Today, almost every technological device houses a microprocessor or transistor - from compact devices such as calculators to mobile phones, and even microwaves. In a world where we are powered up, plugged in and connected digitally, the demand for technologies powered by semiconductors have risen. With the growing demand, will the semiconductor industry rise to prominence once again?

1. Third-Generation
Third-Generation
Semiconductor
Semiconductor
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2. Agend
2 | THIRD-GENERATION SEMICONDUCTOR
An introduction to 3rd Generation Semiconductor
1
Deep Dive into GaN
2
Deep Dive into SiC
3
Summary
4

3. Semiconductors are essential enablers that power many of the cutting-
edge digital devices we use today. The global semiconductor industry
has evolved over the years and is set to continue its robust growth into
the next decade due to emerging technologies and applications in areas
such as Electric Vehicles (EVs), 5G and the Internet of Things, renewable
energy, photovoltaics (solar) and many other applications.
Coupled with R&D investments and the rising demand for cutting-edge
electronic products, we are seeing an increase in the number of new
applications, and we believe growth is here to stay.
Forewor
3 | THIRD-GENERATION SEMICONDUCTOR
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Any references to particular companies are for illustrative purposes only. There is no assurance that the Adviser will make any investments with the same or similar characteristics as any investment
presented. The reader should not assume that an investment identified was or will be profitable. Past Performance is not indicative of future performance, future returns are not guaranteed.

4. The evolving
semiconductor scene
1
Over the years, semiconductors have evolved from the 1st Generation to the current 3rd Generation.
Each generation presents different set of benefits and challenges. In this section, we look at the three generations
of semiconductors, specifically 3rd Generation semiconductors also known as the Wide Bandgap Semiconductors.
4 | THIRD-GENERATION SEMICONDUCTOR

5. Intr
1 The first generation of semiconductor materials made use of Silicon and Germanium. However,
their properties limited their use in optoelectronic, high-frequency and high power devices.
1st Generation
Gallium Arsenide (GaAs) and Indium Phosphide (InP) was mainly used but they were
scarce, expensive and toxic thus limiting their usage. ​
2nd Generation
3 They were made using Gallium Nitride (GaN) and Silicon Carbide (SiC). Suitable for
making high power, high frequency, high temperature and radiation resistant devices.
3rd Generation
Source: E3S, Department of Electronic and Electrical Engineering
Semiconductors have evolved from the
1st Generation to the 3rd Generation
2
5 | THIRD-GENERATION SEMICONDUCTOR
Intro

6. &
Allows for higher voltage &
more compact
High Breakdown Voltage
3rd Generation semiconductors offer
5 key advantages
Allows for faster heat transfer ​
Higher Thermal Conductivity
Allows higher power efficiency and higher
frequency​
Higher Bandgap
Higher current and higher frequency
Higher Saturation Velocity
Higher current (higher power) ​
Higher Melting Point
SiC & GaN
Source: Harbin Normal University, Power Electronics News, GaN Systems
Use cases include all use cases mentioned
6 | THIRD-GENERATION SEMICONDUCTOR
Use cases include high temperature power
electronics
Use cases include all Radio Frequency (RF)
communications ​
Use cases include high power electronics
Use cases include high temperature
power electronics
Intr
Intro

7. GaN and SiC are better than conventional
Si semiconductors
7 | THIRD-GENERATION SEMICONDUCTOR
BREAKDOWN ELECTRIC FIELD STRENGTH
Sillicon Carbide (SiC)
SiC has a 10x higher breakdown electric
field strength than Si.
Gallium Nitride (GaN)
WIDE BAND GAP
SiC has 3x the band gap thus enabling
higher power efficiencies and higher
voltage use cases.
High-speed Trains
GaN is able to conduct electrons more
than 1000x more efficiently.​
EFFICIENT ELECTRICAL CONDUCTIVITY LOW COST
GaN semiconductors can be manufactured
on Si substrate with comparable cost to
normal Si semiconductor.
APPLICATIONS
Radio Frequency
Power Adaptors
APPLICATIONS
Source: GaN Systems, EPC, Rohm Semiconductors, Mouser, Woodhead Publishing, Passive Components
Intr
Intro
EV Charging

8. Physical property differences allow SiC and GaN
to be used in specialised applications
8 | THIRD-GENERATION SEMICONDUCTOR
High
SILICON CARBIDE (SiC)
Breakdown
Field Strength
Electron
Mobility
PHYSICAL PROPERTY GALLIUM NITRIDE (GaN)
Thermal
conductivity ​
​
Melting
point ​
​
1.3 W/cmK​
​
Low
Higher
5 W/cmK​
​
High
USAGES
2000 ​
​
cm /Vs​
​
2
650 ​
​
cm /Vs​
​
2
SiC is still better suited for higher voltage devices while GaN is
used for mid-low voltage use cases.
GaN's electrons are faster moving than SiCs making GaN more
suitable for higher-frequency applications.
Higher thermal conductivity makes SiC highly advantageous in
high-power, high-temperature applications.
Higher melting point makes SiC suitable for high-temperature
applications.
Source: Power Electronics News, E3S
- refer to the stronger characteristics among the two 3rd Generation Semiconductor materials
Intro
Intr
Intro
*Blue and bold text

9. GaN and SiC are used in specific applications
differentiated by voltage tier
9 | THIRD-GENERATION SEMICONDUCTOR
Source: Yole
Existing Initiatives
LOW VOLTAGE HIGH VOLTAGE
MEDIUM VOLTAGE
<200V 900V
600V 1.2kV 3.3kV 6.5kV
GaN SiC
GaN + SiC
Power Adaptors Photovoltic
EV/ HEV
UPS
Motor Control
High-speed Trains
Windmill Smart Powergrid
Intr
Intro
Radio Frequency

10. A deep dive into GaN
2
Gallium nitride (GaN) is creating an innovative shift throughout the power electronics world. It is a binary III/V
direct bandgap semiconductor that is well-suited for high-power transistors capable of operating at high
temperatures. GaN is used in semiconductor power devices, RF components, lasers, photonics and in the
future, we may see GaN in sensor technology.
10 | THIRD-GENERATION SEMICONDUCTOR

11. The development of Gallium Nitride (GaN)
has came a long way since 2004
11 | THIRD-GENERATION SEMICONDUCTOR
High Electron Mobility Transistors (HEMTs)
Enhancement-mode GaN (eGaN)
First GaN Power Integrated Ciricuit (IC)
Navitas started mass production of GaN powered ICs. Its GaN powered ICs enable up to 3x
faster charging in half the size and weight of the silicon-based power electronics.
Mass Production of GaN Powered IC
HEMT (High Electron Mobility Transistor) gallium nitride (GaN) transistors first appearance was
around 2004 with depletion-mode RF transistors made by Eudyna Corporation in Japan.
Efficient Power Conversion Corporation (EPC) introduced the first enhancement mode gallium
nitride on silicon (eGaN) field effect transistor (FET).
Navitas demonstrated its first GaN Power ICs (high-voltage and half-bridge powered IC)
using its proprietary AlGaN monolithically-integrated 650V platform.
Source: Navitas, EE Power, In Tech Open, GaN Systems, EPC Co, Fibre Optics Online
2004
SEP
2009
JUN
2015
NOV
2019
MAR
Ga
Intro

12. To date, these are the key players in the GaN device
supply chain focusing on manufacturing and design
12 | THIRD-GENERATION SEMICONDUCTOR
Cell components
PRODUCTS DESIGN
FABS
Low Voltage Devices:
100-200V
High Voltage Devices:
600-650V
Players who propose the design but do not have Fabs to
manufacture semiconductors. ​
Fabs (Semiconductor Fabrication Plants)
manufactures semiconductors.
Adapted from Yole
Intro
Ga
Intro

13. Ga The two major applications of GaN are Radio Frequency (RF)
and Switching Mode Power Supply (SMPS)
13 | THIRD-GENERATION SEMICONDUCTOR
Source: Sunpower UK, EE Times Asia, Mouser
&
Radio frequency (RF) waves are a form of
electromagnetic radiation with identified
radio frequencies that range from 3kHz to
300 GHz. Typically for RF applications, D-
mode GaN is utilised.
Radio Frequency (RF)
GaN
High power density, breakdown voltage,
operating frequency, temperature
operation and lower energy losses ​
Properties
Applications
RF Communications
Radar
System 5G Base Stations
SMPS switch mode power supply is a power converter
that uses a switching regulator to convert power
efficiently.
Switching Mode Power Supply
(SMPS)​
​
High power efficiency and more compact
Properties
Applications
DC/DC
Converter
Intro
AC/DC
Converter

14. There are two types of GaN Field Effect Transistors (FETs):
D-Mode and E-Mode
14 | THIRD-GENERATION SEMICONDUCTOR
AlGaN
S G D
GaN
Substrate
2D Electron Gas
Aluminum Nitride Bottom Layer
Depletion Mode (D-Mode) Enhancement Mode (E-Mode)
The depletion mode transistor is normally on and is turned off with a
negative voltage relative to the drain and source electrodes. ​
DIFFERENCES:
The enhancement mode transistor is normally off and is turned on by
positive voltage applied to the gate. ​
In the basic GaN transistor structure, there are Gate, Source and Drain electrodes.
Source: EPC Corporation
Intro
Ga
Intro
S G D
GaN
Substrate
AlGaN
Field Plate
Protective Di-
Electric
2D Electron Gas
Aluminum Nitride Bottom Layer

15. A typical e-Mode GaN Powered Device is
manufactured in...
15 | THIRD-GENERATION SEMICONDUCTOR
Passivation Layer
Metal 3 Metal 3
Via Via
Metal 2 Metal 2
Via
Via
Source Metal
Gate Metal Drain Metal
pGaN
Solder Ball
Solder Ball
Heteroepitaxy is a process whereby one type of crystal structure is grown on top of a
different crystal because GaN substrates are not readily available and are very expensive​
.
Growing the heteroepitaxy
A wafer is a thin slice of semiconductor material used in the fabrication of integrated
circuits. The wafer serves as the substrate for microelectronic devices. Source, drain and
gate are built on top of the wafer​
.
Wafer Fabrication
The preferred method for making electrical connections is by soldering directly to the
contacts. Solder bumps are the small spheres of solder balls that are bonded to contact
areas or pads of semiconductor devices.
Making electrical connections
AlGaN Barrier
GaN
AlGaN Buffer Layer
AlN Seed Layer
Substrate
There are 4 main factors affecting the selection: lattice mismatch, relative thermal
expansion, thermal conductivity and relative cost. The common choices are Si, SiC and
Sapphire.
Selecting the substrate material
1
2
4
Source: EPC Corporation
Ga
Intro
3

16. During the manufacturing process, the technical challenge lies in
the ability to form Ohmic Contact and Schottky Contact at the
same time
16 | THIRD-GENERATION SEMICONDUCTOR
OHMIC CONTACT SCHOTTKY CONTACT
The key technical challenge is to achieve low drain and source
resistance and linearity between the applied voltage and drain
current.
The key challenge is to control the etching process to achieve high
threshold voltage, high drain current, low parasitic capacitance and
low parasitic resistance.
S
G
D
GaN
Substrate
Ohmic
Contact
Ohmic
Contact
Schottky
Contact
*S, G, D refers to source, gate and drain respectively
Source: IOP Conference, Gallium Nitride Power Devices
Ga
Intro

17. Manufacturing of GaN powered devices is often limited by
substrate compatibility and high production cost
17 | THIRD-GENERATION SEMICONDUCTOR
Source: EPC Corporation
Currently, Si and Sapphire substrates are most commonly used due to their low production cost.
However, the industry is shifting towards SiC and GaN based substrates due to their enhanced lattice match.
S G D
GaN
Si Substrate
S G D
GaN
Sapphire Substrate
S G D
GaN
SiC Substrate
S D
GaN
GaN Substrate
Low Cost
Poor Lattice Match
Low Cost
Poor Lattice Match
High Cost
Moderate Lattice Match
Highest Cost
Good Lattice Match
Ga
Intro
G

18. Ga There are ongoing developments in GaN powered devices to
increase manufacturing efficiency and lower production costs
18 | THIRD-GENERATION SEMICONDUCTOR
Metal Insulating Semiconductors
(MIS) SC gates are adopted to
more effectively reduce gate
current leakage. ​
Schottky Contact (SC)
For the production of e-mode devices, the
p-GaN gate HEMT showed a good balance
among performance, manufacturability
and reliability, which has resulted in the
first commercialization of single-chip e-
mode GaN. ​
P-GaN
Vertical GaN is capable of operating at
high breakdown voltage which enables
vertical GaN to power the most
demanding applications.
Vertical GaN Development
GaN Powered
Devices
Regrowth method used to further reduce
OC resistance and to obtain a better
surface morphology and interface.
Using ion implantation and laser
annealing technology to form non-alloy
OC on GaN. ​
​
Ohmic Contact (OC)
Source: MDPI, Power Electronics News, AIP Conference
Intro
Anode
Si Si
n-GAN
u-GAN
p-GAN
Cathode
S G D
GaN
Substrate

19. A deep dive into SiC
3
Today, the Silicon Carbide (SiC) semiconductor is becoming the front runner in power electronics power
devices. It is a growing alternative to silicon-based electronics components, especially in Wide Bandgap
applications. The material offers benefits such as greater power efficiency, smaller in size, lighter in weight
and lower the overall cost of the systems.​
19 | THIRD-GENERATION SEMICONDUCTOR

20. The 5 key advantages of SiC includes...
High breakdown voltage of
more than 600V
2x higher temperature
resistance
High thermal conductivity of
more than 4.9W/cmK
SiC module is 1/7 the
size of Si
SiC is capable of reducing
power losses of up to 90%
as compared to Si
-
1 3 5
2 4
Source: Charged EVs
20 | THIRD-GENERATION SEMICONDUCTOR
Si
Intro

21. SiC is mainly used for power devices
such as...
A diode is a semiconductor device that essentially
acts as a one-way switch for current. It allows current
to flow easily in one direction, but severely restricts
current from flowing in the opposite direction.
Diodes Transistors
APPLICATIONS
Rectifiers Clipper Circuit
A transistor is a miniature semiconductor that regulates or
controls current or voltage flow in addition to amplifying
and generating these electrical signals and acting as a
switch/gate for them.
APPLICATIONS
Microphones Amplifier Circuit
Reverse Current
Protection Circuit
Oscillator Circuit
Source: Tech Target, System Plus Consulting
Intro
21 | THIRD-GENERATION SEMICONDUCTOR
Si
Intro

22. . ..
...
. . .
.
.
Low Energy Loss
High Efficiency
Low Heat
Low Cooling Cost
Low EMI
n- type layer n- type layer
Si diodes are increasingly being replaced by
SiC diodes
Currently, the most abundant material used in diodes are Si but the industry is transitioning to SiC diodes.
Si DIODE SiC DIODE
.
. .
.
. .
Anode
Cathode
Anode
Cathode
Electron
n+ type substrate
n+ type substrate
Low Energy Loss
High Efficiency
Low Heat
Low Cooling Cost
Low EMI
Electron
Source: ST Life Augmented, Tech Web, Goldman Sachs
22 | THIRD-GENERATION SEMICONDUCTOR
Si
Intro

23. Si transistors are rapidly being replaced by
SiC MOSFET
Si MOSFET and Si IGBT are currently the most abundant transistors used but the adoption of SiC MOSFET is rapidly gaining traction
High
SiC MOSFET
Breakdown
Field Strength
Switching
Frequency
PHYSICAL PROPERTY Si MOSFET & Si IGBT
Temperature
Resistance
Switching
Losses
High
Low
Low
Low
High
TAKEAWAYS
High Low
SiC has 10x the critical breakdown field strength as
Si, allowing it to withstand much greater voltage.
High switching frequency allows the use of smaller
external inductor and capacitor values which leads
to size reduction.
Higher temperature resistance allows for usage of
simplified cooling measures and reduces costs.
Low switching losses allows for lesser energy to be
lost leading to greater energy efficiency.
Source: Wolfspeed, IEE Explore, TechWeb
23 | THIRD-GENERATION SEMICONDUCTOR
Si
Intro
- refer to the preferred characteristics of SiC Transistors
*Blue and bold text

24. We see the industry moving towards SiC MOSFET with two
main device design technologies - Planar and Trench​
Players
Planar (DMOS) Trench (UMOS)
Players
The trench design promotes the reduction of ON-Resistance,
switching loss, reduction of device size.
Gate
RJFET
SiC n-epi
Rch
Channel
Trench
Rch
RJFET
The planar design is known to have a less complex manufacturing
process.​
Source: Fuji Electric, IMicroNews
24 | THIRD-GENERATION SEMICONDUCTOR
Si
Intro

25. However, specific production challenges prevent SiC from
reaching maximum cost efficiency and performance
Silicon Carbide (SiC)
Production Challenges
SiC ingots are generated 750x
slower than Si ingots.
Slow Production Rate
SiC has approximately 250 isomers but
only one formula (4H-SiC) can be used
to make power semiconductors under
specific conditions, resulting in higher
production cost.
Multiple Isomers
SiC ingots are in a small and slim pie
shape. This makes SiC ingots extremely
difficult to cut into substrates.
Smaller Size
SiC substrates are more prone to
flaws when being produced. In
addition, SiC substrates are 7-8x
more expensive and take a long
time to form.
High Substrate Defect Density
Extremely high pressure and temperature
between 1600°C and 2500°C is required to
produce a single SiC ingot
High Temperature and Pressure
During the production process of SiC, an
array of polytypes may be formed. Each
polytype has different physical
properties, thus making the production of
SiC devices challenging.
Array of Polytypes
Source: Harbin Normal University, Power Electronics News, GaN Systems
25 | THIRD-GENERATION SEMICONDUCTOR
Si
Intro

26. New innovations are arising to make SiC production
more cost efficient and scalable
Boosting production capacity
Increasing wafer size
Early detection tools
Cree plans to invest USD 1B in attempting to increase the capacity of their semiconductors
Fabrication Plants (FAB) to produce more 150mm SiC Wafers.
Efficient Power Conversion Corporation (EPC) introduced the first enhancement mode
Gallium Nitride on silicon (eGaN) field effect transistor (FET).
Lasertec will continue to pursue the development and advancement of defect inspection
technologies to facilitate the further enhancement of power device quality and productivity.​
1
2
3
Source: Lasertec, SemiEngineering
26 | THIRD-GENERATION SEMICONDUCTOR
Si
Intro

27. In summary, GaN is...
GALLIUM
NITRIDE
Gallium Nitride (GaN) is a binary III/V direct bandgap semiconductor that is well-suited
for high-power transistors capable of operating at high temperatures. ​
GALLIUM NITRIDE
APPLICATIONS
GaN is ideal for Switching Mode Power Supply (SMPS) and Radio
Frequency (RF) applications.
Possible applications that require
SMPS and RF include Radar, Power
Devices and EV charging
1
2
FUTURE DEVELOPMENTS
R&D is mainly focused on vertical GaN development which is capable of operating at high breakdown voltage and has the
potential to power the most demanding applications, such as power supplies for data center servers and EV drivetrains.
3 Vertical GaN Development
Summar
27 | THIRD-GENERATION SEMICONDUCTOR
Anode
Si Si
n-GAN
u-GAN
p-GAN
Cathode

28. In summary, SiC is...
Silicon Carbide (SiC) is a growing alternative to silicon-based electronics components,
especially in wide bandgap applications. The material offers greater power efficiency,
smaller in size, lighter in weight and lowers the overall cost of systems.
SILICON CARBIDE
APPLICATIONS
SiC powered devices have a high use case in diodes and transistors. Diodes are used in
many different types of circuits and transistors are used in amplifiers or switches.
1
2
FUTURE DEVELOPMENTS
R&D currently focuses on improving SiC wafer size from 6 inch to 8 inch to reduce production costs, as well as
developments in equipment used to identify defects in wafers to improve efficiency of SiC based power devices.​
3
SILICON
CARBIDE
Possible applications for SiC
powered devices include audio
amplifiers and power supplies
Summar
28 | THIRD-GENERATION SEMICONDUCTOR

29. Disclaime
29 | THIRD-GENERATION SEMICONDUCTOR
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without the express written permission of Vertex Holdings (“VH”).
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may face political or legal attacks from competitors, industry groups, or local and national governments.
VH aims to educate investors and to size the potential opportunity of Disruptive Innovation, noting that risks and uncertainties may impact our projections and research models.
Investors should use the content presented for informational purposes only, and be aware of market risk, disruptive innovation risk, regulatory risk, and risks related to third-
generation semiconductors.
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