Germany-based Infineon Technologies has announced on October 24 the closing of the acquisition of GaN Systems Inc.
Based in Ottawa, Canada, GaN Systems brings with it a broad portfolio of gallium nitride (GaN)-based power conversion solutions and leading-edge application know-how, according to an Infineon press release. All required regulatory clearances have been obtained and GaN Systems has become part of Infineon effective as of the closing.
"GaN technology is paving the way for more energy-efficient and CO 2-saving solutions that support decarbonization," said Jochen Hanebeck, CEO of Infineon. "The acquisition of GaN Systems significantly accelerates our GaN roadmap and further strengthens Infineon's leadership in power systems through mastery of all relevant power semiconductor technologies. We welcome our new colleagues from GaN Systems to Infineon."
Infineon now has a total of 450 GaN experts and more than 350 GaN patent families, which expands the company's leading position in power semiconductors and considerably speeds up time-to-market. Both companies' complementary strengths in IP and application understanding as well as a well-filled customer project pipeline put Infineon in an excellent position to address various fast-growth applications.
On 2 March 2023, Infineon and GaN Systems announced that the companies had signed a definitive agreement under which Infineon would acquire GaN Systems for US$830 million. The acquisition, an all-cash transaction, was funded from existing liquidity.
Infineon has been working to strengthen its wide bandgap portfolio, seeking a leadership position in power systems across all materials. The company already tapped into silicon carbide (SiC) technology for its diode and MOSFET products, targeting a 30% market share by end of decade via capacity expansion in Villach, Austria and Kulim, Malaysia. Notably, the expansion plan in Kulim aims to build the world's largest 200mm SiC wafer fab when completed in the summer of 2027. Infineon estimates that its SiC revenue will be US$1 billion by fiscal 2025, and the figure will rise to US$7 billion around 2030's. Overall, Infineon sees a CAGR of 31% between 2022 and 2028 for the SiC market.
When it comes to the market for GaN - to be used in Infineon's HEMT and driver offerings - Infineon sees a CAGR of 52% between 2022 and 2028, with US$6 billion of cumulative market potential over the next five years. In fact, the company expects GaN to be the preferred technology in multiple end applications by 2030. For sectors like chargers, on-board chargers and servers, Infineon believes a tipping point is in sight, while transition to GaN is coming up in applications such as low-power motor control and residential solar.
