With the aim to reinforce its global leadership in power systems, the German chip-maker will utilize the existing liquidity to fund the planned acquisition
German semiconductor company Infineon Technologies AG and Canadian Gallium nitride (GaN) power semiconductors provider, GaN Systems Inc. recently announced that the companies have signed a definitive agreement under which Infineon will acquire GaN Systems for $830 million. In an official note, the acquirer pointed out that GaN, as a wide bandgap material, offers customer value through higher power density, higher efficiency, and size reductions, especially at higher switching frequencies, enabling energy savings and smaller form factors.
Saying that GaN technology is paving the way for more energy-efficient and CO2-saving solutions that support decarbonization, the CEO of Infineon, Jochen Hanebeck stated, “Adoption in applications like mobile charging, data centre power supplies, residential solar inverters, and onboard chargers for electric vehicles is at the tipping point, leading to a dynamic market growth. The planned acquisition of GaN Systems will significantly accelerate our GaN roadmap, based on unmatched R&D resources, application understanding and customer project pipeline. Following our strategy, the combination will further strengthen Infineon’s leadership in Power Systems through mastery of all relevant power technologies, be it on silicon, silicon carbide or gallium nitride.”
Quoting Yole, Compound Semiconductor Market Monitor-Module I Q4 2022, the press note mentioned that the GaN revenue for power applications is expected to grow by 56% CAGR to around US$2 billion by 2027.
“The GaN Systems team is excited about teaming up with Infineon to create highly differentiating customer offerings, based on bringing together complementary strengths,” remarked the CEO of GaN Systems, Jim Witham. “With our joint expertise in providing superior solutions, we will optimally leverage the potential of GaN. Combining GaN Systems’ foundry corridors with Infineon’s in-house manufacturing capacity enables maximum growth capability to serve the accelerating adoption of GaN in a wide range of our target markets. I am very proud of what GaN Systems has accomplished so far and cannot wait to help write the next chapter together with Infineon. As an integrated device manufacturer with a broad technology capability, Infineon enables us to unleash our full potential.”
Both companies believe that GaN is increasingly becoming a key material for power semiconductors, alongside silicon and silicon-carbide, and coupled with new topologies, such as Hybrid Flyback and multi-level implementations. To strengthen its market position in this underserved domain, Infineon invested over €2 billion in a new frontend fab in Malaysia last year. Notably, the first wafers will leave the fab in the second half of 2024.
It is learnt that the existing liquidity will fund the planned acquisition of GaN Systems in an all-cash transaction, which is subject to customary closing conditions, including regulatory approvals.
Munich-headquartered Infineon Technologies AG identifies as a global semiconductor leader in power systems and IoT. Its products and solutions are aimed at driving decarbonization and digitalization. The 1999-born company has around 56,200 employees worldwide.
Canada-based GaN Systems is a leading global company in GaN power semiconductors which aims to provide transistors to demanding industries including consumer electronics, data centre servers and power supplies, renewable energy systems, industrial motors, and automotive electronics.