Mitsubishi Electric US, Inc. announced today it will acquire the power device distribution business of Powerex, Inc., a joint venture of Japan-based Mitsubishi Electric Corporation and General Electric Company. Powerex, headquartered in Youngwood, Pennsylvania, manufactures and supplies power semiconductor devices.
The new business unit will operate as a division of Mitsubishi Electric US to service the North and South America markets. The agreement is expected to close in January 2018.
Upon completion, the agreement will transfer the power device distribution business of Powerex from the joint venture to Mitsubishi Electric US. General Electric and Mitsubishi Electric Corporation will maintain equal ownership of Powerex, Inc., which will continue to manufacture power semiconductor devices.
"This agreement strengthens support for our users in the U.S., especially those that manufacture globally," said Kent Hora, president and CEO of Mitsubishi Electric US. "It also strengthens our technical support of automotive manufacturers in the U.S."
The new power-devices business unit will be headed by Tony Sibik, who is expected to join Mitsubishi Electric US from Powerex. Kyle Martin will continue in his role as vice president and general manager of the MEUS Semiconductor Division, overseeing TFT and HF-Opto. Ikuo Ogo, who transferred to Mitsubishi Electric US as of October 1 from Mitsubishi Electric Corporation, will be responsible for the management of the three business units after the closing of the agreement.
"We expect the power device distribution business to create synergies with our Semiconductor Division's existing TFT-LCD modules, high-frequency devices and optical devices," stated Ogo. "We see North America as a key region for power devices, so this strategic move expands our core semiconductor product offering, while providing tremendous growth opportunities."
The base of the new organization will be located at the Cypress, California headquarters of Mitsubishi Electric US, while customer service, including field application engineering, will remain in Pennsylvania at a yet-to-be determined location.