Darspal S Mann
Sep. 8, 2015, 7:13 PM
- Intersil (NASDAQ:ISIL) is buying Great Wall Semiconductor, an Arizona-based provider of MOSFET power amplifying/switching ICs with 10 employees and 22 patents, for $19M in up-front cash + up to $4M in earn-out payments. The deal is expected to be neutral to 2015 EPS.
- Intersil: "GWS's design team brings valuable experience leveraging advanced design and process technology to enable power efficiency gains and footprint reduction in complex power systems. GWS's existing and emerging FET products in combination with Intersil's power controller portfolio, are expected to expand Intersil's addressable market and provide compelling integration opportunities..."
Jun. 19, 2015, 4:43 PM
- Texas Instruments (NASDAQ:TXN) could be gearing up to make the next big deal in what already has been a record-breaking year for M&A in the semiconductor industry, bankers and analysts tell Reuters.
- TXN is said to be looking for large acquisitions, and held talks to acquire Maxim Integrated Products (NASDAQ:MXIM) late last year but the company decided not to sell itself; analysts say TXN also could look at Analog Devices (NASDAQ:ADI), Linear Technology (NASDAQ:LLTC), Microchip Technology (NASDAQ:MCHP), Intersil (NASDAQ:ISIL) and Atmel (NASDAQ:ATML).
- FBR analyst Christopher believes TXN should act by the end of the year while NXP, one of its fastest growing rivals, is tied up awaiting approval for its merger with Freescale Semiconductor; TXN reportedly considered buying Freescale before NXP acquired it in March.
May 27, 2015, 3:00 PM
- Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
- A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
- Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
- Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Aug. 20, 2014, 11:51 AM
- Fairchild (FCS +2.5%), Intersil (ISIL +1.3%), Semtech (SMTC +2.6%) and Power Integrations (POWI +3.3%) have all given back a chunk of their early gains. Peer International Rectifier, which also rallied, has been halted.
- All 5 companies had jumped on a Bloomberg report stating Infineon is nearing a deal to buy a U.S. chipmaker for ~$2B.
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.
Jun. 17, 2014, 6:58 PM
- The consolidation wave that has hit the semi industry could soon yield tax inversion deals for foreign firms similar to deals seen in the healthcare industry, says FBR's Christopher Rolland.
- Inversion deals allow U.S. companies buying foreign firms to see lower tax rates if less than 80% of the equity in the new company is owned by legacy U.S. shareholders, and the post-merger company has substantial foreign ops.
- Rolland thinks ARM (ARMH), NXP (NXPI), Mellanox (MLNX), and Taiwan's MediaTek could be among the foreign companies targeted by U.S. chipmakers. Worth noting: Mellanox sells more than just chips, and ARM's business model depends on the company maintaining a neutral status within the industry.
- Meanwhile, Nomura's Romit Shah names 15 potential M&A candidates, and divides them into 3 groups: "Sub-scale companies" with high margins and strong IP; "strategic companies" with compelling product lines; and "undervalued companies."
- Shah's "sub-scale companies:" IDTI, ISIL, MTSI, MCRL, SMTC, SLAB.
- "Strategic companies:" ALTR, AMCC, ATML, CAVM, MPWR, BRCM ($22.5B market cap could make it tough to digest).
- "Undervalued companies:" DIOD, IRF, MSCC.
May 11, 2011, 3:14 PM
FBR Capital considers recent chip deals for Atheros (ATHR) and National Semi (NSM) a "solid start for tech M&A," citing SLAB, ATML, FCS, IRF, MXIM, ADI, LLTC and ISIL as potential takeover targets. Given techs' increasing confidence about the economy and that balance sheets are flush with cash, "more M&A activity could be on the come."| May 11, 2011, 3:14 PM