Market analysts at TrendForce estimate that the global GaN power device market will grow rapidly over the rest of the decade, expanding from about $390 million in 2024 to $3.51 billion by 2030, driven by demand from artificial intelligence infrastructure and the transition to cleaner energy systems.

Against this backdrop, TSMC is reshaping its role in the GaN value chain. Rather than continuing in-house GaN manufacturing, the company is transferring its process know-how to partners through licensing agreements. The move is intended to support continued development of GaN technologies while allowing TSMC to concentrate resources on higher-volume and higher-margin businesses, particularly advanced AI chips.

Vanguard International Semiconductor (VIS) announced on 28 January that it had signed a technology licensing agreement with TSMC covering 650V high-voltage and 80V low-voltage GaN process technologies. Development work under the agreement is expected to begin in early 2026, with mass production targeted for the first half of 2028.

VIS plans to combine the licensed processes with its existing GaN-on-QST platform. The company said this approach will allow it to offer GaN manufacturing services on two different substrate platforms, covering a wide range of voltage classes from below 200V through 650V and up to 1,200V for ultra-high-voltage applications. These technologies are aimed at markets such as data centres, automotive electronics, industrial control and energy management. VIS also intends to validate the processes on its established 8-inch wafer platform to support stable yields.

TSMC confirmed in July 2025 that it would gradually exit GaN foundry services, with a full withdrawal scheduled for 31 July 2027. The decision reflects the relatively limited scale of the GaN foundry business compared with TSMC’s core logic manufacturing operations, as well as the company’s focus on meeting surging demand for AI processors.

TSMC’s exit does not mean it is abandoning GaN technology altogether. In addition to the agreement with VIS, GlobalFoundries signed a similar licensing deal with TSMC in November 2025, also covering 650V and 80V GaN processes. GlobalFoundries is expected to use the technology to expand its power semiconductor offerings for applications including data centres, industrial systems and automotive platforms.

GaN’s physical properties, including high electron mobility, high breakdown voltage and good thermal performance, are supporting its expansion beyond consumer fast-charging products into more demanding environments. While the market remains relatively small compared with silicon, industry observers see growing momentum as AI computing, electric vehicles and advanced robotics increase demand for efficient power conversion.

With major foundries repositioning their roles, the GaN sector appears set for a period of structural change, as licensed manufacturing and broader industry participation replace a more centralised model of development.

By: DocMemory
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