Navitas Semiconductor disclosed in a July 1 SEC filing that Taiwan Semiconductor Manufacturing Company (TSMC), its sole supplier of gallium nitride (GaN) wafers, will cease GaN production in July 2027. In response, Navitas is accelerating efforts to diversify its GaN wafer supply chain.

The company has formed a strategic partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC), officially launching production of 8-inch GaN-on-Silicon devices. Initial qualification of 100 V products is expected by Q4 2025, with mass production starting in the first half of 2026. Navitas is also evaluating additional suppliers to further mitigate single-source risks and enhance operational flexibility.

TSMC has long played a pivotal role in the global GaN ecosystem, providing advanced 6-inch GaN-on-Si capacity and partnering with many leading GaN power device companies:

 ● GaN Systems: In 2015, TSMC helped boost the yield of GaN Systems' E-mode HEMTs using its proprietary Island Technology.

 ● Navitas: In 2017, Navitas announced TSMC and Amkor as its primary manufacturing partners, with TSMC providing the industry's largest and most advanced GaN-on-Si wafer capacity.

 ● STMicroelectronics: In 2020, ST collaborated with TSMC to accelerate GaN technology development and production of both discrete and integrated GaN devices.

 ● Cambridge GaN Devices (CGD): In 2023, CGD revealed that its ICeGaN platform was in volume production using TSMC's GaN process.

 ● Wise-integration: In 2024, the French firm stated its 650V E-mode GaN transistors used TSMC's 650V GaN-on-Si process.

 ● ROHM Semiconductor: In December 2024, ROHM entered a strategic partnership with TSMC to jointly develop and manufacture GaN power devices for EV applications.

In addition to forging partnerships, TSMC had also expanded its GaN production capabilities. According to Taiwanese media, by 2021 the company had installed 6 GaN tools and purchased 16 additional pieces of GaN-related equipment, more than doubling its capacity to over 10,000 wafers per month.

Given TSMC's long-standing investment and client base in the GaN sector, its decision to end GaN production marks a major industry shift. TSMC has not issued an official statement explaining the move.

The withdrawal will likely force many GaN power device firms to seek alternative foundry partners. In China, several domestic manufacturers have already achieved stable GaN chip production. Innoscience, the world's largest GaN chipmaker, has successfully industrialized 8-inch GaN-on-Si production. Zhaochi Semiconductor has scaled up 4-inch GaN Mini LED chip capacity through digital upgrades.

These Chinese players may be well-positioned to absorb demand previously met by TSMC, potentially reshaping the global GaN power device market. As the industry adjusts, the question remains: will legacy giants rebound, or will emerging players rise to redefine the competitive landscape?