Like many industries suffering from ongoing supply chain disruptions and delays, the Semiconductor Industry has been under an intense lens due to the near infinite industries Semiconductors are used in. In fact, Toyota cut production in September by 40% simply due to an overall chip shortage. As a result, there has been a strong push for reshoring and domestic investment in chip production. In an article written by Brandon Zero, titled, “Semiconductor M&A Set to Recover as Supply Shortage Spurs Investments,” the author identifies a rebound in investment and M&A activity throughout the sector. With 80% of deals in the industry being valued at less than $1 billion for the last five years, there have been a few larger transactions that were able to pass antitrust laws, mainly GlobalFoundries’ August reported filing for IPO.
“Shifting geopolitical issues—especially as it relates to China and Europe—and post-Covid complexities have driven a new way of thinking of post-Covid investments… We think there’s going to be a rebirth of the semiconductor industry because we rely on one main source to get access to silicon-based chips.” a representative from Cota Capital’s PV Bóccasams said.
Continue reading the full article here: https://www.themiddlemarket.com/news-analysis/semiconductor-ma-set-to-recover-as-supply-shortage-spurs-investments
