Infineon is in a buying mood. The German chipmaker has announced the acquisition of GaN Systems, a Canadian manufacturer of gallium nitride (GaN) semiconductor elements.
According to Infineon, GaN Systems is the “global technology leader in the development of GaN-based solutions for power conversion.”
“GaN technology is paving the way for more energy-efficient and CO2-saving solutions that support decarbonization. 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,” says Jochen Hanebeck, CEO of Infineon.
The wide bandgap semiconductor material gallium nitride (GaN) offers added value through higher power density, higher efficiency and reduced sizes, especially at higher switching frequencies. These properties enable energy savings and smaller form factors, making GaN suitable for a wide range of applications.
“With our joint expertise in providing superior solutions, we will optimally leverage the potential of GaN,” GaN Systems CEO Jim Witham adds. “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. “
The purchase price is $830 million. It is an all-cash transaction funded from existing liquidity. The transaction is subject to customary closing conditions, including regulatory approvals.
According to both companies, market analysts expect the GaN revenue for power applications to grow by 56 per cent CAGR to approximately two billion dollars by 2027.
Infineon invested more than €2 billion new frontend fab in Kulim, Malaysia, last year to strengthen its market position on wide bandgap. The first wafers will leave the fab in the second half of 2024, adding to Infineon’s existing wide bandgap manufacturing capacities in Villach, Austria.
Keyword: Infineon acquires Canadian company GaN Systems