Canada’s energy chip maker GaN Methods raises $150 million, pushes on electrical automotive market


(Reuters) – Canadian energy chip maker GaN Methods on Tuesday mentioned it raised $150 million in a funding spherical led by Constancy Administration & Analysis because it seeks to increase its market share, together with an enormous push into the electrical automotive market.

Whereas a chip scarcity has been plaguing the automotive business, GaN Methods’ Chief Government Jim Witham mentioned his firm has secured manufacturing quantity with Taiwan Semiconductor Manufacturing Co to proceed its development.

BMW and Toyota Motor Corp have been buyers in GaN Methods for a number of years, and Witham mentioned GaN just lately signed its first “capability settlement” with BMW to ensure supply of energy chips price over 1 / 4 of a billion {dollars}. He mentioned about 100 energy chips are utilized in every electrical automobile.

GaN Methods makes use of gallium nitride (GaN), a fabric extra just lately utilized for chip making that is ready to obtain 4 instances discount in energy loss in contrast with conventional silicon-based energy chips, mentioned Witham. Whereas the gallium nitride chips solely make up 1% of a $16 billion energy chip market, Witham mentioned they’re rising quick.

“There is a huge play in automotive, EV, and now’s the time to essentially capitalize the corporate for that fast development and to gobble up market share,” mentioned Witham.

Along with automotive purchasers, Witham mentioned, GaN Methods chips had been choosing up traction in energy chargers for shopper items as they’re smaller and extra vitality environment friendly than silicon energy chips. They’re additionally discovering use in robots, servers, industrial motors and renewable vitality services.

Witham declined to reveal the corporate’s valuation.

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