GlobalFoundries Acquires Tagore Technology's GaN IP Portfolio

Introduction

GlobalFoundries Inc., a leading chipmaker, has recently acquired a portfolio of gallium nitride (GaN) power semiconductor intellectual property (IP) from Tagore Technology Inc. This strategic move is set to bolster GlobalFoundries’ power IP portfolio and enhance its capabilities in developing power-efficient semiconductors for various applications.

This acquisition is significant for a couple of reasons:

Efficiency in Power Management: GaN technology is known for its high-power density and efficiency, making it ideal for applications where reducing power consumption is crucial. This includes areas like automotive, Internet of Things (IoT) devices, and artificial intelligence (AI) data centers .

Boost for GaN Manufacturing: The acquisition combines Tagore’s GaN IP expertise with GF’s manufacturing capabilities. This could lead to large-scale GaN production, driven in part by the $1.5 billion funding GF received under the CHIPS and Science Act.

The acquisition, announced on July 1, 2024, underscores GlobalFoundries’ commitment to advancing GaN technology and addressing the increasing demand for power-efficient solutions.

Background on GlobalFoundries

GlobalFoundries, founded in 2009, is one of the world’s leading semiconductor manufacturers. Originally part of Advanced Micro Devices (AMD), GlobalFoundries was spun off to focus on semiconductor manufacturing and foundry services.

Over the years, the company has grown to become a significant player in the semiconductor industry, providing advanced fabrication technologies to a diverse range of customers.

GlobalFoundries has established itself as a key partner for many technology companies, offering a wide array of semiconductor solutions.

The company’s strategic initiatives include expanding its technology portfolio, enhancing manufacturing capabilities, and investing in next-generation semiconductor technologies.

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Background on Tagore Technology

Tagore Technology, founded in January 2011, is a pioneer in developing Gallium Nitride-on-Silicon (GaN-on-Si) and GaN-Silicon Carbide (GaN-SiC) semiconductor technology.

With an engineering base in Kolkata, India, Tagore Technology has focused on innovating in the fields of radio frequency (RF) and power management applications.

The company’s solutions have been at the forefront of GaN technology, making it a notable player in the semiconductor industry.

Tagore’s expertise in GaN technology has enabled it to develop disruptive solutions for a wide range of power devices.

The company’s innovative approach and engineering capabilities have positioned it as a valuable acquisition target for GlobalFoundries.

Why GaN Technology Matters

GaN technology is pivotal for power applications due to its superior performance characteristics compared to traditional silicon-based semiconductors.

GaN semiconductors offer higher efficiency, faster switching speeds, and greater thermal conductivity, making them ideal for power applications in automotive, Internet of Things (IoT), and artificial intelligence (AI) data centers.

The adoption of GaN technology is expected to revolutionize power delivery systems, providing more efficient and compact solutions.

Strategic Implications for GlobalFoundries

The acquisition of Tagore’s GaN IP portfolio is a strategic move for GlobalFoundries. It aligns with their goal of expanding power IP offerings.

By incorporating Tagore’s GaN technology, GlobalFoundries can enhance its product lineup. This will help meet the growing demand for power-efficient semiconductors.

The acquisition also includes a GaN engineering team from Tagore. This will further strengthen GlobalFoundries’ expertise. It will accelerate the development of innovative GaN-based solutions.

Statements from Key Stakeholders

Amitava Das, co-founder and COO of Tagore Technology, expressed enthusiasm about the acquisition. “The demand for power-efficient semiconductors is rapidly increasing,” he said.

“Tagore has been at the forefront of developing disruptive GaN technology for various power devices. The team and I are excited to join GlobalFoundries. This move allows us to focus on market-leading IP. We aim to address power design challenges and support the evolution of automotive, industrial, and AI datacenter power systems.”
Amitava Das, co-founder and COO of Tagore Technology

Supporting U.S. Semiconductor Manufacturing

In February 2024, GlobalFoundries was awarded $1.5 billion in direct funding under the U.S. CHIPS and Science Act.

This investment aims to enable high-volume manufacturing of critical technologies, including GaN, to securely produce essential chips. The acquisition of Tagore’s GaN IP portfolio aligns with this initiative, positioning GlobalFoundries to leverage the funding to enhance its manufacturing capabilities and support the U.S. semiconductor industry’s growth.

Future Prospects and Market Impact

The integration of Tagore’s GaN technology into GlobalFoundries’ operations is expected to have significant market implications.

By enhancing its power IP portfolio, GlobalFoundries can cater to the increasing demand for power-efficient solutions in key industries such as automotive, IoT, and AI data centers.

The acquisition positions GlobalFoundries as a leader in GaN technology, offering innovative solutions that address the evolving needs of the semiconductor market.

Related Developments in the GaN Market

The acquisition of Tagore’s GaN IP portfolio is part of a broader trend in the semiconductor industry. Other notable developments include:

US$35 million investment in 200mm GaN-on-silicon at GlobalFoundries: This investment aims to enhance GlobalFoundries’ GaN manufacturing capabilities and support the production of high-performance GaN semiconductors.
SK Keyfoundry’s GaN market entry: SK Keyfoundry is preparing to enter the GaN market, highlighting the growing interest and competition in GaN technology.
Innoscience’s patent dispute with Infineon: Innoscience has requested the United States Patent and Trademark Office (USPTO) to invalidate Infineon’s GaN patent, indicating the competitive landscape and the importance of IP in the GaN market.

Conclusion

GlobalFoundries’ acquisition of Tagore Technology’s GaN IP portfolio marks a significant milestone in its strategic expansion in power semiconductor technology.

By incorporating Tagore’s innovative GaN solutions, GlobalFoundries can meet the growing demand for power-efficient semiconductors.

This acquisition drives technological advancements in key industries. It strengthens GlobalFoundries’ competitive edge.

Additionally, it contributes to the broader goal of enhancing the U.S. semiconductor manufacturing ecosystem.