The on-again, off-again rumors around a possible acquisition bid for NXP Semiconductors NV from Samsung Electronics have resurfaced sending NXP’s stock price up briefly.

The NXP share price spiked after it was reported that Samsung’s de facto leader Lee Jae-yong would hold talks about a possible merger and acquisition deal during a visit to Europe from June 7 to 18. However, it has subsequently returned to its previous level.

Samsung has been linked with NXP for several years going before Qualcomm’s failed bid to acquire NXP in 2017 and 2018 (see NXP acquisition by Qualcomm about to collapse). Samsung had also been linked with Infineon Technologies AG and as being interested in taking part in a consortium to take control of intellectual property licensor Arm Ltd. (see Qualcomm raises prospect of an Arm consortium – report).

The possibility of a Samsung takeover of NXP had been touted for similar reasons to Qualcomm’s bid; that it would help the semiconductor division diversify into the automotive and industrial sectors. However, NXP’s ascending market capitalization seemed to put Samsung off in September 2021 (see Samsung backs off from NXP deal).

Since then NXP’s market capitalization has returned to more or less where it was pre-pandemic at about US$47 billion. It had been as high as $60 billion.

It has also been pointed out that NXP is a major customer of TSMC, a rival foundry to Samsung. So an acquisition of NXP could be used over time to diminish TSMC’s market share.

Related links and articles:

News articles:

Report: Samsung has second thoughts about NXP acquisition

Reports: NXP, Infineon top Samsung’s shopping list

Qualcomm, NXP discuss merger, say reports

NXP acquisition by Qualcomm about to collapse

Qualcomm raises prospect of an Arm consortium – report

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