Canada’s power chip maker GaN Systems raises $150 mln, pushes on electric car market

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Nov 18 (Businesshala) – Canadian power chip maker GaN Systems said on Tuesday it raised $150 million in a funding round led by Fidelity Management and Research as it seeks to expand its market share, including a big push into the electric car market. Is.

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While chip shortages are plaguing the automotive industry, GaN Systems chief executive Jim Witham said his company has secured production volumes with Taiwan Semiconductor Manufacturing Company (2330.TW) to continue its growth.

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BMW (BMWG.DE) and Toyota Motor Corp (7203.t) have been investors in GaN Systems for several years, and Witham said that GaN recently signed its first “capacity agreement” with BMW to provide a quarter To guarantee the delivery of power chips of more than Rs. one billion dollars. He said about 100 power chips are used in each electric vehicle.

Witham said GaN Systems uses gallium nitride (GaN), a material recently used to make chips that are capable of reducing power losses by four times compared to conventional silicon-based power chips. Is. While gallium nitride chips make up only 1% of the $16 billion power chip market, Witham said they are growing rapidly.

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“Automotive is a big game in EV, and now is the time for the company to really capitalize on that rapid growth and increase market share,” Witham said.

In addition to automotive clients, Witham said, GaN Systems chips were gaining traction in power chargers for consumer goods because they are smaller and more energy efficient than silicon power chips. They are also finding use in robots, servers, industrial motors and renewable energy facilities.

Witham declined to disclose the company’s valuation.

Reporting by Zhen Lanhi Lee; Editing by Steve Orlofsky

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