Navitas Semiconductor Corporation files 8-K as TSMC to cease GaN production in July 2027

Navitas Semiconductor Corporation files 8-K as TSMC to cease GaN production in July 2027

Navitas Semiconductor Corporation (Nasdaq: NVTS) has filed an 8-K report with the U.S. Securities and Exchange Commission (SEC) [1] indicating that Taiwan Semiconductor Manufacturing Company (TSMC) will cease production of gallium nitride (GaN) devices in July 2027. This move comes as Navitas transitions its GaN production to Powerchip Semiconductor Manufacturing Corporation (PSMC) under a strategic partnership announced earlier this year.

The 8-K filing details the shift in production responsibilities, noting that TSMC, which has been Navitas' primary supplier for GaN devices, will no longer manufacture these components by the specified date. The transition is part of Navitas' broader strategy to enhance its manufacturing capabilities and cost efficiency, aligning with its recent partnership with Powerchip.

Navitas has been actively expanding its GaN portfolio to meet the growing demand from various sectors, including AI data centers, electric vehicles, and solar energy systems. The company's recent collaboration with Powerchip aims to leverage the latter's advanced manufacturing capabilities to produce high-volume, high-performance GaN-on-silicon technology. The initial qualification of devices is expected by the fourth quarter of 2025, with mass production of specific voltage families starting in 2026 [2].

The shift in production from TSMC to Powerchip is expected to bring several benefits to Navitas, including improved product performance, enhanced power efficiency, and reduced costs. However, the filing also acknowledges potential risks, such as supply chain stability and control over operational processes, given the reliance on an external partner for production.

Investors and financial professionals should closely monitor this development, as it could impact Navitas' ability to meet market demand and maintain its competitive edge in the GaN market. The company's strategic partnership with Powerchip and its ongoing efforts to enhance its manufacturing capabilities are critical factors to consider in assessing Navitas' future performance.

References:
[1] https://www.nasdaq.com/articles/navitas-semiconductor-announces-strategic-partnership-powerchip-200mm-gan-silicon
[2] https://www.nasdaq.com/articles/navitas-semiconductor-files-8-k-as-tsmc-to-cease-gan-production-in-july-2027