2 min

Tags in this article

,

Infineon acquires Cypress Semiconductors for EUR 9 billion, says Reuters. Cypress Semiconductors develops microchips that are used in cars and electronic devices. The German company Infineon makes power management chips that are used in cars, smartphones and windmills.

“With the addition of Cypress, Infineon strengthens its focus on structural growth factors and is able to deliver to a wider range of applications,” says the company. The acquisition is expected to generate €180 million a year in 2022, with a long-term turnover of over €1.5 billion.

Once Cypress Semiconductors is integrated, Infineon plans to achieve sales growth of 9 percent or more. It also expects a margin of 19 percent for the segment result. The investment-to-sell ratio is expected to be reduced by 13 percent.

According to the German company, the cash offer of 23.85 dollars per share represents a premium of 46 percent for Cypress’s share prices over the past month. The German chip manufacturer plans to finance approximately 30 percent of the total transaction value with equity, the rest with debt and cash. The acquisition is expected to be completed by the end of 2019 or the beginning of 2020.

Infineon

Only last month it became clear that Infineon ranks tenth in the list of best-selling semiconductor manufacturers. Last year, the company was still in 12th place. Turnover fell by one percent in one year.

The same research showed that Samsung is no longer the largest chip maker in the world. The company lost its title to Intel, which benefits from the shrinking market that is affecting Samsung. Samsung reached the top two years ago thanks to the strong growth of the DRAM market, but that market is now collapsing. The company’s revenue in the first quarter of this year decreased by 34 percent compared to the previous year.

However, Samsung is still in second place worldwide, followed by TSMC.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.