onsemi and Innoscience Announce Plans to Collaborate to Speed Global Rollout of GaN Power Portfolio
Rhea-AI Summary
onsemi (NYSE:ON) signed a memorandum of understanding with Innoscience to evaluate scaling production of GaN power devices (40–200V) using Innoscience’s 200mm GaN-on-silicon process and onsemi’s systems, drivers and packaging expertise. The collaboration aims to accelerate worldwide, high-volume deployment, lower system cost, and broaden adoption across industrial, automotive, telecom infrastructure, consumer and AI data center markets.
The non-binding MoU targets a projected $2.9 billion GaN power market by 2030 and expects sampling to begin in H1 2026.
Positive
- Targets $2.9B GaN power market by 2030
- Samples planned in H1 2026
- Combines onsemi system integration with Innoscience 200mm GaN wafer manufacturing
- Scalable, worldwide manufacturing for low/medium-voltage GaN
Negative
- Non-binding MoU — no guaranteed commercial terms or revenues yet
News Market Reaction
On the day this news was published, ON gained 2.08%, reflecting a moderate positive market reaction. Argus tracked a peak move of +7.3% during that session. Our momentum scanner triggered 179 alerts that day, indicating very high trading interest and price volatility. This price movement added approximately $471M to the company's valuation, bringing the market cap to $23.13B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ON slipped 0.24% while close peers were mixed: GFS and UMC slightly down, STM and ASX modestly up, and CRDO down more sharply. This pattern points to a stock-specific reaction rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 02 | GaN collaboration MoU | Positive | +2.1% | Announced Innoscience MoU to scale 40–200V GaN power devices globally. |
| Nov 18 | Share repurchase plan | Positive | -1.0% | Unveiled new $6B three-year buyback following prior $3B authorization. |
| Nov 03 | Q3 2025 earnings | Positive | +0.8% | Reported Q3 revenue $1,550.9M and strong free cash flow with guidance. |
| Oct 30 | Vertical GaN launch | Positive | -1.1% | Introduced vGaN power devices for AI data centers, EVs, and renewables. |
| Oct 28 | Design win news | Positive | -1.7% | Teledyne selected Treo platform for advanced infrared imaging ROIC ASICs. |
Recent ON news has often seen muted or negative price reactions to generally positive strategic and technology updates, with 3 divergences vs 2 alignments.
Over the last few months, ON has combined capital returns with technology and partnership moves. It introduced vertical GaN devices for AI and electrification, secured Teledyne’s selection of its Treo platform, and reported Q3 2025 revenue of $1,550.9M with solid free cash flow. A new $6B repurchase authorization was added. Today’s GaN collaboration MoU extends this intelligent power strategy by targeting the projected $2.9B GaN market by 2030 and sampling in H1 2026.
Market Pulse Summary
This announcement details a non-binding MoU under which onsemi and Innoscience aim to scale 40–200V GaN power devices on a 200mm GaN-on-silicon process. It targets a projected $2.9B GaN market by 2030 with a 42% CAGR and sampling expected in H1 2026. The collaboration would complement onsemi’s silicon and SiC portfolio, but investors should monitor execution milestones, product sampling timing, and uptake across industrial, automotive, telecom, consumer, and AI data center markets.
Key Terms
gan-on-silicon technical
dc-dc converters technical
point-of-load converters technical
ai data center technical
compound annual growth rate technical
AI-generated analysis. Not financial advice.
Collaboration would add high-volume, cost-optimized, worldwide GaN manufacturing for faster market deployment of energy-efficient power devices
Summary:
onsemi announced it has signed a memorandum of understanding with Innoscience to explore expanding production of gallium nitride (GaN) power devices using Innoscience’s proven 200mm GaN-on-silicon process. The collaboration would combine onsemi’s system integration, drivers, and packaging expertise with Innoscience’s GaN wafers and high-volume manufacturing leadership in an effort to bring cost-effective, energy-efficient solutions to market faster and accelerate GaN adoption.
News Highlights:
- Collaboration would expand onsemi’s low and medium-voltage GaN power portfolio and scale GaN manufacturing worldwide for faster market availability and greater adoption.
- The non-binding MOU outlines a strategic partnership, including wafer procurement and extended collaboration, leveraging onsemi's GaN power solutions and Innoscience's leading wafer manufacturing to target the projected
$2.9 billion total addressable market1 by 2030 for GaN power devices, with the potential value in the hundreds of million dollars for both companies. - The arrangement would assist onsemi and Innoscience in their efforts to deliver significant customer value, specifically by combining onsemi’s expertise in packaging, drivers, and systems integration with Innoscience’s proven wafer manufacturing capabilities.
- The two companies’ technologies together are expected to enable smaller, more efficient GaN solutions for industrial, automotive, telecom infrastructure, consumer, and AI data center markets.
SCOTTSDALE, Ariz., and SUZHOU, China, Dec. 02, 2025 (GLOBE NEWSWIRE) -- onsemi and Innoscience today announced the signing of a memorandum of understanding (MoU) to evaluate opportunities to accelerate deployment of GaN power devices, starting with 40-200V, and significantly broaden customer adoption. The collaboration outlined in the MoU brings together onsemi’s leadership in integrated systems and packaging with Innoscience’s proven GaN technology and high-volume manufacturing to enable delivery of cost-effective, highly efficient GaN products for industrial, automotive, telecom infrastructure, consumer and AI data center markets.
GaN semiconductor devices offer higher switching speeds, smaller form factors, and lower energy losses to deliver more power in less space. Until now, limited offerings and manufacturing capacity have slowed GaN adoption in the low and medium-voltage segment. Through this collaboration, onsemi and Innoscience will seek to overcome these barriers to quickly bring high-volume, worldwide deployment of optimized GaN solutions for mainstream markets:
- Industrial: motor drives for robotics, solar microinverters, and optimizers
- Automotive: DC-DC converters, synchronous rectification
- Telecom Infrastructure: DC-DC and point-of-load converters
- Consumer and Mass Market: power supplies, adaptors, DC-DC converters, motor drives, audio, light e-mobility, power tools, robotics
- AI Data Center: intermediate bus converters, DC-DC converters, battery backup units
For onsemi customers, the collaboration with Innoscience would enable:
- Faster Time to Market: Rapid prototyping, accelerated design-in, and swift entry into mainstream markets with onsemi's system expertise and Innoscience’s proven GaN technology and manufacturing
- Scalable Manufacturing: True mass-market scalability to handle large-volume ramps, leveraging onsemi's global integration and packaging experience and Innoscience’s established GaN capacity
- Lower System Cost: Optimized package, fewer components and simplified thermal management deliver more compact designs and lower total system cost
“As power demands rise across every sector, GaN offers higher efficiency, smaller size, and lower energy losses compared to other materials. Until now, in the low and medium voltage segments, cost and supply constraints have limited its widespread adoption. Through a collaboration with Innoscience, we expect to be able to access the industry’s largest GaN production footprint and quickly scale our GaN offerings for customers worldwide to enable broader adoption in mainstream power applications." – Antoine Jalabert, Vice President of Corporate Strategy, onsemi
“GaN technology is essential to improving electronics, creating smaller, more efficient power systems, saving electric power, and reducing CO2 emissions. Innoscience is excited to explore a strategic collaboration opportunity with onsemi, to expand and accelerate the adoption of GaN power worldwide, and to create a system integration platform with onsemi’s broad portfolio.” – Yi Sun, Senior Vice President, Product & Engineering
A Complete Intelligent Power Portfolio
GaN is projected to capture an estimated
Timing and Availability
onsemi expects to begin sampling in the first half of 2026.
1 Source: Yole Power GaN 2025
Caution Regarding Forward-Looking Statements:
This press release includes “forward-looking statements,” as that term is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this press release could be deemed forward-looking statements, particularly statements about the state and potential impacts of any collaboration between onsemi and Innoscience. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “targets,” “should,” “would” or similar expressions or by discussions of strategy, plans, expectations, projections or intentions. All forward-looking statements in this document are made based on onsemi’s current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect onsemi’s future results or events are described under Part I, Item 1A “Risk Factors” in the 2024 Annual Report on Form 10-K that onsemi filed with the U.S. Securities Exchange Commission (“SEC”) on February 10, 2025 (the “2024 Form 10-K”) and from time to time onsemi’s other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. onsemi assumes no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in onsemi’s securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, the 2024 Form 10-K and other reports filed with or furnished to the SEC by onsemi before making any investment decision with respect to onsemi’s securities. If any of these trends, risks or uncertainties actually occurs or continues, onsemi’s business, financial condition or operating results could be materially adversely affected, the trading prices of onsemi’s securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to onsemi or persons acting on onsemi’s behalf are expressly qualified in their entirety by this cautionary statement.
About onsemi
onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way to creating a safer, cleaner and smarter world. onsemi is included in the Nasdaq-100 Index® and S&P 500® index. Learn more about onsemi at www.onsemi.com.
onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.
About Innoscience
Innoscience (HKEX:02577.HK) is the global leader in 8” GaN-on-Silicon process innovation and power device manufacturing. Innoscience’s device designs and performance have set the worldwide standard for GaN, and Innoscience’s GaN products have achieved majority market share in multiple low, medium and high voltage applications, with GaN process nodes covering 15V to 1200V. Innoscience’s products are well-known for reliability, performance, and functionality in consumer, automotive, data center, and renewable energy sectors. For more information, please visit http://www.innoscience.com/.
Contact:
onsemi
Michael Mullaney
michael.mullaney@onsemi.com
+1 838-289-7314
FAQ
What did onsemi (ON) and Innoscience announce on December 2, 2025?
When does onsemi expect to begin sampling GaN devices under the collaboration (ON)?
How large is the GaN power market opportunity targeted by onsemi and Innoscience (ON)?
Which voltage range will onsemi and Innoscience initially target with their GaN devices (ON)?
What customer markets will benefit from the onsemi and Innoscience GaN collaboration (ON)?
Does the MoU between onsemi and Innoscience guarantee supply or revenue for shareholders (ON)?
