At the end of October, Qualcomm announced that it will acquire Dutch semiconductor manufacturer NXP Semiconductors (NXP) for US$38 billion. The combined annual revenue of the two companies will exceed US$30 billion, and the combined company's market value will break through. Billions of dollars. After the acquisition was finalized, many analysts have made various interpretations of "the significance of Qualcomm's acquisition of NXP", and now Kurt Sievers, general manager of NXP's automotive business, is also standing at NXP for the first time. The position was expressed on the stand. Siworth believes that the future of the automotive industry will change dramatically compared to the traditional automotive industry. Specifically, every car in the future will be networked (such as autonomous driving or driverless), which requires chip support. Therefore, in the next few years, the demand for chips will double in the development of auto-driving or unmanned vehicles. "Cars have been driving mergers and acquisitions, and for some time in the future will continue to be the driving force for M&A transactions in the chip sector. From a broader perspective, devices connected to the Internet are driving M&A in the chip space." In his view, after the slowdown in the growth of the mobile market, mergers and acquisitions in the automotive semiconductor industry are an inevitable trend. The significance of acquiring NXP for Qualcomm is obvious. NXP is the world's largest supplier of automotive chips. According to Strategy AnalyTIcs' latest report, "2016 Automotive Semiconductor Manufacturers Market Share," NXP's share of the automotive semiconductor market has reached 14.2%, much higher than Infineon and Renesas ( Renesas) two competitors. Although the excessive purchase price may make Qualcomm bear no small risk, if the acquisition is successful, Qualcomm will have a rich product line in the field of automotive electronics and even the Internet of Things. In the case of weak mobile chip business, this article The product line will become an important revenue growth point for Qualcomm in the future. In the past year, NXP has also completed several mergers and acquisitions. For example, at the end of last year, with the acquisition of another chip maker, Freescale, for $11.8 billion, NXP jumped to become the world's largest supplier of automotive semiconductors. But unexpectedly, the world's largest auto semiconductor supplier has become a "buy" acquisition in this round of mergers and acquisitions. If you look back at the performance of NXP's acquisition of Freescale in the past year, the acquisition really came a bit suddenly. According to the third quarter 2016 financial report released by NXP, the company's third quarter operating income was 2.47 billion US dollars, an increase of 62% year-on-year and 4% quarter-on-quarter. This is almost the time when NXP has been the highest in more than 60 years. In addition, although NXP and Qualcomm overlap in a small number of product lines, such as automotive processors and audio processing and Bluetooth chips, the genes of the two companies are actually very different. Automotive chips are the main business of NXP, which accounts for 64% of the company's profits, while Qualcomm's related products account for only about 2% of profits. Although from the above data, Qualcomm does not have much to do in the automotive market, Sivos believes that Qualcomm can provide technical support for NXP, and Qualcomm's technology accumulation in communication technology will play an important role in the automotive market. They (Qualcomm) brought us connectivity technology, and we excelled in terms of sensors. Since cars need to handle huge amounts of data, we expect each car to have two modems in the future, not the current one. Syvos also said that the next two products will be integrated or even deep integration, which can help NXP to enhance competitiveness in competition with vendors such as Infineon. Qualcomm has these modems, which, when integrated with our products, provide us with a competitive advantage. Therefore, although the automotive market is almost a brand new business for Qualcomm, it has NXP and other modems that chip makers don't have. If the two major product lines can be integrated in the future, the combination of “Qualcomm+NXP†will be in the automotive market. It will be a giant. Screw Din Rail Terminals,10 Sq Screw Electrical Terminal,Screw Din Terminal Block,Din Rail Sak Terminal Block Wonke Electric CO.,Ltd. , https://www.wkdq-electric.com