Edition Week 27 - 2025
The Semiconductor Newsletter
📢 Welcome to the Week 27 edition of The Semiconductor Newsletter, featuring important developments shaping the global semiconductor landscape. This week highlights:
Global Assembly and Test Capacity Expands with 750 Facilities in 2025: new site additions and enhanced classification support detailed analysis of packaging and test capabilities.
TECHCET Forecasts 6% Growth in Semiconductor Materials Market for 2025: front-end materials lead the recovery amid geopolitical constraints and rising AI-driven demand.
AIXTRON Leads €28.4M Project to Halve Energy Use in SiC Epitaxy: joint initiative aims to reduce power consumption through AI-driven tool and process optimization.
Navitas and Powerchip Partner for 200mm GaN-on-Silicon Production: strategic production shift addresses cost, scale, and yield for high-voltage infrastructure markets.
Infineon Scales 300mm GaN Wafer Production for Power Applications: 300mm platform enables higher output, lower cost, and broader application in power electronics.
Xanadu and Mitsubishi Chemical Develop Quantum Algorithms for EUV Simulation: collaboration explores quantum modeling to accelerate photoresist R&D for advanced lithography.
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1. Global Assembly and Test Capacity Expands with 750 Facilities in 2025
Expanded Facility Tracking and Technology Classification
SEMI and TechSearch International have released the 2025 edition of the Worldwide Semiconductor Assembly & Test Facility Database, covering 750 facilities globally. This edition includes 70 new sites compared to 2024, emphasizing growth in outsourced semiconductor assembly and test (OSAT) and integrated device manufacturer (IDM) operations. Each facility now has a unique identifier and expanded metadata, including device categories such as logic, analog ICs, RF/MEMS, power devices, and CMOS image sensors. This enables users to analyze manufacturing capabilities and test specialization across regions and nodes.
Improved Insights for Strategic Decision-Making
The enhanced data structure includes startup years and refined categorization for operational maturity. Regular updates include location, ownership, plant type, certification, and production capabilities. With heightened clarity in packaging and test trends, this resource supports capacity planning, regional investment assessment, and supply chain risk evaluation. It offers a strategic view of global semiconductor infrastructure for stakeholders across market intelligence, manufacturing, and procurement.
2. TECHCET Forecasts 6% Growth in Semiconductor Materials Market for 2025
Front-End Process Materials Lead Revenue Recovery
TECHCET projects a 6% growth in semiconductor materials revenue in 2025, driven by demand for AI-related wafer starts. Front-end process materials are forecasted to recover with strong performance in atomic layer deposition (ALD), chemical vapor deposition (CVD), quartz, CMP ancillaries, and metal plating chemicals—each growing between 9% and 10%. The overall materials market is set to surpass 87 billion USD by 2029, with a compound annual growth rate of 5% projected from 2025 to 2029.
Geopolitical Impact Balanced by AI and Sectoral Recovery
Export controls and geopolitical tensions, particularly between the United States and China, are expected to continue influencing the semiconductor value chain. Despite a slower start for consumer electronics, automotive, and PC markets in the first half of 2025, a stronger second half is anticipated. This rebound may push total materials revenue growth to the 8%–10% range by year-end, sustained by AI, automotive electrification, and broader compute adoption.
3. AIXTRON Leads €28.4M Project to Halve Energy Use in SiC Epitaxy
Collaborative Research Targeting Process Efficiency
AIXTRON, Fraunhofer IISB, and bimanu Cloud Solutions are spearheading a €28.4 million project aimed at increasing energy efficiency in silicon carbide (SiC) epitaxial deposition. Funded by the German Federal Ministry of Education and Research, the initiative seeks to reduce electricity consumption per unit area by 50% during SiC semiconductor production. AI-driven process optimization is central to the project’s objective, targeting significant reductions in energy, water usage, and waste generation.
Tool Development and Data-Driven Process Innovation
Fraunhofer IISB, with Europe’s only continuous 150 mm SiC line, provides R&D expertise on process advancement. Bimanu contributes capabilities in industrial data analytics and integration. AIXTRON focuses on developing and validating new tool technologies through test systems and simulation models. The project strengthens Europe’s leadership in wide-bandgap materials and sustainable semiconductor manufacturing practices.
4. Navitas and Powerchip Partner for 200mm GaN-on-Silicon Production
GaN Expansion Targeting AI, EV, and Renewable Segments
Navitas Semiconductor has announced a strategic agreement with Powerchip Semiconductor Manufacturing Corporation (PSMC) to launch 200mm GaN-on-silicon production using Fab 8B in Taiwan. The fab employs an advanced 180nm CMOS platform, supporting voltage ranges from 100V to 650V for GaN ICs. Initial device qualification is scheduled for Q4 2025, with 100V products entering production in 1H 2026. Transition of 650V GaN devices from TSMC to PSMC is planned over the following 12–24 months.
Integration with AI Infrastructure and Automotive Platforms
Navitas technology will support 48V architectures for hyperscale AI data centers, electric vehicles, solar applications, and consumer electronics. Recent collaborations include NVIDIA (1 MW IT rack power architectures), Enphase (650V GaNFast ICs in IQ9), and Changan Automobile (GaNSafe-based onboard chargers). The PSMC partnership enables scale-up of GaN solutions while optimizing cost, yield, and supply chain stability for emerging high-power-density markets.
5. Infineon Scales 300mm GaN Wafer Production for Power Applications
IDM Strategy Advances Manufacturing Transition
Infineon Technologies has confirmed progress on 300mm GaN wafer manufacturing, with initial samples scheduled for Q4 2025. As part of its integrated device manufacturer (IDM) strategy, Infineon controls the full production chain and is leveraging its Si, SiC, and GaN capabilities to meet rising demand in power systems. The 300mm platform enables 2.3 times more chips per wafer compared to 200mm, supporting higher volumes and cost efficiencies.
Applications in AI, Robotics, and Energy Conversion
GaN semiconductors enable high-speed switching, compact designs, and reduced power loss across sectors including smartphone charging, solar inverters, motor control, and AI system power delivery. Infineon’s process integration, IP portfolio, and in-house scaling support adoption across automotive, industrial, and consumer segments. The 300mm manufacturing base provides strategic leverage for competitive pricing and rapid deployment in next-generation electronics.
6. Xanadu and Mitsubishi Chemical Develop Quantum Algorithms for EUV Simulation
Quantum Computing Targets Lithography Modeling Challenges
Xanadu and Mitsubishi Chemical have launched a collaboration to explore quantum computing applications in extreme ultraviolet (EUV) lithography. The project focuses on simulating quantum-level processes—such as Auger decay and secondary electron interactions—in photoresist materials used in next-generation semiconductor fabrication. Quantum algorithms will be developed to overcome modeling limitations inherent in classical computing approaches to lithographic process simulation.
Integration of Materials Science and Quantum Algorithm Design
Mitsubishi Chemical’s Materials Design Laboratory contributes expertise in EUV photoresist chemistry and physical process modeling. Xanadu’s quantum algorithms team will design simulations of light-matter interactions with quantum processors. This partnership aims to establish a foundational use case for quantum computing in semiconductor materials R&D, with the goal of accelerating innovation in nanoscale patterning and materials discovery for advanced node manufacturing.
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