SAN JOSE, Calif. — In another sign of the consolidating chip industry, Cypress Semiconductor Corp. hopes to merge with Spansion in an all-stock deal valued at $4 billion. The deal would create an expanded embedded chip vendor with $2 billion in annual revenues, half in mainly NOR flash and SRAM memory with the rest split between microcontrollers and analog parts.
T.J. Rodgers will remain as chief executive of the merged company under the Cypress name. Although Cypress is the slightly smaller of the two firms, it has had consistent profits while Spansion has been crawling its way into the black, in part due to the decline of its core NOR flash business.
The combined companies will not have enough heft to break into the world's top 20 chip vendors which these days requires nearly twice as much in revenues. However they claim they will be the world's fourth or fifth largest supplier of chips to car makers. They will rank eighth in automotive microcontrollers and ninth in the overall MCU market.
(Editor's Note: Cypress Semi's Executive Vice President of Finance and Chief Financial Officer, Thad Trent, will discuss Cypress’s business and strategic outlook at Credit Suisse's Annual Technology Conference on Tuesday, December 2 at 11:00 a.m. Mountain Time at The Phoenician resort in Scottsdale. The presentation will be webcast live and will be available on-demand for two weeks following the event.)
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