Qualcomm is spending big on its acquisition of NXP Semiconductor, with an all-cash deal of $47 billion, leaving Qualcomm with a future of diversifying its business as sales of smartphones using Snapdragon processors begins to slow down in saturated markets, reports TechSpot.
Who is NXP Semiconductor? They're a large supplier for the automotive industry, so Qualcomm's acquisition is teasing that we could see Qualcomm step into the automotive industry in a very, very big way. It wasn't too long ago that Analogix Semiconductor were purchased by a Chinese consortium for $500 million, but this $47 billion deal makes that acquisition look tiny in comparison.
Qualcomm isn't acquiring NXP to begin its future in the automotive market, as it'll allow Qualcomm to get a better grip on the networking market, as well as the Internet of Things and security - both of which are expanding at rates that most companies can't keep up with.
We should expect the Qualcomm/NXP deal to close by the end of 2017.
Last updated: Sep 1, 2017 at 06:05 am CDT
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