Qualcomm in Talks to Acquire NXP Semiconductors

Posted 6 October 2016

Qualcomm Inc. is in talks to acquire NXP Semiconductors NV, a deal that likely would cost more than $30 billion and accelerate a consolidation rush in the semiconductor industry. according to multiple press reports. If the deal goes ahead, it could become one of the largest in a historic period of consolidation in semiconductors. NXP itself completed in December its merger with Freescale Semiconductors that it valued at $40 billion.
The combination of the two companies will create the world’s third largest semiconductor company with annual revenues of nearly $27 billion, according to rankings by IC Insights.
The deal would propel Qualcomm into the embedded and automotive markets where it is seeking inroads amid declining growth in its core smartphone market (both companies are Appple supplier). Following its takeover of Freescale, NXP Semiconductor has been declared the leading automotive chip vendor for 2015 by market research firm Strategy Analytics, with a 14.2% share of the $27.4 billion automotive semiconductor market last year.
The value of the M&A deals reached more than $100 billion last year and more than $50 billion so far this year.

FF



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