Renesas Completes Acquisition of Transphorm
Renesas Electronics has completed its acquisition of Transphorm, a leader in gallium nitride (GaN) power semiconductors, as of June 20, 2024. This acquisition allows Renesas to immediately offer GaN-based power products and reference designs to meet the rising demand for wide bandgap (WBG) semiconductor products. GaN and silicon carbide (SiC) are key for next-gen power semiconductors, with growing applications in EVs, data centers, AI, renewable energy, and more.
Renesas also launched 15 new reference designs, integrating both companies' technologies, focusing on EVs, industrial power conversion, and other sectors. These include solutions like a 500W onboard battery charger for 2-wheeler EVs and a 3-in-1 EV unit combining inverter, charger, and DC/DC converter.
The acquisition aligns with Renesas' strategy for sustainable long-term growth, complementing other initiatives like opening new facilities for power products and securing SiC wafer supplies.
- Completed acquisition of Transphorm as of June 20, 2024, enhancing GaN power semiconductor offerings.
- Immediate availability of GaN-based power products and reference designs.
- Introduction of 15 new reference designs focusing on EVs and industrial power conversion.
- Integration of Transphorm's automotive-grade GaN technology in new designs.
- Strategic alignment with Renesas' long-term growth plans, emphasizing sustainable power solutions.
- Recent investments including new 300-mm wafer fab and SiC production line.
- None.
Insights
Renesas' acquisition of Transphorm signifies a strategic move to enhance its offerings in the wide bandgap (WBG) semiconductor market, particularly gallium nitride (GaN) power semiconductors. This acquisition can be seen as a direct response to the growing demand for more efficient power devices across various industries such as electric vehicles (EVs), renewable energy and data centers.
From a financial perspective, this move is projected to enhance Renesas' revenue streams by diversifying its product portfolio. The addition of GaN technology enables Renesas to provide high-efficiency power solutions, which are increasingly sought after in high-growth sectors. Additionally, the introduction of 15 new reference designs that integrate GaN products with Renesas’ existing technologies will likely attract more customers looking for comprehensive, turn-key solutions.
However, investors should consider the integration costs and potential operational challenges that may arise as Renesas assimilates Transphorm’s technologies and workforce. The mid to long-term impact of this acquisition will depend on how effectively Renesas manages these integration processes and capitalizes on the synergies between the two companies.
Rating: 1 (Positive)
The completion of Renesas' acquisition of Transphorm is a noteworthy development in the semiconductor industry. GaN technology, which stands out for its superior power efficiency and compact size compared to traditional silicon-based devices, is expected to be pivotal in next-generation applications. These include EVs, industrial power conversion and data center servers where high power efficiency and reduced energy consumption are critical.
The immediate introduction of GaN-based reference designs is a strategic move. These designs, such as the 500W Onboard Battery Charger for 2-Wheeler EVs and the 3-in-1 EV Unit integrating inverter, onboard charger and DC/DC converter, highlight the versatility and practical application of Transphorm’s GaN technology. This not only underscores the integration capability of Transphorm’s innovations with Renesas' existing portfolio but also provides customers with ready-to-deploy solutions that accelerate their time to market.
WBG materials like GaN and SiC are anticipated to see rapid adoption, driven by their performance advantages. As Renesas strengthens its foothold in this area, it positions itself favorably against competitors who are also exploring WBG technologies.
Rating: 1 (Positive)
From a market perspective, Renesas' acquisition of Transphorm is timely and strategically astute. The semiconductor market, particularly for WBG materials, is on the cusp of substantial growth. The demand from sectors like EVs, renewable energy and AI-driven data centers underscores the need for more efficient power solutions. By incorporating GaN technology, Renesas can tap into these expanding markets with a more robust product lineup.
The announcement emphasizes Renesas' commitment to sustainability and energy efficiency, which are increasingly important buying criteria for customers in the industrial, automotive and consumer electronics sectors. The strategic initiatives mentioned, such as the opening of the Kofu Factory for power products and the new SiC production line, further reinforce Renesas' long-term vision for growth in this market segment.
For retail investors, this acquisition signals a potential upside, as it aligns with macro trends driving the semiconductor industry. However, it is essential to monitor how well Renesas can leverage Transphorm’s technology to generate new revenue streams and maintain competitive differentiation.
Rating: 1 (Positive)
Accelerates Wide Bandgap Product Offering and Introduces 15 New GaN-Based Winning Combination Reference Designs
(Graphic: Business Wire)
WBG materials such as GaN and silicon carbide (SiC) are considered key technologies for next-generation power semiconductors due to their superior power efficiency, higher switching frequencies and small footprints compared to conventional silicon-based devices. Both GaN and SiC-based products are expected to grow rapidly over the next decade, driven by demand from electric vehicles (EVs), inverters, data center servers, artificial intelligence (AI), renewable energy, industrial power conversion, consumer applications and others.
“Customers instantly benefit from the new GaN products through turnkey reference designs, which integrate technologies from both companies,” said Chris Allexandre, Senior Vice President and General Manager of Power at Renesas. “Adding GaN into our portfolio also reinforces our commitment to develop products and technology that make people’s lives easier. Providing robust and sustainable power solutions that save energy, reduce cost and minimize environmental impacts does just that.”
Investing in the power business is an important part of Renesas’ strategy for achieving sustainable, long-term growth. Other recent moves that Renesas has made to bolster this market segment include: the opening of the Kofu Factory, a dedicated 300-mm wafer fab for power products; ramping up a new SiC production line at the Takasaki Factory; and forging an agreement with Wolfspeed to secure a steady supply of SiC wafers over the next 10 years. With GaN technology now part of Renesas’ portfolio, Renesas is poised to offer more comprehensive power solutions to support the evolving needs of customers across a broad range of applications.
On the same day that it completed the acquisition of Transphorm, Renesas rolled out 15 new Winning Combinations, market-ready reference designs that combine the new GaN products with Renesas’ embedded processing, power, connectivity and analog portfolios. These include the designs of Transphorm’s automotive-grade GaN technology integrated for on-board battery chargers as well as 3-in-1 powertrain solutions for EVs.
Some examples are:
- 500W Onboard Battery Charger for 2-Wheeler EV
- 3-in-1 EV Unit: Inverter, Onboard Charger, DC/DC Converter
- 240W 48V Extended Power Range AC/DC Adapter
- 3.6KW Bi-directional Digital Power DAB System
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Renesas Electronics Corporation (TSE: 6723) empowers a safer, smarter and more sustainable future where technology helps make our lives easier. A leading global provider of microcontrollers, Renesas combines our expertise in embedded processing, analog, power and connectivity to deliver complete semiconductor solutions. These Winning Combinations accelerate time to market for automotive, industrial, infrastructure and IoT applications, enabling billions of connected, intelligent devices that enhance the way people work and live. Learn more at renesas.com. Follow us on LinkedIn, Facebook, X, YouTube, and Instagram.
Cautionary note regarding forward-looking statements
This announcement may contain certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Renesas and/or Transphorm and/or the combined group following completion of the Acquisition and certain plans and objectives of Renesas with respect thereto. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as “anticipate,” “target,” “continue,” “estimate,” “expect,” ‘‘forecast,” “intend,” “may,” “plan,” “goal,” “believe,” “hope,” “aims,” “continue,” “could,” “project,” “should,” “will” or other words of similar meaning. These statements are based on assumptions and assessments made by Renesas and/or Transphorm (as applicable) in light of their experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.
Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Neither Renesas nor Transphorm undertakes any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.
There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. If any one or more of these risks or uncertainties materializes or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward looking statements should therefore be construed in the light of such factors.
No member of the Renesas group or Transphorm nor any of their respective associates, directors, officers, employers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur.
Except as expressly provided in this announcement, no forward-looking or other statements have been reviewed by the auditors of the Renesas group or Transphorm. All subsequent oral or written forward-looking statements attributable to any member of the Renesas group or Transphorm, or any of their respective associates, directors, officers, employers or advisers, are expressly qualified in their entirety by the cautionary statement above.
(Remarks) All names of products or services mentioned in this press release are trademarks or registered trademarks of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240620083320/en/
Media:
Akiko Ishiyama
Renesas Electronics
+ 1-408-887-9006
akiko.ishiyama.xf@renesas.com
Source: Renesas Electronics Corporation
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