Four megadeals for semiconductor acquisitions in 1H22
Topping the M&A deals in 1H22 was an agreement by a Chinese investment consortium to take over bankrupt semiconductor conglomerate, Tsinghua Unigroup.
The financially troubled company was buried in debt after a decade of acquiring and building up its semiconductor holdings as part of an effort to make China self-sufficient in a number of chip segments and a leading global IC supplier. In April 2022, government-backed Beijing Jianguang Asset Management Co. (JAC Capital) led a group of investment firms to complete a USD 9.4 billion injection of payments into Tsinghua Unigroup, which runs Yangtze Memory Technologies—China’s first and leading domestic maker of NAND flash memory ICs.
The second largest chip acquisition agreement in 1H22 was Intel’s USD 5.4 billion deal to buy pure-play wafer foundry Tower Semiconductor in Israel. The cash purchase, announced in February 2022, is expected to be completed by early 2023 and is part of Intel’s push into the silicon foundry business.
In May 2022, California-based MaxLinear announced an agreement to buy Silicon Motion in Taiwan for USD 3.8 billion in cash and stock. This acquisition is expected to be completed in 1H23 and will add controller ICs for NAND flash storage to MaxLinear’s lineup of RF and mixed-signal products.
AMD, in April 2022, announced a USD 1.9 billion agreement to buy packet-processor and cloud-computing software startup Pensando Systems in Milpitas, California, to boost its presence in the data center market and increase competition with Intel. The acquisition of Pensando was finished in May 2022; three months after AMD completed its purchase of Xilinx in February 2022. The Xilinx acquisition became the largest semiconductor M&A deal in history because the final acquisition value climbed to USD 49.8 billion – 42% higher than the initial USD 35 billion estimate when the purchase was announced in October 2020 – because of the strong increase in AMD’s stock price during the last two years.
|Rank||Announced||Company & HQ||Buyer & HQ||Value ($M)||Close of purchase|
|1||April||Tsinghua Unigroup – Bankrupt (China)||Investors group (China)||$9,449||April 2022|
|2||February||Tower (Israel)||Intel (US)||$5,400||By February 2023|
|3||May||Silicon Motion (Taiwan)||MaxLinear (US)||$3,800||By 1H23|
|4||April||Pensando Systems (US)||AMD (US)||$1,900||May 2022|
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