Super reverse, the seller changed the buyer
On July 15, 2016, Infineon announced that it will acquire Cree’s Wolfspeed Company for US$850 million in cash. At the time of this report, the industry believed that Infineon’s global “commercial empire” was getting larger and larger. In the field of silicon carbide will also realize the 'one alone big' scene.
Further on February 17, 2017, Cree formally issued a statement that it will terminate the sales of the Wolfspeed Power Supply and RF Department. The reason is that the US review authority (CFIUS) believes that this acquisition will constitute a national security risk in the United States. Cree and Infineon cannot Determined to address alternatives to CFIUS's concern for national security issues, therefore, the proposed transaction between the two parties was terminated. Wolfspeed produced devices using GaN for military use. DLA Piper LLP supervising lawyer Brian Chilton pointed out that this incident shows that the U.S. government will protect national defense. Technology that is highly valued by the industry, the United States does not want to lose the advantage, so whether the acquisition is a German manufacturer or a Chinese manufacturer will be rejected.
Cree and Infineon have a long history of technical, collaborative and shared business interests, Cree and Infineon have come to expect that one year after Cree has changed from a previous sale to being a pro-active one now.
Cree and Infineon are the industry's leading technology companies with their own strengths and the acquisition of Infineon's RF power team and technology will expand Wolfspeed's existing products and technologies such as product design, packaging, manufacturing Customer support services, etc. Infineon continues to drive key growth areas such as electric vehicles, autonomous driving, renewable energy and more.
Cree CEO Gregg Lowe said: "This acquisition strengthens Wolfspeed's leadership position in RF GaN on-SiC technology and offers access to additional markets, customers and packaging technologies." He said, 'This is Cree A key enabler for growth strategy and positioning WolfSpeay for a faster 4G network and a revolutionary transition to 5G. "The deal broadens the wireless market opportunity for Cree Wolfspec's business unit with the goal of capturing the top ten after the acquisition Add $ 151 million in annual revenue in February.
Reinhard Ploss, CEO of Infineon, said: "Cree is a premium buyer in the RF business of Infineon and enjoys a high reputation in the industry. We are excited about the philosophy and future of the merged business. After that, we will be able to focus our resources more effectively on Infineon's strategic growth and will retain a strong technology portfolio for the wireless market. "
5G compound semiconductor demand-driven acquisition
Infineon continues to drive key growth areas such as electric, autonomous driving, renewable energy and technology to create an interconnected world.
Infineon and Cree have a long history of technical leadership, collaboration and common business benefits.The acquired Infineon RF team and capabilities will complement WolfSpeer's existing products and expertise and provide additional technology, design, packaging , Manufacturing and customer support.The business holds a leading market position in providing transistors and MMICs (monolithic microwave integrated circuits) for wireless infrastructure RF power amplifiers based on LDMOS and GalliumNitride based on silicon carbide (GaN-SiC) technology.
It is reported that next-generation cellular infrastructure systems such as 5G will use frequencies up to 80 GHz. Only advanced compound semiconductor devices can achieve the required efficiency at such high frequencies. Silicon-on-GaN devices support higher components Integration, with significant advantages at operating frequencies up to 10 GHz. Silicon carbide based gallium nitride devices can achieve maximum efficiency up to 80 GHz. Both technologies are important for next-generation cellular infrastructure. After Feiling's silicon-based LDMOS product is completed, Wolfspeed will become the industry's most extensive supplier of RF power components.
After completion of the acquisition, Infineon's RF Power business will become part of Cree Wolfspeed's operations. Cree said that the transaction is expected to increase its annual revenue by about US$115 million in the first 12 months after the acquisition and in the first quarter Completion of non-GAAP revenue growth.
Transactions include: Infineon's assets in Morgan Hill, California, USA, including LDMOS and GaN-on-SiC packaging and operations; Factory with good customer base and leading wireless base station manufacturing equipment, employees, and support staff About 260 employees in Morgan Hill, Chandler, Finland, Sweden, China and South Korea;
The transaction also includes a transitional service agreement to ensure business continuity and a smooth transition. Infineon will perform all business operations substantially within the next 90 days.
Infineon will continue to provide Cree with LDMOS wafers and related components and will enter into a long-term supply agreement with LDMOS wafers and related components, which will be provided outside of the factory in Regensburg, Germany, and will be implemented at its site in Malacca The factory provides assembly and testing services.