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Why Semiconductor M&A Value Fell in 2018—and What Happened After

Semiconductor M&A totaled $23.2 billion in 2018, well below the 2015 record. Two transactions drove most of the year’s value, while failed megadeals and regulatory review shaped the wider cycle.
From TheFinanceBase Team3 min to read
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Semiconductor acquisition agreements totaled $23.2 billion in 2018, down from $28.1 billion in 2017 and far below the 2015 record of $107.3 billion. The retreat followed a surge of unusually large proposed deals; two transactions alone accounted for about 65% of 2018’s total. Later figures suggest dealmaking remained volatile, but they use different definitions and should not be treated as one directly comparable series.

How much were semiconductor acquisitions worth in 2018?

IC Insights put the value of semiconductor acquisition agreements at $23.2 billion in 2018, a decline of about 17% from $28.1 billion in 2017. Despite the year-over-year drop, 2018 remained well above the $12.6 billion average annual value recorded from 2010 through 2014. It was nevertheless only about one-fifth of the $107.3 billion record set in 2015. Electronic Design, reporting IC Insights.

Period Semiconductor M&A value Context
2010–2014 $12.6 billion average per year IC Insights annual average
2015 $107.3 billion IC Insights record year
2017 $28.1 billion IC Insights annual total
2018 $23.2 billion IC Insights annual total

Why did semiconductor M&A value fall?

The 2015–16 surge depended on a few megadeals

Aggregate deal value can swing sharply when a small number of very large agreements are announced. The 2015–16 wave was unusually dependent on multibillion-dollar transactions, so its cooling made subsequent annual totals look much smaller even without implying that every kind of semiconductor investment had stopped.

Proposed deals did not always close

The Qualcomm–NXP transaction illustrates why announced value and completed activity are different measures. Qualcomm announced a proposed purchase of NXP for $39 billion, later raising the proposed value to $44 billion. The deal was cancelled in July 2018. After major proposed transactions failed to close, IC Insights revised its 2016 semiconductor M&A total from $100.4 billion to $59.3 billion. Electronic Design, reporting IC Insights.

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Regulatory and national-security review became a constraint

In its later industry review, EY says that several high-profile semiconductor transactions were halted on antitrust or national-security grounds. EY describes dealmaking as having slowed dramatically after the 2015–16 blockbuster wave and estimates 2023 semiconductor M&A value at about $15 billion, the lowest level in ten years. EY’s semiconductor M&A analysis.

Which deals drove 2018’s total?

The Microchip–Microsemi and Renesas–IDT transactions represented about 65% of IC Insights’ 2018 total. The other transactions below illustrate the range of activity, from a completed acquisition to agreements and share purchases with later closing or ownership milestones.

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Microchip Technology / Microsemi $8.35 billion cash agreement announced in March 2018; completed in May 2018 Microchip said the acquisition would strengthen its position in computing, communications and wireless applications.
Renesas Electronics / IDT $6.7 billion cash agreement announced in September 2018 Renesas emphasized automotive ICs, advanced driver assistance and autonomous vehicles. At the time of the 2018 report, closing was expected by June 2019.
Micron / IM Flash About $1.5 billion for Intel’s remaining interest Micron exercised an option; closing was expected in the second half of 2019.
Wingtech / Nexperia Share transactions totaling nearly $3.8 billion began in 2018 Wingtech sought majority ownership.

Transaction values and status above are from Electronic Design’s report of IC Insights’ figures. The values of individual deals do not necessarily add neatly to an annual total: reports may differ in timing, treatment of partial interests, and whether they count announced or completed transactions.

Did semiconductor M&A recover after 2018?

Later indicators point to a rebound in 2025 from the weak 2023 period, but the available totals do not share a single scope. EY’s chart indicates roughly $81 billion of semiconductor M&A value in 2025. Barclays/Dealogic reports $78 billion for 2025 deals above $100 million. Those are complementary indicators, not interchangeable observations in one consistent time series. EY; Barclays/Dealogic figures reported by Reuters.

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Private-equity and venture-capital investment is another separate measure, not a substitute for corporate acquisitions: S&P Global Market Intelligence put global semiconductor PE and VC investment at $13.35 billion in 2025. S&P Global Market Intelligence.

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How to compare semiconductor M&A totals

Before comparing two annual figures, check whether they count the same kind of activity. At least four choices can change the reported total:

  • Announced or completed: An announced agreement may be cancelled or revised. The 2016 downward revision after deals failed to close shows how headline values can overstate completed activity.
  • Minimum deal size: Some series set a threshold. The Barclays/Dealogic 2025 figure, for example, covers deals above $100 million.
  • What counts as an acquisition: Whole-company purchases, business units, product lines, fabs, and intellectual property can be handled differently.
  • Geography and cutoff date: The included regions and the date through which deals are counted can affect an annual result.

These scope differences are why the 2018 IC Insights total, EY’s later chart, and the Barclays/Dealogic figure should each be read with their own definitions rather than combined into a seamless historical series.

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