Wednesday, July 27, 2016

Update 3: $30Bill Semiconductor Merger - Analog Devices buying Linear Technology

Semiconductor companies continue to merge in 2016. The latest is Analog Devices buying Linear, to boost its profitability and increase its share in the fragmented market for analog chips, which process signals such as sound, light and temperature and convert them into digital signals. The chips are central to smart phones and devices connected to the internet

Linear products are mainly in 44% industrial, 24% transport, and 18% in high-growth communications. In its transportation business, Linear is the leader in BMS (Battery Management Systems) for electric cars. Specifically, Linear is the brains behind the failsafe mechanisms that keep your electric car from just stopping because the battery died.

A list of previous mergers and acquisitions is at Update:China 2015/2016 Semiconductor Mergers, Acquisitions

A key reason for all these merger and acquisitions is the growing cost of semiconductor fabs (see March 2012 blog - Moore's Law End? (Next semiconductors gen. cost $10 billion)), 

the increased cost of shrinking semiconductor devices (see July 2013 blog -  Latest Transistor Channel (Moore Law Getting Too Expensive)), and 

China push to enter semiconductor market (see China 2015 - 2016 Semiconductor Mergers, Acquisitions)

More about Analog Devices buying Linear the article below

Insightful, timely, and accurate semiconductor consulting.
Semiconductor information and news at -

ADI to Acquire Linear Tech for $14.8 Billion

Dylan McGrath
7/26/2016 05:22 PM EDT 

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