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Mergers and Acquistions News

Categories: Semi-Conductors

November 20th 2008, 15:45PM

The Chinese fabless semiconductor market is set for consolidation on a grand scale, it has been predicted.

According to research by iSuppli at least 100 of the more than 550 companies operating in the area will disappear within two years.

Vincent Gu, China analyst at the company, explained that there has been a spate of takeovers in the nation and this is set to continue.

"Many companies presently are seeking buyers and a total of four companies already have been acquired by foreign semiconductor firms during the past 12 months," he said.

Currently, only 50 of the country's fabless semiconductor firms can be considered as successful, he added.

However, the sector is expected to perform better this year than in the recent past, delivering total sales revenue of $3.5 billion (£2.3 billion) in 2008, an increase of 12.3 on last year.

Last week, the Financial Times reported that Microchip Technology is to nominate candidates to join the board of Atmel after having a takeover bid rejected.ADNFCR-1833-ID-18887008-ADNFCR

 

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