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Infineon Sells RF Power Business to Cree

Infineon Technologies AG has sold its Radio Frequency (RF) Power Business for approximately €345 million to Cree, Inc., a lighting and semiconductor solutions provider. The transaction expands the company's Wolfspeed Business unit in wireless market opportunity, particularly in RF GaN-on-SiC technologies.

"The acquisition strengthens Wolfspeed's leadership position in RF GaN-on-SiC technologies and provides access to additional markets, customers and packaging expertise," said Cree Chief Executive Officer Gregg Lowe. "This is a key element of Cree's growth strategy and positions Wolfspeed to enable faster 4G networks and the revolutionary transition to 5G."

Infineon and Cree have a long-standing history of technology leadership, collaboration and shared business interests. The acquired Infineon RF Power team and capabilities will complement Wolfspeed's existing offerings and expertise with additional technology, design, packaging, manufacturing, and customer support. This business holds a leading market position offering transistors and Monolithic Microwave Integrated Circuits (MMICs) for wireless infrastructure radio frequency power amplifiers based on both laterally diffused MOSFETs (LDMOS) and Gallium Nitride on Silicon Carbide (GaN-on-SiC) technologies.

The transaction includes Infineon's Morgan Hill facility in California for packaging and test operations for LDMOS and GaN-on-SiC. Cree will also absorb Infineon's well-established customer relationships with leading manufacturers of wireless infrastructure equipment, including field support personnel on site. Aside from the Morgan Hill facility, the subject of the transaction also has locations in Chandler in Arizona as well as in Finland, Sweden, China, and South Korea with approximately 260 employees.

The transaction, however, does not include the Infineon Chip Card & Security (CCS) operations also located in Morgan Hill. This will remain at the site and will continue to operate as part of Infineon.

Infineon said it will support the transaction with a long-term supply agreement for LDMOS wafers and related components out of its fab in Regensburg, Germany, and will also supply assembly and test services out of its facility in Melaka, Malaysia.

"We are looking forward to combining our strengths with Cree," said Gerhard Wolf, Vice President and General Manager, RF Power Products at Infineon. "With our highly skilled and dedicated team, advanced technologies and commitment to business excellence, we look forward to serving our customers seamlessly as the 5G mobile standard ramps up."

Cree funded the €345 million from cash and borrowings on its revolving line of credit. The Infineon RF Power business will become part of Cree's Wolfspeed operating segment and is targeted to increase annual revenues by approximately US$115 million in the first twelve months post acquisition.