BelGaN, a major GaN wafer manufacturer in Europe, filed for bankruptcy protection on July 30, 2024, following unsuccessful efforts to secure additional funding. The company, based in Oudenaarde, Belgium, struggled with cash flow issues and failed to meet profitability targets, worsened by global supply chain disruptions and geopolitical tensions. This led to the closure of its plant and the loss of 400 jobs, marking a significant blow to the region's semiconductor industry.

In early January 2025, BelGaN's bankruptcy auction attracted multiple potential buyers, with Chinese companies emerging as key contenders. The auction raised over €23 million, with Chinese firms purchasing approximately €8.5 million worth of advanced manufacturing equipment. The auction, which featured 1,800 items including wafer processing machines and specialized equipment, marks a crucial turning point for the company and presents a unique opportunity for Chinese buyers to bolster their semiconductor capabilities.

BelGaN, which traces its origins to 1983 as MIETEC, has undergone several ownership changes. After being acquired by OnSemi in 2008, it was sold to a joint venture involving Rockley Management (HK) and Wuxi Group in 2022. Their goal was to transform the facility into a leading GaN foundry. The company had made strides in GaN technology, launching advanced eGaN and GaN-on-Si solutions. However, the lack of sufficient investment and cash flow led to its downfall despite these technical achievements.

As the auction unfolded, Belgian officials were assessing which equipment would require an export license for transfer to China, raising concerns over technology export control and intellectual property protections. Meanwhile, other potential buyers, including a Swedish-Finnish consortium and Guido Dumarey, a Belgian entrepreneur, expressed interest in acquiring BelGaN's assets.

The Swedish-Finnish group, through its subsidiary 7 Semiconductors Oy, placed an offer of approximately €130 million, hoping to use the acquisition to strengthen Sweden's position in the semiconductor market. Dumarey, who previously successfully acquired other industrial assets, also aimed to reclaim the plant and revitalize it for future production.

Despite its bankruptcy, BelGaN's assets remain valuable. The 440,000-square-meter facility is equipped with cleanroom space and can produce 19,000 6-inch GaN wafers per month, catering to automotive, industrial, and medical sectors. The factory had also been certified for automotive electronics, enhancing its appeal to buyers seeking to capitalize on the growing electric vehicle (EV) market. According to Yole Group, the GaN market in automotive applications is expected to reach $504 million by 2028, with a compound annual growth rate of 110%.

This bankruptcy and auction raise critical questions about the future of Europe's semiconductor industry and its ability to remain competitive. As Chinese companies continue to strengthen their position in semiconductor manufacturing, the event underscores the global shift toward China's increasing dominance in advanced technology sectors, while also highlighting the ongoing challenges faced by European and American manufacturers in the highly capital- and technology-intensive semiconductor industry.

In light of this, Chinese companies' entry into the European GaN sector could lead to further technological advancements but also raise concerns about technology transfer and intellectual property security, impacting the competitive landscape worldwide.