KEY ASIC TO ACQUIRE SILICON CARBIDE FOUNDRY IN US

KUALA LUMPUR, Nov 30  -- IoT chip and system specialist Key ASIC Bhd is set to acquire 100 per cent stake of a United States foundry with silicon carbide (SiC) and developing gallium nitrite (GaN) technologies.

In a statement, Key ASIC said it has performed the preliminary analysis and due diligence leading to the signing of the letter of intent (LOI) and will be conducting the necessary due diligence before the signing of the definitive agreement.

“The strategic move to acquire the compound semiconductor technology fab is timely for the company to expand into the fast-growing electronic vehicles and fast charging market,” chairman and chief executive officer Eg Kah Yee said.

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“We intend to build additional capacity by expanding the existing facilities at the fab and also new facilities in Asia to serve Asia’s fast-growing market in electronic vehicles,” he added.

The fab is currently making chips for the automotive module manufacturers, car makers and power grid equipment producers in the US.

The fab is expected to play a significant role in the trillion-dollar infrastructure bill that has been passed in the US Congress recently. The LOI is expected to lead to the signing of the definitive agreement as the next step in this corporate exercise.

Silicon Carbide or SiC technologies are used largely in power devices that are needed in electronic vehicles, charging stations, power grid, renewable energy, data centres and other applications.

“Not only that the foundry has leading edge technologies in silicon carbide, the foundry has also been developing gallium nitrite (GaN) technologies. Built-in GaN technology wall chargers are generally more reliable and lightweight than traditional devices,” it said.

The SiC market size is forecast to be worth US$7.1 billion by 2027 at a compound annual growth rate (CAGR) of 16 per cent, according to a report by Market Research Future.

Today, a conventional car would use about 300 chips and an electronic car would require as many as 3,000 chips including many power devices.

-- BERNAMA