Infineon into the top 10 largest global chip-makers

Infineon Technologies has agreed to buy US rival Cypress Semiconductor for €9 billion including debt in a deal that promises to turn the German group into the world’s largest supplier of silicon chips to carmakers. Munich-based Infineon said yesterday that it would pay $23.85 per Cypress share, representing a 46 per cent premium to the target company’s 30-day average price… The latest takeover in the fast-consolidating chip industry came after Dutch semiconductor group NXP agreed last week to acquire the Wi-Fi business of Marvell Technology Group for $1.8 billion… Infineon, which has more than 40,000 employees around the world, supplies parts for a wide variety of products, from cars and industrial motors to renewable energy systems, smart-phones and mobile payments. Cypress also provides connectivity systems to the automotive industry, while its power delivery technology is found in the latest iPhones… Buying Cypress would propel Infineon into the top 10 largest global chip-makers by sales, with annual revenues of more than €10 billion… The new entity would have a 13 per cent share of the automotive semiconductor market… overtakingNXP… Infineon said it hoped to achieve annual cost savings of €180 million by 2022. 
James Fontanella-Khan, Arash Massoudi and Tim Bradshaw