Want to know what factors motivated a big company to swallow another big company? To watch the climax of the eight-point semiconductor industry's reelection - Broadcom intends to acquire the Qualcomm event - right!
If you are Broadcom CEO Hock Tan, you may be driven by adrenaline-ravaged financial engineering and the thrill of conquest; but for Paul Jacobs (edited by: Qualcomm co-founder and former executive The son of chief Irwin M. Jacobs, former chairman and CEO of Qualcomm, said that the motive for acquiring Qualcomm must be related to individual factors.
The Financial Times reported last Friday that Paul Jacobs is seeking funds to acquire Qualcomm’s majority stake in order to privatize the company he founded; it’s unclear whether the Jacobs family is really capable. Buying Qualcomm with a market value of $93 billion, Paul Jacobs owns less than 1% of the company's shares. Irwin M. Jacobs co-founded Qualcomm in 1985, and Paul Jacobs served as CEO of Qualcomm from 2005 to 2014.
Regardless of personal opinions, why does Broadcom intend to acquire Qualcomm's drama and attract the attention of so many electronics industry people? And why did Jacobs want to buy Qualcomm to make it a private company? Jacobs' plan shows that he thinks that Qualcomm should A treasure that is protected at all costs - against the embarrassment of either a foreign company or a competitor.
In the United States, politicians use China as a reason to thwart the deal; but on the other hand, the technology industry has a completely different reason than China, and is concerned about possible mergers and acquisitions. For example, Intel (Intel) is concerned about considering buying Broadcom.
Actually, all this is for RF... silly children! ─ ─ I heard that the reasons why Qualcomm should not be merged are the most convincing: if Broadcom combined with Qualcomm, it will produce a 5G cellular type. Communication superpowers in the field of RF technology.
Claire Troadec, director of RF electronics at Yole Developpement, a market research organization, told us that the 5G market is expected to develop different RF front-end solutions for each 5G application (including the sub 6GHz band, millimeter wave, and the Internet of Things). It is possible to lock in 5G 6GHz RF front-end modules because that would be a gradual innovation based on the current 4G RF front-end, and the company is already a heavyweight manufacturer in the 3/4G RF front-end supply chain.
As for 5G millimeter wave (mmWave), every manufacturer will become a newcomer, because this type of solution may end the system-in-package (SiP) module used in the current 2/3/4G RF front-end; Troadec said: 'You Each functional block can be designed using advanced CMO or SOI technology - including power amplifiers, low noise amplifiers, filters, switches and passive components.
Troadec believes that the transition from SiP to SoC will provide opportunities for advanced CMOS designers and manufacturers; now the ecosystem of handset architecture ecosystems, including Samsung, Huawei, MediaTek, Qualcomm and Intel, All want to enter the RF market.
Now Qualcomm is gaining some favor in the 5G millimeter wave field, and Broadcom is locking in the sub 6GHz band; Troadec said that if the merger of these two companies is not blocked by the US president, 'will give birth to a monopolistic behemoth company, which is why we Seeing that Intel is so nervous, even trying to get drowned.
Of course, such a 'monster' will not be confined to the RF field; Broadcom/Qualcomm's combined companies may dominate everything from Broadcom’s excel- lent radio chips to Qualcomm’s excelling application processors, modem chips and transceivers.
ABI Research Qualcomm/Broadcom
Stuart Carlaw, head of research at market research firm ABI Research, said in an interview with EE Times that if Broadcom and Qualcomm are combined, the two companies will occupy 59% of the market in the Wi-Fi market and the combined market share in the Bluetooth field will be 46%. The market share of chips is 67%, and the combined market share of cellular communication chips is 41%. In other words, although China is a more political factor, market monopoly is the problem that everyone should worry about.
Compilation: Judith Cheng