October 30 morning news, Bloomberg quoted sources as saying the world’s largest chip maker Texas Instruments Analog is the acquisition of rival Maxim Integrated Products negotiations.
According to sources, Analog Devices is also interested in acquiring Maxim, and Maxim’s management only after seeing a high enough premium to be willing to sell the company. The negotiations currently under way, the two sides may not reach a final deal. Affected by this news, Maxim shares on Thursday rose 9.3 percent, to $ 42.01, while the market capitalization of approximately $ 11.9 billion.
This year, the semiconductor industry mergers and acquisitions being a new record. Since the customer base shrinking, the cost of growth, many chip companies try to increase their size through mergers and acquisitions. In the analog chip market, TI is working with Maxim and Analog Device compete. When in 2011, Texas Instruments acquisition of National Semiconductor, and the company did not participate in this year’s buying spree.
Texas Instruments and Maxim spokesman declined to comment.
A source said, Maxim may not like some small chip companies such as Atmel and PMC-Sierra is willing to sell, because the company is not eager to expand the scale.
In the earnings conference call on October 22, Maxim CFO Bruce Quito (Bruce Kiddoo) indicates, Maxim has enough size and profitability, which alone survive. In addition, the company also has the resources to start the acquisition.
Terms of Texas Instruments, the company’s takeover target will be analog chip companies. The company is focused on analog chip business to get cash flow. TI’s current market value of about $ 23.3 billion.