NXP has agreed to be acquired by Qualcomm. This will create the industry powerhouse to focus on Secure Connections for a Smarter World.
The combining of NXP into Qualcomm is based on compelling strategic logic that brings together two highly successful and complementary businesses to create a premier semiconductor industry leader. With unique leadership positions in Wireless technologies, Security and Processing, the union is ideally positioned to address the emerging trends of ADAS and Autonomous Vehicles, the Internet of Things (IoT) and the 5G revolution.
The combined company is expected to have annual revenues of more than $30 billion, serviceable addressable markets of $138 billion in 2020 and leadership positions across mobile, automotive, IOT, security and networking segments. The transaction has substantial strategic and financial benefits:
Complementary technology leadership in strategically important areas:The transaction combines Qualcomm’s leadership in low-power advanced computing, connectivity and communications systems with NXP’s complementary leadership in general purpose and automotive grade processing, security, automotive safety sensors and RF; enabling more complete system solutions.
- Mobile:A leader in mobile SoCs, 3G/4G/5G modems and security.
- Automotive:A leader in global automotive semiconductors, including ADAS, infotainment, safety systems, body & networking, powertrain & chassis and secure access.
- IoT and Security A leader in broad-based MCUs, secure identification, mobile transactions, payment cards and transit; strength in application processors and connectivity systems.
- Networking:A leader in network processors for wired and wireless communications and RF sub-segments, Wave-2 11ac/11ad, RF power and BTS systems.
- Enhanced go-to-market capabilities to serve our customers:The combination of Qualcomm and NXP’s deep customer and ecosystem relationships and distribution channels enables the ability to deliver leading products and platforms at scale in mobile, automotive, IoT, industrial, security and networking.
- Shared track record of innovation and commitment to operational discipline:Both companies have demonstrated a strong commitment to technology leadership and best-in-class product portfolios with focused investments in R&D. Qualcomm and NXP have both taken action to position themselves for profitable growth, while maintaining financial and operational discipline.
By EB Bureau
