DURHAM – Cree is boosting the importance of its Wolfspeed group, acquiring the radio frequency business of chip firm Infineon for $428 million.

Cree had sought to sell Wolfspeed to Infineon for more than $800 million. That deal fell through in February 2017 when it became clear U.S. regulators would not approve the deal.

The companies announced the new deal Tuesday.

Cree believes the acquisition will help the semiconductor, radio frequency and LED giant bolster itself to capitalize on the emergence of 5G – the next generation in wireless technology.

In a recent presentation to investors, Cree spelled out future growth plans that called for Wolfspeed to become its largest revenue producer.

“The acquisition strengthens Wolfspeed’s leadership position in RF GaN-on-SiC technologies, as well as provides access to additional markets, customers and packaging expertise,” said Cree CEO Gregg Lowe. “This is a key element of Cree’s growth strategy and positions Wolfspeed to enable faster 4G networks and the revolutionary transition to 5G.”

Bloomberg news notes that Cree bought assets including Infineon’s main factory in Morgan Hill, Calif. as well as patents. Some 260 employees also are involved.

Cree said the deal has been funded by cash and borrowing from its line of credit, it said.

“The new business is targeted to increase annual sales by approximately $115 million in the first 12 months after the acquisition,” Bloomberg noted.