Power management products supplier Dialog Semiconductor plc has signed a definitive agreement to acquire Silicon Motion Technology Corporation’s Mobile Communications product line, branded as FCI.
Dialog will reportedly pay $45 million in-cash, with the deal subject to regulatory approval.
FCI is a leading supplier of mobile TV SoCs in T-DMB and ISDB-T, with RF tuner-demodulator SoC solutions for smartphones, tablets and automotive Portable Navigation Devices (PNDs). The acquisition provides Dialog with a vast portfolio of complementary Connectivity-based products that includes ultra-low-power WiFi System-on-Chip (SoCs) and Modules, mobile TV SoCs and mobile communication transceiver Integrated Circuits (ICs).
In Q4 2018, FCI began producing their first ultra-low-power Wi-Fi SoC (FC9000) and accompanied this with a range of fully WiFi certified module solutions, including integrated antenna options. Their product range is designed specifically to meet the demands of battery powered IoT devices enabling direct connectivity to internet Access Points (APs), while providing banking grade security. A complete software stack together with turn-key reference designs and evaluation platforms delivers a total low-power system solution to the world’s most demanding customers.
Dialog is known as a leading semiconductor supplier in low-power technologies and has established itself as a leader for Bluetooth low energy SoC’s and configurable mixed-signal ICs (CMICs) across IoT applications. To date, Dialog has shipped more than 250 million units of Bluetooth low energy SoC’s into IoT applications. The addition of ultra-low-power WiFi positions Dialog to drive future integration with optimized combo solutions firmly on the roadmap.
“The acquisition of Silicon Motion’s Mobile Communications product line provides Dialog customers with ultra-low-power WiFi SoCs and complete modules that are certified and designed to meet the demands of today’s battery powered IoT devices,” says CEO Jalal Bagherli in a statement. “Ultra-low-power WiFi is a strong strategic fit for Dialog with the opportunity to combine Wi-Fi and Bluetooth low energy chips and modules selling into our complementary IoT, consumer and automotive markets. We are excited to welcome the Mobile Communications team to Dialog. Together, we will increase the value we can bring to our customers by building a more diversified low-power connectivity offering,” Bagherli adds.
Silicon Motion’s Mobile Communications reported $30 million in revenue in 2018 from all its current product lines, with sales primarily generated from its Mobile TV SoCs. The ultra-low power performance of the WiFi product line has achieved full Wi-Fi certification and passed all interoperability tests with an extensive range of routers. Several customers have already integrated both the WiFi SoC and complete WiFi modules into their products, creating a great foundation for future revenue growth.
The acquisition also brings to Dialog a broad range of new technologies and engineering capabilities with extensive design expertise in RF wireless communications for cellular 4G and 5G, Narrowband IoT (NB-IoT) transceiver, power amplifiers and deep sub-micron chip design. Combined with Dialog’s extensive configurable mixed signal, low power and connectivity expertise, this acquisition will provide a platform to create and combine a range of new products.
The acquired group is primarily located near Seoul, South Korea. It shipped over 65 million SoCs in 2018 and can be found in many leading smartphone models.