A $35B deal continues 2020's boom in semiconductor M&A
October 28, 2020
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Silicon wafers are a hot target on the M&A market in 2020. (MirageC/Getty Images)
Chipmaking giant AMD has agreed to acquire rival Xilinx in an all-stock deal valued at $35 billion, the latest massive transaction in a year that has reshaped the landscape of the semiconductor industry.
Companies have either agreed to or completed $79 billion worth of M&A deals in the global semiconductor space so far this year, according to PitchBook data. Only once in the past 10 years has annual completed M&A deal value in the industry reached more than $60 billion, and in eight of the past 10 years it has been below $30 billion. It is unlikely all the recent deals will be completed before the year is out, making it an imperfect comparison, but 2020's run remains remarkable.
In July, Analog Devices lined up a deal to purchase fellow chipmaker Maxim Integrated Products for more than $20 billion. In September, Nvidia agreed to pay $40 billion to buy British chip designer Arm from SoftBank. And just last week, Intel agreed to sell its NAND memory unit to SK Hynix for $9 billion.
In many cases, the dealmaking has been aided by chipmaking stocks that have soared amid an increase in demand during the pandemic. AMD's shares are up some 68% since the start of 2020, while Xilinx stock is up more than 25%.
Companies have either agreed to or completed $79 billion worth of M&A deals in the global semiconductor space so far this year, according to PitchBook data. Only once in the past 10 years has annual completed M&A deal value in the industry reached more than $60 billion, and in eight of the past 10 years it has been below $30 billion. It is unlikely all the recent deals will be completed before the year is out, making it an imperfect comparison, but 2020's run remains remarkable.
In July, Analog Devices lined up a deal to purchase fellow chipmaker Maxim Integrated Products for more than $20 billion. In September, Nvidia agreed to pay $40 billion to buy British chip designer Arm from SoftBank. And just last week, Intel agreed to sell its NAND memory unit to SK Hynix for $9 billion.
In many cases, the dealmaking has been aided by chipmaking stocks that have soared amid an increase in demand during the pandemic. AMD's shares are up some 68% since the start of 2020, while Xilinx stock is up more than 25%.
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