Infineon to Acquire GaN Systems, Strengthening its GaN Portfolio and Further Reinforcing its Global Leadership in Power Systems

Rhea-AI Summary

Infineon Technologies AG has entered into a definitive agreement to acquire GaN Systems Inc. for US$830 million. This acquisition aims to enhance Infineon's GaN roadmap and strengthen its leadership in power systems. GaN technology is crucial for energy-efficient solutions in applications like mobile charging and electric vehicles. Analysts predict GaN revenue for power applications will grow by 56% CAGR to US$2 billion by 2027. The all-cash transaction will utilize existing liquidity and is subject to regulatory approvals.

Positive

• Acquisition of GaN Systems for US$830 million strengthens Infineon's GaN technology portfolio.
• Expected 56% CAGR growth in GaN revenue for power applications, reaching US$2 billion by 2027.
• Combining GaN Systems' foundry capabilities with Infineon's manufacturing enhances growth potential.

Negative

• None.

MUNICH, GERMANY and OTTAWA, ON / ACCESSWIRE / March 2, 2023 / Infineon Technologies AG (FSE:IFX)(OTCQX:IFNNY) and GaN Systems Inc. ("GaN Systems") today 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. 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," said Jochen Hanebeck, CEO of Infineon. "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."

Jim Witham, CEO of GaN Systems, said: "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. 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."

As a wide bandgap material, 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, such as Hybrid Flyback and multi-level implementations. In February 2022, Infineon announced doubling down on wide bandgap by investing more than €2 billion in a new frontend fab in Kulim, Malaysia, strengthening its market position. 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.

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.

# # #

About GaN Systems

GaN Systems is a global leader in GaN power semiconductors with a broad portfolio of transistors which address the needs of today's most demanding industries including consumer electronics, data center servers and power supplies, renewable energy systems, industrial motors, and automotive electronics.

This press release is available online at www.gansystems.com/press-releases Follow us: Twitter - Facebook - LinkedIn

About Infineon

Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The company has around 56,200 employees worldwide and generated revenue of about €14.2 billion in the 2022 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY).

This press release is available online at www.infineon.com/press

Follow us: Twitter - Facebook - LinkedIn

# #

Media Inquiries for GaN Systems:

Beth Trier
Trier and Company for GaN Systems
beth@triercompany.com
United States: 1+415-285-6147

SOURCE: GaN Systems

View source version on accesswire.com:
https://www.accesswire.com/741748/Infineon-to-Acquire-GaN-Systems-Strengthening-its-GaN-Portfolio-and-Further-Reinforcing-its-Global-Leadership-in-Power-Systems

FAQ

What are the details of Infineon's acquisition of GaN Systems (IFNNY)?

Infineon is acquiring GaN Systems for US$830 million in an all-cash transaction, aimed at enhancing its GaN technology offerings.

How will the acquisition affect Infineon's market position (IFNNY)?

The acquisition is expected to strengthen Infineon's leadership in power systems by enhancing its GaN technology roadmap and supporting market growth.

What is the expected growth rate for GaN revenue in the coming years for Infineon (IFNNY)?

Market analysts expect GaN revenue for power applications to grow by 56% CAGR, reaching approximately US$2 billion by 2027.

How will Infineon fund the acquisition of GaN Systems (IFNNY)?

The acquisition will be funded from Infineon’s existing liquidity.

What regulatory approvals are needed for the acquisition of GaN Systems (IFNNY)?

The transaction is subject to customary closing conditions, including regulatory approvals.