Saturn V

Credence and LTX Merging

The Semiconductor Equipment Industry Revenue is less than it was a decade ago. Credence and LTX are a distant No. 4 and No. 5 in a shrinking business, and both are struggling. There are some synergies in this merger, but can the combined entity be profitable ? LTX is the smaller player but has the advantage of being tied to a healthy TI. Credence's fate hinges upon a floundering AMD.

More consolidation will be needed in this business, unless the semiconductor equipment business begins to grow again. I think that within 2 years,the new Credence-LTX entity will merge with one of the big three in the tester business, ie Advantest,Teradyne, or Verigy.