The International Energy Agency forecasts that data center energy consumption will double by 2030[1], making energy efficiency improvements a critical need. The data center power semiconductor market is projected to grow at a compound annual growth rate (CAGR) of 11.0%, reaching global sales of US$4.29 billion by 2032[2], while ResearchandMarkets.com has forecast that the electric vehicle (EV) traction inverter market will grow at a CAGR of 16.1% and reach global sales of US$67.6 billion by 2034 [3].
This new long-term collaboration will enable NXP to develop GaN-based system solutions, leveraging CGD's advanced GaN products, early access to CGD's next-generation GaN developments, and the team's extensive experience in GaN processes and technologies. At the same time, CGD will benefit from access to NXP's broad portfolio of processors and analog products, its systems expertise, and its global commercial reach, accelerating market penetration through optimized, system-level solutions.
Fabio Necco | Managing Director, CGD
“By working closely with NXP, we are accelerating the shift to a new class of GaN-based power electronics. This collaboration involves leveraging the performance of GaN to increase efficiency, power density, and reliability in real-world data center and automotive systems, where performance, cost, and sustainability must now go hand in hand.”
Chris Bretz | Vice President of Advanced Power Systems, NXP
: “CGD combines advanced GaN innovation with practical and scalable power solutions, delivering superior system-level robustness, reliability, and performance. With deep device expertise and strong technical knowledge, CGD is an ideal long-term partner for NXP to accelerate the adoption of high-efficiency GaN in high-growth markets.”
GaN semiconductors allow switching at higher frequencies and achieve greater efficiency compared to competing technologies.
The rapid increase in energy demand in data centers is largely due to the growing use of AI. A single rack might have consumed only 40 kW in 2022, but today it can consume 200 kW or more, and a single rack is expected to require 1 MW or more by 2030. The increasing compute density and modern power architectures impose stringent requirements for power density and the need to deliver high voltage buck ratios while maintaining energy efficiency. ICeGaN is uniquely positioned to meet these requirements, as it enables higher switching frequencies, greater power density, and offers superior reliability compared to discrete GaN solutions.
In automotive traction inverters, GaN can improve low-load efficiency. CGD's ICeGaN technology is the only single-chip GaN-based technology that works with a standard controller and allows for the parallel connection of multiple devices to meet the high-current requirements of traction inverters.
The intellectual property and complementary skill sets of both companies will enable them to offer system-level solutions with a unique differentiation to customers exploring the advantages of GaN devices in these two important markets.
[1] International Energy Agency (IEA) (2025), Energy and AI, IEA, Paris https://www.iea.org/reports/energy-and-ai, License: CC BY 4.0
[2] Data Center Power Semiconductor Market Size, Share and Growth Report 2032
[3] ResearchandMarkets.com (2025), Traction Inverter Market Outlook 2025-2034: Market Share and Growth Analysis by Propulsion (Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Other Propulsions), by Technology and by Vehicle Type.
