Qualcomm for ARM? Intel for MediaTek? Pondering Chip M&A
By Tiernan Ray, Barron's
June 17, 2014
A couple of folks on the Street today were banging the drum for mergers and acquisitions in semiconductors, arguing that both tax reasons and the search for earnings growth should propel further deals.
FBR & Co.‘s Christopher Rolland today opines that semiconductors are primed for a phenomenon known as “tax inversion” that has already prompted a lot of deal making in the pharmaceuticals industry, in which a U.S. company basically moves almost all its equity to a foreign property in order to shelter overseas cash.
“An inversion occurs when a U.S. corporation reverse merges into foreign acquisition and re-domiciles in a more favorable tax jurisdiction. Besides a favorable ongoing tax rate, the new entity is often able to repatriate its U.S. cash without penalty,” explains Rolland.
E-mail This Article | Printer-Friendly Page |
Related News
- 93% of Semiconductor Leaders Expect Rapid M&A Pace to Continue
- Should Altera Worry About Intel's M&A Record?
- Arm Collaborates with Industry Leaders to Build AI Foundations of the Future
- Two Acquisitions Make 2020 Second-Highest Year for Semi M&As
- Nvidia's $40 Billion ARM Purchase Will Test Current M&A "Ceiling"
Breaking News
- Omni Design Technologies Joins Intel Foundry Accelerator IP Alliance
- Efabless Announces the Release of the OpenLane 2 Development Platform, Transforming Custom Silicon Design Flows
- TSMC Reports First Quarter EPS of NT$8.70
- Brisbane Silicon publishes DPTx 1.4 IP Core
- GUC provides 3DIC ASIC total service package to AI/HPC/Networking customers
Most Popular
- U.S. Subsidy for TSMC Has AI Chips, Tech Leadership in Sight
- Cadence Unveils Palladium Z3 and Protium X3 Systems to Usher in a New Era of Accelerated Verification, Software Development and Digital Twins
- Zhuhai Chuangfeixin: OTP IP Based on 90nm CMOS Image Sensor Process Technology Successfully Mass Production
- Silvaco Announces Expanded Partnership with Micron Technology
- OPENEDGES Unveils ENLIGHT Pro: A High-Performance NPU IP Quadrupling its Previous Generation's Performance