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Mega Semiconductor Merger?

Avago Technologies , the Singaporean chipmaker that  started out as a division of Hewlett Packard (HP), is in advanced negotiations to acquire American chip manufacturer Broadcom, which makes chips for about half tablet computers and smartphones worldwide, its customers include Amazon, Apple, Google and Samsung , reported the newspaper “Wall Street Journal”.

Terms of the transaction were not disclosed evolving and there is no guarantee that the negotiations will mature eventually into a deal, the Journal reported.

Broadcom shares jumped 20% in trading on Wall Street, and the company’s market value jumps to $34 billion. Avago Stock increased by 10% and the company’s market value climbed to $37 billion.

Reports of the deal being worked out between Avago and Broadcom join the mergers and acquisitions that happened this year and last year in the global chip sector. Dutch semiconductor manufacturer NXP announced in April the acquisition of chip maker Freescale for 11.8 billion dollars.

 

 

A month earlier, the, “Wall Street Journal” that the chip giant Intel is negotiating the acquisition of chip maker Altera (Altera), which is traded at a market value of $14 billion. However, several weeks later, the television channel CNBC reported on the collapse of the trade talks, which if implemented would go was the biggest acquisition in the history of Intel.

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