Samsung to Launch GaN Foundry and SiC Pilot Line, Targeting Power Market

Why It Matters

Samsung’s entry into GaN and SiC production could accelerate the displacement of silicon in power‑electronics, a shift that promises lower energy loss, smaller form factors and higher reliability across a range of applications—from consumer fast chargers to high‑power data‑center converters. By controlling wafer growth and offering a turnkey foundry service, Samsung may lower barriers for fabless designers, fostering a broader ecosystem of wide‑bandgap devices. The move also intensifies competition in a market that analysts estimate will exceed $30 billion by 2030. Samsung’s scale and supply‑chain depth could pressure existing players such as Infineon, NXP and ON Semiconductor, potentially compressing margins but also spurring innovation and capacity expansion across the sector.

Key Takeaways

• Samsung will start mass production of GaN power chips in Q2 2026 on an 8‑inch line.
• Early‑stage GaN foundry revenue is projected below KRW100 billion (US$66 million).
• SiC sample production begins in Q3 2026, starting with planar MOSFETs.
• Domestic rivals DB HiTek and SK keyFoundry plan GaN launches later in 2026.
• Samsung’s CSS team and new MOCVD equipment support in‑house wafer fabrication for both GaN and SiC.

Pulse Analysis

Samsung’s strategy reflects a classic vertical‑integration play, leveraging its massive semiconductor manufacturing footprint to capture value across the entire wide‑bandgap supply chain. By producing its own epitaxial wafers, the company sidesteps the bottlenecks that have plagued other entrants reliant on third‑party wafer suppliers. This control could translate into faster time‑to‑market for customers and tighter cost structures, especially as demand for GaN in 800 V data‑center power supplies and EV chargers accelerates.

However, the modest revenue outlook—under US$66 million in the early phase—highlights the chicken‑and‑egg problem of building a foundry business: without a sizable design ecosystem, capacity remains underutilized, and without capacity, designers hesitate to commit. Samsung’s turnkey model, which excludes chip design, may mitigate this risk by attracting fabless firms that lack the capital to run their own fabs, but it also limits upside if customers prefer integrated design‑fabrication services.

Regionally, Samsung’s move puts South Korea in direct competition with Taiwan’s DB HiTek and other Asian players, potentially reshaping the global power‑semiconductor map that has been dominated by U.S. and European firms. If Samsung can scale its GaN line and transition to high‑volume SiC production within the next two years, it could capture a meaningful share of the projected $30 billion market, pressuring incumbents to accelerate their own capacity expansions and possibly prompting consolidation among smaller foundries. The coming months will reveal whether Samsung’s nanofabrication investments translate into sustainable market share or remain a niche offering within a rapidly evolving sector.