NXP to Exit 5G PA Market, Close US GaN Fab

Dutch semiconductor leader NXP has announced plans to phase out its 5G power amplifier (PA) product line and close its ECHO gallium nitride (GaN) wafer fab in Chandler, Arizona, by 2027.

NXP's RF power products have primarily served telecom infrastructure, providing high-performance power components for cellular base stations. However, the company cited limited return on investment from mobile operators and slower-than-expected global 5G base station deployment as key reasons for exiting the RF power segment.

The ECHO fab, which began operations in September 2020, was designed to produce GaN-based power amplifiers for 5G equipment. At launch, it was considered one of the most advanced fabs of its kind, following earlier generations of facilities producing silicon-based LDMOS PAs for 4G networks. NXP positioned GaN technology as a new benchmark for power density and efficiency in RF applications.

"NXP's RF business no longer aligns with our long-term strategy given current market conditions and the limited outlook for recovery," an NXP spokesperson said. "As a result, we have decided to gradually scale down our RF power product line."

The closure of the ECHO fab just five years after its opening marks a significant retreat from the 5G and RF power market for NXP. This shift may add pressure on telecom equipment makers, including Ericsson and Nokia, as they navigate component sourcing for next-generation networks.