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One thing seems clear about the semiconductor market: consolidation is showing no signs of slowing down.

On the heels of two additional acquisitions in the space around semiconductors — LAM Research acquiring KLA-Tencor and Western Digital buying SanDisk — rumors have abounded this week that there is more to come.

First, Bloomberg reported that Texas Instruments, the world’s largest maker of analog chips, is in talks to buy Maxim Integrated. TI is said to have competition for Maxim from a competitor in the analog chip space, Analog Devices.

According to the Bloomberg report, Maxim may be holding out for a hefty premium, if it does, in fact, sell.

“When asked on an Oct. 22 conference call about a possible takeover by a larger company such as Texas Instruments, Maxim Chief Financial Officer Bruce Kiddoo said the company is big enough and profitable enough to survive on its own,” Bloomberg reported. “Maxim also has the resources to do its own acquisitions, he said.”

For Texas Instruments’ part, CFO Kevin March weighed in on potential acquisitions on October 21. Bloomberg quotes him as saying: “If we were to look at an acquisition, it would probably be a company that’s going to be broad in catalog, have a diverse customer base, have a large percentage of its revenue coming from industrial and automotive, probably have a very talented R&D team. So we really do focus on the numbers that that acquisition might lead us to.”

Following the Bloomberg story, the Chicago Tribune issued a report saying STMicroelectronics is considering a bid for Fairchild Semiconductor. STMicro is Europe’s biggest chipmaker, and would be looking to “increase growth and shore up its digital products business” with the purchase, according to the report.

For its part, Fairchild, which is one of the oldest chipmakers in the US, has hired Goldman Sachs to help it find a buyer. In recent months the company has conducted talks with ON Semicondor and Infineon Technologies about being purchased, according to the Tribune.

It is still uncertain whether anything will come of either report, but it seems clear that the merger madness in the semiconductor industry is far from over.

To help readers follow this constantly changing situation, Solid State Technology is keeping a running scorecard of all the significant transactions in the semiconductor market here: Historic era of consolidation for chipmakers.

 

Growing Conference Business at Extension Media Brings Experienced Events Producer Onboard

SAN FRANCISCO, October 28, 2015 – Extension Media announced today the addition of Sally L. Bixby as Senior Events Director for Extension Media’s fast-growing conference division. She will be based in the downtown Portland, Oregon office where Extension Media has editorial staff.

Ms. Bixby is an accomplished corporate events producer with nearly 16 years of in-depth experience in operations and marketing, holding senior staff positions in multiple events projects. To date, she has managed more than 450 business conferences in North America alone and produced several internationally as well. She brings to the role a significant track record of increasing event attendance, managing large- and small-scale budgets and driving lead generation for companies such as: AMD, Avnet, Curtiss-Wright, Intel, Kontron, MathWorks and more. Throughout her career, Ms. Bixby has cultivated relationships in the embedded systems, semiconductor and medical electronics industries, as well as academia and several professional organizations, building mutually beneficial and long-term business relationships.

“We are thrilled that Sally is leading the conference operations management team and will also be focusing her energy on growing the conference and exhibition side of our business, adding several events aimed at the embedded and growing IoT market segments as well as the semiconductor manufacturing and design market,” said Vince Ridley, president and founder of Extension Media. “Her professionalism and passion for delivering successful events will benefit both Extension Media and our clients. Sally’s attention to exceeding expected goals make her an ideal fit.”

“I look forward to expanding the conference business at Extension Media, connecting knowledgeable, responsive leaders and influencers,” said Ms. Bixby. “Recent experience creating a successful China-U.S. IoT Summit for a Fortune 100 company – that resulted in 120% of the attendee goal and a 10.5% budget savings – has me looking forward to helping our clients achieve impressive results.”

Prior to joining Extension Media, Ms. Bixby was an independent senior events producer running her own company, EventBelle Productions. In 2014 and 2015, she managed all operations, budgets and the VIP program for The ConFab, the preeminent semiconductor manufacturing conference and networking event for leaders and decision-makers addressing the economics of semiconductor manufacturing.

About Extension Media
Extension Media is a privately held company operating more than 50 B2B magazines, engineers’ guides, email newsletters, web sites and conferences that focus on high-tech industry platforms and emerging technologies such as: chip design, semiconductor and electronics manufacturing, embedded systems, software, architectures and industry standards.

Extension Media produces industry leading events including The ConFab, the Internet of Things Developers Conference (IoT DevCon) and the Multicore Developers Conference (Multicore DevCon), and publishes Embedded Systems Engineering, EECatalog.com, Embedded Intel® Solutions, EmbeddedIntel.com, Chip Design, ChipDesignMag.com, Solid State Technology, Solid-State.com and SemiMD.com.

Extension Media Contacts
Vince Ridley
[email protected]
415-255-0390
Sally L. Bixby
[email protected]
503-705-8651

SAN JOSE, Calif. — Integrated Device Technology, Inc. (IDT) today announced an agreement to acquire privately held ZMDI (Zentrum Mikroelektronik Dresden AG) for total consideration of $310M in cash. The acquisition provides IDT with a highly regarded Automotive & Industrial business, and extends their technology leadership in high performance programmable power devices and timing & signal conditioning.

Automotive & Industrial provides a significant new growth opportunity. IDT gains immediate leverage for new designs in Wireless Charging, Power Management, and Timing & Signal Conditioning. ZMDI’s business is already well established and positioned for growth, and benefits immediately from IDT’s scale and technology.

“This move accelerates progress to our $800M annual revenue goal within our industry benchmark financial performance by over a year,” said Gregory Waters, IDT President & CEO. “IDT’s strategy is unchanged, but our product and technology position is significantly expanded. Our target market segments of Consumer, Communications, and High Performance Computing all benefit from additional product, revenue, and customer relationships that bolster our commitment to outgrow the semiconductor market by at least a factor of two.”

IDT extends their rapidly growing line of programmable power devices, with new high-power products addressing Communications Infrastructure and Data Center applications. This creates a new industry franchise for high performance, scalable power management solutions that cover applications ranging from Wireless Charging to Solid State Drives to Data Centers & 4G/5G basestations.

“We gain an exceptional group of talented people and intellectual property from ZMDI, who join one of the technology industry’s fastest growing companies. With the added benefit of IDT’s cost structure and high volume manufacturing capability, we expect ZMDI revenues to achieve a similar financial model as IDT’s existing business in the first year of combined operations,” Waters added.

ZMDI’s signal conditioning products provide an elegant interface between microcontrollers and analog components, such as sensors. This is extremely complimentary to IDT’s Advanced Timing products, and will enable intelligent systems that are aware of their surroundings, and can adjust system performance, timing, and power management automatically.

“We’re enthusiastic to join with IDT, and create the best positioned product innovation team in the mixed-signal semiconductor industry,” said Thilo von Selchow, President and CEO of ZMDI. “It’s rare to see such a potent combination that not only provides a powerful financial result, but more importantly establish the product and technology teams that will lead the industry in innovative new products and growth for this decade.”

The transaction has been unanimously approved by the board of directors of both companies, with closing expected before calendar end.

A report that resulted from a workshop funded by Semiconductor Research Corporation (SRC) and National Science Foundation (NSF) outlines key factors limiting progress in computing—particularly related to energy consumption—and novel device and architecture research that can overcome these barriers. A summary of the report’s findings can be found at the end of this article; the full report can be accessed here.

The findings and recommendations in the report are in alignment with the nanotechnology-inspired Grand Challenge for Future Computing announced on October 20 by the White House Office of Science and Technology Policy. The Grand Challenge calls for new approaches to computing that will operate with the efficiency of the human brain. It also aligns with the National Strategic Computing Initiative (NSCI) announced by an Executive Order signed by the President on July 29.

Energy efficiency is vital to improving performance at all levels. This includes from devices and transistors to large IT systems, as well from small sensors at the edge of the Internet of Things (IoT) to large data centers in cloud and supercomputing systems.

“Fundamental research on hardware performance, complex system architectures, and new memory/storage technologies can help to discover new ways to achieve energy-efficient computing,” said Jim Kurose, the Assistant Director of the National Science Foundation (NSF) for Computer and Information Science and Engineering (CISE). “Partnerships with industry, including SRC and its member companies, are an important way to speed the adoption of these research findings.”

Performance improvements today are limited by energy inefficiencies that result in overheating and thermal management issues. The electronic circuits in computer chips still operate far from any fundamental limits to energy efficiency, and much of the energy used by today’s computers is expended moving data between memory and the central processor.

At the same time as increases in performance slow, the amount of data being produced is exploding. By 2020, an estimated 44 zettabytes of data (1 zettabyte equals 1 trillion gigabytes) will be created on an annual basis.

“New devices, and new architectures based on those devices, could take computing far beyond the limits of today’s technology. The benefits to society would be enormous,” said Tom Theis, Nanoelectronics Research Initiative (NRI) Executive Director at SRC, the world’s leading university-research consortium for semiconductor technologies.

Inspired by the neural architecture of a macaque brain, this neon swirl is the wiring diagram for a new kind of computer that, by some definitions, may soon be able to think. (Credit: Emmett McQuinn, IBM Research - Almaden)

Inspired by the neural architecture of a macaque brain, this neon swirl is the wiring diagram for a new kind of computer that, by some definitions, may soon be able to think. (Credit: Emmett McQuinn, IBM Research – Almaden)

In order to realize these benefits, a new paradigm for computing is necessary. A workshop held April 14-15, 2015 in Arlington, Va., and funded by SRC and NSF convened experts from industry, academia and government to identify key factors limiting progress and promising new concepts that should be explored. The report being announced today resulted from the workshop discussions and provides a guide to future basic research investments in energy-efficient computing.

The report builds upon an earlier report funded by the Semiconductor Industry Association, SRC and NSF on Rebooting the IT Revolution.

To achieve the Nanotechnology Grand Challenge and the goals of the NSCI, multi-disciplinary fundamental research on materials, devices and architecture is needed. NSF and SRC, both individually and together, have a long history of supporting long-term research in these areas to address such fundamental, high-impact science and engineering challenges.

Report Findings

Broad Conclusions

Research teams should address interdisciplinary research issues essential to the demonstration of new device concepts and associated architectures. Any new device is likely to have characteristics very different from established devices. The interplay between device characteristics and optimum circuit architectures therefore means that circuit and higher level architectures must be co-optimized with any new device. Devices combining digital and analog functions or the functions of logic and memory may lend themselves particularly well to unconventional information processing architectures. For maximum impact, research should focus on devices and architectures which can enable a broad range of useful functions, rather than being dedicated to one function or a few particular functions.

Prospects for New Devices

Many promising research paths remain relatively unexplored. For example, the gating of phase transitions is a potential route to “steep slope” devices that operate at very low voltage. Relevant phase transitions might include metal-insulator transitions, formation of excitonic or other electronic condensates, and various transitions involving structural degrees of freedom. Other promising mechanisms for low-power switching may involve transduction. Magnetoelectric devices, in which an external voltage state is transduced to an internal magnetic state, exemplify the concept. However, transduction need not be limited to magnetoelectric systems.

In addition to energy efficiency, switching speed is an important criterion in choice of materials and device concepts. For example, most nanomagnetic devices switch by magnetic precession, a process which is rather slow in the ferromagnetic systems explored to date. Magnetic precession switching in antiferromagnetic or ferrimagnetic materials could be one or more orders of magnitude faster. Other novel physical systems could be still faster. For example, electronic collective states could, in principle, be switched on sub-picosecond time scales.

More generally, devices based on computational state variables beyond magnetism and charge (or voltage) could open many new possibilities.

Another relatively unexplored path to improved energy efficiency is the implementation of adiabatically switched devices in energy-conserving circuits. In such circuits, the phase of an oscillation or propagating wave may represent digital state; devices and interconnections must together constitute circuits that are non-dissipative. Nanophotonic, plasmonic, spin wave or other lightly damped oscillatory systems might be well-suited for such an approach. Researchers should strive to address the necessary components of a practical engineering solution, including mechanisms for correction of unavoidable phase and amplitude errors.

Networks of coupled non-linear oscillators have been explored for non-Boolean computation in applications such as pattern recognition. Potential technological approaches include nanoelectromechanical, nanophotonic, and nanomagnetic oscillators. Researchers should strive for generality of function and should address the necessary components of a practical engineering solution, including devices, circuits, and architectures that allow reliable operation in the presence of device variability and environmental fluctuations.

Prospects for New Architectures

While appropriate circuits and higher level architectures should be explored and co-developed along with any new device concept, certain novel device concepts may demand greater emphasis on higher-level architecture. For example, hysteretic devices, combining the functions of non-volatile logic and memory, might enhance the performance of established architectures (power gating in microprocessors, reconfiguration of logic in field programmable gate arrays), but perhaps more important, they might play an enabling role in novel architectures (compute in memory, weighting of connections in neuromorphic systems, and more). As a second example, there has been great progress in recent years in the miniaturization and energy efficiency of linear and non-linear photonic devices and compact light emitters. It is possible that these advances will have their greatest impact, not in the ongoing replacement of metal wires by optical connections, but rather in enabling new architectures for computing. Computation “in the network” is one possible direction. In general, device characteristics and architecture appear to be highly entwined in oscillatory or energy-conserving systems. Key device characteristics may be inseparable from the coupling (connections) between devices. For non-Boolean computation, optimum architectures and the range of useful algorithms will depend on these characteristics.

In addition to the examples above, many other areas of architectural research might leverage emerging device concepts to obtain order of magnitude improvements in the energy efficiency of computing. Research topics might include architectures for heterogeneous systems, architectures that minimize data movement, neuromorphic architectures, and new approaches to Stochastic Computing, Approximate Computing, Cognitive Computing and more.

Lam Research Corporation (LRCX) and KLA-Tencor Corporation (KLAC) today announced that they have entered into a definitive agreement for Lam Research to acquire all outstanding KLA-Tencor shares in a cash and stock transaction. The move, unanimously approved by the boards of directors of both companies, will create a combined company with approximately $8.7 billion in pro forma annual revenue.

The combined company expects to realize $250 million in cost savings within 18 to 24 months of closing, and anticipates gaining approximately $600 million in incremental revenue by 2020 through improved differentiation of each company’s products and creation of new capabilities.

“This is just what the doctor ordered,” Srini Sundararajan, Semiconductor and Semicaps Analyst for W.R. Hambrecht + Co./Summit Research, wrote in an analysis of the move. “It removes excessive dependence of LRCX on memory and excessive dependence of KLAC on foundry/logic.”

According to the LRCX press release, “the combination will create unmatched capability in process and process control, delivering optimized results in partnership with its customers by reducing variability and accelerating yield, ultimately helping the semiconductor industry extend Moore’s Law and performance scaling generally.”

“The pairing of Lam Research and KLA-Tencor brings industry leadership in process and process control together, accelerating our capability to address our customers’ most difficult challenges as they scale to meet the market demands of lower power, higher performance, and smaller form factors,” said Martin Anstice, Lam’s president and chief executive officer. “Lam Research and KLA-Tencor’s shared commitment to collaboration and building strong customer trust, along with our respective track records of innovation, product leadership, and operational excellence, position us as a combined company to deliver the higher levels of technology differentiation and speed to solutions that are critical to our customers’ long-term success.”

“I strongly believe that this transaction represents a great outcome for all of KLA-Tencor’s key stakeholders,” said Rick Wallace, president and chief executive officer of KLA-Tencor. “The combined company will be uniquely positioned to work collaboratively with our customers to help them meet the challenges of FinFET, multi-patterning and 3D NAND development.  Given the complementary nature of the two companies’ product offerings and technologies as well as the lack of product overlap, the combination will create an industry leader with greater opportunities for our respective employees for professional development and growth. Lastly, this transaction will benefit our stockholders who will receive compelling upfront value, in addition to the opportunity to own a meaningful stake in an industry leader and participate in the upside potential created by the combination.”

According to the press release, the transaction is expected to close in mid-calendar year 2016, pending customary regulatory approvals. The transaction is also subject to customary closing conditions, including the adoption by KLA-Tencor’s stockholders of the merger agreement and the approval by Lam Research’s stockholders of the issuance of shares in the transaction. Given their complementary product lines and the industry benefits the transaction will enable, the companies believe that they will be able to obtain the requisite regulatory approvals on a timely basis.

Analyst Sundararajan agrees: “We expect minimal opposition to this deal from the various jurisdictions, rather easily handled.”

However, Robert Maire of Semiconductor Advisors thinks approval could potentially be more difficult. “We think this is going to be the obvious biggest issue after the failed AMAT & TEL merger.  We think there will likely be opposition in the semi industry but probably less so than we heard the screaming related to AMAT/TEL,” he wrote. “While maybe not overjoyed, the combination makes a lot of sense for customers and feels a lot less negative than the failed AMAT/TEL.”

According to the press release, some of the benefits the combined company expects to see are:

  • Creates Premier Semiconductor Capital Equipment Company: Strengthened platform for continued outperformance, combining Lam’s best-in-class capabilities in deposition, etch, and clean with KLA-Tencor’s leadership in inspection and metrology
  • Accelerated Innovation: Increased opportunity and capability to address customers’ escalating technical and economic challenges
  • Broadened Market Relevance: Comprehensive and complementary presence across market segments provides diversity, scale and value creating innovation opportunities
  • Significant Cost and Revenue Synergies: Approximately $250 million in expected annual on-going pre-tax cost synergies within 18-24 months of closing the transaction, and $600 million in annual revenue synergies by 2020
  • Accretive Transaction: Increased non-GAAP EPS and free cash flow per share during the first 12 months post-closing
  • Strong Cash Flow: Complementary memory and logic customer base, operational strength, and meaningful installed base revenues strengthen cash generation capability

According to Sundararajan, the move could have negative impacts for some other companies in the industry. “This deal is quite negative for Applied Materials (AMAT) and Hermes Microvision and perhaps for ASML also,” he wrote. “In the case of AMAT, their process diagnostics and control division being based in Israel does not allow of meshing of capabilities, and product synergies really don’t exist.  In the case of Hermes Microvision, since etch is the pre-dominant user of e-beam inspection due to testing of contacts, a combination of KLAC and LRCX with both e-beam and etch capabilities can be lethal.”

Maire also foresees difficulties for competitors: “The combined LAM and KLA creates a powerhouse in the semicap industry, which is looking a lot more like a duopoly.”

Lam president and CEO Anstice concluded, “We have tremendous respect for the company KLA-Tencor employees have built over nearly 40 years — their culture, technology, and operating practices. I have no doubt that our combined values, focus on the customer, and complementary technologies will create a trusted leader in our industry, capable of creating significant opportunity for profitable growth and in turn delivering tremendous value to all of our stakeholders. This is the right time for the right combination in our industry.”

Western Digital Corporation and SanDisk Corporation today announced that they have entered into a definitive agreement under which Western Digital will acquire all of the outstanding shares of SanDisk for a combination of cash and stock. The offer values SanDisk common stock at $86.50 per share or a total equity value of approximately $19 billion, using a five-day volume weighted average price ending on October 20, 2015 of $79.60 per share of Western Digital common stock. If the previously announced investment in Western Digital by Unisplendour Corporation Limited closes prior to this acquisition, Western Digital will pay $85.10 per share in cash and 0.0176 shares of Western Digital common stock per share of SanDisk common stock; and if the Unisplendour transaction has not closed or has been terminated, $67.50 in cash and 0.2387 shares of Western Digital common stock per share of SanDisk common stock. The transaction has been approved by the boards of directors of both companies.

The combination is the next step in the transformation of Western Digital into a storage solutions company with global scale, extensive product and technology assets, and deep expertise in non-volatile memory (NVM). With this transaction, Western Digital will double its addressable market and expand its participation in higher-growth segments. SanDisk brings a 27-year history of innovation and expertise in NVM, systems solutions and manufacturing. The combination also enables Western Digital to vertically integrate into NAND, securing long-term access to solid state technology at lower cost.

The proposed combination creates significant value for both SanDisk and Western Digital shareholders. Western Digital brings a successful track record of M&A with a number of acquisitions over the last several years helping to fuel innovation, create value and strongly position the company to capture higher-growth opportunities. In addition, Western Digital’s operational excellence, coupled with the recently announced decision by China’s Ministry of Commerce (MOFCOM) allowing Western Digital to integrate substantial portions of its WD and HGST businesses, is expected to generate additional cost synergies.

“This transformational acquisition aligns with our long-term strategy to be an innovative leader in the storage industry by providing compelling, high-quality products with leading technology,” said Steve Milligan, chief executive officer, Western Digital. “The combined company will be ideally positioned to capture the growth opportunities created by the rapidly evolving storage industry. I’m excited to welcome the SanDisk team as we look to create additional value for all of our stakeholders, including our customers, shareholders and employees.”

“Western Digital is globally recognized as a leading provider of storage solutions and has a 45-year legacy of developing and manufacturing cutting-edge solutions, making the company the ideal strategic partner for SanDisk,” said Sanjay Mehrotra, president and chief executive officer, SanDisk. “Importantly, this combination also creates an even stronger partner for our customers. Joining forces with Western Digital will enable the combined company to offer the broadest portfolio of industry-leading, innovative storage solutions to customers across a wide range of markets and applications.”

Western Digital and SanDisk’s complementary product lines, including hard disk drives (“HDDs”), solid-state drives (“SSDs”), cloud datacenter storage solutions and flash storage solutions, will provide the foundation for a broader set of products and technologies from consumer to datacenter. Both companies have strong R&D and engineering capabilities and a rich base of fundamental technologies with over 15,000 combined patents issued or pending worldwide.

Toshiba has been a long-term strategic partner to SanDisk for 15 years. The joint venture (JV) with Toshiba will be ongoing, enabling vertical integration through a technology partnership driven by deep collaboration across design and process capabilities. The JV provides stable NAND supply at scale through a time-tested business model and extends across NVM technologies such as 3D NAND.

Steve Milligan will continue to serve as chief executive officer of the combined company, and the company will remain headquartered in Irvine, California. Upon closing, Sanjay Mehrotra is expected to join the Western Digital Board of Directors.

Led by a seasoned management team, Western Digital has a strong track record of integrating acquisitions to create value. The company expects to achieve full annual run-rate synergies of $500 million within 18 months post-closing. The transaction is expected to be EPS accretive on a non-GAAP basis within 12 months of the transaction close. Pending the closing of the transaction, Western Digital expects to continue paying its quarterly dividend and plans to suspend its share buyback program.

The transaction will be financed by a mix of cash, new debt financing and Western Digital stock.  In connection with the transaction, Western Digital expects to enter into new debt facilities totaling $18.4 billion, including a $1.0 billion revolving credit facility. The proceeds from the new debt facilities are expected to be used to pay part of the purchase price, refinance existing debt of Western Digital and SanDisk and pay transaction related fees and expenses. If SanDisk’s cash balance falls below certain thresholds at the time of transaction close, the merger agreement provides for an adjustment to the mix of cash and stock consideration.

The transaction is subject to approval by SanDisk shareholders and, in the event that the Unisplendor transaction does not close, Western Digital shareholders, receipt of regulatory approvals and other customary closing conditions. The transaction is expected to close in the third calendar quarter of 2016.

Slideshow: 2015 IEDM Preview


October 20, 2015
The 2015 IEDM Conference will be held in Washington DC.

The 2015 IEDM will be held in Washington DC.

This year marks the 61st annual IEEE International Electron Devices Meeting (IEDM). It is arguably the world’s pre-eminent forum for reporting technological breakthroughs in semiconductor and electronic device technology, design, manufacturing, physics, and modeling. The conference focuses not only on devices in silicon, compound and organic semiconductors, but also in emerging material systems.

As usual, Solid State Technology will be reporting insights from bloggers and industry partners during the conference. This slideshow provides an advance look at some of the most newsworthy topics and papers that will be presented at this year’s meeting, which will be held at the Washington, D.C. Hilton from December 7-9, 2015.

Click here to start the slideshow

Check back here for more articles and information about IEDM 2015:

Helpful conference links:

By Tom Abate, Stanford Engineering

Stanford chemical engineering Professor Zhenan Bao and her team have created a skin-like material that can tell the difference between a soft touch and a firm handshake. The device on the "golden fingertip" is the skin-like sensor developed by Stanford engineers.

Stanford chemical engineering Professor Zhenan Bao and her team have created a skin-like material that can tell the difference between a soft touch and a firm handshake. The device on the “golden fingertip” is the skin-like sensor developed by Stanford engineers. (Photo: Bao Lab, Stanford)

Stanford engineers have created a plastic “skin” that can detect how hard it is being pressed and generate an electric signal to deliver this sensory input directly to a living brain cell.

Zhenan Bao, a professor of chemical engineering at Stanford, has spent a decade trying to develop a material that mimics skin’s ability to flex and heal, while also serving as the sensor net that sends touch, temperature and pain signals to the brain. Ultimately she wants to create a flexible electronic fabric embedded with sensors that could cover a prosthetic limb and replicate some of skin’s sensory functions.

Bao’s work, reported today in Science, takes another step toward her goal by replicating one aspect of touch, the sensory mechanism that enables us to distinguish the pressure difference between a limp handshake and a firm grip.

“This is the first time a flexible, skin-like material has been able to detect pressure and also transmit a signal to a component of the nervous system,” said Bao, who led the 17-person research team responsible for the achievement.

Benjamin Tee, a recent doctoral graduate in electrical engineering; Alex Chortos, a doctoral candidate in materials science and engineering; and Andre Berndt, a postdoctoral scholar in bioengineering, were the lead authors on the Science paper.

Digitizing Touch

Stanford sensor closeup

A closeup of the sensor. (Photo: Bao Lab, Stanford)

The heart of the technique is a two-ply plastic construct: the top layer creates a sensing mechanism and the bottom layer acts as the circuit to transport electrical signals and translate them into biochemical stimuli compatible with nerve cells. The top layer in the new work featured a sensor that can detect pressure over the same range as human skin, from a light finger tap to a firm handshake.

Five years ago, Bao’s team members first described how to use plastics and rubbers as pressure sensors by measuring the natural springiness of their molecular structures. They then increased this natural pressure sensitivity by indenting a waffle pattern into the thin plastic, which further compresses the plastic’s molecular springs.

To exploit this pressure-sensing capability electronically, the team scattered billions of carbon nanotubes through the waffled plastic. Putting pressure on the plastic squeezes the nanotubes closer together and enables them to conduct electricity.

This allowed the plastic sensor to mimic human skin, which transmits pressure information to the brain as short pulses of electricity, similar to Morse code. Increasing pressure on the waffled nanotubes squeezes them even closer together, allowing more electricity to flow through the sensor, and those varied impulses are sent as short pulses to the sensing mechanism. Remove pressure, and the flow of pulses relaxes, indicating light touch. Remove all pressure and the pulses cease entirely.

The team then hooked this pressure-sensing mechanism to the second ply of their artificial skin, a flexible electronic circuit that could carry pulses of electricity to nerve cells.

Importing the Signal

Bao’s team has been developing flexible electronics that can bend without breaking. For this project, team members worked with researchers from PARC, a Xerox company, which has a technology that uses an inkjet printer to deposit flexible circuits onto plastic. Covering a large surface is important to making artificial skin practical, and the PARC collaboration offered that prospect.

Finally the team had to prove that the electronic signal could be recognized by a biological neuron. It did this by adapting a technique developed by Karl Deisseroth, a fellow professor of bioengineering at Stanford who pioneered a field that combines genetics and optics, called optogenetics. Researchers bioengineer cells to make them sensitive to specific frequencies of light, then use light pulses to switch cells, or the processes being carried on inside them, on and off.

For this experiment the team members engineered a line of neurons to simulate a portion of the human nervous system. They translated the electronic pressure signals from the artificial skin into light pulses, which activated the neurons, proving that the artificial skin could generate a sensory output compatible with nerve cells.

Optogenetics was only used as an experimental proof of concept, Bao said, and other methods of stimulating nerves are likely to be used in real prosthetic devices. Bao’s team has already worked with Bianxiao Cui, an associate professor of chemistry at Stanford, to show that direct stimulation of neurons with electrical pulses is possible.

Bao’s team envisions developing different sensors to replicate, for instance, the ability to distinguish corduroy versus silk, or a cold glass of water from a hot cup of coffee. This will take time. There are six types of biological sensing mechanisms in the human hand, and the experiment described in Science reports success in just one of them.

But the current two-ply approach means the team can add sensations as it develops new mechanisms. And the inkjet printing fabrication process suggests how a network of sensors could be deposited over a flexible layer and folded over a prosthetic hand.

“We have a lot of work to take this from experimental to practical applications,” Bao said. “But after spending many years in this work, I now see a clear path where we can take our artificial skin.”

We are in a historic era for consolidation among semiconductor manufacturers. Included in the announced mergers and acquisitions this year alone are:

Semiconductor Market Consolidation. (Slide from: Dr. Rutger Wijburg, Sr. Vice President and General Manager, GLOBALFOUNDRIES; keynote at Semicon Europa

Semiconductor Market Consolidation. (Slide from: Dr. Rutger Wijburg, Sr. Vice President and General Manager, GLOBALFOUNDRIES; keynote at Semicon Europa)

According to a recent article in the Wall Street Journal by Don Clark, the reasons for this market consolidation are relatively new to the industry: slowing growth and rising costs.

In the past, chip makers used acquisitions to obtain new technology. But, Clark writes that a different reason is becoming more prominent: “Many recent deals resemble consolidation waves in older industries, motivated mainly by trimming costs in areas like manufacturing, sales and engineering.”

For example, Avago projects that it can gain $750 million in annual savings starting in 2017 after it integrates Broadcom, according to Clark.

The article cites figures from Dealogic stating that the industry has seen $100.6 Billion in mergers and acquisitions in 2015 so far, compared to $37.7 Billion for all of 2014.

And that total is poised to go higher.

“Bloomberg reported last week that four chip companies — Analog Devices Inc., Maxim Integrated Products Inc., SanDisk Corp. and Fairchild Semiconductor International Inc. — were in talks concerning different deal options… ‘It’s buy or be sold,’ summed up Alex Lidow, chief executive of Efficient Power Conversion Corp., a startup he co-founded in 2007 after 30 years leading chip maker International Rectifier Corp,” Clark writes.

Microsemi Corporation a provider of semiconductor solutions differentiated by power, security, reliability, and performance, today announced that it submitted an offer to acquire PMC-Sierra, Inc in a cash and stock transaction. Based on the closing stock price of Microsemi on Oct. 16, 2015, the transaction is valued at $11.50 per PMC share, representing a premium of approximately 50 percent to the closing price on Oct. 5, 2015, the last trading day prior to the announcement of PMC’s proposed acquisition with Skyworks Solutions, Inc.

Microsemi believes its cash and stock proposal would provide PMC shareholders with a substantial premium and immediate cash value, as well as the opportunity to participate in the significant upside potential of a global analog and mixed-signal leader with a highly diversified platform for growth and profitability. Microsemi believes its proposal constitutes a “Superior Proposal” under the terms of PMC’s merger agreement with Skyworks.

Under the terms of Microsemi’s proposal, PMC shareholders will receive $8.75 in cash and 0.0736 of a share of Microsemi common stock for each share of PMC common stock held at the close of the transaction. The implied total transaction value is approximately $2.4 billion and the implied enterprise value is $2.2 billion, net of PMC’s net cash balance as of June 27, 2015.

“Based on extensive discussions with PMC over the past 18 months and comprehensive analysis, we believe this transaction offers compelling strategic and financial benefits for the shareholders of both Microsemi and PMC,” said James J. Peterson, Microsemi’s chairman and CEO. “This acquisition will provide Microsemi with a leading position in high performance and scalable storage solutions targeted for data center and cloud applications, while also adding a complementary portfolio of high-value communications products. Microsemi has a strong track record of integrating acquisitions and driving profitability, and we will benefit from increased scale, industry-leading margins, diversified market exposure, consolidated infrastructure and substantial cost savings in a combination with PMC.”

The proposal was conveyed in an offer letter to PMC’s board of directors on Oct. 19, 2015, together with a copy of a merger agreement, which is on substantially the same terms as the Skyworks merger agreement that Microsemi is prepared to sign. Microsemi is also prepared to amend the transaction structure to an “exchange offer” paving the way for a closing as early as late December 2015, assuming swift action by PMC’s board. Microsemi’s proposal is not subject to any financing contingency and has been approved by Microsemi’s board of directors.

The transaction is expected to be immediately accretive to Microsemi’s non-GAAP EPS and free cash flow. Microsemi anticipates achieving more than $100 million in annual cost synergies with greater than $75 million of those to be realized in the first full quarter of combined operations. Microsemi currently estimates more than $0.60 of non-GAAP EPS accretion in the first full year after closing the transaction.

Microsemi intends to fund the transaction and repay its existing credit facility with existing cash, $2.7 billion in new transaction debt and $0.6 billion in Microsemi common stock. Shareholders of Microsemi and PMC will own approximately 85 percent and 15 percent, respectively, of the combined entity post completion of the transaction.

The transaction with Microsemi will only be subject to domestic regulatory approvals (as opposed to approvals by foreign government entities including China, which is required under the Skyworks merger agreement and likely to result in additional uncertainty and delays) and customary closing conditions, as well as the approval of PMC’s shareholders.