U.S.-based ​Cree, Inc. announced on Tuesday the acquisition of ​Infineon Technologies’ Radio Frequency (RF) Power business for approximately ​**€345 million (USD 428 million)**, effective March 6.

Both companies are industry leaders with complementary strengths. The acquisition integrates Infineon’s RF Power team and technologies into ​Cree’s Wolfspeed division, enhancing capabilities in product design, packaging, manufacturing, and customer support. Meanwhile, Infineon will sharpen its focus on strategic growth areas like electric vehicles, autonomous driving, and renewable energy.

Key Assets Transferred:

• Infineon’s ​Morgan Hill, California facility, including operations for ​LDMOS and ​GaN-on-SiC packaging.
• A factory with established customer relationships and expertise in wireless base station manufacturing.
• Approximately ​260 employees across the U.S., Finland, Sweden, China, and South Korea.
• A transition services agreement to ensure seamless operations.
• Ongoing supply of ​LDMOS wafers and components from Infineon to Cree.

Strategic Rationale:

• ​Cree CEO Gregg Lowe: “This acquisition strengthens Wolfspeed’s leadership in GaN-on-SiC technology, accelerates our transition from 4G to 5G markets, and adds critical packaging expertise and customer channels.”
• ​Infineon CEO Reinhard Ploss: “Cree is an ideal partner for this business. Divesting RF Power allows us to concentrate resources on core growth sectors while maintaining a robust wireless technology portfolio.”

Technology Synergy for 5G:
Next-gen cellular infrastructure (e.g., 5G) requires frequencies up to ​80 GHz, demanding advanced compound semiconductors:

• ​GaN-on-Si excels in integration and efficiency ​up to 10 GHz.
• ​GaN-on-SiC achieves peak efficiency ​up to 80 GHz.
  Combined with Infineon’s ​LDMOS products, Wolfspeed will emerge as the ​broadest RF power component supplier for 5G and beyond.

Financial Impact:
The deal is expected to add ​USD 115 million in annual revenue within 12 months and boost non-GAAP earnings starting Q1.

A Dramatic Reversal:
This transaction marks a strategic flip from 2016, when Infineon attempted to acquire Cree’s ​Wolfspeed Power & RF division (specializing in SiC and GaN-on-SiC) for ​USD 850 million. The deal collapsed in 2017 after the ​U.S. Committee on Foreign Investment (CFIUS) flagged national security concerns. Now, Cree’s acquisition of Infineon’s RF Power unit underscores renewed alignment and mutual ambition to dominate next-gen RF markets.