Market trends and business perspectives
One of the issues with analysing the chip market, as with some others, is that the products are complex and have a huge array of applications. This often makes it difficult to compare one chip with another.
Moreover, some people might not know the difference between a micro-processor and a micro-controller, or what a semiconductor is… and where microchips fit into all this.
So here’s an attempt at an explanation. [Read more…] about Small potatoes: A closer look at chips
Mergers and acquisitions happen quite frequently these days, and there’s a lot of interest surrounding them.
For example, there are currently strong rumours that US smartphone chip giant Qualcomm is about to buy NXP Semiconductor for $40 billion.
NXP itself last year bought Freescale for $12 billion. The deal gave NXP access to the market for micro-controllers, in which Freescale is one of the leading companies.
And in a separate, similarly large deal, Japanese communications colossus SoftBank recently agreed to buy the British chip designer ARM for $32 billion. [Read more…] about Qualcomm could become king of the road if it buys NXP
Chipmakers Qualcomm and NXP Semiconductors have reportedly agreed a $40 billion takeover deal, according to CNBC.
Wall Street Journal reported a couple of weeks ago that Qualcomm was in negotiations to buy NXP for $30 billion, and TechCrunch.com says the acquisition would be “a huge consolidation move for the silicon industry”.
Neither company has so far commented on the talks, and have not confirmed they are taking place.
But now, CNBC is confident that Qualcomm and NXP “have agreed an all-cash handshake deal that Qualcomm will pay $110 a share for NXP … in a deal that would be close to $40 billion”.
Qualcomm has a market capitalisation of more than $100 billion, and earned over $25 billion in revenue in 2015. The company has 27,000 staff and is headquartered in California, in the US.
NXP is valued at $35 billion and had revenues of $6 billion in 2015. It has 45,000 staff and is headquartered in the Netherlands, Europe.
