Chipmaker MaxLinear to buy Taiwan’s Silicon Motion for about $4 bln

Industry:    2 weeks ago

Chipmaker MaxLinear Inc said on Thursday it will buy Taiwan-based Silicon Motion Technology Corp for nearly $4 billion in a cash-and-stock deal, creating one of the largest fabless semiconductor suppliers in the world.

The combination will allow the merged entity to expand into enterprise, consumer and many other growth markets with more than $2 billion in combined revenue annually and total available market opportunity of $15 billion, the companies said.

U.S.-listed shares of Silicon Motion, which makes NAND flash controllers, rose 19.4% in early trade to a record high, while MaxLinear’s stock fell about 17%.

According to media reports, Qualcomm Inc rival MediaTek Inc was also interested in buying Silicon Motion, which Bloomberg News reported in April was working with advisors and holding talks with potential suitors amid takeover interest.