As the electronics gadgets are growing more complex, the customers for semiconductor are looking for comprehensive system solutions instead of individual chipNRE for new chips (particularly coming out at lower process nodes) is increasing continuously demanding huge volume for break-evenOvercoming continuously squeezing margin – acquisition gives an opportunity to the company to slash costs and hence improve marginOverall semiconductor growth has comes down (4% in 2015) and hence companies with cash reserve is looking M&A to drive growthDiversification of portfolio (and market base) to mitigate the cyclical nature of the semiconductor industryGood cash reserve of the big semiconductor MNCs and low interest rateVery few foundries at lower process nodes, relatively less number of package houses for complex packages is resulting in weaker negotiating power for the small and medium semiconductor companies
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