Participated · Equity · Mar 2020

Transphorm, Inc. announced that it expects to receive $23 million in funding from KKR Phorm Investors L.P. and other investors. The company said it entered into a series of securities purchase agreements with nine accredited investors, including KKR Phorm Investors L.P. The agreements cover the sale of 4,600,000 shares. The financing is structured through those securities purchase agreements. The announcement identifies KKR Phorm Investors L.P. by name and refers to eight additional accredited investors without naming them. No further transaction terms were provided in the text. Transphorm develops and sells high-voltage GaN semiconductor families that serve as building blocks for power converters and inverters. Its GaN products switch faster than silicon, offering higher efficiency, greater system power density and reduced system size. The company highlights JEDEC and AEC‑Q101 qualifications and a large IP portfolio, positioning its devices as high‑quality, high‑reliability solutions. Transphorm cites customer adoption across power adapters/fast chargers, data‑center power supplies, communications infrastructure, industrial applications and growing interest from automotive EV suppliers. Management says the company will use new equity financing to support and accelerate product development, manufacturing, and sales of its GaN power solutions. The company operates a vertically integrated device business model covering epitaxy, design, process and application support. Market commentary in the release cites an accessible GaN TAM of approximately $3.1 billion in 2024 and an external Yole Développement estimate that GaN power device revenues may approach $400 million by 2023. Transphorm is a global semiconductor company leading the GaN revolution with highest-performance, highest-reliability 650V GaN devices for high-voltage power conversion applications. The company deploys a vertically integrated business approach covering design, fabrication, device and application support and claims an IP portfolio of over 600 patents. Transphorm produces the industry’s only JEDEC- and AEC-Q101-qualified GaN FETs and positions its technology to deliver over 99% efficiency, 40% more power density and 20% lower system cost versus silicon. Target markets include servo motors, automotive systems, data center and industrial power supplies, renewable energy, and other broad industrial applications. Transphorm recently received a $15 million investment from Yaskawa Electric and intends to allocate the funds to various areas of its GaN product development. The company’s technology has been co-developed with Yaskawa, whose integrated Σ-7 F servo motor relies on Transphorm’s high-voltage GaN. Transphorm is an early-stage semiconductor company based in Goleta, Calif., focused on redefining electric power conversion using gallium nitride (GaN) devices and modules. Its core products are ultra-efficient GaN-based power devices and modules that the company says can eliminate more than 40% of electric conversion losses and achieve up to 98% efficiency in data center and telecom applications. Transphorm targets applications including PV inverters, data centers, power supplies, motor drives and automotive systems, and its technology enables roughly 50% smaller residential PV inverters up to 5 kW. The company has strategic partnerships with Yaskawa Electric and Tata Power Solar, and a manufacturing partnership with Fujitsu Semiconductor for production in an automotive-class wafer fab. Transphorm will use the new funding to support growth, product innovation and expansion. The article emphasizes Transphorm’s position as a source of production-volume GaN products that could replace silicon in high-voltage applications and reduce energy waste globally. Transphorm has developed GaN (gallium nitride) power-conversion technology and is the first company to commercialize high-voltage GaN for manufacturers and enterprises. Its core product is next-generation GaN power devices intended to reduce energy waste across applications from servers and solar panels to HVACs and hybrid vehicles. The company announced a strategic manufacturing alliance with Nihon Inter Electronics Company to mass-produce its next-generation GaN devices. Transphorm is pursuing commercialization and scaling of its technology, supported by strategic investors and manufacturing partners in Japan. Financially, the company has raised a total of $104 million to date and has just closed a $35 million Series E. The funding and alliances signal a strategic turn toward Japan and industrial-scale production.