ST grows its capability in secure microcontroller market
STMicroelectronics, one of the top three microcontroller vendor in the secure access market, has strengthened its position in ID-chip market by acquiring ams’ assets related to NFC and RFID reader business. ST says the acquired assets such as IP, technology, products complement its secure microcontroller solutions serving mobile devices, wearables, banking, identification, industrial, automotive and IoT markets. In terms of human resources, ST to get approximately 50 technical experts from ams.
“Security and NFC connectivity are key prerequisites for the broad rollout of mobile and IoT devices anticipated in the coming years. This acquisition builds on our deep expertise in secure microcontrollers and gives ST all of the building blocks to create the next generation of highly-integrated secure NFC solutions for mobile and for a broad range of Internet of Things devices,” said Claude Dardanne, Executive Vice President and General Manager of STMicroelectronics’ Microcontroller and Digital ICs Group. “We welcome this highly competent team from ams into ST for the benefit of our customers.”
ST said the first NFC controller, leveraging the acquired assets, is already sampling to lead customers, as well as a new high-performance, highly-integrated System-in-Package solution which combines this NFC controller with ST’s secure element.
ST said it acquired the ams assets in exchange for a (i) cash payment of $77.8 million (funded with available cash), and (ii) deferred earn-out contingent on future results for which ST currently estimates will be about $13 million but which in any case will not exceed $37 million.
Among the top-10 semiconductor vendors,STMicroelectronics is one of the rare company which has not really acquired any semiconductor companies in last five years or more except this not-so-big assets from AMS, and it still stays in the top-10 chip supplier ranking consistently from many years.
Author: Srinivasa Reddy N