merger and acquisition

2 Articles

Infineon Buys Cypress For $10B

June 6, 2019 by 11 Comments

Infineon will acquire Cypress Semiconductors for nearly $10 Billion dollars. This is the latest merger or acquisition in the semiconductor industry, and these mergers and acquisitions show no sign of stopping anytime soon.

Infineon’s market currently consists mostly of products aimed at the automotive market and power management and control. Cypress, likewise, has a wide portfolio of automotive electronics, from the guts of instrument clusters to the brains of infotainment systems. The automotive electronics industry is going gangbusters right now, and companies in the market are flush with cash; Infineon acquiring Cypress allows both companies to focus their R&D to develop products for the same market.

As with all mergers and acquisitions, there is the question of what may be lost, or what may go out of production. Cypress is most famous for their PSOC microcontrollers, but for now those uCs, and their CapSense capability, seem safe. Cypress is also noteworthy for manufacturing old-school memories, but again it looks like you’ll still be able to buy these years down the line; in any event, Alliance memory is still around stuffing DRAMs in DIPs.

This acquisition of Cypress by Infineon is one of the largest in recent memory. Apple recently bought a $600 Million stake in Dialog, and Microchip acquired Microsemi for $8.35 Billion. Tesla bought Maxwell Technologies for a mere $218 Million. This deal between Infineon and Cypress puts the company in the upper echelon of recent mergers and acquisitions.

Rumors Of Xilinx Sale Abound

February 1, 2016 by 28 Comments

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.