Wednesday, January 27, 2016

China 2015 - 2016 Semiconductor Mergers, Acquisitions

Since 2015 there has been an accelerating trend of consolidation of semiconductor and semiconductor equipment companies. 

The trend is due to

1. The increasing cost of developing the next generation of semiconductor chips (see Feb 2013 blog SemiconductorMoore's Law Running out of Money )

2. Reduced growth rate of the semiconductor industry.

3. China’s increasing effort  to gain a strong presence in the semiconductor industry (see June 2012 blog Statusof China's Fabless Model and January 2015 Chinese$80 Billion Fabless IC )

The table below summarizes the key mergers and acquisitions of semiconductor companies announced since 2015. Before 2015 there was typically about one merger each year

In 2016 China will continue to get semiconductor presence by maybe buying portion of semiconductor companies such as Micron or Maxim directly or through a joint venture (see China Increasing IC Power )

So far, the mergers and acquisitions directly impacts wafer fabs capacity only for Altera that was bought by Intel. It is likely that China will try to increase its fabrication capacity.

Most of these deals have not yet gotten regulatory approval and could be cancelled before the deal closes. I will attempt to update the table as these transactions proceed.

March 2015
$ 12 Billion
Cypress Semiconductor/ Spansion
March 2015
$ 5 Billion
NXP RF/ Jianguang Asset Management
May 2015
$ 1.8 Billion
May 2015
$ 36.7 Billion
Intel/ Altera
June 2015
$16.7 Billion
Microchip/ Micrel
August 2015
$0.8 Billion
LAM/ KLA-Tencor
October 2015
$10.6 Billion
Western Digital/ SanDisk
October 2015
$19 Billion
Texas Instruments, Analog Devices, ? /Maxim
October 2015
$9+ Billion Market Cap
Microsemi/ PMC-Sierra
November 2015
$2.5 Billion
On Semiconductor or China Resources  / Fairchild Semiconductor
December 2015
$2.5 Billion
Dialog/ Microchip Technology / Atmel
January 2016
$3.6 Billion

Insightful, timely, and accurate semiconductor consulting.
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