Driven by vertical integration mode and profit margin, global GaN fab mergers and acquisitions are in the ascendant.
According to (businesswire), a leading supplier of high-reliability and high-performance gallium nitride (GaN) power conversion products, Transphorm announced that it has successfully acquired the 100% interest in AFSW fab.
AFSW fab located in Huizu Ruosong, Japan
The deal marks an important step forward for Transphorm and AFSW fab, a former joint venture with Fujitsu Semiconductor Co., Ltd. (FSL) in Aizumatsu, Japan, and the world's leading high voltage GaN power semiconductor wafer fabrication facility.
According to an official announcement from Transphorm, the transaction was completed through GaNovation, a recent joint venture between Transphorm and JCP Capital.
Fujitsu Semiconductor reportedly announced its withdrawal from the AFSW fab after the deal was completed.
Upon completion of the acquisition, Transphorm's actual stake in AFSW will be 25 per cent, down from 49 per cent. This will reduce Transphorm's direct capital expenditure on AFSW by about 50%, thereby achieving a more efficient profit or loss through investment in GaN technology and applications.
In addition, the cooperation with JCP Capital adds an important strategic financial partner to AFSW, and this transition enables seamless convergence of mergers and acquisitions for Transphorm customers and the existing team and operations of AFSW fab. "We are pleased to work with AFSW's Transphorm and its new parent company, GaNovation," said David Cong, founder and managing partner of JCP Capital. "over the next few years, GaNovation will not only bring significant capital to AFSW, the world's leading GaN power fab, to expand GaN wafer manufacturing, but will also help develop GaN products faster with our portfolio ecosystem, especially in GaN-based fast chargers and adapters."
Primit Parikh, co-founder and president of Transphorm, said, "the partnership with GaNovation and JCP Capital is an ideal vision for Transphorm to produce its highest quality and highest reliability GaN wafers, expanding the strong IP advantage of our vertical light assets. Fujitsu Semiconductor (FSL) and AFSW have been working closely with Transphorm and JCP Capital teams, and Transphorm's outstanding performance in GaN, coupled with the financial strength brought by JCP Capital, is the driving force behind AFSW's continued success.
Kagemasa Magaribuchi, president and representative director of FSL, commented: "FSL will also continue to cooperate with AFSW through transitional services within the agreed time."
Transphorm is a GaN semiconductor company specializing in the design and manufacture of high performance and high reliability for high voltage power conversion applications. Transphorm has more than 1000 licensed patents in this field and has produced the industry's first high voltage GaN semiconductor device that complies with JEDEC and AEC-Q101 standards.
