Ideal Power Successfully Completes Qualification of Its Second High-Volume Wafer Fabrication Supplier

Rhea-AI Summary

Ideal Power (NASDAQ: IPWR) has successfully qualified a second high-volume wafer fabrication supplier in Europe for its B-TRAN™ bidirectional semiconductor power switch. This new supplier, alongside the existing one in Asia, mitigates supply chain risks by offering dual sourcing without exposure to China or Taiwan. The European fab completed a multi-wafer full process flow engineering run for double-sided B-TRAN™ wafers, achieving functionality without needing special equipment or capital investment. This milestone supports future revenue growth, with the capacity to meet anticipated customer demand over the next 2-3 years.

The European supplier has expertise in high-power, bipolar devices and is ISO 9001 and ISO 14001 certified, enhancing its credibility. Ideal Power's B-TRAN™ reduces power losses by 50% or more, generates less heat, and requires fewer components, providing a competitive advantage in bidirectional applications. These features are particularly beneficial as the industry shifts towards electrification and renewable energy.

Positive

• Qualified a second high-volume wafer fabrication supplier in Europe.
• Mitigates supply chain risks with dual sourcing from different geographies.
• European supplier completed multi-wafer full process flow engineering run successfully.
• No special equipment or capital investment needed for the European fab.
• Supplier has expertise in high-power, bipolar devices.
• ISO 9001 and ISO 14001 certified supplier.
• B-TRAN™ reduces power losses by 50% or more.
• B-TRAN™ generates less heat, lowering thermal management requirements.
• B-TRAN™ requires 75% fewer components compared to conventional switches.
• Capacity to support customer demand over the next 2-3 years.

Negative

• No exposure to China or Taiwan, which could be a missed opportunity for cost-effective manufacturing.
• Potential dependency on European supplier's capacity and reliability.

Tech Expert

The qualification of a second high-volume wafer fabrication supplier marks a significant advancement for Ideal Power. By diversifying their fabrication sources, the company mitigates supply chain risks, especially given the current geopolitical tensions that could disrupt suppliers in Asia. This strategic move towards European manufacturing not only enhances reliability but also aligns with global supply chain trends aimed at reducing dependency on a single region.

Ideal Power’s B-TRAN™ technology stands out for its efficiency. By reducing power losses by over 50% compared to conventional switches, it significantly lowers thermal management needs. For context, semiconductor devices typically lose energy as heat during operation, requiring robust cooling solutions. B-TRAN™'s efficiency means less cooling is required, translating to smaller overall product size and cost savings for OEMs.

Additionally, the symmetric bidirectional operation of B-TRAN™ reduces component count by 75% compared to traditional switches. This is a game-changer for applications in renewable energy and electrified transportation, where space and efficiency are paramount. Essentially, fewer components mean less complexity and potentially higher reliability.

From a technical viewpoint, the successful qualification without the need for special equipment or capital investment underscores the robustness of Ideal Power's process. This indicates that their technology can be scaled efficiently across different manufacturing environments, which is important for meeting growing market demands.

Financial Analyst

The successful qualification of a second wafer fabrication supplier can significantly impact Ideal Power's financial outlook. Dual sourcing enhances operational resilience, ensuring the company can meet customer demand without interruptions. This move is particularly important in the context of current global supply chain uncertainties, which have affected numerous industries.

For investors, this development signals that Ideal Power is positioning itself for scalable growth. With the new European supplier, the company is not only expanding its production capacity but also spreading its risk geographically. This should provide greater confidence in the company's ability to fulfill orders and grow revenue.

Furthermore, the association with an ISO 9001 and ISO 14001 certified supplier adds a layer of credibility. These certifications are recognized standards for quality and environmental management, which can be important for securing contracts with Tier 1 automotive suppliers and other high-profile clients. This aligns with the growing trend of customers prioritizing sustainability and quality in their supply chains.

From a financial perspective, the reduction in component count and improved efficiency of B-TRAN™ can translate to better margins for Ideal Power. Higher efficiency means lower operational costs and potentially higher adoption rates among OEMs looking for cost-effective solutions. This should positively impact the company’s bottom line in the medium to long term.

AUSTIN, TX / ACCESSWIRE / June 5, 2024 / Ideal Power Inc. ("Ideal Power," the "Company," "we," "us" or "our") (NASDAQ:IPWR), pioneering the development and commercialization of the highly efficient and broadly patented B-TRAN™ bidirectional semiconductor power switch, today announces the successful completion of its qualification of the Company's second wafer fabrication supplier with high-volume production capability. This facility in Europe adds dual sourcing for wafer fabrication and will support future revenue growth, providing ample capacity to support anticipated customer demand over at least the next two to three years.

"We are delighted to announce this key milestone of qualifying a second high-volume wafer foundry to provide wafer fabrication for our products. This fab successfully completed a multi-wafer full process flow engineering run of double-sided B-TRAN™ wafers. By leveraging our proprietary and proven process flow, this foundry was able to produce functional, bidirectional devices on their initial run without the need for special equipment or capital investment," said Dan Brdar, President and Chief Executive Officer of Ideal Power.

European wafer fabrication supplier highlights:

• This supplier, along with our previously qualified wafer fabricator in Asia, provides dual sourcing for wafer fabrication in disparate geographies with no exposure to China or Taiwan to mitigate supply chain risk.
• Demonstrated expertise in commercial manufacturing of high power, bipolar devices such as IGBTs. This expertise provides proven process recipes, capability and equipment that can be readily used or adapted for B-TRAN™ double-sided wafer fabrication.
• Qualified manufacturer of semiconductor wafers to multiple Tier 1 automotive suppliers. This will help Ideal Power to attract and engage prospective automotive OEMs and Tier 1 automotive suppliers as customers.
• ISO 9001 and ISO 14001 certified to globally recognized standards for quality and environmental management systems.

Ideal Power's patented semiconductor power switch, B-TRAN™, can reduce power losses by 50% or more over conventional power switches, depending on the application. B-TRAN™'s higher efficiency results in less heat being generated and therefore significantly lower thermal management requirements, requiring significantly smaller surface area to dissipate heat and giving rise to potentially smaller original equipment manufacturer products. B-TRAN™ offers the industry's only symmetric bidirectional operation, reducing the number of components required for an application by 75% compared to a conventional bidirectional switch utilizing IGBTs and diodes. This highly efficient and unique symmetric operation provides a strong competitive advantage in bidirectional applications, which are growing rapidly as transportation electrifies and power generation shifts to renewable energy coupled with energy storage. For more information on B-TRAN™, visit here.

About Ideal Power Inc.
Ideal Power (NASDAQ:IPWR) is pioneering the development and commercialization of its broadly patented bidirectional semiconductor power switch, creating highly efficient and ecofriendly energy control solutions for electric vehicle, electric vehicle charging, renewable energy, energy storage, UPS/data center, solid-state circuit breaker and other industrial and military applications. The Company is focused on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique double-sided bidirectional AC switch that delivers substantial performance improvements over today's conventional power semiconductors. Ideal Power's B-TRAN™ can reduce conduction and switching losses, complexity of thermal management and operating cost in AC power switching and control circuitry. For more information, visit the Company's website at www.IdealPower.com, on LinkedIn, on Twitter, and on Facebook.

Safe Harbor Statement
All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Ideal Power's management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Such forward-looking statements include, but are not limited to, statements regarding our dual sourcing for wafer fabrication providing ample capacity to support anticipated customer demand over at least the next two to three years and our expectation that our utilization of this European foundry will help Ideal Power to attract and engage prospective automotive OEMs and Tier 1 automotive suppliers as customers. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the success of our B-TRAN™ technology, including whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents, our inability to predict with precision or certainty the pace and timing of development and commercialization of our B-TRAN™ technology, including the timing of the completion of our wafer fabrication runs with our semiconductor fabrications partners, the rate and degree of market acceptance for our B-TRAN™, the impact of global health pandemics on our business, supply chain disruptions, and the expected performance of future products incorporating our B-TRAN™, and uncertainties set forth in our quarterly, annual and other reports filed with the Securities and Exchange Commission. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements, except as required by applicable law.

Ideal Power Investor Relations Contact
Jeff Christensen
Darrow Associates Investor Relations
jchristensen@darrowir.com
703-297-6917

SOURCE: Ideal Power

View the original press release on accesswire.com

FAQ

What does the new wafer fabrication supplier mean for Ideal Power's stock (IPWR)?

The new supplier mitigates supply chain risks and supports future revenue growth, which could positively affect IPWR's stock performance.

How does the second wafer fabrication supplier impact Ideal Power's supply chain?

The second supplier provides dual sourcing, reducing supply chain risks by avoiding reliance on a single region.

What are the benefits of Ideal Power's B-TRAN™ technology?

B-TRAN™ reduces power losses by 50% or more, generates less heat, and requires 75% fewer components than conventional power switches.

How does the new European wafer fabrication supplier affect Ideal Power's market position?

The supplier's expertise and certifications enhance Ideal Power's credibility, supporting its market position, especially in the automotive sector.

What is the significance of the European supplier completing the engineering run without special equipment?

It indicates the supplier's capability to produce functional B-TRAN™ wafers efficiently, supporting future production needs without additional investment.