Preeminent Japanese firms INCJ & Nihon Inter Electronics lead investment to establish Gallium Nitride (GaN) as industry standard in electric power conversion.
Transphorm Inc., a company redefining energy efficiency with efficient and compact power conversion technology, today announced a $35 million Series E financing led by Innovation Network Corporation of Japan (INCJ) and Nihon Inter Electronics Company (NIEC), with participation from existing venture investors Kleiner Perkins Caufield & Byers, Foundation Capital, Google Ventures, Quantum Strategic Partners (a private investment fund managed by Soros Fund Management), Lux Capital, and Bright Capital. INCJ is a public-private partnership between the Japanese government and 27 major corporations, including Sharp, Sumitomo Electric, Toshiba and General Electric Company, Japan. INCJ has the capacity to invest up to ￥2 trillion (approximately US$25 billion). This brings the total capital raised from all rounds to $104 million.
In addition to its financial investment, Nihon Inter Electronics entered into a business alliance with Transphorm, with the aim of enabling the stable, mass production and supply of next-generation GaN (Gallium nitride) power devices. The alliance will help bring the long-awaited practical realization, commercialization and mass production of state-of-the-art GaN power conversion solutions.
GaN power solutions are being heralded as next-generation power devices due to the significant reduction in energy loss and energy-saving capabilities for businesses and consumers. Transphorm is the first company to commercialize high voltage GaN backed by its vertically integrated GaN development capability, a worldclass team, and intellectual property. Transphorm recently announced that it was the first to successfully deliver qualified high voltage (600V) GaN products, delivering enterprise customers the world’s most compact and energy-efficient power conversion solutions.
“The investment from INCJ substantiates GaN as the next generation energy efficiency technology,” said Umesh Mishra, CEO of Transphorm. “The need for energy efficiency remains paramount even as the sources of energy change. Today’s strategic financing, coupled with the earlier investments, enables scaling of this disruptive technology and helps eliminate energy waste in multiple markets from servers to solar panels, from HVACs to hybrids.”
“The INCJ-enabled alliance with NIEC helps Transphorm accelerate its business while maintaining its global leadership position in GaN power conversion,” said Primit Parikh, Transphorm's President. “Through NIEC, our customers will benefit with broader distribution channels, as well as a reputable second source for some of our packaged products.”
“After a thorough evaluation process, INCJ is pleased to support Transphorm, together with NIEC, in its mission of redefining energy efficiency with GaN,” said Hidetoshi Shibata, Executive Managing Director INCJ. “We look forward to working with Transphorm as they continue to build energy efficient solutions for consumers and businesses around the world.”