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ST-Infineon merger likely to face competition probe, says analyst

Posted: 20 Aug 2007 ?? ?Print Version ?Bookmark and Share

Keywords:ST-Infineon merger? competition probe? analyst report?

The rumored merger of STMicroelectronics NV and Infineon Technologies AG, Europe's two largest chip companies, could draw attention from the European Union's competition authorities over power semiconductors, according to market research firm IMS Research Ltd.

IMS Research has calculated that an ST-Infineon merger would create a power semiconductor giant that would hold one-third of the European power discretes market, which could be enough to attract an enquiry from the E.U.'s competition directorate. The combined company would also dwarf its competitors in the power management market, according to IMS Research.

The combined company would become by far the largest global supplier of power discretes, with a market share of more than 15 percent, significantly more than current leaders, Fairchild and International Rectifier. The tie-up would also see it leapfrog past these two companies as the largest supplier of power MOSFETs.

"As well as dwarfing other suppliers to the power discretes market, this merger would see the company dominating the global power ICs market, making it huge in comparison to current largest suppliers Texas Instruments and National Semiconductor," said Ash Sharma, research director at IMS Research, in a statement.

Spokesmen at both STMicroelectronics and Infineon have declined to comment on the reports that ST was preparing a bid for Infineon.

- Peter Clarke
EE Times Europe




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