MediaTek recently announced that it will acquire Intel’s Enpirion power management chip product line. The acquisition will include all related assets and MediaTek will complete the transaction via its subsidiary, Richtek. According to reports, the deal will cost about $85 million. MediaTek’s schedule shows that it expects to complete the transaction in the fourth quarter of this year. Of course, this will be after it completes all relevant legal procedures.
MediaTek pointed out that after the completion of the merger, it will expand the company’s product line. Furthermore, it will focus on high-frequency and high-efficiency power solutions for FPGA, SoC, CPU, and ASIC. Its target will be enterprise-level system applications to help expand the scale of operations. MediaTek believes that this will improve the company’s business performance and competitiveness.
Intel’s official website shows that the Intel Enpirion power management module is a DC-to-DC step-down conversion product. It is a higher-end solution on the market that can also integrate components required for power management to meet FPGA, ASIC, CPU, and other semiconductor power requirements.
Power management chips are commonly applicable in devices that use batteries as power sources. They are responsible for the conversion, power distribution, detection. These chips are also applicable in the power management of electrical energy in electronic equipment systems. They are mainly used to convert source voltage and current into microprocessors, sensors, and other loads.
The power management chip has a wide range of applications, and its development is critical to improving the performance of the whole machine. Recently, the power management chip market has been constantly changing.
Power management chip market has some major sales this year
In July of this year, ADI announced that it had reached a final agreement with Maxim. ADI will acquire Maxim in a wholly-owned transaction. Its market share is expected to rise to 14%, and the combined market share with TI will reach 33%. The market share of giants is rising, and end customers will inevitably increase other suppliers in order to ensure a stable supply.
Earlier, there was also news that Apple’s iPhone production line was facing a shortage of power management chips, or it was difficult to meet the demand for the holiday season at the end of the year. Industry insiders also pointed out that with the development of 5G, the number of power management chips required has increased dramatically. A 4G smartphone requires 1 to 2 power management chips, and a 5G smartphone requires 10 such chips. Therefore, power management chips are important for iPhone 12 that supports 5G communication technology.
MediaTek has been actively developing its ASIC business recently and has also obtained an order from Google to integrate the Intel Enpirion product line. This can provide a more complete solution for its layout in the server market.