Analysis

Infineon acquires 9.4% of Schweizer

26th November 2014
Nat Bowers
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Infineon Technologies has announced that it will acquire a 9.4% stake in Schweizer Electronic. The relevant contracts were concluded today with both companies agreeing on strict confidentiality regarding the terms.

This investment emphasises Infineon's intention to jointly develop technologies for the integration of power semiconductors into PCBs and to tap the chip embedding market for high-power automotive and industrial applications. Schweizer’s chip embedding technology will round out Infineon’s proprietary chip embedding packaging technology BLADE, used for DC/DC conversion required for processors in computer and telecomms systems.

While PCBs now have chips connected to their front and backside, chip embedding will permit that the semiconductors can be 'embedded' inside the PCB in the future. This will benefit space-critical systems in vehicles, such as electric power steering, active suspension or electrical pumps. The heat created by the chips is dissipated directly via the PCB, improving cooling. This is particularly beneficial for applications that require high power and whose power semiconductors currently need elaborate cooling, including compressors in a vehicle air-conditioning system, where electrical power may reach up to 2kW.

The automotive industry expects the 48V network to gain importance besides the already present 12V on-board network. Since higher electrical power can be used this way, it will be easier to expand hybrid functionality ('eTurbo' with 5 to 20kW) to lower and medium price vehicle segments.

Dr. Marc Schweizer, CEO, Schweizer Electronic, comments: “System boundaries between PCBs and semiconductors are going to change and this requires new business models. We are expecting a high growth potential here in a few years. Infineon is the technology leader for power semiconductors and Schweizer is a leading manufacturer of high-performance printed circuit boards in the automotive and industrial segments. Owing to their excellent market positions and good customer relations, our two companies are a very good fit. We have already proven this to be the case by our jointly developed demonstrators for tailor-made customer solutions.”

“We improve the performance and energy efficiency of vehicles and industrial applications with system competence and the use of highly innovative technologies," said Dr. Reinhard Ploss, CEO, Infineon Technologies. "Our shareholding in Schweizer Electronic supports us on the road from product thinking to system understanding. Chip embedding yields a great added value for our customers, as their systems become more compact and even more efficient at the same time."

“In the course of its 165-year company history, Schweizer has proven time and again that it generates sustainable business development through its flexibility and capacity to quickly adjust to market trends. The agreement with Infineon is one next step to contribute to shaping the future in the electronics industry," adds Dr. Schweizer.

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