MediaTek spends $85 million to acquire Intel's power management chip business

SMM: on the evening of November 16, Taiwan MediaTek announced that it would acquire assets related to Intel's Enpirion power management chip product line through its subsidiary Lixin, with a total transaction value of about US $85 million (RMB 559.7 million). The transaction completion date is tentatively scheduled for the fourth quarter, and the actual date will be delivered after the relevant legal procedures are completed.

MediaTek pointed out in its announcement that the purpose of this merger is to expand the company's product line and provide integrated high-frequency and high-efficiency power solutions for FPGA, SoC, CPU and ASIC, targeting enterprise-level system applications, helping to expand business scale and improve business performance and competitiveness.

Intel's website shows that the, Intel Enpirion power system chip (PowerSoC) module is a DC-DC buck converter that integrates almost all the components needed to build a power supply without compromising performance or efficiency and meets the most stringent power requirements of FPGA, ASIC, processors and other semiconductors.

Some media interprets that MediaTek has recently actively developed server ASIC business and also obtained orders from Google (Google). The integration of Intel Enpirion product line can provide more perfect solutions through its layout, especially in 5G base stations, the number of power management chips will increase greatly in the future, MediaTek can also integrate existing 5G modem chips and expand more integration solutions.

The market for power management chips has been volatile recently, with Yadno Semiconductor (ADI) announcing its $17 billion acquisition of Maxim, in July as one of the biggest mergers and acquisitions of the year. MediaTek's merger and acquisition of the Intel Enpirion product line is also expected to enter the higher-end market, the layout of more product lines, ushered in new growth momentum.