Gallium nitride power chip company Navitas Semiconductor will acquire Live Oak II

Navitas Semiconductor, an industry leader in GaN power chips, will go public through a merger with Live Oak II special purpose acquisition company with an enterprise value of $1.04 billion

•The transaction will raise approximately US$400 million in funds, including oversubscription of additional shares worth US$145 million by several investment institutions in the form of equity subscription.

•The funds will be used to accelerate product development and expansion into the $13 billion potential market for power semiconductors, including mobile, consumer, enterprise, renewable energy and electric vehicle/e-mobility.

•Navitas estimates that its proprietary, highly patented GaNFast™ power chips are half the size and weight of older silicon chips, but charge up to three times faster and save up to 40% energy.

•Navitas Semiconductor has delivered more than 18 million GaNFast™ power chips to dozens of high-end customers including Dell, Lenovo, Xiaomi, OPPO, LG, Amazon, Belkin, etc., without receiving any failure reports.

•Navitas Semiconductor's manufacturers have committed to Navitas production capacity far exceeding current forecasts and are fully confident that they can meet strong customer demand.

•Navitas Semiconductor estimates that by 2050, GaN power chips could reduce carbon dioxide emissions by up to 2.6 billion tons per year.

DUBLIN, Ireland and MEMPHIS, Tennessee – (NYSE: LOKB) – Navitas Semiconductor (the “Company” or “Navitas”), an industry leader in GaN power chips, today announced that it has entered into a definitive agreement to merge with Live Oak Acquisition Corp. II (“Live Oak II”), a publicly traded special purpose acquisition company. The combined entity is valued at $1.4 billion. The transaction will result in Navitas becoming a publicly traded company listed on a national securities exchange in the United States under a new ticker symbol.

Gallium nitride (GaN) is a new generation of semiconductor technology that runs 20 times faster than old silicon (Si) chips and can achieve a 3x increase in charging power and speed while halving the volume and weight. Navitas GaNFast™ power chips integrate gallium nitride devices and have drive, protection and control functions. They are easy to use, compact, faster to charge and more energy-efficient.

Navitas predicts that driven by the continued development of the Internet, the replacement of fossil fuels with electric power, and the growing demand for efficient sustainable energy, the market size of GaN chips may grow to more than $13 billion in 2026. Markets include mobile, consumer, enterprise (data center, 5G), renewable energy (solar energy, energy storage) and electric vehicles/electric transportation.

Navitas has a mature leadership team with rich industry experience, more than 300 years of combined experience in the power semiconductor industry, and an extraordinary record of value creation. Under the leadership of this team, Navitas has successfully achieved mass production and is continuously increasing shipments to major OEM and aftermarket suppliers of Dell, Lenovo, LG, Xiaomi, OPPO, Amazon, Belkin and dozens of other companies. Navitas has now delivered more than 18 million GaNFast™ power chips without any failure reports.

With a proprietary process design kit (PDK) and more than 120 patents granted or pending, Navitas has a first-mover advantage in the GaN market. A robust roadmap for next-generation GaN and continued cost reductions accelerate the transition from CO2-emitting fossil fuels to “Electrify Our World™.” Navitas estimates that GaN could reduce CO2 emissions by up to 2.6 billion tons per year by 2050.

Gene Sheridan, Navitas Co-Founder and CEO, commented: "Navitas was founded to revolutionize the world of power electronics while addressing the critical sustainability challenges facing our planet. Navitas' world-class team has not only invented and patented revolutionary new technologies, but has also overcome all of the critical barriers to successfully bringing these technologies to market. We are proud to enter the capital markets with strong operational momentum and with investment partners who are passionate about our long-term mission."

"We are thrilled to be working with Navitas," said Rick Hendrix, CEO of Live Oak. "This is the most compelling opportunity we have seen in the semiconductor industry. We are excited about the potential that Navitas' solutions can make to significantly reduce carbon emissions through more efficient power delivery. The funds raised from this transaction will enable Navitas to accelerate this vision, moving beyond mobile and consumer markets to more power-hungry applications such as data centers, solar and electric vehicles, and significantly reducing CO2 emissions as part of Navitas' Net Zero initiative."

Navitas was initially funded by the company's management team and top venture capitalists with a long-term excellent investment track record, with a strong focus on disruptive businesses in the clean technology and electronics industries. Capricorn Investment Group, Atlantic Bridge, seed investor Malibu IQ and all current investors will transfer 100% of their equity into this transaction. David Moxam, founder of Malibu IQ, pointed out: "The doubling demand for electricity is driving the global energy transition. Navitas' gallium nitride power chips have produced a strong and positive energy efficiency impact that benefits the world."