Design Con 2015
Breaking News
Comments
Newest First | Oldest First | Threaded View
<<   <   Page 2 / 3   >   >>
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.

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.

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.)

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.

jg_
User Rank
Rookie
re: Microchip to buy SMSC, plotting new expansion
jg_   5/3/2012 9:26:18 PM
NO RATINGS
Microchip must really like the 8051 - they have bought another 8051 company ! That aside, SMSC has a _very_ different customer profile to Microchip, which is sure to cause significant mindset and culture issues.

junko.yoshida
User Rank
Blogger
re: Microchip to buy SMSC, plotting new expansion
junko.yoshida   5/3/2012 10:26:58 AM
NO RATINGS
Hi, yalanad. It's true that the computer and consumer business these days is often regarded as "low-margin," and those in the financial community (and obviously our readers too)are averse to that. But look. SMSC’s annual sales is $412 million and it's got 54.4 percent non-GAAP gross margin. My friend, that is NOT bad. However, you do ask a good question. Why did SMSC start looking to be sold? A little over a year ago, SMSC was on its own expansion plan, and it was going to buy Conexant. http://www.eetimes.com/electronics-news/4212028/SMSC-set-to-buy-Conexant-for--284-million But the deal fell through, as Conexant went to Gold Holdings, Inc., an affiliate of San Francisco-based private equity firm Golden Gate Capital. I would love to get a chance to sit down with Christine King, SMSC CEO, and ask her what prompted this sale. SMSC is in a quiet period and nobody at SMSC is talking at this point. Microchip CEO refrained from commenting any questions regarding to SMSC's motivation, or whether there was anyone else was courting SMSC.

yalanand
User Rank
Rookie
re: Microchip to buy SMSC, plotting new expansion
yalanand   5/3/2012 6:06:52 AM
NO RATINGS
@junko.yoshida, if SMSC was not having low-margin business, any particular reasons that SMSC sold its unit ?

yalanand
User Rank
Rookie
re: Microchip to buy SMSC, plotting new expansion
yalanand   5/3/2012 6:05:10 AM
NO RATINGS
@BobsUrUncle, I am not sure if that will be the case because Microchip CEO has said that "We have very little product overlap" which means skill set of the SMSC engineers is still needed by Microchip.

konda
User Rank
Rookie
re: Microchip to buy SMSC, plotting new expansion
konda   5/3/2012 4:58:39 AM
NO RATINGS
very much +ve for Microchip pitching into automotive connectivity and audio business with recent acquisitions(SMSC & Roving networks)

Mxv
User Rank
CEO
re: Microchip to buy SMSC, plotting new expansion
Mxv   5/3/2012 1:00:18 AM
NO RATINGS
Look for job cuts to pay for this merger. Cash out for SMSC honchos, pink slips for SMSC engineers.

<<   <   Page 2 / 3   >   >>


Top Comments of the Week
Flash Poll
Like Us on Facebook

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Carlos Bueno

Adventures in Userland
Carlos Bueno
Post a comment
Editor’s Note: Excerpted from Lauren Ipsum: A story about computer science and other improbable things, author Carlos Bueno introduces us to Lauren and her adventures in ...

Max Maxfield

Tired Old iPad 2 vs. Shiny New iPad Air 2
Max Maxfield
9 comments
I remember when the first iPad came out deep in the mists of time we used to call 2010. Actually, that's only four years ago, but it seems like a lifetime away -- I mean; can you remember ...

Martin Rowe

Make This Engineering Museum a Reality
Martin Rowe
Post a comment
Vincent Valentine is a man on a mission. He wants to make the first house to ever have a telephone into a telephone museum. Without help, it may not happen.

Rich Quinnell

Making the Grade in Industrial Design
Rich Quinnell
16 comments
As every developer knows, there are the paper specifications for a product design, and then there are the real requirements. The paper specs are dry, bland, and rigidly numeric, making ...

Special Video Section
The LT8640 is a 42V, 5A synchronous step-down regulator ...
The LTC2000 high-speed DAC has low noise and excellent ...
How do you protect the load and ensure output continues to ...
General-purpose DACs have applications in instrumentation, ...
Linear Technology demonstrates its latest measurement ...
10:29
Demos from Maxim Integrated at Electronica 2014 show ...
Bosch CEO Stefan Finkbeiner shows off latest combo and ...
STMicroelectronics demoed this simple gesture control ...
Keysight shows you what signals lurk in real-time at 510MHz ...
TE Connectivity's clear-plastic, full-size model car shows ...
Why culture makes Linear Tech a winner.
Recently formed Architects of Modern Power consortium ...
Specially modified Corvette C7 Stingray responds to ex Indy ...
Avago’s ACPL-K30T is the first solid-state driver qualified ...
NXP launches its line of multi-gate, multifunction, ...
Doug Bailey, VP of marketing at Power Integrations, gives a ...
See how to ease software bring-up with DesignWare IP ...
DesignWare IP Prototyping Kits enable fast software ...
This video explores the LT3086, a new member of our LDO+ ...
In today’s modern electronic systems, the need for power ...