$130 bln takeover to shake up the chip in­dus­try?

Financial Mirror (Cyprus) - - FRONT PAGE -

Semi­con­duc­tor maker Broad­com made a bid to ac­quire its ri­val Qual­comm on Mon­day in a deal that would be the largest takeover in the tech in­dus­try to date. Broad­com has of­fered to buy all of the out­stand­ing shares of Qual­comm for $60.00 in cash plus $10.00 per share in Broad­com shares.

The pro­posed deal would amount to roughly $130 bil­lion and in­stantly pro­pel Broad­com to third place in the global semi­con­duc­tor in­dus­try. As our chart il­lus­trates, Broad­com and Qual­comm had a com­bined mar­ket share of 8.4% in the ev­er­grow­ing semi­con­duc­tor in­dus­try last year.

Broad­com’s of­fer comes at a sur­pris­ing time, con­sid­er­ing that Qual­comm is cur­rently en­trenched in a le­gal bat­tle with one of its big­gest cus­tomers, Ap­ple. After the iPhone maker had sued Qual­comm for “charg­ing roy­al­ties for tech­nolo­gies they have noth­ing to do with”, the chip­maker sued Ap­ple back for al­legedly shar­ing in­for­ma­tion with leader In­tel.

Global semi­con­duc­tor sales have risen sharply over the past two decades as the rise of mo­bile de­vices has led to a steep in­crease

semi­con­duc­tor mar­ket in de­mand for mi­cro­pro­ces­sors and mem­ory chips. In 2016, world­wide semi­con­duc­tor sales amounted to roughly $340 bln, up from $204 bln at the turn of the mil­len­nium. (Source: Statista)

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