Infineon Technologies (hereinafter Infineon) is solidifying its leadership in the power systems sector by acquiring a company specializing in GaN, which has established itself as a key material for power semiconductors.

Infineon announced on the 3rd that it has signed an agreement to acquire GaN Systems Inc. for $830 million.

GaN Systems is a technology leader in the development of GaN-based solutions for power conversion, headquartered in Ottawa, Canada, with over 200 employees.

Infineon CEO Jochen Hanebeck said, “Based on GaN Systems’ unrivaled R&D resources, application understanding, and customer project pipelines, we will be able to significantly accelerate Infineon’s GaN roadmap.” "Infineon will further strengthen its leadership in the power systems sector through this acquisition," he said.

GaN, a wide bandgap material, is suitable for various applications and is crucial for implementing CO2 reduction solutions, particularly by enabling higher power density, efficiency, and miniaturization at higher switching frequencies.

GaN technology is being applied to applications such as mobile charging, data center power supplies, residential solar inverters, and onboard chargers for electric vehicles, and the market is growing rapidly.

According to Yole's 'Compound Semiconductor Market Monitor - Module I Q4 2022' market analysis, GaN sales for power applications are projected to grow at an average annual rate of 56 percent to reach approximately $2 billion by 2027.

Infineon announced last February that it would invest more than 2 billion euros in a new front-end fab located in Kulim, Malaysia, to strengthen its position in the wide bandgap market, and plans to begin supplying wafers in the second half of 2024.

Infineon stated, "The acquisition of GaN Systems will be a cash transaction funded by existing liquidity," adding that "the transaction is subject to customary closing conditions, including regulatory approvals."