Chip market continues to consolidate

Old carsAnalysts have predicted for the last couple of years that the semiconductor market would increasingly consolidate and today there’s more evidence that their assessments are correct.

ROHM, which manufactures analogue power IC semiconductors bought Powervation, another digital power IC company.

Powervation’s speciality is in digital power management integrated on single semiconducts and ROMH paid $70 million in cash for the company.

Powervation was started in 2006 and specialises in digital power controllers aimed at the cloud and communications infrastructure markets.

ROHM is a $3 billion company in analogue and power semiconductors and has served customers in the automotive and industrial marketplace.

It’s obvious what it’s buying in taking over Powervation – it’s getting a diversified customer base which now covers about analogue and digital technologies, along with expertise from the acquisition.