Canadian semiconductor firm GaN Programs Inc. has agreed to be acquired by Germany-based chip maker Infineon Applied sciences AG for US$830 million.

The all-cash deal for the Ottawa-headquartered firm, which is scaling up know-how to serve the automotive business and a variety of different sectors, was introduced Might 2.

GaN Programs CEO Jim Witham mentioned the acquisition brings collectively firms with “complementary strengths.”

“Combining GaN Programs’ foundry corridors with Infineon’s in-house manufacturing capability allows most development functionality to serve the accelerating adoption of GaN in a variety of our goal markets,” he mentioned in a launch.

GaN Programs designs high-efficiency energy transistors made from gallium nitride, or GaN. They’re each smaller and extra environment friendly than their conventional silicon counterparts. The corporate is focusing on a variety of finish markets, with electrical autos chief amongst them. Witham advised Automotive Information Canada in late 2021 that 9 out of 10 world automakers and Tier 1 suppliers have been contemplating the corporate’s transistors in designs for his or her next-generation autos and components.

A pair of auto gamers even have direct stakes within the enterprise. Elements provider Vitesco Applied sciences Group and the enterprise capital arm of BMW are amongst GaN Programs’ traders.

Infineon CEO Jochen Hanebeck, mentioned GaN know-how is poised to interrupt right into a sequence of various industries, and that the acquisition will velocity the corporate’s entry into the market.

“The deliberate acquisition of GaN Programs will considerably speed up our GaN roadmap, based mostly on unmatched R&D assets, utility understanding and buyer challenge pipeline,” he mentioned in a launch.

In contrast to the Canadian firm, which is what’s generally known as a “fabless” chip maker as a result of it designs however doesn’t fabricate its personal merchandise, Infineon has its personal chip foundry in Austria, and one other deliberate for Malaysia.

GaN Programs employs greater than 200 individuals, primarily at places of work in Ottawa and Taiwan.

The acquisition stays topic to sure closing situations, together with regulatory approvals.