The exit of TSMC has triggered a series of events that are actively reshaping and strengthening the power gallium nitride (GaN) market landscape in many ways. It accelerates the ongoing structural transformation, drives the entire ecosystem towards new business models and partnerships, and enhances regional diversification.
The most significant change is evident: power gallium nitride is becoming a market driven by IDM.
Infineon is gradually phasing out GaN system products (manufactured by TSMC) and transferring production to an internal factory located in Austria (EU).
ROHM is obtaining authorization for TSMC's gallium nitride technology to establish its own internal manufacturing capabilities in Japan.
Other industrial enterprises are also adopting this strategy. For example, companies such as Innoscience (China) are expanding their own production capacity while establishing partnerships with companies such as ON Semiconductor and STMicroelectronics. Meanwhile, Texas Instruments and Renesas Electronics are utilizing their 8-inch wafer fabs in Japan to support the research and production of gallium nitride.
However, this has not slowed down the development speed of wafer foundries; On the contrary, it has accelerated investment in gallium nitride, with new entrants constantly emerging and geographical distribution changing.
Navitas is shifting towards PSMC (Taiwan) and is also collaborating with GlobalFoundries (USA). GlobalFoundries is partnering with Onsemi to position itself as an important alternative solution for the US market, utilizing TSMC authorized GaN technology. VIS (Vanguard) has obtained a technology license from TSMC, and its partners include EPC, Renesas Electronics, Qromis, and Shinetsu Technologies.
The OEM also provides a second supplier for Integrated Device Manufacturers (IDMs), enhancing the security of the supply chain and giving system manufacturers more peace of mind. They also contribute to innovation, enabling integrated device manufacturers to quickly produce new product prototypes and validate them before transitioning to large-scale internal production.
The addition of new entrants further strengthens this trend:
Samsung (South Korea) is launching an 8-inch GaN production line using vertical integration, including in-house wafers. DB HiTek (South Korea) and SK Keyfoundry (South Korea) are also actively expanding their market presence.
This is a rebalancing of geographical activities, as ecosystems are gradually shifting from a model centered around Taiwan to regional diversification.
All of this is happening against the backdrop of accelerated adoption of gallium nitride technology in artificial intelligence data centers and the automotive industry, with growth rates of approximately 50% and 70% respectively, driving the market to reach around $3 billion by 2030.
In short, TSMC's exit is not a subversion, but an acceleration of the development of existing trends:
IDM (Integrated Design Manufacturer) is regaining control of the manufacturing process. The foundry is diversifying its operations and reallocating demand. Production is becoming increasingly geographically balanced.
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