Supply Chain Management

Microchip Buys Fabless Chip Vendor Eqcologic

25 November 2013

In an effort to expand its analog building blocks for high speed data transmission, Microchip Technology Inc. has acquired European fabless semiconductor provider EqcoLogic for an undisclosed amount.

Privately held EqcoLogic's product line includes equalizers and transceivers, which are used to transmit data over longer distances using coaxial cables in higher-speed automotive and industrial networks, including Ethernet and MOST, said Ganesh Moorthy, Microchip's chief operating officer, in a statement.

Eqcologic, which is based in Brussels, Belgium, will operate as a part of Microchip's automotive business, which also includes Microchip's MOST products and technologies, a spokesperson said.

Microchip [Chandler, Ariz.] has been pushing adoption of MOST technology recently by making its proprietary MOST150 Data Link Layer Specification available to other semiconductor companies for license on a royalty-bearing basis. MOST is used largely for multimedia and infotainment networking in the automotive industry, but can be applied in transportation, A/V networking, security and industrial applications.

Microchip, which has been traditionally known for its microcontroller products, has also been focused on developing proprietary analog products to maintain double-digit growth in the sector. In its 2014 second fiscal quarter, analog revenue was up 25.5 percent from year-ago quarter and 5.1 percent sequentially, accounting for 22 percent of its overall sales. New products included one of the first temperature sensor families with 1.8V SMBus and I2C interfaces for the latest smartphone, tablet and PC chipsets.

The terms of the Eqcologic acquisition are expected to have no material impact on Microchip's December quarter results. Microchip expects sales in its 2014 third fiscal quarter to be flat to down 6 percent compared with previous quarter, when sales reached a record $492.7 million.

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