Biggest Semiconductor Acquisition Agreements

The initial total of AMs, which was $100.4 billion in 2016, was reduced from $41.1 billion to $59.3 billion. Because several major acquisition deals have not been reached, including the largest in semiconductor history – Qualcomm`s planned $39 billion purchase of NXP Semiconductor, which was raised to $44 billion before being terminated in July 2018. Prior to the explosion in semiconductor purchases four years ago, the chip industry`s ATM agreements averaged $12.6 billion annually over the 2010-2014 period. Abstract the decline in M-A`s U.S. operations in 2018, transactions continue, some of the most valuable transactions in China and Japan. However, these countries face technological constraints for high-precision chip and semiconductor research and development if they are to overcome U.S. dominance in the global semiconductor industry. In the second quarter of 2019, after investments in research and development, semiconductor companies are still considered one of the top strategic priorities. On March 11, 2019, NVIDIA announced that it would buy Mellanox Technologies for $6.9 billion. On March 29, 2019, on Semiconductor Corporation announced that it would buy Quantenna Communications for approximately $1.07 billion. On April 24, 2019, Xilinx (XLNX) announced the acquisition of Solarflare Communications, an agreement expected to be concluded in the second quarter of 2020 (no price has been announced). February 06, 2020 — Semiconductor`s merger and acquisition activities have intensified in 2019, after withdrawing from the historically high MA agreements in 2015 and 2016 over the previous two years. More than 30 semiconductor acquisition contracts in 2019 had a total value of $31.7 billion, up 22% from $25.9 billion in 2018, according to data collected by IC Insights in its new 2020 edition of McClean Report – A Complete Analysis and Forecast of the Integrated Circuit Industry.

The value of semiconductor acquisition contracts reached the third-highest annual value of all time in 2019, but remains well below 2015 and 2016 (Figure 1). Nvidia executives also hinted that the acquisition of ARM could lead to a strong industry alternative to Intel`s dominance over central microprocessors for server computers. Nvidia will also issue $1.5 billion to ARM employees in connection with the planned acquisition. However, Nvidia`s agreement has raised concerns about a U.S. company that owns ARM and how it could affect customers in China, given that the U.S. government could block the licensing of technology. In 2018, the semiconductor M-A was worth $23.2 billion, up from $107.3 billion in 2015. The semiconductor industry began in the 1960s, when most companies were still IDMs (integrated device manufacturers) that manufactured, pocketed, tested and sold IC (integrated circuits). In the first nine months of 2020, thanks to the $40 billion nvidia agreement, the total value of semiconductor contracts reached $63.1 billion in September to buy processor design technology provider ARM in the United Kingdom.