Applied Materials Inc (AMAT.O), the world’s biggest supplier of chipmaking equipment, will buy Japanese semiconductor device maker Kokusai Electric for about 250 billion yen ($2.31 billion), the Nikkei reported on Monday.
The U.S. firm will buy all Kokusai Electric shares within this year, the financial daily newspaper reported. The deal will be officially announced later this week, it said.
The move comes amid rising competition for providing cutting-edge semiconductors for use in fifth-generation (5G) telecommunications equipment.
The deal would push the U.S. company’s share of the chipmaking equipment market to above 20% from 18%, according to the Nikkei.
Reuters could not immediately reach Kokusai Electric for comment. Applied Materials did not immediately respond to a Reuters email sent outside of regular U.S. business hours.
Source: Reuters.com