consolidation is good because it will somehow improve the quality of products and more profit for the company. The badside of it is that people might lose job.
NXP is basically a quite a big of a company to be acquired by another company. Atleast they are very good in the integrated wireless chipsets designed into the mobiles. They are a powerful microcontoller company and is a leading manufacturer of the power amplifier. Philips itself would be probably consuming lot of semiconductors from NXP. I don't really think theis will be sold to anyone atleast as long as philips is doing very good business.
Good insights on what happens when an industry consolidates. I would only add that whether innovation in an industry is held back or stimulated is a good measure of merger's success. We can look at Silicon Valley to see the success of start-ups that got to where they are through innovation. On the other hand we can see a giant like Bell Telephone, which had innovative visionaries of its own, invent the transistor and make a generation of start-ups possible.
Thanks for the questions. Hard to say if semiconductor industry consolidation is good or bad. I'm not sure I would use those words specifically because that's a pretty subjective interpretation and largely depends on where anyone sits in the supply chain. Rather, I would ask is it healthy for an industry to consolidate. Often, I think, in the long term it can be, depending on who's buying what. While I'm no fan of a having a handful of large monopolies dictate all the rules in the electronics sector and I tend to have a soft spot for underdogs that successfully carve out innovative niches against competitive giants, consolidation usually provides at least a brief reflection and inflection point. It allows companies - both those directly involved in M&A deals and those watching on the sidelines - to take a closer look at defining what's working and what's not; take stock of where the industry is heading; infuse some new ideas into the mix, and course correct. I see those practices as essential to running a business today. So if the ebb and flow of industry expansion and contraction helps achieve those things, then I would hedge a bet and say it's worthwhile.
It seems like all the companies are fighting for the no 1 place. definitely i feel the rumours of merging is definitely a good call because for any design house, it makes it simple they need not run round in choosing different chips from different companies. it can be seen as a complete solution.
What do you think about this consolidation that is happening in the semiconductor industry ? Is it good or bad for the overall semiconductor industries growth ?
After hearing all the press releases and the rumors afloat, I would have to agree that something is in the works. There are going to be some more major mergers or purchases in the next few years. In today’s market place it seems like some companies best options to stay in growth mode is to join forces, or have a product nobody else has and everybody wants. There might be some truth to the comments coming from NXP's CEO, but my guess is he is positioning his company so that it looks much better to potential buyers.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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