Chip design industry mergers and acquisitions risk big, the market transition period to chassis

hunting cloud network October 30

two famous domestic chip design company recently spreadtrum, RuiDi were privatised delisting, caused the attention of many electronic enthusiasts and speculation. Reached before RuiDi spreadtrum m&a of gossip, as many lovers, two intent on mergers and acquisitions of state-owned capital expansion, in response to the current trend of market integration, it is the next winter market.

spreadtrum for baseband chip design companies, in terms of mobile phone baseband circuit design, especially the TD baseband design scheme, have many core design patent, the advantage is obvious. Recent td-scdma baseband chip adopted by international companies such as samsung, fully demonstrated his baseband chip design strength.

RuiDi is rf chip design companies, such as bluetooth GPS, wi-fi, FM, namely the design of the rf chip research and development, he has many years of accumulation in the field of rf chip design, the innovation of low power consumption, low cost rf chip design, occupies a very big advantage, win a large amount of market share. “The unity of the” triad “and” four rf chip adopted by many international companies.

two products are obviously different, and in their respective areas are top-notch. In the current international companies highly integrated single chip solutions under the attack of the two companies of living space will become smaller and smaller. In the future, has lower cost, integration advantages of AP + BP + rf chips, more chip and single chip solution, with the improvement of technology, no doubt will occupy the mainstream gradually. And only a single field advantage of spreadtrum and RuiDi division, apparently cannot very good response to the trend. The next two will surely make acquisitions and mergers of choice, but such decisions need facing complex in the situation than we imagine. And with whom to mergers, acquisitions, and may not be as it is wishful thinking.

the first: the company of the cultural differences between the problem.

have already mentioned above, because the two companies in their respective areas are top-notch. After the merger, policy makers who will do? Due to two different professional direction, high-level decision, will their main idea is different because the professional, not solid step to perform? The future strategic layout, the products have a good direction how to reconcile?

these problems is the most difficult, namely company politics. Greatly dragged on the pack to force of the company. For future development and disadvantage. Like a torch force to acquire SigmaTel makes changes, core brain drain precedent, has been a wake-up call for companies in advance.

the second: the market volatility.

although highly integrated single chip solutions is currently the market trend, but in each segment of the market, find the corresponding survival space also is not impossible. Separate chips also have their own advantages, will always exist corresponding living space.

single chip solution for further integration, optimization, and occupation of the market recognition, also need a time cycle continuously. In this cycle, both through their professional sense of smell sensitive market, through technology only gradually, after a traumatic event, their development may be combined into a more healthy development.

and one during the period of development are in trouble, another for buy-out also can largely avoid internal division, to focus on market and product, is a good ending. In addition, the acquisition of other operating condition, the small company, supplement the shortage of its technology, obtain more breathing space, speed up the development of kickback, is also a good choice.

at present, spreadtrum, RuiDi already bid for the company as a supplement of short board. RuiDi acquisition of fundamental frequency company Coolsand core, spreadtrum acquisition has wi-fi chip technology of chengdu through electronic, to their respective areas.

the third: complementary companies should not be merged.

to ever more successful company merger cases investigation found that they are in front of the mergers and acquisitions or Nemesis, either m&a target just to reassure patent barriers, involving both is the same or similar field.

mediatek several m&a cases in recent years, for example, acquisition of baseband DSP IP vendors Coresonic ADI mobile phone chip acquisition, merger and, more recently, size M for the purpose of the morning star TV chip business. We can see that every business of acquisition is existing itself, not in order to complement each other, but in order to increase the technology and patent advantage.

compared with spreadtrum RuiDi division two, on the other side of the field involved is not deep, after the merger, although has the technology patents, but obviously not good between control each other, for the future direction of development, technology integration, product planning is adverse. In the intelligent mobile phone bottleneck period, new equipment and no answers to the unpredictability of the market is great, need more internal unity, aside from all other thoughts, focus on the market. At this point, stable internal ratio what all important. Chassis, again big tree also can be down by the wind. It seems that protects the merger is more dangerous.

in the same way, all electronic enthusiasts of core micro also care about her and all volunteers, haisi and actions, micro grid division and thought than families and so on after the merger, both together, step stab into the high-end market. Is impractical, and dangerous components greatly.

at present, the development of the market to companies with different space, a period of time, from life and death choice future variable is very big, who picked the right direction, it is possible to dispel the crisis, to buy other no development potential of the company. According to IC design branch of China now hundreds of self-sustaining chip company, purchase market is not limited to, have many to choose from.

in the near future, larger chip company small acquisitions, as well as the business similar bulk merger between small chip companies, will occur. This is caused by normal market development, makes the concept of complementary joint daydream as for the other, all left to the market to decide.