Infineon Technologies is set to acquire GaN Systems, a global technology leader in the development of GaN-based solutions for power conversion, for $830 million.

GaN Systems is headquartered in Ottawa, Canada, and has more than 200 employees.

“The 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,” said Jochen Hanebeck, CEO of Infineon.

By 2027, analysts expect the GaN revenue for power applications to grow by 56 percent CAGR to approx. $2 billion. 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 investing of 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.

Infineon Technologies has around 56,200 employees and generated revenue of about €14.2 billion in the 2022 fiscal year ended 30 September.