Cambridge GaN Devices secures funds for expansion

Cambridge GaN Devices (CGD) has successfully closed a $32 million Series C funding round, aimed at expanding its operations and meeting the increasing demand for reliable and user-friendly GaN products. The company plans to utilize the funding to bolster its presence in key regions such as Cambridge, North America, Taiwan, and Europe, while also focusing on delivering its innovative GaN technology to a growing customer base in sectors like high-power industrial, data center, and automotive markets.

Gallium Nitride (GaN) based devices are gaining traction due to their ability to offer faster switching speeds, lower energy consumption, and more compact designs compared to traditional silicon devices. CGD's proprietary monolithic ICeGaN® technology has simplified the implementation of GaN into both existing and cutting-edge designs. With efficiency levels surpassing 99%, CGD's technology enables energy savings of up to 50% in various high-power applications, including electric vehicles and data center power supplies.

The recent investment round was spearheaded by a strategic investor, with additional contributions from British Patient Capital and ongoing support from existing investors such as Parkwalk, BGF, Cambridge Innovation Capital (CIC), Foresight Group, and IQ Capital. Dr. Giorgia Longobardi, CEO and Founder of CGD, expressed enthusiasm about the funding, stating that it signifies a significant milestone for the company. She emphasized the validation of CGD's technology and vision to revolutionize the power electronics industry with efficient GaN products, paving the way for sustainable power electronics across various sectors.

According to the “2024 Power SiC and GaN Compound Semiconductor Market Monitor” by Yole Intelligence, the global GaN power device market is anticipated to grow at a compound annual growth rate (CAGR) of 41%, reaching a value of $2 billion by 2029. Concurrently, ICeGaN® is emerging as a viable alternative to Silicon Carbide (SiC), offering a blend of high energy efficiency, miniaturization, and integrated smart functionalities. This positions Cambridge GaN Devices to tap into a high-power market estimated to exceed $10 billion by 2029, as per Yole's projections.

John Pearson, Chief Investment Officer at Parkwalk Advisors, commended CGD for its pioneering technology that has the potential to reduce energy demands in burgeoning industries like artificial intelligence and electric mobility. Pearson highlighted the global potential and diverse applications of CGD's technology, predicting continued innovation and growth for the company. George Mills, Director at Deeptech, Direct & Co-Investments, British Patient Capital, emphasized the significance of CGD's semiconductor technology, noting its superior energy efficiency compared to silicon-based alternatives. Mills stressed the importance of long-term capital infusion to scale up this valuable technology.