Broadcom’s $130bn Qualcomm bid highlights a ruthless chip industry

AT FIRST glance the chip business and the Serengeti appear to have little in common. But both are arenas where large predators hungrily stalk big game. On November 6th Broadcom announced its intention to buy its rival, Qualcomm, for around $130bn, including debt. If successful, it would be the largest deal in the history of the technology business (see table).

And like the African plains, the semiconductor industry supports a complex food chain with different species of chipmakers hunting each other. Qualcomm is already trying to swallow another chip firm, NXP, from the Netherlands, in a deal worth $47bn. In 2015 NXP, which makes chips for automobiles and other markets, itself completed a merger with Freescale, another large chip company. Meanwhile, Broadcom has become the world’s fifth-largest semiconductor firm by snapping up rivals. It has pulled off five big acquisitions since 2013 and is seeking approval for its $5.9bn bid for Brocade, yet another semiconductor company. If it...

via Business Feeds

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