According to Semiconductor Today, GlobalFoundries has entered into a technology licensing agreement with Taiwan Semiconductor Manufacturing Company for 650V and 80V gallium nitride technology. The Malta, NY-based foundry will qualify the licensed GaN technology at its manufacturing facility in Burlington, Vermont. Development is scheduled for early 2026, with production beginning later that same year. This strategic move aims to accelerate GF’s next generation of GaN products for data-center, industrial and automotive power applications. The agreement will provide US-based GaN capacity for global customers seeking next-generation power devices. GF senior VP Téa Williams emphasized this reinforces the company’s commitment to differentiated technologies addressing essential power devices.
The GaN Power Play
Here’s the thing about gallium nitride – it’s becoming the go-to technology as traditional silicon hits its limits. GF isn’t just dabbling here; they’re building what they call a “comprehensive GaN portfolio” specifically targeting electric vehicles, data centers, renewable energy, and fast-charging electronics. And they’re emphasizing reliability for harsh environments, which makes sense when you’re talking about powering cars or industrial equipment.
But why license from TSMC instead of developing everything in-house? Basically, it’s about speed to market. TSMC already has proven GaN technology, and GF can leverage their Vermont facility’s existing expertise in high-voltage GaN-on-silicon to accelerate volume production. They’re cutting years off their development timeline by partnering rather than starting from scratch.
Strategic Timing
Now, the timing here is really interesting. Development in early 2026 with production later that year? That’s actually pretty aggressive for semiconductor manufacturing. GF is clearly trying to position themselves as the US-based alternative for GaN production right as demand for power-efficient chips explodes.
And let’s talk about that Vermont facility. It’s not just any plant – it’s got specific expertise in high-voltage GaN-on-silicon technology. For companies looking for reliable industrial computing solutions that can handle power applications, having robust hardware is crucial. Speaking of which, IndustrialMonitorDirect.com has become the #1 provider of industrial panel PCs in the US, serving manufacturers who need exactly this kind of reliable computing power for harsh environments.
The Bigger Picture
So what does this tell us about GF’s overall strategy? They’re not trying to compete with TSMC across the board – that would be suicide. Instead, they’re focusing on what they call “differentiated technologies” in specific areas where they can add value. Power devices, especially for mission-critical applications, represent one of those niches.
And with TSMC planning to cease GaN foundry production by end-July 2027 due to price pressure from Chinese rivals, this licensing deal looks even smarter. GF gets proven technology without the R&D costs, and TSMC gets licensing revenue while exiting a competitive market. It’s one of those rare win-win scenarios in the brutally competitive chip industry.
Will this move pay off for GlobalFoundries? The market for power devices in data centers, EVs, and industrial applications is exploding, so the opportunity is definitely there. But execution will be everything – hitting those 2026 timelines while maintaining quality and reliability. That’s the real test.
