Dialog to acquire FCI from Silicon Motion

FCI is a provider of Mobile TV SoCs in T-DMB and ISDB-T, with RF tuner-demodulator SoC solutions for smartphones, tablets and automotive Portable Navigation Devices (PNDs). The acquisition provides Dialog with a portfolio of complementary Connectivity-based products that includes Ultra-Low-Power Wi-Fi System-on-Chip (SoCs) and Modules, Mobile TV SoCs and Mobile Communication transceiver Integrated Circuits (Ics). In Q4 2018, FCI began ramping production of their first Ultra-Low-Power Wi-Fi SoC (FC9000) and accompanied this with a range of fully Wi-Fi certified module solutions, including integrated antenna options. “The acquisition of Silicon Motion’s Mobile Communications product line provides Dialog customers with Ultra-Low-Power Wi-Fi SoCs and complete modules that are certified and designed to meet the demands of today’s battery powered IoT devices,” says CEO Jalal Bagherli, in a press release. “Ultra-Low-Power Wi-Fi is a strong strategic fit for Dialog with the opportunity to combine Wi-Fi and Bluetooth low energy chips and modules selling into our complementary IoT, consumer and automotive markets.” Silicon Motion’s Mobile Communications reported approximately USD 30 million revenue in 2018 from all its current product lines, with sales primarily generated from its Mobile TV SoCs. The ultra-low power performance of the new Wi-Fi product line has achieved full Wi-Fi certification and passed all interoperability tests with an extensive range of routers. In addition to the current product lines, the acquisition also brings to Dialog a broad range of new technologies and engineering capabilities with design expertise in RF wireless communications for cellular 4G and 5G, Narrowband IoT (NB-IoT) transceiver, power amplifiers and deep sub-micron chip design. The acquired group is primarily located near Seoul, South Korea. It shipped over 65 million SoCs in 2018 and can be found in many smartphone models. Dialog will fund the USD 45 million purchase price in an all-cash transaction from its balance sheet. The transaction is expected to complete during 2019, subject to regulatory approval.