VC, M&A activity dipped in Q3, says GSA

LONDON – The value venture capital deals and number of mergers and acquisitions involving semiconductor companies all dipped in the third quarter of 2010, according to the Global Semiconductor Alliance (GSA).

As in the previous quarter funding, M&A and IPO activity was reduced – although M&A deals are up compared with 3Q09 – but the year-to-date figures compare well with the previous year, which was exceptionally poor, because of an overhang from the 2008/2009 economic crisis.

In September seven semiconductor companies raised $61.6 million, a dollar amount decrease of 22.0 percent from August 2010 and 21.5 percent decrease from September 2009. As a result the quarterly figures also showed sequential and year-on-year declines. In Q3 2010, 17 semiconductor companies raised $182.9 million, a dollar amount decrease of 47.8 percent over Q2 2010 and 37.5 percent over Q3 2009, the GSA said.

But the year as a whole continues to be an improvement on 2009. For the first nine months of 2010, 96 semiconductor deals raised $987.0 million, a dollar amount increase of 15.3 percent year-on-year, according to the GSA's Global Semiconductor Funding, IPO and M&A Update

On the M&A front in September 12 semiconductor mergers and acquisitions (M&As) were announced by which GSA means mergers or acquisitions of entire fabless, IDM and semiconductor supplier companies, rather than sales of company sectors, product lines or foundry facilities.

In Q3 2010 there were 26 such M&A deals, a decrease of one sequentially an increase of three year-on-year. And in the year-to-date there have been 82 semiconductor M&A deals, a 17.1 percent  increase compared with the first nine months of 2009, the GSA said.

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