3 March 2023
Infineon to acquire GaN Systems for US$830m
Infineon Technologies AG of Munich, Germany has signed a definitive agreement to acquire GaN Systems Inc of Ottawa, Ontario, Canada (a fabless developer of gallium nitride-based power switching semiconductors for power conversion and control applications) for US$830m. Employing more than 200 staff, GaN Systems has a broad portfolio of transistors that address applications including consumer electronics, data-center servers and power supplies, renewable energy systems, industrial motors, and automotive electronics.
“GaN technology is paving the way for more energy-efficient and CO2-saving solutions that support decarbonization. Adoption in applications like mobile charging, data-center power supplies, residential solar inverters, and onboard chargers for electric vehicles is at the tipping point, leading to a dynamic market growth,” says Infineon’s CEO Jochen Hanebeck. “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,” he adds.
“The GaN Systems team is excited about teaming up with Infineon to create highly differentiating customer offerings, based on bringing together complementary strengths. With our joint expertise in providing superior solutions, we will optimally leverage the potential of GaN,” says GaN Systems’ CEO Jim Witham. “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,” he adds. “As an integrated device manufacturer with a broad technology capability, Infineon enables us to unleash our full potential.”
As a wide-bandgap material, GaN offers value through 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 to a wide range of applications. GaN revenue for power applications will rise at a compound annual growth rate (CAGR) of 56% to about US$2bn by 2027, according to ‘Compound Semiconductor Market Monitor-Module I Q4 2022’ from market analyst firm Yole. As such, GaN is 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. In February 2022, Infineon said that it was investing more than €2bn in a new front-end fab in Kulim, Malaysia, to strengthen its market position in wide-bandgap semiconductors. The first wafers will leave the fab in second-half 2024, adding to Infineon’s existing wide-bandgap manufacturing capacities in Villach, 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.