STMicroelectronics NV (NYSE:STM) and Innoscience have formed a strategic partnership to develop and manufacture gallium nitride (GaN) technology, a key component for next-generation power electronics.

The collaboration announced on Monday aims to strengthen GaN power solutions for applications in artificial intelligence (AI) data centers, renewable energy systems, electric vehicles, and more.

GaN power devices deliver higher efficiency, a smaller footprint, and reduced energy dissipation compared to conventional silicon-based counterparts.

These advantages make them well-suited for use in AI data centers, consumer gadgets, solar inverters, and industrial power systems.

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Also, the technology is becoming increasingly popular in electric vehicle powertrains, as it helps minimize weight and size while enhancing overall performance.

“GaN technology is essential to improve electronics, creating smaller and more efficient systems which save electric power, lower cost, and reduce CO2 Emissions. Innoscience pioneered mass production of 8-inch GaN technology and has shipped over 1 billion GaN devices into multiple markets, and we are very excited to move into strategic collaboration with ST,” said Chairman and Founder of Innoscience, Weiwei Luo.

The partnership will allow Innoscience to make use of STMicroelectronics’ manufacturing sites in Europe for producing GaN wafers, while STMicroelectronics can tap into Innoscience's front-end fabrication facilities in China.

This mutual access is expected to strengthen supply chain adaptability and reliability. By capitalizing on their respective expertise, the combination seeks to maintain a steady and secure supply of GaN power solutions.

Price Action: STM shares traded lower by 1.68% at $21.59 in premarket at last check Tuesday.

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