🔴 TSMC to Exit GaN Foundry Business by 2027, Navitas Seeks New Partner

SemiVision: According to a recent SEC filing by power semiconductor company Navitas Semiconductor, TSMC plans to wind down its gallium nitride (GaN) wafer foundry services by July 31, 2027. Navitas is reportedly exploring capacity support from PSMC (Powerchip Semiconductor Manufacturing).

In response, #TSMC confirmed that, after a thorough evaluation, it has decided to gradually exit the #GaN business over the next two years. The decision aligns with TSMC’s long-term market and business strategy.

TSMC emphasized that it is working closely with customers to ensure a smooth transition and will continue to fulfill their needs during the interim. The company also stated that this move will not impact its previously announced financial targets and remains committed to creating value for its partners and the broader market.

Industry observers note that TSMC’s strategic exit reflects intense pricing pressure from Chinese competitors in the compound semiconductor space. Despite customer demand, TSMC chose not to engage in price wars, especially given the relatively small scale and limited profitability of GaN production.