US chip company MaxLinear arranged an acquisition of NAND flash controller manufacturer Silicon Motion Technology for nearly $4 billion in a cash-and-stock deal which will create one of the largest fabless semiconductor suppliers in the world.

MaxLinear stated the deal will almost double its total addressable market opportunity to $15 billion and create a company in the top-ten of the global fabless semiconductor sector.

The company focuses on radio frequency (RF) analogue and mixed-signal integrated circuits for broadband, connectivity and infrastructure markets. Taiwan-based Silicon Motion Technology NAND equipment is employed in solid state storage devices.

MaxLinear explained the combination would open opportunities in new enterprise and consumer markets, additional sectors which are expected to reap revenue of more than $2 billion per annum.

The deal is expected to be completed by H1 2023, subject to customary closing conditions, regulatory approvals and a vote by Silicon Motion Technology’s shareholders.

Once the acquisition is completed, MaxLinear shareholders will own about 86 per cent of the combined company with Silicon Motion Technology stockholders the remaining 14 per cent.