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Analog Devices, Inc. (NASDAQ: ADI) and Linear Technology Corporation (NASDAQ: LLTC) this week announced that they have entered into a definitive agreement under which Analog Devices will acquire Linear Technology in a cash and stock transaction that values the combined enterprise at approximately $30 billion.

Under the terms of the agreement, Linear Technology shareholders will receive $46.00 per share in cash and 0.2321 of a share of Analog Devices common stock for each share of Linear Technology common stock they hold at the closing of the transaction. The transaction values Linear Technology at approximately $60.00 per share, representing an equity value for Linear Technology of approximately $14.8 billion.

“The combination of Analog Devices and Linear Technology brings together two of the strongest business and technology franchises in the semiconductor industry,” said Vincent Roche, President and Chief Executive Officer of Analog Devices. “Our shared focus on engineering excellence and our highly complementary portfolios of industry-leading products will enable us to solve our customers’ biggest and most complex challenges at the intersection of the physical and digital worlds. We are creating an unparalleled innovation and support partner for our industrial, automotive, and communications infrastructure customers, and I am very excited about what this acquisition means for our customers, our employees, and our industry. ”

Bob Swanson, Executive Chairman and Co-founder of Linear Technology, added, “For 35 years, Linear Technology has had great success by growing its business organically. However, this combination of Linear Technology and Analog Devices has the potential to create a combination where one plus one truly exceeds two. As a result, the Linear Technology Board concluded that this is a compelling transaction that delivers substantial value to our shareholders, and the opportunity for additional upside through stock in the combined company. Analog Devices is a highly respected company. By combining our complementary areas of technology strength, we have an excellent opportunity to reinforce our leadership across the analog and power semiconductor markets, enhancing shareholder value.

Together, Linear Technology and Analog Devices will advance the technology and deliver innovative analog solutions to our customers worldwide. We are committed to working with the ADI team to ensure a smooth transition.”

Mr. Roche concluded, “We have tremendous respect and admiration for the franchise created by Linear Technology. I have no doubt that the combination of our two companies will create a trusted leader in our industry, capable of generating tremendous value for all of our stakeholders.”

Following the transaction close, Mr. Roche, President and CEO of Analog Devices will continue to serve as President and CEO of the combined company, and David Zinsner, SVP and CFO of Analog Devices, will continue to serve as SVP and CFO of the combined company. Analog Devices and Linear Technology anticipate a combined company leadership team with strong representation from both companies across all functions.

The Linear Technology brand will continue to serve as the brand for Analog Devices’ power management offerings. The combined company will use the name Analog Devices, Inc. and continue to trade on the NASDAQ under the symbol ADI.

Analog Devices intends to fund the transaction with approximately 58 million new shares of Analog Devices common stock, approximately $7.3 billion of new long-term debt, and the remainder from the combined company’s balance sheet cash. The new long-term debt is supported by a fully underwritten bridge loan commitment and is expected to consist of term loans and bonds, with emphasis on pre- payable debt, to facilitate rapid deleveraging.

This transaction has been unanimously approved by the boards of directors of both companies. Closing of the transaction is expected by the end of the first half of calendar year 2017, and is subject to regulatory approvals in various jurisdictions, the approval of Linear Technology’s shareholders, and other customary closing conditions.

STMicroelectronics (NYSE:STM) today announced that it has acquired ams’ (SIX: AMS) assets related to NFC1 and RFID2 reader business. ST has acquired intellectual property, technologies, products and business highly complementary to its secure microcontroller solutions serving mobile devices, wearables, banking, identification, industrial, automotive and IoT markets. Approximately 50 technical experts from ams have been transferred to ST.

The acquired assets, combined with ST’s secure microcontrollers, position ST for a significant growth opportunity, with a complete portfolio of technologies, products and competencies that comprehensively address the full range of the NFC and RFID markets for a wide customer base.

“Security and NFC connectivity are key prerequisites for the broad rollout of mobile and IoT devices anticipated in the coming years. This acquisition builds on our deep expertise in secure microcontrollers and gives ST all of the building blocks to create the next generation of highly-integrated secure NFC solutions for mobile and for a broad range of Internet of Things devices,” said Claude Dardanne, Executive Vice President and General Manager of STMicroelectronics’ Microcontroller and Digital ICs Group. “We welcome this highly competent team from ams into ST for the benefit of our customers.”

The first NFC controller, leveraging the acquired assets, is already sampling to lead customers, as well as a new high-performance, highly-integrated System-in-Package solution which combines this NFC controller with ST’s secure element.

ST acquired the ams assets in exchange for a (i) cash payment of $77.8 million (funded with available cash), and (ii) deferred earn-out contingent on future results for which ST currently estimates will be about $13 million but which in any case will not exceed $37 million.

A*STAR’s Institute of Microelectronics (IME) has launched two consortia on advanced packaging, the Silicon Photonics Packaging consortium (Phase II) and the MEMS Wafer Level Chip Scale Packaging (WLCSP) consortium. They will develop novel solutions in the heterogeneous integration of micro-electromechanical systems (MEMS) and silicon photonics devices, which will boost overall performance and drive down production costs. The new consortia will leverage on IME’s expertise in MEMS design, fabrication, wafer level packaging process, as well as silicon photonics packaging modules and processes.

The proliferation of the Internet of Things (IoT) is driving the rapid growth of diversified technologies which are key enablers in major application domains such as smart phones, tablets, wearable technology; and network infrastructures that support wireless communications.

However, this trend requires the complex integration of non-digital functions of “More-than-Moore” technologies such as MEMS with digital components into compact systems that have a smaller form factor, higher power efficiency and cost less. The onset of big data, cloud computing and high speed broadband wireless communications also calls for novel use of silicon photonics. Silicon photonics are a critical enabler of high density interconnects and high bandwidth, to meet high optical network requirements cost-effectively.

In the previous Silicon Photonics Packaging Consortium (Phase I), IME and its industry partners developed new capabilities in necessary device library and associated tool boxes to enable the integration of low profile lateral fiber assembly, laser diode and photonics devices. By employing a laser welding technique, the consortium demonstrated a fiber-chip-fiber loss of less than 8 decibel (dB) with less than 1.5dB excess packaging loss. These capabilities enabled integrated silicon photonic circuits to provide higher data rates at lower cost and power consumption. For details, please refer to Annex A.

Building on these achievements, the Silicon Photonics Packaging Consortium (Phase II) will develop a broad spectrum of silicon photonics packaging methodology. The consortium will further develop low loss silicon coupling modules, and provide a series of packaging solutions for laser diode integration. It will also focus on developing accurate thermal models, as well as improve overall module thermal management, reliability and radio-frequency (RF) performance to meet very high data bandwidth demand. All these new developments will lead to a more integrated packaging solution which promises better assembly margins and lower module costs.

IME’s MEMS WLCSP Consortium has also been established to develop a cost- effective integration packaging platform for capped MEMS and complementary metal-oxide semiconductor (CMOS) devices. This platform could be used for any MEMS devices with cavity-capping such as timing devices, inertial sensors, and RF MEMS packaging.

Conventional chip stacking that relies on a through-silicon via (TSV) and wire bonding on substrate method will usually result in high costs and large form factor. The consortium aims to lower production costs and achieve smaller footprint by developing a TSV-free over-mold wafer level packaging solution for MEMS-capped wafer using a novel metal deposited silicon pillar and wire bonding as a through mold interconnects.

The consortium aims to reduce form factor of integrated MEMS and CMOS devices by approximately 20 per cent, and lower manufacturing costs by approximately 15 per cent. These cost-effective packaging solutions are also expected to produce better electrical and reliability performance.

“These consortia partnerships play a critical role in developing innovative solutions to meet emerging market demands. Through these collaborations, we will elevate our capabilities from developing MEMS and silicon photonics devices to developing advanced solutions in heterogeneous integration. The capabilities developed will enable our industry partners to capture new growth opportunities in the IoT space and accelerate market adoption of cost-effective technologies,” said Prof. Dim-Lee Kwong, Executive Director of IME.

“Silicon photonics packaging is a crucial technology for the commercialisation of silicon photonic devices. The partnership generated remarkable results in the Silicon Photonics Packaging Consortium Phase I, and we are pleased to continue with the second phase, which will expand the application of silicon photonics with innovative approaches in terms of LD integration and RF performance. Through this consortium, Fujikura will accelerate the development of compact and cost-effective optical communications for diverse markets,” said Mr. Kenji Nishide, Executive Officer, General Manager, Advanced Technology Laboratory, Fujikura Ltd.

“Currently, it is anticipated that the demand for sensors will grow from billions to trillions by 2050. This demand is being driven by the emergence of sensor based smart systems fusing computing, connectivity and sensing in the context of the Internet of Things. IME’s packaging consortia partnership will allow us to identify and develop MEMS packaging innovative solutions in order to scale up for the Internet of Things,” said Mr. Mo Maghsoudnia, Vice President of Technology and Worldwide Manufacturing of InvenSense.

Mr. Shim Il Kwon, Chief Technology Officer, STATS ChipPAC said, “As the number of MEMS devices in emerging IoT applications continues to grow, semiconductor packaging will have a significant impact on the performance, size and cost targets that can be achieved. By collaborating with partners in the consortia, we will be able to help drive the cost effective integration of MEMS and ASICs in high performance, high yield WLCSP solutions for IoT products.”

Unisem reported it recently shipped its one billionth packaged MEMS device and continues to invest capex in both MEMS assembly equipment and the development of additional factory floor space for this expanding market.

With MEMS device revenues forecasted to grow from 11.9 Billion USD in 2015 to 20 Billion USD by 2021 (Yole), Unisem sees MEMS as a strategic part of their technology and growth plans moving forward. With over 9 years of experience developing MEMS packaging solutions, Unisem estimates that their MEMS unit volumes will grow by over 50 percent over the next 12 months.
Part of Unisem’s growth strategy for MEMS packaging includes the dedication of additional factory floor space. In its factory in Chengdu, China, the company has recently completed the installation and certification of a 1200 sq. meter class 100 clean room to support the assembly needs of MEMS microphones, combination cavity packages, and other devices that either require or benefit from this level of controlled environment.

In addition to the new class 100 clean room, Unisem also has brought in Film Assisted Molding capability to support the expansion of their MEMS molded cavity package offerings. Film Assisted Molding allows Unisem to target both the automotive and industrial MEMS pressure sensor market as well as the growing market for consumer pressure, humidity, temperature, gas sensors and combinations of these. This technology enables Unisem to use leadframe based packages and to mold the sensor device itself leaving only the sensing area exposed in the cavity.

Unisem continues to make MEMS packaging a key component to its growth moving forward with continued investments in technology, equipment and factory floor space to meet their demands as they move into their next billion units of MEMS devices assembled.

Unisem is a global provider of semiconductor assembly and test (OSAT) services for electronics companies.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $26.0 billion for the month of May 2016, an increase of 0.4 percent compared to the previous month’s total of $25.9 billion, but a decrease of 7.7 percent compared to the May 2015 total of $28.1 billion. Month-to-month sales into all regional markets held relatively steady, with China leading the way with 3.1 percent market growth. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“The small uptick in global semiconductor sales in May marked the market’s largest month-to-month growth in six months, but the overall landscape remains somewhat stagnant due to soft demand and unfavorable macroeconomic conditions,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Most regional markets have struggled to gain traction in 2016, with the Americas falling well behind sales posted through the same point last year. Sales of analog products were a bright spot in May, notching both month-to-month and year-to-year increases.”

Regionally, month-to-month sales increased in China (3.1 percent), but slipped slightly in the Americas (-0.1 percent), Europe(-0.8 percent), Asia Pacific/All Other (-0.8 percent), and Japan (-1.8 percent). Year-to-year sales increased marginally in Japan(0.4 percent), but dropped in China (-0.5 percent), Europe (-8.8 percent), Asia Pacific/All Other (-11.5 percent), and the Americas (-15.0 percent).

May 2016

Billions

Month-to-Month Sales                               

Market

Last Month

Current Month

% Change

Americas

4.78

4.78

-0.1%

Europe

2.64

2.62

-0.8%

Japan

2.60

2.55

-1.8%

China

7.80

8.04

3.1%

Asia Pacific/All Other

8.03

7.96

-0.8%

Total

25.85

25.95

0.4%

Year-to-Year Sales                          

Market

Last Year

Current Month

% Change

Americas

5.62

4.78

-15.0%

Europe

2.87

2.62

-8.8%

Japan

2.54

2.55

0.4%

China

8.08

8.04

-0.5%

Asia Pacific/All Other

9.00

7.96

-11.5%

Total

28.11

25.95

-7.7%

Three-Month-Moving Average Sales

Market

Dec/Jan/Feb

Mar/Apr/May

% Change

Americas

5.03

4.78

-5.0%

Europe

2.66

2.62

-1.5%

Japan

2.47

2.55

3.0%

China

8.03

8.04

0.2%

Asia Pacific/All Other

7.83

7.96

1.6%

Total

26.03

25.95

-0.3%