Japanese chipmaker Renesas Electronics Corp. said Thursday it will buy U.S. power semiconductor company Transphorm Inc. for $339 million to strengthen its lineup to meet increasing demand for products in the auto, energy and computing sectors.

Renesas will acquire all outstanding shares of the U.S. company for $5.10 per share, a 35 percent premium to its closing price Wednesday, the Japanese company said. The acquisition is expected to be completed in the second half of the year.

The deal will allow Renesas to acquire the U.S. company's technology for gallium nitride, a key next-generation material that is needed to manufacture smaller and more power-efficient chips.

The Japanese company will utilize the technology to supply power semiconductors for use in electric vehicles, artificial intelligence products and renewable energy equipment.

Transphorm, headquartered in Goleta, California, is a major designer and manufacturer of gallium nitride semiconductors, according to Renesas. It operates chip plants in Aizuwakamatsu, Fukushima Prefecture, northeastern Japan, as well as Goleta.

==Kyodo

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