Samsung Electronics has restructured its LED business and research organization into the CSS Lab to focus on power semiconductors. The GaN and SiC power semiconductor market is projected to reach $17.75 billion by 2031.
Opinion
Power semiconductors are crucial for EVs and advanced IT applications, making Samsung's strategic shift a positive long-term move.
Core Sell Point
While the power semiconductor market offers high growth potential, intensified competition may lead to short-term volatility, requiring cautious investment approaches.
Samsung Electronics is officially scaling down its LED business while ramping up efforts in next-generation power semiconductors. The company’s Device Solutions (DS) division has rebranded its LED Research Lab as the Compound Semiconductor Solutions (CSS) Lab, shifting its focus to R&D in silicon carbide (SiC) and gallium nitride (GaN) power semiconductors. Samsung previously restructured its LED business into the CSS division and completed a full research unit overhaul last year.
CSS (Compound Semiconductor Solutions) refers to compound semiconductors, specifically materials like GaN and SiC, which are witnessing skyrocketing demand due to the expansion of electric vehicles (EVs) and the IT industry. Market research projects the GaN and SiC power semiconductor market to grow at a CAGR of 32.5%, reaching approximately $17.75 billion (25.8 trillion KRW) by 2031.
Samsung is channeling its resources into GaN and SiC-based chip development, with plans to expand production and supply starting this year. Other major domestic competitors are also strengthening their presence in this field. DB HiTek is preparing to mass-produce GaN power semiconductors, while SK Inc. has acquired SK Powertech to expand its SiC power semiconductor business. With intensified investment and technological competition, the industry is expected to see continued active developments.
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