Focused exclusively on the design, manufacture and marketing of advanced epitaxy tools for power applications, LPE should achieve sales of more than 100 million euros in 2023.
The Dutchman will pay for this takeover with 283.25 million euros in cash and 631,154 ASM shares upon completion of the transaction, i.e. 425 million euros. This acquisition seems to be done at a rather expensive price but it is strategic. Silicon carbide is the fastest growing market in the market
Many players are investing heavily to be well placed in silicon carbide, I am thinking in particular of Infineon Technologies, STMicroelectronics, ON Semiconductor and NXP Semiconductor (article to be found here). Silicon carbide (SiC), more efficient and more resistant to heat than silicon, is a central element in the expansion of the electric vehicle market. The automotive batteries of electric vehicles incorporate power converters that transform direct current into variable electric current. Historically, these converters have relied on silicon semiconductors, but as the years go by, SiC is emerging as a more efficient solution. Sic also has the advantage of being more compact (30 to 40%). The only problem, for the moment, is its price (about 5 times more expensive).
ASM International is now the second-largest player in silicon epitaxy. This acquisition strengthens ASMI’s positioning in analogue, diversifies its business model and gives it better exposure to the growth of the electric mobility market.