The M & A boom sweeping the semiconductor industry in 2015 and 2016 slowed significantly in 2017, but the total volume of M & A deals remains high, more than double the 2013 level.
Approximately 24 M & A deals in the semiconductor industry hit a total of 27.7 billion U.S. dollars in 2017, albeit from a marked decline from 2015 (107.3 billion U.S. dollars) and 2016 (99.8 billion U.S. dollars) .In 2010-2015, the average M & A volume in the chip industry was 12.6 billion Dollars.
Two of the largest M & A deals accounted for 87% of total deals in 2017. As more companies begin to buy chips to offset the slow growth in end applications and expand into new markets, the M & A spree in 2015 is largely Is due to the Internet of Things, wearable and intelligent embedded electronic products outbreak.
As the number of acquisition targets shrinks and the combined business grows, industry consolidation through M & A transactions slows down in 2017. The regulatory review of mergers and acquisitions by government agencies in Europe, the United States and China has also slowed the pace of large semiconductor acquisitions. With only two deals worth more than $ 1 billion, 10 semiconductor acquisitions in 2015 exceeding $ 1 billion and seven more than $ 1 billion in mergers and acquisitions in 2016.
Two large-scale mergers and acquisitions to promote the semiconductor industry in 2017 the average transaction volume reached 1.3 billion US dollars, without these two transactions, the average transaction volume plummeted 185 million U.S. dollars.