Navitas Partners with GlobalFoundries to Shift GaN Production to U.S. Soil
The semiconductor firm is pivoting to Vermont-based manufacturing by 2026 as TSMC signals an exit from GaN foundry services.
Navitas Semiconductor (NVTS) has entered into a long-term strategic partnership with GlobalFoundries (GF) to accelerate the design and manufacturing of Gallium Nitride (GaN) technology within the United States. The move establishes a domestic production pathway for high-efficiency power chips, aimed at bolstering national security and industrial competitiveness.
Under the terms of the agreement, production is slated for GlobalFoundries' facility in Burlington, Vermont. Development of the technology is scheduled for early 2026, with full-scale production expected to commence later that same year. This strategic pivot targets high-power sectors, specifically AI data centers, performance computing, industrial electrification, and energy grid infrastructure.
The Pivot from TSMC
This shift comes as a critical response to changing supplier dynamics. Navitas previously relied heavily on TSMC for its GaN production, at one point accounting for nearly half of TSMC's total GaN wafer output. However, the partnership with GlobalFoundries follows signals that TSMC intends to exit its GaN wafer foundry services by 2027. By securing a long-term agreement with GF, Navitas is proactively mitigating the risk of a primary supplier exit while diversifying its manufacturing footprint.
Strategic Implications
Moving production to the U.S. provides Navitas with a significant competitive moat in the power chip market. By domesticating its supply chain, the company reduces its exposure to geopolitical tensions and logistics risks associated with overseas fabrication. Furthermore, U.S.-based production allows Navitas to better align with the goals of the CHIPS Act and positions the company to capture government incentives designed to revitalize domestic semiconductor manufacturing.
Beyond financial incentives, the "U.S. pathway for GaN" makes Navitas a more attractive partner for U.S. government agencies and industrial clients. These entities increasingly require domestic sourcing for critical infrastructure to ensure supply chain resilience and meet strict national security requirements.
Future Outlook
Industry observers will now watch for the successful transition of design specifications to the Burlington facility throughout 2025. While the partnership secures a manufacturing home, the primary challenge remains the execution of the 2026 production timeline. If successful, Navitas will have transformed a potential supply chain crisis—the loss of TSMC's foundry services—into a strategic advantage that anchors its technology in the American industrial base.