“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “ . ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA, CLICK HERE AND PLEASE CALL ME. 520-975-5207 or email me walterunger@ccim.net. VIEW ALL OF WALTERS LISTINGS.
By Hayley Ringle – Reporter, Phoenix Business Journal
Chandler-based Microchip Technology Inc. is poised for an expansion of its technology, increased revenue opportunities and a move up the global semiconductor sales rankings following the announcement of its $10.15 billion acquisition of Microsemi Corp., according to one Scottsdale analyst.
Since Microchip was ranked as the 27th largest global semiconductor supplier in 2017, and Microsemi (Nasdaq: MSCC) was ranked 39th, the combined sales of $5.6 billion of the two companies would rank Microchip at No. 20 last year, said Brian Matas, vice president of market research for Scottsdale-based IC Insights, a semiconductor market research and consulting company.
“This means the Valley will be headquarters to or have a significant manufacturing presence from three of the world’s top 20 semiconductor companies: Intel, Microchip, and ON Semiconductor,” Matas said.
Microchip (Nasdaq: MCHP) is a top global supplier of microcontrollers, analog, and mixed-signal devices, with analog and digital functions on the same chip.
The company announced March 1 it was acquiring Aliso Viejo, California-based semiconductor and system solutions provider Microsemi for an enterprise value of about $10.15 billion, Microchip’s largest corporate acquisition to date.
Microchip, which had sales of $3.8 billion during 2017, had its revenue split from about 35 percent industrial, 25 percent auto, 24 percent consumer, 9 percent computing and 5 percent other, Matas said.
Meanwhile, Microsemi, which had 2017 sales of $1.8 billion, saw its revenue split between 31 percent communications, 29 percent military and aerospace, 20 percent computing, 11 percent industrial and 9 percent other, he said.
“For Microchip, the acquisition presents a solid opportunity to expand into end-use markets such as government and military and communications, where it is not presently quite as strong,” Matas said. “Microsemi’s product line includes many specialty analog and mixed-signal chips that have strict reliability requirements that are required in defense applications. Many of these product lines enjoy above-average margins and have a long shelf life. Microchip did a pretty good job of growing the gross margins on products it acquired through its Atmel purchase in 2016. I imagine it could do the same with the Microsemi products.”
Microchip also sees a strong opportunity to cross-sell its existing devices into Microsemi markets. For example, Microsemi gets 60 percent of its revenue from the communications and military and aerospace markets, while Microchip gets less than 10 percent in these industries, Matas said.
“Microsemi also has good exposure in the enterprise/cloud data center market with its switching and storage controller chip business, which is a lucrative draw for Microchip,” he said.
Since Microsemi has 4,800 employees across the globe, this makes Microchip an even larger company, which “likely will bring more investment and people into Arizona,” said Jim McGregor, founder and principal analyst of Tirias Research in Show Low.
“It’s good to see Microchip growing,” McGregor said. “This (Microsemi) is a very good fit for them. It’s about having more of that intellectual property to put on their solutions.”
Because of Internet of Things growth, where devices such as thermostats and lights are connected online, the applications are nearly limitless, he said.
“They (Microchip) don’t make as much per chip, but they make billions of them,” McGregor said. “Their growth opportunity is almost unlimited. Companies need more intellectual property to compete in the merging industry.”
Mergers and acquisitions have become the norm in the semiconductor industry as the number of companies get smaller across the globe with each new merger.
Microchip bought San Jose-based Atmel Corp. last year for $3.56 billion, which was previously its largest acquisition. Microchip also bought San Jose-based Micrel Inc. in August 2015 in an $839 million deal.
Phoenix-based ON Semiconductor Corp. (Nasdaq: ON) acquired Fairchild Semiconductor International Inc. in September 2016 for $2.4 billion. This deal made ON the largest supplier of power semiconductors in the world and a top 10 non-memory semiconductor company.
Outside the state, there have been many mergers, including San Diego-based Qualcomm buying Netherlands-based NXP Semiconductors for $38.5 billion in 2016, after NXP acquired Austin-based Freescale Semiconductor for $11.8 billion in 2015.
“The industry has changed drastically over the past decade,” McGregor said. “There’s still a lot of startups out there, but a lot of them are focused on creating innovative technology that could be acquired. I don’t think it’s the best thing for the industry but it’s a change in philosophy.”
ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA, CLICK HERE AND PLEASE CALL ME. 520-975-5207 or email me walterunger@ccim.net
KASTEN LONG Commercial Group and AMA Events, Resources & Education For Apartment Owners
Timeline of Arizona from 900 BC – 2017
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
FROM ME:
Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also internationalClick here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
PLEASE CALL ME 520-975-5207 OR E-MAIL ME walterunger@ccim.net
ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA, CLICK HERE AND PLEASE CALL ME. 520-975-5207 or email me walterunger@ccim.net
CLICK HERE for Map of Apartments Under Construction or in Pipeline.
WEEKLY APARTMENT CLOSING UPDATE THROUGH February 23, 2018, Phoenix Arizona Metro.
WEEKLY APARTMENT CLOSING UPDATE THROUGH February 16, 2018, Phoenix Arizona Metro.
WEEKLY APARTMENT CLOSING UPDATE THROUGH February 9, 2018/ Phoenix Arizona Metro.
WEEKLY APARTMENT CLOSING UPDATE THROUGH February 2, 2018/ Phoenix Arizona Metro.
WEEKLY APARTMENT CLOSING UPDATE THROUGH January 25, 2018/ Phoenix Arizona Metro.
8 Reasons You Should Invest in Land
Timeline of Arizona from 900 BC – 2017
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
DOT – LOOP 202 / SOUTH MOUNTAIN FREEWAY / PHOENIX AZ – UNDER CONSTRUCTION
ARIZONA FACTS – YEAR 1848 TO 2013
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
- The average age of the population is 34 years old.
- The health cost index score in this area is 102.1. (100 = national average)
- Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).
PHOENIX PROJECTED AS NUMBER ONE US HOUSING MARKET FOR 2017
LIST OF ECONOMIC DEVELOPMENT PROJECTS IN PINAL COUNTY, REVISED 2-14-17
Reasons to Consider me for Commercial Referrals – I have the Knowledge and Experience
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Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
2016 Official Arizona Visitors Guide
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
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Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
Direct: 520-975-5207
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