Chip makers set for acquisitions as internet of things gains pace
SAN FRANCISCO — Chip makers will continue gobbling one another up this year, and deep-pocketed giants, such as Qualcomm and Samsung Electronics, are under pressure to enter the fray.While semiconductor companies spent a record $113bn on acquisitions last year, the biggest players mostly stayed on the sidelines — with the exception of Intel, which bought Altera for $16bn. Now Qualcomm, having fended off calls to split the company in two, says it has the cash to make deals.While Samsung prefers to build rather than buy, analysts say its stated interest in the so-called internet of things means it will probably have to go shopping.Chip makers have three good reasons to keep making deals. Scale has become increasingly important in an industry grappling with rising production costs and intensifying competition. It is also a target-rich environment, with more than 500 public companies generating less than $1bn in sales. And, despite last year’s acquisition frenzy, the biggest 20 chip mak...
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