Munich, Germany, and Ottawa, Canada – Infineon Technologies AG and GaN Systems has announced that the companies have signed a definitive agreement under which Infineon will acquire GaN Systems for US$830 million. GaN Systems is a global technology leader in the development of GaN-based solutions for power conversion. The company is headquartered in Ottawa, Canada, and has more than 200 employees.
“GaN technology is paving the way for more energy-efficient and CO2-saving solutions that support decarbonization,” said Jochen Hanebeck, CEO of Infineon. “The planned acquisition of GaN Systems will significantly accelerate our GaN roadmap. Following our strategy, the combination will further strengthen Infineon’s leadership in Power Systems.”
Jim Witham, CEO of GaN Systems, said, “The GaN Systems team is excited about teaming up with Infineon to create highly differentiating customer offerings. 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. I am very proud of what GaN Systems has accomplished so far and cannot wait to help write the next chapter. As an integrated device manufacturer with a broad technology capability, Infineon enables us to unleash our full potential.”
GaN:
GaN offers customer value by higher power density, higher efficiency, and size reductions, especially at higher switching frequencies. These properties enable energy savings and smaller form factors, making GaN suited for a wide range of applications. By 2027, market analysts expect the GaN revenue for power applications to grow by 56% CAGR to approx. US$2 billion (source: Yole, Compound Semiconductor Market Monitor-Module I Q4 2022). As such, GaN is becoming a key material for power semiconductors, alongside silicon and silicon-carbide, and coupled with new topologies. In February 2022, Infineon announced doubling down on wide bandgap by investing more than €2 billion in a new frontend fab in Kulim, Malaysia, Austria.
The planned acquisition of GaN Systems in an all-cash transaction will be funded from existing liquidity. The transaction is subject to customary closing conditions, including regulatory approvals.
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