The investment is impressive but when you consider the future for this technology and competition that's emerging then you should wonder how much more investment it will require to future proof this technology. More and more new technology are coming up everyday and investing a large sum could backfire very quickly. For more info on investments check out http://www.invest.org.nz for all investment opportunities in New Zealand
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@peter.clarke Yes, in the free market something, be it goods or service, is worth what somebody will pay for it. Of course, labor unions and monopolies throw a wrench (spanner for you Brits) into the works. Free markets aren't always so free.
Who says it is a low valuation?
The "market" does not care how much money was spent over the previous 11 years and has set this as a "fair valuation." Something is only worth what you can get somebody else to pay for it.
It is notable that the VCs who invested in PicoChip get some money now and some stock in Mindspeed. Executives at Mindspeed and PicoChip are very bullish about the markets for small cell basestations and believe that the holding those VCs have effectively taken in Mindspeed will continue to pay them a return.
But that is the nature of the free market; a mix of hope and experience. Those VCs may think the enlarged Mindspeed is a good a bet and go along for te ride or they may choose to cash out and be pleased to get some money back on their original investment, albeit less than they invested.
Perhaps not semiconductors in general, but more that femotocells have lost their glamor. Glamor that may not have been deserved in the first place. BTW PicoChip is kind of mobile, since femtocells purport to support cellphones...