STMicroelectronics to Acquire Majority Stake in Gallium Nitride innovator Exagan
March 05 2020 - 3:59AM
STMicroelectronics to Acquire Majority Stake in Gallium
Nitride innovator Exagan
PR N°C2946C
STMicroelectronics to Acquire Majority
Stake in Gallium Nitride innovator
Exagan
Acquisition will accelerate ST’s GaN expertise,
roadmap and business for high-frequency,high-power automotive,
industrial and consumer applications
Geneva, March 5, 2020 – STMicroelectronics
(NYSE: STM), a global semiconductor leader serving customers across
the spectrum of electronics applications, today announced it has
signed an agreement to acquire a majority stake in French Gallium
Nitride (GaN) innovator Exagan. Exagan’s expertise in epitaxy,
product development and application know-how will broaden and
accelerate ST’s power GaN roadmap and business for automotive,
industrial and consumer applications. Exagan will continue to
execute its product roadmap and will be supported by ST in the
deployment of its products.
Terms of the transaction were not disclosed and closing of the
acquisition remains subject to customary regulatory approvals from
French authorities. The signed agreement also provides for the
acquisition by ST of the remaining minority stake in Exagan 24
months after the closing of the acquisition of the majority stake.
The transaction is funded with available cash.
“ST has built strong momentum in silicon carbide and is now
expanding in another very promising compound material, gallium
nitride, to drive adoption of the power products based on GaN by
customers across the automotive, industrial and consumer markets”
said Jean-Marc Chery, President and CEO of
STMicroelectronics. “The acquisition of a majority stake in
Exagan is another step forward in strengthening our global
technology leadership in power semiconductors and our long-term GaN
roadmap, ecosystem and business. It comes in addition to ongoing
developments with CEA-Leti in Tours, France, and the
recently-announced collaboration with TSMC.”
Gallium Nitride (GaN) belongs to the family of wide bandgap
(WBG) materials which include Silicon Carbide. GaN-based devices
represent a major step forward in power electronics providing
high-frequency operation, with increased efficiency and higher
power density compared to silicon-based transistors, leading to
power savings and total system downsizing. GaN products will
address a wide variety of applications such as power factor
correction and DC/DC converters in servers, telecom and industrial
applications, on-board chargers for EV and DC-DC converters for
automotive applications, as well personal electronics applications
like power adaptors.
Founded in 2014 and headquartered in Grenoble (France), Exagan
is dedicated to accelerating the power-electronics industry’s
transition from silicon-based technology to GaN-on-silicon
technology, enabling smaller and more efficient electrical
converters. Its GaN power switches are designed for manufacturing
in standard 200-mm wafer fabs.
Cautionary Information Regarding Forward-Looking
Statements
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995: Any statements set forth above that are
not historical facts are forward-looking statements, including any
statements regarding our future results of operations and financial
positions, business strategy, plans and objectives for future
operations, involve risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. These statements are only predictions, reflect our
current beliefs and expectations with respect to future events, and
are based on assumptions, subject to risk and uncertainties, and
subject to change at any time. Potential risks and uncertainties
include, but are not limited to, such factors as: the possibility
that the transaction may not be consummated, including as a result
of any of the conditions precedent; the risk that the expected
benefits of the acquisition may not be realized; difficulties in
retaining Exagan employees following the acquisition; difficulties
in expanding facilities and transferring processes and know-how;
diversion of our management’s attention from the management of our
business; and the impact of competition and other risk factors
relating to our industry and business as detailed from time to time
in our filings with the United States Securities and Exchange
Commission.
About STMicroelectronicsST is a global
semiconductor leader delivering intelligent and energy-efficient
products and solutions that power the electronics at the heart of
everyday life. ST’s products are found everywhere today, and
together with our customers, we are enabling smarter driving and
smarter factories, cities and homes, along with the next generation
of mobile and Internet of Things devices. By getting more from
technology to get more from life, ST stands for life.augmented.
In 2019, the Company’s net revenues were $9.56 billion, serving
more than 100,000 customers worldwide. Further information can be
found at www.st.com.
For further information, please contact:INVESTOR
RELATIONS:Céline BerthierGroup VP, Investor RelationsTel :
+41.22.929.58.12celine.berthier@st.com
MEDIA RELATIONS:Alexis BretonCorporate External
CommunicationsTel: + 33 6 59 16 79 08alexis.breton@st.com
- C2946C - ST to acquire majority stake in Exagan - Final for
publication
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