Acquisition is the Theme -semiconductor Industry Market Review in 2020

Marvell, an American semiconductor maker, bought Inphi for $10 billion; AMD’s all-stock acquisition of The world’s largest independent FPGA supplier Syrynx; SK Hynix of South Korea acquired Intel’s NAND flash memory chip and memory business; Nvidia’s $40 billion acquisition of chip designer ARM; ADI announced an all-stock deal to acquire Another major analog chip company, Micron. The five acquisitions formed the dominant theme of the semiconductor industry in 2020, and changed the industry ecology of half of the semiconductor industry.

Change the ecological pattern of semiconductor industry

While the number of acquisitions in 2020 was low, the combined value of several deals exceeded $100 billion. These acquisitions have changed the landscape of the semiconductor industry. In particular, Nvidia, an American semiconductor manufacturer, acquired ARM with 40 billion DOLLARS. First, ARM changed its nationality from the United Kingdom to the United States. Second, and more importantly, it changed the ecosystem of all the 0EM industry chains related to ARM in the semiconductor industry.

A company originally had its own semiconductor industry, but because a big company acquired the architect of ARM, all the semiconductor companies that bought ARM’s architecture became its customers. How could competitors become its customers?

Globalization is torn apart leading to mergers and acquisitions

Us unilateralism has led to the need for US hegemony in the semiconductor industry, how could ARM be allowed to stray outside its own country. It has mastered key semiconductor technologies in equipment, materials, manufacturing, design, packaging and many other fields, and has firmly grasped the core of the industry.

All acquisitions took place after the third quarter

First, in July, the world’s second largest analog chip giant ADI announced the acquisition of another large analog chip company Micron with 20.91 billion yuan; 2. On September 13th Nvidia announced its $40 billion acquisition of CHIP designer ARM; 3. On October 19, SK Hynix of South Korea acquired Intel’s NAND flash memory chip and memory business for $9 billion; 4. On October 27, AMD announced the acquisition of The world’s largest FPGA independent supplier Syrynx with 35 billion shares to expand its data center business; V. On October 29, Marvell, an American semiconductor manufacturer, officially announced that it would acquire Inphi, a chip manufacturer of data center components, with 10 billion DOLLARS; Semiconductor industry acquisitions occur in the second half of the year, due to the epidemic in Europe and the United States in Q2 gradually improved, after the merger of enterprises are planning the development direction of the second half and even next year.

For China core investment enterprises hundreds

In 2020, Although China’s investment and catch-up in integrated circuits and semiconductors are advancing by leaps and bounds, data show that only in 2020 “China Core” in the first seven months of 2020, the semiconductor equity investment cases reached 128, the total investment amount of more than 60 billion yuan, which is more than twice the total investment of last year. Most of them still stay in the research and development and experimental stage, without industrial production value contribution. While China’s semiconductor industry is still catching up, in the process of catching up, there is a “core cheat” and rotten tail “core pain” phenomenon.