Design Con 2015
Breaking News
News & Analysis

Microchip to buy SMSC, plotting new expansion

5/2/2012 05:38 PM EDT
24 comments
NO RATINGS
More Related Links
View Comments: Oldest First | Newest First | Threaded View
<<   <   Page 2 / 3   >   >>
DMcCunney
User Rank
CEO
re: Microchip to buy SMSC, plotting new expansion
DMcCunney   5/4/2012 12:00:41 AM
NO RATINGS
"Low-margin" is relative. Lots of successful businesses are low-margin. The issue is that when you make pennies on the dollar, you have to take in a *lot* of dollars to make pennies on. And I agree: a 54.4% non-GAAP margin isn't bad at all. But as for "Why put yourself on the block", it's a converse of "Why make an acquisition?" In either case, you've read the tea leaves and decided that survival and prosperity require being bigger than you are. If you can't grow by making an acquisition (the failed deal with Conexant), you can grow by *being* acquired by a better, better heeled partner. It will come down to execution. They don't have product overlap, and each provides opportunities for the other. The issues will be compatibility of corporate cultures, and whether MicroChip can successfully integrate an acquisition that has a somewhat different business model.

DMcCunney
User Rank
CEO
re: Microchip to buy SMSC, plotting new expansion
DMcCunney   5/4/2012 12:03:03 AM
NO RATINGS
*sigh* Make that "a bigger, better heeled partner" above. (I wish EETime's software permitted editing of posted comments.)

Vancouver
User Rank
Rookie
re: Microchip to buy SMSC, plotting new expansion
Vancouver   5/4/2012 6:10:22 AM
NO RATINGS
A well known nick name among its employees is MicroCheap. This company is very stingy with its employee while working hard on its propaganda like no other company care about their employees like MicroCheap. Its frontline and middle management are a whole bunch of idiots yes men and women who known nothing about the processes and operations they are put in charge to supervise.

t.alex
User Rank
Rookie
re: Microchip to buy SMSC, plotting new expansion
t.alex   5/4/2012 6:15:27 AM
NO RATINGS
This will definitely complement Microchip portfolio with a slew of analog products and expertise.

jaybus0
User Rank
CEO
re: Microchip to buy SMSC, plotting new expansion
jaybus0   5/4/2012 11:54:32 AM
NO RATINGS
You are 100% correct. But they certainly are not telling the SMSC engineers that. I do hope that those SMSC engineers realize that they owe neither SMSC nor MicroChip any loyalty whatsoever.

t.alex
User Rank
Rookie
re: Microchip to buy SMSC, plotting new expansion
t.alex   5/7/2012 5:02:06 PM
NO RATINGS
Some of the business like wireless audio is quite high margin, though it's niche market.

mikejt
User Rank
Rookie
re: Microchip to buy SMSC, plotting new expansion
mikejt   5/8/2012 10:34:36 PM
NO RATINGS
Hey, Junko ... I think the whole MOST thing is just a temporary aberration (because the mainstream network biz wasn't interested in a "niche" market back in the '90's). It's going to be completely replaced by Ethernet within a few years ... I can't believe Microchip puts anything more than a temporary value on it. Perhaps the strong relationships with the the auto tier-one suppliers is the real value.

krisi
User Rank
CEO
re: Microchip to buy SMSC, plotting new expansion
krisi   5/8/2012 10:39:17 PM
NO RATINGS
Why do people always invent new standards for communications? What is so special about MOST that Ethernet would not do? Kris

DMcCunney
User Rank
CEO
re: Microchip to buy SMSC, plotting new expansion
DMcCunney   5/8/2012 10:51:26 PM
NO RATINGS
Because there *is* no one-size-fits-all architecture? The official explanation for MOST is here: http://www.mostnet.de/technology/introduction/index.html

krisi
User Rank
CEO
re: Microchip to buy SMSC, plotting new expansion
krisi   5/8/2012 11:32:50 PM
NO RATINGS
thank you @DMcCunney...interesting link...I guess MOST protocol addresses the media aspect more than other technologies...but I still think this is not the most efficient option in terms of economy, Ethernet is bound to be 100x or 1000x larger in terms of devices being shipped than MOST and that must be reflected in price paid...Kris

<<   <   Page 2 / 3   >   >>
Radio
NEXT UPCOMING BROADCAST
EE Times Senior Technical Editor Martin Rowe will interview EMC engineer Kenneth Wyatt.
Top Comments of the Week
Like Us on Facebook

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Times on Twitter
EE Times Twitter Feed
Flash Poll