It’s been 10 years since I first explained why TSMC should buy Cadence. Now a decade on, many things have changed in the world and many have not.
Among the things that have not changed? TSMC still should buy Cadence.
First of all, let’s look at the numbers (per Yahoo Financials re: 2014):
* Taiwan Semiconductor Manufacturing Co. Ltd.
Market Cap: $166.44 billion
Revenue: $27.31 billion
Operating margin: 39.26%
Net income: $9.70 billion
Total Cash: $16.61 billion on $7.40 billion in debt
* Cadence Design Systems Inc.
Market Cap: $6.14 billion
Revenue: $1.61 billion
Operating margin: 11.23%
Net income: $161.1 million
TSMC has got the means to buy Cadence.
By a long shot.