Qualcomm to acquire NXP Semiconductors
Massive $47bn deal to expand vendor’s sales channels for IoT
Qualcomm is acquiring NXP Semiconductors for $47bn, the biggest deal yet in the chip industry, as the company looks to amp up its sales channels around the Internet of Things (IoT).
NXP Semiconductor’s broad customer base and global network of distribution channel partners is essential for expanding Qualcomm’s IoT, automotive, security and networking footprint, Qualcomm CEO Steve Mollenkopf said in a statement.
“By joining Qualcomm’s leading system on chip (SoC) capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT, we will be even better positioned to empower customers and consumers to realise all the benefits of the intelligently connected world,” added Mollenkopf
Netherlands-based NXP Semiconductors specialises in developing chips for automotive systems including automotive radar, digital radios and transceivers. NXP also offers ARM-based, low-power microcontrollers for the IoT space, secure identification products, network processing and RF power products.
Qualcomm, meanwhile, has long been a leader in the mobile space, but the company is beginning to look beyond the mobile market to the IoT, specifically through channel alliances.
In September, Qualcomm announced it is using a distributor for the first time, Arrow Electronics, to offer initial sales and support for new embedded Snapdragon chips. The Snapdragon 410E and Snapdragon 600E series are designed to reach a broader market and target low-power, scalable IoT applications.
History of the Qualcomm
In July 1985, seven industry veterans came together in the den of Dr. Irwin Jacobs’ San Diego home to discuss an idea. Those visionaries—Franklin Antonio, Adelia Coffman, Andrew Cohen, Klein Gilhousen, Irwin Jacobs, Andrew Viterbi and Harvey White—decided they wanted to build “Quality Communications” and outlined a plan that has evolved into one of the telecommunications industry’s greatest start-up success stories: Qualcomm Incorporated.