Japanese company Sumitomo Electric Industries, better known as a cable manufacturer but also producing materials and components used in the electronics industry, will begin manufacturing semiconductor products for 5G base stations in the United States in September. The decision comes amid growing concerns about supply chain disruptions associated with a global shortage of semiconductor products.
These are high-power high-frequency gallium nitride transistors. Sumitomo Electric holds 70% of the global market for these products. In particular, it is the main supplier of Huawei Technologies. Having mastered the production of such transistors in the United States, the company plans to double its manufacturing capabilities.
Production is set up at a plant in New Jersey operated by contract manufacturer II-VI. The corresponding investments are estimated at several tens of millions of millions.
Gallium nitride transistors are more expensive than more common silicon transistors, but they have better performance.
The transistors, manufactured by Sumitomo Electric in the US, will be supplied to US and European communications equipment manufacturers including Ericsson and Nokia. Since it is believed that 90% of Sumitomo Electric’s current supply is destined for Chinese manufacturers, the company aims to increase sales to customers in the US and Europe. US manufacturing is also in line with Washington’s policy of strengthening the domestic semiconductor industry.
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