Maxim acquires Teridian to gain market share in e-meter semiconductor market

Analog and mixed signal semiconductor chip expert Maxim has entered into a definitive agreement to acquire Teridian Semiconductor for approximately $315 million in cash.

Through this acquisition Maxim gains leadership strength in the domain of growing smart- meter market. Teridian makes SoCs for smart meters and has 50% share in this market.

Maxim can now offer package of ICs such as interface chips, RTCs, power ICs, and IPs along with these acquired SoCs from Teridien for designing smarmeters.
Maxim said it will leverage Teridian's market position to accelerate the adoption of Maxim's technology-leading G3 Powerline Communications (PLC) products for use in Smart Meters and high-reliability Smart Grid deployments worldwide.

Maxim CEO Tunc Doluca remarked, "Global Smart Grid investment is essential to use power plants and transmission networks more efficiently. Energy measurement and grid communications are key components of the smart grid and necessitate the deployment of new electronic meters to replace older meters worldwide. The addition of the Teridian team and product line to Maxim will significantly accelerate our penetration in this fast-developing market and will help us maintain our balanced business model."

Teridian CEO, Jerry Fitch commented "Teridian is working with manufacturers to enable the global trend toward improving energy efficiency and conservation via ubiquitous energy measurement. As part of Maxim, we will be able to provide more comprehensive solutions to these customers."

Market information from Maxim: Smart Meter units using both SoC and multi-chip solutions are estimated to grow10% annually through 2014. Since SoC based implementations are estimated to go from approximately one third of Smart Meters to a substantial majority over that same period, the demand for SoCs will increase at a much faster pace. Maxim projects its serviceable available market (SAM) for the energy measurement portion of Smart Meters to reach $380 million by 2014. In addition, the Company estimates an additional $375 million of SAM in fiscal year 2014 for other Maxim support and communications products used in Smart Meters and related Smart Grid applications.