaAs, and InP, as well as the emerging substrates such as Gallium Oxide, bulk GaN, Aluminum Nitride, Diamond etc. This study also reviews in detail the complete CS ecosystem.

Substrate companies are entering the next level of the supply chain… They are offering epiwafers or devices when the “substrate diameter transition” happens.

Meanwhile, II-VI closed its acquisition of Coherent and renamed the company, thus illustrating its change of focus. Today, Coherent is the leading photonic device player as well as the leading SiC substrate supplier for power and RF applications. Moreover, it is working with SEDI on RF GaN device manufacturing and has entered the power SiC device business with GE. Both are strengthening their competitiveness from the substrate level to the device level.

AXT, Sumitomo Electric, Freiberger, and SICC are the leading suppliers of GaAs, InP, and semi-insulating SiC substrates. Their objectives of growing their revenues rely on expanding into other CS materials. Players are looking at the synergy between GaAs and InP substrates for RF, photonic, and µLED applications. Also, players from semi-insulating SiC are entering n-type SiC as it is a market with a higher growth rate. 

As the demands for 5G connectivity, EVs, and fast chargers for smartphones come to the market, compound semiconductors will grow in both volume and market value. Looking into the future, e-mobility, including higher-voltage applications, sensing in various end-systems, the transition from 5G to 6G, and µLED displays will bring inflection points for different CS materials, along with more emerging substrates and applications to come…