Renesas acquiring intersil; a smart move

The world's leading microcontroller chip vendor Renesas was in the top 10 list of semiconductor chips vendors for long time. But now it has slipped a few levels down in the top ranking and also might have lost its number one microcontroller ranking to NXP. Chipmakers are overtaking Renesas through mergers and acquisitions. NXP has acquired Freescale, where the combined microcontroller product revenue has increased significantly, possibly overtaking Renesas. Finally Renesas try the same trick to beat its competitors and gain customers confidence. Renesas decided to acquire a leading analog and power management chip vendor Intersil. Intersil is a company producing affordable precision analog and power management ICs. Intersil is also into defence and aerospace. And the markets Intersil serves is quite different from other semiconductor vendors. Analog and power management, though a product portfolio in Renesas, but it hardly generates any significant revenue for Renesas. Unlike memory and other logic ICs, analog is steadily growing market and is witnessing a better growth compared to other IC chip categories.
Renesas decision to acquire Intersil is a smart move where it can leverage Intersil strengths in multiple aspects. The gains can be listed as: 1. Gettin...