Transphorm Enables Next Generation Power Conversion Solutions – 99% Efficient Power Stage(s), 50% More Compact/Lightweight Systems, Lower System Cost

One of the industry’s best and only reported broad power spectrum reliability ratings for GaN power

Transphorm, Inc. (NASDAQ: TGAN)—a pioneer in and global supplier of high-reliability, high-performance gallium nitride (GaN) power conversion products, announced an operating milestone attained in February, the Company has exceeded 125 billion field hours for its high reliability GaN semiconductor products.

Transphorm’s SuperGaN^® platform is differentiated through its patented GaN Semiconductor technology and an IP portfolio encompassing over 350 directly owned and more than 1000 overall fundamental materials through applications patents, appraised at approximately $170M¹.

The Company’s GaN FET products:

• Offer best in class performance from low power to high power and across a variety of topologies, with ease of use and interface with standard drivers and controllers.
• Offer superior dynamic performance resulting in higher efficiency with a smaller chip size vs. other GaN products, or higher power from the same or smaller die size.
• Offer a much higher voltage rating, 650 Volts, 900 Volts, and at 1,200 Volts (under development) all exceeding the performance of SiC MOSFETs (650V, 1200V) and other GaN devices where such are available (i.e at 650V lower power).

Transphorm’s expanding network of Blue-Chip partners, including controller & integrated driver IC partners, allows Transphorm to efficiently expand its reference designs and solutions footprint. Thus, placing it in an important strategic position to take full advantage of a growing market opportunity with best-in-class technology – performance of GaN with the look and feel of Silicon (easy to use/interface).

“This milestone demonstrates our industry-leading reliability for both low-power and high-power applications of our GaN power solutions,” commented Transphorm President, COO, and Co-founder, Primit Parikh. “The past year proved to be a critical step in positioning the Company to reach this operating goal. From a business growth standpoint, exceeding 125 billion operating hours with very low sub 0.2 FIT rates across the power range coupled with high performance of our patented solutions, further supports our confidence for growth from our fast-growing $500 million+ long term pipeline.”

Dedication to CO₂ Reduction:

While GaN is the eco-friendly power conversion solution of choice, the ability to deliver high power GaN devices enables Transphorm to deliver 5-10x more energy and environmental savings vs. lower power GaN solutions. A 3kW power supply enabled by Transphorm’s Super GaN platform, enables 25 kgs of CO₂ emissions reduction from a single device (6x that reported from lower power e-mode GaN “IC” type devices) with our GaN estimated to reduce over 25,000 MT of CO₂ emissions in FY2023 alone². We estimate energy savings in 2041 exceeding 500 Tera-watt hours³ in the US alone with over 1 GigaTon of annual WW CO₂ reduction potential⁴, over 10% of emissions from coal plants in 2021⁵.

Transphorm continues to be a pioneer and leader in the industry, providing GaN Power Conversion to a growing customer base. The Company is taking GaN electronics development beyond the limitations of silicon with the potential to achieve higher efficiency, higher power density and overall lower system cost. Transphorm is targeting a market opportunity projected to grow to $6B⁶ in 2026, and addressing products ranging from Adapters & Chargers, PC Gaming, Blockchain, Data Centers, Aerospace, Defense, Broad Industrials, to Renewables and EV Mobility.

About Transphorm

Transphorm, Inc., a global leader in the GaN revolution, designs and manufactures high performance and high reliability GaN semiconductors for high voltage power conversion applications. Having one of the largest Power GaN IP portfolios of more than 1,000 owned or licensed patents, Transphorm produces the industry’s first JEDEC and AEC-Q101 qualified high voltage GaN semiconductor devices. The Company’s vertically integrated device business model allows for innovation at every development stage: design, fabrication, device, and application support. Transphorm’s innovations are moving power electronics beyond the limitations of silicon to achieve over 99% efficiency, 50% more power density and 20% lower system cost. Transphorm is headquartered in Goleta, California and has manufacturing operations in Goleta and Aizu, Japan. For more information, please visit www.transphormusa.com. Follow us on Twitter @transphormusa and WeChat@Transphorm GaN.

Forward-Looking Statements

This press release contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning the Company’s positioning to achieve long-term operating goals, the Company’s ability to expand its manufacturing capacity and meet anticipated demand, industry acceptance of GaN technology, and the Company’s pipeline and future anticipated growth. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “plan,” “believe,” “intend,” “look forward,” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: risks related to Transphorm’s operations, such as additional financing requirements and access to capital; competition; the ability of Transphorm to protect its intellectual property rights; and other risks set forth in the Company’s filings with the Securities and Exchange Commission. Except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

1. 2022 Analysis done for GaN portfolio using Intracom Group Intellectual Property Solutions’ patent valuation models based on 27 independent criteria, value consists of Transphorm’s owned or exclusively licensed patents (non-exclusive patents not included)

2. Company estimates 3kW power supply having 1% higher efficiency with GaN, operating for 50% time and total eq. devices sold, 1 kwH caused CO₂ emissions based on https://www.eia.gov/tools/faqs/faq.php?id=74&t=11.

3. Company estimates for US (and WW) power conversion applications that GaN can penetrate and enable efficiency (electricity) savings and enabled associated environmental impact.

4. Company estimates 3kW power supply having 1% higher efficiency with GaN, operating for 50% time and total eq. devices sold, 1 kwH caused CO₂ emissions based on https://www.eia.gov/tools/faqs/faq.php?id=74&t=11.

5. EPA 2021 estimate of 432 kg CO₂ resulting for one 42G barrel and estimates for global CO₂ emissions from coal-fired plants. Source: https://www.iea.org/reports/global-energy-review-co2-emissions-in-2021-2.

6. Sources: IDC (Data Center / Comm Infrastructure; Counterpoint Research, Mordor Intelligence (Power Adapters / Compute); Yole, HIS (Broad Industrial); Department of Industry, Innovation and Science (1029) (Automotive). TAM values are then calculated based on available technology, competition and value add market.

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