Microchip Technology signs definitive agreement to acquire Hailo

Microchip Technology Incorporated, a US-based provider of smart, connected and secure embedded control solutions, has announced that it has signed a definitive agreement to acquire Israeli company Hailo, a provider of accelerated edge AI processors, advanced vision processing solutions, robotics processors and comprehensive AI software flows. 

The transaction is expected to close towards the end of the current quarter ending September 30, subject to customary closing conditions and regulatory approvals. The terms of the transaction are not being disclosed and the transaction is not expected to have a material impact on Microchip’s financial results, the company said.

The proposed acquisition is expected to expand Microchip’s processing portfolio for intelligent edge systems and strengthen its ability to deliver accelerated, power-efficient edge AI solutions for robotics, advanced vision processing and intelligent edge applications, including drones, robots, smart cameras, industrial automation and embedded AI systems.

Hailo’s products span from high performance edge deployments on specialty edge servers with local GenAI and multimodal workloads down to low-power vision processing inside a small form factor, stand-alone camera. With Hailo-8, Hailo-10 and Hailo-15, Microchip will gain a portfolio that supports classic computer vision, while adding advanced camera, ISP, DSP, video encoding and AI video stream processing capabilities for intelligent edge systems, Microchip said.

“The acquisition of Hailo accelerates Microchip’s expansion into high-performance edge AI processing,” said Mark Reiten, Senior Corporate Vice President, Microchip. “Hailo’s AI acceleration, advanced vision processing and software ecosystem directly complements Microchip’s embedded processing, FPGA, connectivity, security, power and analog portfolio. Together, we can help customers build more capable intelligent edge systems with the right balance of performance, power efficiency, reliability and system cost.” 

“Joining Microchip would give Hailo the opportunity to scale our accelerated edge AI technology through a global embedded systems leader,” said Hailo CEO Orr Danon. “Microchip’s customer reach, channel scale and broad technology portfolio would create a strong platform for bringing advanced vision processing and AI acceleration to broader range of intelligent edge applications.”