M&A News: Infineon & QCOM both announce IoT funds Consolidation & EU TAM foundry load links here
FYI. FWIW
My comment below
---
Infineon here: "Infineon ready to spend billions on acquisitions - CEO"
Quote:
The German chip maker is constantly "on the lookout" for suitable companies, Hanebeck told Frankfurter Allgemeine Zeitung (FAZ). "I see it in the range of up to a few billion (euros)."
The chipmaker has said that it sees growth in particular in electromobility, autonomous driving, renewable energy, data centres, and the so-called internet of things - in which items like appliances, factory equipment and health monitors are connected to the internet or other communications networks.The German chip maker is constantly "on the lookout" for suitable companies, Hanebeck told Frankfurter Allgemeine Zeitung (FAZ). "I see it in the range of up to a few billion (euros)."
The chipmaker has said that it sees growth in particular in electromobility, autonomous driving, renewable energy, data centres, and the so-called internet of things - in which items like appliances, factory equipment and health monitors are connected to the internet or other communications networks..."
msn.com
Ed this link goes to MSN aggregated repost of Reuters
----
QCOM WSJ repost on this site
"Qualcomm CFO Trims Operating Expenses as Industry Faces Down High Inventories"
In the article CFO refers to cash on hand and leads to this quote \V/
Quote: "WSJ: How do you think about spending in 2023?
Mr. Palkhiwala: One of the first things we are doing is we are reducing spending in the more mature areas of the business and redirecting those resources and those dollars to [automotive and Internet of Things], because that’s where a lot of our growth is driven by. In addition to that, we are making select head count reductions in certain functions. The third thing is that we are preparing contingency plans. So if we need to take additional action, we’ll be ready to do that...."
Message 34135928
My Comment
These are indications of both ongoing consolidation and the EU desire to fill its foundries with home-grown projects to recapture 20% TAM and pursue 30%. They are finally supporting their EUBlock industry with government initiative supporting.
Does this hint that EU fabless firms are the higher priority for M&A?
On the tech front, I have been writing now for a decade upon the maturation of SiP's like the very VERY advance FujitsuWireless joint venture with Sequans that came to market 2013 and then died as a result of M&A... those SiPs becoming "chiplet" designs using advanced packaging. Now we see all the major fabless efforts in CPUs becoming MCMs and of course the fruited motherboard has been a APU++ design from the start. Today another PRC company announced their new fabless investment and it hints at a MCM SiP at OPPO "Oppo is working on its own smartphone chipset"
m.gsmarena.com
Why add this note today? The merger news is hinting at the maturation of tech for MCMs becoming commoditized so even the second tier fabless efforts are now including it.
30 years ago I attended a boat and yacht show in Kirkland WA with Paul Allens yacht moored in view and there were no less than THREE mini-sub companies there selling their private submersibles. Folks, that meant all the little bits of specialized hardware and fab skills had passed certification down from the super-classified world of USNavy tech to the civilian world and were now "HomeDepot" retail products. Sort of. Did I guess correctly that USN was sailing mini-subs too even though it was still classified? Yes I did and news reports a few years later confirmed.
I reported to YOU back in 2014 that FujitsuWireless Products sold its super-duper DSP technology for a translation co-operation on a single chiplet of both WCDMA and LTE and how that would allow a super-simplification of a SoC. That same buyer also bought out solutions for translation co-operation on a single chiplet of both x86 and RISC. Well we have seen the buyer of that tech become the world's leader in MSM tech and their competitor following close behind selling capability and capacity both. AND we also see that leader offering their own tech to the market to compete for MCM TAM.
This is hinting at a new era of wireless chiplet solutions within a vast IoT product industry the same way as Bluetooth and WiFi have.
You know about this because you invested in LTE-ONLY long ago and foresaw this day. The sunset of 2&3g was a longer period than anyone expected and many bets went bust.
Nobody wanted to compete with giants and get squashed. Now these are getting commoditized. Do the little guys in Swiss, Franco, Korean labs who have struggled to gen revenue for LTE-only finally get into the game like Bluetooth and WiFi at super cheap prices? Do their Enterprises even have any value left?
Years ago I wrote "SQNS: Never Been Closer" Message 31168469
And another version including a list of references here:
"Additional disclosure: Long term share holder and Pro Se Complainant before SEC and EUTC regarding Market Bully behavior detrimental to SEQUANS in its defense - I hope.
The complaint filed and accepted as of 2014 and 2017 respectively and under deliberations since that time secretly as is their style.See full background here Message 32088296
Titled: "EUTC Update" and containing links to historical posts for easy background review."
seekingalpha.com
Just as then the question is: is this the end or the beginning?
If the end product designer is just buying a digital design for an LTE solution and not the actual silicon chip and then going to the foundry to print the LTE design into the final MCM SiP then is this a financial beginnign or the end for a little fabless EU company?
I don't know.
Good luck in the New Year |
