Veeco acquires a new company

On January 30, US equipment manufacturer Veeco announced the acquisition of Epiluvac AB, a CVD chemical vapor deposition epitaxy equipment system manufacturer, to accelerate its entry into the SiC epitaxy equipment sector and seize growth opportunities in the rapidly expanding electric vehicle market.

According to reports, Epiluvac AB was founded in 2013, is headquartered in Sweden, and its founding team possesses extensive experience in the SiC field. Epiluvac's CVD platform enables high productivity, is easy to maintain, and offers excellent process control capabilities, making it an ideal choice for manufacturing devices used in lightweight, miniaturized, and highly efficient power conversion systems.

Veeco's MOCVD equipment products are primarily targeted at semiconductor, compound semiconductor, data storage, scientific, and other application areas. Among them, the application scenarios for compound semiconductor equipment cover power electronics, RF filters and device applications, as well as optoelectronic products including Mini/Micro LED, VCSEL, and laser diodes.

After acquiring Epiluvac, Veeco's MOCVD epitaxy equipment product line layout will be further perfected, which is also conducive to Veeco accelerating its entry into the rapidly growing SiC equipment market; Veeco plans to combine its experience in global market promotion with Epiluvac's technology platform to cultivate a long-term growth engine for the company. At the same time, the combination of both parties will also help customers accelerate the implementation of SiC applications.

The transaction price for this acquisition is USD 30 million in cash, to be paid during the transaction completion period, in addition to an additional consideration of USD 35 million contingent on performance. This transaction is not expected to have a material impact on Veeco's 2023 results; Veeco expects this business to begin generating bulk revenue in 2024.

Source: Compound Semiconductor Market