Semiconductors Future Hinges on a Single Pillar

A unique phenomenon has started manifesting itself under the slew of mergers and acquisitions this year in the semiconductor landscape. This phenomenon is bound to intensify in the near future and would positions itself as a key factor for the future of the semiconductor industry. The winners and losers in the game would be determined on how successfully they are able to execute on this aspect. In fact, this is one of the key aspects responsible for pushing companies towards mergers too.

Mergers and acquisitions are part of usual cycle of consolidation after expansion. Considering the macroeconomic conditions, I have been foreseeing the increase of M&A activities since 2011, of course it is happening since much earlier than that but it intensified in 2015. With the recent announcements of mergers, which are expected to complete in 2016, the total deal size of semiconductor mergers in 2015 has gone much beyond $100 B. Earlier peaks were $70.3 B in 2000 and $75.2 B in 2006.

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