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Nexperia invests $200m in Hamburg

28th June 2024
Caitlin Gittins
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Semiconductor manufacturer Nexperia has announced a USD 200 million (approximately 184 million Euros) investment to develop the next generation of wide bandgap (WBG) semiconductors, including silicon carbide (SiC) and gallium nitride (GaN), and to enhance production infrastructure at its Hamburg site. 

Alongside this, Nexperia plans to expand wafer fab capacity for silicon (Si) diodes and transistors. This announcement was made in conjunction with Hamburg’s Minister for Economic Affairs, Dr Melanie Leonhard, during the celebration of the production site’s 100th anniversary.

To meet the increasing long-term demand for efficient power semiconductors, Nexperia will develop and produce SiC, GaN, and Si technologies in Germany from June 2024. This initiative supports key technologies in electrification and digitalisation. SiC and GaN semiconductors, essential for power-hungry applications like data centres, offer exceptional efficiency and are crucial for renewable energy and electromobility. These WBG technologies are significant for achieving decarbonisation goals.

“This investment strengthens our position as a leading supplier of energy-efficient semiconductors and enables us to utilise available electrical energy more responsibly,” said Achim Kempe, COO and Managing Director at Nexperia Germany. “In the future, our Hamburg fab will cover the complete range of WBG semiconductors while still being the largest factory for small signal diodes and transistors. We remain committed to our strategy of producing high-quality, cost-efficient semiconductors for standard applications and power-intensive applications, while addressing one of the greatest challenges of our generation: meeting the growing demand for energy and while reducing the environmental footprint."

Initial production lines for high-voltage GaN D-Mode transistors and SiC diodes began in June 2024. The next milestone will be modern and cost-efficient 200 mm production lines for SiC MOSFETs and GaN HEMTs at the Hamburg factory over the next two years. Additionally, the investment will further automate the existing infrastructure at the Hamburg site and expand silicon production capacity by converting to 200 mm wafers. New R&D laboratories will also be constructed to ensure a seamless transition from research to production.

Beyond technological advancements, this initiative is expected to stimulate local economic development. The investments will contribute to job creation and security, enhancing the European Union's semiconductor self-sufficiency. Nexperia collaborates closely with universities and research institutes to leverage expertise and promote highly qualified employee training. The company relies on a robust research and development ecosystem in Hamburg and throughout Europe. Development partnerships and collaborations, such as the GaN technology programme with the Industrial Affiliation Program (IIAP) of the nanoelectronics research centre imec, play a crucial role. These partnerships ensure continuous innovation and technological excellence in Nexperia’s products.

"The planned investment enables us to bring WBG chip design and production to Hamburg. However, SiC and GaN are by no means new territory for Nexperia. GaN FETs have been part of our portfolio since 2019, and in 2023 we expanded our range of products to include SiC diodes and SiC MOSFETs, the latter in collaboration with Mitsubishi Electric. Nexperia is one of the few suppliers to offer a comprehensive range of semiconductor technologies, including Si, SiC, and GaN in both e-mode and d-mode. This means, we offer our customers a one-stop shop for all their semiconductor needs," explained Stefan Tilger, CFO and Managing Director at Nexperia Germany.

This investment marks another milestone in the 100-year history of Nexperia’s production site in Hamburg-Lokstedt. Since its founding as Valvo Radioröhrenfabrik in 1924, the site has continuously developed and now supplies around a quarter of the global demand for small signal diodes and transistors. Since its spin-off from NXP in 2017, Nexperia has significantly invested in the Hamburg site, increasing the workforce from 950 to around 1,600 and upgrading the technological infrastructure to state-of-the-art. This ongoing investment underscores the company's commitment to industry leadership and providing innovative solutions to its customers worldwide.

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