Maxlinear scraps nearly $4 bln deal for Taiwan's Silicon Motion

MaxLinear

26/07/2023 21:12

July 26 (Reuters) - U.S. chipmaker Maxlinear  MXL.O 
said on Wednesday it has scrapped a near $4 billion deal to
acquire Taiwan-based Silicon Motion  SIMO.O .
    Its shares fell about 12% in late afternoon trading, while
the U.S.-listed shares of the Taiwanese company surged 25%.
    MaxLinear had agreed to buy the memory controller-maker
Silicon Motion in May last year in a cash-and-stock deal worth
$4 billion. Memory controllers are used to manage data in memory
chips.
    More NAND flash components, including current and up-coming
generations of 3D flash produced by Kioxia, Micron Technology
 MU.O , Samsung  005930.KS , SK Hynix  000660.KS , Western
Digital  WDC.O  and YMTC, are supported by Silicon Motion's
controllers than any other company.
    NAND flash memory chips do not need power to retain data and
are used in smartphones, personal computers and data center
servers.
    MaxLinear was to pay $93.54 in cash and about 0.4 of its
share for each Silicon Motion's American depositary shares,
representing a total consideration of $114.34 per ADS.
    

 (Reporting by Akash Sriram and Chavi Mehta in Bengaluru)
 ((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on Twitter;
+91-74116-87774;))