News

Qualcomm is acquiring NXP semiconductors for $47 billion

Qualcomm, today, announced its acquisition of NXP semiconductors, previously known as Philips semiconductors, for $47 billion. This is one of the biggest deal ever made in the semiconductor market and the biggest one of any kind by the American Manufacturer.

For those people who are unaware of the name NXP semiconductors, it was previously known as Philips semiconductors and is best known for making smartphone chips. In addition to smartphone chips, it also makes the NFC payment chips and once supplied Apple’s motion coprocessors inside the iPhone. The company has a huge presence in the automotive, security and Internet of Things industries.

With this acquisition, Qualcomm may have just announced its entrance into the internet of things market. NXP has a huge R&D department for IoT and currently employees over 45,000 people all over the world. This move seems to be in accordance with current market trends as, according to many experts, smartphone boom may finally be over. This means that if Qualcomm does not find another channel for expanding its business, it may suffer the same fate as Intel and be limited to a declining market.

Qualcomm’s eagerness to acquire NXP can be seen by the amount of money they are willing to throw over them. According to reports of last quarter, NXP’s market valuation is around $37 billion. However, considering future prospects and the expected boom of IoT after it reaches a critical mass, it might be a very good investment for Qualcomm.

The combined company expects to have annual revenue exceeding $30 billion and they will service a market which is projected be worth $138 billion in 2020. By combining resources, they estimate annualized cost-saving synergies of $500 million within two years of the deal closing.

Overall this seems like a logically sound decision for the American tech giant, but only time will be able to tell how much of an impact this merger will have on the industry.

Sponsored
Shaoor Munir

I am passionate about technology, hardware and the future of both of them together. Email: shaoor@techjuice.pk

Leave a Comment
Share
Published by
Shaoor Munir

Recent Posts

Pakistan Launches First National Sex Offenders Register to Combat Sexual Violence

Pakistan has taken a significant step towards addressing sexual violence and abuse with the introduction…

1 min ago

SBP Chief Reports October Remittances Exceed $3 Billion

KARACHI: The State Bank of Pakistan (SBP) is anticipating $500 million from the Asian Development…

12 mins ago

Sindh Assembly Reveals 28,500 Govt Employees’ Spouses as Illegal BISP Beneficiaries

The Sindh Assembly was informed that over 28,500 employees of the provincial government were unlawfully…

1 hour ago

SBP Eases Policy Rate by 2.5% as Inflation Shows Steady Decline

The Monetary Policy Committee (MPC) of the State Bank of Pakistan decided to cut the…

1 hour ago

SECP to Host Pakistan Startup Summit in Karachi Next Week

The Securities and Exchange Commission of Pakistan (SECP) is organizing the Pakistan Startup Summit, which…

2 hours ago

Fake News by Pakistani AI Website Sparks Turmoil in Ireland

On October 31, 2024, Halloween was celebrated worldwide, and the holiday spirit still lingers. Pakistan…

2 hours ago