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Transphorm Confirms Gallium Nitride Materials Sources Are Secure

Transphorm, Inc. (Nasdaq: TGAN)—a global leader in GaN power semiconductors, the future of next generation power systems—today responded to the recent news regarding China export restrictions.

Late Monday, July 3, 2023, China’s Ministry of Commerce stated that it will restrict the exports of materials related to two metals used in semiconductor manufacturing: gallium and germanium. Gallium nitride (GaN) wafer materials are listed as being affected by these regulations.

Transphorm manufactures high voltage GaN power semiconductors. Trimethylgallium (TMGa) is used to produce the GaN. The company confirmed that its primary TMGa suppliers are not based in China and that suppliers have confirmed to be well-positioned to meet forecasted demand. Transphorm is therefore securely positioned to continue manufacturing and supplying its GaN devices without interruption.

Transphorm also explained gallium is generally a byproduct resulting from refinement processes used to produce popular metals such as aluminum from bauxite ore. Aluminum is produced in numerous countries such as Australia, Brazil, India, Jamaica, and the United States among others.

Transphorm will continue to the monitor the situation as necessary but sees no direct impact on its current operations. Nor does the company see long-term sourcing issues.

About Transphorm

Transphorm, Inc., a global leader in the GaN revolution, designs and manufactures high performance and high reliability GaN semiconductors for high voltage power conversion applications. Having one of the largest Power GaN IP portfolios of more than 1,000 owned or licensed patents, Transphorm produces the industry’s first JEDEC and AEC-Q101 qualified high voltage GaN semiconductor devices. The Company’s vertically integrated device business model allows for innovation at every development stage: design, fabrication, device, and application support. Transphorm’s innovations move power electronics beyond the limitations of silicon to achieve over 99% efficiency, 50% more power density and 20% lower system cost. Transphorm is headquartered in Goleta, California and has manufacturing operations in Goleta and Aizu, Japan. For more information, please visit Follow us on Twitter @transphormusa and WeChat @ Transphorm_GaN.


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