NXP’s shift away from 5G RF power

December 12, 2025 /SemiMedia/ — NXP Semiconductors confirmed it will close its ECHO wafer fab in Chandler, Arizona, a facility that began operations in 2020 to support the company’s GaN-based power amplifier roadmap for 5G base stations. The plant had been positioned as one of NXP’s most advanced lines for telecom power devices.

The fab’s main output centers on GaN power amplifiers used in 5G macro base stations, a segment that has deteriorated as global operators scale back network investments. With deployment levels lagging earlier expectations and operators struggling to generate returns from 5G, demand for RF power devices has weakened across the industry.

NXP said the RF power business no longer aligns with its long-term strategy, and shutting down the ECHO fab has become a key step in its product portfolio streamlining. The company expects to complete the final GaN wafer runs in the first quarter of 2027 and will maintain supply commitments during the transition period. Other semiconductor manufacturing operations at the Chandler site remain unaffected.

Industry signals had pointed to NXP’s gradual withdrawal from the RF power segment. While the company was a significant supplier during the 4G cycle, the shift to 5G—with wider use of high-frequency bands, rapid GaN adoption and large-scale MIMO architecture—intensified competition, eroding NXP’s position in the market.

Financial pressure behind the exit

Financial performance reflects the trend. Revenue from NXP’s “Communications Infrastructure and Other” segment fell nearly 20% in 2024 to under USD 1.7 billion, and dropped another quarter to USD 962 million in the first nine months of 2025. The company noted in SEC filings that declining RF power product shipments contributed to the downturn.