Renesas to Acquire Transphorm: Expanding its Power Portfolio with GaN Technology

Renesas Electronics and Transphorm announced that they have entered into a definitive agreement pursuant to which a subsidiary of Renesas will acquire all outstanding shares of Transphorm's common stock. The transaction values Transphorm at approximately $339 million. The acquisition will provide Renesas with in-house GaN technology, which is described by Renesas to be "a key next-generation material for power semiconductors, expanding its reach into fast-growing markets such as EVs, computing (data centers, AI, infrastructure), renewable energy, industrial power conversion and fast chargers/adapters". Renesas claims that demand for GaN is predicted to grow by more than 50 percent annually. Renesas will implement Transphorm's auto-qualified GaN technology to develop new enhanced power solution offerings, such as X-in-1 powertrain solutions for EVs, along with computing, energy, industrial and consumer applications. The board of directors of Transphorm has unanimously approved the definitive agreement with respect to the transaction and recommended that Transphorm stockholders adopt such definitive agreement and approve the merger. The transaction is expected to close in the second half of calendar year 2024, subject to Transphorm stockholder approval, required regulatory clearances and the satisfaction of other customary closing conditions. In other news Renesas had already announced the establishment of an in-house SiC production line, supported by a 10 year SiC wafer supply agreement.

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