Canadian semiconductor firm GaN Systems Inc. has agreed to be acquired by Germany-based chip maker Infineon Technologies AG for US$830 million.
The all-cash deal for the Ottawa-headquartered firm, which is scaling up know-how to serve the automotive business and a variety of different sectors, was introduced May 2.
GaN Systems CEO Jim Witham mentioned the acquisition brings collectively firms with “complementary strengths.”
“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 mentioned in a launch.
GaN Systems designs high-efficiency energy transistors fabricated from gallium nitride, or GaN. They are each smaller and extra environment friendly than their conventional silicon counterparts. The firm is concentrating on a variety of finish markets, with electrical automobiles chief amongst them. Witham instructed Automotive News Canada in late 2021 that 9 out of 10 international automakers and Tier 1 suppliers have been contemplating the corporate’s transistors in designs for his or her next-generation automobiles and elements.
A pair of auto gamers even have direct stakes within the enterprise. Parts provider Vitesco Technologies Group and the enterprise capital arm of BMW are amongst GaN Systems’ buyers.
Infineon CEO Jochen Hanebeck, mentioned GaN know-how is poised to interrupt right into a collection of various industries, and that the acquisition will velocity the corporate’s entry into the market.
“The planned acquisition of GaN Systems will significantly accelerate our GaN roadmap, based on unmatched R&D resources, application understanding and customer project pipeline,” he mentioned in a launch.
Unlike the Canadian firm, which is what’s referred to as a “fabless” chip maker as a result of it designs however doesn’t fabricate its personal merchandise, Infineon has its personal chip foundry in Austria, and one other deliberate for Malaysia.
GaN Systems employs greater than 200 folks, primarily at workplaces in Ottawa and Taiwan.
The acquisition stays topic to sure closing circumstances, together with regulatory approvals.
Source: canada.autonews.com