CHRYSALIX EVC FUND: CELP III
PORTFOLIO MANAGER: MIKE SHERMAN
LOCATION: OTTAWA, ONTARIO
The limitations in speed, temperature, and power handling ability of silicon power conversion products.
Gallium Nitride-based power conversion semiconductors that result in more energy efficient and lower-cost electronics products and renewable energy solutions.
After many false dawns, Chrysalix EVC believes that the time has arrived for gallium nitride to be a credible material alternative to silicon for power electronics, a $14 billion market today. With this comes massive disruption to the existing silicon value chain, and the opportunity for unique differentiated technologies to capture enormous value in power electronics. Within this market context, we saw device design as the best place to play in this value chain as it sits immediately upstream from existing foundry overcapacity, and downstream from EPI wafer supply. Chrysalix EVC believes gallium nitride on silicon EPI wafer supply will become commoditized far faster than is anticipated.
The company’s device design solution, stemming from ten years of research from the National Research Council of Canada, is unique, elegant, and fundamentally allows gallium nitride on silicon to be recast from a material for high-end power electronic applications to one that can credibly compete with silicon within the entire power device market. GaN Systems designs enable devices ¼ the cost of competing approaches to gallium nitride power electronics. Additionally, the senior management team has a track record of start-up success.
Power electronics will become more energy efficient overall leading to reductions in system cost (e.g. heat sinks, inductors), weight, and CO2. For context, in the U.S. alone, if all silicon power electronics were replaced with gallium nitride ones, the amount of CO2 saved would be equivalent to taking 318 coal power plants offline. For clean energy applications in particular, GaN Systems’ solutions will enable higher efficiencies, lower system costs, and better overall economics making them a likely first adopter.