On Semiconductor buys Fairchild - Page 1
Forum section: electronics / general

author: Karel
author_rank: Super Contributor
timestamp: November 20, 2015, 11:56:02 am
content: http://www.reuters.com/article/2015/11/18/us-fairchild-semico-m-a-idUSKCN0T71HH20151118

author: HighVoltage
author_rank: Super Contributor
timestamp: November 20, 2015, 11:57:57 am
content: Interesting news.I would rather have seen it the other way around because we had too many problems with ON semiconductor parts and switched to Fairchild.

author: tszaboo
author_rank: Super Contributor
timestamp: November 20, 2015, 12:12:49 pm
content: OK so we had this:http://www.reuters.com/article/2015/11/18/us-fairchild-semico-m-a-idUSKCN0T71HH20151118http://www.reuters.com/article/2015/09/20/atmel-ma-dialog-idUSL5N11Q0FP20150920http://www.reuters.com/article/2015/08/03/microchip-acq-micrel-idUKnPn76V9WJ+8b+PRN20150803http://www.reuters.com/article/2015/06/01/us-altera-m-a-intel-idUSKBN0OH2E020150601http://www.reuters.com/article/2015/03/02/us-nxp-semicondtrs-freescale-m-a-exclusi-idINKBN0LX1RU20150302http://www.reuters.com/article/2014/08/20/us-infineon-technol-mergers-idUSKBN0GK14C20140820http://www.reuters.com/article/2014/06/09/us-analog-devices-acquisition-idUSKBN0EK0WF20140609So who is left out in the industrial business?TI, Linear, Maxim, Intersil, ROHM, ST, Silicon labs, Cirrus logic, Diodes, Microsemi, Lattice, and a bunch of others who doesnt have english datasheet without NDA, and a mortal engineer like me doesnt care about.So, who do you think is next? I bet TI is buying someone big.

author: vinicius.jlantunes
author_rank: Regular Contributor
timestamp: November 20, 2015, 12:24:14 pm
content: There was this rumour a few weeks ago, of TI wanting to buy Maxim. Analog devices had been said to also want to buy Maxim two weeks before thathttps://www.eevblog.com/forum/chat/texas-instruments-said-in-talks-to-acquire-maxim-integrated/There was also this some 3 weeks ago, less significant but anyways:https://www.eevblog.com/forum/chat/microsemi-annouces-proposal-to-acquire-pmc-sierra/msg788220/#msg788220

author: John Coloccia
author_rank: Super Contributor
timestamp: November 20, 2015, 12:39:46 pm
content: Quote from: NANDBlog on November 20, 2015, 12:12:49 pmAnalog Devices also, unless I missed something (which is very possible)?

author: BravoV
author_rank: Super Contributor
timestamp: November 20, 2015, 12:40:19 pm
content: Quote from: NANDBlog on November 20, 2015, 12:12:49 pmI'm guessing, at the really .. really end, a gigantic China conglomerate with deep-deep pocket willbuyerr... swallow the final few ones that had consolidated nicely.

author: John Coloccia
author_rank: Super Contributor
timestamp: November 20, 2015, 12:44:01 pm
content: Quote from: BravoV on November 20, 2015, 12:40:19 pmMaybe one day we'll all be using Alibaba chips.

author: daqq
author_rank: Super Contributor
timestamp: November 20, 2015, 12:44:06 pm
content: QuoteAdd to these the following:Xilinx, On semi, Analog Devices, Microchip, Vishay (some transistors and special stuff), NXP, InfineonThere were rumors of Maxim being bought, or at least it being discussed.I think that this can only end badly for the little guy (like me).

author: tszaboo
author_rank: Super Contributor
timestamp: November 20, 2015, 12:53:51 pm
content: Quote from: daqq on November 20, 2015, 12:44:06 pmYes, Xilinx and Vishay (although Vishay is a passive and discrete semi manufacturer in my books). All the others already bought something.Quote from: John Coloccia on November 20, 2015, 12:39:46 pmThey got Hittite, so the C level people already got their premium, and dose of synergy.

author: Srbel
author_rank: Frequent Contributor
timestamp: November 20, 2015, 01:26:08 pm
content: At the end, NWO Semiconductor will buy all of them.

author: MT
author_rank: Super Contributor
timestamp: November 20, 2015, 02:01:19 pm
content: QuoteQuoteWould not be a surprise if.

author: daqq
author_rank: Super Contributor
timestamp: November 20, 2015, 03:12:42 pm
content: QuoteTo be fair, most every company above a certain size swallowed some one at some point (https://www.crunchbase.com/organization/xilinx/acquisitions).And that's only a full working company acquisition - you have far more small buys, where some company dies and sells off their IP/parts/stuff.From Vishay:Quote

author: John Coloccia
author_rank: Super Contributor
timestamp: November 20, 2015, 03:50:38 pm
content: The whole industry is very incestuous anyway. I used to work in the industry. You'd think it's big and huge, and it is, but I remember I just kept running into the same people over...and over...and over again. It felt like a big family that was constantly fighting and then making up. I've worked in other industries like that too...The strangest was some work I did up in South Portland, Maine. This was right after Fairchild and National went their separate ways, around 1997 or 1998. I think I was technically at National, but I remember there was some weirdness...like part of the fab was National's and part was Fairchild's, and some offices across the street were National's but others were Fairchild's. There were some guys I had to talk to that were Fairchild so I couldn't talk to them officially, so we'd go out for a beer and talk. Very strange situation!

author: German_EE
author_rank: Super Contributor
timestamp: November 20, 2015, 08:47:06 pm
content: From Reuters, "The company plans to take on $2.4 billion in new debt to fund the deal, nearly tripling its debt load."I know that I'm not an accountant but to me that sounds crazy. One slight dip in global demand and they will be screwed.

author: AF6LJ
author_rank: Unknown
timestamp: November 20, 2015, 08:53:34 pm
content: I hope this is a good thing.

author: Lightages
author_rank: Unknown
timestamp: November 20, 2015, 09:01:07 pm
content: It will not be a good thing. All I ever see when companies buy out other companies is less competition, less innovation, less choice, and higher prices.

author: Bassman59
author_rank: Super Contributor
timestamp: November 20, 2015, 09:19:24 pm
content: Quote from: German_EE on November 20, 2015, 08:47:06 pmThat would explain why the ON stock dropped like a rock when the deal was announced. Maybe investors have finally realized that leveraged buy-outs destroy shareholder value?

author: VK3DRB
author_rank: Super Contributor
timestamp: November 20, 2015, 10:00:55 pm
content: Not a good idea in the whole scheme of things. Fewer players means higher prices and more risk of the Chinese invading the chip market in which the net effect will be poor quality chips, scant datasheet information, and no support.Fairchild was always a favourite of mine, going back 40 years.... it is a lovemark. ON Semi has not earned that respect yet after Motorola. Microchip is a lovemark - a great company to deal with and they have wonderful chips. Less so Atmel who provides poor support.http://www.saatchikevin.com/lovemarks/future-beyond-brands/

author: SeanB
author_rank: Super Contributor
timestamp: November 22, 2015, 08:05:20 am
content: Rather ironic that the company that essentially started the IC revolution is now being absorbed by one of the grandchildren it created.

author: tszaboo
author_rank: Super Contributor
timestamp: November 22, 2015, 10:01:57 am
content: Quote from: SeanB on November 22, 2015, 08:05:20 amThey've been focusing on the wrong technology. They've been going in basically 7400 series logic gates, power management, and analog switches, discrete. 7400 series is produced by TI, ON, and anyone else, it has cutthroat profit. The power management is not a high income market. If you need longetivity, you design with a jelly bean power management IC, if you dont, you use the cheapest Taiwanese/Chinese you can get. I've quotation which has a 3 cent DC-DC converter from china.The analog switches made by them are OK-ish, but TI undercut them in price, and Analog devices offers high technology when needed. They were only a good choice if you needed something like a DG408.Discrete has the same issue like the power management. Compare Alpha & Omega prices and specifications with Fairchild.Fairchild was a trusted manufacturer, with a portfolio which wasnt competitive enough, lacking very good product. On semi is basically the same, although they are very good in multiphase DC-DC for computing, and power management in general. I dont think they will increase their profit too much by acquiring Fairchild. Few years and someone will buy them also.There you go, my fee of charge market analysis.

author: ivaylo
author_rank: Frequent Contributor
timestamp: November 23, 2015, 07:06:43 am
content: A guy I know is a some sort of manager at Qualcomm. He says the margins in the semiconductor industry are so low nowadays that they literally have no choice but consolidate the business. Interesting world we live in...

author: Bassman59
author_rank: Super Contributor
timestamp: November 23, 2015, 11:00:42 pm
content: Quote from: NANDBlog on November 22, 2015, 10:01:57 am

author: Stonent
author_rank: Super Contributor
timestamp: November 24, 2015, 01:08:31 am
content: Quote from: Bassman59 on November 23, 2015, 11:00:42 pm

author: Falcon69
author_rank: Super Contributor
timestamp: November 24, 2015, 07:57:18 am
content: Didn't TI buy out National Semiconductor some time ago? So, they are already in this companies buying out companies thing going on.