Despite Attractive Margins and Stability Analog Semiconductor Consolidation Likely based on industry wide excess capacity, constraints on Analog expertise, and outside interests.
1. ANALOG SEMICONDUCTOR
CONSOLIDATION IN DISCUSSION
Despite Attractive Margins and
Stability Analog Semiconductor
Consolidation Likely
BILL KOHNEN
P A C R I M S E MI C O N F E R E N C E
NOTES OCTOBER 2013
2. SUMMARY
The Analog Semiconductor segment is relatively stable, maintains
good margins and has modest but consistent growth with low
capital and operational cost for existing well managed
companies.
There has been some recent consolidation (Texas Instruments
and National Semi)
Various factors continue to make consolidations/mergers likely
Active discuss likely going on now including major players
outside of current Analog Space
BILL KOHNEN
P A C R I M S E MI C O N F E R E N C E
NOTES OCTOBER 2013
3. FACTORS DRIVING CONSOLIDATION
Current Excess Capacity
Industry wide G&A Excess
Constrained Analog Design Technology Expertise Worldwide
Always interest from DSP, Processor, and Memory players to look
to own more of the signal chain or motherboard
Major Analog Buyers starting to look at market
Global Industrial Giants that may already have some internal Semi production
BILL KOHNEN
2013
P A C R I M S E MI C O N F E R E N C E N O T E S
OCTOBER
4. SERIOUS EVALUATIONS IN ANALOG
SPACE ONGOING
Analog is a small community so there have generally always been
lukewarm discussions going on
However, seriousness of talks seems to be at high level global
driven by changing of guard within industry executive
management as well as interest of outside players
Even those on inside probably can not say who and when but
likely sooner rather than later and will include companies in
revenue range of one to two billion.
BILL KOHNEN
P A C R I M S E MI C O N F E R E N C E
NOTES OCTOBER 2013