High Pass Acquisition Nxp Has Sugar To Eat

Qualcomm is going to buy a $44 billion M & A case of NXP, which has been prepared by the mainland authorities for a late failure. For Taiwan semiconductor industry, high Qualcomm and NJI Pu's product line overlap is low. No matter whether the merger and acquisition case is passed or not, the single profit of the Taiwan wafer generation factory and the sealing plant is more than the disadvantages, and the IC design manufacturers, such as the Federation, the new Tang and the Sheng group, will not have a negative impact.

Qualcomm has been king for years in the smart phone and communication chip market, but with the growing trend of smart phone market, Qualcomm has to look for new markets. In the last 2 years, the market is taking off quickly, one is ADAS and self driving, and two is the main body of artificial intelligence. Efficiency operation (HPC); three is the Internet of things connected by intelligent city and intelligent factory. Qualcomm decided to buy NXP at a sky high price, which is to rush into the electronic and Internet market for vehicles.

Although the high pass M & A case has been agreed by the United States, the EU and other countries, only the mainland authorities have not nod their heads so far, Qualcomm has also done the worst intention of the merger case. But for the semiconductor industry in Taiwan, whether the merger has gone through the border will not cause too much impact and impact.

If Qualcomm is successfully eating Ni Zhi Pu, it is bound to lead the new company to continue to design in the direction of IC, the wafer plant and the seal plant under the banner of NJI is likely to reduce production capacity or sale, the Taiwan wafer generation plant and the sealing plant is expected to increase. But the huge scale of Qualcomm will have greater bargaining power, and the price of OEM is easy to fall or rise. But overall, it still has more advantages than disadvantages.

If the merger of Qualcomm and Enzhipu breaks down, the original two companies in Taiwan's wafer OEM and testing and other outsourcing production chain will naturally maintain the status quo. But in the long run, we can not merge or cooperate to launch integrated solutions to tackle new markets such as automotive electronics and the Internet of Things. Taiwan has a huge wafer OEM and sealing capacity, the future of new chip OEM orders are expected to be released in large quantities, or can be read more profitably.

As for the IC design industry in Taiwan, Qualcomm's acquisition of NXP no matter whether it is successful or not, it has little impact on the joint venture, new Tang, Sheng group and other industries. If the merger is successful, the integration of the two big factories is bound to fade out of many low margin product lines, or equal to the transfer of the market to the IC design plant. 　

If the merger fails, the market will maintain the status quo, of course, no impact on Taiwan IC design plant. If Qualcomm has failed in the merger case, the strategy is changed with NJI Pu to cooperate with the Taiwan IC design industry in the short term, but the long line is not a bad thing for the Taiwan IC design plant to strengthen the cooperative relationship in the perspective of industrial development.