Rumors have been circulating this last weekend of the largest semiconductor acquisition ever. Broadcom might buy Qualcomm for the princely sum of one hundred Billion dollars.
You will most likely be familiar with both Qualcomm and Broadcom for their wireless and cellphone chipsets. As far as the Maker community is concerned, Broadcom makes the chipset for the Raspberry Pi, but in the context of a two hundred Billion dollar company, a ‘maker’ focused Linux dev board is the equivalent of a rounding error on a balance sheet.
This news comes a little more than a year after the announcement that Qualcomm is snatching up NXP, and two years after the news of NXP is merging with Freescale. The industry is in a state of consolidation.
This proposed deal follows several other semiconductor mergers and acquisitions including NXP and Freescale, Intel and Altera, Avago and Broadcom, On Semiconductor and Fairchild, and the one we’re most befuddled with, Atmel and Microchip. Why are these companies merging? Because they’re sitting on mountains of cash. All of these mergers with the exception of Avago and Broadcom, have been for single-digit Billions of dollars. The merger of Broadcom and Qualcomm — if it happens — will be the largest merger of two semiconductor companies ever. That’s easy to do when both Broadcom and Qualcomm are on the top ten list of largest semiconductor companies, but it is evidence enough that the mergers and acquisitions in the industry are not slowing down.