Commercialising GaN

Transphorm has won $70m to bring GaN to mainstream markets. President, Primit Parikh, reveals his plans.

Following hefty funding, Transphorm intends to deliver GaN power modules to high-tech markets aroung the world.

Late last month, California-based developer of GaN-based power conversion chips, Transphorm, received a hefty $70 million in funding from its latest investment round, led by global investment firm, KKR.

Known for its aggressive buyouts, KKR has a strong track history in the semiconductor industry. In 2005, alongside US private equity firm, Silver Lake Partners, it acquired Agilent's Semiconductor Products group, now Avago, for $2.66 billion.

And in 2006, it was part of a massive leverage buyout, when it invested in ex-Philips semiconductor division, NXP Semiconductor.

For Transphorm, this latest industry investment brings much-awaited change. As president and co-founder Primit Parikh highlights: "We have KKRs large financial stability as well as its deep semiconductor expertise."

"We can leverage this with our GaN technology, IP and team; this combination is something we are very excited about," he adds.

With KKR executives having now joined Transphorm's board of directors, the management team will focus on ramping up manufacturing. The company already has strong ties with key Japan-based industry heavyweights.

Fujitsu Semiconductor - with its minority equity position in Transphorm -  mass produces the company's power modules on its automotive-class wafer fab while Yaskawa Electric provides PV inverters, based on the very same modules, to Japanese markets.

Last year, the company also joined forces with India-based Tata Power Solar to develop PV inverters, and will now be looking to increase its presence in Japan and India, as well as Greater China, US and Europe.

"From here we are now going to go to full-scale, expanding our customer base worldwide," says Parikh. "We've very excited about the PV market in India and the US... and would like to see our finished solar inverter in the US market."

The plans are bold, but is the market ready for more GaN-based devices? Parikh thinks so.

As he asserts, he and colleagues have now spent three years proving GaN power semiconductor reliability and lifetimes.

The company's GaN-on-silicon diodes and transistors were JEDEC qualified two years ago and it has since demonstrated a high voltage off-state lifetime of more than 10 million hours, at 600V, with the very same chips.

"GaN is reliable, which is why we are getting traction from our customers in different market segments," says Parikh. "The technology is ready to take the next step into the mainstream, so this timing with KKR could not be better."

"We are very well positioned to [expand] in the next couple of years and this is a great launching pad," he adds.

Industry support

Parikh isn't alone in his conviction of GaN, and of course his company's ability to deliver. In a recent media report, blue laser diode pioneer and Nobel Laureate, Shuji Nakamura, said: "My invention of the GaN-based LED... has changed the world in illumination."

"Transphorm is the leading company producing GaN-based power conversion products that will have the same positive impact on energy that we saw with LED-based lighting," he added.

And David Kerko, senior advisor to KKR, is equally confident. "Right now, Transphorm is the only place where customers can acquire reliable production volume GaN products that meet or exceed required performance specifications for commercial products," he says

"Long term, we believe [GaN] has the potential to replace all of the existing silicon-based technology used in high voltage products," he adds.

Indeed, Transphorm aside, investment in GaN-based companies has, so far this year, flourished.

In May this year, fabless developer of GaN-based power switching semiconductors, GaN Systems, Canada, raised $20 million in its latest funding round to ramp up sales and marketing worldwide, and expand manufacturing.

And just last month, Leti and Soitec spinout, Exagan, France, won a little over $6 million in its first round of financing, to produce high-speed switching devices on 200 mm wafers.

So, even in the short-term, the future for GaN, and of course, Transphorm, looks bright as commercial activity gathers pace. To date, the company has garnered a grand total of $190 million in investment funds, with the immediate outlet for its power products being PV inverters.

However, Parikh believes data communications and telecom power supplies markets will come next, with non-critical automotive applications, such as air conditioning supplies, following.

"People are realising that GaN is here to stay and investors are investing in it," says Parikh. "Our goal has always been for the GaN field to expand and then for Transphorm to dominate in that field."

"These investments are good for GaN as a whole and we will work hard to maintain our leadership here," he adds.