March 6, 2020-STMicroelectronics (ST; New York Stock Exchange code: STM), a leading global semiconductor supplier that spans multiple electronic applications, announced that it has signed a deal to acquire French gallium nitride (GaN) M & A agreement for majority shareholding in innovative company Exagan. Exagan's epitaxial process, product development and application experience will broaden and advance ST's automotive GaN development planning and business for automotive, industrial and consumer use. Exagan will continue to implement existing product development plans, and STMicroelectronics will provide support for its product deployment.
The terms of the transaction between the two parties were not announced, and the transaction can be completed after the French government approves it according to customary transaction regulations. The now signed M & A agreement also stipulates that STMicroelectronics has the right to acquire the remaining minority stake in Exagan 24 months after the completion of the majority share purchase transaction. This transaction will be made available in cash.
Jean-Marc Chery, President and Chief Executive Officer of STMicroelectronics, said: "The development of STMicroelectronics’ silicon carbide is strong, and we are now expanding our investment in another promising composite material, gallium nitride, to promote Customers in the automotive, industrial and consumer markets adopt GaN power products. The acquisition of a majority stake in Exagan is another new measure that strengthens the company's leading position in the global power semiconductor market and our GaN long-term planning, ecosystem and business. Complementing the current development project with CEA-Leti in Tours, France and the recently announced cooperation project with TSMC. "
Gallium nitride (GaN) belongs to the wide band gap (WBG) material family, which includes silicon carbide. GaN-based devices are a major step forward in the high-frequency power electronic device industry. Its energy efficiency and power density are higher than those of silicon-based transistors. GaN-based devices are energy-saving and power-saving, reducing the overall size of the system. GaN devices are suitable for a variety of applications, such as server, telecommunications, and industrial power factor correction and DC / DC converters; electric vehicle car chargers and vehicle regulation DC-DC converters, and power adapters and other personal electronic applications.
Exagan was founded in 2014 and is headquartered in Grenoble, France. The company is committed to advancing the power electronics industry from silicon-based technology to GaN-on-silicon technology, and developing smaller and more energy-efficient power converters. Exagan's GaN power switches are designed for standard 200mm wafers.