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.
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Means …
First of all, let’s look at the numbers (per Yahoo Financials re: 2014):
* Taiwan Semiconductor Manufacturing Co. Ltd.
Employees: 43,500
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.
Employees: 6,100
Market Cap: $6.14 billion
Revenue: $1.61 billion
Operating margin: 11.23%
Net income: $161.1 million
* Conclusion
TSMC has got the means to buy Cadence.
By a long shot.
