Semiconductor M&A: This May be the Biggest Deal of 2020

July 13, 2020, By fierce_investor,

Semiconductor company Analog Devices (ADI) is reportedly in talks to acquire Maxim Integrated (MXIM) for about $20 billion, says The Wall Street Journal, which added this could be the biggest U.S. merger of the year.

“There has been a flurry of activity in the semiconductor industry as chip makers seek scale and expand their product portfolios in a world in which everyday items from cars to washing machines are increasingly incorporating chips to link to the internet.”

If a deal is reached, it would expand Analog Devices’ offerings in applications including autonomous vehicles, and the 5G boom.  The news could also boost semiconductor ETFs, such as the Semiconductor Sector Index ETF (SOXX) and the VanEck Vectors Semiconductor ETF (SMH).

 

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