Interview Series

UNLOCKING POTENTIAL: THE SIGNIFICANCE OF GALLIUM IN SEMICONDUCTOR INDUSTRY

Brooks Tech Policy Institute (BTPI) Fellow Basim Ali sat down with semiconductor expert Dr. Jon McCandless,(founder and CEO of Gallox Semiconductors), to discuss the importance of Gallium in the semiconductor industry.

Basim: Why is Gallium so important for the semiconductor industry, particularly in the context of the ongoing trade war between US and China?

Jon: Gallium is an element which, when combined with oxygen or nitrogen, forms important semiconductors. Gallium Nitride is one of the materials that enables ‘White LEDs’ and laser diodes. It is also used in electronics, communication applications and radar systems. In the field of power electronics Gallium Oxide is poised to revolutionize various sectors like the electric grid and automotive charging as it enables the creation of fast chargers and more efficient power supplies which in turn reduces energy loss and eventually reduces the carbon footprint [of those sectors]. Roughly 98% of Gallium in the world is mined in China and in July 2023, China introduced export controls. This raised concerns globally regarding Gallium sourcing, especially in the United States. Adding to this, we have seen a significant price volatility which has increased vulnerability to supply disruptions.

Basim: In your opinion what are some of the issues or challenges in the Gallium supply chain and how can they be potentially addressed?

Jon: Let me clarify first, the potential supply chain issues that we hear about are in the context of Gallium Nitride, whereas, with respect to Gallium Oxide, the supply chain is still at a nascent stage. Gallium Oxide is an emerging material which shows a lot of promise for high power, so both US and China are investing in it. Apart from the geopolitical issues which are frequently talked about, I will focus on the technical challenges related to Gallium Oxide.

One of the major issues is that the crucibles which are used to make a wafer of Gallium Oxide by melting high-purity Gallium Oxide powder, are made up of Iridium and they must be frequently replaced. The reason Iridium is used is because it does not react with Gallium Oxide and can withstand the high temperatures. The challenge is that the price of Iridium crucibles has increased substantially, and it has affected the nascent supply chain. The second challenge is related to transistor and diode fabrication, as many foundries are in Asia, especially Taiwan. In order to fabricate within the US, there are many issues like finding pure play foundries that focus on low volume outputs and finding the workforce, as we are still trying to establish the supply chains. The final challenge, in my view, is the availability of funding for small startups, as substantial financial resources are often allocated to larger companies, leaving limited support for startups.

Basim: Regarding your comment about small companies, what measures do you believe could be implemented to ensure that small businesses remain competitive?

Jon: The semiconductor industry is characterized by high costs. For instance, Silicon Valley was initially named for the silicon used in early chip production but has since shifted its focus to software. Today, launching a software application often requires only a small team and limited capital. In contrast, the semiconductor sector necessitates substantial investment to bring a product to market, inherently involving considerable risk from an investor’s perspective. Consequently, significant government support is essential to mitigate this risk. The Chips Act has been instrumental in this regard; however, a notable challenge is that the grants geared at academic institutions are relatively modest, while substantial funding tends to favor large corporations like Intel, etc. Therefore, it would be beneficial to implement a more balanced support system, which could serve as a model for other countries seeking to provide government assistance for risk mitigation in the semiconductor industry.
Thank you so much Jon for sharing your thoughts.
Looking ahead it is clear that securing the semiconductor supply chain is a critical priority. On that front, the Brooks Tech Policy Institute received $3 million in funding from the US Department of Defense to establish the US Semiconductor Research Hub, which will work to improve resilience in this area. The funding will support research and development aimed at strengthening the domestic semiconductor ecosystem, mitigating vulnerabilities, and ensuring a more stable supply of these vital components for both commercial and defense applications.