Cypress deal will make Infineon top automotive chip supplier

June 17, 2019 //By Ally Winning
According to industry analyst IHS Markit, Infineon’s $10 billion purchase of Cypress Semiconductor will create the world’s largest automotive chip supplier.
According to industry analyst IHS Markit, Infineon’s $10 billion purchase of Cypress Semiconductor will create the world’s largest automotive chip supplier.

Last year, Infineon was second in the global automotive chip rankings, with $4.2 billion in revenue and a 9.9% share of the global market. Cypress placed 14th, with total automotive revenue of $808 million and a market share of 1.9%. The combination of the two companies would have a market share of 11.9% and revenue of $4.9 billion, exceeding current market leader NXP’s 10.8% share and $4.5 billion in revenue for 2018.

Cypress’ product portfolio expands Infineon’s offerings into areas it currently doesn’t serve. “Cypress’s memory capabilities and products represent a major enhancement to Infineon’s automotive portfolio,” said Phil Amsrud, senior principal analyst, Automotive Semiconductors at IHS Markit. “Infineon currently has no memory revenue in automotive, so Cypress’ Flash and SRAM product lines are completely additive to its product line and capabilities. Moreover, Cypress’ NOR flash products align well with Infineon’s strategy and reputation for offering products that make systems safe and secure.”

Cypress also offers Ferroelectric RAM (F-RAM), which combines the nonvolatile data storage typically associated with NAND Flash with the high performance delivered by RAM.

The addition of Flash and SRAM products will expand Infineon’s ADAS capabilities and assist the company in the Infotainment segment.

Cypress also has Wi-Fi and Bluetooth experience and products that are key features required in automotive. The acquisition also expands Infineon’s line of PMICs required for ADAS applications.

In 2018, Infineon placed eighth in chips serving ADAS and infotainment applications, with Cypress in sixth. The merger of the companies’ revenue would put Infineon in fourth place with revenue of $1.2 billion, passing Renesas.

Finally, the Cypress acquisition boosts Infineon’s automotive MCU portfolio and strengthens its third-ranked position in that segment. Cypress’ MCUs serve a completely different part of the automotive market than Infineon’s Aurix MCU line.

More information

https://ihsmarkit.com/index.html

www.infineon.com

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