News: Microelectronics
3 July 2025
TSMC to cease GaN foundry production by end-July 2027 due to price pressure from Chinese rivals
When gallium nitride (GaN) power IC and silicon carbide (SiC) technology firm Navitas Semiconductor Corp of Torrance, CA, USA announced a strategic partnership for Taiwanese foundry Powerchip Semiconductor Manufacturing Corp (PSMC) to start production of 100V GaN products on 200mm silicon wafers in first-half 2026, this includes Navitas’ 650V devices transitioning from its existiing sole GaN-on-Si wafer foundry supplier Taiwan Semiconductor Manufacturing Company Ltd (TSMC) to Powerchip over the next 12–24 months.
According to a Form 8-K filing by Navitas to the US Securities and Exchhange Commission (SEC), this follows being informed by TSMC that it will end GaN wafer foundry production by end-July 2027.
Navitas adds that it is engaged in identifying and qualifying additional potential suppliers in order to diversify its supply chain and enhance operational flexibility.
According to Taiwan-based market analyst firm TrendForce, TSMC is focusing on advanced-node silicon development for booming AI applications, and pulling back from legacy businesses.
Specifically, TSMC is repurposing its Hsinchu Fab 5 (which is used for GaN) for advanced packaging. By reusing existing cleanroom facilities, TSMC reckons that it can accelerate expansion with minimal effort, as demand surges for chip-on-wafer-on-substrate (CoWoS), wafer-on-wafer (WoW), and wafer-level system integration (WLSI) technologies.
Taiwanese financial newspaper Commercial Times highlights rising price pressure from Chinese rivals as a key driver behind TSMC opting for a strategic exit from GaN, given the limited scale and low profitability of GaN production.
According to financial services firm Anue, TSMC’s 6-inch monthly output for GaN is 3000–4000 wafers, with Navitas comprising over half of that and Ancora Semi also among its main customers.
