Why 200mm Fabs Still Matter in the AI Age—And Who’s Leading the Charge

When people talk about AI infrastructure, the spotlight usually goes to the high-performance stuff: NVIDIA H100s, 3nm chiplets, GPUs, TPUs, mega data centers training trillion-parameter models. That’s the flashy part. 

But there’s an older, quieter workhorse sitting behind the scenes, and it’s still doing a ton of heavy lifting: 200mm fabs. 

These mature-node factories—producing chips on 180nm, 130nm, even 65nm—aren’t powering the AI models themselves, but they are powering everything around them. From edge devices and power regulation to connectivity and control systems, 200mm is where a lot of the supporting infrastructure lives. 

 So what do 200mm fabs actually make? 

• Power Management ICs: Crucial for keeping AI servers and edge devices running reliably and efficiently. 
• Signal and Interface Chips: For connecting AI hardware to sensors, storage, and networks. 
• Analog, RF, and Mixed-Signal Components: Used in edge AI applications—drones, robotics, industrial sensors, automotive AI systems, and more. 

If AI is the engine, these chips are the brakes, transmission, and fuel lines. No one notices them until they’re missing—and then nothing works. 

Who’s building these critical components? 

A mix of foundries and IDMs (integrated device manufacturers) are keeping the 200mm ecosystem alive—and they’re becoming increasingly strategic in both the AI era and U.S. economic security. 

GlobalFoundries 

• Operates major 200mm capacity in Vermont and New York. 

• Supplies analog, RF, and power chips across AI, automotive, and defense sectors. 

• One of the few U.S.-based pure-play foundries with scalable mature-node capacity. 

Tower Semiconductor 

• Israel-based but with a key 200mm fab in San Antonio, Texas. 

• Specializes in analog, power management, silicon photonics—essential for edge and industrial AI. 

• Recently announced a $350M investment to expand 200mm/300mm capabilities. 

Wolfspeed  

• A global leader in silicon carbide (SiC) power devices. 

• Transitioning from 150mm to 200mm SiC wafer production at its Mohawk Valley Fab in New York. 

• Powers high-efficiency energy systems critical for AI data center power delivery and electric vehicles—two areas converging rapidly in next-gen infrastructure. 

SkyWater Technology 

• A U.S.-owned foundry operating a trusted 200mm fab in Minnesota. 

• Recently announced acquisition of Infineon Technologies Austin, TX fab 

• Works closely with the U.S. government and defense contractors. 

• Plays a growing role in secure semiconductor supply chains and specialty packaging. 

Analog Devices (ADI) 

• Not a pure-play foundry, but a leading IDM with deep expertise in analog, RF, and mixed-signal chips. 

• Manufactures a significant portion of its products on 200mm wafers, including sensors and signal chains critical to AI edge applications. 

• Operates fabs in Massachusetts and Oregon and has invested in domestic expansion to support industrial and AI-focused applications. 

TSMC and United Microelectronics Corporation (UMC)  

• Taiwan-based giants still operating some 200mm capacity, although their focus is shifting to 300mm and advanced nodes. 

• Continue to play a role in the global supply of legacy analog and support chips. 

 The Strategic Angle: Why the U.S. Should Care 

Most of the global 200mm capacity is offshore, especially in Taiwan, China, and Japan. That’s a big deal when you realize how many AI systems—particularly in defense, AI hardware, industrial, and automotive—still rely on these older chips. 

What happens if geopolitical tensions choke 200mm wafer supply? We could face bottlenecks not just in AI innovation, but in the infrastructure that supports it along with a myriad of other critical industries supporting national security. 

Re-shoring and investing in 200mm capacity is low-cost and high-impact. It’s not about catching up to the bleeding edge—it’s about fortifying the foundation. 

 Bottom Line 

AI runs on the latest and greatest chips—but it relies on the old ones for essential functionality. The 200mm ecosystem isn’t just legacy—it’s critical. And the players who get that—GlobalFoundries, Tower, SkyWater, X-Fab, Microchip, Qorvo, Wolfspeed, Analog Devices—are quietly becoming some of the most important names in U.S. semiconductor strategy. 

AI is sexy. 200mm foundries aren't. But try scaling AI without it.