Dispatch of sina science and technology Beijing time on July 14, the evening news, the German Infineon chip manufacturers (Infineon Technologies) announced today that will be $850 million in cash from the United States Cree LED companies (Cree) to buy its Wolfspeed Power & RF department.

Cree announced last September, will split its Wolfspeed Power & RF (RF) Power and departments, changed its name to "Wolfspeed" company, and plans listed separately. But secco sharp said in January this year, the plans to be put off.

Infineon CEO ray ha DE prologis (Reinhard Ploss), said Wolfspeed production of silicon carbide chip in the next few years will gradually replace traditional chip, especially in the market of electric and hybrid cars. At present, about 50% of its sales from the corporate sector infineon.

Infineon, will improve in a short time after acquisition of Wolfspeed diluted earnings per share and profitability of the company. Currently, infineon's gross profit margin is about 55%, and the next four years is expected to maintain a 20% average annual growth rate.

The deal from infineon acquisition chip makers International Rectifier only 18 months. Infineon announced in August 2018, for $3 billion in cash for the power management chip maker International Rectifier, it is so far infineon's largest acquisitions.

As for the $850 million acquisition of Wolfspeed trading infineon said $720 million of which will be funded by bank loans, another $130 million cash payments by hand.