Transphorm comments on China restrictions on sourcing semiconductor materials

Transphorm responded to the recent news regarding China export restrictions. Late Monday, July 3 China’s Ministry of Commerce stated that it will restrict the exports of materials related to two metals used in semiconductor manufacturing: gallium and germanium. Gallium nitride or GaN, wafer materials are listed as being affected by these regulations. Transphorm manufactures high voltage GaN power semiconductors. Trimethylgallium or TMGa, is used to produce the GaN. The company confirmed that its primary TMGa suppliers are not based in China and that suppliers have confirmed to be well-positioned to meet forecasted demand. Transphorm is therefore securely positioned to continue manufacturing and supplying its GaN devices without interruption. Transphorm also explained gallium is generally a byproduct resulting from refinement processes used to produce popular metals such as aluminum from bauxite ore. Aluminum is produced in numerous countries such as Australia, Brazil, India, Jamaica, and the United States among others. Transphorm will continue to the monitor the situation as necessary but sees no direct impact on its current operations. Nor does the company see long-term sourcing issues.