Microsoft Confirms GitHub Acquisition

After recent talks, Microsoft has now officially confirmed that it will be merging GitHub to master. The acquisition will cost $7.5 billion, and has received mixed reactions so far. A staple of the open source community, GitHub is well known to Hackaday readers, and has played a key role in developing an incredible amount of the software we use on a daily basis.

Microsoft has embarked on a community crusade of late, seemingly trying to win some respect from developers and makers. Under the encouragement of Satya Nadella, we’ve had Visual Studio Code, Typescript, the Ubuntu-on-Windows saga, and many more. It’s hard to tell whether these endeavours have succeeded in winning the hearts of the community or not, but those who distrust Microsoft may be looking to make a move away from GitHub. In fact, since murmurs started about the possibility of the acquisition, GitLab, one of GitHub’s major competitors, has reported 10x the number of normal repositories moving to GitLab.

How does GitHub make money? Mainly through paid private repositories plans, and GitHub Enterprise for businesses. This provides GitHub with enough cash to allow free public repositories for the community. It will be interesting to see what changes in business and culture are made (if any) by Microsoft’s Nat Friedman (founder of Ximian) who will be taking the role of GitHub CEO.

To keep a close eye on your GitHub activity, you can monitor your repositories with an LED matrix.

What’s The Deal With Atmel And Microchip?

It’s been nearly a year since Microchip acquired Atmel for $3.56 Billion. As with any merger, acquisition, or buyout, there has been concern and speculation over what will become of the Atmel catalog, the Microchip catalog, and Microchip’s strategy for the coming years.

For the Hackaday audience, this is a far more important issue than Intel’s acquisition of Altera, On Semi and Fairchild, and even Avago’s purchase of Broadcom in the largest semiconductor deal in history. The reason Microchip’s acquisition of Atmel is such an important issue is simply due to the fact the Hackaday community uses a lot of their parts. This was a holy war, and even changing the name of a line of chips to ‘MCMega’ would result in a consumer rebellion, or at least a lot of very annoying tweets.

For the record, I’ve tried my best to figure out what’s going on with Microchip’s acquisition of Atmel for the last few months. I’ve talked to a few Microchip reps, a few Atmel reps, and talked to a few ‘out of band’ connections – people who should know what’s going on but aren’t directly tied to either Atmel or Microchip. The best I’ve come up with is a strange silence. From my perspective, it seems like something is going on, but no one is saying anything.

Take the following with several grains of salt, but Microchip recently got in touch with me regarding their strategy following their Atmel acquisition. In a few thousand words, they outlined what’s going on in casa Microchip, and what will happen to the Atmel portfolio in the future.

Broad Strokes

In broad strokes, the Microchip PR team wanted to emphasize a few of the plans regarding their cores, software, and how Microchip parts are made obsolete. In simple, bullet point terms, this is what Microchip passed on to me, to pass on to you:

  • Microchip will continue their philosophy of customer-driven obsolescence. This has historically been true – Microchip does not EOL parts lightly, and the state of the art from 1995 is still, somewhere, in their catalog.
  • We plan to support both Atmel Studio 7 and MPLAB® X for the foreseeable future.
  • Microchip has never focused on “one core”, but rather on the whole solution providing “one platform.” This is also true. A year ago, Microchip had the MIPS-based PIC-32 cores, a few older PIC cores, and recently Microchip has released a few ARM cores. Atmel, likewise, has the family tree of 8 and 32-bit AVR cores and the ARM-based SAM cores.
  • We will continue to support and invest in growing our 8-bit PIC® and AVR MCU product families.

Specifics

In addition to the broad strokes outlined above, Microchip also sent along a few questions and answers from Ganesh Moorthy, Microchip’s President and COO. These statements dig a little bit deeper into what’s in store for the Microchip and Atmel portfolios:

How will the 32-bit products complement each other? Atmel has a few 32-bit microcontrollers, like the SAM and AT32 series. Microchip has the PIC-32. The answer to this question is, “Many of the 32-bit MCU products are largely complementary because of their different strengths and focus.  For example, the SAM series has specific families targeting lower power consumption and 5 volts where PIC32 has families more optimally suited for audio and graphics solutions. We plan to continue investing in both SAM and PIC32 families of products.

Will Atmel’s START support 8-bit AVRs? “Yes, although it is too early to commit to any specific dates at this stage, we consider modern rapid prototyping tools, such as START and the MPLAB Code Configurator, strategic for the our customers to deliver innovative and competitive solutions in this fast-paced industry.”

Now that Microchip has a complete portfolio of low-power, inexpensive 32-bit microcontrollers, will the focus on 8-bit product be inevitably reduced? No, we see that in actual embedded control applications there is still a large demand for the type of qualities that are uniquely provided by an 8-bit product such as: ease-of-use, 5V operation, robustness, noise immunity, real-time performance, long endurance, integration of analog and digital peripherals, extremely low-static power consumption and more. We don’t think that the number of bits is an appropriate / sufficient way to classify a complex product such as the modern microcontroller. We believe that having the right peripherals is actually what matters most.”

Security, Memories, WiFi, and Analog products. For both Atmel and Microchip, the most visible products in each of their portfolios is the lineup of microcontrollers. This isn’t the limit of their portfolios, though: Atmel has space-grade memories, Microchip has some very useful networking chips, and both companies have a number of security and crypto chips. In the statements given by Moorthy, very little will change. The reason for this is the relative lack of overlap in these devices. Even in segments where there is significant overlap, no EOLs are planned, circling back to the, “philosophy of customer-driven obsolescence.” In other words, if people keep buying it, it’s not going away.

The Takeaway

What is the future of Microchip post-Atmel acquisition? From what I’m seeing, not much. Microchip is falling back on their philosophy of ‘customer-driven obsolescence’. What does that mean? Any non-biased assessment of Microchip’s EOL policy is extremely generous. The chip found in the Basic Stamp 1, from 1993, is still available. It’s not recommended for new designs, but you can still buy it. That’s impressive any way you look at it.

The one thing we’re not getting out of this pseudo press release is information about what Atmel will be called in a few years. Will the Atmel mark be subsumed by a gigantic letter ‘M’? Will the company retain two different trademarks? There is no public information about this.

Yes, I know this post is a nearly verbatim copy of a pseudo press release. I’m not particularly happy this information was presented to me this way, but then again, the Atmel/Microchip ecosystem has been impressively secretive. This is the only information that exists, though, and I’m glad to have it in any event.

That said, there are a lot of people in the Hackaday community that want to know what the deal is with Microchip and Atmel. Short of pulling Jerry Seinfeld out of retirement, this is the best we’re going to get for now. Of course, if you have any info or speculation, the comments below are wide open.

Mergers and Acquisitions: Analog and Linear

Analog Devices and Linear Technology have announced today they will combine forces to create a semiconductor company worth $30 Billion.

This news follows the very recent acquisition of ARM Holdings by Japan’s SoftBank, and the later mergers, purchases or acquisitions of On and Fairchild, Avago and Broadcom, NXP and Freescale, and Microchip and AtmelIntel and Altera, and a few more we’re forgetting at the moment.

Both Analog and Linear address similar markets; Analog Devices is best known for amps, interface, and power management ICs. Linear, likewise, isn’t known for ‘fun’ devices, but without their products the ‘fun’ components wouldn’t work. Because the product lines are so complimentary, the resulting company will stand to save $150 Million annually after the deal closes.

Analog and Linear are only the latest in a long line of semiconductor mergers and acquisitions, but it will certainly not be the last. The entire industry is consolidating, and the only way to grow is by teaming up with other companies. This leads the question if there will eventually only be one gigantic semiconductor company in the future. You’ll get different answers to that question from different people. Hughes, Fairchild, Convair, Douglas, McDonnell Douglas, North American, Grumman, Northrop, Northrop Grumman, Bell, Cessna, Schweizer and Sikorsky would say yes. Lockheed Martin and Boeing would say no. It’s the same thing.

Rumors of Xilinx Sale Abound

The companies that design and build the chips we all use – Atmel, Texas Instruments, Microchip, NXP, Freescale, Intel, Altera, Avago, Broadcom, and On Semi are all buying each other, merging, and slowly becoming two or three gigantic semiconductor companies. The question on everyone’s mind is, ‘which company will be next?’ The answer might be Xilinx, inventors of the FPGA and designers of some really cool parts.

The Wall Street Journal and Barron’s reported a few regulatory filings from Xilinx last week. This could signal an acquisition or merger of the company When this could happen is anyone’s guess, but rumors are flooding the Internet over who would buy Xilinx.

Until recently, Xilinx’s largest competitor in the FPGA market was Altera. That is, until Intel came by with a check for $16.7 Billion. The revenue, size, and market cap of both Xilinx and Altera aren’t too different, leading the question of who would have the money to buy Xilinx and isn’t Intel. Aren’t rumors fun?

Xilinx’s portfolio include high performance, mid-range and low-cost FPGAs as well as interesting hybrid devices. One such hybrid is Zynq, an FPGA and fast ARM Cortex A9 processor in the same package. All these chips will be made for years to come in one form or another. The only question is if Xilinx will make these chips, or will the company continue on under some new branding.

Microchip’s Proposal To Acquire Atmel

A proposal from Microchip to acquire Atmel has been deemed a ‘superior proposal’ by Atmel’s board of directors (PDF). This is the first step in the acquisition of a merger between Microchip and Atmel, both leading semiconductor companies that have had a tremendous impact in the electronics industry.

Microchip is a leading manufacturer of microcontrollers, most famously the PIC series of micros that can be found in any and every type of electronic device. Atmel, likewise, also has a large portfolio of microcontrollers and memory devices that are found in every type of electronic device. Engineers, hackers, and electronic hobbyists are frequently sided with Microchip’s PIC line or Atmel’s AVR line of microcontrollers. It’s the closest thing we have to a holy war in electronics.

Last September, Dialog acquired announced plans to acquire Atmel for $4.6 Billion. Today’s news of a possible acquisition of Atmel by Microchip follows even larger mergers such as NXP and Freescale, Intel and Altera, Avago and Broadcom, On Semiconductor and Fairchild, and TI and Maxim. The semiconductor industry has cash on hand and costs to cut, these mergers and acquisitions are the natural order of things.

While the deal is not done, the money is on the table, and Atmel’s board is apparently interested.

ON Semiconductor Acquires Fairchild

In the continuing process of semiconductor companies buying each other up, ON Semiconductor has acquired Fairchild Semiconductor for $2.4 Billion.

ON Semi and Fairchild’s deal is only the latest in a long line of mergers and acquisitions. We’ve recently seen Dialog’s buyout of Atmel, Avago’s purchase of Broadcom,  NXP and Freescale’s merger, and soon might see TI buy Maxim. We’re currently in the great time of acquisition, with nearly $100 Billion flowing from company to company in just a few months.

Companies have cash to spend and costs to cut. This latest deal is expected to save $150 Million in annual costs.

Fairchild has a long and storied history in the semiconductor industry, with the first integrated circuit produced in a Fairchild lab in Palo Alto. [Bob Widlar] made Fairchild his home until famously leaving for National Semiconductor in 1965. Somewhat ironically, Fairchild Semiconductor was bought by National Semiconductor in 1987.

ON Semiconductor’s history is not nearly as interesting, being spun off of Motorola’s semiconductor business in 1999. Although ON’s main line of business was discrete components, ON also has a catalog of quite a few power management ICs.

Unfortunately, because ON Semi bought Fairchild and not the other way around, we’re stuck with what is probably the worst logo in the entire semiconductor industry: drop-shadowed balls are so mid-90s!

Mergers and Acquisitions: TI Looks to Snatch Up Maxim

BloombergBusiness is reporting rumors that Texas Instruments is in talks to acquire Maxim Integrated. Both companies have declined to respond to this leaked information. Earlier this year there were rumors that the two companies had been in talks in 2014 that didn’t result with an agreement.

We find it interesting that the article mentions Maxim doesn’t need to scale — yet we often find Maxim parts in short supply. If TI were to acquire the company this could change for some Maxium parts. Still, this move looks a lot like TI trying to bolster its hold on the portions of the analog chip market which both companies currently occupy.

Already this year we’ve seen Dialog acquire Atmel, Avago acquire Broadcom, and the merger agreement between Freescale and NXP. We probably missed a few, and this has us wonder who is next. Let us know what you think in the comments below.

[Thanks Kumar]