Headquartered in Ottawa, GaN Systems develops gallium nitride-based solutions for power conversion
GaN Systems to be acquired by Infineon Technologies for $830m. (Credit: Infineon Technologies AG)
German semiconductor manufacturer Infineon Technologies has agreed to acquire Canada-based GaN Systems in an all-cash deal worth $830m.
Headquartered in Ottawa, GaN Systems develops gallium nitride (GaN) based solutions for power conversion.
GaN Systems CEO Jim Witham said: “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.”
According to Infineon Technologies, gallium nitride as a wide bandgap material provides higher efficiency, higher power density, and size reductions, particularly at higher switching frequencies. These features are expected to allow energy savings and reduced form factors, making it suitable for a wide range of applications, said the company.
Along with silicon and silicon-carbide, gallium nitride is said to be becoming an important material for power semiconductors and can be combined with new topologies, including Hybrid Flyback and multi-level implementations.
Infineon Technologies CEO Jochen Hanebeck said: “GaN technology is paving the way for more energy-efficient and CO2-saving solutions that support decarbonisation.
“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.
“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.”
The German semiconductor manufacturer expects to fund the acquisition of GaN Systems from existing liquidity.
The deal is subject to customary conditions and regulatory approvals.
Infineon Technologies announced a €2bn investment in a new frontend fab in Kulim, Malaysia, in February 2022. The first wafers are expected to be dispatched from the fab in the second half of 2024.
Besides, the company launched the construction of its new facility for analog/mixed-signal technologies and power semiconductors in Dresden, Germany last month.