The world’s semiconductor and AI compute infrastructures have hit a wall in terms of infrastructure capacity. With the development of enormous data centers that contain high-performance GPUs and AI accelerators by hyperscale cloud companies, energy requirements have climbed to record highs. Current AI server racks consume anywhere between 100 to 120 kilowatts per rack – almost four to five times the power requirements of regular cloud server racks.
This exponential rise in power density creates two physical challenges: extreme thermal dissipation and electrical power conversion loss.
There are physical limitations on the efficiency of legacy silicon-based power transistors. Under conditions of extreme voltage and high-frequency operation, the silicon-based power components dissipate excessive amounts of energy in the form of heat, necessitating extensive liquid cooling systems and increasing operational costs of data centers. To support the growing energy requirements of AI facilities, the semiconductor industry is making strides towards wide-bandgap (WBG) materials, notably Gallium Nitride (GaN).
In efforts to address the problem of inefficiency and build domestic semiconductor supply chains, power semiconductor company Navitas Semiconductor and global foundry GF have reached an important milestone partnership by manufacturing and delivering Navitas Gen 5 GaNFast™ power ICs within the United States.
The next generation Gen 5 GaNFast power ICs were manufactured using GlobalFoundries’ 200 mm GaN-on-Silicon platform in Burlington, Vermont, and feature outstanding power density and efficiency, enabling domestic manufacturing of power supplies for AI data centers, electric cars, and industrial power systems.
Onshoring High-Efficiency GaN Manufacturing for AI Infrastructure
The collaboration combines Navitas’ GaN power IC design with GlobalFoundries’ high-volume, U.S.-based specialty fabrication capabilities. By shifting GaN wafer fabrication to GlobalFoundries’ Vermont facility, the partnership establishes an onshore supply chain for power semiconductors used in AI hyperscale infrastructure.
Key technical and strategic pillars of the partnership include:
High-Efficiency Gen 5 GaNFast Architecture: Delivers up to 99% efficiency in power conversion stages, enabling server power supply units (PSUs) to achieve over 3 kW of power output in compact form factors while cutting power losses by up to 30%.
200 mm Wafer Fabrication: Produced at GlobalFoundries’ 200 mm GaN-on-Silicon fabrication line located in Burlington, Vermont, enabling high yields.
Onshoring Power Semiconductor Production: Increases the resilience of U.S. semiconductor supply chains through funding via the CHIPS and Science Act for the production of advanced power semiconductors.
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Multi-Market Expansion: Besides AI data centers, the U.S.-produced Gen 5 GaNFast devices are meant to be used in EV onboard chargers, solar inverters, and industrial power solutions.
“AI data centers require a complete rethink of power and cooling,” says Gene Sheridan, Navitas Semiconductor’s CEO and co-founder.
Impact on the Semiconductor Industry
The new production agreement between Navitas and GlobalFoundries is indicative of fundamental changes taking place in the larger semiconductor industry:
1. Transitioning to Wide-Bandgap Adoption
Historically, Gallium Nitride was treated as a niche material reserved for consumer fast chargers. Mass-producing Gen 5 GaN power ICs on 200 mm wafers formalizes the industry transition toward Wide-Bandgap Adoption. GaN’s ability to switch ten times faster than silicon positions it as the default power architecture for high-efficiency enterprise power supplies.
2. Reshoring Advanced Specialty Manufacturing
For decades, semiconductor fabrication was concentrated heavily in East Asia, creating supply chain vulnerabilities. Fabricating advanced GaN chips in Vermont demonstrates that Specialty Foundry Reshoring is Viable. Combining CHIPS Act funding with private capital allows domestic foundries to offer competitive commercial scale for critical power components.
Overall Effects on Business Operations within the Sector
For designers of AI hardware, cloud hyperscale players, and makers of power supplies, Navitas-GlobalFoundries collaboration brings the following business benefits:
Reduced Operating Costs: Increased energy conversion efficiency leads to less need for electricity and cooling, thus helping to cut millions off utility bills of hyperscalers.
Removing Geopolitical Risks from the Supply Chain: Purchase of American-made GaN chips guarantees uninterrupted supply of necessary components for governmental, aerospace, and critical infrastructure projects.
Opportunity to Increase GPU/AI Accelerator Density Per Rack: Small GaN power supplies provide more space in the racks for placement of GPUs and AI accelerators.
Conclusion
Navitas Semiconductor and GlobalFoundries’ partnership to manufacture Gen 5 GaNFast chips in the United States represents a pivotal milestone in the evolution of power electronics. By combining cutting-edge GaN power IC design with secure, domestic 200 mm foundry manufacturing, these two industry leaders are providing a sustainable foundation for AI infrastructure growth. For the global semiconductor industry, this milestone proves that powering the future of computing requires marrying advanced wide-bandgap material innovation with secure, resilient manufacturing scale.
