In order to improve efficiency and seize the market, a number of chip companies have recently joined forces to expand the scale. Cypress, the world's leading electronics chip maker, announced on the 1st that it plans to merge with Spansion, the world's largest manufacturer of flash memory, with a stake of $4 billion. Boosted by the merger news, the stock price of Fesso rose sharply on the 1st. Since the beginning of this year, Fesso's share price has climbed 64.5%.
The new company’s annual revenue will exceed $2 billion
Cypress and Fesso said that after the merger transaction, an embedded chip supplier with annual revenue of more than 2 billion US dollars will be born. The combined new company is expected to become the world's fourth or fifth largest auto chip supplier.
Half of the revenue of the new company will come from the NOR flash and SRAM memory business, and other revenues will come from microcontrollers and analog devices. NOR flash memory is one of the two main non-volatile flash technologies on the market today. The NOR is characterized by on-chip execution, and the application can run directly in the flash memory without having to read the code into the system, thereby improving transmission efficiency. SRAM is the abbreviation of English StaTIc RAM, which is static random access memory. It is a memory with static access and can store internally stored data without refreshing the circuit.
Cypress President and Chief Executive Officer (CEO) Rogers will continue to serve as the CEO of the combined new company, and the company will still be named Cypress. Fesso CEO John Caseport will become a director of the new company, and eight directors of the new board will come from executives of the two companies.
Although Cypress is a smaller company in both companies, it continues to be profitable. Due to the decline in the NOR flash memory business, Fesso struggled for a long time in the predicament and was on the verge of bankruptcy.
Under the merger agreement, Fesso shareholders may exchange 2.457 shares of Cypress for each share of their shares. The existing shareholders of the two companies will hold approximately 50% of the shares of the combined new company.
In 2009, Cypress's single-chip microcomputer (MCU) sales ranked 12th in the world and 10th in Fesso, according to Tom Hankenberg, chief analyst of IBS's automotive embedded processor. Hankenberg expects: "After the merger of the two companies, based on the sales of the first three quarters of this year, the new company's annual sales can reach 1 billion US dollars, ranking will surpass the current ranking of the ninth Samsung Electronics, but will It lags behind Atmel with a gap of $200 million."
Chip industry's current mergers and acquisitions boom
Earlier, Anwar High-Tech and LSI merged to form a new company with a size of US$5 billion; China Taiwan MediaTek Co., Ltd. merged with MStar; Micron also created new memory through the acquisition of Elpida. Giant.
Cypress Chief Technology Officer (CTO) Oliveira said: "In this context, the merger between Cypress and Fesso is very simple. Both companies are spending time actively looking for objects in the M&A market. We After acquiring the world's leading non-volatile ferroelectric semiconductor supplier Ramtron, it has been looking for bigger acquisition targets in the past few years until it is known that Fesso is doing the same. The latest merger transaction reflects the two companies' The consensus on the integration of the wheel chip industry."
Despite this, Cypress and Fesso have different memory businesses with less product overlap. Cypress's main business and products target SRAM memory; and after acquiring SK hynix Semiconductor, Fesso is committed to expanding the NOR flash memory business.
"In the automotive electronic microcontroller market, Cypress mainly serves the back-end market, and the products of FS are mainly in the field of human-machine interface, such as the front display," said Hassan Al-Muri, executive vice president of FS. Control. In the white goods market, Cypress products are also concentrated in the motherboard control, we are in the panel control. The technology and application of the two companies are complementary."
Cypress Semiconductor was founded in 1982 and is headquartered in California, USA. The company produces high-performance silicon products for data transmission, telecommunications, PC and military systems, serving a wide range of industries and markets including consumer, mobile, computing, datacom, automotive, industrial and military.
In 2003, Fesso Semiconductor merged with AMD and Fujitsu's microcontroller and analog divisions to integrate their respective flash memory businesses, which was the second largest supplier of automotive microcontrollers in Japan at the time. The current products of FS are mainly used in communications, automotive, networking and consumer electronics.
Alps Potentiometer,Potentiometers Used In Cars,Potentiometer Used In Motorcycles,Potentiometer Extension Shaft
DA CHENG MINGHUA LIMITED , https://www.alpsswitch.com