Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday in a statement said that it would phase out its compound semiconductor gallium nitride (GaN) business over the next two years, citing market dynamics.
The decision would not affect its financial targets announced previously, the world’s biggest contract chipmaker said.
“We are working closely with our customers to ensure a smooth transition and remain committed to meeting their needs during this period,” it said. “Our focus continues to be on delivering sustained value to our partners and the market.”
Photo: Bloomberg
TSMC’s latest move came unexpectedly, as the chipmaker had said in its annual report that it has developed second-generation 650 volt and 100 volt GaN chips, with production expected to commence this year, while it is developing an 8-inch 650 volt enhanced high-electron-mobility transistor scheduled for production next year.
GaN-based chips are emerging as an alternative to silicon-based chips in applications demanding high power efficiency, faster switch speeds and smaller form factors. The chips are used in the automotive industry, data centers and optoelectronics.
Powerchip Semiconductor Manufacturing Co (力積電) is to succeed TSMC as a supplier of high-voltage GaN chips to Navitas Semiconductor Inc, Navitas said in a statement on Tuesday.
Powerchip has reached an agreement with Navitas to produce GaN chips at its 200mm plant in Miaoli County’s Jhunan Science Park (竹南科學園區).
Powerchip is to manufacture Navitas’ GaN portfolio with ratings from 100 volts to 650 volts, supporting growing demand from hyperscale artificial intelligence data centers and electric vehicles, Navitas said.
Qualification of initial devices is expected in the fourth quarter this year and the 100 volt family is expected to start production at Powerchip in the first half of next year, while 650 volt devices would transition from TSMC to Powerchip over the next 12 to 24 months, Navitas said.
Powerchip’s fab has been operational since 2019 and supports high-volume manufacturing processes for GaN, ranging from micro-LEDs to radio frequency GaN devices, the company added.
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