What Navitas Semiconductor Corp. told the SEC could break it.

Navitas's GaN power-IC wafers are fabricated in Taiwan (TSMC), and a significant amount of its assembly and test operations are conducted by third-party contractors in Taiwan and the Philippines — concentrating its manufacturing supply chain in geopolitically sensitive Asian locations.

“wafers for GaN power ICs, are located in Taiwan. A significant amount of the Company's assembly and test operations are conducted by third-party contractors in Taiwan and the Philippines.”

Navitas has historically relied on TSMC as its sole supplier of gallium nitride (GaN) wafers, a key component; on July 1, 2025 TSMC announced it will cease GaN production in July 2027, forcing Navitas to qualify alternate GaN foundry capacity (it is buying buffer inventory and expanding other collaborations).

“we have historically relied on Taiwan Semiconductor Manufacturing Company Limited (“TSMC”) as our sole supplier of gallium nitride (“GaN”) wafers, a key component in our product offerings. On July 1, 2025, TSMC announced its intention to cease GaN production in July 2027.”

Navitas is exposed to escalating U.S.–China trade policy: further U.S. trade actions could trigger retaliatory tariffs and a semiconductor-focused trade war, and new U.S. regulations restricting outbound investment in China (plus CFIUS review risk) could adversely affect its business.

“Any further changes in United States trade policy could trigger retaliatory actions by affected countries, including China, resulting in trade wars. A trade war, particularly one involving semiconductor products and technologies, could adversely affect our financial condition and results of operations. Our business is affected by new U.S. government regulations restricting outbound investments in China.”

Gallium is the fundamental input for Navitas's GaN power ICs (each contains ~95 micrograms); produced as a byproduct of aluminum refining, gallium is subject to China export-control concerns, though Navitas states global capacity is diverse/growing and its own consumption is a negligible share of demand (<0.01%).

“Global gallium production capacity exceeds 2,000 tons annually and is growing approximately 15% per year, sourced from geographically diverse regions. Semiconductor applications—including power electronics, LEDs, and high-speed logic—represent 98% of commercial gallium demand.”