Silex Unwired

How Qualcomm Acquiring NXP Will Benefit You!

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On October 27, 2016, Qualcomm Incorporated (NASDAQ: QCOM) and NXP Semiconductors N.V. (NASDAQ: NXPI) announced a definitive agreement, unanimously approved by the boards of directors of both companies, under which Qualcomm will acquire NXP. 

The combining of NXP into Qualcomm is based on compelling strategic logic that brings together two highly successful and complementary businesses to create a premier semiconductor industry leader. With unique leadership positions in Wireless technologies, Security and Processing, the union is ideally positioned to address the emerging trends of ADAS and Autonomous Vehicles, the Internet of Things (IoT) and the 5G revolution.

For more details, the Qualcomm press release can be found at the below link:

https://www.qualcomm.com/news/releases/2016/10/27/qualcomm-acquire-nxp  

Silex Technology has a unique perspective on the acquisition as a result of our long history with both organizations.  In addition, we have seen how Atheros was integrated into Qualcomm and more recently, lived through the Freescale/NXP transition.

  • Qualcomm: Silex Technology has been developing and manufacturing Wi-Fi modules based on Atheros radios for over 10 years. Today, we are one of 16 Authorized Design Centers (ADC) that have been enabled to promote Qualcomm Wi-Fi solutions to the broad IoT market. 
  • NXP: Silex Technology is a NXP “Proven Partner” since 2011. Silex Technology Wi-Fi modules are a recommended connectivity solution for NXP i.MX application processors.

Based on my observations on the past acquisitions and our intimate understanding of both companies, there are three key takeaways that I would like to share:

  • No Immediate Impact. For now, it will be business as usual.  Due to the complexity of the transaction, the acquisition is not expected to close until the end of calendar 2017.  In addition, it will take even more time before people, products and strategies are integrated.  In the case of the Atheros acquisition, this process took several years.
  • Qualcomm Connectivity will Become the Focus. Today, NXP does not offer their own Wi-Fi solutions but have partnerships with a number of companies, including Qualcomm/Silex Technology.  Moving forward, the Wi-Fi focus will become exclusively Qualcomm-based.  Both companies have a Bluetooth portfolio but I suspect that the Bluetooth solutions will eventually standardize on Qualcomm (previously CSR) IP.
  • Broad Market Enablement. One of the strategic benefits of the NXP acquisition is that Qualcomm will get access to the NXP sales/FAE organization.  With offices in all major cities around the globe, it would make sense for the Qualcomm sales organization to continue their focus on tier 1 customers and give the NXP sales organization the responsibility for taking Qualcomm technology to the mass IoT market.

WP2-CoverPage.pngIn conclusion, the success and growth of Silex Technology can be partly attributed to a decision made over 10 years ago to partner with a relatively new Wi-Fi company named Atheros.  In 2011, Atheros was acquired by Qualcomm.  Qualcomm then acquired CSR, the leading Bluetooth technology provider in 2015 and last week they announced the definitive agreement to acquire NXP.  In the past, each of the transactions have created new opportunities for Silex Technology.  Our business and our strategic relationship with Qualcomm continues to expand.  We are excited about the potential NXP acquisition and look forward to being able to better serve our customers with the latest technology.  For more information on our existing Qualcomm relationship, please download the white paper titled “Optimizing Wi-Fi for Enterprise Applications”.

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