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TSMC to exit gallium nitride semiconductor business in two years
Jul. 04, 2025 –
Taiwan Semiconductor Manufacturing Company (TSMC) plans to discontinue its gallium nitride (GaN) semiconductor operations within the next two years.
The decision follows an assessment of market conditions and aligns with the company’s long-term strategy.
As the world’s largest contract chipmaker, TSMC cited increased competition from Chinese investments in GaN production.
This competition has led to lower global prices, affecting profitability.
TSMC initially produced GaN using six-inch and eight-inch fabrication facilities. However, rising competition has influenced its decision to exit the market.
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