Power Integrations to Acquire the Assets of Odyssey Semiconductor

Rhea-AI Summary

Power Integrations, a leader in high-voltage integrated circuits for energy-efficient power conversion, announced the acquisition of Odyssey Semiconductor Technologies, a developer of vertical gallium-nitride (GaN) transistor technology. The transaction is expected to close in July 2024, with all key Odyssey employees joining Power Integrations. This acquisition will support the development of Power Integrations' PowiGaN™ technology, enhancing their product families and expanding their voltage and power capabilities.

Positive

• Acquisition of Odyssey Semiconductor Technologies to enhance Power Integrations' GaN technology development

• Addition of Odyssey Semiconductor team to accelerate PowiGaN technology roadmap

• Power Integrations at the forefront of GaN development and commercialization since 2018

Negative

• Cost implications and financial impact of the acquisition on Power Integrations

• Potential challenges in integrating Odyssey Semiconductor's technology and team into Power Integrations

Insights

Technology Analyst

Power Integrations' strategic acquisition of Odyssey Semiconductor Technologies' assets underscores the company's commitment to advancing gallium nitride (GaN) technology. GaN is swiftly becoming a cornerstone for high-power and high-efficiency applications, mirroring a broader industry shift to prioritize energy efficiency in power conversion. The vertical GaN transistor technology that Odyssey specializes in, which enables high current handling and potentially lower production costs, could provide Power Integrations with a competitive edge in the power semiconductor market. This move may well be interpreted as a proactive approach to secure intellectual property and talent, potentially reducing time-to-market for advanced GaN solutions. Furthermore, the synergy between the Odyssey team's expertise and Power Integrations' existing product lines, such as InnoSwitch ICs and HiperPFS power-factor-correction ICs, suggests potential for enhanced product offerings. Investors should monitor the post-acquisition integration progress and potential market expansion in the high-voltage sector, where SiC currently dominates.

Market Research Analyst

From a market perspective, this acquisition represents Power Integrations' response to the growing demand for high-voltage applications. The strategic alignment with the industry's push towards reducing the carbon footprint through improved energy efficiency in ICs could lead to an expansion of Power Integrations' market share. GaN components are important in applications ranging from renewable energy systems to electric vehicles, a sector poised for significant growth. The company's investment in high-current and high-voltage GaN technology development could catalyze advancements in these fields, offering broader implications for the semiconductor industry. By potentially driving down costs and enhancing performance, Power Integrations may be well-positioned to disrupt the existing SiC-dominated market, appealing to investors focused on sustainable technology growth areas.

Financial Analyst

From a financial standpoint, the acquisition's impact hinges on the successful integration and commercialization of Odyssey's vertical GaN technology within Power Integrations' existing product suite. Optimally, this should result in cost savings and increased revenue streams in the long term, as GaN technology reaches cost parity with silicon MOSFETs. The forward-looking statements by executives suggest an aggressive effort to capture market share in the SiC-dominated space, which could lead to an improved bottom line if higher performance at lower costs is achieved. However, the full financial implications will depend on market adoption rates and the effectiveness of integrating the acquired assets and talent. Investors should consider the capital expenditure involved in the acquisition and the potential return on investment, particularly in the context of Power Integrations' overall growth strategy and the competitive landscape of the power semiconductor industry.

Transaction supports continuing development of high-voltage, high-power GaN technology

SAN JOSE, Calif.--(BUSINESS WIRE)-- Power Integrations (NASDAQ: POWI), the leader in high-voltage integrated circuits for energy-efficient power conversion, today announced an agreement to acquire the assets of Odyssey Semiconductor Technologies (OTCQB: ODII), a developer of vertical gallium-nitride (GaN) transistor technology. The transaction is expected to close in July 2024, after which all key Odyssey employees are expected to join Power Integrations’ technology organization.

The acquisition supports the company’s ongoing development roadmap for its proprietary PowiGaN™ technology, which is featured in many of the company’s product families including InnoSwitch™ ICs, HiperPFS™-5 power-factor-correction ICs and the recently launched InnoMux™-2 family of single-stage, multiple-output ICs. The company introduced 900- and 1250-volt versions of PowiGaN technology and products in 2023.

Commented Dr. Radu Barsan, Power Integrations’ vice president of technology: “Power Integrations has been at the forefront of GaN development and commercialization since we began shipping products with PowiGaN technology in 2018. We are executing on an ambitious roadmap that includes driving toward cost parity with silicon MOSFETs and expanding the voltage and power capabilities of PowiGaN. Our goal is to commercialize a cost-effective high-current and high-voltage GaN technology to support higher-power applications currently served by silicon carbide (SiC), at a much lower cost and higher performance enabled by the fundamental material advantages of GaN over SiC. The experience of the Odyssey team in high-current vertical GaN will augment and accelerate these efforts, and we are delighted to add them to our team.”

Added Dr. Richard Brown, Odyssey co-founder and CEO: “The Odyssey team and I are excited to join Power Integrations in accelerating their GaN technology roadmap. As the first company to commercialize high-voltage GaN, Power Integrations continues to lead the industry in driving the technology forward in terms of cost, voltage and current, as well as the design of system-level products that take full advantage of the capabilities of GaN.”

About Power Integrations

Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts. For more information, please visit www.power.com.

Power Integrations, PowiGaN, InnoSwitch, HiperPFS, InnoMux and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc. All other trademarks are property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240507031104/en/

Joe Shiffler

Power Integrations, Inc.

(408) 414-8528

joe@power.com

Source: Power Integrations, Inc.

FAQ

When is the expected closing date for the acquisition of Odyssey Semiconductor Technologies by Power Integrations?

The transaction is expected to close in July 2024.

What technology is Power Integrations focusing on with the acquisition of Odyssey Semiconductor Technologies?

Power Integrations is enhancing their PowiGaN™ technology through the acquisition.

Who will be joining Power Integrations' technology organization after the acquisition?

All key Odyssey employees are expected to join Power Integrations after the acquisition.

What GaN technology versions did Power Integrations introduce in 2023?

Power Integrations introduced 900- and 1250-volt versions of PowiGaN technology and products in 2023.

What are the benefits of GaN technology over silicon carbide (SiC) according to Dr. Radu Barsan?

Dr. Radu Barsan mentions that GaN technology offers lower cost and higher performance compared to silicon carbide (SiC), enabling higher-power applications at a lower cost.

Who is Dr. Richard Brown in relation to Odyssey Semiconductor Technologies?

Dr. Richard Brown is the co-founder and CEO of Odyssey Semiconductor Technologies.

What is the focus of Power Integrations' GaN technology roadmap according to Dr. Radu Barsan?

Dr. Radu Barsan states that Power Integrations aims to commercialize a cost-effective high-current and high-voltage GaN technology to support higher-power applications currently served by silicon carbide (SiC), at a much lower cost and higher performance.