Japanese chipmaker MegaChips Corp. has signed an agreement to acquire SiTime Corp., a maker of microelectromechnical systems (MEMS) and analog ICs, for $200 million in cash.
MegaChips and SiTime have complementary semiconductor products that play in the wearable, mobile and Internet of Things (IoT) markets.
SiTime has more than 1,000 customers and has shipped more than 250 million units in both the MEMS and analog markets.
Rajesh Vashist, CEO of SiTime, said in a statement that MegaChips shares a common entrepreneurial culture as SiTime and that with MegaChips financial strength and scale SiTime’s products “will rapidly accelerate the adoption of MEMS timing solutions.”
One of the major products from SiTime is a MEMS timing device that replaces quartz products in telecom, networking, computing, storage and consumer markets.
Akira Takata, president and CEO of Megachips, said in the same statement that the Japanese company “has an aggressive growth strategy” with a plan to become “one of the top ten fabless semiconductor companies” growing from organically as well as through acquisitions. Takata added that the acquisition of SiTime expands MegaChips portfolio and diversifies its customer base and immediately MegaChips becomes “a leader in MEMS.”
After the closing of the acquisition, slated for November, SiTime will retain its name and operate as wholly owned subsidiary of MegaChips.