Transphorm closes JV transaction for acquisition of AFSW Wafer-Fab
Transphorm, a supplier of gallium nitride (GaN) power conversion products, has close of the transaction for the acquisition of 100% interest in the company’s AFSW wafer-fab facility by GaNovation, Transphorm’s recent joint venture with Palo Alto-based JCP Capital, a new strategic-financial partner.
This is a big step forward for Transphorm and its existing AFSW wafer-fabrication facility, previously a JV with Fujitsu Semiconductor Limited (FSL), located in Aizu Wakamatsu, Japan. The facility is a premier wafer manufacturing fab for high quality, reliable high voltage GaN power semiconductors.
The transaction completes the planned exit of Fujitsu Semiconductor from the AFSW fab. Transphorm’s effective stake in AFSW will be 25% (via its 25% ownership of GaNovation), down from its previous 49% stake. This will reduce Transphorm’s direct capital outlay for AFSW by approximately 50%, resulting in more efficient P&L, with investment in GaN technologies and applications. In addition, partnering with JCP Capital adds a significant strategic-financial partner for AFSW that has global strength in the GaN ecosystem.
“We are delighted to partner with Transphorm in AFSW, and its new parent entity GaNovation, a joint venture with Transphorm,” says David Cong, Founder and Managing Partner, JCP Capital, in a press release. “GaNovation will not only bring significant capital to AFSW, the world’s premier GaN power wafer fab, over the next several years to expand GaN wafer manufacturing, but also contribute to growing the GaN product business together with our portfolio ecosystem at a faster vector, especially in the area of GaN-based fast chargers and adapters.”
Primit Parikh, co-founder and President of Transphorm, adds, “The partnership with GaNovation and JCP Capital is the ideal next step in Transphorm’s rapid growth and manufacturing of its highest quality-highest reliability GaN wafers and products, continuing our asset-light vertically integrated model with strong IP dominance and protection. We also thank Fujitsu Semiconductor for its long-standing partnership as well as its commitment to assist in the successful transition of AFSW going forward.”