TSMC to phase out its gallium nitride business

 

The world's largest contract chipmaker said the decision would not affect its previously announced financial targets.

 

"We are working closely with our customers to ensure a smooth transition and remain committed to meeting their needs during this period," it said. "Our focus remains on delivering continued value to our partners and the market."

 

TSMC's latest move was unexpected, as the chipmaker said in its annual report that it has developed second-generation 650-volt and 100-volt GaN chips, which are expected to start production this year, while it is developing 8-inch 650-volt enhancement-mode high-electron-mobility transistors, which are planned for production next year.

 

GaN-based chips are emerging as an alternative to silicon-based chips for applications that require high power efficiency, faster switching speeds and smaller form factors. These chips are used in the automotive industry, data centers and optoelectronics.

 

Powerchip Semiconductor Manufacturing Co. will replace TSMC as Navitas Semiconductor Inc.'s supplier of high-voltage gallium nitride chips, the company said in a statement on Tuesday.

 

Powerchip has reached an agreement with Navitas to produce GaN chips at its 200mm plant in Hunan Science Park in Miaoli County.

 

Navitas said Powerchip will manufacture Navitas' GaN product portfolio with voltage ratings ranging from 100 volts to 650 volts to support the growing demand of hyperscale artificial intelligence data centers and electric vehicles.

 

Navitas said it expects to qualify initial devices in the fourth quarter of this year, with the 100-volt series expected to start production at Powerchip in the first half of next year, while the 650-volt devices will transition from TSMC to Powerchip over the next 12 to 24 months.

 

Powerchip’s fab has been operational since 2019 and supports high-volume manufacturing processes from micro-LED to RF GaN devices, the company added.