Countries around the world are striving to achieve the goal of decarbonization and net zero carbon emissions, and one of the key approaches is further electrification of energy supply and demand. Efficient power conversion is an important driving factor for both. Both renewable energy power conversion applications on the supply side (such as solar inverters) and demand side transportation electrification use broadband gap (WBG) power semiconductors such as silicon carbide (SIC) and gallium nitride (GaN) to gain advantages in power conversion efficiency and power density.

Global electrification level improvement:

The increase in electricity demand is driven by various factors, some of which are as follows:

The transition from fossil fuel internal combustion engines to electric vehicles (EVs) is accelerating as cost improvements, technology, and infrastructure bring greater demand.

The shift towards electric heat pumps in residential and commercial household heating is once again driven by significant improvements in cost and efficiency compared to traditional gas boilers. Electric furnaces are increasingly being used in other industrial applications such as steel production. Applications that are expected to use hydrogen to generate heat, such as the production of bulk chemicals and freight railways, require electricity for production.

The growth of the digital economy and the use of artificial intelligence (AI) have led to a significant increase in global data volume. Data centers and their cooling systems require a significant amount of energy.

Electricity accounts for approximately 20% of world energy consumption. It is expected that this trend will accelerate in the coming years, and the net zero emission scenario will exceed 50% by 2050. Let's take a look at some key supply and demand areas where GaN power semiconductors are expected to play an important role.

Solar energy

Micro inverters, optimizers, and power regulators based on GaN will more effectively convert the direct current generated by photovoltaic panels (PV) into usable alternating current, providing power for homes, charging stations, and electric vehicles. The levelized energy cost (LCOE) of residential solar energy is expected to further decrease in 2024, making it an increasingly cost-effective solution. The demand for higher power photovoltaic panels and battery storage solutions has driven the demand for higher power inverters. GaN based solutions can achieve higher efficiency, smaller system size, and simpler topology.

The bidirectional micro inverter topology can more easily and efficiently integrate energy storage solutions (ESS). The report also predicts that whether it is microgrids (5 kW -500 kW) or centralized utility scale power generation (hundreds of megawatts), photovoltaic power generation will be intelligently integrated into the mainstream grid to a higher level. This will ensure the energy independence and resilience of rural and urban communities.

Data center

According to IEA data, by 2022, data centers will consume approximately 2% of the world's total electricity (approximately 460 TWh), of which 40% will be used for cooling. The amount of data created globally is increasing exponentially and is expected to reach 175 ZB by 2025, an increase of 146 times from 2010. The use of artificial intelligence has significantly increased computational demand, thereby increasing energy footprint. For example, it is believed that the carbon footprint of a single generative artificial intelligence query is four times that of a search engine request.

The demand for GaN power semiconductors in data center applications is strong. The new government regulations will only accelerate this process. The power utilization efficiency (PUE) vulnerability in server power conversion efficiency is expected to be resolved, and the efficiency requirements for data centers will also be higher. The advantage of using GaN to work at lower temperatures is that it reduces cooling power and size requirements. The momentum of liquid cooling in cold plates can also improve server performance.

Electric vehicles

Electric vehicle sales have shown strong growth, with sales expected to soar by 21% in 2024 and exceed two-thirds of global car sales by 2030. SiC power devices play a dominant role in electric vehicle traction inverters. In the automotive market, GaN is expected to play an increasingly important role in the coming years. GaN power semiconductors may be seen as an economically efficient alternative to Si and SiC solutions in 400 V bus systems.

Vehicle mounted chargers (OBCs) and DC-DC converters may have been the initial application targets of GaN. In fast charging 800 V bus systems, multi-level GaN topology can also be a feasible solution. As battery costs continue to decrease, the improved efficiency and power density of GaN can synergistically reduce overall costs while increasing the driving range of electric vehicles.

Consumer and business markets

Starting from 2024, mobile phones, tablets, or cameras sold within the European Union will need to be equipped with a USB Type-C charging port. This simplifies the end user experience. The same power adapter with higher power levels can be used for various devices from mobile phones to laptops, simplifying the charging experience. GaN devices have been widely used in many power adapters, and the requirements for high efficiency and small footprint will accelerate this trend.

In major cities such as Munich, Germany, using these efficient chargers in smartphones can save over 2.3 GWh of household energy annually and reduce 1.1 kt of CO2 equivalent emissions. The audio industry may also leverage the excellent performance of GaN in Class D audio design, making car audio systems lighter, smaller, and more efficient. An efficient multi kilowatt professional audio amplifier system will be implemented by GaN. The use of GaN's simpler design for high fidelity consumer audio will bring significant audio experience improvements to consumers.

It is worth mentioning that Infineon Technology acquired GaN Systems in October 2023. This has accelerated their GaN roadmap. Their GaN product portfolio includes a range of e-mode GaN HEMT devices, with voltage ranges of 100 V to 700 V, and various innovative SMT packaging. These devices are expected to play a crucial role in applications ranging from electric vehicles to power adapters, and contribute to achieving the goal of a net zero economy.

Faust Technology is deeply involved in the field of power devices, providing customers with power devices such as IGBT and IPM modules, as well as MCU and touch chips. It is an electronic component supplier and solution provider with core technology.