On March 2, 2023, Infineon Technologies AG and GaN Systems Inc. signed a definitive agreement for Infineon's acquisition of GaN Systems for $1 billion (US$830 million). GaN Systems, a leader in gallium nitride (GaN)-based power conversion solutions, is headquartered in Ottawa, Canada, and employs over 200 staff. The acquisition aims to strengthen Infineon's position in power systems and accelerate its GaN technology roadmap, pivotal for energy-efficient and CO2-saving solutions.

Jochen Hanebeck, CEO of Infineon, highlighted the acquisition's significance in advancing the company's GaN strategy, emphasizing its potential in applications like mobile charging, data centers, solar inverters, and electric vehicle chargers. The integration of GaN Systems is expected to enhance Infineon's capabilities across various power technologies, including silicon and silicon carbide, in addition to GaN.

Jim Witham, CEO of GaN Systems, expressed enthusiasm about the collaboration, anticipating synergies from combined strengths in customer offerings. He noted the benefits of combining GaN Systems' foundry expertise with Infineon's manufacturing capacity to address the expanding GaN market.

GaN is increasingly important in power semiconductors due to its high-power density, efficiency, and suitability for smaller form factors, particularly at high switching frequencies.

The all-cash transaction, funded from existing liquidity, is pending regulatory approvals and customary closing conditions.