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Semiconductor Industry - M&A Analysis and Future Trends

Semiconductor Industry - M&A Analysis and Future Trends

“Need for improving technology, product, and services portfolio is driving the M&A activities in the semiconductor industry”
The semiconductor industry is witnessing tremendous growth in M&A activity with deals worth more than USD 120 billion announced in 2015. The driving factors behind the increase in M&A activity include need to increase scale, increasing cost of chip manufacturing, intense industry competition, and the need for companies to improve their technology, product, and services portfolio.

“Communications sector a major focus for M&A deals”
The major end user segments of the semiconductor market are communications, data processing, industrial electronics, automotive electronics, and consumer electronics. The communications segment consists of smartphones, feature phones, wireline communication, and wireless communication. There has been a tremendous growth of smartphone shipments in the recent years. With the advent of connected or smart devices, there has been an increase in the complexity of electronics required to leverage the technology behind these devices. This has had a positive impact on the growth of the semiconductor industry driving semiconductor companies towards innovation. The market for connected devices is expected to grow rapidly and run in billions by 2020.

In the process of determining and verifying the market size for several segments of the semiconductor market, data was gathered through secondary research, extensive primary interviews were conducted with key people. Break-up of profile of primary participants is given below as:
By Company Type: Tier 1 – 45 %, Tier 2 – 33% and Tier 3 – 22%
By Designation: C level – 42%, Director level – 33%, Others – 25%
By Region: Americas – 39%, Europe – 25%, APAC – 29%, RoW – 7%

With the expected growth of Internet of Things (IoT), a huge opportunity exists for semiconductor companies to position themselves for the next phase of growth in the semiconductor industry. This might require acquiring new products, technologies, and IP to develop the capability of delivering comprehensive integrated solutions to their customers.

Following companies are profiled in the report and include key integrated device manufacturers (IDMs), fabless semiconductor companies, and semiconductor foundries:
1. Intel Corporation (U.S.)
2. Broadcom Corporation (U.S.)
3. Qualcomm Incorporated (U.S.)
4. Mediatek, Inc (Taiwan)
5. Avago Technologies Ltd (U.S.)
6. SK Hynix, Inc. (South Korea)
7. Micron Technology, Inc. (U.S.)
8. Samsung Electronics Co., Ltd (South Korea)
9. Taiwan Semiconductor Manufacturing Co., Ltd (Taiwan)
10. GLOBALFOUNDRIES Inc (U.S.)

The report will help the market leaders/new entrants in the semiconductor industry in the following ways:
1. This report categorizes M&A during 2014–2015 by deal value, acquirer type, end user, and geography with review of ten big ticket deals giving the buyers an insight into the latest M&A trends in the semiconductor industry.
2. The report also provides an overview of the semiconductor industry, analyzing key component segments and end user segments. Furthermore, stakeholders can get an understanding of the pulse of the M&A scenario with analysis of the drivers, restraints, challenges, and opportunities in the M&A landscape.
3. The report also reviews key M&A strategies adopted by top semiconductor companies and highlights key strategies to be followed in the current industry scenario along with a brief analysis of potential acquisition targets.


  • INTRODUCTION
    • OBJECTIVES OF THE STUDY
    • INDUSTRY DEFINITION
    • STUDY SCOPE
      • SEGMENTATION OF M&A DEALS
      • YEARS CONSIDERED FOR THE STUDY
    • CURRENCY & PRICING
    • LIMITATIONS
    • STAKEHOLDERS
  • RESEARCH METHODOLOGY
    • RESEARCH DATA
      • SECONDARY DATA
      • PRIMARY DATA
      • BOTTOM-UP APPROACH
      • TOP-DOWN APPROACH
    • DATA ANALYSIS & TRIANGULATION
    • RESEARCH ASSUMPTIONS
  • EXECUTIVE SUMMARY
  • PREMIUM INSIGHTS
    • SIGNIFICANT GROWTH IN SEMICONDUCTOR M&A ACTIVITIES IN 2015
    • M&A IN SEMICONDUCTOR INDUSTRY - DEAL VALUES
    • M&A IN SEMICONDUCTOR INDUSTRY - DEAL VOLUMES
    • BIG TICKET DEALS FROM 2011-2015
    • STRATEGY ROADMAP
    • ANALYSIS OF BILLION DOLLAR M&A DEALS 2014-2015
  • MARKET OVERVIEW
    • INTRODUCTION
    • EVOLUTION
    • M&A DEALS CLASSIFICATION
      • M&A DEALS, BY ACQUIRER TYPE
        • Table M&A DEALS CLASSIFICATION: BY ACQUIRER TYPE
      • M&A DEALS, BY DEAL VALUE
      • M&A DEALS, BY END USER
      • M&A DEALS, BY GEOGRAPHY
    • MARKET DYNAMICS
      • DRIVERS
        • Table INCREASING COST OF CHIP MANUFACTURING ACT AS A MAJOR DRIVER FOR M&A DEALS
      • RESTRAINTS
        • Table LENGTHY REGULATORY APPROVAL CYCLE RESTRAINING THE NUMBER OF M&A DEALS
      • OPPORTUNITIES
        • Table INTERNET OF THINGS IS AN EXCITING GROWTH OPPORTUNITY
      • CHALLENGES
        • Table DECREASING ASP OF SEMICONDUCTOR CHIPS IS A MAJOR CHALLENGE FOR GROWTH IN THE SEMICONDUCTOR MARKET
      • KEY SUCCESS FACTOR
  • INDUSTRY TRENDS
    • INTRODUCTION
    • VALUE CHAIN ANALYSIS
    • KEY INFLUENCERS
    • PORTER'S FIVE FORCES ANALYSIS
      • INTENSITY OF RIVALRY
      • THREAT OF SUBSTITUTES
      • BARGAINING POWER OF BUYERS
      • BARGAINING POWER OF SUPPLIERS
      • THREAT OF NEW ENTRANTS
    • KEY TRENDS
      • INCREASING CHIP COMPLEXITY
      • SHIFT TOWARDS SMART DEVICES AND CONNECTIVITY
  • REVIEW OF KEY INDUSTRY SEGMENTS
    • INTRODUCTION
    • SEMICONDUCTOR COMPONENT MARKET REVIEW
    • SEMICONDUCTOR MARKET-GEOGRAPHIC REVIEW
    • SEMICONDUCTOR MARKET-END USER SEGMENT REVIEW
      • DATA PROCESSING
      • COMMUNICATIONS
      • CONSUMER ELECTRONICS
      • AUTOMOTIVE ELECTRONICS
      • INDUSTRIAL ELECTRONICS
  • MERGERS & ACQUISITIONS
    • INTRODUCTION
    • M&A, BY DEAL VALUE
    • M&A, BY ACQUIRER TYPE
      • IDM
      • FABLESS
      • FOUNDRY
    • M&A, BY REGION
    • M&A, BY END USER
    • REVIEW OF KEY MERGERS AND ACQUISITIONS (2011-2015)
      • AVAGO TECHNOLOGIES LTD ACQUIRES BROADCOM CORPORATION
      • AVAGO TECHNOLOGIES LTD ACQUIRES LSI CORPORATION
      • QUALCOMM INC. ACQUIRES CSR PLC
      • INTEL CORPORATION ACQUIRES ALTERA CORPORATION
      • NXP SEMICONDUCTORS NV ACQUIRES FREESCALE SEMICONDUCTOR LTD
      • DIALOG SEMICONDUCTOR PLC ACQUIRES ATMEL CORPORATION
      • WESTERN DIGITAL CORPORATION ACQUIRES SANDISK CORPORATION
      • ON SEMICONDUCTOR CORP. ACQUIRES FAIRCHILD SEMICONDUCTOR INTERNATIONAL INC.
      • LATTICE SEMICONDUCTOR CORPORATION ACQUIRES SILICON IMAGE, INC.
      • CYPRESS SEMICONDUCTOR CORPORATION ACQUIRES SPANSION INC.
  • FUTURE INDUSTRY ROADMAP
    • INTRODUCTION
    • M&A TRENDS IN THE SEMICONDUCTOR INDUSTRY
    • KEY M&A STRATEGIES
      • POST-MERGER INTEGRATION
      • IDENTIFICATION OF ACQUISITION TARGETS
    • POTENTIAL ACQUISITION TARGETS
      • XILINX, INC.
      • MAXIM INTEGRATED PRODUCTS, INC.
      • MICRON TECHNOLOGY, INC.
      • RENESAS ELECTRONICS CORPORATION
      • CAVIUM, INC.
      • LATTICE SEMICONDUCTOR CORPORATION
      • ADVANCED MICRO DEVICES, INC. (AMD)
      • SKYWORKS SOLUTIONS, INC.
      • MARVELL TECHNOLOGY GROUP LTD.
      • NVIDIA CORPORATION
  • COMPETITIVE LANDSCAPE
    • OVERVIEW
    • MARKET RANKINGS, SEMICONDUCTOR INDUSTRY
      • Table SEMICONDUCTOR INDUSTRY : KEY PLAYER RANKING ANALYSIS, 2014
      • Table SEMICONDUCTOR INDUSTRY: MARKET RANKINGS, BY KEY PLAYER, 2014
    • COMPETITIVE SITUATION AND TRENDS
      • NEW PRODUCT DEVELOPMENT/NEW PRODUCT LAUNCH
        • Table NEW PRODUCT DEVELOPMENTS/NEW PRODUCT LAUNCHES, 2014-2015
      • PARTNERSHIPS, AGREEMENTS, ALLIANCES, AND COLLABORATIONS
        • Table PARTNERSHIPS, AGREEMENTS, ALLIANCES, AND COLLABORATIONS 2014-2015
      • ACQUISITIONS AND EXPANSIONS
        • Table ACQUISITIONS, 2014-2015
      • OTHER DEVELOPMENTS
        • Table OTHER DEVELOPMENTS, 2014-2015
  • COMPANY PROFILES
    • INTEL CORPORATION
      • BUSINESS OVERVIEW
      • PRODUCTS & SERVICES
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (2011-PRESENT)
      • MNM VIEW
    • BROADCOM CORPORATION
      • BUSINESS OVERVIEW
      • PRODUCTS OFFERED
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (2010-PRESENT)
      • MNM VIEW
    • QUALCOMM INCORPORATED
      • BUSINESS OVERVIEW
      • PRODUCTS & SERVICES
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (2011-PRESENT)
      • MNM VIEW
    • MEDIATEK, INC.
      • BUSINESS OVERVIEW
      • PRODUCTS OFFERED
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (2005-PRESENT)
      • MNM VIEW
    • AVAGO TECHNOLOGIES LIMITED
      • BUSINESS OVERVIEW
      • PRODUCTS OFFERED
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (2007-PRESENT)
      • MNM VIEW
    • SK HYNIX, INC.
      • BUSINESS OVERVIEW
      • PRODUCTS OFFERED
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (2012-PRESENT)
      • MNM VIEW
    • MICRON TECHNOLOGY, INC.
      • BUSINESS OVERVIEW
      • PRODUCTS OFFERED
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (1998-PRESENT)
      • MNM VIEW
    • SAMSUNG ELECTRONICS CO., LTD.
      • BUSINESS OVERVIEW
      • PRODUCTS OFFERED
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (2011-PRESENT)
      • MNM VIEW
    • TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD.
      • BUSINESS OVERVIEW
      • SERVICES OFFERED
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (2000-PRESENT)
      • MNM VIEW
    • GLOBALFOUNDRIES INC
      • BUSINESS OVERVIEW
      • PRODUCTS & SERVICES
      • RECENT DEVELOPMENTS
      • ACQUISITIONS (2009-PRESENT)
      • MNM VIEW
  • APPENDIX
    • INSIGHTS OF INDUSTRY EXPERTS
    • DISCUSSION GUIDE
    • INTRODUCING RT: REAL-TIME MARKET INTELLIGENCE
    • AVAILABLE CUSTOMIZATIONS
    • RELATED REPORTS

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