ON Semiconductor shares climbed about 3% on Thursday. The move came after the company announced a new partnership with GlobalFoundries.
The two companies will work together to build next generation power chips. These chips will be based on gallium nitride technology, also known as GaN.
The first focus will be on 650 volt GaN products. GlobalFoundries will handle the manufacturing process. ON Semiconductor will add its own drivers, controllers, and packaging technology.
The goal is to create power systems that are smaller and more efficient. These systems are meant for AI data centers, electric vehicles, factories, and aerospace and defense uses.
ON Semiconductor said it plans to start sending samples to customers in the first half of 2026. Full scale production will begin after that.
This deal expands ON Semiconductor’s power chip lineup. It will now cover GaN products across a wide voltage range, from low to very high power uses.
GaN chips have several benefits compared to older semiconductor materials. They can run at higher speeds. They handle power more efficiently. They also allow more functions to be built into fewer parts.
Because of this, companies can design systems with fewer components. Devices can be smaller. Costs can come down. Heat handling also improves.
The new GaN chips are expected to be used in many areas. These include power supplies and converters for data centers. They will also be used in electric vehicle chargers, solar systems, energy storage units, and industrial and aerospace motors.
The partnership is seen as a strategic step for ON Semiconductor. Power demand is rising fast across many industries. At the same time, space and size limits are becoming more important. This collaboration helps the company compete in these fast growing markets.
