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Technology Stocks : Semi Equipment Analysis
SOXX 426.02-2.0%Feb 3 3:59 PM EST

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From: Elroy7/19/2022 2:34:21 PM
   of 89688
Here's a topic that interests me, I don't know if anyone else cares. If you got an opinion I'd love to read it.

MXL is a small diversified semi company. It's sort of a mini legacy pre-AVGO Broadcom. Well, they've bid $93 cash + about $15 MXL stock to acquire for each share of SIMO. Both boards have approved the deal.

SIMO and MXL report Q2 July 27

SIMO shareholders vote on the MXL-SIMO deal on August 31st, and then the deal will close after / if the Chinese regulatory agencies approve the transaction (expected some time in H1 2023).

If any other semiconductor company wants to own SIMO, it seems like that a counter bid would be made AFTER the Q2 report (so they can get more info on trends) and before the vote (because after the vote, it's perhaps too late??). Is that understanding correct? Has a new buyer every appeared AFTER shareholders have approved a sale?

Anyways, August may be the last chance to get something interesting out of SIMO (if another buyer appears). I've never understood why more companies don't compete to own SIMO, they are almost a monopoly in a necessary very high volume chip (flash controllers). It seems like the product segment should have modest growth, and very very high operating profitability. I wonder why these state of the art technology semi companies (like MRVL in particular) don't want to own a lower technology semi cash cow to fund their state of the art R&D expenses.
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