TSMC’s GaN exit: toward vertical integration and foundry diversification
TSMC’s exit has triggered a series of events that are actively reshaping and, in many ways, strengthening the power GaN landscape. It is accelerating structural shifts that were already underway, pushing the ecosystem toward new business models and partnerships and enhancing geographic diversification.
Today’s article is authored by Roy Dagher, PhD Technology & Market Analyst at Yole Group, specializing in compound semiconductors. Leveraging continuous interactions with key industry players and deep market monitoring, Roy provides timely insights into the evolving power GaN ecosystem.
This analysis builds on Yole Group’s Power SiC/GaN Compound Semiconductor Market Monitor, our quarterly service tracking market dynamics, technology developments, and competitive positioning. It also draws from our comprehensive portfolio of reports, including Power GaN 2025 (2026 edition coming soon), Power SiC 2025 (2026 edition coming soon), and more, offering detailed data and strategic perspectives across the power semiconductor landscape.
Enjoy reading this update on the power GaN landscape!
The most significant shift is clear: power GaN is becoming an IDM-driven market.
Infineon is phasing out GaN Systems products (manufactured at TSMC) and moving production in-house in Austria (EU).
ROHM is licensing TSMC’s GaN technology to build its own internal manufacturing capabilities in Japan.
Other industrial players are also adopting this strategy. Companies like Innoscience (CN) are scaling internal capabilities while partnering with onsemi and STMicroelectronics. At the same time, Texas Instruments and Renesas are leveraging their 8-inch fabs in Japan to support GaN development and production.
However, this has not slowed foundries; on the contrary, it has accelerated GaN investments, with new entrants emerging, and the geographic distribution changing.
Navitas is shifting to PSMC (TW) while also engaging with GlobalFoundries (US).
GlobalFoundries, leveraging licensed TSMC GaN technology, is positioning itself as a key alternative in the U.S., partnering with onsemi.
VIS (Vanguard) is licensing TSMC technology and has partners like EPC, Renesas,Qromis, and Shinetsu.
Foundries also function as a second source for IDMs, enhancing supply security and reassuring system makers. They also enable innovation, allowing IDMs to quickly prototype and validate new products before transitioning to high-volume internal manufacturing.
New entrants are reinforcing the trend:
Samsung (KR) is launching an 8-inch GaN line with a vertically integrated approach (including in-house wafers).
DB HiTek (KR) and SK Keyfoundry (KR) are also positioning themselves in the market.
This is rebalancing geographic activity as the ecosystem is gradually moving away from a Taiwan-centric model toward regional diversification.
All this is happening against the backdrop of accelerating GaN adoption in AI data centers and automotive, with strong growth rates of around 50 and 70%, respectively, propelling the market towards ~$3B by 2030.
In conclusion, TSMC’s exit is not a disruption but an accelerator of trends already in motion:
IDMs are reclaiming manufacturing control,
Foundries are diversifying and redistributing demand,
Production is becoming more geographically balanced.
Roy Dagher
PhD, Technology & Market Analyst, Compound Semiconductors at Yole Group
As the power GaN ecosystem enters a new phase, driven by IDM strategies, foundry expansion, and regional diversification, the competitive landscape is rapidly evolving.
💬 Connect with Yole Group’s analysts to explore how these shifts could impact your business, and access deeper insights through our market monitors and dedicated reports.
About the author
Roy Dagher, PhD is Technology & Market Analyst, Compound Semiconductors at Yole Group.
Part of the Compound Semiconductor team at Yole, Roy focuses on the GaN power market, analyzing and forecasting its evolution and it’s integration in the power market. Prior to joining Yole, Roy spent five years working on the growth and characterization of GaN-based LEDs, specializing in native color emission for advanced optoelectronic applications, particularly in AR/VR and display technologies.
Roy earned his PhD in 2017 from Université Côte d’Azur, where he conducted his research at CRHEA as part of the electronics team, focusing on the growth of graphene for electronic applications. Following his PhD, he joined CEA-Leti, integrating into the GaN team and gaining hands-on experience in cleanroom processing of GaN devices for transistors and display technologies.
He is the author and co-author of 12 peer-reviewed publications in materials science and holds 4 patents in the GaN field. Roy also holds a Master’s degree in Nanosciences from the Lebanese University, obtained in 2014.
Roy Dagher PhD, Technology & Market Analyst, Compound Semiconductors at Yole GroupAs the power GaN ecosystem enters a new phase, driven by IDM strategies, foundry expansion, and regional diversification, the competitive landscape is rapidly evolving.
