The acquisition of Transphorm by Renesas integrates GaN technology for advanced power semiconductors, targeting electric vehicles, AI, renewable energy, and other key sectors.
Renesas Electronics Corporation have agreed on a deal where Renesas will purchase all outstanding shares of Transphorm at $5.10 each in cash. This price is significantly higher than Transphorm’s recent share values, placing the company’s value at about $339 million. The acquisition allows Renesas to integrate GaN technology, crucial for next-generation power semiconductors, thereby enhancing its presence in rapidly growing markets like electric vehicles, data centres, AI, renewable energy, and industrial power conversion.
The demand for efficient power systems is rising as a key element for achieving carbon neutrality, leading to a shift towards wide bandgap (WBG) materials like silicon carbide (SiC) and GaN. These materials offer a more comprehensive range of voltage and switching frequencies than traditional silicon-based devices. Building on this trend, the company is setting up an in-house SiC production line and has secured a decade-long SiC wafer supply.
With the acquisition of Transphorm, the company aims to augment its WBG portfolio, capitalising on GaN’s advantages of higher switching frequencies, reduced power losses, and compact design. This acquisition is expected to meet the increasing demand for GaN, which is forecasted to grow significantly each year. The company plans to leverage Transphorm’s auto-qualified GaN technology to develop advanced power solutions, including multifunctional powertrain solutions for electric vehicles and applications in computing, energy, industrial, and consumer sectors.
“Transphorm is a company uniquely led by a seasoned team rooted in GaN power and with origins from the University of California at Santa Barbara,” said Hidetoshi Shibata, CEO of Renesas.
“Combined with Renesas’ worldwide footprint, breadth of solution offerings and customer relationships, we are excited to pave the way for industry-wide adoption of WBG materials and set the stage for significant growth. This transaction will also allow us to offer further expanded services to our customers and deliver significant immediate cash value to our stockholders,” said Dr. Primit Parikh, Co-founder, President and CEO of Transphorm and Dr. Umesh Mishra, Co-founder and CTO of Transphorm.