Qualcomm buys NXP Semi for £38.62 billion

October 28, 2016 // 10:11 a.m.

Tags: #acquisition #financial #nxp #nxp-semiconductor #qualcomm #rick-clemmer #semiconductor #snapdragon #steve-mollenkopf

Mobile and embedded chip specialist Qualcomm has announced that it is to acquire NXP Semiconductor in a deal valued at £38.62 billion.

Best known for its Snapdragon family of ARM-based system-on-chip processors for the smartphone and tablet markets, Qualcomm has entered into a definitive agreement to acquire NXP Semiconductor for £38.62 billion in cash. The aim: to add NXP's mixed-single expertise, in particular in the automotive and Internet of Things (IoT) markets, to Qualcomm's own product portfolio.

'The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale,' crowed Steve Mollenkopf, Qualcomm chief executive, of the acquisition. 'By joining Qualcomm’s leading SoC capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT, we will be even better positioned to empower customers and consumers to realise all the benefits of the intelligently connected world.'

'Jointly we will be able to provide more complete solutions which will allow us to further enhance our leadership positions, and expand the already strong partnerships with our broad customer base, especially in automotive, consumer and industrial IoT and device-level security,' claimed NXP chief executive Rick Clemmer. 'United in a common strategy, the complementary nature of our technologies and the scale of our portfolios will give us the ability to drive an accelerated level of innovation and value for the whole ecosystem. Such a strong fit will bring opportunities for our employees and customers, as well as provide immediate attractive value for our shareholders, in creating the semiconductor industry powerhouse.'

The deal continues a period of major consolidation in the semiconductor industry, with SoftBank picking up ARM, Intel acquiring Movidius and Altera, and Microchip buying Atmel.
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