Semiconductors are key components of electronic devices that drive advances in communications, computing, medicine, military systems, transportation, clean energy, and countless other applications. Since 2015, the global semiconductor market has set off a wave of mergers and acquisitions. In 2015-2016, the market reached a peak in mergers and acquisitions, with more than 30 deals worth $107.3 billion in 2015 and nearly 30 deals in 2016 amounting to $59.8 billion.
Despite a slowdown in the previous two years, semiconductor-related mergers and acquisitions have rebounded this year and are on track to become the third-largest year for semiconductor deals.
Mergers and acquisitions related to network and wireless connected ICs, as well as semiconductor vendors’ desire to add products to the faster market for automotive applications and growth as they enter the next decade, have contributed to the increase in mergers and acquisitions in 2019.
Below, according to the size of the transaction amount, the small editor organized the 2019 global semiconductor industry’s top ten mergers and acquisitions. Some of these deals were announced last year but approved only this year, and some were announced this year but not yet completed.
1. Broadcom’s $10.7 billion acquisition of Symantec Corporate Security
On August 8th Broadcom, the semiconductor and software infrastructure maker, announced that it would buy the corporate security business of Symantec, a cybersecurity firm, for $10.7bn in cash.
The deal effectively splits Symantec in two, with Broadway having Symantec’s entire corporate security portfolio and Symantec brand name, while Symantec will retain a consumer-facing portfolio that includes the LifeLock identity protection brand and Norton antivirus software.
The deal is expected to close in the first quarter of Botong’s fiscal 2020 and will require regulatory approval in the United States, the European Union and Japan.
Founded in 1991, Broadcom is one of the world’s largest semiconductor companies and the world’s largest manufacturer of Wlad chip companies, with more than 2,000 U.S. patents and more than 800 foreign patents. Previously, the company tried to buy Qualcomm, but failed.
Symantec is a global technology leader in designing, developing, and delivering semiconductor and infrastructure software solutions, and the integrated network defense (ICD) platform is unified in managing products, services, and partners to protect enterprises against complex threats across endpoints, networks, applications, and the cloud.
2.Infineon buys Cypress Semiconductor for $10.1 billion
In June, Infineon, the German semiconductor maker, announced that it would buy Cypress Semiconductor for $23.85 a share in a deal valued at 9 billion euros ($10.1 billion).
Infineon’s acquisition of Cypress Semiconductor will be a major acquisition in the semiconductor industry, and the high degree of technology complementarities between the two companies will further expand the market potential of the automotive industry and the Internet of Things, making Infineon the world’s eighth largest chipmaker.
The deal, which has been approved by Cypress’s board of directors and Infineon’s supervisory board, is expected to close in late 2019 or early 2020.
Founded in 1999 as the semiconductor division of the Siemens Group, Infineon’s main business includes the provision of semiconductor and system solutions for automotive and industrial power devices, chip cards and security applications.
Cypress Semiconductor, which designs and manufactures flash memory chips and microcontrollers, has doubled revenue in five years through acquisitions to reach $2.5 billion in 2018.
3. Nvidia buys Melanox for $6.9 billion
In March, Nvidia, the semiconductor maker, announced it would buy chipmaker Mellanox for $6.9bn in all cash. The deal will be The largest acquisition in The Vita’s history and will boost its data centre chip business.
Nvidia’s acquisition of Melanox is based on the latter’s capabilities in data center technology. Once completed, the company’s strength in high-performance computing and cloud computing will be further enhanced.
The deal has been approved unconditionally by U.S. regulators, but regulatory approval in China is still pending. In December, sources said the deal would also be approved unconditionally by the European Union.
Founded in 1999, Melanox is a provider of end-to-end Ethernet and InfiniBand smart connectivity solutions and services for server, storage, and hyper-converged infrastructure.
4.Renesas Electronics successfully completes $6.7 billion acquisition of IDT
In March, Renesas, the Japanese semiconductor giant, announced that it had successfully completed its acquisition of Integrated Device Technology (IDT), the US chipmaker. Upon completion of the transaction, IDT became a wholly owned subsidiary of Renesas Electronics.
Renesas Electronics agreed in September to buy IDT for about $6.7 billion in an effort to boost its competitiveness in self-driving car technology.
At the time, Renesas Electronics said the acquisition was an integration of two industry leaders, embedded processors and analog mixed-signal semiconductors, which were able to optimize the performance and efficiency of high-performance computing electronics systems through their respective products.
Renesas Electronics, a new company founded by the merger of NEC Electronics and Renesas Technologies, is the second-largest automotive chip maker after NXP, offering microcontrollers, analog, power and SoC products, while IDT offers analog mixed-signal products including sensors, connected and radio sources.
5.Wingtech Technology acquires ASSemiconductor for $3.9 billion
On June 5this, Wingtech’s acquisition of AS Semiconductor was approved by the Securities and Futures Commission, the largest semiconductor acquisition to date.
Under the previously disclosed restructuring plan, Wingtech Intends to buy a total of 26.854 billion yuan (about $3.9 billion) of AG GPs and LP shares in a combination of share issueand and cash payments, resulting in an indirect controlling stake in The Group.
Wingtech is the world’s leading 4G/5G intelligent terminal innovation research and development platform, but also the world’s leading mobile phone ODM (original design and manufacturing) industry leader.
Assis Semiconductor, also known as Nexperia, was originally the standard product division of Dutch semiconductor giant NXP, which began operating independently in early 2017 and is the only large vertical semiconductor company in China with complete chip design, wafer manufacturing and packaging testing.
6.Purple State Micro buys Linxens for $2.6 billion
In early June, ZiguangGuo micro disclosed a major asset restructuring plan, the company intends to issue shares by the company’s same controller of the company’s 100% stake in Ziguang Liansheng, the price is initially set at 18 billion yuan ($2.6 billion).
According to the announcement, Ziguang was set up in 2018 to fund the acquisition of assets related to Linxens, a French chip component manufacturer. After the completion of this transaction, Ziguang Liansheng will become a wholly owned subsidiary of Ziguang Guomicro, which will eventually control Linxens through Ziguang Liansheng.
Linxens’ main business is to design and produce intelligent security chip microconnectors, RFID inlays and antennas and ultra-thin flexible LED light strips, and is one of the world’s largest manufacturers of intelligent security chip components.
ZiguangGuo micro focused on integrated circuit chip design and development business, including intelligent security chips, high-stability memory chips, secure autonomous FPGAs, power semiconductor devices, ultra-stable crystal frequency devices and so on, the main business includes integrated circuit chip design and sales, quartz crystal components business.
7.U.S. Applied Materials acquires Japan International Electric for $2.2 billion
In July, Applied Materials, a supplier of semiconductor manufacturing equipment, announced that it had reached a final agreement to buy a full-value dislocated stake in Japan International Electric Co., ltd., held by KKR International Investment Corporation, for $2.2 billion in cash.
The transaction is subject to regulatory approval and is subject to other customary closing conditions and is expected to be completed within 12 months. Upon completion of the transaction, International Electric will be incorporated into the Applied Materials Semiconductor Products business group and will continue to grow in Japan.
According to the Japanese media evaluation, Applied Materials aims to improve the manufacturing technology of semiconductors used in the field of high-speed and high-capacity 5G mobile communication systems through acquisitions.
Applied Materials develops cutting-edge manufacturing and processing technologies to create the world’s most sophisticated chips and displays, according to Applied Materials’ website.
International Electric is a semiconductor batch process system and service company, service storage, wafer foundry and logic customers. Application materials indicate that these process systems and application materials complement each other in the single wafer process system product line.
Intel buys Habana Labs for $2 billion
In mid-December, Intel announced a $2bn acquisition of Habana Labs, an Israeli artificial intelligence (AI) chipmaker.
Upon completion of the acquisition, Habana Labs will continue to be led by the current management team as a separate business unit and report to the Intel Data Platform division, which is home to Intel’s extensive data center artificial intelligence technology.
Intel said the acquisition would strengthen Intel’s ai ai portfolio and accelerate its growth in the fast-growing AI chip market.
At the same time, the acquisition will enable Habana Labs to take full advantage of Intel’s ai ai capabilities, including deep expertise in aia software, algorithms and research over the past three years and a wealth of resources, which will help Habana Labs continue to expand and accelerate.
Habana Labs, founded in 2016, has made great strides in AI chips, developing processor platforms optimized for training deep neural networks, including Gaudi for training AI and Goya for artificial intelligence reasoning.
9. NXP acquires Marvel’s communications chip business for $1.8 billion
At the end of May, Dutch chipmaker NXP Semiconductors said it would buy the communications chip business of semiconductor maker Marvell for $1.76 billion, including Marvell’s WiFi connection business, Bluetooth technology portfolio and related assets.
The deal, which has been approved by nXP and Marvell’s board of directors, is expected to be completed in the first quarter of 2020, depending on customary closing conditions and regulatory approval.
NXP’s agreement with Marvell will help it cross-sell Marvell’s products to customers. In addition, the acquisition will enable NXP to provide complete, scalable processing and connectivity solutions to its key end-market customers.
NXP is a semiconductor company headquartered in the Netherlands, founded for more than 60 years, to produce a wide range of chips for industrial and automotive customers, and is the world’s leading provider of secure connectivity solutions.
With approximately 550 employees worldwide, Marvell has been providing innovative, secure and reliable WiFi and Bluetooth combination solutions for nearly two decades.
10.Micron Completes Acquisition of IMFT Joint Venture Intel Receives $1.25 Billion Breakup Fee
In November, semiconductor maker Micron Technology announced the completion of the acquisition of IMFT, a joint venture with Intel, and paid Intel $1.25 billion in break-up fees. Upon completion of the transaction, IMFT became a wholly owned subsidiary of Micron Technology.
Back in 2006, Intel and Micron each invested about $1.2 billion to set up IMFT to develop and produce NAND flash memory and 3D XPoint memory chips. 3D XPoint technology is a non-volatile storage designed to improve storage performance and reduce storage costs for servers.
But in October 2018, Micron Announced that it would buy Intel’s stake in IMFT inc., after a disagreement over the development of memory chips led to a decision to “break up.”
Micron Technology was founded in 1978 to manufacture NAND memory chips for mobile phones and Internet servers, as well as DRAM chips that help computer processors communicate with memory chips.
In the small compilation of the top 10 mergers and acquisitions, Broadcom’s acquisition of Symantec Corporate Security is the largest this year, and one of the two transactions worth more than $10 billion, while the largest domestic turnover is the acquisition of ANSemiconductor, the top 10 mergers and acquisitions involving a total of $48.15 billion.
Over the past five years, mergers and acquisitions have reshaped the entire semiconductor industry. In the future, as technology continues to evolve and competition continues to intensify, and with cost, research and development productivity and other factors, semiconductor companies will continue to expand their scale and strengthen their capabilities through acquisitions. This is an important strategy, even for industry leaders.