Mega merger: MaxLinear and Silicon Motion become a semiconductor giant

Mega merger: MaxLinear and Silicon Motion become a semiconductor giant
Image: MaxLinear

Together they are said to be worth $ 8 billion: US broadband chip maker MaxLinear takes over SSD controller maker Silicon Motion with roots in the US and Taiwan. The merger creates a new semiconductor giant.

In cash and stock, MaxLinear is paying about $ 3.8 billion for Silicon Motion (SMI), a whopping 48% premium over the April 22 share value. Meanwhile, however, SMI’s share price has risen significantly.

Combine over $ 2 billion in annual sales

The resulting company is valued at $ 8 billion and is expected to have combined annual revenue of more than $ 2 billion. The total addressable market (TAM) is estimated at US $ 15 billion. The merger is aimed atleader in highly profitable cash-generating semiconductor“do it,” says the statement.

These are MaxLinear and Silicon Motion

Founded in California in 2003, MaxLinear is known for high-frequency semiconductors and took over Marvell, a developer of SSD controllers, about five years ago. Once approved and completed, the transaction will include Silicon Motion, a leading developer of control processors (controllers) for NAND flash products such as SSDs, memory cards and USB flash drives.

Other recent acquisitions by MaxLinear include the purchase of Intel’s Home Gateway Platform Division (formerly Lantiq) in 2020.

Silicon Motion recently focused more on its core business with controller chips and sold its mobile communications subsidiary FCI in 2019. Silicon Motion is a frequent guest on ComputerBase reports, after all the company is one of the largest suppliers of turnkey controller solutions for client SSDs together with Phison. Since the PCIe 4.0 generation, however, Phison has clearly taken over.

Doing business together faster and cheaper

The merger of technology and resources aims to accelerate the advancement of existing products, improve operational efficiency and reduce manufacturing costs, the announcement states.

Among other things, Silicon Motion hopes this will result in faster expansion in the enterprise storage industry.

The companies expect the transaction to close by the first half of 2023.

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