NXP Semiconductors Inc. plans to cease production of its radio power product line and close its radio frequency gallium nitride fab in Chandler by 2027, the Dutch global semiconductor manufacturer said Wednesday.
NXP’s (Nasdaq: NXPI) radio power product line primarily serves the telecommunications infrastructure sector, supplying RF power components for cellular base stations. However, a lack of return on investment for mobile operators and understated global 5G base station deployments led to NXP’s decision to exit the radio power market and scale down operations at its ECHO GaN fab in Chandler, a company spokesperson told the Business Journal.
NXP’s ECHO fab manufactures power amplifiers for 5G equipment based on gallium nitride chips.
“Given the market realities with no outlook for recovery, the RP business no longer fits into the company’s long-term strategic direction,” an NXP spokesperson said. “Therefore, NXP has made the decision to ramp down its radio power product line.”
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