Transforming the Future of Power: Infineon Technologies AG Acquires GaN Systems Inc.

By Kasper Sage, BMW i Ventures

We are thrilled to announce that in early November, Infineon Technologies AG, a provider of semiconductor solutions, closed its acquisition of GaN Systems, a supplier of a broad portfolio of gallium nitride (GaN)-based power conversion solutions and leading-edge application know-how. We’re excited that Infineon now boasts “a total of 450 GaN experts and more than 350 GaN patent families, which expands the company’s leading position in power semiconductors and considerably speeds up time-to-market.”

We are convinced that Infineon is an excellent home for GaN Systems, a company we have believed in and supported for many years. Consistent with our goal of driving sustainable mobility, BMW i Ventures made an investment in GaN Systems in July 2017, recognizing that the company’s products maximize the efficiency of electronic systems while dramatically reducing size, weight, and overall system cost. Founded in 2008, GaN Systems uses gallium nitride (GaN), a material more recently applied for chip making that can achieve a significant reduction in power loss compared with traditional silicon-based power transistors.

While gallium nitride transistors only make up 1% of a $16 billion power transistor market, the market is growing at a rapid 59% CAGR, driven by industries for whom efficient power conversion is key, including data centers, electric vehicles, renewable energy systems, industrial motors, and consumer electronics.

GaN Systems uniquely solves many of the most pressing and critical power systems challenges around energy efficiency and design in power-reliant industries. Today, GaN Systems (now Infineon) is the first place systems designers go to realize all the benefits of gallium nitride in their power conversion and control applications. GaN chips allow them to design with one-quarter the power loss, one-quarter the size, one-quarter the weight, and less expense than silicon-based solutions on the system level.

For corporate leaders, GaN changes not only their company’s immediate relationship with power but also their competitive trajectory through the creation of whole new classes of products, systems, and sustainability initiatives. These new power semiconductors are enabling applications that were not possible before, such as Class D Audio and LiDAR. Gallium nitride will continue to chart the future of power transistors, and the market for them is set to grow exponentially.

As a partner in the growth and success of GaN Systems since 2017, we are proud of the accomplishments and milestones the company has achieved. Since its founding, GaN’s semiconductors have been adopted in multiple verticals. BMW Group signed a semiconductor Capacity Agreement with GaN Systems in 2021, making their gallium nitride power transistor the first to reach automotive qualification. GaN Systems’ parts have also made their way into various popular consumer electronics devices. GaN transistors have also powered space applications, including Jupiter exploration, suborbital space travel, and satellite communications. On the funding front, the company raised over $200 million in total. BMW i Ventures supported the company through multiple rounds alongside other top investors, including Fidelity, Chrysalix, Cycle Capital, and Rockport.

At BMW i Ventures, we congratulate the GaN Systems team on becoming part of the Infineon Technologies family. We are so proud to have played a pivotal role in their vital mission of furthering GaN technology to chart a path toward a more energy-efficient, less CO2-dependent, and even more innovative future for sustainable mobility and for the many power-dependent industries they supply.

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