Besides this acquisition to increase its presence in the power IC market, ABB is investing $150 million over a period of three years for the expansion of its semiconductor factory in Lenzburg, Switzerland.

As part of the sale, Polvodice will transfer its semiconductor assets and 200 employees to ABB.

The Czech firm has been manufacturing power semiconductors since the 1950s. Semiconductor devices in the current range of 12,000 amps and voltage range of 6000 Volts are also supplied by Polvodice. Heatsinks are also produced by the firm.

Peter Leupp, who heads the Power Systems Division of ABB says that power semiconductors are necessary for efficiency and reliability in electricity networks as they control power flow. He added that acquiring Polvodice would help ABB in becoming one of the market leaders in power semiconductors.