Despite experiencing a general slowdown over the past few years, the semiconductor industry has seen a resurgence in 2019.
The year has been marked by several billion dollar deals, and smaller acquisitions including United Microelectronics’ purchase of Mie Fujitsu Semiconductor, which was finalised last week after government approval.
Back in 2014 the acquisition agreement was first inked, initiating a process that began with the transfer of a 15.9 percent stake in Mie Fujitsu to UMC. With the transfer of the final 84.1 percent of shares, Mie Fujitsu will now be renamed United Semiconductor Japan Co, and will focus on creating chips for the Japanese automotive market.
With expertise in embedded applications, including low power consumption process technology and non-volatile memory, Mie Fujitsu already has an existing customer base in the automotive sector, and is well-situated to help UMC tap into growing demand for the next generation of car chips.
“UMC is experiencing high demand from mature 12″ processes. With new applications in 5G, IoT, automotive and AI requiring these technologies, we anticipate the market conditions driving this demand to remain strong for the foreseeable future” said UMC co-president Jason Wang in a statement. “The acquisition of a fully qualified, equipped, and volume production proven 12″ facility provides greater time and ROI advantages compared to building a fab from scratch, which would cost several billion dollars and several years to construct and equip.”
The acquisition, which is valued at around $520 million, is one of several blockbuster chip deals that have taken place in 2019, leading research firm IC insights to suggest the year will be the third busiest yet for semiconductor mergers and acquisitions.
More registrations of new cars, stringent government regulations on safety and emissions, and the arrival of autonomous and electric vehicles, are all helping to make the automotive chip sector is one of the fastest growing segments of the semiconductor market.
About Acuity Advisors
We know technology – that’s why we’re the industry’s trusted M&A advisor. Our partners are senior players in tech and M&A: skilled at getting to the heart of a technology business, understanding what will attract buyers, and building long-lasting relationships. We have an unrivalled understanding of the industry’s complexities and personalities – our track record and client feedback are compelling evidence of that. We’re an international firm – most of our deals are cross-border, from offices in London, Munich, Shanghai and Silicon Valley – but we’re grounded in our approach. We move quickly when it’s needed, and we’re around for the long haul when patience is a virtue. We’ve maintained a very high success rate across hundreds of deals while keeping our focus on doing what’s right for our clients. From first meeting to successful exit, we earn the trust that clients and investors put in us.
© 2019 Acuity Advisors Limited
A conversation is never wasted. We’re confident that we can give you all the help you need, but we’ll tell you if we think there’s a better option for you.Get in Touch