Monday, June 8, 2009

The consolodation has started!

The semiconductor industry is poised for firestorm of consolidation, but there has been very little action due to the stalled capital markets and executive leadership teams focused on revenues, cost cutting, balance sheet clean-up and falling stock prices. In the last 10 weeks the environment has changed with several mergers and carve-out acquisitions having been announced:
The stage is now set with low market valuations, very poor (wafer, assembly & test) capacity utilization, a maturing industry where scale is attractive and revenues having declined significantly. Seems like very dry kindling waiting for a spark........

While we won't attempt to predict the industry's path in this forum, we'll do our best to report on the process.

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