Qualcomm buys GaN supplier NXP
NewsOctober 31, 2016
SAN DIEGO. Qualcomm Inc., and NXP Semiconductors in Eindhoven, The Netherlands, announced a definitive agreement under which Qualcomm will acquire NXP for $110.00 per share in cash, or about $47 billion.
NXP produces mixed-signal semiconductor electronics, for defense RF applications as well as automotive, broad-based microcontrollers, secure identification, and network processing. Its RF Gallium Nitride (GaN) and laterally diffused metal oxide semiconductor (LDMOS) product lines, which supply military radar and communications applications, were originally part of Freescale, which NXP acquired in 2015.
“The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale,” says Steve Mollenkopf, CEO of Qualcomm Incorporated.
The combined company is expected to have annual revenues of more than $30 billion and serviceable addressable markets of $138 billion in 2020.
"With unique leadership positions in wireless technologies, security, and processing, the union is ideally positioned to address the emerging trends of ADAS [advanced driver assistance systems] and autonomous vehicles, the Internet of Things (IoT), and the 5G revolution," says Rick Clemmer, President & CEO, NXP Semiconductors. "The transaction is subject to regulatory approvals and other closing conditions, so we anticipate that the acquisition will likely close during the end of calendar 2017.
