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EU: Infineon buys US rival for $9.4B

By  |  June 3, 2019

Germany’s Infineon has agreed to buy Silicon Valley-based Cypress Semiconductor for US$10 billion, in an expensive move by Europe’s largest chip-maker to expand further in next-generation automobiles and Internet technologies, reported the Wall Street Journal.

According to the Journal, chip makers have been looking for scale and expanding their product portfolios in a world where everything from cars to washing machines is increasingly connected to the internet and heavily reliant on chip technology.

The proposed deal, which requires regulatory approval, dragged down Infineon shares more than 6% in early morning trade, as analysts said the price offered could be too high, especially in light of current market volatility.

Infineon CEO Reinhard Ploss told reporters Monday, June 3, that the price was “hefty,” but justified because it offers the company great growth potential.

Full Content: Wall Street Journal

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