\tInfineon Technologies lined up an acquisition of Cypress Semiconductor in a deal which values the target at \u20ac9 billion and which it expects to unlock the potential of sectors including automotive, industrial and the IoT.<\/p>\n
In a statement, Infineon said the purchase will bolster its portfolio for \u201clinking the real with the digital world\u201d. Reinhard Ploss, CEO, added: \u201cThis will open up additional growth potential” and “also makes our business model even more resilient.\u201d<\/p>\n
Infineon noted Cypress has \u201ca differentiated portfolio of microcontrollers as well as software and connectivity components that are highly complementary to Infineon\u2019s leading power semiconductors, sensors and security solutions\u201d.<\/p>\n
It also said its security expertise and Cypress\u2019 connectivity skills will accelerate entry into new IoT applications in the industrial and consumer segments. Opportunities in automotive were also highlighted.<\/p>\n
Germany-based Infineon also said the addition of Cypress\u2019 R&D and geographic presence in the US strengthens its position not only in the North American market, but also in other important regions: it noted the \u201cstrategically important Japanese market\u201d as an example.<\/p>\n
The buyer also said it is aiming to achieve significant economies of scale, making its business model more resilient. Based on pro forma revenue of \u20ac10 billion in 2018, the deal will make Infineon the number-eight chip manufacturer in the world.<\/p>\n
Expected economies of scale are expected to generate cost synergies of $180 million per year by 2022.<\/p>\n
The deal is subject to approval by Cypress\u2019 shareholders and regulatory bodies, as well as other conditions. It is expected to close either by the end of 2019 or early 2020.<\/p>\n","protected":false},"excerpt":{"rendered":"
Infineon Technologies lined up an acquisition of Cypress Semiconductor in a deal which values the …<\/p>\n
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