Soaring Semi Stocks Prompt M&A Speculation

Soaring semiconductor stock valuations led by Intel with the SOX nudging 640 are leading to speculation that an intensive period of semiconductor M&A is on the way.

The expectation is that US companies with cash balances abroad will use them to reverse into foreign chip companies which will allow them to repatriate the cash and incur lower tax rates than they pay in the USA.

This, of course, was the motivation for the recent, aborted, bid by Pfizer for AstraZeneca.

There's even a name for this kind of deal - 'tax inversion'.

There 's the usual tripe about ARM being a target. Hopeful talk that NXP is a target. Flaky talk that MediaTek is a target.





  1. Yes indeed SilverMan, definitely a better headline

  2. If I squint your headline almost reads “MBA Speculation” – that sounds about right!

  3. I can’t think why anyone would risk buying them at their market cap of $8.6bn when their economic viability depends on state aid which can be arbitrarily withdrawn, Jack, and apart from small acquisitions they don’t have the cash or the share value to support a major acquisition.

  4. Dave, any chance for ST to get M&A or maybe part of it?

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