Analog Devices To Buy Maxim Integrated
by Andrei Frumusanu on July 13, 2020 3:30 PM EST- Posted in
- Semiconductors
- Analog Devices
- Maxim Integrated
Today Analog Devices has announced that it will be acquiring Maxim Integrated in a transaction estimated at $21bn. The combined company value is said to end up being valued at $68bn, creating a significant player in the analog IC market.
Analog Devices are best known for their signal processing discrete ICs, such as amplifiers, ADCs and DACs, although their product portfolio extends to a very wide range of other designs.
Meanwhile Maxim Integrated is mostly known by their power management ICs as well as sensors. For example, they have been the main battery power management IC (PMIC) provider for Samsung mobile devices for the better part of the last decade (And until recent years, a lot of other phone-centric PMICs as well).
Although the two companies have some overlapping product segments which likely will see consolidation, the overall two business seem like they will be complementary to each other as they both specialize in different areas. Analog Devices in particular says that the transaction is meant to boost its market share in the automotive and data centre markets thanks to Maxim’s application specific products, while continuing to offer Analog Devices own broader market products.
In a market where we see a ton of consolidation and many vendors opting to vertically integrate their solutions, it becomes important to have a broader product portfolio in order to maintain leadership positions. The new consolidated Analog Devices and Maxim Integrated entity will have the breadth to compete against big players such as Texas Instruments.
Source: Analog Devices Press Release
Facebook
Twitter
RSS
16 Comments
View All Comments
JCB994 - Tuesday, July 14, 2020 - link
"The fact of the matter is engineers don't really 'like' to stay in one place."Not quite correct...Engineers are willing to stay in one place but the glass ceiling is hit pretty quickly. If an engineer wants to move up or make more money they quite often have to move on. A lot of it is the personality type (see Meyers-Briggs, DISC or whatever) and management does not understand what makes engineers "tick". Many companies are willing to hire fresh grads at exorbitant salaries but step on the incumbents. Take away the incentives and the engineer will move on. Note: I am a 35+ Year Chemical Engineer on my 12th or 13th job...Some I have moved on by choice and some not by choice.
drexnx - Tuesday, July 14, 2020 - link
I saw this as an eventuality in the mid-late 2000s when I was in school... decided to switch out of EE. My only regret was wasting a year in that track.Samus - Wednesday, July 15, 2020 - link
I agree with all points here. I guess naturally anybody would like the security of employment as long as they are happy. But as stated, that glass ceiling. Few engineering houses have the scale to accommodate. And most certainly few companies understand engineer mindset, which is why they are most often happiest as median-income positions in education where they have a LOT of freedom and little micromanagement.In reply to drexnx, having an EE in the USA is difficult, because rudimentary designs are outsourced to India and China, and complex designs are often a one and done project that doesn't occur enough at one company to keep engineers on staff.
Which is why I've been a consultant for over a decade. I bid out my talent as needed and have on rotation about 20 companies throughout Chicago that call me when they 'need something done' or need assistance with a design, often overseeing or tweaking a design built by younger engineers who no longer have the mentor-ship they would have traditionally received previously through companies. As JCB stated, incumbents are cast aside and they (we) are incredibly important to bring the missing experience of problem solving and legacy design talent to the table, both things obviously fresh grads lack.
Nexing - Monday, July 13, 2020 - link
We've seen what happens when vertical/horizontal integrations happen at markets with reduced number of relevant players.If left to their own cross-eyed devices, SarahKerrigan's point could be just one of many undesirable potential effects, including product's price increase, innovation stall, product diversity (and their applicable solutions) reduction. Which might have additional effects in other industries and markets... Some technological sectors affect economic and entrepreneurial multipliers deep in, this might be the case.
HardwareDufus - Monday, July 13, 2020 - link
This is happening in every field, every company. There is just no more room left with all of the consolidation going on. Thank god I only need to earn good money for 5 more years... and it will honestly be some of the toughest 5 years. I'll sell hotdogs at 55.... done with all things computer and engineering.mikestefoy - Tuesday, July 14, 2020 - link
you should have mentioned analog swallowing Linear Technology las year. This is a bad move for the Analog industry