Transphorm Wins $1.4 Million Contract From Defense Advanced Research Projects Agency

Project Focuses on Developing Alternative Nitrogen Polar GaN on Sapphire Substrates for RF/mm-wave Applications; Builds on Ongoing Work Conducted with Office of Naval Research

Transphorm, Inc. (OTCQX: TGAN)—a pioneer in and global supplier of high reliability, high performance gallium nitride (GaN) power conversion products—announced today that it has been awarded a $0.9 million contract with a $0.5 million option by the Defense Advanced Research Projects Agency (DARPA). This contract, W31P4Q-21-C-0009, commissions Transphorm to explore performance and cost boundaries for manufacturing an alternative Nitrogen polar (N-polar) GaN solution for DoD and Commercial radio frequency (RF)/millimeter wave (mm-wave) applications. Transphorm will be responsible for delivering the epiwafer technology whereas the sub-contractor, University of California, Santa Barbara (UCSB), will fabricate the RF/mm-wave transistors.

The new project builds on Transphorm’s history as well as ongoing work with the Office of Naval Research (ONR) to establish a domestic resource and supply for RF GaN epiwafers, with emphasis on N-polar GaN, a technology that is proven to deliver greater benefits than today’s more commonly used Gallium polar (Ga-polar) GaN for RF and mm-wave applications. Transphorm will explore the use of sapphire substrates to achieve greater cost efficiency for N-polar GaN solutions compared to conventional Ga-polar on silicon carbide (SiC) solutions. The work output is expected to yield a stable, high quality thin-epi structure with its capability established by the high-performance transistors.

Transphorm’s team will meet the following program objectives regarding N-polar GaN-on-Sapphire:

• Establish the overall value proposition
• Define the high-performance parameter space
• Define the viability of building the epiwafers

“We’re thankful to DARPA for the opportunity and confidence to further define the N-polar GaN solution for RF applications. This project, coupled with our ongoing work to scale manufacturing with ONR support is an incredible opportunity for Transphorm to grow its position as a premium RF epiwafer supplier, our second business vertical. The goal now is to take that foundation and enable our RF epi customers to achieve more efficient RF power for the dollar,” said Dr. Mishra, CTO and co-founder of Transphorm. “Sapphire is an attractive material choice for this purpose but has historically been dismissed as it has low heat conductance. We believe that, with innovative engineering, the program team can overcome that limitation and are excited for the chance to set that benchmark for the GaN RF industry.”

The potential value of N-polar GaN in RF/mm-wave applications as well as possibly for future power electronics is appealing given its extraordinary efficiencies at frequencies as high as 94 GHz. It is primed to directly benefit DoD systems along with applications for 5G, 6G, and beyond.

For information about Transphorm’s epiwafer offerings, please contact Dr. Ron Birkhahn, Senior Director MOCVD, Transphorm (epi@transphormusa.com).

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, 40% 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 technology and product offerings, 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.

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