Tue, May 3, 9:32 AM
Tue, Feb. 2, 9:09 AM
Oct. 14, 2015, 1:06 PM
- Bloomberg reports Fairchild (FCS +14.6%) has held buyout talks with fellow analog/mixed-signal chipmakers ON Semi (ON +7.5%) and Infineon (OTCQX:IFNNF). Goldman is advising.
- The report is the latest sign chip industry consolidation remains in full swing in spite of the Nasdaq/SOX's recent selloff. Yesterday, Bloomberg reported SanDisk is talking with Micron and Western Digital about a potential sale.
Jun. 2, 2015, 11:15 AM
- Continuing its recent string of patent portfolio acquisitions, WiLAN (NASDAQ:WILN) has bought "the vast majority" of the patents owned by Infineon's (OTCPK:IFNNF) Qimonda memory unit for $33M.
- The portfolio contains over 7K patents and applications (~5K in the U.S.), and is said to cover "technologies related to DRAMs, FLASH memories, semiconductor processes, semiconductor manufacturing, lithography, packaging, semiconductor circuitry and memory interfaces."
- WiLAN CEO Jim Skippen: "This is WiLAN's most important patent acquisition to date ... It is WiLAN's belief that a significant percentage of the microchips currently being manufactured in the world today most likely are covered by claims associated with the patents ... Consequently, our team is excited about the licensing potential of the portfolio, and will begin immediate efforts to launch a major licensing campaign."
- In tandem with the purchase, WiLAN announces DRAM/NAND flash giant Samsung has licensed the Qimonda portfolio through a multi-year deal.
- Thanks to the events, WiLAN now expects Q2 revenue of more than $34M; the company previously forecast Q2 sales of "at least" $18.3M.
Oct. 13, 2014, 9:58 AM
- Pac Crest has downgraded analog/mixed-signal IC vendors Freescale (FSL -2.9%), ON Semi (ONNN -5.5%), and Silicon Labs (SLAB -3.4%) following Microchip's calendar Q3 warning. In-line with Microchip's cautious remarks, the firm cites evidence of a distributor inventory correction and weak Chinese demand.
- All three names sold off on Friday on account of Microchip, with Freescale and ON registering double-digit declines.
- Meanwhile, JPMorgan has downgraded European chipmakers STMicroelectronics (STM -3.4%) and Infineon (OTCPK:IFNNF) to Neutral. The firm is worried about the impact of German and Chinese macro trends.
Oct. 3, 2014, 4:21 AM
- In a note yesterday, BofA/ML listed the following Buy ideas:
- ABB (NYSE:ABB), CRH (NYSE:CRH), Gamesa (OTCPK:GCTAF, OTCPK:GCTAY), Hugo Boss (OTCPK:BOSSY, OTC:HUGPF), Imperial Tobacco (OTCPK:ITYBF, OTCQX:ITYBY)
- Firm also listed the following Underperform ideas:
- Daimler (OTCPK:DDAIF, OTCPK:DDAIY), Infineon (OTCPK:IFNNF, OTCQX:IFNNY)
Aug. 27, 2014, 11:52 AM
- Credit Suisse has started STMicroelectronics (STM -1%) at Underperform, and European chip peer Infineon (OTCPK:IFNNF +0.7%) at Outperform.
- Bernstein downgraded STM to Underperform a month ago, predicting 2015 revenue growth will be 300 bps below consensus. Shares go for only 0.9x 2015E sales.
- Infineon has rallied since announcing last week it's buying International Rectifier for $3B.
Aug. 20, 2014, 12:18 PM
- Infineon (OTCPK:IFNNF) is paying $40/share, or $3B, in cash to acquire International Rectifier (NYSE:IRF). The price represents a 51% premium to Tuesday's close, and is well above the ~$2B reported by Bloomberg.
- Infineon is paying ~$2.4B net of cash for the analog chipmaker. The deal will be financed with a mixture of existing cash and credit facilities, and is expected to close in late 2014 or early 2015.
- The companies declare IRF's gallium nitride (GaN) power management discrete components and ICs complement Infineon's own GaN offerings, and (echoing arguments made for recent chip deals) that the combined company will benefit from greater R&D scale and manufacturing/operational synergies.
- IRF is now up 47.4% to $39.16. The company has posted its FQ4 report in tandem with the Infineon announcement.
Aug. 20, 2014, 10:15 AM
- Bloomberg reports Infineon (OTCPK:IFNNF) "nearing an agreement to acquire a U.S.- based semiconductor company for about $2 billion," and that a deal could be announced as soon as today.
- No word on whom Infineon is looking to buy. Bloomberg notes it reported last month analog/mixed-signal chipmakers Fairchild (FCS +5.6%), Power Integrations (POWI +11.3%), and Semtech (SMTC +8%) are considered M&A targets, as the chip industry continues to consolidate.
- Shares of all three companies are up sharply, as are those of peers International Rectifier (IRF +5.8%) and Intersil (ISIL +4.4%). FCS and IRF are currently worth $2B; POWI is worth $1.9B; ISIL is worth $1.8B; and SMTC is worth $1.7B.
- "[Infineon] would like to build a stronger presence in power management," says Liberum Capital's Janardan Menon. He adds the market has "high barriers to entry and strong growth prospects," a fact that also hasn't been lost on Texas Instruments and other industry players.
Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2015 fiscal year (ending September 30), the company reported sales of about Euro 5.8 billion with some 35,400... More
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