IQE Eyes GaN Expansion with US, EU CHIPS Act Support

Substrate supplier IQE is gearing up to apply for funding under the US Chips Act to enhance its gallium nitride (GaN) epi wafer production. Chief technology officer Rodney Pelzel mentioned that there was an initial education hurdle on compound semiconductors and the supply chain, but they have been actively engaging with the authorities.

Moreover, IQE is exploring the possibility of establishing a site in Europe with support from the EU Chips Act. Locations such as Dresden in Germany, Crolles in France, and Barcelona have already secured funding under the Chips Act. Pelzel stated, "We have discussions with major places that are actively pursuing us. We are looking for a strategic location in the UK or EU that aligns with our manufacturing and development strategy."

Despite being headquartered in Cardiff, Wales, IQE has faced challenges in receiving government support, as highlighted by CEO Americo Lemos. Pelzel expressed frustration, stating, "The UK government's lack of understanding and slow decision-making process regarding funding for R&D and manufacturing has been a significant obstacle for us."

One crucial factor in selecting a location is the availability of a skilled talent pool. Pelzel emphasized, "The skill set required for epitaxy is distinct, and the talent pool needs to match the innovative demands of the industry. Hiring individuals from silicon fabs can be challenging due to these differences." IQE primarily focuses on 150mm and 200mm diameter silicon wafers with a GaN epi layer for cost-effective device manufacturing.

Looking ahead, IQE has plans to transition to processing 300mm wafers, anticipating significant opportunities in GaN for power and microLED applications. Pelzel highlighted the potential of microLED technology in the context of AI advancements, driving the need for larger wafers and more sophisticated devices. He emphasized the importance of efficient clustering of equipment for 300mm wafers, especially considering geopolitical factors and regional restrictions impacting GaN capacity.