Infineon ups game with Cypress buy - Mobile World Live

Infineon ups game with Cypress buy

03 JUN 2019

Infineon Technologies lined up an acquisition of Cypress Semiconductor in a deal which values the target at €9 billion and which it expects to unlock the potential of sectors including automotive, industrial and the IoT.

In a statement, Infineon said the purchase will bolster its portfolio for “linking the real with the digital world”. Reinhard Ploss, CEO, added: “This will open up additional growth potential” and “also makes our business model even more resilient.”

Infineon noted Cypress has “a differentiated portfolio of microcontrollers as well as software and connectivity components that are highly complementary to Infineon’s leading power semiconductors, sensors and security solutions”.

It also said its security expertise and Cypress’ connectivity skills will accelerate entry into new IoT applications in the industrial and consumer segments. Opportunities in automotive were also highlighted.

Germany-based Infineon also said the addition of Cypress’ R&D and geographic presence in the US strengthens its position not only in the North American market, but also in other important regions: it noted the “strategically important Japanese market” as an example.

The buyer also said it is aiming to achieve significant economies of scale, making its business model more resilient. Based on pro forma revenue of €10 billion in 2018, the deal will make Infineon the number-eight chip manufacturer in the world.

Expected economies of scale are expected to generate cost synergies of $180 million per year by 2022.

The deal is subject to approval by Cypress’ shareholders and regulatory bodies, as well as other conditions. It is expected to close either by the end of 2019 or early 2020.



Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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