German chipmaker Infineon and Canada's Gallium Nitride Systems (GaN Systems) announced that they have signed a definitive agreement for Infineon to acquire GaN Systems for $830 million in all-cash funding from existing liquidity, subject to regulatory approvals. GaN Systems develops gallium nitride based power components.

GaN Systems is said to be a GaN power semiconductor manufacturer with a broad portfolio of transistors to meet the needs of today's most demanding industries, including consumer electronics, data center servers and power supplies, renewable energy systems, industrial motors and automotive electronics. The company is headquartered in Ottawa, Canada, and has more than 200 employees.

Gallium nitride technology helps drive decarbonization by clearing the way for more low-carbon and energy-efficient solutions," said Jochen Hanebeck, CEO of Infineon Technologies. GaN technology is at a critical inflection point in applications such as mobile charging, data center power, home solar inverters and electric vehicle on-board chargers, which will drive a booming market. The acquisition of GaN Systems, coupled with Infineon's own strong R&D resources, deep understanding of applications and mature customer project planning, will significantly advance the company's GaN technology roadmap. According to the company's strategy, this acquisition will further strengthen Infineon's leadership position in the power systems sector. Infineon has both silicon, silicon carbide and gallium nitride as its three main power semiconductor technologies."

Gallium Nitride is a broadband material with higher power density, higher efficiency and smaller size, which can play an important role especially in high frequency switching applications, according to the report. With the advantages of low power consumption and miniaturization, GaN devices are extremely suitable for a wide range of applications.