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

On Wednesday, Dutch chipmaker NXP Semiconductors said it plans to wind down its 5G power amplifier (PA) business by 2027 and shut its RF gallium nitride (GaN) fab in Chandler, Arizona, marking a major pullback from the wireless power market.

NXP's RF power portfolio has mainly focused on telecom infrastructure, supplying high-power RF components used in cellular base stations. However, the company said weak returns on investment for mobile operators and slower-than-expected global 5G base station rollouts have reshaped the market outlook.

According to an NXP spokesperson, these conditions led the company to decide that RF power no longer fits its long-term strategy. As a result, NXP will gradually scale down operations at its Chandler-based ECHO GaN fab and exit the 5G PA segment entirely.

The ECHO fab, which began operations in September 2020 at the height of early 5G momentum, was designed to produce GaN-based power amplifiers for next-generation wireless equipment. At the time, NXP described the facility as one of the most advanced of its kind. Before GaN, much of the industry relied on silicon-based LDMOS technology, which had long been the workhorse for 4G-era power amplifiers.

GaN was positioned as the new benchmark for higher power density and efficiency in 5G systems. Yet just five years after its launch, the ECHO fab is now heading toward closure, reflecting how quickly expectations around 5G infrastructure demand have shifted.

NXP's exit from 5G and RF power also narrows the field of available options for major network equipment makers such as Ericsson and Nokia, underscoring broader challenges facing the global 5G ecosystem as deployment momentum slows.