According to IDC data, China's overall AI market reached $2.18 billion in the first half of 2021. Since 2015—often regarded as the year AI began to make significant breakthroughs—the AI industry has undergone seven years of growth and is now entering its second phase.

The third-generation semiconductors, primarily based on silicon carbide and gallium nitride, are among the most promising semiconductor materials following silicon. As highlighted in the "14th Five-Year Plan" and the 2035 Vision Goals Outline, China will accelerate the industrialization of next-generation semiconductor materials and technologies—led by silicon carbide and gallium nitride—spurring the emergence of a new wave of rapidly growing materials companies.

May 13, 2022, by Yuanhe Chenkun 、 Nano Company Jointly organized "Kunpeng Hui" Series Ecosystem Technology-Capital Matchmaking Event – Driving the Development of the Third-Generation Semiconductor Industry with Strategic Capital Support Held both online and offline.

This event invites the CEO, CTO, and Chief Scientist of Zhuhai Jia Weilai Technology Co., Ltd. Wu Yifeng Dr., Co-founder and Vice President of Jiangsu Nengxun High-Energy Semiconductor Co., Ltd. Ren Mian , Partner at Amoeba Capital Chen Zhuo , Partner at Zhongke Chuangxing Yuan Bo Sharing insights on topics such as the current status and industrialization of gallium nitride power devices, the development trends and future prospects of the GaN microwave RF industry, and investment opportunities in the third-generation semiconductor sector; also welcoming the Vice President of Suzhou Nanotechnology Development Co., Ltd. Jiang Qinfeng , providing insights into Suzhou Nano City's infrastructure development, service system, policy environment, and the strategic layout of its third-generation semiconductor industry.

Wu Yifeng, CEO/CTO and Chief Scientist of Zhuhai Gallium Future Technology Co., Ltd., highlighted in his keynote speech titled "Gallium Nitride Power Devices: Technology and Industrialization Trends" that gallium nitride holds a clear advantage over silicon carbide in high-power and high-frequency applications. Compared to traditional power devices made from conventional materials, the third-generation semiconductor technology based on gallium nitride can significantly enhance energy efficiency. For instance, when comparing chargers, a gallium nitride-based fast charger of the same power output typically comes in a bulkier design and consumes more energy than its silicon carbide counterpart. Moreover, gallium nitride technology enables individual 5G base stations or data center servers to save approximately 200 to 1,000 kilowatt-hours of electricity annually. Additionally, the size and weight of power conversion systems can be reduced by 20% to 50%, leading to lower material consumption for components like transformers and capacitors. Looking ahead, gallium nitride-powered semiconductor applications are poised to expand beyond consumer electronics into high-power home appliances, next-generation electric vehicles, and even solar energy conversion systems. As China sees a growing number of domestic companies entering the gallium nitride power semiconductor market, competition is expected to intensify. Ultimately, only firms that genuinely possess cutting-edge core technologies and scalable, mass-production-ready solutions will stand out in this rapidly evolving industry.

Regarding the current status and future prospects of the GaN-based RF industry, Ren Mian, Co-founder and Vice President of Jiangsu Nengxun High-Energy Semiconductor Co., Ltd., believes that gallium nitride, thanks to its exceptional efficiency and power density, is poised to become the dominant technology in RF front-end applications. Moreover, domestic production of RF devices has emerged as a strategic necessity. In the 2G, 3G, and 4G eras, silicon-based LDMOS was the mainstream solution for RF power amplifiers used in base stations, with key suppliers including European companies like NXP, Infineon, and Freescale. These suppliers essentially controlled over 90% of the global LDMOS RF power amplifier market. However, toward the latter stages of the 4G era, Huawei took the lead by integrating GaN RF power amplifiers into mass-produced 4G LTE base stations—primarily supplied by Japan’s SEDI. Today, in the 5G era, the supply of GaN RF power amplifier products is dominated by companies such as SEDI, Wolfspeed, and Qorvo, collectively holding more than half of the market share. As a result, mobile communication base station RF power amplifier devices have long relied heavily on imports, making domestic production an urgent priority. Looking ahead, GaN also holds tremendous potential for application in the RF front-end of smartphones.

As a key core material driving independent innovation and transformation upgrades in next-generation mobile communications, new-energy vehicles, high-speed rail systems, and the energy internet industry, third-generation semiconductor materials also hold significant investment opportunities.

Chen Zhuo, Partner at Amiba Capital, stated that one of Amiba's key investment directions is next-generation information technology, including the third-generation semiconductor industry. Globally, there’s a growing consensus in the optoelectronics and display sectors: Micro LED is widely recognized as the display technology of the future, offering the ultimate solution for visual experiences—and it also represents a promising application area for gallium nitride, with vast market potential. By 2026, the global market for Micro LED displays is projected to reach nearly $30 billion. The primary target markets for Micro LED displays include small-area applications such as augmented reality (AR) and head-mounted displays (HMD), as well as larger-scale products ranging from TVs to smartwatches—making them essential infrastructure for the metaverse era. Currently, however, the full-colorization process for Micro LEDs remains highly complex and challenging due to the integration of multiple material systems, resulting in high production costs and limiting widespread adoption of the technology. To address these challenges, Amiba Capital has invested in Porotech, a company pioneering innovative porous GaN semiconductor material technology. This breakthrough approach leverages a single material system, eliminating the complexities associated with manufacturing devices that rely on disparate material structures. As a result, it paves the way for mass production of Micro LED displays, unlocking significant commercial opportunities and positioning this technology as a game-changer for the future of visual innovation.

Yuan Bo, a partner at Zhongke Chuangxing, believes that from a market perspective, third-generation semiconductors represent the key technology underpinning intelligent, green, and sustainable development in the face of energy and environmental challenges. These semiconductors will become a vital force driving the transformation and upgrading of manufacturing industries, with vast application potential across fields such as semiconductor lighting, next-generation mobile communications, energy internet, high-speed rail transportation, new-energy vehicles, and consumer electronics. Ultimately, they will play a critical role in boosting energy efficiency, reducing emissions, facilitating industrial restructuring and upgrades, and fostering new growth engines for the economy. When investing in third-generation semiconductors, it’s essential to focus not only on a company’s core technological foundation but also on its long-term growth potential. The success of semiconductor enterprises hinges on their ability to accumulate cutting-edge technologies—particularly the sustained development of proprietary, independently created innovations over time. At the same time, companies must remain acutely aware of market dynamics, as survival itself is the foundation for any business. Only by aligning with market demands can enterprises ensure consistent profitability and sustainable growth.

"Kunpeng Hui" This is a high-end industry event crafted by Yuanhe Chencun, designed to build a flagship fund ecosystem that connects LPs, GPs, innovative enterprises, and industry stakeholders. Each session focuses on trending industry sectors and growth tracks, bringing together renowned fund investors, corporate executives, and leading industry experts. The event continuously fosters an open knowledge platform for the flagship fund ecosystem itself, a robust networking hub bridging capital providers and industry players, and a dynamic social space where entrepreneurs and investors can connect and collaborate in the venture capital landscape.