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SEMI, the global industry association for companies that supply manufacturing technology and materials to the world’s chip makers, today reported that worldwide semiconductor manufacturing equipment billings reached US$9.52 billion in the first quarter of 2015. The billings figure is 7 percent higher than the fourth quarter of 2014 and 6 percent lower than the same quarter a year ago. The data is gathered jointly with the Semiconductor Equipment Association of Japan (SEAJ) from over 100 global equipment companies that provide data on a monthly basis.

Worldwide semiconductor equipment bookings were $9.66 billion in the first quarter of 2015. The figure is 2 percent lower than the same quarter a year ago and 3 percent lower than the bookings figure for the fourth quarter of 2014.

The quarterly billings data by region in billions of U.S. dollars, quarter-over-quarter growth and year-over-year rates by region are as follows:

Region

1Q2015

4Q2014

1Q2014

1Q15/4Q14

(Q-o-Q)

1Q15/1Q14

(Y-o-Y)

Korea

2.69

2.09

2.03

29%

33%

Taiwan

1.81

2.03

2.59

-11%

-30%

North America

1.47

1.83

1.85

-19%

-20%

Japan

1.26

1.11

0.96

13%

31%

China

1.17

0.68

1.71

73%

-32%

Europe

0.69

0.58

0.58

19%

19%

Rest of World

0.43

0.59

0.42

-27%

1%

Total

9.52

8.91

10.15

7%

-6%

Source: SEMI/SEAJ June 2015; Note: Figures may not add due to rounding.

Imagination Technologies (IMG.L) and TSMC announce a collaboration to develop a series of advanced IP subsystems for the Internet of Things (IoT) to accelerate time to market and simplify the design process for mutual customers. These IP platforms, complemented by highly optimized reference design flows, bring together the breadth of Imagination’s IP with TSMC’s advanced process technologies from 55nm down to 10nm.

The IoT IP subsystems in development include small, highly-integrated connected solutions for simple sensors which combine an entry-level M-class MIPS CPU with an ultra-low power Ensigma Whisper RPU for low-power Wi-Fi, Bluetooth Smart and 6LowPan, as well as OmniShield multi-domain hardware enforced security, and on-chip RAM and flash. The advanced RF and embedded flash capabilities from TSMC enable Imagination to push the boundaries of IoT integration.

At the higher end, highly-integrated and sophisticated audio and vision sensors will be a key component of future mutual customers’ SoCs for a wide range of IoT applications such as smart surveillance, retail analytics and autonomous vehicles. As part of the collaboration, Imagination and TSMC are working together to realize reference IP subsystems that bring together Imagination’s PowerVR multimedia IP, MIPS CPUs, Ensigma RPUs and OmniShield technology to create highly-integrated, highly-intelligent connected audio and vision sensor IP platforms. These IP subsystems will leverage advanced features such as GPU compute, power-managed CPU clusters and on-chip high-bandwidth communications, demonstrating that high-performance local processing and connectivity can be integrated efficiently and cost-effectively.

Tony King-Smith, EVP marketing, Imagination, says: “We have been working with TSMC for more than two years on advanced IP subsystems for IoT and other connected products. Many of our licensees rely on TSMC to provide them with leading-edge, low-power, high-performance silicon foundry capabilities. Through our ongoing collaboration with TSMC, we are focused on creating meaningful solutions that will help our mutual customers quickly create differentiated, secure and highly integrated products.”

Suk Lee, TSMC senior director, Design Infrastructure Marketing Division, says: “In order to simplify our customers’ designs and shorten their time-to-market, TSMC and our ecosystem partners are transitioning from chip-design enablers to subsystem enablers. We are working closely with Imagination, an established IP leader, as part of our new IoT Subsystem Enablement initiative to help companies get their IoT and connected products to market more quickly and easily.”

CEA-Leti announced today during the Design Automation Conference that seven partners have joined its new FD-SOI IC development program, Silicon Impulse, launched to provide a comprehensive IC technology platform that offers IC design, advanced intellectual property, emulator and test services along with industrial multi-project wafer (MPW) shuttles.

The collaborative design platform for advanced processes includes a network of design services and facilities focused on accelerating development of products for today’s and tomorrow’s devices that require low-power use. These include energy-efficient computing systems, Ultra-Low-Power (ULP) Internet of Things (IoT) devices and robust and reliable applications in harsh environments. The platform leverages the competencies and expertise of the CEA-Leti and CEA-List institutes and Leti’s industrial partners, which comprise a wide spectrum of technical and application knowledge.

Silicon Impulse partners are major industrial players in the semiconductor ecosystem, world-class research centers and technology providers. Based on this strong foundation, Silicon Impulse will significantly reduce development time and speed industrialization, thus putting innovative companies at the cutting edge of energy-efficient system development and implementation. It will do this through a network of FD-SOI experts and access to a strong industrial supply chain.

Silicon Impulse partners:

CEA-Leti (coordinator)

CEA-List

STMicroelectronics

Dolphin Integration

CMP

Mentor Graphics

Cortus

Presto Engineering

 

In addition, CEA-Leti is planning to use its research & development license from ARM to demonstrate various energy-efficient processor implementations in FD-SOI for its IoT development platform. The FD-SOI ecosystem also includes Synopsys, with its rich portfolio of proven DesignWare IP products and EDA tools for the FD-SOI design community. Silicon Impulse is in discussion with Synopsys to join the program in order to further extend the program’s reach.

Launched by Leti in 2015, Silicon Impulse is designed to help innovative companies deal with the challenge of switching to new technologies and markets by augmenting both their knowledge of the supply chain and their skills to master the entire design process from ideas to products. To that end, Silicon Impulse will provide technical expertise, knowhow and access to advanced industrial, energy-efficient solutions to get innovators up to speed on the ecosystem of energy-efficient products by facilitating access to FD-SOI technology and manufacturing facilities.

“Leti has always concentrated on research that helps our partners adopt technology to become more competitive in their markets. Now with Silicon Impulse we provide a new service in collaboration with our industrial partners to help companies evaluate, design, prototype and launch new products,” said Marie-Noëlle Semeria, CEO of Leti. “From that foundation, Silicon Impulse will leverage the existing ecosystem to bring the full value chain from research, design solutions and industrialization services to high value-added products. This combination will concentrate through a single entry point all the necessary expertise and competencies to provide innovative companies from any sector with a one-stop-shop opportunity to build leading-edge, energy-efficient systems.”

As electronic devices become increasingly integrated into everyday activities, designing for energy efficiency becomes more important than ever for all mainstream sectors of industry. Embedded systems and particularly the IoT are key enablers in the market, and new entrants (startups, SMEs, large companies) drive innovation. By enabling integration of advanced processes – 28nm FD-SOI technology today – into IoT design and helping companies develop innovative products more rapidly, Silicon Impulse will foster leading-edge technologies and facilitate their adoption for manufacturing.

With the program’s flexible format, Silicon Impulse’s involvement can be limited to architectural consulting or extended to developing and delivering the whole system or anything in between. It can help innovators with their projects from concept through production hand-off. Companies can receive architectural advice and have their products shaped from a very high level, including a feasibility study and recommendations on how to implement the system. Leti and its partners also can provide unique IP and/or technology components such as foundation IP or more complex system level IP blocks, RF, NVM, N/MEMS, 3D components and any other advanced technology to shape a unique and advanced, yet manufacturable, product. At another level, Leti and List could provide embedded software to complete the whole product.

One key goal of the Silicon Impulse platform is to provide and ease silicon access. MPW shuttles are provided to open the doors to a wider set of users and projects. The goal is to enable innovators to test their ideas, especially mixed-signal, analog or RF technologies or any new IP that would require silicon validation in FD-SOI. This also provides an affordable platform for startups and other small companies to build their prototypes and run small volumes until they receive financing and/or demonstrate market traction to build their own mask set. The first 28nm FD-SOI MPW is planned for February 2016 to be processed at STMicroelectronics’ site in Crolles, which is near Grenoble.

The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors reached $27.6 billion for the month of April 2015, 4.8 percent higher than the April 2014 total of $26.3 billion and 0.4 percent lower than last month’s total of $27.7 billion. The Americas market posted double-digit growth compared to last year, leading all regions. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Additionally, a new WSTS industry forecast projects steady market growth for the next three years.

“Year-to-year semiconductor sales increased for the 24th straight month in April, thanks largely to continued growth in the Americas and Asia Pacific regional markets,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The global industry has posted higher sales through April than at the same point in 2014, and we expect continued growth for the rest of 2015 and beyond.”

Regionally, year-to-year sales increased in the Americas (12.2 percent), China (9.9 percent), and Asia Pacific/All Other (5.2 percent), while sales decreased compared with last year in Europe (-5.6 percent) and Japan (-10.7 percent). Compared with last month, sales were up in the Asia Pacific/All Other (2.3 percent) category, but down in Japan (-0.2 percent), China (-0.7 percent), Europe (-2.3 percent), and the Americas (-3.4 percent).

Additionally, SIA today endorsed the WSTS Spring 2015 global semiconductor sales forecast, which projects the industry’s worldwide sales will reach $347.2 billion in 2015, a 3.4 percent increase from the 2014 sales total. WSTS projects year-to-year increases for 2015 in Asia Pacific (7.0 percent) and the Americas (3.7 percent), with decreases projected for Europe (-3.6 percent) and Japan (-9.5 percent).

Beyond 2015, the industry is expected to grow at a modest pace across all regions. WSTS forecasts 3.4 percent growth globally for 2016 ($358.9 billion in total sales) and 3.0 percent growth for 2017 ($369.6 billion). WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.

April 2015
Billions
Month-to-Month Sales
Market Last Month Current Month % Change
Americas 5.81 5.61 -3.4%
Europe 2.96 2.89 -2.3%
Japan 2.54 2.54 -0.2%
China 7.83 7.78 -0.7%
Asia Pacific/All Other 8.58 8.78 2.3%
Total 27.72 27.60 -0.4%
Year-to-Year Sales
Market Last Year Current Month % Change
Americas 5.00 5.61 12.2%
Europe 3.06 2.89 -5.6%
Japan 2.84 2.54 -10.7%
China 7.08 7.78 9.9%
Asia Pacific/All Other 8.35 8.78 5.2%
Total 26.34 27.60 4.8%
Three-Month-Moving Average Sales
Market Nov/Dec/Jan Feb/Mar/Apr % Change
Americas 6.51 5.61 -13.8%
Europe 2.95 2.89 -2.0%
Japan 2.62 2.54 -3.0%
China 8.07 7.78 -3.6%
Asia Pacific/All Other 8.40 8.78 4.5%
Total 28.54 27.60 -3.3%

Merger activity in the semiconductor industry moved to a new level with the announcement of the agreement for Avago Technologies to acquire Broadcom, according to IHS Inc. (NYSE: IHS), a global source of critical information and insight. The deal, which is valued at $37 billion in cash and stock, will create a new company valued at $77 billion.

“This is the latest and, by far the largest, merger in the semiconductor industry, as major players continue to move in an aggressive way to establish position and profitability in key segments of the industry,” said Dale Ford, vice president and chief analyst for IHS Technology. “Investors have responded favorably to the announcement, with promised bottom-line benefits derived from realized cost savings.”

The combined revenues of the two companies in 2014 exceeds $14 billion, making the newly merged semiconductor company the sixth-largest globally, according to final annual semiconductor market shares. More significantly, the combination of the two companies creates the third-largest semiconductor supplier, trailing only Intel and Qualcomm, if memory integrated-circuit (IC) revenues are excluded. “The complementary product portfolios of the two companies move them into a powerful position, in both the communications IC market and the storage IC market,” Ford said.

Quadrupling in size in two years

This latest move from Avago Technologies has formed a company with revenues four times greater than in 2013. The two biggest recent mergers by Avago Technologies were the acquisition of LSI in 2014 and this new acquisition of Broadcom. The mergers increase the company’s strength in the communications and storage categories. Outside of these two areas, Broadcom has a much smaller presence in consumer electronics and industrial electronics and almost no revenue from other data processing and automotive electronics.

Communications focus 

The newly merged Avago-Broadcom will dominate the market, commanding 40 percent of the wired communications IC market, excluding memory.  Revenues for this category in 2014 were more than five times larger than the next largest supplier, Intel.

The merged company will boost its share of the wireless communications IC market to nearly 8 percent, ranking fourth behind Qualcomm, Samsung Electronics and MediaTek. With an overall market share of 14 percent for all communications ICs, the company ranks second, trailing only Qualcomm and ahead of Samsung Electronics.

The strength of the merged Avago/Broadcom in the wired communications market positions it to benefit from the strong projected market growth. The five-year compound annual growth rate (CAGR) for wired communications is 7 percent, leading all other market segments. On the other hand, semiconductors used in wireless communications products is projected to go through a period of weak growth at only 2 percent CAGR over the next five years. “The size of the combined company could give it a strong position to increase its market share over this time,” Ford said.

Cost savings rolling to the bottom line

The companies predict $750 million in annual cost synergies in 18 months. A quick look at the distribution of their revenues shows that 66 percent of Avago Technologies’ revenue comes from products shipped to the Asia-Pacific (APAC) region, for use in electronics production. Broadcom derived 93 percent of its revenues from APAC shipments of its ICs. “The alignment of the supply chain between the two companies will facilitate the projected savings,” Ford said.

GLOBALFOUNDRIES, a provider of advanced semiconductor manufacturing technology, today announced it has reached a critical milestone in providing a design infrastructure for its 14-nanometer (nm) FinFET process technology.

Together with key ecosystem partners Cadence Design Systems, Mentor Graphics, and Synopsys, GLOBALFOUNDRIES has developed new digital design flows for register-transfer level (RTL) to graphic design database system (GDS) implementation. Integrated with a technology-proven process design kit (PDK) and early-access standard cell libraries, the flows create a digital design “starter kit” that provides designers with a built-in test case for out-of-the-box physical implementation testing and analysis of performance, power and area.

“GLOBALFOUNDRIES is committed to providing our customers with advanced technology platforms that include the comprehensive design infrastructure required to optimize design productivity and cycle time,” said Rick Mahoney, senior vice president of design enablement at GLOBALFOUNDRIES. “To ensure our design ecosystem delivers the highest quality experience with our 14nm FinFET technology, GLOBALFOUNDRIES has collaborated with our EDA partners to complement our in-house global design capabilities and accelerate time-to-volume of designs on complex technologies like 14nm FinFET.”

GLOBALFOUNDRIES’ digital design flows have been optimized to solve the challenges associated with the critical design rules of the 14nm technology node and includes newly introduced features such as implant-aware placement and double-patterning aware routing, In-Design DRC™ fixing and yield improvement, local/random variability aware timing, 3D FinFET extraction, and color-aware LVS/DRC sign-off.

The Synopsys-based Design Enablement Starter Kit leverages broad capabilities of its Galaxy Design Platform to deliver signed-off GLOBALFOUNDRIES’ 14LPP FinFET designs with optimized performance, power and area. Synopsys’ Design Compiler Graphical synthesis, coupled with its Formality equivalence checking solution, streamlines the flow by providing physical guidance and results that closely correlate with physical implementation. For FinFET implementation, Synopsys’ IC Compiler, IC Compiler II and IC Validator solutions provide implant- and double-patterning-aware placement and routing with In-Design color-aware physical verification. Synopsys’ StarRC extraction provides double-patterning support, with modeling for color-aware and 3-D extraction essential for 14nm designs. In addition, the industry-standard Synopsys PrimeTime sign-off solution for accurate delay calculation, timing analysis and advanced waveform propagation accurately accounts for FinFET impacts such as ultra-low voltage, increased Miller effect and resistivity, and process variation.

To enable customers to achieve the benefits of GLOBALFOUNDRIES’ 14LPP node at the design level, GLOBALFOUNDRIES and Cadence have worked together to create a digital flow for a complete RTL-to-GDSII FinFET solution. The digital flow integrates and optimizes Cadence’s front-end, back-end, physical verification, and DFM solutions for 14LPP technology. For front-end design, Cadence’s RTL Compiler synthesis flow is fine-tuned with the 14LPP library. For physical implementation, both Encounter Digital Implementation System (EDI) and Innovus Implementation System provide color-aware double-patterning technology for correct-by-construction placement and routing, and customized settings for the 14LPP design rules and library to optimize power, performance and area (PPA). In-design PVS DRC fixing and in-design litho hot-spot fixing are both available to designers to reduce design iterations and ease design closure. For signoff, the flow features fully integrated Quantus QRC Parasitic Extraction and Tempus Timing Signoff solutions. Integration within both EDI and Innovus allows Quantus and Tempus to bring advanced process modeling earlier in the P&R flow for better timing convergence and time-to-tapeout. Encounter Conformal Equivalence Checker is embedded in multiple stages in the implementation flow. Voltus power and EMIR analysis, standalone Physical Verification System physical verification and Litho Physical Analyzer litho hot-spot check are also embedded in the reference flow. The reference flow provides a guided approach to Cadence’s tool suite and the GLOBALFOUNDRIES 14LPP process to ensure designers hit the maximum PPA envelope with minimum ramp-up time.

As with production tape-outs at prior nodes, the starter kit uses the Mentor Graphics Calibre tool suite for sign-off. In the case of the 14nm starter kit, the Calibre nmDRC and Calibre MultiPatterning products are used for layer decomposition, DRC verification and metal filling, while the Calibre nmLVS product is used for logic verification.

GLOBALFOUNDRIES 14nm FinFET technology is among the most advanced in the industry. The 3D FinFET devices offers the perfect answer to growing market needs, with best-in-class intrinsic performance boost over 28nm technology and a superior power footprint compared to any predecessors. These leading edge devices also provide a true cost advantage due to superior power, performance and area scaling.

GLOBALFOUNDRIES is yielding on its 14nm technology and is on schedule to support multiple product tape-outs and volume ramp in 2015.

Through GLOBALFOUNDRIES’ design partnership ecosystem, designers have access to a broad spectrum of services such as system design, embedded software design, SoC design and verification, and physical implementation. These include design flows for electronic design automation (EDA); silicon-proven IP building blocks, such as libraries; and simulation and verification design kits, i.e., process design kits (PDK) and technology files.

EULITHA, a Swiss startup company offering innovative lithography equipment and services for the nanotechnology, photonics and optoelectronic markets announced today the delivery of its unique PhableR 100 photolithography tool to the MESA + NanoLab of the University of Twente in the Netherlands. The system incorporating Eulitha’s proprietary Displacement Talbot Lithography technology will enable researchers of this interdisciplinary research institute to perform high resolution lithography on different substrates without the severely limiting requirements such as flatness or conductivity one faces with previously available technologies.

MESA+ operates a 1250 m2 NanoLab housing more than 200 items of advanced equipment that can be used to create an unlimited number of applications, and provide a variety of analysis methods and techniques. This makes it possible to realize excellent -interdisciplinary- research in the field of micro and nanotechnology. The cleanroom is available for researchers of the University of Twente, other institutes and for use by industrial partners; from small and medium enterprises to multinationals. Regarding the delivery of the system, Gerard Roelofs, head of MESA+ NanoLab said “We chose the PhableR 100 system due to its capability to print in the deep sub-micron range and versatility to print various patterns through an uncomplicated process. We expect users of our facility coming from many different fields of research to be able to take full advantage of this advanced lithography capability.”

The PhableR 100 system is capable of exposing periodic patterns down to feature sizes below 150nm which rivals high-end i-line steppers. The patented focus-free imaging technology used by the system enables uniform printing on non-flat samples often found in photonic and optoelectronic sectors. Christian Dais, head of photolithography equipment production at Eulitha, said “This order from a prestigious European research institution shows the potential of our innovative technology and equipment in a research setting. We will be collaborating closely with researchers at the NanoLab for the most effective use of our Displacement Talbot Lithography technology. We believe our system will prove to be an excellent alternative to costly steppers or complicated laser interference setups used by many institutions and companies for creating high-resolution periodic structures.” Eulitha had previously announced the sale of one of their lithography systems to a specialty optics production company based in China.

Eulitha AG is a spin-off company of the Paul Scherrer Institute, Switzerland. It specializes in the development of lithographic technologies for applications in optoelectronics and photonics. It produces and markets nano-patterned samples and templates using its own PHABLE tools and state-of-the-art e-beam lithography systems. PHABLE is a registered trade mark and the brand name of Eulitha’s proprietary photolithography platform, which includes exposure tools and wafer patterning services.

IC Insights will release its Update to the 2015 IC Market Drivers report in June. The Update includes revisions to IC market conditions and forecasts for the 2015 2018 automotive, smartphone, personal computer and tablet markets, as well as an update to the market for the Internet of Things. This bulletin reviews IC Insights’ 2015 unit shipment forecast for total personal computing unit shipments.

Five years ago, touchscreen tablets began pouring into the personal computing marketplace, stealing growth from standard personal computers and signaling the start of what has been widely described as the “post-PC” era. Led by Apple’s iPad systems, tablet shipments overtook notebook PCs in 2013, and it appeared as if they would surpass total personal computer units (counting both desktop and portable systems) by 2016. However, that scenario no longer seems possible after tablet growth lost significant momentum in 2014 and then nearly stalled out in the first half of 2015 due to the rise in popularity of large-screen smartphones and the lack of interest in new tablets that do not add enough features or capabilities to convince existing users to buy replacements. Consequently, IC Insights has downgraded its forecast for the overall personal computing market, including much lower growth in tablets and continued weakness in standard PCs (Figure 1).

The updated forecast shows total personal computing unit shipments (desktop PCs, notebook PCs, tablets, and Internet/cloud-computing “thin-client” systems) dropping 1 percent in 2015 to 545 million. In the original forecast of the 2015 IC Market Drivers report (MD15), total personal computing system shipments were projected to rise 8 percent in 2015 to 609 million units, followed by a 10 percent increase in 2016 to 670 million. The revised outlook cuts the compound annual growth rate (CAGR) of personal computing unit shipments to 2.1 percent between 2013 and 2018. Total personal computing system shipments are now projected to reach 578 million in 2018.

Worldwide shipments of keyboard-equipped standard PCs (desktops and notebooks) peaked in 2012 at 345 million, but they are expected to decline by a CAGR of -0.5 percent in the 2013-2018 timeperiod. In the updated outlook, tablets are projected to account for 45 percent of total systems sold in 2018 (259 million units) versus the MD15’s original forecast of 57 percent (423 million) that year. Further into the future, tablets are now expected to account for about half of personal computing system shipments with the remaining units being divided between standard PCs and Internet/cloud-centric platforms.

IC Insights June Report

Figure 1

 

Additional details on the IC market for medical and wearable electronic is included in the 2015 edition of IC Insights’ IC Market Drivers—A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits.  This report examines the largest, existing system opportunities for ICs and evaluates the potential for new applications that are expected to help fuel the market for ICs.

NXP Semiconductors N.V. today announced an agreement that will facilitate the sale of its RF Power business to Jianguang Asset Management Co. Ltd. Under the terms of the agreement JAC Capital will pay $1.8 billion for the business.

The NXP RF Power business is one of the market leaders in high performance RF power amplifiers primarily focused on the cellular base station market, but with potential future growth applications in the areas of industrial lighting, next generation cooking and automotive electronic ignition systems.

“The creation of a new company focused on the RF power amplifier market is a ground breaking transaction for JAC Capital and a great deal for our customers. Although we would have expected a higher valuation in a regular disposal, JAC Capital’s ability to support continued growth and development of the business and its ability to sign and close a transaction rapidly was a key factor in enabling the best outcome for our customers and shareholders, as well as supporting the closure of the merger with Freescale Semiconductor,” said Richard Clemmer, NXP Chief Executive Officer.

“We are happy to reach an agreement to acquire the RF Power business from NXP with its strong team and established technology. We will keep on increasing investment in R&D, manufacturing and customer service of the new company to strengthen its market position. JAC Capital and its shareholders will also help the new company to maintain fast and stable growth through our network of worldwide financial institutions, industrial leaders and JAC Capital’s management team with many years of experience in the semiconductor and telecom industry,” said Brighten Li, Chairman of JAC Capital Investment Evaluation Committee.

Under the agreement, the entire scope of the NXP RF Power business and approximately 2,000 NXP employees who are primarily engaged globally in the RF Power business, including its entire management team, are to be transferred to an independent company incorporated in the Netherlands, which will be 100 percent acquired by JAC Capital upon closing of the transaction. Additionally, all relevant patents and intellectual property associated with the RF Power business will be transferred in the sale, as well the NXP back-end manufacturing operation in the Philippines that is focused on advanced package, test and assembly of RF Power products.

The transaction, including the entry into and the terms of the definitive agreements and the approval of JAC Capital as the acquirer are subject to review and approval by the US Federal Trade Commission, the European Commission, MOFCOM and other agencies in connection with their review of NXP’s proposed acquisition of Freescale Semiconductor, Ltd.

NXP and JAC Capital expect the sale to close within the second half of 2015, pending required regulatory approval and employee representative consultations. NXP anticipates the sale of its RF Power business to be dilutive to earnings on a stand-alone basis in the fourth quarter 2015 and 2016. Proceeds from the sale of the RF Power business will be used to partly fund the previously announced acquisition of Freescale Semiconductor, Ltd.

Avago Technologies Limited and Broadcom Corporation today announced that they have entered into a definitive agreement under which Avago will acquire Broadcom in a cash and stock transaction that values the combined company at $77 billion in enterprise value. Upon completion of the acquisition, the combined company will have the most diversified communications platform in the semiconductor industry, with combined annual revenues of approximately $15 billion.

“Today’s announcement marks the combination of the unparalleled engineering prowess of Broadcom with Avago’s heritage of technology from HP, AT&T, and LSI Logic, in a landmark transaction for the semiconductor industry,” said Hock Tan, President and Chief Executive Officer of Avago.  “The combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors. Avago has established a strong track record of successfully integrating companies onto its platform. Together with Broadcom, we intend to bring the combined company to a level of profitability consistent with Avago’s long-term target model.”

“This transaction benefits all of Broadcom’s key stakeholders,” remarked Scott McGregor, President and Chief Executive Officer of Broadcom.  “Our customers will gain access to a greater breadth of technology and product capability. For our shareholders, the transaction provides both compelling up-front value as well as the opportunity to participate in the future upside of the combined business.”

“When Henry Nicholas and I founded Broadcom, we had a vision of creating the world leader in communications semiconductors. Today’s announcement is a continuation of that vision and we could not think of a better partner for the future than Avago,” stated Dr. Henry Samueli, Co-Founder, Chief Technical Officer and Chairman of the Board of Broadcom.

“The culture that Henry and I created when we founded Broadcom was demanding, execution-oriented, and certainly not guaranteed to mesh with the average technology company,” said Dr. Henry T. Nicholas, Co-Founder and past CEO of Broadcom. “It was, however, a culture that enabled Broadcom to grow exponentially and emerge as the market leader in every major market segment involving broadband communications. In Avago, we have found a culture and a management team that embody the best of the philosophies on which Broadcom was founded, together with a fast-paced, no-nonsense, process-driven business culture that we need to take our combined company to the next level. I am confident that, under the visionary leadership of Hock Tan, the combined company will realize its potential to be the world’s greatest semiconductor company.”

Following completion of the transaction, Mr. Tan, President and Chief Executive Officer of Avago, will continue to serve as President and Chief Executive Officer of the combined company, which will adopt the name Broadcom Limited. Dr. Samueli will join the board of the combined company as will another director from Broadcom. In addition, Dr. Samueli will be appointed Chief Technology Officer of the combined company. Dr. Nicholas will serve in a strategic advisory role within the combined company, reporting to Mr. Tan.

Under the terms of the definitive agreement, Avago will acquire Broadcom for $17 billion in cash consideration and the economic equivalent of approximately 140 million Avago ordinary shares, valued at $20 billion as of May 27, 2015, resulting in Broadcom shareholders owning approximately 32 percent of the combined company. Based on Avago’s closing share price as of May 27, 2015, the implied value of the total transaction consideration for Broadcom is $37 billion.

The transaction has been unanimously approved by the boards of directors of both companies, as well as a special committee of the independent directors of Broadcom. Dr. Samueli and Dr. Nicholas, the founders of Broadcom, have signed support agreements to vote to approve the transaction. Closing of the transaction is expected by the end of the first calendar quarter of 2016, and is subject to regulatory approvals in various jurisdictions, as well as the approval of Avago’s and Broadcom’s shareholders.