Japan's Mitsubishi Chemical Group and The Japan Steel Works (JSW) will significantly expand their production capacity for gallium nitride (GaN), a core material for next-generation power semiconductor substrates.

According to the Nikkei on the 8th, the two companies have decided to increase their production capacity by 50% next year compared to this year to keep pace with the rapid growth of the electric vehicle (EV) and data center markets.

The GaN substrates for power semiconductors, which the two companies are jointly developing, are characterized by their ability to withstand higher voltages than conventional silicon materials.

Another advantage is that their current control speed is faster than that of silicon carbide (SiC), another next-generation material, allowing for minimized power loss.

Mitsubishi Chemical Group Website [Website Capture]

Accordingly, demand is expected to surge for applications such as EV fast chargers, inverters, and power supplies for data centers.

The two companies plan to triple their production capacity by April of next year compared to 2021 levels.

To achieve this, they will expand substrate manufacturing facilities at The Japan Steel Works’ Muroran Plant in Hokkaido and increase processing equipment at Mitsubishi Chemical’s Ibaraki site.

The companies previously doubled their production capacity compared to 2021 levels this past April.

Currently, the two firms are conducting client evaluations with 4-inch substrates, and in line with the trend toward larger substrates, they plan to begin supplying 6-inch samples within this year and 8-inch samples in fiscal year 2028.

As Chinese companies have recently been accelerating their entry into the GaN market, the Nikkei explained that the two companies intend to secure a dominant position in the early market through preemptive investment.