Nano Semiconductor, the leader of gallium nitride power chip industry, announced the acquisition of GeneSiC, the pioneer of silicon carbide industry, and became the only company focusing on the next generation power semiconductor company in Gondo, Else, California. August 15, 2022-Nano Semiconductor, the leader of gallium nitride (GaN) power chip industry, officially announced the acquisition of GeneSiC Semiconductor today, which has profound expertise in the design and process of silicon carbide (SiC) power devices. Due to GeneSiC’s rich profits, EBITDA’s profit margin exceeds 25%, so the transaction immediately adds value to Nano Semiconductor. GeneSiC’s revenue in 2022 is estimated to be about $25 million, with an annual growth rate of over 60%. The merged company has created a comprehensive and industry-leading technology portfolio in the field of next-generation power semiconductors (GaN and SiC). By 2026, the total market opportunity is expected to exceed $20 billion every year. Gene Sheridan, CEO and co-founder of Nano Semiconductor, said: "GeneSiC is an ideal partner of Nano Semiconductor, and they are focused on developing industry-leading SiC technology and achieving success. Nano Semiconductor has invested heavily in global sales, operation and technical support teams and system design centers for electric vehicles and data centers. These functions are a perfect complement to GeneSiC.It will further accelerate its growth in synergy and new customers and markets. Today, we have taken an important step in realizing the mission of’ ‘Electrify Our World?’, and will continue to push our planet to transition from relying on fossil fuels to clean and efficient electricity. Dr. Ranbir Singh, President of GeneSiC, said: "GeneSiC’s patented advanced technology and innovative and experienced team are the key factors for the development of our company. Our SiC MOSFET provides the highest performance, reliability and durability in the industry-these parameters are very important for the wide adoption of electric vehicles and related infrastructure. With nearly 20 years of leading research and development, mature platforms, more than 500 different customers and growing revenue and profitability, we can use Nano Semiconductor’s expertise in mass production and market entry strategy to accelerate SiC revenue. We are very excited about this new partnership. " Dr Singh will be the executive vice president of GeneSiC business after joining Nano Semiconductor, and Nano will keep all the members of GeneSiC team. In power semiconductors, both GaN and SiC are superior to traditional silicon materials, which can achieve higher speed, more significant energy saving, faster charging, and significantly reduce size, weight and cost.These complementary next-generation materials jointly solve various applications ranging from 20W smart phone charger to 20kW electric vehicle charger to 20MW power grid infrastructure system and between them. GeneSiC has more than 500 customers, and this acquisition will bring diversification and synergy to the market and customers of Nano Semiconductor. And speed up the revenue of Nano Micro in strategic and higher power applications: 01 The gallium nitride power chip of Nano Micro Semiconductor for electric vehicles is optimized for the 400V EV system, and GeneSiC technology is an ideal choice for the 800V EV system. Its existing revenue and development customers include BYD, Land Rover, Mercedes AMG, Geely, Shinry, LG Magna, Saab and Inovance, the world’s largest electric vehicle supplier, and dozens of other companies. 02 solar energy and nano-gallium nitride power chips for energy storage serve residential solar energy, while GeneSiC obtains direct income from higher power, commercial solar energy and energy storage customers, including APS, Advanced Energy, Chint, Sungrow, Growatt, CATL, Exide, etc. Wider industrial market GeneSiC high-voltage products bring direct income in a wide range of other industrial markets such as railways, UPS, wind energy, power grid, industrial motors and medical imaging.The acquisition of GeneSiC is expected to immediately increase the earnings per share of Nano Semiconductor. The total purchase price includes about US$ 100 million in cash, 24.9 million shares of Nano Semiconductor, and an additional consideration of up to US$ 25 million depending on the sales compliance, which is based on the considerable revenue target achieved by GeneSiC business in the four fiscal quarters ending September 30, 2023. For more information about GeneSiC, please visit ir.navitassemi.com. Jefferies LLC, a consultancy, is the financial adviser of Nano Semiconductor, and Bank of America is the financial adviser of GeneSiC. TCF Law Group, PLLC served as legal counsel for Nano, and Gibson, Dunn & Crutcher LLP served as legal counsel for GeneSiC. The acquisition of GeneSiC by teleconference and webcast information is part of the teleconference of Nano Semiconductor’s second quarter financial report in 2022: Time: Monday, August 15th, 2022 Time: 2: 00pm Pacific Time/5: 00pm EST Toll-free dial: (800) 715-9871 or (646) 307-1963 Conference number: 686703.Warning Statement on Forward-looking Statements This press release includes "forward-looking statements" as referred to in Article 21E of securities exchange act of 1934 (revised edition). Forward-looking statements may use expressions such as "we expect", "forecast", "estimate", "plan", "plan", "expect", "believe" seek ",and may also use other similar expressions aimed at predicting or indicating future events and trends or not stating historical situations. These forward-looking statements include, but are not limited to, estimates and forecasts of other financial and performance indicators, as well as prospects of market opportunities and market share. Whether it is specifically stated in this press release or not, the above statements are based on various assumptions, based on the current expectations of Nano’s management, and are not actual performance forecasts. Forward-looking statements are for demonstration purposes only, and are not guarantees, guarantees, predictions or conclusions for any facts or probabilities. Nor can investors trust forward-looking statements as guarantees, guarantees, predictions or conclusions related to facts or probabilities. Actual events and situations are difficult or even unpredictable, and will be different from assumptions and expectations. Many actual events and situations that affect performance are beyond Nano’s control. There are many risks and uncertainties affecting forward-looking statements, which are affected by many risks and uncertainties, including the possibility that the expected growth of nano-semiconductor and GeneSiC business will not be realized or will not be realized within the expected time period, including: the failure to successfully integrate GeneSiC into the business and operation system of nano-semiconductor;The impact of the acquisition on the relationship between customers and suppliers or the failure to retain and expand these relationships; The success or failure of other business development efforts; Financial status and operating performance of Nano; Nano’s ability to accurately predict future income so as to properly formulate budgets and adjust nano’s costs and expenses; Nano’s ability to diversify its customer base and develop relationships in new markets; Nano’s ability to expand its technology to new markets and applications; The influence of competition on nano-micro business, including the behavior of competitors with established existence and resources in the market we hope to penetrate (including silicon carbide market); The demand level of Nano and GeneSiC’s customer terminal market, whether in general or in terms of successive generations of products or technologies; Nano’s ability to attract, train and retain key qualified talents; Changes in government trade policies, including the imposition of tariffs; The impact of COVID-19 pandemic on Nano’s business, operating performance and financial status; The impact of COVID-19 pandemic on the global economy, including but not limited to the supply chain of Nano and the supply chain of customers and suppliers; Regulatory development in the United States and foreign countries; And nano micro’s ability to protect its intellectual property rights. On March 31, 2022, the Company submitted the annual report on Form 10-K for the year ended December 31, 2021 (including subsequent revisions), the "Risk Factors" section starting on page 11 of the annual report and other documents submitted by the Company to the SEC thereafter.Including our quarterly report on Form 10-Q, the above and other risk factors have been discussed. If any of the above risks come true, or the actual situation proves that our assumptions are incorrect, then the actual results may be quite different from those shown in the forward-looking statements. There may also be some risks that Nano does not know or think are not important at present, and may also lead to substantial differences between actual results and forward-looking statements. In addition, the forward-looking statements reflect Na Wei’s views as of the date of this press release and his expectations, plans or predictions for future events. Nano expects that the evaluation results will change with future events and developments. Although Nano may adjust and update its forward-looking statements in the future, it hereby declares that Nano has no obligation to adjust and update. After the release of this press release, forward-looking statements should not be used as the basis for evaluating Nano.