Freescale-NXP Merger Leaves Fewer Viable Alternatives in Chip Market

Dale Ford, Vice President, Semiconductors & Components, IHS Technology
Electronics360 (March 2, 2015)

The announced merger of Freescale Semiconductor Inc. and NXP Semiconductor for $11.8 billion has important implications from a buyer-side perspective.

When Renesas and NEC merged, many companies were left looking for another second source supplier, and they turned to Freescale and NXP. Now, with the merger of these two companies, there are pluses and minuses. First, the combined company should have greater resources to devote to support the significant pick-up of customers they took from Renesas/NEC when they went looking for another second source. But, second, the industry consolidation just became that much greater meaning as there are fewer viable alternatives of major suppliers for vendors to choose from.

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