Litttelfuse Inc. (Nasdaq: LFUS) has agreed to acquire semiconductor maker IXYS Corp. (NasdaqL IXYS) for about $750 million. The transaction is part of the buyer’s strategy to expand in the power control and industrials markets. Technology M&A is being fueled by demand for tech-enabled business that serve traditional markets.

IXYS, based in Milpitas, California, develops semiconductors, relays, high voltage circuits and microcontrollers. The target has around $322 million in annual revenue, and works with companies in the automotive, industrials, healthcare and consumer sectors.

“IXYS’ extensive power semiconductor portfolio and technology expertise fit squarely within our strategy to accelerate our growth within power control and industrial OEM markets,” says Littlefuse CEO Dave Heinzmann.

Chicago-based Littelfuse produces mostly electronic devices such as switches, panels and circuit breakers. The company’s products are sold to clients in the automotive, industrials, energy and mining sectors.

Morgan Stanley & Co. and Wachtell Lipton Rosen & Katz are advising Littelfuse. Needham & Co. and Latham & Watkins LLP are advising IXYS. Other deals for circuit and chip makers include: Analog Devices Inc.’s (Nasdaq: ADI) acquisition of Linear Technology and MaxLinear’s purchase of Exar.