Power chip firm Belgan runs out of cash

Flemish semiconductor firm Belgan has filed for bankruptcy. Carved from Onsemi in 2022, Belgan aimed to turn the Oudenaarde manufacturing site into a foundry for gallium nitride (GaN) chips, which, alongside silicon carbide (SiC), are expected to challenge the dominance of silicon in the growing power electronics market. During the transition process, however, Belgan ran out of cash. “To fund the significant investments associated with the transition process, additional investments were sought after the initial investment by the shareholders,” a press release reads.

Compared to silicon, wide-bandgap semiconductors like GaN enable higher energy efficiency, higher switching frequency and higher power density as well as smaller component footprints. The higher cost for such semiconductors is partially offset by lower system-level cost, but in many cases simply worth the premium. More efficient power electronics can significantly extend the range of an electric car, for example.

Belgan employs a staff of 440 people, part of which had already been working part-time since March to lower cost. Management said it’s willing to work with potential investors to make a restart happen.