After a record-high start in 1Q21, semiconductor merger and acquisition announcements cool off a bit without the “megadeals” seen in 2020, says new update report.
After a surge in semiconductor merger and acquisition announcements in the second half of 2020, the strong M&A momentum carried into the beginning of 2021, with purchase agreements for chip companies, business units, product lines, and related assets reaching a total value of $15.8 billion in 1Q21, setting a record-high level for the first quarter of a year. However, the pace of semiconductor acquisition agreements fell back over the next five months of 2021, putting this year’s total M&A value at $22.0 billion for the January-August timeperiod, according to IC Insights’ September Update of the 2021 McClean Report.
The combined value of semiconductor M&A agreements announced in the first eight months of 2021 was slightly below the total for the same periods in 2019 and 2020 ($24.7 billion and $23.4 billion, respectively), as shown in Figure 1.
Figure 1
