Japan’s Renesas Electronics is in talks to acquire US chipmaker Maxim Integrated Products in a deal potentially worth up to US$20 billion, according to CNBC.
A deal is not imminent and it is possible that the talks could fail, the financial news network reported on its website, citing unidentified sources.
Maxim has tried to sell itself before in deals that fell apart. In 2015 it attempted to sell itself after holding talks with Analog Devices and Texas Instruments, the report noted.
Those talks were said to have failed over valuation issues.
Renesas, an automotive chip maker, has a market capitalization of about US$20 billion, while Maxim is valued at more than US$16 billion.
A deal would continue a multiyear wave of semiconductor consolidation driven by scale efficiencies, increasing demand from car companies and the rising costs of chip fabrication, CNBC noted.
Renesas beat out Maxim in 2016 to acquire Intersil, a semiconductor company whose chips are used in mobile and infrastructure applications, for US$3.2 billion.
Now the companies could come together if the ongoing reported talks succeed.
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