In the second half of 2020, the semiconductor industry will be undergoing a series of large-scale M & As, mainly in the United States. Analog Devices (ADI) buys Maxim Integrated for $ 21 billion, NVIDIA buys Arm for $ 40 billion, AMD buys Xilinx for $ 35 billion, and Intel’s NAND business sells to SK Hynix for $ 9 billion. In just a few months, a series of large-scale M & A announcements have brought the total acquisition price to over $ 100 billion, and if all of these are approved by national regulators, the total acquisition price will reach a record high. ..

Through these M & As, synergistic effects will be exerted, and the design capabilities of the US will be further strengthened, and more sophisticated and differentiated advanced semiconductor products will be designed by US semiconductor companies, and the world. It is expected to lead the semiconductor business and bring about innovation. Intel’s NAND business sale is different from other M & A, but it will strengthen the design ability in the sense that it will invest human resources and funds in CPU development of the main business with a selection and concentration strategy.

Marvell Acquires Inphi to Strengthen Data Center and 5G Infrastructure Business

Meanwhile, Marvell Technology announced at the end of October that it would acquire its rival Inphi for $ 10 billion. By combining Inphi’s fiber optic and DSP technologies with Marvell’s wired, storage, network and processing technologies, Marvell plans to strengthen its cloud / data center and 5G infrastructure businesses.

Marvell estimates that the new company will have a market value of approximately $ 40 billion. The new company can reach $ 23 billion in market, which is expected to grow by 12% annually. If the deal closes, the company expects to generate about $ 125 million in 18 months.

The acquisition is expected to close in the second half of 2021 if the shareholders’ meeting of both companies and the approval of the relevant authorities are successfully obtained, at which time Inphi’s current CEO Ford Tamer said Marvell. Will join the board of directors of. With this acquisition, Marvell plans to move its headquarters from Bermuda to the United States.

“The acquisition of Inphi will strengthen Marvell’s leadership in the cloud market and increase our position in our 5G market over the next decade. Inphi’s technology is at the heart of our cloud data center network,” said Matt Murphy, president and CEO of Marvell. Inphi continues to expand its leadership with innovative new products such as 400G data center interconnect optical modules that leverage its unique silicon photonics and DSP technology. Inphi’s growing presence in cloud customers We believe it will lead to further adoption opportunities for Marvell’s DPU and ASIC products. “

Intel buys AI ventures one after another while letting go of NAND

Intel is selling its NAND business to SK Hynix for $ 9 billion, while acquiring a series of AI-related startups to build an operational foundation for AI.

For example, on October 29, it announced that it had acquired SigOpt, a startup that develops optimization platforms for performing machine learning modeling and simulation. Intel’s entire AI hardware product helps SigOpt’s AI software technology improve productivity and performance across hardware and software parameters, deep learning, machine learning, data analysis use cases and workloads. It plans to use SigOpt’s software technology to accelerate, expand and expand Intel’s AI software solution offerings for developers. Intel will not disclose the purchase price or other terms of the acquisition.

In addition, Intel appears to have acquired Cnvrg.io, an Israeli startup that develops and operates a platform for data scientists to build and run machine learning models, said Silicon Valley technology media. Some media outlets, including TechCrunch, reported on November 3rd. Cnvrg.io says that it will continue to serve customers as a company under Intel even after the acquisition of Intel. Intel spokesman acknowledged the acquisition, but did not disclose any details, including the purchase price, and did not issue a press release as of November 12.

At the end of 2019, Intel acquired Israeli Habana, an AI chip maker, for $ 2 billion, and in 2017, Israel Mobileye, which develops image processing systems for autonomous driving support, for $ 15 billion.

Intel bets on fast-growing AI field and strengthens development system by M & A

Intel predicts that the total addressable market for AI silicon will exceed $ 25 billion by 2024, with data center AI silicon forecasting more than $ 10 billion in the same time frame. doing.

Intel described its AI strategy during its acquisition of SigOpt as follows:

“We believe in the power of AI to improve business outcomes, which requires a broad combination of hardware and software technologies and full ecosystem support. Intel’s AI software strategy is Intel’s hardware. It aims to provide tools that optimize performance, accelerate AI workflow processes, and build a consistent experience for developers. “

Total semiconductor company M & A in 2020 will exceed $ 117.1 billion, the highest ever

As of the end of October 2020, the total amount of M & A by US semiconductor companies at the time of signing the contract was $ 117.1 billion (+ acquisition amount already announced but acquisition amount) including Marvell’s acquisition of Inphi and two acquisitions of Intel. Unannounced + may be announced by the end of December), surpassing the record high of $ 107.7 billion in 2015 due to the M & A rush by about $ 10 billion and setting a new record high High sex and others. The global semiconductor industry is becoming more and more oligopolistic due to the aggressive M & A of major US semiconductor companies, and it is expected that this trend will continue in the future.

References

・ Marvell press release
・ Press release regarding Intel’s acquisition of SigOpt
・ TechCrunch reports on Intel’s acquisition of Chvrg.io