Semiconductor M&A Completed $ 22 Billion in First Eight Months of 2021

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After a sharp increase in the number of announcements of mergers and acquisitions of semiconductor companies in the second half of 2020, strong momentum continued into early 2021. In the first quarter, purchase agreements for chip companies, business units, product lines and related assets reached a total value of $ 15.8 billion, setting a record high for the first quarter of the year. However, over the next five months, the pace of deal-making slowed, bringing the total cost of mergers and acquisitions this year for the January-August period to $ 22.0 billion. Such data is contained in a report prepared by IC Insights.

The aggregate value of semiconductor mergers and acquisitions announced in the first eight months of 2021 was slightly below the total value for the same periods in 2019 and 2020 ($ 24.7 billion and $ 23.4 billion, respectively).

Semiconductor M&A Completed $ 22 Billion in First Eight Months of 2021

The cost of mergers and acquisitions for the full year of 2020 jumped to a record high of $ 117.9 billion after the business environment stabilized in the second half of last year following the COVID-19 pandemic. Between September and December 2020, the combined value of M&A deals was $ 94.5 billion. Over a four-month period, four major deals were announced: the $ 40 billion purchase of Arm by Nvidia, the $ 35 billion purchase of Xilinx by AMD, the $ 10 billion purchase of Inphi by Marvell Technology, and the purchase of the company’s NAND flash memory business. Intel by SK Hynix for $ 9 billion. Note that three of these four transactions are still awaiting regulatory approval.

As in the past year, the total volume of deals could increase significantly in the remaining months if agreements are reached on potential deals, which were reported in the press. For example, in the summer, Intel was reportedly in talks to buy GlobalFoundries for about $ 30 billion, while Western Digital and Kioxia are exploring the possibility of a merger valued at more than $ 20 billion. However, there is no more accurate information on this score yet.

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