Sino-American Silicon Products invests in Transphorm
$15 Million Investment as part of a new strategic partnership to expand the companies’ supply chain in the fast-growing GaN market
Transphorm, a supplier of hi-rel GaN power products, and Sino-American Silicon Products, a Taiwanese green energy provider (and parent company to silicon wafer company GlobalWafers), are starting a strategic partnership to expand the companies’ supply chain in the fast-growing GaN market. SAS and GWC have a combined market capitalisation of more than $16 Billion.
In addition, SAS has made a $15 Million equity investment into Transphorm, which includes its initial $5 Million investment in Transphorm in August. The investment was through a private placement of Transphorm’s common stock at $5.00 per share.
Through the new strategic partnership, Transphorm plans to significantly enhance the supply chain for GaN epiwafers. The deal includes GWC becoming Transphorm’s manufacturing partner and supplier, captive for Transphorm’s GaN epiwafers, a move that will augment Transphorm’s internal capacity. Additionally, SAS will become a distributor for select Transphorm epiwafer products as well as power products, that will boost the growth of Transphorm’s GaN product sales.
Commenting on the announcement, Doris Hsu, Chairwoman and CEO, SAS/GWC said: “We are excited to become shareholders of Transphorm as we begin our new GaN strategic partnership. Transphorm is a proven GaN power and epi products leader with vertically integrated manufacturing and one of the strongest GaN power IP portfolios in the world. Our strategic partnership will enable Transphorm to scale at a faster pace,” Hsu continued, “The GaN power and RF markets represent a multi-billion-dollar opportunity with fast growing segments including fast chargers and adapters, server-storage-networking power, renewable energy and industrial power, electric vehicles as well as RF GaN electronic devices for 5G and variety of communication/infrastructure applications.”
Primit Parikh, co-founder and president of Transphorm, commented: “Transphorm is thrilled to partner with SAS/GWC, a recognized global leader in green energy and wafer manufacturing. This partnership will allow for our rapid expansion in the GaN market, with a multi-year growth plan to scale GaN epi-wafer manufacturing for Transphorm, while protecting our intellectual property.
"It will provide Transphorm’s customers – from compact high-speed fast charger to efficient higher power electric vehicles – the security of supply, multiple locations (including our core US manufacturing), and rapid expansion capability. SAS’ investment in Transphorm is a testament to our leading position in the fast-growing GaN market and brings the total of new equity capital raised recently by Transphorm to $33 million.”