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SanDisk is next to be acquired?

Pawan Fangaria

New member
Rumors are that Micron and Western Digital are eyeing on acquiring the largest flash-memory maker SanDisk.

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While Micron is a rival to SanDisk, Western Digital appears to be a complementary story adding flash memory chips to its hard drive business based on spinning magnetic disks. Recently Tsinghua University of China had invested $3.8 billion in Western Digital, so they also have good funds available.

SanDisk however will have to obtain Toshiba's permission for getting acquired because their flash-memory plants are operated with Toshiba.
 

Daniel Nenni

Admin
Staff member
Analog Devices and Maxim seem to be next or Fairchild and Infineon. Rumors in Silicon Valley have Marvell on the chopping block. IDT also looks to be ripe for the taking. Their stock dropped 10% and is at a 52 week low...

This will be deja vu of the 1980s when the fabless revolution started. Hundreds of emerging companies with spawn from all of the consolidation and a handful of them will be the next generation of industry leaders (QCOM, BRCM, NVDA, etc...) absolutely.
 
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ippisl

Guest
Daniel, aren't we at a different time, where silicon startups don't even get funding, etc ?
 

Daniel Nenni

Admin
Staff member
Daniel, aren't we at a different time, where silicon startups don't even get funding, etc ?
Yes, that is true. What the VCs do not realize is that without semiconductors there would be no Uber, AirBnB, or the other billion dollar tech unicorns that they have poured their money into.

New semiconductor companies will come from small groups of engineers that use personal investments and seed money to start. Many of them will begin as IP companies or services groups. As I mentioned before, thousands of semiconductor professionals will be looking for work due to the industry consolidation. They will either create new companies or go hungry, my opinion.
 

Tom Simon

Moderator
It seems that there is a big pool of mid-size semi companies these days. So, I'd expect more mergers. Dan, I agree. This consolidation might eventually lead to more smaller semi companies starting up as talent looks for new innovators.
 

Pawan Fangaria

New member
Okay, it's a significant $19 billion deal. SanDisk goes to Western Digital.
Four months after, the deal gets reduced by ~$3 billion. Now, Western Digital will pay $15.78 billion to SanDisk instead of $19 billion. The reason, China's Unisplendour Corp, a unit of Tsinghua Holding Co Ltd is not buying the 15% stake in Western Digital (that amounts to $3.78 billion) which was committed back in Sep 2015. Western Digital's buy of SanDisk at that time was conditional, to be revised if Unisplendour deal fails.

This is another deal failing with Chinese companies amid US approval concerns.
 
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