Cree buys Infineon RF Power Business for €345 million
Acquisition strengthens Wolfspeed's position in RF GaN-on-SiC technologies
Cree has acquired assets of Infineon Technologies AG Radio Frequency (RF) Power Business for approximately €345 million.
Infineon continues to drive key growth areas such as electro-mobility, autonomous driving, renewables and technologies for a connected world. The transaction has closed and is effective today.
The business holds a leading market position offering transistors and MMICs (Monolithic Microwave Integrated Circuits) for wireless infrastructure radio frequency power amplifiers based on both LDMOS and GaN-on-SiC technologies.
The transaction includes the main facility in Morgan Hill (CA) which includes packaging and test operations for LDMOS and GaN-on-SiC; approximately 260 employees in the US locations as well as in Finland, Sweden, China and South Korea; and a transition service agreement to ensure business continuity and a smooth transition under which Infineon will perform substantially all business operations for approximately the next 90 days.
Infineon will support the transaction with a long-term supply agreement for LDMOS wafers and related components out of its fab in Regensburg, Germany, and will also supply assembly and test services out of its facility in Melaka, Malaysia.
"We are looking forward to combining our strengths with Cree," said Gerhard Wolf, VP and general manager, RF Power Products at Infineon. "With our highly skilled and dedicated team, advanced technologies and commitment to business excellence, we look forward to serving our customers seamlessly as the 5G mobile standard ramps up."
The state-of-the-art backend manufacturing in Morgan Hill, as well as a leading intellectual property (IP) and technology portfolio are also part of the transaction. The transaction does not include the Infineon Chip Card & Security (CCS) operations in Morgan Hill that will remain at the site and continue to operate as part of Infineon.
Cree funded the acquisition from cash and borrowings on its revolving line of credit. The Infineon RF Power business will become part of Cree's Wolfspeed operating segment and is targeted to increase annual revenues by approximately $115 million in the first twelve months post acquisition.
"The acquisition strengthens Wolfspeed's leadership position in RF GaN-on-SiC technologies and provides access to additional markets, customers and packaging expertise," said Cree CEO Gregg Lowe. "This is a key element of Cree's growth strategy and positions Wolfspeed to enable faster 4G networks and the revolutionary transition to 5G."
"Cree is a strong new owner for this portion of our RF business and has an excellent reputation in the industry," said Reinhard Ploss, CEO of Infineon. "We are excited about the business rationale and the prospects for the combined businesses. At the same time, we will be able to focus our resources more effectively on Infineon's strategic growth areas and will retain a strong technology portfolio for the wireless market."
Infineon and Cree have a long-standing history of collaboration and shared business interests. The acquired Infineon RF Power team and capabilities will complement Wolfspeed's existing offerings and expertise with additional technology, design, packaging, manufacturing, and customer support.
