Silicon Labs plans to spin off analog business for at least $2 billion

Publisher:灵感发电站Latest update time:2021-02-20 Source: 彭博社Keywords:SiliconLabs Reading articles on mobile phones Scan QR code
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Silicon Labs Inc. is exploring a potential spinoff and considering a possible sale of its analog chip business, Bloomberg reported, citing people familiar with the matter. The company's shares rose 10 percent on the news.


The business could fetch between $2 billion and $3 billion, or perhaps more, according to people familiar with the matter who asked not to be identified because the matter is not public.

Silicon Labs is working with a financial adviser on a possible sale of the unit, which could attract interest from other semiconductor companies, the people said.

No final decision has been made, they said, and Silicon Labs could choose to keep the unit. Analog chips convert real-world things, such as button presses or sounds, into digital signals.

A representative for Austin, Texas-based Silicon Labs declined to comment.

Although the stock has doubled since 2016 and the company has a market value of $7.1 billion, their gains have lagged the broader industry.

Silicon Labs' chips are used by makers of smart home devices, industrial automation, vehicles and data center equipment, all of which are rapidly expanding markets.

By spinning off its analog business, Silicon Labs will focus on businesses related to the so-called Internet of Things, or chips used to bring connectivity to devices. Sales of such chips account for nearly 60% of its revenue.

While Silicon Labs is growing, it is a small chip maker that has yet to surpass $1 billion in annual sales.

Independent companies of Silicon Labs' size have been tempted by mergers and acquisitions in recent years as rising design and production costs have led to consolidation in the field.


Keywords:SiliconLabs Reference address:Silicon Labs plans to spin off analog business for at least $2 billion

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