Report: More semi acquisitions in 2010
In other potential semiconductor acquisition scenarios, Danely speculated that Monolithic Power Systems Inc., Intersil Corp. and National Semiconductor Corp. could be strategically attractive to ADI since all three have the majority of their product portfolios in power management, where ADI has a limited presence despite investing heavily in over the past few years.
Danely also speculated that Microchip could make another bid to acquire Atmel Corp. to supplement its microcontroller business. Although Microchip's previous bid to acquire Atmel failed in February 2009, "we believe both companies could revisit the a deal if they can could work out an agreement on how to divest [Atmel's] other lines of business," Danely wrote.
In other predictions, J.P. Morgan expects Xilinx to continue to gain market share at the expense of Altera due to Xilinx' presumed lead at 65nm, Danely wrote. But the firm expects Altera to gain back share in the second half of the year thanks to its lead in the 40nm high density category with the Stratix IV family.
Danely also predicted that semiconductor capital expenditures in 2010 would disappoint bulls who see a big year for equipment suppliers. "While we agree capacity is tight, we believe the problem is mostly back-end-related," Danely said. "We would note back-end capacity additions do not cost as much as front-end capacity additions."
- Dylan McGrath
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