© 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.
- #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.
Cicor expands capacity at Wangs facility Due to the strong demand for the company’s thin-film services, the production capacities at the Wangs (Switzerland) site will be expanded with immediate effect by an additional shift.
Pixelworks to sell 7% stake to Chinese investors Pixelworks says it has entered into a Securities Purchase Agreement with MTM-Xinhe Investment Limited, a consortium of investors from the Chinese semiconductor and mobile eco-system, under which Pixelworks would issue and sell in shares representing about 7% of the company's outstanding shares for USD 6.6 million dollars.
Allegro MicroSystems sets terms for $325 IPO Allegro MicroSystems, a fabless chip company focusing on sensing and power technology, has commenced a proposed initial public offering of its common stock.
Applied Materials and Besi to jointly develop chip integration technology Applied Materials and BE Semiconductor Industries (Besi) says they aim to develop the industry’s first complete and proven equipment solution for die-based hybrid bonding, an emerging chip-to-chip interconnect technology that enables heterogeneous chip and subsystem designs for applications including high-performance computing, AI and 5G.
Sourceability appoints new managing director for APAC Semiconductor veteran joins the management team of digital supply chain solutions provider.
POET and Sanan IC to form a joint venture company POET Technologies and Xiamen Sanan Integrated Circuit (Sanan IC), a wholly owned subsidiary of Sanan Optoelectronics, have signed a definitive joint venture contract.
From wafer sawing to the finished packaged component Encapsulation is essential for the reliability of a component, as it needs to protect the sensitive silicon and bonding joints even under variable environmental conditions or temperature ranges. High-quality packaging is therefore indispensable to ensure the functionality and reliability of a component and the entire device.
Avnet Silica names Gilles Beltran as president Beltran succeeds Mario Orlandi who takes on global assignments in Avnet.
Sponsored content by JBCHigh Quality & efficient fume extraction is not only important to meet workplace regulations It's also important to ensure the safety and health of everyone. Soldering fumes and gases may be one of the main causes of potential health problems at any soldering workplace without a proper fume extraction. To protect all employees and their health, keep the following suggestions in mind!
SkyWater is looking to lease a 200 mm fab in Florida Having just completed the expansion of its Minnesota facility, SkyWater does not seem to be done adding to its footprint. The company is looking to take over the Center for Neovation, a 200 mm semiconductor manufacturing facility.
Airbus Ventures invests in Singapore startup Airbus Ventures latest investment has led the company to Singapore and Zero Error Systems (ZES).
SK hynix to acquire Intel NAND memory business The two parties have signed an agreement under which SK Hynix will acquire Intel's NAND memory and storage business for USD 9 billion.
High power quarter brick isolated DC/DC converter addresses demands of energy-conscious data centers Continuing to extend its portfolio of high-density DC/DC converter solutions with built-in digital interfaces, Flex Power Modules introduces two variants of the new BMR491 series.
Wipro to acquire Eximius Design The information technology specialist says it has signed a definitive agreement to acquire Eximius Design, an engineering services company with strong expertise in semiconductor, software and systems design.
Cree to sell LED Business to SMART Global Holdings Cree says it has entered into a definitive agreement to sell its LED Products business unit (Cree LED) to SMART Global Holdings for up to USD 300 million.
Murata opens second factory in Wuxi Wuxi Murata Electronics Co., Ltd., a manufacturing subsidiary of Murata, has completed to construction of a new facility and officially opened the new plant on October 19.
Skeleton's next-gen high energy ultracapacitors to power Wrightbus’ hydrogen buses Skeleton Technologies is cooperating with Wrightbus, a bus OEM headquartered in Northern Ireland, in which the company will supply its next generation high energy ultracapacitor modules to power fuel cell buses in the UK.
Zytronic adds a third dimension to touch with its ZyBrid® hover technology Touch technology innovator Zytronic has released a contactless sensing option that can detect user interactions up to 30mm away from the surface of the glass.
Improved signal integrity on High Frequency and High Speed PCBs In PCB design guidelines chip makers recommend using VLP (very low profile) and HVLP (hyper very low profile) copper to mitigate insertion loss caused by the skin effect – But do you know what happens to the copper surface roughness during PCB fabrication?
TSMC's profit soars on the back of strong revenue growth The semiconductor foundry announces consolidated revenues of NTD 356.43 billion (EUR 10.57 billion) for its third quarter of 2020, a 21.6% increase from the same period last year.
COVID-19 is still impacting the business of RoodMicrotec The independent semiconductor supplier recorded a total income of EUR 3.0 million during the third quarter of 2020, a slight decrease from EUR 3.1 million during the same period last year.
Digi-Key and Netlist announce US marketplace distribution partnership Digi-Key Electronics has added Netlist, a builder of memory and storage solutions, to its Marketplace.
STMicro acquires French fabless semiconductor company The acquired fabless semiconductor company specialises in silicon-based power amplifiers and RF Front-End Module products for the cellular IoT and 5G markets.
Advantech expands with three new offices in North America The embedded production and solution provider has opened three new branch offices in Downers Grove, Illinois; Danvers, Massachusetts; and Toronto, Canada.
ASM's CFO, Peter van Bommel, to retire Chief Financial Officer, Peter van Bommel, has notified the Supervisory Board of ASM of his wish to retire from the company at the next Annual General Meeting to be held in May 2021.Load more news