Major players are reshaping the semiconductor map: TSMC exits GaN, Infineon scales it up, GlobalFoundries goes vertical with MIPS, and TI backs U.S. fabs with $60B.
Jul. 16, 2025 –
In just the past few weeks, four major players—TSMC, Infineon, GlobalFoundries, and Texas Instruments—have made high-stakes announcements that, taken together, chart a course for the next decade of compute and power.
GaN is out at TSMC but scaling fast at Infineon. GlobalFoundries (GF) is absorbing MIPS to deliver custom RISC-V AI platforms. And TI is doubling down on American-made analog chips with the largest U.S. fab investment in history.
TSMC will wind down its GaN wafer foundry business by July 2027, citing unsustainable price pressure from Chinese rivals and a realignment toward advanced packaging and AI-focused silicon. GaN makes up a minor portion of TSMC’s output—just 3,000–4,000 wafers per month—but growing subsidies and scale in China have eroded its profitability. Instead, TSMC will repurpose its Hsinchu Fab 5 for CoWoS, WoW, and WLSI technologies to meet surging AI demand, where margins are higher and differentiation is stronger.
This move marks a shift away from niche compound semiconductors toward scale-intensive platforms better aligned with TSMC’s core strengths. It also reshapes the market: Navitas will migrate production to PSMC starting in 2026, while players like Infineon are stepping in with 300-mm GaN production. For design engineers, the impact will be gradual but significant, and they should expect a tighter, more regionalized GaN supply chain and growing consolidation in compound semiconductor foundry services by 2027.
Infineon’s move to 300-mm GaN wafer manufacturing is a calculated response to both market demand and competitive openings. With TSMC set to exit GaN foundry services by 2027 and Chinese price competition squeezing margins, Infineon is doubling down on its integrated device manufacturer model, controlling design through production in-house.