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Transphorm Ensures Secure Gallium Nitride Materials Sources Amid China Export Restrictions

GaN

Transphorm, Inc. (Nasdaq: TGAN), a leading global provider of GaN power semiconductors, has responded to the recent news concerning export restrictions imposed by China. The Ministry of Commerce in China announced on Monday, July 3, 2023, that it would restrict the export of materials related to gallium and germanium, which are crucial for semiconductor manufacturing. These regulations include gallium nitride (GaN) wafer materials.

 

As a manufacturer of high voltage GaN power semiconductors, Transphorm relies on Trimethylgallium (TMGa) to produce GaN. The company has confirmed that its primary TMGa suppliers are not based in China. Furthermore, these suppliers have assured Transphorm that they are well-prepared to meet the forecasted demand. Consequently, Transphorm maintains a secure position to continue manufacturing and supplying GaN devices without any interruptions.

 

Transphorm also clarified that gallium is typically obtained as a byproduct from refinement processes used in the production of widely used metals like aluminum derived from bauxite ore. Aluminum is produced in multiple countries, including Australia, Brazil, India, Jamaica, and the United States, among others.

 

While Transphorm will diligently monitor the situation, the company does not anticipate any direct impact on its current operations. Nor does it foresee any long-term sourcing issues, given its reliable supply chain for gallium nitride materials.

 

The confirmation from Transphorm regarding the security of its gallium nitride materials sources reassures the company’s stakeholders amid concerns over China’s export restrictions. With the assurance of a steady supply chain, Transphorm can maintain its production and continue meeting the market demand for GaN devices effectively.

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