Semiconductor Industry Mergers and Acquisitions: Key Deals and Their Impact

There are pluses and minuses to mergers and acquisitions (M&A) in business. On the one hand, it can limit market diversity. But on the other, in a sector like the semiconductor industry, it can expedite innovation. Bringing together the best minds and technologies. And that’s one of the reasons why we’ve seen some key M&A activity in the sector during recent years.

Four Important Semiconductor Industry Mergers and Acquisitions

Renesas Electronics' acquisition of Steradian Semiconductors

Renesas Electronics completed its acquisition of Steradian Semiconductors in October 2022. The acquisition resulted in the combination of Steradian's radar technology with the sensing solution offerings of Renesas. The vision is to further support the development of sensor fusion technology in the automotive industry.

MACOM's acquisition of OMMIC SAS

MACOM completed its$41.7 million acquisition of OMMIC SAS in June 2023. OMMIC’s Paris-based facility has become the foundation for MACOM’s European Semiconductor Centre, which focuses om higher-frequency gallium arsenide (GaAs) and gallium nitride (GaN) MMICs.

Marvell Technology’s acquisition of Inphi

Going back to 2021, Marvell completed its $10 billion acquisition of Inphi. The motive for the acquisition was to enable Marvell Technology to expand its reach in data centres and 5G network infrastructure.

Analog Devices’ acquisition of Maxim Integrated

Also in 2021, the acquisition of Maxim Integrated by Analog Devices for $21 billion resulted in the combination of over 10,000 engineers, 62 design centres, and 23,000 employees across 35 countries. The acquisition was anticipated to change the semiconductor patent landscape.

Pipeline M&A potential

Rumours abound about other potential M&As. One of the most talked about is Intel's move to acquire Advanced Micro Devices (AMD). Hitherto, Intel’s greatest threat. With a  $75 billion deal on the table, the move would strengthen Intel's product portfolio and technological capabilities. But it’s a move the market thinks is unlikely to happen.

After an earlier failed attempt, there are also some questions relating to NVIDIA's potential acquisition of ARM Holdings. This would be an $80 billion deal if it happens.

Watching M&A activity is a good way to take the pulse of the semiconductor industry. It provides insights into industry priorities. The core areas of development. And where there may be failings. If you’re looking for work in the sector, it can also show you where the greatest opportunities lie.

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