Gallium nitride.
GaN wins, prices fall.

Innoscience shipped 547 million gallium nitride chips in the first half of 2026 and made an 11.6% gross margin doing it. That's what winning looks like in GaN right now.

Gallium nitride, or GaN, is a semiconductor material that switches power faster than ordinary silicon and wastes less of it as heat. Its first hit was the tiny laptop charger. The big prize now is the AI data center, where Nvidia is moving its racks to 800-volt DC power, with full-scale production pegged to 2027. Every step that power takes down to the roughly one volt a GPU actually runs on is a conversion, and GaN is very good at the middle and lower steps. (Silicon carbide, its tougher cousin, still owns most of the highest-voltage work.)

So the material is winning, and the volume is real. But the price is falling fast enough that winning doesn't automatically pay, and the market has sorted its GaN names accordingly. The big diversified chipmakers with GaN lines have had a huge 2026 on AI power, with STMicroelectronics more than doubling. The pure-play gallium nitride stocks have had a rougher ride. Innoscience is down about half this year even as its revenue grew by half, and Navitas, the stock most people mean when they say "GaN," sits about 60% below its May peak.

GaN will win sockets in AI racks. For gallium nitride stocks, the 2027 question is who keeps the margin once it does, so the list is sorted by how each company handles a falling price: the ones setting it, the ones moving up in voltage to escape it, the ones selling a whole system around it, the factories picking up the work TSMC is walking away from, and two private companies with their own way out.

These three are driving the price down, and they can afford to.

Innoscience HKEX: 2577

Innoscience is the scale player. It makes GaN on 8-inch wafers in its own fabs in China and ships it by the hundreds of millions.

Its mix is moving into the expensive end of the market fast. AI and data center shipments rose 183% in the first half, its parts are designed in at more than 20 cloud providers, and it signed a supply agreement covering Google's AI hardware. Revenue grew 51% while the loss narrowed, and operating cash flow turned positive for the first time.

But that 11.6% gross margin is the number every other company on this list is pricing against. Innoscience doesn't need fat margins to keep growing, and that is exactly the problem for anyone who does.

Infineon Technologies FSE: IFX

Infineon Technologies is the world's biggest power chipmaker, and it's making GaN on 300mm wafers, the same size used for the most advanced silicon. That yields about 2.3 times as many chips per wafer as 200mm. Infineon's stated goal is cost parity with silicon.

That would be great for GaN adoption and rough on anyone whose business depends on GaN staying special. Infineon sells silicon, silicon carbide and GaN, so it doesn't care which one the customer picks. Its AI power revenue is on track for more than €1.6 billion this fiscal year.

STMicroelectronics NYSE: STM

STMicroelectronics put a family of 700-volt GaN transistors into production in May and published the price: 63 cents to $2.25 each in thousand-unit lots.

That's what commoditization looks like when it's written down. A company ST's size can price GaN like any other line in a huge catalog and make it up on volume and on everything else it sells into the same rack. ST is also one of Nvidia's named partners for 800-volt power.

GaN gets crowded at low voltage. These two are pushing it higher, into territory silicon carbide owns and prices are still healthy.

Power Integrations NASDAQ: POWI

Power Integrations is a high-voltage power specialist, and it's quietly breaking the rule that GaN is only for lower voltages. In August it demonstrated a 2,200-volt GaN device. Its 1,700-volt parts are already being designed into data center auxiliary power, and it's pitching 1,250-volt GaN for the main 800-volt path.

Every one of those is a job silicon carbide expected to keep. If GaN can do it reliably at a lower cost, Power Integrations gets to sell into a market where it's the new entrant, not one more face in a crowd.

onsemi NASDAQ: ON

onsemi is one of the biggest silicon carbide makers in the world, and it's building the technology most likely to eat it. Vertical GaN runs current straight down through the chip instead of across its surface, which lets GaN handle much higher voltages. onsemi is sampling 700-volt and 1,200-volt vertical GaN parts to early customers.

It's a hedge with real upside. If vertical GaN works at scale, onsemi owns both sides of the fight. If it doesn't, its silicon carbide business is still there.

When the transistor gets cheap, sell everything around it. These companies sell the whole power path, with GaN as one part of the bill. They're the gallium nitride stocks least exposed to the price fight.

Texas Instruments NASDAQ: TXN

Texas Instruments shows the right way to make money from GaN: don't sell it on its own.

In March, TI laid out a complete 800-volt power architecture built around Nvidia's reference design. Its converter, which steps 800 volts down to 6, uses TI's own integrated GaN power stages and hits 97.6% peak efficiency. GaN is inside the board. TI sells the controllers, the isolation, the analog parts and the GaN together, so the price of any one transistor barely matters.

Renesas Electronics TSE: 6723

Renesas Electronics has spent two years assembling a full GaN lineup. It bought Transphorm in 2024 for high-voltage GaN. In February it licensed low-voltage GaN technology from EPC and agreed to second-source EPC's parts.

That gives Renesas GaN across the voltage range, and it already sells the microcontrollers, drivers and power-management chips that sit next to it. A customer designing a power system can get almost the whole thing from one supplier, which is a stronger position than having the best transistor.

Navitas Semiconductor NASDAQ: NVTS

Navitas Semiconductor is the market's favorite way to trade GaN. It jumped 164% in one day in May 2025 when Nvidia named it a partner for 800-volt racks, and it has moved with every AI power headline since.

The business underneath is still small, $10.5 million of revenue last quarter. Management has walked away from phone chargers to chase AI data centers and grid power. It's trying to escape the transistor price fight by buying Claros, which makes power-delivery chips that sit right next to the processor. That deal is expected to close by year-end.

This is a pivot story, and the execution risk is the thesis. Navitas is shifting revenue, buying a company and changing fabs at the same time, because TSMC, its longtime GaN supplier, is leaving the business.

TSMC said in July 2025 that it will stop making GaN by July 2027. When the world's biggest foundry walks away from a market, someone else gets the work.

GlobalFoundries NASDAQ: GFS

GlobalFoundries licensed TSMC's 650-volt and 80-volt GaN technology last November and is bringing it up at its plant in Burlington, Vermont. That's the obvious landing spot for TSMC's stranded GaN customers, and it's a U.S. fab at a time when that counts for something.

Navitas's first wafers from the line were due to ship in September, and onsemi is developing its 650-volt GaN there too. GF will never be a pure GaN stock. It doesn't need to be to collect the work.

ROHM TSE: 6963

ROHM has relied on TSMC as its GaN partner. Instead of hunting for another foundry when TSMC leaves, it licensed TSMC's 650-volt GaN process and is moving production into its own plant at ROHM Hamamatsu, targeting 2027.

In a market where price keeps falling, owning your own production is how you keep cost under control. ROHM's GaN already sits inside AI server power supplies, and in 2027 it will control the supply of it.

Two private companies with their own way around the price fight.

Efficient Power Conversion (Private)

Efficient Power Conversion pioneered the low-voltage GaN used in AI server power, robotics and motor drives. Its smartest move in 2026 was a business-model decision, not a product. Licensing its technology to Renesas, and letting Renesas second-source its parts, turns EPC's engineering into licensing income while somebody else carries the factory and the sales force.

VisIC Technologies (Private)

VisIC Technologies is going after the main inverter in an electric car, the part that drives the motor. It's one of the biggest power-chip sockets in the world, and silicon carbide owns it today.

Hyundai and Kia joined its latest funding round as strategic investors. Those are the customers whose platforms would decide whether GaN gets into drivetrains at volume. It's early, and it's a qualification game that takes years. But it's the one place on this list where GaN would be opening a new market rather than fighting over an existing one.

Everyone watching GaN in AI is watching the 800-volt end of the rack. The bigger opportunity is at the one-volt end.

High-voltage conversion happens a few times per rack. The final step, the one that feeds the processor directly, happens dozens of times on every accelerator board. That's where the unit volume is, and where every fraction of a percent of efficiency turns into heat that doesn't have to be cooled away. Today that job runs mostly on silicon.

That's why the most interesting deals of the year happened at low voltage: Renesas licensing EPC's technology, and Navitas buying a company whose chips sit right beside the processor. If low-voltage GaN gets cheap enough to replace silicon right next to the GPU, the falling price stops being a problem for gallium nitride stocks. It becomes the reason GaN wins the biggest socket in the rack.