DECEMBERASIA BUSINESS OUTLOOK9NEWSROOMONSEMI & GLOBALFOUNDRIES TEAM UP ON 650V GAN POWER CHIPSHong Kong's Insurance Authority (IA) is preparing a new regulatory framework that could significantly reshape how insurers allocate capital to cryptocurrencies and infrastructure investments.According to a presentation seen by Bloomberg, the regulator plans to impose a 100 percent risk charge on cryptocurrency assets held by insurers.This means insurers would need to set aside capital equal to the full value of their crypto holdings under the Prescribed Capital Amount (PCA), making cryptocurrencies one of the most capital-intensive asset classes on insurers' balance sheets. In contrast, stablecoin investments would receive more favourable treatment. Risk charges for stablecoins would be linked to the underlying fiat currency they are pegged to, potentially making them more capital-efficient than volatile crypto assets.Key Highlights· Hong Kong insurers may face a 100 percent capital charge on cryptocurrency holdings· Stablecoins get lighter treatment, tied to underlying fiat currencies· New rules incentivise insurance capital for Hong Kong and China infrastructureThis could encourage insurers to favour HKMA-licensed stablecoins, especially as regulatory clarity improves.A public consultation is scheduled from February to April 2026, after which legislative steps will follow. Beyond digital assets, the proposals also aim to channel insurance capital into infrastructure projects in Hong Kong and mainland China. Capital incentives would apply to qualifying infrastructure investments, supporting strategic initiatives such as Hong Kong's Northern Metropolis development. Some insurers are reportedly lobbying for broader definitions to include more infrastructure project types.As of June 2024, Hong Kong had 158 authorised insurers, generating HK$635 billion (US$82 billion) in gross premiums. The proposals sit within Hong Kong's Risk-Based Capital (RBC) regime, which targets a 99.5 percent one-year solvency level and tightly regulates how Tier 1 and Tier 2 capital can be used.The move aligns with broader regulatory developments, including recent SFC circulars expanding virtual asset trading platform (VATP) activities, staking permissions, and shared liquidity arrangements--signalling Hong Kong's intent to balance innovation with prudential safeguards. Onsemi has announced a strategic partnership with GlobalFoundries (GF) to co-develop 650V gallium nitride (GaN) power products using a 200 mm enhancement-mode (e-mode) GaN-on-silicon process.The collaboration combines Onsemi's expertise in power and sensing technologies with GF's semiconductor manufacturing capabilities, aiming to accelerate Onsemi's roadmap for high-performance GaN devices and integrated power stages.The companies said the new products will integrate GaN power devices with silicon-based drivers and controllers, targeting high-growth sectors such as AI data centers, electric vehicles (EVs), aerospace, industrial motor drives, and automotive onboard chargers. Sample shipments to customers are planned for the first half of 2026.Key Highlights· Onsemi and GlobalFoundries partner to develop 650V GaN power devices on 200 mm wafers· First customer samples are targeted for H1 2026 amid rising EV and AI demand· Reliability data and yield disclosures remain limited compared with competitorsHowever, neither Onsemi nor GF has disclosed reliability data, yield metrics, thermal cycling results, or gate reliability specifications for GF's 200 mm e-mode GaN platform. This places the partnership behind some competitors in transparency. For comparison, ROHM began mass production of 650V GaN devices in April 2023 and is advancing automotive-grade products via OSAT partnerships.Industry analysts note that pairing GaN HEMTs with silicon drivers requires advanced thermal design and low-inductance packaging. OSAT specialists already offer solutions such as TOLL, DFN, and QFN packages, along with laser grooving and advanced metallization. The rise of co-packaged GaN modules is also increasing demand for silver sinter pastes and high-conductivity die-attach materials.While adoption of 650V GaN is expected to accelerate in 2026, especially in EV and industrial applications, Onsemi's success will depend on execution speed and how quickly its platform can match rivals already shipping volume products. HONG KONG PLANS 100% CAPITAL CHARGE ON INSURERS' CRYPTO
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