⚡ The world's most advanced chipmaker just walked away from a booming technology — and a Japanese company seized the moment.
When TSMC announced it would exit gallium nitride (GaN) manufacturing by mid-2027, it sent shockwaves through the power semiconductor industry. Now, Rohm — a Kyoto-based chipmaker with seven decades of history — has acquired TSMC's proprietary GaN technology license and is bringing production in-house at its Hamamatsu factory. Here's why this matters for everything from your phone charger to AI data centers.
What Happened: Rohm's Bold Move
On February 4, 2026, Rohm CEO Katsumi Higashi revealed a pivotal strategic shift during the company's earnings briefing. Rohm has acquired a technology license from TSMC — the world's largest contract chipmaker — to manufacture 650-volt gallium nitride (GaN) power semiconductors at its own factory.
"We built this technology together with TSMC from the ground up," Higashi explained. "Now we've purchased the license and are steering toward in-house production."
The production will take place at Rohm's subsidiary in Hamamatsu, a city in central Japan known for its manufacturing heritage, where the company plans to establish a new 8-inch (200mm) wafer production line dedicated to GaN devices. If demand spikes beyond expectations, Rohm also has a contingency plan to outsource some production to Vanguard International Semiconductor (VIS), a TSMC subsidiary.
Why TSMC Is Leaving GaN Behind
This story starts with a surprising decision by the world's most important chipmaker. In mid-2025, TSMC confirmed it would completely exit GaN foundry services by July 31, 2027. The reason? GaN manufacturing, while growing fast, is simply too small and low-margin compared to TSMC's main business — making the cutting-edge AI processors that power everything from ChatGPT to autonomous vehicles.
TSMC plans to convert its Hsinchu Fab 5, currently used for GaN production, into an advanced packaging facility to meet surging demand for technologies like CoWoS (Chip-on-Wafer-on-Substrate), which are essential for assembling the massive AI chips designed by NVIDIA and others. In short, TSMC is choosing AI gold over GaN silver.
But rather than letting its GaN expertise disappear, TSMC has opted to license the technology to multiple partners. So far, three major companies have secured TSMC GaN licenses: VIS (TSMC's own affiliate), GlobalFoundries (a major U.S.-based foundry), and now Rohm. Each licensee is taking a different strategic approach — VIS aims for volume foundry services, GlobalFoundries is building a U.S. manufacturing hub backed by CHIPS Act funding, and Rohm is pursuing in-house production for its own branded devices.
GaN: The Power Chip Revolution Explained
For those unfamiliar, GaN (gallium nitride) is a "next-generation" semiconductor material that is transforming how we manage electrical power. Think of it as a supercharged upgrade to the silicon chips that have controlled power conversion for decades.
Here's what makes GaN special in plain terms: it handles electricity more efficiently, switches on and off much faster, and generates less wasted heat. These advantages translate into real-world benefits that touch everyday life. The compact fast charger that powers your laptop at a fraction of the size of old adapters? That likely uses GaN. The power systems that will make AI data centers energy-efficient enough to operate without bankrupting their owners? They'll need GaN. The onboard chargers that make electric vehicles charge faster? GaN again.
The market numbers reflect this potential. According to Yole Group, the GaN power device market was worth approximately $355 million in 2024 and is projected to reach around $3 billion by 2030 — roughly a ninefold increase in just six years, growing at a compound annual growth rate of 42%. Key growth drivers include consumer electronics (fast chargers), AI data center power supplies, electric vehicle charging systems, and renewable energy inverters.
Where Japan Stands in the GaN Race
Here's the uncomfortable truth for Japan: despite Rohm's strong technical capabilities, Japanese companies currently don't rank in the top five of global GaN power device market share. China's Innoscience leads with approximately 30% of the market, followed by U.S. companies Power Integrations and Navitas Semiconductor, plus EPC.
Rohm's decision to bring GaN production in-house is partly a response to this competitive pressure. By controlling its own manufacturing, Rohm can potentially reduce costs, accelerate development cycles, and differentiate its products. The company has already stated its belief that GaN device costs will reach parity with traditional silicon within five years — a milestone that would dramatically expand the addressable market.
Rohm's GaN strategy extends beyond just making chips. The company has been building an ecosystem approach: partnering with Delta Electronics (a major Taiwanese power supply manufacturer) since 2022 to co-develop GaN devices, collaborating with Infineon on SiC (silicon carbide) power semiconductor packaging standardization, and securing design wins in AI server power supplies through Murata Power Solutions.
The Bigger Picture: A Reshuffled Global Supply Chain
Rohm's move is part of a much larger reshuffling of the global GaN supply chain triggered by TSMC's exit. The landscape is fragmenting from a model where one mega-foundry controlled GaN production into a distributed network of specialized manufacturers across multiple countries.
GlobalFoundries is positioning its Vermont facility as a strategic U.S.-based GaN production hub, supported by over $80 million in federal government funding. VIS is combining TSMC's licensed technology with its own GaN-on-QST substrate platform to offer comprehensive foundry services. Samsung is preparing to enter the GaN market in 2026. And China's Innoscience continues to expand its 8-inch GaN-on-silicon production capacity, maintaining cost advantages that were a key factor in TSMC's decision to exit.
For Rohm, bringing GaN manufacturing to Hamamatsu represents more than a production decision — it's a statement about Japan's role in the future of power electronics. At a time when semiconductor supply chain security has become a matter of national strategy worldwide, having domestic GaN manufacturing capability gives Japan another card to play in the global technology competition.
What This Means for You
The ripple effects of this shift will eventually reach consumers. More efficient GaN power devices mean smaller, lighter chargers and adapters. They mean AI services that consume less electricity (and potentially cost less to run). They mean electric vehicles that charge faster and drive farther. And they mean renewable energy systems that waste less power during conversion.
Rohm's Hamamatsu factory joining the global GaN production network adds diversity and resilience to a supply chain that the world increasingly depends on.
In Japan, this story has sparked debate about whether the country can compete in next-generation semiconductors against well-funded Chinese and American rivals. But what about your country? How is GaN technology affecting the electronics and energy landscape where you live? We'd love to hear your perspective.
References
- https://eetimes.itmedia.co.jp/ee/articles/2602/04/news114.html
- https://www.rohm.co.jp/news-detail?news-title=2024-12-10_news&defaultGroupId=false
- https://www.semiconductor-today.com/news_items/2026/jan/vis-tsmc-290126.shtml
- https://www.trendforce.com/news/2025/11/27/news-globalfoundries-moves-on-gan-tsmc-and-navitas-ties-position-u-s-as-new-gan-production-hub/
- https://www.yolegroup.com/strategy-insights/the-power-gan-race-market-growth-consolidation-and-new-entrants/
Reactions in Japan
Rohm buying TSMC's license for in-house production shows they're fully committed. Setting up an 8-inch line in Hamamatsu — they're dead serious.
Didn't know zero Japanese companies are in the GaN top 5. Rohm is doing well in SiC but apparently invisible in GaN...
I work in power semiconductors. Setting up your own GaN line requires heavy capex. But long-term, it's a better risk hedge than relying on outsourcing.
Is it really safe to take over what TSMC abandoned? Worried about whether they can profit against Chinese price competition.
Looks negative that Rohm is picking up what TSMC deemed unprofitable, but foundry and IDM business models have different economics. Rohm can potentially profit with its design-to-sale vertical integration.
Hamamatsu isn't just about musical instruments and motorcycles — it's a semiconductor city too. Rohm Hamamatsu's production line is becoming strategically important at the national level.
As a GaN charger user, this hits close to home. The compact, ultra-fast charging is thanks to GaN. Learning the tech behind it makes me want to root for them.
Isn't this going to be another 'Japan has the tech but loses the market' scenario? Don't underestimate Innoscience's 8-inch mass production and cost competitiveness.
I hold Rohm stock. Honestly, with SiC impairment damage still lingering, new investment makes me anxious. But considering GaN market potential, it's probably unavoidable.
If Rohm's forecast that GaN costs will reach silicon levels within 5 years is real, it affects everything — EVs, AI, and renewables.
Partnerships with Delta Electronics, collaboration with Infineon — isn't Rohm quietly good at building networks? Their open strategy is pretty un-Japanese.
METI should provide more subsidies for moves like this. Rather than concentrating investment only on Rapidus, diversifying into existing makers' next-gen tech would spread the risk better.
In semiconductors, being able to make your own stuff is the ultimate strength. This is a perfect example of TSMC dependency risk materializing. Rohm made the right call.
GaN being essential for NVIDIA's 800V data center power — in the end, power efficiency issues come down to power semiconductors. The unsung hero behind the AI boom.
Honestly, I can't see a path to beating Chinese players in GaN. Innoscience already achieved 40% cost reduction with 8-inch, while Rohm is just starting. Aren't they a lap behind?
A Kyoto semiconductor maker building world-class GaN in Hamamatsu — there's something romantic about it. Go Rohm!
I'm a semiconductor engineer in Korea. TSMC's GaN exit was a huge shock to the industry. Rohm switching to in-house production via license is interesting. With Samsung also entering GaN in 2026, Japan-Korea competition will intensify.
Can't go back to life without a GaN charger lol. Just learned the compact fast charging is thanks to GaN tech. Never heard of Rohm before but turns out they're an important company affecting our daily lives.
I work at Innoscience. Frankly, it won't be easy for Japanese companies to catch us in GaN. Our cost advantage from 8-inch mass production lead isn't easily overturned. But I'll admit Rohm's automotive quality is solid.
I work at a German auto parts supplier. Diversifying GaN onboard charger sources for EVs is welcome. Over-reliance on TSMC carried too much geopolitical risk. Rohm's in-house production is good news for us too.
In India, EV and solar inverter demand is surging. If GaN tech gets cheaper, it could revolutionize India's renewable energy market. Looking forward to Rohm's '5-year silicon cost parity' target.
I hold GlobalFoundries stock so I follow GaN news closely. CHIPS Act funds for GF, TSMC license for Rohm. The scramble for this technology is heating up. As an investor, diversifying across GaN players matters.
Based in Taiwan. Sad to see TSMC let go of GaN, but focusing on AI chips is the right call. I hope Rohm succeeds. With their history of co-development with TSMC, the technology transfer should go smoothly.
STMicroelectronics is also building a GaN factory in Tours, France. Europe needs its own power semiconductor manufacturing. The competition between Japan's Rohm and Europe's ST is healthy for the industry.
I work at an EV startup in Mexico. Honestly, consumers don't care where power chips come from. What matters is performance and cost. Whether Rohm or Innoscience — just deliver better, cheaper products to end users.
AI data center power consumption is a serious issue. In Ireland, data centers consume over 20% of the nation's electricity. If GaN improves power efficiency, it's an environmental issue too.
Japanese-American here. In the US, GlobalFoundries is expanding GaN production with CHIPS Act funding. Without equivalent industrial policy, Japan will fall behind despite having the tech. Is the government supporting Rohm?
Multipolarization of the semiconductor supply chain is welcome. Concentration in Taiwan is a global risk. Japan, US, and Europe each having GaN manufacturing capability is geopolitically important.
I research materials engineering at a Polish university. GaN-on-Si technology is still evolving with significant room for yield improvement. Watching whether Rohm can absorb TSMC's process know-how and improve further.
I work on solar power adoption in Nigeria. If GaN inverters become affordable, they could transform Africa's electricity situation. Please don't make this technology only for developed countries.