© 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.
Avery Dennison invests in new factory in Brazil
Avery Dennison is gearing up for future growth of RFID technology. Just months after signing a deal to acquire Smartrac's transponder division, the company announces the location of its next RFID manufacturing facility, its first in Brazil and fifth in the world.
ST and TSMC team up on Gallium Nitride-based products
STMicroelectronics and TSMC are collaborating to accelerate the development of Gallium Nitride (GaN) process technology and the supply of both discrete and integrated GaN devices to market.
WD to sell ActiveScale business to Quantum
Western Digital Technologies, Inc. has entered into a definitive agreement to sell its ActiveScale business to Quantum Corp., under which Western Digital's full line of ActiveScale products will be sold.
Maxim accelerates in Europe with $25M investment in Ireland
Maxim Integrated Products, Inc. is opening a new design centre in Dublin, Ireland. The design centre will focus on product development and conducting R&D in the areas of analog semiconductor design.
Ad
Workers to stay home as SK Hynix trainee had contact with virus patient
800 workers of the South Korean chipmaker has quarantined themselves – as a preventive measure – in order to keep the spread of the Coronavirus at bay.
Dialog Semiconductor to acquire Adesto Technologies
Dialog Semiconductor has signed a definitive agreement to acquire all outstanding shares of Adesto Technologies Corporation.
Renesas and Panthronics team up on wireless charging and IoT solutions
Renesas and Panthronics AG, a fabless semiconductor company specialising in high performance wireless products, are collaborating to bring solutions to the consumer, industrial, and Internet of Things (IoT) markets.
Murata completes new production facility in Malaysia
Murata Electronics (Malaysia) Sdn.Bhd. (Perak, Malaysia), a production subsidiary of Murata Manufacturing Co., Ltd., recently completed construction of a production facility that was started in October 2018.
AKKA is now a majority owner of Data Respons
Following the closing of the voluntary offer period, AKKA holds 72.89% of Data Respons’ share capital.
Sequans and Avnet sign global distribution deal
Sequans Communications S.A. and Avnet have entered into a distribution agreement whereby Avnet will promote and sell Sequans’ IoT chips and modules and will exclusively promote and sell Monarch Go, an LTE-M/NB-IoT modem component designed for and certified by Verizon.
Synopsys completes acquisition of certain IP assets from INVECAS
Synopsys, Inc. has completed its acquisition of certain IP assets from INVECAS. This acquisition broadens Synopsys' DesignWare Logic Library, Embedded Memory, General Purpose I/O, Analog, and Interface IP portfolio.
Qualcomm: Coronavirus may impact phone industry
Chip maker Qualcomm Inc has issued a statement that the coronavirus outbreak in China poses a potential threat to the mobile phone industry.
South Korean supplier to set up manufacturing in Hungary
Soulbrain, a South Korean materials company supplying chemicals used in semiconductors, displays and battery cells, is establishing its first European unit in Tatabánya in Hungary.
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.
Jenoptik is expecting further growth in 2020
Despite difficult economic conditions, Jenoptik continued to grow in 2019.
ams reports record results for full year 2019
Austrian sensor manufacturer ams reports that its revenues for 2019 was up 32% year-on-year, and fourth quarter revenues exceeded expectations with strong adjusted operating profitability.
Xperi enters into a patent and technology license deal with SK hynix
Xperi Corporation has entered into a new patent and technology license agreement with semiconductor manufacturer SK hynix.
Communications equipment makers want high power outputs and small solution footprints
Many communications systems are powered via a 48 V backplane. This voltage is normally stepped down to a lower intermediate bus voltage, typically to either 12 V, 5 V, or even lower, in order to power the racks of boards within the system.
Pennsylvania’s AMETEK acquires IntelliPower
AMETEK Inc. has purchased IntelliPower, designer and manufacturer of high-reliability external battery packs and power conditioners and distribution units for defense and industrial applications.
Nuvia unveils first NA office, new leadership
Santa Clara-based silicon design start-up NUVIA Inc. has opened its first international office in Toronto, Ontario, Canada.
Murata completes new production building in Japan
One of Murata’s manufacturing subsidiaries – Fukui Murata Manufacturing Co., Ltd. – has completed the construction of a new production building in Echizen City on the Fukui Prefecture, Japan.
Synapse opens two offshore semiconductor design centres
Synapse Design has officially opened its newest semiconductor design centers: One in Ahmedabad, India and one in Penang, Malaysia. With the addition of these two design centers, the company now has eight offshore design centers (ODC).
Amtech receives order from power semiconductor customer in Asia
Amtech Systems says that its subsidiary, Bruce Technologies, Inc., has received a significant new order for its full 300mm clustered HTR diffusion furnace from a top-tier global power semiconductor customer in Asia. The furnace is expected to ship in fiscal Q1 2021.
Load more news
Related news
