Date: 20/01/2012

Mobile semiconductor market shake up by M&A, says ABI

ABI Research has reported year 2011 marked a big year for mergers and acquisitions (M&A) in the mobile device semiconductor market. From Intel's acquisition of Infineon Technologies AG Wireless Solutions to NVIDIA's purchase of Icera, the mobile device semiconductor market has seen a lot of moving and shaking. Despite all the M&A activity, ABI believes this market is still to remain relatively flat, with only 5.6% CAGR from 2010 to 2016, pushing the market from $25 billion in 2010 to $35 billion in 2016.

Intel's purchase of Infineon's wireless semiconductor business was noted as smart move by ABI. Well, Intel is now very much in mobile space and the wireless not just matters but is key.

Peter Cooney, practice director, semiconductors. ABI says "Through acquisitions and internal product developments, suppliers such as ST-Ericsson, Broadcom, NVIDIA, Marvell, and Renesas are transitioning to a platform supplier model. Although Qualcomm currently leads the way, many other suppliers are increasing their capabilities and the competition between suppliers will increase significantly over the coming years."

The leading vendor in this segment, Qualcomm with almost 30% of the total market share also acquired Atheros Communications to form the subsidiary Qualcomm Atheros, says ABI.