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SweGaN AB, a European semiconductor manufacturer that develops and produces custom engineered Gallium Nitride on Silicon Carbide (GaN-on-SiC) epitaxial wafers, reported orders for its benchmark QuanFINE® epiwafers worth 17 MSEK in the first half of 2024, including three large frame agreements from undisclosed major Telecom and Defense market players. The company reported a 100% YoY order increase and began deliveries from its new facility in Linköping, Sweden, marking significant progress in its scale-up journey.
In additional notable news, the semiconductor manufacturer announces a newly completed QuanFINE epiwafer customer qualification with a device manufacturer.
In the last two years, SweGaN has displayed an exciting operational transformation in alignment with its growth strategy and global demands for GaN-on-SiC epiwafers. Securing a Series A investment round, the company has scaled its organization, established a streamlined team, and deployed a new high-capacity production facility to drive its growth strategy and future KPIs.
– “Today we celebrate three significant milestones that signal SweGaN’s transition from a pure R&D company to a rigorous global semiconductor manufacturer.” says Dr. Jr-Tai Chen, CEO at SweGaN.
– “Currently, there is a strong momentum in the Telecom industry to upgrade technology from 5G to 5G Advanced, continues Chen. SweGaN’s patented QuanFINE® buffer-free GaN-on-SiC material is well-suited to meet the demanding technical requirements of the new technology, particularly in terms of device efficiency and thermal management. This applies to the new Telecom standard 5G Advanced, as well as the strong demands for enhanced sensing capability in Defense applications. The new framework orders will accelerate product development and production ramp-up enabling SweGaN to tap the market opportunities in both the Telecom and Defense sectors.”
With SweGaN’s new production facility in full swing, the company has the tools to fully embrace its ambitious scale-up strategy and significantly boost manufacturing capacity of next-generation GaN-on-SiC engineered epitaxial wafers. Simultaneously, the company aims to continue to innovate through new R&D initiatives and deepen partnerships with suppliers and customers to establish resilient supply chains.
– “I take immense pride in our synergistic team, in both successfully qualifying SweGaN’s first epiwafer product with a device manufacturer and executing on the significant undertaking of bringing the the new high-capacity wafer production facility into operation, from planning to deployment,” continues Chen.
Original – SweGaN
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CVD Equipment Corporation announced its financial results for the second quarter ended June 30, 2024.
Manny Lakios, President and CEO of CVD Equipment Corporation, commented, “Second quarter 2024 revenue was $6.3 million, a 25.2% increase from the prior year period. We are pleased to have recently shipped a PVT 200 system which was part of the first quarter strategic order for SiC 200mm crystal boule growth. The performance of the system will be evaluated for production by our now second account. We are encouraged that our backlog at June 30, 2024 is meaningfully higher than our year-end backlog.”
“Overall, we are disappointed with CVD’s operating performance in the first half of the year, as order and revenue levels continue to fluctuate given the nature of the emerging growth end markets we serve. We’ll stay the course on strategic efforts to build critical customer relationships, achieve profitability, carefully manage our costs and cash flow while simultaneously focusing on growth and return on investment.”
Second Quarter 2024 Financial Performance
- Revenue of $6.3 million, an increase of 25.2% year over year primarily due to higher system revenues and an increase in SDC revenues
- Backlog as of June 30, 2024 of $24.0 million, a decrease from $27.1 million at March 31, 2024
- Our gross profit margin percentage declined to 25.4% as compared to the prior year quarter due to a less profitable mix of contracts
- Operating loss of $0.9 million
- Net loss of $0.8 million or $0.11 per basic and diluted share, compared to a net loss of $1.1 million or $0.16 per basic and diluted share during the prior year second quarter
- Operating loss and net loss for the prior year second quarter both included non-recurring charges of $0.3 million consisting of a loss on the sale of our Tantaline subsidiary of $0.2 million and an impairment charge of $0.1 million resulting from our decision to wind down our MesoScribe business
- Cash and cash equivalents as of June 30, 2024 of $10.0 million
Second Quarter 2024 Operational Performance
- Orders for the first quarter were $3.2 million primarily driven by demand in our SDC segment for gas delivery equipment. Orders for the first six months of 2024 were $16.9 million as compared to $15.8 million for the first six months of 2023.
- We continue to make investments in both research and development and sales and marketing focused on our three key strategic markets.
Original – CVD Equipment
