Update:China 2015/2016 Semiconductor Mergers, Acquisitions

 An updated table of semiconductor mergers and acquisitions is below. SanDisk deal is now questionable.

"The wheels are falling off China's attempt to buy itself a chip industry with the announcement that it has abandoned its attempt to buy a 15% stake in Western Digital for $3.8 billion.

Tsinghua pulled out of the deal after the US government said it would investigate the proposal.

Western Digital is in the process of buying SanDisk, Toshiba's flash memory partner.

It is the latest set-back in a series of frustrated attempts by Tsinghua to buy itself into the semiconductor industry."

See more in the article below

NXP/Freescale	March 2015	$ 12 Billion	NXP to buy Freescale, create $40 billion company
Cypress Semiconductor/ Spansion	March 2015	$ 5 Billion	Cypress and Spansion merge in $5B deal
NXP RF/ Jianguang Asset Management	May 2015	$ 1.8 Billion	Why NXP is selling its RF power business for $1.8 billion
Avago/Broadcom	May 2015	$ 36.7 Billion	Avago Agrees to Buy Broadcom for $37 Billion
Intel/ Altera	June 2015	$16.7 Billion	Intel Agrees to Buy Altera for $16.7 Billion
Microchip/ Micrel	August 2015	$0.8 Billion	Microchip Technology Completes Acquisition of Micrel
LAM/ KLA-Tencor	October 2015	$10.6 Billion	Lam to Buy KLA-Tencor in $10.6 Billion Chip Machinery Deal
Western Digital/ SanDisk	October 2015	$19 Billion	Tsinghua Unigroup to Adjust Its Approach to Get NAND Flash
Texas Instruments, Analog Devices, ? /Maxim	October 2015	$9+ Billion Market Cap	Texas Instruments Said in Talks to Acquire Maxim Integrated
Microsemi/ PMC-Sierra	November 2015	$2.5 Billion	Microsemi to Buy PMC-Sierra In Deal Valued at About $2.5 Billion
On Semiconductor or China Resources  / Fairchild Semiconductor	December 2015	$2.5 Billion	China Resources challenges ON Semiconductor with Fairchild bid
Dialog/ Microchip Technology / Atmel	January 2016	$3.6 Billion	Microchip Technology to Buy Atmel for Nearly $3.6 Billion

Ron

Insightful, timely, and accurate semiconductor consulting.

Semiconductor information and news at - http://www.maltiel-consulting.com/

Wheels Fall Off China’s Chip Plans

 The wheels are falling off China's attempt to buy itself a chip industry with the announcement that it has abandoned its attempt to buy a 15% stake in Western Digital for $3.8 billion.

Tsinghua pulled out of the deal after the US government said it would investigate the proposal.

Western Digital is in the process of buying SanDisk, Toshiba's flash memory partner.

It is the latest set-back in a series of frustrated attempts by Tsinghua to buy itself into the semiconductor industry.

Approaches to Micron and Hynix have gone nowhere and Tsinghua’s $2.6 billion offer for stakes plus a board seat in three Taiwanese assembly/test companies Powertech Technology, ChipMOS Technologies and Siliconware Precision Industries (SPIL), are running into trouble as the newly elected Taiwan government – less friendly to China than the previous government – promises unprecedented levels of scrutiny for the deals.

Meanwhile the gap between the semiconductors which China makes and the semiconductors  China buys is widening, says a report from The Information Network.

China produced 113.2 billion ICs in 2015, up from 102.0 billion in 2014, a year-on-year increase of 11.0%.

China imported 305.5 billion ICs in 2015, up from 285.7 billion pieces in 2014, an increase of 6.9% year on year.

That means the ratio of consumption to production increased to 27.0% in 2015 from 26.3% in 2014 and will increase to 28.9% in 2018..

China's fabless companies had 11% worldwide market share in 2014, behind Taiwan's 17%, and the USA's 65%.

China's foundries had a 9% of the worldwide market.

In packaging/assembly, China's sales were around 8% of the worldwide market 2014, compared to Taiwan's 48%.

In contrast, China imported 65% of the global semiconductor market production - $218.4 billion worth of ICs.

So the situation gets worse for China despite 30 years of trying to establish an indigenous chip industry and the recent establishment of huge government funds to promote local IC companies.