Friday, May 11, 2018
TDK Corporation announced on Wednesday that it would acquire Faraday Semi, a startup focused on advanced power converters that can be installed in connected cars, factory equipment and data centers to regulate the electrical current powering them.
“As we see an increase in connected devices, whether in autos, on the factory floor, or data centers, we’re witnessing the need for greater processing power in the devices themselves,” said Arthur Asai, TDK’s senior product marketing manager for power solutions. “These changes are increasing the need for miniaturized, specialized electronics with efficient power management.”
Faraday Semi, which was founded in 2015, uses advanced packaging to manufacture point-of-load devices that are smaller, more efficient and lower cost than traditional DC-DC converters. The technology minimizes the distance between the company’s ìPOL products and processors like CPUs and ASICs, improving switching speeds and regulation accuracy.
Before the acquisition, Faraday Semi was TDK’s customer. The company used TDK packaging technology called semiconductor embedded in substrate, or SESUB, to improve the efficiency, heat dissipation and integration of its chips. Better integration not only keeps costs low but also allows resistance and the inductance components to be kept small.
The ìPOL converters eliminate the need for external compensation as well as external components, such as dividers and feedback loops. In addition, Faraday’s point-of-load converters have five-times faster switching frequencies than rival technology at a 12V input power rail, Asai said. Typical converters handle around 600KHz at higher currents, while Faraday’s supports 2MHz to 4MHz.
Although terms of the deal were not disclosed, the Tokyo, Japan-based TDK told Electronic Design that it would bring Faraday’s technology to market faster through its manufacturing, sales and distribution channels. Asai declined to comment on how much money the company plans to invest in its new wholly-owned subsidiary.
The acquisition gives Faraday the financial support of a giant corporation, which reported around $12 billion in its last fiscal year and employs 103,000 people worldwide. TDK’s acquisition of the Laguna Niguel, California-based Faraday follows its $1.3 billion acquisition of InvenSense and ultrasonic sensor supplier Chirp Microsystems.
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