I'm reading the English translation of the SAMR approval document.....
samr.gov.cn
Silicon Motion's market shares in the global and Chinese third-party NAND flash memory master chip markets are 50% -55 % and 50% -55 % respectively , both ranking first .
Silicon Motion Technology has strong financial resources and advanced technical level, with an average annual shipment of more than 500 million pieces, and the number of patents it holds is ahead of other suppliers. market dominance.
(2) Downstream customers are highly dependent on the centralized party, making it difficult to switch suppliers.
NAND flash memory and solid-state hard disk have high requirements on security and stability, and the degree of adaptation between the main control chip of NAND flash memory and the storage device determines the performance of the product. At the same time, due to product space constraints, NAND flash memory main control chips usually need to be specially designed and customized in order to achieve higher storage capacity in a smaller circuit board. According to market research, if a downstream customer wants to develop a new solid-state hard drive product, select a third-party NAND flash memory main control chip and its supporting accessories, select an assembly plant to complete assembly, conduct customer verification, and mass production, the entire process will take 1 to 2 years However, the golden period of SSD products is only about 2 to 3 years, and the profits of enterprises after the golden period are limited. Downstream customers generally believe that the technological development level of other competitors lags behind Silicon Motion Technology, and Silicon Motion Technology’s NAND flash memory master chip is superior to other competitors in terms of technology, performance, power consumption, cost, and supply scale. Be able to compete with it in terms of technology or industrial chain control. Therefore, downstream customers are highly dependent on Huirong Technology, and it is difficult to switch suppliers.
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In the global third-party NAND flash memory main control chip market in 2021, CR2 ( the market share of the top two companies in the industry) will be 88.9% , and CR5 (the market share of the top five companies in the industry) will be 92.61 % ; In the control chip market, CR2 is 85.8 % , and CR5 is 90.9% ; the market concentration is relatively high, and the number of competitors is small. According to market research, downstream customers in China generally report that Silicon Motion is currently the most important third-party supplier of NAND flash memory main control chips , and has a good cooperative relationship with Silicon Motion.
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This part says MXL submitted some documents to SAMR the day before the approval was granted. It means (I think) MXL was pushing the deal forward the day before they mysteriously cancelled the deal....
In addition to handling the supervision and implementation of restrictive conditions in accordance with this announcement, the commitment plan for additional restrictive conditions submitted by the declaring party to the State Administration for Market Regulation on July 25 , 2023 is legally binding on both parties to the transaction and the entity after concentration. |
