In a rapidly shifting IoT and automotive industry, Qualcomm has purchased NXP Semiconductors for about $38 billion, in the largest semiconductor industry deal in history.
Reuters reported this morning that the deal is worth $37.88 billion total, or $47 billion including debt. San Diego company Qualcomm will pay for Netherlands-based NXP with cash on hand and new debt.
NXP itself grew recently with the acquisition of Freescale Semiconductor in December. With that, NXP gained the title of the world’s largest automotive electronics company. Meanwhile, Qualcomm has become wary of the mobile industry to which it sells wireless patents, because of increased competition from companies in China and Taiwan and reduced smartphone sales. The acquisition will give Qualcomm more access to the up-and-coming automotive electronics industry, including both NXP and Freescale’s resources.
With the two companies combined, revenue is expected to be over $30 billion. The transaction is expected to be complete by the end of 2017. Shares in both companies were up about 2 percent on Thursday.
At Qualcomm’s 4G/5G Summit last week, product managers for the company said that Qualcomm is also working on products for 3D video and biometrics.
Intel also recently made its own move into automotive electronics with a processor line designed for on-board electronics.
Filed Under: M2M (machine to machine)