Transphorm Announces $4 Million Multi-Year Development Agreement with Yaskawa Electric

Rhea-AI Summary

Transphorm, Inc. (OTCQB: TGAN) has expanded its cooperation agreement with Yaskawa Electric Corporation, with Yaskawa committing $4 million in investments. The first tranche of $1 million is expected by mid-December 2020. This agreement builds upon a previous partnership starting in 2017, which saw Yaskawa invest $15 million in Transphorm. The collaboration aims to utilize Transphorm's GaN power devices for industrial applications, enhancing Yaskawa's next-generation products in servo motors and variable frequency drives.

Positive

• Yaskawa Electric Corporation to invest $4 million in Transphorm.
• First tranche of $1 million expected by mid-December 2020.
• Collaboration enhances development of Transphorm's GaN power devices for industrial applications.

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• None.

Transphorm, Inc. (OTCQB: TGAN)—a pioneer in and global supplier of high reliability, high performance gallium nitride (GaN) power conversion products—today announced the Company entered into an expanded, multi-year cooperation and development agreement with its long-term strategic partner, Yaskawa Electric Corporation (“Yaskawa”), the leading manufacturer of low and medium voltage variable frequency drives, servo motors, machine controllers and industrial robots. As part of the agreement, Yaskawa will make investments in Transphorm totaling $4 million, with the first tranche of $1 million to be provided by mid-December 2020. This agreement is an expansion of the next phase of cooperation initiated in 2017 with Yaskawa’s investment of $15 million in Transphorm.

Yaskawa intends to use Transphorm’s leading GaN power device products for a variety of industrial power conversion applications commencing with servo motor and variable frequency drive applications. Power device development activity by Transphorm under this agreement will benefit Yaskawa by enhancing its next generation of products in the mentioned applications.

“Transphorm greatly values its long-term relationship with Yaskawa as it has helped to advance the development of Transphorm’s GaN FET platforms, resulting in high performance power devices for industrial and motor control applications as well as other focused markets,” stated Umesh Mishra, Co-founder and CTO, Transphorm. “The device development under this contract will further enhance the specifications of Transphorm’s products, while maintaining our best-in-class quality and reliability. These enhanced product features will make our new GaN products appealing for servo drives for robotics and motion control as well as a broader range of industrial and white goods applications.”

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 are moving power electronics beyond the limitations of silicon to achieve over 99% efficiency, 40% 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 www.transphormusa.com. Follow us on Twitter @transphormusa.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201214005426/en/

FAQ

What is the latest investment agreement involving Transphorm (TGAN)?

Transphorm has entered an expanded cooperation agreement with Yaskawa Electric Corporation, which includes a $4 million investment.

How much has Yaskawa invested in Transphorm to date?

Yaskawa has previously invested $15 million in Transphorm since their partnership began in 2017.

What applications will benefit from Transphorm's GaN power devices?

Transphorm's GaN power devices will be utilized in industrial applications, particularly in servo motors and variable frequency drives.

When is the first payment of the new investment to Transphorm expected?

The first payment of $1 million is expected by mid-December 2020.

What are the expected outcomes of the agreement between Transphorm and Yaskawa?

The agreement aims to enhance the specifications and performance of Yaskawa's next-generation products using Transphorm's GaN technology.