Infineon has acquired International Rectifier for $3bn. The acquisition creates a behemoth in power management technology. Infineon expands its product portfolio, gets access to International Rectifier’s acclaimed Gallium Nitride on Silicon (GaN) process for power semiconductors, gains a higher profile in the US as well as a larger regional footprint particularly in Asia/Pacific.
The transaction is expected to close late in the calendar year 2014 or early in the calendar year 2015 subject to regulatory approval.
Infineon’s and International Rectifier’s product portfolios are highly complementary. International Rectifier’s expertise in low-power, energy-efficient IGBTs and Intelligent Power Modules, Power MOSFETs and Digital Power Management ICs will integrate well with Infineon’s offering in power devices and modules.
The access to IR’s GaN technology solidifies Infineon’s position in GaN discretes and GaN system solutions, improving its ability to pursue this strategically important technology platform with significant future growth potential.
The increase in exposure to the distribution channel will allow Infineon to meet the needs of a broader range of customers. Infineon and IR include Arrow and Avnet in their distribution network. On a global front IR also has Future Electronics as a distributor as well as specialists in the UK, France, Germany and Italy. IR also has an extensive distribution network in the Asia/Pacific region where Arrow and Avnet compete against a strong slate of local distributors.
Infineon expects the integration of International Rectifier to generate economies of scale through optimisation of the combined entity’s operating expense structure and through the acceleration of the ramp-up of Infineon’s leading 300-millimeter thin wafer manufacturing capability.
Oleg Khaykin, President and CEO of International Rectifier, said: “This transaction provides significant value to our stockholders and opens new strategic opportunities for both our customers and employees. By combining two complementary providers in power management solutions, International Rectifier will benefit from Infineon’s products and technologies, manufacturing and operational excellence and greater R&D scale.”