GaN chip maker BelGaN goes bankrupt

BelGaN had taken over the Oudenaarde production and R&D facilities from Onsemi, aiming to advance silicon and gallium nitride (GaN) chip technologies. However, despite the promise of GaN as a material that could revolutionise power electronics and support a greener future, the company struggled to secure sufficient investment, ultimately leading to its downfall.

Gallium nitride holds significant potential in the semiconductor industry, offering substantial improvements in performance and efficiency over traditional silicon-based chips. These advancements are particularly critical in power electronics, which underpin technologies like electric mobility and renewable energy systems. However, the promise of GaN was not enough to keep BelGaN afloat. The company, founded in 2022, had hoped to lead the transition from silicon to GaN but faced insurmountable financial challenges.

In a press release, BelGaN expressed regret over its closure, noting that the company was forced to cease operations due to its inability to attract the necessary investment. Approximately 440 employees have been affected by the shutdown. Despite the grim outlook, there remains a possibility that production could be relocated. In an interview with The Brussels Times, General Manager Roger Willems hinted that the company’s statement was also a call to Belgian policymakers to consider the conditions under which the industry could continue to survive in the country.

The high production costs and uncertainties in the materials market have been significant barriers to the widespread adoption of GaN technology. Many potential users continue to rely on established silicon-based technologies, despite the advantages of GaN. Silicon Saxony, an industry association, lamented the crisis faced by BelGaN, emphasising the importance of supporting emerging technologies like GaN to ensure Europe remains competitive in the semiconductor sector.

Silicon Saxony also drew parallels with the downfall of Qimonda AG, a former semiconductor company in Saxony. Despite its potential, Qimonda slid into bankruptcy in 2009 due to a lack of support from the German government. The association warned that Europe risks repeating the same mistakes by not stepping in to save promising companies like BelGaN.

As BelGaN’s future remains uncertain, broader questions about the viability of GaN semiconductors persist. Issues related to manufacturing costs, durability, reliability, and resource availability continue to pose challenges that need to be addressed if GaN technology is to fulfil its potential in the years to come.