There has been a lot going on in the world of semiconductors in 2015.
Included are several mergers/acquisitions amongst large chipmakers. For example, last month saw the acquisition of Atmel Corp by UK based Dialog Semiconductors in a transaction valued at $4.6 billion. A key driver in this acquisition has been the development of the “Internet of Things” (IoT), as technology connects more and more things. Just recently Skyworks Solutions announced its acquisition of PMC-Sierra for $2 billion. Skyworks, which is currently a major supplier of chips to Apple, is also seeking to expand its capabilities in stat storage and transportation.
In total, the acquisition totals for 2015 have reached $98.5 billion as companies such as Intel, Avago and NXP have all made splashes. This is compared with a somewhat meager $28.3 billion in 2014. So what does that mean for Semi production?
Key and perhaps most obvious are companies preparing for the explosion of demand for sensor chips, connectivity chips and processor chips, including MCUs/MPUs and FPGAs. The challenge to make semiconductors more inexpensively is also a driving force. Interestingly, companies are trimming down their production output, in part because of acquisition activity but also because of worries about near term economic conditions. Companies like Qualcomm and NXP have announced major layoffs and are hesitant to expand their current production capability. Conversely, others are investing. Murata announced recently that it will be investing $100 million for a factory in Japan.
The semiconductor industry is alive and well and the impending explosion of IoT will, in part, drive companies to seek out the most reputable and reliable suppliers of chips and chip components. Neu Dynamics Corporation continues in this role, and is well positioned to provide the industry with molds, dies, and component manufacturing systems to meet your every requirement. Contact us today for more information and to get started on your next project.