The Value of Small M&A Deals for Chipmakers
By Syed Alam, Accenture
EETimes (May 26, 2022)
The semiconductor industry has been hit by a “perfect storm” — an ecosystem shocked by skyrocketing chip demand and supply chain issues all at once. Leaders in the semiconductor industry understand that to stay competitive with new resources and capabilities, they must find innovative ways to take advantage of those unique opportunities.
For semiconductor businesses, mergers and acquisitions have been a traditional method of growth. Increased regulatory scrutiny and fewer large semiconductor acquisition targets, however, have created a need for chipmakers to learn how to maximize their value from smaller transactions.
SMALLER DEALS ARE ON THE RISE
Between 2017 and 2020, large blockbuster deals over $1 billion increased annually as a proportion of total merger and acquisition (M&A) transactions from 2% in 2017 to 8% in 2020. However, over the past year and a half, regulatory, economic, and geopolitical shifts have had a clear impact on the market. Starting in 2021, this trend reversed and for the first time since 2017, the proportion of large deals over $1 billion decreased, shifting back to 5% of overall M&A transactions, according to Accenture Strategy’s analysis of S&P Capital IQ data.
E-mail This Article | Printer-Friendly Page |
Related News
- Value of Semiconductor Industry M&A Deals Slows Dramatically in 2017
- Value of Semiconductor Industry M&A Deals Slows Dramatically in 1H17
- Chip M&A Deals Reach $22 Billion in First Eight Months of 2021
- Value of Semiconductor Industry M&A Agreements Sets Record in 2020
- Acquisition Rebound Lifts 2019 to Third-Largest M&A Year
Breaking News
- MIPS Releases P8700, Industry's First High-Performance AI-Enabled RISC-V Automotive CPU for ADAS and Autonomous Vehicles
- Panasonic Automotive Systems and Arm Partner to Standardize Software-Defined Vehicles
- Ceva, Inc. Announces Third Quarter 2024 Financial Results
- Logic Fruit Technologies Launches JESD204D Transmitter and Receiver IP - Advancing High-Bandwidth Data Solutions
- Sondrel announces that it is opening up its library of IP for licensing
Most Popular
- Tessolve to Acquire Germany's Dream Chip Technologies
- Jolt Capital buys and invests in Dolphin Design's carved-out mixed-signal IP activities
- Ceva, Inc. Announces Third Quarter 2024 Financial Results
- Siemens' Tessent In-System Test software enables advanced, deterministic testing throughout the silicon lifecycle
- Sondrel announces that it is opening up its library of IP for licensing