Qualcomm, a US semiconductor giant, acquired NXP Semiconductors at a high price of $47 billion. The acquisition is the largest chip merger in history, surpassing Avago's $37 billion acquisition of Broadcom Corp.

TrendForce's Takumi Industry Research Institute said that in recent years, the global semiconductor industry has set off a wave of mergers and acquisitions. Qualcomm will intensify competition in the global semiconductor industry and bring new market opportunities and challenges to Qualcomm itself.

Tuoba pointed out that in terms of opportunity, Qualcomm can quickly enter the automotive and industrial markets, improve the bargaining power of the foundry industry, and strengthen the integrity of the system-level solution and the mainland China smartphone market. The influence. On the challenge side, Qualcomm will encounter a problem in which the difficulty of supply chain management is greatly improved and the market segmentation of some product lines is difficult to define.

Main line product differences, supply chain management is the primary challenge

Takuya said that Qualcomm is the chip design industry, and the biggest difference between NXP and IDM (integrated component manufacturing) is the management concept of supply chain. In addition, since automotive electronics and security applications account for more than half of NXP's revenues, the product life cycle of these applications is extremely long, and the characteristics of Qualcomm's smart phone industry that has been eliminated in a year or two are extremely great. Different, combined supply chain management is bound to be the primary challenge.

In addition, NXP and Qualcomm have both audio processing and Bluetooth product lines, and there is overlap in the automotive processor. In addition, Qualcomm has also introduced a dedicated processor in the embedded field, how to effectively make products in the future. Separation and avoiding affecting their customer relationships will be another important issue.

Complementary benefits spread across the automotive, industrial, and smartphone industries

Tuoba further pointed out that the industrial characteristics of vehicle, industry or infrastructure are relatively closed, and it takes more time and resources to enter its supply chain. After the merger is established, Qualcomm can obtain the main customers of these markets in the shortest time. In the case of a sluggish growth in the smartphone market and a gradual decline in ASP (average sales profit), it helps to spread market risk. In addition, NXP has a rich MCU and MPU product line, and the partnership with the foundry is also very close. After Qualcomm bought NXP, it can also enhance the bargaining power with the foundry.

Qualcomm and NXP also have considerable complementary benefits on some product lines. For example, NXP is a leader in mobile payment and security, and its solutions can be combined with Qualcomm's processors to improve integrity. In particular, China's mobile payment market is on the rise, and security is a near-term important issue. The establishment will help strengthen Qualcomm's influence in the smartphone market in mainland China.

Takuya said that even in the field of repeated product development, such as electric vehicles, mergers and acquisitions can still bring comprehensive results. In recent years, Qualcomm has invested a lot of energy in the field of wireless charging for electric vehicles. NXP has been deeply involved in the field of power management and electric vehicles. From a system level perspective, extremely complete solutions and abundant R&D resources will accelerate Qualcomm. The development of the automotive sector.

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