NEW YORK – Microcontroller vendor Microchip Technology Inc. (Chandler, Ariz.) has agreed to acquire Novocell Semiconductor Inc. (Hermitage, Penn.) a supplier of antifuse-based embedded memory IP. The purchase is being done through Microchip's Silicon Storage Technology Inc. subsidiary but the purchase price was not revealed.
Novocell will become a wholly-owned subsidiary of SST and SST plans to invest in Novocell’s product portfolio and roadmap, Microchip said. The transaction is expected to close in early June 2013.
"Novocell has continued to grow its portfolio of non-volatile-memory IP solutions since its inception, and we fully expect the technology to see an increased adoption from joining a leader like SST in the memory IP market," said Walter Novosel, Novocell's president and chief technical officer. "With SST’s offerings in the high-density arena, we can concentrate on not only expanding our customer base, but also growing the footprint that SST has built with customers worldwide in low-density OTP and MTP memory."
I like the idea of the non-volatile memory growth and a player like Microchip continuing to invest in these types of companies. I was wondering what the bigger picture is for Microchip and in particular, what is it about this company's offering that sparked interest?