is 68 billion US dollars! ADI acquires Maxim with Chinese antitrust license

, ADI announced on its public number,its acquisition of Maxim has obtained anti-monopoly license from the State Administration of Market Regulation of China, the combined market value of ADI and Maxim will exceed US $68 billion and the expected revenue will reach US $8.2 billion.

According to the Anti-Monopoly Law, if the global revenue of both companies exceeds10 billionand revenue in the Chinese market exceeds0.4 billion, then the relevant regulatory authorities in our country will bring the merger into supervision together. This is also to prevent some monopolistic behavior. This transaction has previously been approved in some regions such as the European Union, the United States, Japan, South Korea, the Philippines, Singapore and Taiwan.

On August 23, ADI and Maxim announced that,ADI's acquisition of Maxim has obtained anti-monopoly license from the State Administration of Market Supervision and Administration of China. It is expected that the transaction will be completed on or around August 26, 2021, subject to the remaining customary closing conditions.

In July last year, ADI announced on its website that it had reached a final agreement with Maxim and ADI would acquire Maxim in an all-stock transaction. According to the terms of the agreement, after the transaction is closed,ADI will hold approximately 69% of the combined company, while Maxim shareholders will hold approximately 31%, two of Maxim's directors will join ADI's board, including Tun Doluca, Maxim's president and chief executive.

data show that ADI was established in 1965, focusing on the design, manufacture and sales of high-performance analog, mixed signal and digital signal processing (DSP) integrated circuits. Its products include data converters, amplifiers and linear products, radio frequency (RF)IC, power management products, sensors based on micro-electromechanical systems (MEMS) technology, other types of sensors and signal processing products, DSP and other processors.

Maxim is also an analog chip company. It mainly designs, manufactures and sells high-performance analog, linear and mixed-signal semiconductor products, which are mainly used in automotive, cloud data center, mobile consumer, industrial and other markets.

According to the latest research report released by market research organization IC insights,The global analog semiconductor market was $55.2 billion in 2019, with Texas Instruments (TI), the largest manufacturer, having a revenue of $10.2 billion and a market share of 19%, almost twice the output value of the second ADI and five times that of the seventh Maxim.

the completion of this transaction will undoubtedly further strengthen ADI's leading position in the analog semiconductor market. After the merger of ADI and Maxim, the total market value of the company will exceed US $68 billion, the expected revenue will reach US $8.2 billion, and the global market share will also reach14%, becoming the world's second largest analog chip manufacturer after TI.

, as the second child of the global analog semiconductor market, ADI announced the merger with Maxim, which is located in the seventh place, which not only enriches its product portfolio and improves the diversity of solutions, but also uses the merger advantages to enhance its market leadership position, providing a favorable guarantee for further expanding the market scale.

ADI and Maxim is also an attempt by both sides to hit the top spot in TI market. In the future, can ADI and Maxim really stir up the global analog chip market and set off a new wave of innovation and growth? We will wait and see.