[News] GlobalFoundries Licenses TSMC’s 650V, 80V GaN Tech in Sign of Foundry Leader’s Retreat

In line with its strategy to focus on advanced chip technologies, TSMC is gradually retreating from lower-margin mature technology segments. Reflecting this shift, GlobalFoundries announced on November 10 a technology licensing deal with TSMC for 650V and 80V Gallium Nitride (GaN) technologies. According to the press release, development is scheduled to start in early 2026, with production ramping up later that year.

GlobalFoundries said the deal will accelerate its next-generation GaN products for data center, industrial, and automotive power applications, while expanding U.S. GaN production for global customers. The company plans to qualify the licensed technology at its Burlington, Vermont facility, leveraging its high-voltage GaN-on-Silicon expertise to ramp up mass production of advanced power devices.

Notably, TSMC confirmed in July that it will end its GaN wafer foundry services by July 31, 2027, citing rising price pressure from Chinese competitors, according to Commercial Times. Liberty Times reported that the decision was finalized in mid-June by Chairman and CEO C.C. Wei, following a recommendation from Senior VP of Business Development Kevin Zhang. As per ijiwei, TSMC plans to repurpose its Hsinchu Fab 5, currently used for GaN, for advanced packaging starting July 1, 2027.

TSMC’s recent decision to license its 650V and 80V GaN technologies to rival foundry GlobalFoundries appears to be a strategic and sensible move. According to mnnews, before this announcement, TSMC had already begun gradually outsourcing some 40–90nm orders to its affiliate, Vanguard International Semiconductor (VIS).

The report further notes that, alongside plans to shut down its Hsinchu 6-inch fab and exit the GaN foundry business within the next two years, TSMC has also sold part of its equipment to VSMC — a Singapore-based joint venture between VIS and NXP. Collectively, these moves underscore TSMC’s clear intent to reallocate resources toward higher-margin, more advanced business areas, mnnews adds.

Read more

• [News] Is the GaN Foundry Model Facing Trouble? China’s Innoscience Weighs In as TSMC Plans 2027 Exit
• [News] Infineon Accelerates GaN Push While TSMC Exits, with 300mm Wafer Samples Expected 4Q25

(Photo credit: TSMC)