Mergers

3 Articles

Microchip Acquires Microsemi For $8.35B

March 2, 2018 by 37 Comments

Microchip has acquired Microsemi for $8.35 Billion dollars. Rumors of this acquisition were floating around earlier this week, but now the deal is done.

This acquisition is the latest in a years-long process of consolidation in the silicon industry. Previously, Broadcom attempted a hostile takeover of Qualcomm for One… Hundred… Billion dollars. Lattice would have been bought if the deal wasn’t shut down for national security concerns. Of course, Microchip bought Atmel in a deal likened to the fall of Constantinople, NXP and Freescale merged, Intel bought Altera, Linear and Analog are one, and On Semiconductor acquired Fairchild.

With the acquisition of Microsemi, Microchip will be looking to add a few interesting components and capabilities to their portfolio. In contrast to Microchip’s portfolio, you won’t find many Microsemi parts on a hacker’s workbench; they’re dealing with stuff like optical networking and avionics. Closer to home, they have a large line of FPGAs and some nice frequency synthesizers.

Of course, there are slightly cooler components in Microsemi’s portfolio. If you’ve ever wanted a rad-tolerant telemetry controller for reaction wheels and thruster assemblies, they’ve got your back. Just connect that to Microchip’s rad-hard Arduino and you have a complete satellite built from Microchip parts.

Mergers And Acquisitions: TI Looks To Snatch Up Maxim

October 28, 2015 by 28 Comments

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]

Mergers And Acquisitions: Dialog Buys Atmel

September 22, 2015 by 43 Comments

Dialog Semiconductor has announced their acquisition of Atmel for $4.6 Billion.

In recent years, semiconductor companies have been flush with cash, and this inevitably means consolidation. NXP and Freescale merged in March. In June, Intel bought Altera for $16.7 Billion just a week after Avago bought Broadcom in the largest semiconductor deal ever – $37 Billion.

The deal between Dialog and Atmel is not very big; the combined revenue of both companies should be $2.7 Billion, not even in the top-20 semiconductor companies by revenue. However, Atmel is an extremely big player in the Internet of Things and the nebulous ‘maker’ market. Dialog’s portfolio is complementary to Atmel’s, focusing on mobile platforms such as smartphones, e-readers, and tablets. The future is in the Internet of Things, and Dialog wants to get in on the ground floor.

Dialog’s current portfolio is focused mainly on mobile devices, with Bluetooth wearables-on-a-chip, CODEC chips for smartphones, and power management ICs for every type of portable electronics. Atmel’s portfolio is well-established in automotive, smart energy metering, and the maker movement. While the Arduino may be Atmel’s most visible contribution to the industry, the Arduino itself is just a fraction of Atmel’s sales in this space. Atmel parts can already be found Internet of Things products like the LightBlue Bean (an 8-bit AVR), and the Tessel 2 Internet of Things board (a 32-bit Atmel ARM).

Curiously, neither Dialog nor Atmel have many sensor or MEMS products, and the future of wearables, portable electronics, and the Internet of Things will depend on these sensors. STMicroelectronic produces both the microcontrollers and sensors that are packed into phones. TI is nearly a full-stack hardware company, able to produce everything that will go into a wearable or Internet of Things device, all the way from the power regulator to the microcontroller. Although this may be seen as a shortcoming for Dialog and Atmel, both companies combined are still many times smaller than the likes of Avago/Broadcom or NXP/Freescale there’s plenty of room for more acquisitions to round out their future needs.

As for what changes will come to Dialog and Atmel’s portfolio, don’t expect much. Unlike the NXP and Freescale merger where both companies have a lot products that do pretty much the same thing, the portfolios of Dialog and Atmel build on each other’s strengths. You’ll have your 8-bit AVRs for a few more decades, and with Dialog’s focus on connectivity, we can expect even more tools for building the Internet of Things.