Infineon Technologies AG and Cree jointly announce Infineon’s definitive agreement to acquire the Wolfspeed Power and RF division (“Wolfspeed”) of Cree.
The all-cash transactional value of the deal is said to settle at US Dollar 850 million (approximately Euro 740 million); which includes the related SiC wafer substrate business for power and RF power.
This acquisition is reported to enable Infineon to provide the broadest offering in compound semiconductors and strengthen the company’s expertise in power and RF power solutions in high-growth markets such as electro-mobility, renewables and next-generation cellular infrastructure relevant for IoT.
The duo will accelerate the development of components enabling customers to develop differentiating systems. Major areas where the applications will profit from SiC are renewables and especially automotive. Combining both portfolios and competencies is said to accelerate the time-to-market for new products based on compound semiconductors.
Citing on the acquisition, Dr. Reinhard Ploss, CEO of Infineon Technologies AG, said, “Joining forces with Wolfspeed represents a unique growth opportunity. Wolfspeed’s and Infineon’s businesses and expertise are highly complementary, bringing together industry leading experts for compound semiconductors. This will enable us to create additional value for our customers with the broadest and deepest portfolio of innovative technologies and products in compound semiconductors available in the market. With Wolfspeed we will become number one in SiC-based power semiconductors. We also want to become number one in RF power. This will accelerate the market introduction of these innovative technologies, addressing the needs of modern society – such as energy efficiency, connectivity and mobility.”
Chuck Swoboda, Cree Chairman and CEO, said, “After much consideration and due diligence over the past year, we concluded that selling Wolfspeed to Infineon was the best decision for our shareholders, employees and customers. We believe that Wolfspeed will now be able to more aggressively commercialize its unique silicon carbide and gallium nitride technology as part of Infineon.”
In its release, The German Semiconductor heavyweight asserts that the company will benefit from accelerating the adoption of SiC- and GaN-based components in early-adopter markets, e.g. electro-mobility, high-end photovoltaic inverter, xEV charging infrastructure, and RF power components in cellular infrastructure.
Frank Plastina, Wolfspeed CEO, said, “By joining the Infineon team, Wolfspeed will now have all the advantages of a global company in our sector, including the ability to leverage Infineon’s market reach and infrastructure.”
Wolfspeed is based in Research Triangle Park, North Carolina, USA, and has been a part of Cree for almost three decades.
The deal is expected to get closed by the end of calendar year 2016