July 4, 2025 /SemiMedia/ — Navitas Semiconductor has announced that its 650V GaN power components will transition from Taiwan Semiconductor Manufacturing Company (TSMC) to Powerchip Semiconductor Manufacturing Corporation (PSMC) over the next one to two years, marking a shift amid broader changes in the GaN foundry ecosystem.

Gallium nitride (GaN) devices have become essential in high-efficiency power conversion, fast charging, server power supplies, and emerging energy applications. As demand rises, foundry alignment has become increasingly important for maintaining supply chain resilience and long-term growth.

TSMC recently confirmed it will gradually exit the GaN foundry business within two years as part of a strategic shift. Industry sources report that the company plans to repurpose its Fab 5 facility into an advanced packaging site by July 1, 2027. Existing cleanroom infrastructure at the site is expected to accelerate the transition.

TSMC stated it is working closely with customers to ensure a smooth production handover and reaffirmed its commitment to fulfilling existing client needs. The company emphasized that its exit from the GaN sector will not impact its financial outlook, maintaining a revenue growth target of 24% to 26% in U.S. dollars for the year.

In recent years, TSMC has built a dominant position in AI chip manufacturing by combining advanced process nodes with sophisticated packaging. As demand for next-generation packaging—such as wafer-on-wafer (WoW) and wafer-level CoWoS (WMCM)—continues to rise, driven by AI expansion from cloud to edge, the company is investing heavily in CoWoS capacity, including facility upgrades and fab conversions.

TSMC’s exit from the GaN market underscores a broader industry realignment as leading foundries double down on high-performance computing and AI-related opportunities offering greater economies of scale.