ON Semiconductor (ONNN) recently entered into a strategic partnership with Transphorm, a company engaged in the development and marketing of modular power conversion products. Transphorm is also known for its progress in developing and bringing to market gallium nitride (GaN) solutions.
The two companies will create and market GaN based products for a range of high power industrial, computing, telecom and networking applications. The interest in GaN stems from its efficiency in power conversion, especially at higher frequencies, which in turn helps to save costs.
The alliance will complement ON Semiconductor’s existing range of energy efficient power solutions, expertise in system design and a huge portfolio that consists of power discretes, high performance AC/DC controllers and integrated switchers as well as full custom ASIC power management solutions.
With the partnership, ON Semiconductor will gain access to GaN technology, which can help the company boost customer confidence and thereby help it in extend its footprint in the power conversion segment.
The first co-developed solutions based on Transphorm’s production qualified 600 V GaN transistors will be available for sampling towards the end of 2014.
Over the long term, ON Semiconductor is well positioned for growth and market share gains in all its end markets. Also, we expect the product launches and numerous design wins in communication, automotive and industrial markets to act as strong catalysts throughout 2014.
Companies with better prospects at this time are Rambus Inc. (RMBS), Inuvo, Inc. (INUV) and Facebook, Inc. (FB).
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