Over the last 12 months, there has been a spike of mergers and acquisitions activity in the semiconductor industry totaling $78 billion. Now investors want to know: Which chipmaker could be the next target?
Just this week, headlines have been coming in fast and furious about the dramatic consolidation now potentially redefining this sector. Shares of Analog Devices and Maxim Integrated Products jumped on reports that the chipmakers are in merger talks.
After decades of solid growth, the semiconductor industry is maturing, say analysts. Research firm Gartner forecasts that worldwide shipments of personal computers, tablets and smartphones will grow just 1.5 percent this year to 2.5 billion units.
Fewer devices mean fewer chips. In fact, chip sales will actually dip about 1 percent in 2015 to $338 billion, according to Mark Hung, a research vice president at Gartner.