[News] GaN Industry Enters a New Phase as TSMC Licenses GaN Technologies to VIS and GF

Amid the surging global AI wave and the accelerating transition toward green energy, gallium nitride (GaN) industry is entering a pivotal golden growth period. According to TrendForce’s research, the global GaN power device market is projected to expand at a robust compound annual growth rate (CAGR) of 44%, growing from USD 390 million in 2024 to USD 3.51 billion by 2030.

Against this backdrop of rapid expansion, strategic shifts by leading foundries are reshaping the GaN value chain. While TSMC is preparing to gradually exit GaN foundry services, it is transferring its deep technical know-how to partners such as Vanguard International Semiconductor (VIS) and GlobalFoundries (GF) through technology licensing agreements. This move not only enables a more refined division of labor across the industry, but also injects fresh momentum into next-generation applications including data centers, electric vehicles, and humanoid robots.

VIS Secures TSMC License to Build a Comprehensive GaN Foundry Platform

On January 28, VIS officially announced that it has signed a technology licensing agreement with TSMC, gaining access to its 650V high-voltage and 80V low-voltage GaN process technologies. Development under the partnership is expected to begin in early 2026, with mass production targeted for the first half of 2028.

By extending silicon-based GaN (GaN-on-Si) processes into high-voltage applications and integrating them with its existing GaN-on-QST platform, VIS will become the world’s only foundry capable of offering GaN manufacturing services on two different substrate platforms simultaneously.

This strategy allows VIS to deliver a full spectrum of solutions ranging from sub-200V low-voltage and 650V high-voltage to 1,200V ultra-high-voltage applications, precisely addressing the stringent efficiency requirements of data centers, automotive electronics, industrial control, and energy management systems. The company also plans to validate these processes on its mature 8-inch wafer platform to ensure process stability and high yield.

TSMC Shifts Strategy: Doubling Down on AI While Empowering Partners in GaN

As the world’s leading pure-play foundry, TSMC announced in July 2025 that it would gradually withdraw from GaN foundry services, with a full exit scheduled for July 31, 2027.

The decision reflects a strategic reallocation of resources toward AI chips, which offer significantly higher wafer volumes, revenue contributions, and profitability compared with GaN foundry services. In contrast, GaN production remains relatively small in scale and has yet to meet TSMC’s return expectations.

However, TSMC’s exit does not signal the end of its GaN technology. Instead, its accumulated expertise is being passed on through licensing agreements to support broader industry development.

In addition to VIS, GF signed a similar licensing deal with TSMC in November 2025, covering 650V and 80V GaN technologies. Backed by TSMC’s technology, GF aims to strengthen its presence in key power applications spanning data centers, industrial systems, and automotive electronics, accelerating the transition to a new generation of high-efficiency power semiconductors.

Outlook

Thanks to its superior material properties—including high electron mobility, high breakdown electric field, and excellent thermal conductivity—GaN is rapidly expanding beyond consumer fast-charging applications into more demanding industrial and advanced technology domains such as data centers, new energy vehicles, and humanoid robots.

While the market has yet to reach truly massive scale, GaN is widely regarded as standing on the brink of an inflection point. Driven by the three major engines of AI, electric vehicles, and robotics, GaN technology is poised for an imminent breakout, with substantial long-term growth potential ahead.

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