October 28, 2016
San Diego-based Qualcomm plans to acquire NXP Semiconductors in a deal valued at $47 billion. The transaction is believed to be the largest ever in the semiconductor industry, as well as the biggest by the smartphone chip maker.
The move is aimed at diversification into other markets beyond Qualcomm’s core smartphone business. Netherlands-based NXP supplies semiconductor chips for payment processing, automotive computers, sensors, Internet of Things devices, as well as other sectors.
The footprint of each company today includes roughly 45,000 employees at NXP, and 30,000 workers Qualcomm. The deal, which is expected to result in combined annual revenues of more than $30 billion, also provides an opportunity for Qualcomm to expand its addressable markets by 40% to $138 billion by 2020.
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