News: Microelectronics
25 November 2021
HG makes strategic investment in GaN Systems
Hong Kong-based HG Semiconductor Ltd says that its subsidiary FastSemi Holding Ltd has invested in GaN Systems Inc of Ottawa, Ontario, Canada (a fabless developer of gallium nitride-based power switching semiconductors for power conversion and control applications), and agreed to invest by subscribing for series F-2 convertible preference shares in GaN Systems as a strategic investor.
GaN Systems’ current growth capital funding round (to raise $150m) is aimed at accelerating innovation and adoption of GaN technology across its automotive, consumer, industrial and enterprise markets. HG’s strategic investment is also joined by existing investor BMW i Ventures, along with Fidelity, Vitesco Technologies and others. Following this investment, HG will be able to nominate an independent board observer from Canada to be on the board of GaN Systems.
HG’s activities encompass the design, development, manufacturing, subcontracting services and sale of LED beads, LED lighting products, fast-charging products and a new generation of GaN-based products. Leveraging its industrial expertise in LED manufacturing, HG has been accelerating its R&D and expanding its business to various kinds of semiconductors including GaN-based products, through the integration of design, manufacturing and sale of chips. In particular, the firm strategically holds a 21.86% stake in VisIC Technologies Ltd of Ness Ziona, Israel (a fabless supplier of GaN-based power conversion devices), leveraging their respective strengths to jointly develop GaN-based chips and products.
To further deepen its presence in the GaN sector, HG says it aims to capitalize on the extensive experience, resources and expertise of GaN Systems, developing its GaN business to become a leading player in the sector.
“The group expects this strategic investment will lay a solid foundation for its future development and prospects in its GaN semiconductor business. Upon completion of the investment, we expect both the group and GaN Systems may have the opportunity to pool our respective advantages to each other, creating synergistic effects,” says HG’s chairman & executive director Zhao Yi Wen. “In particular, GaN Systems can provide dedicated technical support (from Ottawa, California and Taiwan) to the group for process definition and qualification of GaN device manufacturing to achieve best-in-class yield targets and targeted qualifications. Such technical support may include elements of the developed process that are proprietary to GaN Systems only, and alignment on intellectual property strategy for resulting process know how,” he adds. “The group will also be able to obtain technical support for reference design in Internet data center (IDC) power systems, electric vehicle (EV) and solar inverter applications from GaN Systems on most-favored-nation terms. Furthermore, GaN Systems also proposes to qualify the subsidiary of the group as a foundry partner to GaN Systems and enter into a licence agreement whereby the group may use certain GaN technology of GaN Systems for manufacturing its semiconductors components.”
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