© 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.
Rohm SiC MOSFETs qualified for automotive use
Rohm’s latest 4th generation of SiC MOSFETs has been fully qualified in Semikron’s eMPack modules for automotive use.
Gapwaves and Bosch to jointly develop radar antennas
Swedish tech company Gapwaves have entered into an agreement with Bosch regarding the development and large-scale production of high-resolution radar antennas for automotive vehicle applications aiming at highly automated driving.
Würth Elektronik ICS opens subsidiary in Italy
Würth Elektronik ICS is expanding its activities in Italy with the opening of the new subsidiary Würth Elektronik ICS Italia s.r.l.
Semtech to acquire Sierra Wireless
Semtech and Sierra Wireless have entered into a definitive agreement under which Semtech will acquire all outstanding shares of Sierra Wireless for USD 31 per share in an all-cash deal valued at USD 1.2 billion.
Ad
Ad
Materion looking to accelerate growth with new facility
Materion Corporation, a supplier of advanced materials, has established a new facility in Milwaukee, Wisconsin to accelerate the growth of advanced chemical solutions for the semiconductor and EV battery markets.
Cyber incident at SEMIKRON
The SEMIKRON Group has become a victim of a cyber-attack by a professional hacker group.
Alexander Battery and Anglia sign distribution agreement
Anglia Components, a distributor of electronic components, has signed an agreement with Alexander Battery Technologies for exclusive distribution in the UK and Ireland.
MKS and Atotech deal receive China antitrust clearance
MKS Instruments and Atotech have received unconditional merger approval from China’s State Administration for Market Regulation for MKS’ pending acquisition of Atotech.
Micron plans to invest in US memory manufacturing
Micron Technology commends the passing of the “Chips and Science” legislation. The company says that this is a big step towards securing the future of semiconductor manufacturing in the United States and advancing American innovation and competitiveness.
Applied Materials looking to future-ready its workforce
Applied Materials South East Asia Pte. Ltd. has signed an MoU with the Singapore Institute of Technology (SIT) to develop and implement continuing education and training (CET) programmes for Applied Materials employees.
Kioxia & WDC to receive government subsidy for JV fab
Kioxia Corporation and Western Digital Corporation say that their joint venture, the Fab7 manufacturing facility at Yokkaichi Plant, has been approved to receive up to JPY 92.9 billion (USD 699.3 million) in subsidy from the Japanese government.
Green light for the CHIPS and Science Act of 2022
The United States House of Representatives has passed the CHIPS and Science Act of 2022. A decision applauded by SEMI. The bill provides a 25% tax credit for US facilities that produce semiconductors or chipmaking equipment and USD 52 billion in funding for new semiconductor programs.
Littelfuse completes its acquisition of C&K Switches
Littelfuse has completed its acquisition of designer and manufacturer of high-performance electromechanical switches and interconnect solutions, C&K Switches.
Intel to make chips for MediaTek
MediaTek will use Intel Foundry Services to manufacture new chips for a range of smart edge devices.
Indie Semiconductor opens Dresden center of excellence
The center is said to be part of a company strategy to deliver local technical support for a rapidly growing base of OEM and Tier 1 automotive customers in the EMEA region.
Soitec: "We recorded our highest first quarter ever"
Semiconductor materials specialist Soitec reported consolidated revenue of EUR 203 million for the first quarter of FY’23, up 12% compared with EUR 180 million during the first quarter of FY’22.
ClassOne acquires complete chip line
ClassOne Equipment says it has acquired a major semiconductor fab’s complete chip manufacturing line.
SkyWater to bolster chip fabrication at Purdue
SkyWater plans to open a $1.8 billion semiconductor manufacturing facility in Discovery Park District at Purdue University to create 750 new direct jobs within five years.
Toyo Ink Group to focus on electronics materials in Shenzhen
Toyo Ink SC Holdings Co., Ltd., the parent company of the Tokyo-based materials manufacturer Toyo Ink Group, recently opened the Shenzhen Toyo Ink Technical Center in Shenzhen, China.
SkyWater awarded $27M option to facilitate US semiconductors
The Department of Defense is funding a $27 million Other Transactional Agreement Option for SkyWater to further develop intellectual property (IP) for its 90 nm Strategic Rad-Hard by Process (RH90) FDSOI technology platform.
Missouri signs bill for multi-million chip investment
Missouri Governor, Mike Parson signs house bill 3007, said to make Missouri a leader in ”innovation of advanced manufacturing of active pharmaceutical ingredients and semiconductor computer chips”.
Bosch invests further billions in chip business
Bosch announces an investment of three billion euros in its semiconductor business by 2026 as part of the IPCEI on Microelectronics and Communications Technology.
Siemens to establish UK power electronics innovations hub
Siemens plc has entered a strategic innovation partnership with the Compound Semiconductor Applications Catapult in Newport to accelerate the development of leading-edge power electronics capability.
Riverside announces sale of Abracon
Private investor Riverside has sold its investment in Abracon, a Texas-based provider of passive and electromechanical timing, synchronization, power, connectivity and radio frequency solutions, to Genstar Capital.
Load more news
