© kritchanut dreamstime.com
Components | February 12, 2020
Seven major chip acquisitions valued at USD 1bn or more
Semiconductor merger and acquisition activity strengthened in 2019 after pulling back in the two previous years from historic high levels of M&A agreements in 2015 and 2016.
More than 30 semiconductor acquisition agreements in 2019 had a combined value of USD 31.7 billion, which was a 22 percent increase from USD 25.9 billion in 2018, according to data compiled by IC Insights. The 2019 value of semiconductor acquisition agreements reached the third-highest annual total ever, but the year was still far behind 2015 and 2016.
It appears the pace of semiconductor acquisitions has moved up to a “new normal” level since 2015—perhaps in the USD 25-30 billion range per year—as consolidation in the chip industry quickens and large suppliers strike deals to add new products and technologies for higher growth this decade, in such areas as machine-learning and artificial intelligence, autonomous vehicles, human recognition, computer vision, virtual/augmented reality, and high-speed wireless connections to the ever-expanding Internet of Things. M&A announcements surged in 2015 with the total value of deals hitting a record-high USD 107.7 billion, followed by USD 100.7 billion in acquisition agreements in 2016 (just USD 59.8 billion of those transactions were completed in the following years because several major ones were dropped after failing to win approval by government regulators), the report continues.
The average annual value of semiconductor M&A agreements between 2015 and 2019 is more than 4x the average in the prior five-year period (2010-2014)—more than 4.5x if USD 100.7 billion is used for 2016 announcements. It is important to note that these purchase agreements cover semiconductor companies, chip divisions, business units, development teams and product lines, intellectual property (IP), process technologies, and wafer fabs. IC Insights’ M&A list excludes transactions involving semiconductor capital equipment suppliers, material producers, chip packaging and testing companies, and design automation software firms.
Seven of the acquisition agreements in 2019 exceeded USD 1.0 billion. Here is where those seven acquisitions rank among the 50 largest semiconductor M&A deals in history.
More can be found at © IC Insights.
It appears the pace of semiconductor acquisitions has moved up to a “new normal” level since 2015—perhaps in the USD 25-30 billion range per year—as consolidation in the chip industry quickens and large suppliers strike deals to add new products and technologies for higher growth this decade, in such areas as machine-learning and artificial intelligence, autonomous vehicles, human recognition, computer vision, virtual/augmented reality, and high-speed wireless connections to the ever-expanding Internet of Things. M&A announcements surged in 2015 with the total value of deals hitting a record-high USD 107.7 billion, followed by USD 100.7 billion in acquisition agreements in 2016 (just USD 59.8 billion of those transactions were completed in the following years because several major ones were dropped after failing to win approval by government regulators), the report continues.
The average annual value of semiconductor M&A agreements between 2015 and 2019 is more than 4x the average in the prior five-year period (2010-2014)—more than 4.5x if USD 100.7 billion is used for 2016 announcements. It is important to note that these purchase agreements cover semiconductor companies, chip divisions, business units, development teams and product lines, intellectual property (IP), process technologies, and wafer fabs. IC Insights’ M&A list excludes transactions involving semiconductor capital equipment suppliers, material producers, chip packaging and testing companies, and design automation software firms.
Seven of the acquisition agreements in 2019 exceeded USD 1.0 billion. Here is where those seven acquisitions rank among the 50 largest semiconductor M&A deals in history.
- #9 is now Infineon’s planned purchase of Cypress Semiconductor for $9.4 billion
- #12 is Nvidia’s $6.9 billion deal for interconnect and networking products supplier Mellanox
- #18 is AMS’s pending $5.1 billion takeover of optoelectronics maker OSRAM
- #36 is Intel’s $2.0 billion purchase of AI-chip developer Habana Labs in Israel
- Tied for #38 is NXP’s acquisition of Marvell’s Wi-Fi Connectivity business for $1.8 billion
- #45 is ON Semiconductor’s $1.1 billion purchase of Wi-Fi solutions supplier Quantenna Communications
- #46 is now Apple’s $1.0 billion takeover of Intel’s smartphone modem business
More can be found at © IC Insights.
GlobalWafer's merger with Siltronic hits a speed bump
The completion of the of merger with GlobalWafers likely to be delayed due to protracted discussions with authorities on regulatory clearances, says Siltronic.
Mobix Labs opens design centre in Australia
Mobix Labs, a connectivity solutions provider for wireless mmWave 5G and wired high bandwidth cable networks, has opened a new design center in Sydney, Australia.
Micron to expand with $7B DRAM plant in Japan
The US semiconductor manufacturer is reportedly looking to build a new manufacturing facility at its production site in Hiroshima. The company is set to invest JPY 800 billion, or USD 7 billion, in the expansion.
Edwards officially opens new technology centre in Ireland
Edwards, a supplier of vacuum and abatement services and solutions to the global semiconductor industry, Officially opened its new flagship Service Technology Centre (STC) in Blanchardstown, Dublin in mid September.
Ad
Jenoptik acquires Berliner Glas Medical and SwissOptic
Jenoptik strengthens its global photonics business via the acquisition of Berliner Glas Medical and SwissOptic.
Sponsored content by Shenzen Kinwong Electronic
The development trend of printed circuit board products and Kinwong's solution
With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
PragmatIC Semiconductor raises $80 million in funding
PragmatIC Semiconductor, a company dealing in flexible electronics, has secured USD 80 million of Series C funding. The company says it will use the funds to add to its capacity in the UK.
Taiyo Yuden expands MLCC production in Malaysia
Japanese manufacturer Taiyo Yuden, will invest MYR 680 million (EUR 140 million) to expand its multilayer ceramic capacitors manufacturing facility in Kuching, Malaysia as the company is looking to increase its production capacity in the ASEAN region.
Hyundai Motor working on developing its own chips in-house
The automotive industry has taken a hard hit from the current semiconductor shortage. One automaker that's had enough is South Korea's Hyundai Motor, who is now looking to develop its on semiconductor chips in order to cut reliance on others.
Sivers Semi is gearing up for growth – acquires MixComm
Swedish technology company, Sivers Semiconductors, is looking to take pole position 5G mmWave semiconductors, and the company is taking a major step with the acquisition of US-based mmWave challenger, MixComm Inc.
Sponsored content by Nordson ELECTRONICS SOLUTIONS
There’s a better way to dispense thermal gap filler.
We hear a lot about the advancement, properties, and use of dispensable thermal interface materials (TIM) to keep devices cool. But what about the dispensing process? If you're choosing a dispensable thermal gap filler for your application, download our new guide.
Keeping EMI from LED drivers under control
Question: How can I reduce electromagnetic interference when using LED drivers in lighting design?
TSMC's looking to expand with new chip plant in Japan
During an online earnings briefing, TSMC CEO C. C. Wei, announced the company's intention to build a specialty technology fab in Japan.
Bosch to set up R&D centre for automotive electronics in Ireland
The German engineering and technology company has announced that it will establish an automotive R&D centre in Limerick, Ireland, creating over 30 new jobs over the course of the next two year.
Sponsored content by congatec GmbH
Real-time Ethernet for all
The real-time processing of data for OPC UA, as well as many other tactile Internet applications, are coming up fast as important new areas of industrial communication. This is due in large part to the emergence of 5G technologies and the increase in factories installing 10+ GbE networks. The stranglehold that many established proprietary industrial Ethernet installations have had for so many years is now starting to be released by Time-Sensitive Networking (TSN), which is ushering in these real-time applications.
RFMW and CML Microcircuits ink global distribution agreement
RFMW and CML Microcircuits (USA) Inc. announces that the companies are expanding their business relationship. Their existing distribution agreement has now been widened to include global marketing and sales of the CML product portfolio.
New Yorker Electronics acquires Omni-Pro
Franchised distributor of passive electronic components and discrete semiconductors, New Yorker Electronics, announces that it has acquired Omni Pro Electronics, Inc., an electronic component distributor, located in Addison, Texas.
Pepperl+Fuchs adds to its capacity with a new facility
Pepperl+Fuchs has officially opened its new production site in Trutnov, Czech Republic. This marks the conclusion of a project which started in 2019 and will allow the company to strengthen its position as a producer of industrial sensors.
RISC-V player announces expansion of US operation
Andes Technology USA Corp., the HQ of the North America operations of Taiwan-based Andes Technology Corporation, a supplier a RISC-V processor cores, is planning a major expansion of Its US operation.
NXP Semiconductors names new CFO
NXP Semiconductors announces that the company names Bill Betz has been named NXP’s Executive Vice President and Chief Financial Officer, effective immediately.
GlobalWafers / Siltronic deal gets a green light from the US
GlobalWafers has provided an update regarding its ts all-cash tender offer for the outstanding ordinary shares of Siltronic AG.
Samsung starts mass production of its 14nm EUV DDR5 DRAM
Samsung Electronics says that it has begun mass producing its 14-nanometer DRAM, based on extreme ultraviolet (EUV) technology.
Schurter completes its latest Swiss expansion
The new construction and conversion of the Schurter Group headquarters in Lucerne, Switzerland has been completed.
UK is off the table for potential Intel fab after Brexit
The UK would have been a potential site for an Intel fab, but not after Brexit, Intel CEO Pat Gelsinger told the BBC.
Solution from Fingerprint Cards integrated in new Honor MagicBook
Swedish biometrics company, Fingerprint Cards, announces that the the company’s new biometric solution for the PC market is integrated in the new HONOR MagicBook V14.
Kanthal sells its semiconductor capital equipment business
Heating technology company Kanthal announces that it has reached an agreement to divest its semiconductor capital equipment business to Yield Engineering Systems, Inc. (YES), headquartered in Fremont, California, USA.
Load more news
