Microchip currently mulls expansion of its footprint in the aerospace and defense verticals post the deal. These two verticals currently contribute a paltry 2% to the chipmaker. The deal would also beef up its presence in the data center and communications domains, which is expected to witness strong growth, especially in the areas of autonomous driving, IoT and 5G networks in US.
In January 2017, KPMG in its Global Semiconductor Outlook stated that, “M&A continues to offer companies the fastest route to enter new markets and acquire needed technology.”
It’s worth noting that Broadcom wants to buy Qualcomm for $117 billion in a hostile bid, which is still ongoing. Qualcomm on its own is trying to gobble up NXP Semiconductors for $44 billion.
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