ON Semiconductor Corporation (NASDAQ:ON) shares advanced about 3% on Thursday after the company unveiled a strategic collaboration with GlobalFoundries (NYSE:GFS) to jointly develop and produce next-generation gallium nitride (GaN) power semiconductor devices.
The agreement will initially center on 650-volt GaN solutions, combining GlobalFoundries’ 200mm enhancement-mode GaN-on-silicon manufacturing process with ON Semiconductor’s expertise in silicon-based drivers, controllers and advanced packaging. Together, the companies aim to deliver more compact and energy-efficient power systems tailored for fast-growing markets such as AI data centers, electric vehicles, industrial equipment, and aerospace and defense applications.
ON Semiconductor said it expects to start supplying customer samples in the first half of 2026, with full-scale production ramping up thereafter. The collaboration broadens ON Semiconductor’s power portfolio, enabling it to offer GaN technologies across a wide voltage range, from low- to ultra-high-voltage applications.
GaN-based devices provide key performance advantages over conventional silicon solutions, including higher switching frequencies, bidirectional operation and greater functional integration. These capabilities allow designers to shrink system size, reduce component counts and costs, while simultaneously improving efficiency and thermal performance.
Target applications for the new products include data center power supplies and DC-DC converters, onboard chargers for electric vehicles, solar microinverters, energy storage platforms, and motor drives used in industrial, aerospace and defense systems.
The partnership underscores ON Semiconductor’s strategic push to strengthen its presence in high-growth sectors where rising power requirements must be balanced against tight space and efficiency constraints.