Japan's Panasonic has signed a contract to acquire all shares of Massachusetts-based TeraDiode (TDI), a supplier of high brightness direct diode lasers (DDL) for industrial use.

Recently, high-precision and high-quality laser processing technology has become increasingly important to meet the demand for light-weight and high-rigidity characteristics along with high design flexibility and high productivity in the automobile and other industries. TDI's high brightness DDL with its proprietary wavelength beam combining (WBC) technology has attracted attention as a next generation laser that realises such demand from a wide range of industrial markets.

Panasonic and TDI began a strategic alliance in 2013 to quickly meet such market needs and succeeded in launching "LAPRISS" in 2014, a laser welding robot system with TDI's high brightness DDL technology. That same year, Panasonic obtained from TDI exclusive sales rights for DDL used for welding in major countries in the Asian region, and both companies have been closely collaborating in product development, manufacturing, sales and service to expand the use of DDL technology worldwide.

Panasonic and TDI have agreed to make TDI a 100% subsidiary, and the two companies will further develop DDL technology jointly and strengthen the laser processing business as a new core business of Panasonic in the factory solutions field, according to Panasonic.