Mobile Devices Research Service
Wireless Semiconductors Research Service
|
what's next in connectivity | |
|
Monday - May 12, 2008
|
||
STMicroelectronics and NXP Form Wireless Semiconductor Powerhouse
2008-05-09
The STMicroelectronics merger with NXP is impressive on paper and welcomed at every level of the wireless ecosystem, except maybe by Qualcomm, TI, and any other wireless semiconductor company now looking up at what is likely to be the industry’s third largest player. Each of the combining organizations brings a large portfolio of wireless products to the table and the two companies have similar production approaches, insofar as neither owns or operates a wafer fabrication facility, each chooses, instead, to outsource to established foundry vendors. With a merger this size, overlaps are expected. Will there be costly overlap or will this merger capitalize on a complementary fit between these two companies?
| Authors: | Kevin Burden | Research Director, Mobile Devices Doug McEuen | Senior Analyst, Wireless Semiconductors |
2008-05-09
The STMicroelectronics merger with NXP is impressive on paper and welcomed at every level of the wireless ecosystem, except maybe by Qualcomm, TI, and any other wireless semiconductor company now looking up at what is likely to be the industry’s third largest player. Each of the combining organizations brings a large portfolio of wireless products to the table and the two companies have similar production approaches, insofar as neither owns or operates a wafer fabrication facility, each chooses, instead, to outsource to established foundry vendors. With a merger this size, overlaps are expected. Will there be costly overlap or will this merger capitalize on a complementary fit between these two companies?