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TAP TIMES                                              Volume 10, Number 7

           Test, Assembly & Packaging TIMES                                        July 2019

             Does the Cypress-Infineon deal signal more M&A activity?

                                       ith the semi-            philosophy is similar for those buying or
                                       conductor                selling their companies. Buying low during
                                       economy                  a slow period can mean a bargain for the
                                       taking a                 buyer.  It can also mean, as has happened
                                                                to the dismay of some buyers—that the
                                       slight rest              price was far too dear.
                                       in the first
                                       and second

        Wquarters of                                            Why not build your own fab?
          the year, the pundits are pon-                        Instead of buying an existing chip maker,
          dering—with crossed fingers—if                        why not just fire up the dirt movers and
                                                                build your own fab to suit?
          the third quarter will see a re-
          turn to normal for the always-
          volatile chip business.

                      Ron Iscoff, Editor

         “Normal” in semiconductor-speak for the
         past several years has meant record sales,
         record unit shipments, more consolidation
         and frequently record profits.

         Memory products outpacing others                       Micron has grown from its early roots in a Boise, Idaho po-
         Memory products—DRAM and NAND—                         tatoe field to the U.S.’ largest maker of DRAM and NAND
         have been the industry’s shining stars,                with locations worldwide through expansion and acquisiti-
                                                                ioons.  This is a Micron facility in Folsom, Calif.
         outpacing every other product sector.  In
         Q1 and Q2, that began to change radically              Not in my backyard!
         with memory sales falling.                             For the U.S. and for much of the develop-

                                                                ing world, the prospect of a wafer fab near
         TrendForce, which follows memory sales                 your backyard is not a pleasant thought.
         closely, estimates NAND Flash parts fell by
         23.8 percent in Q119, and prices dropped               When it’s time to expand your business,
         “non-stop” in Q2.                                      your thoughts naturally turn to who, where
                                                                and what is available to add to your port-
         Wall Street fortunes are made, of course,              folio.
         by those who buy low and sell high. The                                                       Next page
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