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Mergers and Acquisitions is an Unmistakable Trend of Semiconductor Industry

By Vincent Wang
Published: Sep 08,2015

TAIPEI, Taiwan– Mergers and acquisitions is an unmistakable trend of semiconductor industry. Not long ago, the Singapore-based Avago Technologies, which bought Silicon Valley’s LSI a year ago, announced on the end of this May that it acquired Broadcom. On the other hand, Intel bought Altera is another example of this wave. The coming era of Internet of Things (IoT) is the reason of all the mergers and acquisitions.

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In other words, a wave of mergers and acquisitions is reshaping Silicon Valley’s semiconductor industry as companies join forces to shoulder the soaring technology costs required to stay competitive. That is, the winner takes it all.

However, in the coming of IoT era, the semiconductor firms would discover that in a bid to develop a small product would cause them a lot of money and resources. In addition, how to be a part of platform and supply chain of big firms are ways to survive. Otherwise, there will be less chance for them.

As a mature industry, mergers and acquisitions is the fastest way to better their strenth.

Last but not least, the performance of mergers and acquisitions is far more better than anything else. For instance, SPIL, Foxconn to form strategic partnership to fend off ASE acquisition bid has become the hot topic of the industry.

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