Powerchip Semiconductor Manufacturing Corp. secured a production agreement with Navitas Semiconductor Corp., positioning the Taiwanese foundry to capitalize on surging demand for power chips in artificial intelligence data centers.
Navitas will manufacture gallium nitride semiconductors at Powerchip’s Fab 8B facility in Zhunan Science Park using 180-nanometer CMOS technology, according to the companies. The partnership becomes critical as Taiwan Semiconductor Manufacturing Co. plans to exit gallium nitride production by July 2027, forcing Navitas to diversify its supply chain.
The deal follows Navitas’s collaboration with Nvidia Corp. announced in May to develop 800-volt power architecture for AI data centers, which sent Navitas shares surging over 200%. The chip designer’s stock jumped from below $2 to over $8 per share after the Nvidia announcement.
Powerchip expects to qualify initial devices by the fourth quarter of 2025, with mass production of 100-volt gallium nitride products starting in the first half of 2026. Higher-voltage 650-volt devices will transition from TSMC to Powerchip over the next 12-24 months.
The arrangement gives Powerchip indirect exposure to Nvidia’s expanding AI infrastructure business, though the financial terms remain undisclosed. Navitas reported $83.3 million in revenue last year while posting an $84.6 million net loss.
Gallium nitride chips offer superior power efficiency compared to traditional silicon semiconductors, making them attractive for energy-intensive AI servers. However, the technology remains niche, and Powerchip faces competition from established players including Infineon Technologies AG and STMicroelectronics NV.
