Active-Semi, a newer name in the power management and intelligent motor drive chip markets, offers technology that can improve upon Qorvo’s RF technologies.
The Dallas, Texas-based Active-Semi prominently features among its offerings the Power Application Controllers® (PAC®) and Programmable Analog ICs, which are designed to offer turnkey power management solutions in semiconductors.
The rise of advanced technologies through IoT, advanced computing, and the defense sector present leveraging opportunities for Active-Semi to grow in its acquisition.
Regarding the deal, Active-Semi CEO Larry Blackledge said, “The combination of Active-Semi’s programmable analog power solutions with Qorvo’s leading product and technology portfolio opens up vast opportunities to accelerate revenue, develop more highly integrated system solutions and target new high-growth markets, like 5G infrastructure.”
Bob Bruggeworth, Qorvo President and Chief Executive, called the move beneficial for growth in “new high-growth power management markets.”
“We see significant opportunities to accelerate adoption of Active-Semi’s innovative analog/mixed signal solutions across multiple markets by leveraging Qorvo’s global scale, sales channel and customer relationships.” Bruggeworth said.
Qorvo’s press release stated that the company views the Active-Semi deal as financially beneficial within the first year.
“Qorvo expects the acquisition to be accretive to non-GAAP gross margin and non-GAAP EPS in the first year.”
Subject to regulatory approval, Qorvo expects the acquisition to close by late June.
Semiconductors Continue Consolidation
With Qorvo’s latest acquisition agreement, chip maker consolidation continues to shake up the semiconductor business sphere. Amid ongoing supply shortages and the growing pains of new consumer demands, the current trend comes as an unwelcome development for some industry professionals.
An Electronic Design and Source Today survey found that the issue of obsolescence, and the related issue of consolidation, is of less concern to components industry execs than their engineers and procurement staffs.
“While 77 percent of both engineering and procurement professionals say that the threat of obsolescence is at least somewhat important to their supply chain, only 62 percent of executives agreed. Only 46 percent of executives flagged consolidation as a hazard, as opposed to 55 percent of engineering and 57 percent of procurement staffs,” the survey found.
An April report from the Hackett Group unveiled a similar dissonance between corporate executives and their staff over supply chain growth expectations and budgeting.
Despite more than halving budget growth and procurement staffing from 2018, procurement organization execs anticipate revenue growth to rise to 5.7 percent in 2019 – a 0.7 increase from last year.