The compound semiconductor market is set to hit $25 billion by 2030. This industry is fueled by rapid growth in automotive, telecom, and mobile sectors.
Ecosystem: as of 2025, most of the leading power electronic device players have WBG (1) activities…
At the device level, companies are focused on the compound semiconductor materials’ added value: faster data rate, higher efficiency, higher power output, and cost competitiveness…
The compound semiconductor device industry is expected to grow to approximately $25 billion by 2030. This industry remains a small part of the overall $1 trillion semiconductor device market. Behind these numbers lies a different reality. Compound semiconductors are enablers, driven by strong market dynamics.
Ezgi Dogmus, PhDActivity Manager, Compound Semiconductors at Yole Group
The compound semiconductor device industry is on a rapid growth trajectory between 2024 and 2030, surging at an impressive CAGR (2) of nearly 13%—outpacing the broader semiconductor market. This acceleration is fueled by the booming automotive and mobility sectors, with strong momentum also coming from telecom, infrastructure, and consumer electronics.
The new market & technology report, Status of the Compound Semiconductor Device Industry from Yole Group, provides an in-depth review of key applications in power electronics, RF, photonics, and displays, with market forecasts extending through 2030. This 2025 study explores in depth the game-changing developments that have shaped the industry in recent years, highlighting the primary drivers fueling compound semiconductor growth. It examines device and bare die market values, shipments, and technology adoption across applications while assessing competition with mature silicon technologies. Yole Group’s report also delves into industry trends, manufacturing challenges, and emerging technology advancements, offering insights into the evolving compound semiconductors, key market players, and strategic synergies across the supply chain.
In this dynamic context, major semiconductor players are increasingly interested in compound technologies. Over the past decade, a rapid push for power SiC (3) adoption saw Wolfspeed divest its RF and LED businesses to concentrate on SiC. In parallel, STMicroelectronics, onsemi, and Infineon Technologies expanded their SiC investments, adopting vertically integrated business models to reduce wafer supply dependencies amid geopolitical tensions.
Related article:Â Power electronics: growth, challenges, and the road ahead for SiC technology.
After SiC adoption, is GaN (4) the next big breakthrough?
Following the SiC boom (5), OEMs (6) are showing stronger interest in GaN for power electronics applications. This interest has led to a change in the landscape. The power GaN market is projected to grow beyond US$2 billion by 2029, with a strong 5-year CAGR, according to Yole Group’s analysts (7). See the major trends below:
As of 2025, Innoscience, Power Integrations, and Navitas lead the Power GaN market. In parallel, leading semiconductor companies Infineon Technologies and Renesas grew inorganically by acquiring GaN Systems and Transphorm, respectively.
Poshun ChiuSenior Technology & Market Analyst, Compound Semiconductors at Yole Group
It has also created synergies with GaN for RF applications. Companies like Infineon Technologies and GlobalFoundries, having invested in power GaN-on-Si, are exploring synergies to leverage existing equipment, such as epitaxy, for RF production.
RF applications : a unique perspective?
RF GaAs (7) was the first compound semiconductor to achieve success in consumer applications, with a well-established ecosystem by 2025. Skyworks leads the market, followed by Qorvo and Murata, securing design wins in consumer end systems. However, geopolitical restrictions are driving Chinese OEMs to develop a local ecosystem.
Aymen GhorbelTechnology & Market Analyst, Compound Semiconductors at Yole Group
RF GaN was initially adopted in defense applications like radar, but over the past decade, it has expanded into telecom infrastructure, meeting 5G base station requirements. Interest in satellite communications and other use cases has also grown.
The AI (9) boom: driving datacom growth and powering compound semiconductors
Semiconductor lasers drive the photonics compound semiconductor industry with an expected $5 billion market by 2029. These technologies are indeed widely used in communication, sensing, and various other applications. With the rise of AI, the datacom sector has experienced significant growth, driving strong demand for silicon photonics.
At Yole Group, analysts have identified a growing number of collaborations between the InP (11) photonics and silicon industries. Major semiconductor giants like TSMC are entering the photonics business. And step by step, more players, such as GlobalFoundries and Samsung, may follow in the future.
MicroLED display, a fragmented landscape
The microLED display industry is highly fragmented, with no single entity overseeing manufacturing from start to finish. Unlike traditional vertically integrated display production, microLED manufacturing requires distinct expertise.
Major display makers like BOE and AUO are securing control over LED suppliers, while startups and equipment makers contribute to major technologies. Geographic alliances, particularly in China and Taiwan, are shaping industry dynamics. Apple’s withdrawal has slowed funding, leaving most startups struggling and undermining confidence in microLED’s prospects.
Yole Group stands at the forefront of market research and strategic consulting in the compound semiconductor industry. Their in-depth analyses offer invaluable insights into market trends, emerging technologies, and competitive landscapes. With an extensive collection of reports, market monitors, and reverse engineering analyses, Yole Group provides a comprehensive view of the industry—explore all their offerings HERE.
With expertise spanning materials, device manufacturing, and equipment, Yole Group covers key applications such as power electronics, RF electronics, displays, and photonics. As a trusted industry partner, they continue to drive knowledge and innovation in the field.
