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Qualcomm To Buy NXP Semiconductors in $47 Billion Deal (bloomberg.com) 40

Qualcomm, the largest maker of mobile-phone chips, will acquire NXP Semiconductors NV in a transaction valued at $47 billion, aiming to speed an expansion into new industries and reduce its dependence on the smartphone market. Bloomberg reports: San Diego-based Qualcomm agreed to pay $110 a share in cash for NXP, the biggest supplier of chips used in the automotive industry, or 11 percent more than Wednesday's close, the companies said in a statement Thursday. The deal will be funded with cash on hand as well as new debt. Chief Executive Officer Steve Mollenkopf is betting the deal, the largest in the chip industry's history, will accelerate his company's entry into the burgeoning market for electronics in cars. Eindhoven, Netherlands-based NXP is strong in that sector following its acquisition last year of Freescale Semiconductor Ltd. "It's no secret that we've been looking around," Mollenkopf said in an interview. "If you look at our growth strategy it's to grow into adjacent markets at the time that they are being disrupted by the technology of mobile."
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Qualcomm To Buy NXP Semiconductors in $47 Billion Deal

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  • The Qualcomm chips get absolutely crushed in any benchmark compared with the processors the iPhones are using. So Qualcomm and Android being tied at the hip isn't exactly doing Android any favors either.
    • That's derpy as hell, there is no connection at all between the things called "Android" and "Qualcomm."

      If you're going to comment on that basis, you'd have to say words establishing a connection first.

      The reason this is bad for android is actually that NXP makes a lot of ARM chips that are important to embedded devices, including ones that run... android! That's what makes your comment extra-derpy. Truly a sad day for android, but no, not because there is some "connection" between android and qualcomm but b

      • by T.E.D. ( 34228 )

        That's derpy as hell, there is no connection at all between the things called "Android" and "Qualcomm."

        OK, I'll bite on this. What new Android mobile phones can I buy that don't run on Qualcomm hardware?

  • I wonder if this will help them better compete with Nvidia when it comes to making cars smarter. We could certainly use more competition, but I hope Qualcomm can get over their internal staff issues before they get themselves more involved in another industry.
  • NXP = NFC (Score:5, Informative)

    by darkain ( 749283 ) on Thursday October 27, 2016 @11:27AM (#53162017) Homepage

    NXP is also synonymous with NFC technology. This is entirely missed in both the summary and TFA it appears.

    • by Chris Mattern ( 191822 ) on Thursday October 27, 2016 @11:42AM (#53162139)

      NXP is also synonymous with NFC technology

      So who specializes in AFC technology?

    • by Anonymous Coward

      Exactly. NXP is behind the infamous Mifare Classic NFC chips and the more recent and very popular DESFire EV1 chips.

      • Having spoke to someone working at NXP during that debacle it seemed that NXP did warn them that this chip was not fit for purpose and they had better, but more expensive, solutions. We all know what happened with that advice...
  • Am I the only one who can never imagine Qualcomm as anything but the developer of Eudora? It just seems to bizarre to me that this company is now developing computer chips and all this other advanced stuff. Quite a big leap from a proprietary email client. (Yes, I've read about them, and know technically hat their history actually is, but that doesn't change my impression!)

  • by unixisc ( 2429386 ) on Thursday October 27, 2016 @12:37PM (#53162511)

    So the number of semiconductor companies continues to shrink. I noticed some time back how Intel's Numonyx has been a part of Micron, AMD's Spansion has been a part of Cypress, and now I read that Freescale had been gobbled by NXP, which now is eaten by Qualcomm.

    All these companies might as well formally become design arms of real fabs, like TSMC, GSMC, Samsung, et al

    • by Anonymous Coward

      With that logic TSMC, GSMC, and Samsung should all bend the knee to the semiconductor equipment manufactures like ASML who make every piece of equipment on their production lines. ASML being another Dutch company....

    • It's not really shrinking, it is maturing. Over the last few decades the semiconductor market has moved from a relatively large number of smaller disruptive companies to a relatively small number of larger streamlined companies. As an example, consider how many CPU architectures there were in the '80s and '90s. You had x86, 680x0, MIPS, Alpha, SPARC, PA-RISC, just to name a few. Now there is x86 (the modern version of it) and ARM.

      You can also look at car companies in the first half of the 20th century. Linc

    • On Semiconductor also bought Fairchild. Analog devices also has approval from SEC to buy Linear Technologies. Texas Instruments bought National Semiconductor some time ago.

      Working in the industry it's been interesting to see what happens with all these acquisitions. It's NOT fun, however, when someone buys the company who happens to make a very unique part, then cans that whole product line, forcing you to redesign the product (which may or may not have a replacement part).
    • I see another trend. The small companies with very helpful engineering teams and fantastic support are being gobbled up by companies who specialise in hiding behind NDAs.

      I wonder if this is sustainable.

      • by gweihir ( 88907 )

        Same here. I think this is a very bad trend, but unfortunately one where it will take some time to become obvious how bad.

    • by Anonymous Coward

      Famous US electronics firm managed straight into the ground by MBA holders with golden parachutes.

      Motorola was a great US firm that created the 6800 series 8-bit MCUs that were in TONS of stuff. When the time came to go 16-bit, they leap-frogged and created the fantastic 32-bit 68K series with a wonderful instruction set that treated the entire address space the same and all data registers the same. Intel monkeyed with their 8080 to create the oddball 8086 and 8088 which became the base of the PC and all th

      • IMO, Motorola mismanaged the PowerPC, which at one time looked like it could shoot up up front. They should have taken more ownership of IBM's OS/2, and participated in propping Be, which started off as a PowerPC box. Also, when Apple wanted more power saving CPUs, Motorola should have made that their first priority. Instead, they let that market go to Intel. Imagine if today's MBPs, Mac Pros and iPhones had all been based on PowerPC!

        Instead, by just becoming an also ran ARM vendor, Freescale pretty m

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