HG Semiconductor Announces its Strategic Investment in GaN Systems Inc.

Leveraging its Strong Experience and Industry Expertise
Laying a Solid Foundation for the Group's Development in GaN Semiconductor Sector

HONG KONG, Nov 25, 2021 - (ACN Newswire) - HG Semiconductor Limited ("HG Semiconductor", together with its subsidiaries, "the Group", Stock Code: 6908.HK) is pleased to announce that FastSemi Holding Limited, a wholly-owned subsidiary of the Group, has invested in GaN Systems Inc. ("GaN Systems"), a leader in gallium nitride ("GaN") technology, and agreed to invest by subscribing for the series F-2 convertible preference shares in GaN Systems as a strategic investor.

Incorporated in Canada, GaN Systems is principally engaged in developing a broad range of GaN related products including high current GaN power semiconductors. With in-depth knowledge in GaN technology, the management team of GaN Systems combines decades of experience in developing GaN products. As a GaN power transistor company, GaN Systems currently ships to automotive, consumer, industrial, and data centre customers globally, and global companies rely on their transistors to reduce levels of carbon dioxide emissions and increase the utility and energy efficiency of their power systems. GaN Systems anticipates a capital funding round to accelerate innovation and adoption of GaN technology across its automotive, consumer, industrial, and enterprise markets. This strategic investment is also joined by BMW i Ventures, a top-tier car manufacturer and existing investor of GaN Systems, along with Fidelity, Vitesco Technologies and others. Subsequent to this investment, HG Semiconductor will be able to nominate an independent board observer from Canada to be on the board of GaN Systems.

Leveraging its industrial expertise on semiconductors manufacturing, HG Semiconductor has been expanding its business to various kinds of semiconductors including GaN related products. To further develop and deepen its presence in GaN semiconductor sector, the Group seeks to capitalise on the extensive experience, resources and expertise of GaN Systems, thereby developing its GaN semiconductor business to achieve the business goal of becoming a leading and innovative player in the sector.

Mr. ZHAO Yi Wen, Chairman and Executive Director of HG Semiconductor said, "The Group expects this strategic investment will lay a solid foundation for its future development and prospects in its GaN semiconductor business. Upon completion of the investment, we expect both the Group and GaN Systems may have the opportunity to pool our respective advantages to each other, creating synergistic effects. In particular, GaN Systems can provide dedicated technical support (from Ottawa, California and Taiwan) to the Group for process definition and qualification of GaN device manufacturing to achieve best-in-class yield targets and targeted qualifications. Such technical support may include elements of the developed process that are proprietary to GaN Systems only, and alignment on intellectual property strategy for resulting process know how. The Group will also be able to obtain technical support for reference design in internet data centre (IDC) power systems, electric vehicle (EV), and solar inverter applications from GaN Systems on most favoured nation terms. Furthermore, GaN Systems also proposes to qualify the subsidiary of the Group as a foundry partner to GaN Systems and enter into a licence agreement whereby the Group may use certain GaN technology of GaN Systems for manufacturing its semiconductors components. With our strategic blueprint in place, we strive to further enhance our business performance in order to create long-term value for our shareholders."

About HG Semiconductor Limited
HG Semiconductor Limited (6908.HK) is principally engaged in semiconductor product business in China, including the design, development, manufacturing, subcontracting services and sales of light-emitting diode ("LED") beads, LED lighting products, fast charging products and a new generation of semiconductor gallium nitride ("GaN") related products. Leveraging its industry expertise on LED manufacturing, the Group is committed to accelerating its research and development and expansion in the application of GaN related products, with an aim to become a leading semiconductor company with the integration of design, manufacturing and sales of semiconductor chips. The Group strategically holds 21.86% stake in VisIC Technologies Limited, leveraging respective advantages to jointly develop GaN related chips and products.

For more details, please visit http://www.lighting-hg.com/en.

About GaN Systems Inc.
GaN Systems, headquartered in Ottawa (Canada), is the leader in Gallium Nitride (GaN) based power management devices, and delivers its products to automotive industries, Internet Data Centers (IDC) and renewable energy.

For more details, please visit https://gansystems.com.


Source: HG Semiconductor Limited

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