Infineon to acquire Cypress Semiconductor in blockbuster $10 billion chip deal

Infineon to acquire Cypress Semiconductor in blockbuster $10 billion chip deal
IoT News is a practical resource providing news, analysis and opinion on the burgeoning Internet of Things ecosystem, from standardisation, to business use cases, and development opportunities. We take the best research and put our own spin on it, report from the frontline of the industry, as well as feature contributions from companies at the heart of this revolution.

Infineon Technologies has signed a definitive agreement with Cypress Semiconductor Corporation, under which Cypress will be acquired by Infineon for $23.85 per share in cash, corresponding to an enterprise value of $9.98 billion (£7.9bn).

The acquisition of Cypress will allow Infineon to subsequently increase its focus on structural growth drivers and offer a wider range of applications. Infineon's leading power semiconductors, sensors and security solutions are highly compatible with Cypress’s differentiated portfolio of microcontrollers, software and connectivity components. 

The combination of these technologies will allow all-inclusive advanced solutions for high-growth applications like electric drives, battery-powered devices and power supplies, the companies claimed. The blend of Infineon's security expertise and Cypress's connectivity know-how will speed up entry into new IoT applications in the industrial and consumer segments.

Furthermore, the expanded portfolio of microcontrollers and NOR flash memories in automotive semiconductors will hold great potential with the growing importance for advanced driver assistance systems and new electronic architectures in vehicles.

A BCC Research report published in January predicts an annual growth rate of over 25% in the North American IoT security market. The market was valued at $1.7 billion in 2018 and is expected to reach $5.2 billion by 2023 at a compound annual growth rate (CAGR) of 25.1%, according to the report ‘Internet of Things (IoT) Security: North American Markets to 2023’. According to the report, this growth is being driven by demand for cloud-based enterprise applications, growth in digitalisation, IoT security spending, and growing demand for security solutions for connected cars and connected healthcare services. in hearing industry leaders discuss subjects like this? Attend the IoT Tech Expo World Series events with upcoming shows in Silicon Valley, London, and Amsterdam.

View Comments
Leave a comment

Leave a Reply

Your email address will not be published.