International Rectifier has announced a strategic collaboration with Sanken Electric of Japan that includes joint design and development activity between the two power semiconductor companies for next-generation proprietary power management products.
The collaboration also includes a cross-shareholding arrangement. International Rectifier (IR) has agreed to purchase approximately 2 percent of Sanken shares, for about $13 million, and Sanken has agreed to purchase approximately 0.4 percent of IR shares, for about $13 million.
The IR shares to be purchased by Sanken will be newly issued pursuant to a private placement.
The collaboration is planned to include a joint technology development of next-generation analog ICs, joint standards for systems architectures in certain automotive, AC-DC, DC-DC and motion control application areas, collaboration on capacity management and joint sales and marketing in certain regions.
Japan was the fastest-growing region for IR in the March quarter, with revenues growing 76 percent year-on-year, driven by the strength of recent design wins in the consumer electronics market.
IR provides key power management chips for applications such as Sony’s Playstation 2 and Fujitsu’s flat panel TVs. Japan accounted for 13 percent of IR’s OEM revenue in the March quarter, up from 11 percent in the December quarter.