GaN Systems raises $150M to speed up adoption of GaN technology
GaN Systems announces a USD 150 million growth capital funding round to accelerate innovation and adoption of GaN technology across its automotive, consumer, industrial, and enterprise markets.
Fidelity led the round and is joined by strategic investors, including powertrain technologies manufacturer Vitesco Technologies. Existing investor BMW i Ventures, joins Fidelity, Vitesco Technologies, and existing investors in the financing round. GaN Systems says in a press release that it will use the investment to fuel the rapid market penetration of GaN as global power electronics companies shift from legacy silicon devices to unlock the value of small, low-cost, efficient power systems. Vitesco Technologies is the lead strategic partner in the round and has announced a broad strategic partnership with GaN Systems to enable GaN solutions across the EV platform. The strategic partnership comes on the heels of GaN Systems’ recent announcement of a capacity agreement with BMW. “We share a successful track record in power electronics. By combining our automotive know-how with our partner’s GaN expertise, we will be able to reap the benefits of comprehensive wide-bandgap technology in the car,” says Thomas Stierle, Member of the Executive Board and head of Vitesco Technologies’ Electrification Technology business unit, in a press release. “We are enthusiastic about our strategic partnership with GaN Systems to accelerate GaN adoption across our electrification solutions.” Jim Witham, CEO of GaN Systems, adds, “This transaction is a game-changer and comes at a perfect time. The demand for higher performing, more efficient power electronics is growing exponentially, and traditional silicon solutions cannot keep up. Gallium Nitride takes the baton from legacy silicon to enable smaller platforms to run cooler and use fewer materials. We stand apart from the competition as the only GaN power transistor company currently shipping to automotive, consumer, industrial, and data center customers. Our relationships with industry leaders and our $8 billion pipeline tell us that the GaN inflection is here, and the time is now to accelerate investment in the business.”