ON Semi, GlobalFoundries Forge GaN Chip Alliance for EVs, AI Data Centers
The partnership leverages GlobalFoundries' US-based manufacturing to produce high-efficiency power chips, aiming to secure a domestic supply chain for critical growth markets.
ON Semiconductor (onsemi) and GlobalFoundries are joining forces to manufacture next-generation gallium nitride (GaN) chips, a strategic move designed to secure a U.S.-based supply for high-demand sectors including electric vehicles, artificial intelligence data centers, and renewable energy.
The collaboration, announced on December 18, 2025, will see onsemi, a power-management chip specialist with a market capitalization of approximately $22.5 billion, utilize GlobalFoundries' advanced 200mm GaN-on-silicon manufacturing process. This pairs onsemi’s expertise in driver and packaging technology with the production capabilities of GlobalFoundries, a foundry valued at around $20.7 billion.
Gallium nitride is a wide-bandgap semiconductor material prized for its ability to operate at higher voltages and frequencies than traditional silicon. This allows for the creation of power-management systems that are significantly smaller, lighter, and more energy-efficient—critical attributes for applications where space and efficiency are paramount. The initial focus of the partnership will be on developing 650-volt GaN power devices.
For onsemi, the deal provides a vital source for leading-edge GaN devices, expanding its portfolio of intelligent power solutions. The company expects to provide initial samples of the new GaN devices to customers in the first half of 2026, with plans to scale rapidly to volume production.
For GlobalFoundries, the agreement represents a major endorsement of its GaN manufacturing platform by a leader in the power semiconductor market. The chips will be produced in GFS's U.S. manufacturing facilities, a key detail that aligns with the broader push to onshore critical semiconductor supply chains. This domestic production capacity is intended to provide customers with a secure and reliable source of advanced chips, mitigating the geopolitical risks that have plagued the industry.
The partnership directly targets some of the fastest-growing segments of the global economy. In electric vehicles, GaN-based on-board chargers and DC-DC converters can reduce charging times and extend vehicle range. In data centers, particularly those powering AI, GaN's efficiency helps to reduce the immense power consumption and cooling costs associated with high-performance computing.
This strategic alliance between two of America's leading semiconductor firms underscores a significant industry trend: the move towards advanced materials to push beyond the physical limits of silicon. As demand for high-performance, energy-sipping electronics continues to surge, collaborations that secure both technological advantage and supply chain resilience are becoming central to competitive strategy.