After the failure of the acquisition between Qualcomm and NXP, will it affect Taiwan’s semiconductor industry? In this regard, Taiwan’s “Business Times” believes that for the semiconductor industry in Taiwan, Qualcomm and NXP’s products The overlap of the lines is low, and the passage of the merger or not will not cause too much impact and impact. Even for IC design companies such as MediaTek, Xintang, and Holtek, there will be no negative impact.
The report pointed out that if the merger between Qualcomm and NXP fails, the outsourcing production chain of wafer foundry and packaging and testing in the two companies will still maintain the status quo. However, in the long-term development, even if the merger fails, it can cooperate. Jointly launching integrated solutions to attack emerging markets such as automotive electronics and the Internet of Things. Taiwan has a large wafer foundry and packaging and testing capacity. In the future, new chip OEM orders are expected to be released in large quantities, and it is still possible to use 'Lido'. Interpretation.
In addition, if Qualcomm fails to cooperate with NXP after the failure of the merger, the IC design industry in Taiwan will have competitive pressure in the short term, but in the long run, it will enable Taiwan IC design manufacturers to strengthen cooperation, from the perspective of industrial development. It is not a bad thing to look at.
Qualcomm has been in the smartphone and communication chip market for many years. With the growth of the smartphone market slowing down, Qualcomm has to find a new market. In the past two years, the market is rapidly taking off, one is the Advanced Driver Assistance System (ADAS) and Self-driving is the main vehicle electronics; second is the high-performance computing (HPC) with artificial intelligence as the main body; the third is the Internet of Things connecting smart cities and smart factories. Qualcomm decided to acquire NXP at a high price and grab the car. Electronics and IoT market.
This century's major acquisition was originally announced in October 2016. It has experienced a 19-month tug-of-war. The whole process can be said to be a twist and a twist. Previously, due to the intervention of Broadcom, Qualcomm had already negotiated 38 billion with NXP. The dollar purchase price has increased to $44 billion. In addition, the transaction needs to be approved by the competition authorities, and China is one of the last nine markets that have not yet approved the deal. The unexpected Sino-US trade war is again This delayed the deal for several months.
On July 26, Qualcomm announced in its third-quarter earnings report that it will be on the acquisition of NXP's trading deadline - 23:59 EST on July 25, 2018 (Beijing time, July 26, 2018, 11 At 59, after the end, the acquisition of NXP was terminated. At the same time, Qualcomm said that if China's State Administration of Markets fails to approve, NXP will be entitled to a $2 billion break-up fee. Qualcomm will pay in cash and cash equivalents. This breakup fee.
Scott Kennedy, a Chinese scholar at the Center for Strategic and International Studies, said that the approval of the Qualcomm and NXP Semiconductors transactions may now make China feel weak. When the overall trade relationship is facing a serious escalation risk, it is difficult to meet this single case. The US requires. Chinese regulators may propose some form of conditional approval, forcing Qualcomm and NXP to decide whether they want to further postpone the final result.
Well-known insiders revealed that Qualcomm directors have been psychologically prepared for the transaction case. The directors still prefer to abandon the acquisition of NXP if they have not been released. The merger has been delayed, and Qualcomm investors have become bored and hope to As soon as possible, many people even think that even if the transaction is blown, it can be regarded as a bullish, because the ability of Qualcomm to integrate NXP has been questioned by the market.