The scale of M & A transactions in the chip industry has exceeded 100 billion US dollars this year
Chip company transactions reached $100.6 billion
So far this year, chip companies have announced $100.6 billion in M & A deals, up from $37.7 billion for the whole year, according to Dealogic, a financial data provider. Although the number of chip companies' m & A transactions this year is 276, down from 369 last year, the scale of the transactions is larger, including Anhua hi tech's record $37 billion acquisition of Broadcom in May this year.
This year, the scale of M & A transactions of chip companies may be further expanded. Last week, Bloomberg reported that analog devices, Maxim integrated products, SanDisk and Fairchild Semiconductor international are in talks on different trading options. Representatives of the four companies declined to comment.
"It's either acquired or sold," says Alex lidow, CEO of Yipu power conversion. Thirty years after leading the chipmaker, International Rectifier, Lido co founded the Yipu power conversion company in 2007.
M & A aims to reduce production costs
For a long time, chip manufacturers have been using acquisition transactions to acquire new technologies, but recently announced many merger transactions are similar to the wave of mergers and acquisitions in some old industries, aiming to reduce costs in production, sales and engineering fields. For example, Anhua high tech expects to save $750 million in costs per year from 2017 after the acquisition of Broadcom. Before Dell announced its $67 billion acquisition of EMC last week, Anhua hi tech's merger with Broadcom was the world's largest high-tech deal.
Gartner, a market research firm, forecast this month that global semiconductor revenue will fall 0.8% this year, the first decline since 2012. Global semiconductor sales will grow 1.9% to $344.1 billion next year, Gartner said.
Note: reprint "semiconductor industry observation"
Hard disk manufacturer western data acquired storage chip manufacturer Sandi for us $19 billion
Western data will acquire SanDisk in cash and stock of $86.50 per share, with a total value of about $19 billion. The offer is 15% higher than SanDisk's closing price on Tuesday.
Affected by the news, SanDisk shares rose 6.4% to $80 in pre market trading today, while western data shares fell 1.1% to $74.
SanDisk contacted western data and Meguiar about the sale last week, the report said. Later, Meguiar withdrew from the negotiations, while western data held separate negotiations with SanDisk.
SanDisk is one of the world's largest flash manufacturers. Flash memory chips are used in the storage system of mobile devices, and are more and more used by computers and data centers. The deal is expected to close in the third quarter of 2016.
At the end of September, Ziguang group announced that it would invest 3.8 billion US dollars (about 24 billion yuan) to acquire western data shares. After the completion of the transaction, Ziguang group will become the largest shareholder of Western data. (Li Ming)
Western Digital Corp is a world-famous hard disk manufacturer, founded in 1970. It is headquartered in California, USA. It has branches or offices around the world to provide storage products for users on five continents. For a long time, WD has been committed to providing perfect storage solutions for global PC users. As a pioneer and long-term leader in the global memory industry, WD has rich service experience in providing users and organizations collecting, managing and using digital information, as well as good reputation, especially in the European and American markets. Western data used to be the world's largest hard disk manufacturer, but later it was surpassed by Seagate, resulting in western data becoming the world's second largest hard disk manufacturer, but the hard disk products of Western data are still widely praised in the world!
The inspiration of global semiconductor chip market in 2015 to the development of Shenzhen silicon power
According to the world semiconductor trade statistics Organization (WSTS) survey data, due to weak market demand, the three-month moving average of global chip sales in July this year declined from the same period last year. YTD's global chip sales are still growing at 2.7% year to date, but given that weak demand will continue into the third quarter, which has always been the strongest quarter, 2015 may be a year of zero growth or even recession for the chip market.
The three-month moving average of global semiconductor sales in July this year was about US $27.88 billion, down 0.9% from July 2014, and 0.4% from US $27.99 billion in June this year.
On the global semiconductor chip market in 2015
From the perspective of regional market, the annual sales volume of China, Asia Pacific and America increased, but Europe (- 12.5%) and Japan (- 13.3%) declined sharply, partly due to the impact of currency depreciation. This has continued to have an impact over the past year.
The impact of the exchange rate was particularly evident in July this year, especially in comparison with the market growth of the euro and the US dollar. In Euro terms, semiconductor sales in Europe are about 2.549 billion euros, down 0.3% from last month, but up 7.1% from the same period last year. In addition, YTD sales in Europe have grown by 12.7% compared with the first seven months of 2014; however, the short-term market growth trend is also slow in terms of Euro or US dollar.
Note: the above information is from the website of electronic enthusiasts
In 2015, the demand for semiconductor chip test equipment was cold and hot, and it is still in a weak state in the fourth quarter. According to President Yang of Shenzhen silicon power, this is an opportunity for chip test equipment companies to overtake in a corner.
Shenzhen silicon electric Relocation Notice