Consolidation In The Semiconductor Market - What It Means For Jobs
30/04/2017 by Harley Lorence
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The past few years has seen a huge amount of consolidation in the semiconductor arena with recent statistics revealing that in 2016 alone M&A agreements in the industry topped $50 billion. And while this is down on the historic high of $103.8 billion reported in 2015, the sheer number of mergers and acquisitions demonstrates the drive for increased efficiency and profitability within the sector.
The drive for consolidation within the industry has been fuelled by several key factors- some commentators, for example, have attributed much of the reported activity to slow growth within end-use equipment markets such as PCs, tablets and smartphones and an increased focus on new markets such as the Internet of Things, wearable technology and the highly automated automotive arena. However we are also seeing increasing numbers of acquisitions by companies looking to bolster their own capabilities by acquiring technologies and assets of other players in the market. Cypress’ acquisition of Broadcom’s wireless Internet of Things business and related assets to strengthen its position in the embedded systems market and consumer IoT market is one such example.
It remains to be seen what is in store for the semiconductor arena over the next few years but as companies increasingly respond to a rapidly changing landscape, it is highly likely that we are not going to see a drastic slowdown in mergers and acquisitions.
Despite reports suggesting that M&A activity has resulted in significant layoffs, it would be remiss to suggest that the market for jobs within the semiconductor arena is dwindling. There have, of course, been casualties however there will be plenty of opportunities for professionals within the field as employers in the space call for new skill sets to drive innovations in the market.
And whether this stems from new entities born out of a merger, or existing players in the arena, one things is for sure. The rate at which technology is advancing means that semiconductor companies will always be on the hunt for professionals in a range of areas – from engineers and analysts right through to marketing and sales people – to ensure their products are not only cutting edge but that they are also marketed effectively in today’s global market place.
Get in touch today to see what opportunities we have at some of the leading players in the semiconductor arena.