Semiconductor Mergers, Acquisitions in 2015 and 2016

 

Since 2015 there has been an accelerating trend of consolidation of semiconductor and semiconductor equipment companies. The trend is due to

 

1. The increasing cost of developing the next generation of semiconductor chips (see Feb 2013 blog Semiconductor Moore's

 Law Running out of Money   )

 

2. Reduced growth rate of the semiconductor industry.

3. China’s increasing effort to gain a strong presence in the semiconductor industry (see June 2012 blog Status of China's Fabless Model and January 2015 Chinese $80 Billion Fabless IC )

 

The table below summarizes the key mergers and acquisitions of semiconductor companies announced since 2015. Before 2015 there was typically one merger per year. 

So far, only Altera’s (purchased by Intel) wafer fab capacity was impacted. There will likely be some impact on SanDisk’s fab capacity through their joint venture with Toshiba.

It is very likely that China will find a way to increase its fabrication capacity. It would not be surprising if in 2016, China increases its semiconductor presence through investment in semiconductor companies such as Micron or Maxim directly or through a joint venture (see China Increasing IC Power )

Most of these deals have not yet gotten regulatory approval and could be cancelled before the deal closes. I will attempt to update the table as these transactions proceed. One deal that already did not happen is Tsinghua trying to buy Micron for $23 billion,

NXP/Freescale

March 2015

$ 12 Billion

NXP to buy Freescale, create $40 billion company

Cypress Semiconductor/ Spansion

March 2015

$ 5 Billion

Cypress and Spansion merge in $5B deal

NXP RF/ Jianguang Asset Management

May 2015

$ 1.8 Billion

Why NXP is selling its RF power business for $1.8 billion

Avago/Broadcom

May 2015

$ 36.7 Billion

Avago Agrees to Buy Broadcom for $37 Billion

Intel/ Altera

June 2015

$16.7 Billion

Intel Agrees to Buy Altera for $16.7 Billion

Microchip/ Micrel

August 2015

$0.8 Billion

Microchip Technology Completes Acquisition of Micrel

LAM/ KLA-Tencor

October 2015

$10.6 Billion

Lam to Buy KLA-Tencor in $10.6 Billion Chip Machinery Deal

Western Digital/ SanDisk

October 2015

$19 Billion

Western Digital to buy SanDisk in $19 billion deal ,

Texas Instruments, Analog Devices, ? /Maxim

October 2015

$9+ Billion Market Cap

Texas Instruments Said in Talks to Acquire Maxim Integrated

Microsemi/ PMC-Sierra

November 2015

$2.5 Billion

Microsemi to Buy PMC-Sierra In Deal Valued at About $2.5 Billion

On Semiconductor or China Resources  / Fairchild Semiconductor

December 2015

$2.5 Billion

China Resources challenges ON Semiconductor with Fairchild bid

Dialog/ Microchip Technology / Atmel

January 2016

$3.6 Billion

Microchip Technology to Buy Atmel for Nearly $3.6 Billion

The following mergers or acquisitions took place before 2015:

Intel with Altera for $18.2 billions, AMAT tried to buy Tokyo Electron for $9.4 billion, Intel with McAfee for $7.7 billion, Avago with LSI for $6.6 billion, TI with National for $6.5 billion, Applied Materials with Varian for $4.9 billion, MediaTek with Mstar for $4 billion, Micron with Elpida for $3.7 billion, Broadcom with NetLogic for $3.7 billion, LAM with Novellus for $3.6 billion, Qualcomm with Atheros for $3.6 billion.

 Table of earlier deals from Mercury News –