Chip Maker Mergers: When 1+1=Risk

There will always be certain risks that a business can expect: a management turnover; a market correction; or taking on too much debt. In the electronics supply chain, the industry has become better at spotting risks, such as those that come with manufacturing and sourcing products offshore. But the more subtle risks, said Tom Galligani,…

distributors

Intel/Altera Could be a Distribution Game-Changer

Altera Corp.’s acquisition by Intel Corp. looks like a sure winner in all ways but one: Altera’s distribution channel. FPGA maker Altera and its closest rival Xilinx Inc. are two of the last suppliers practicing an unofficial distribution policy called “shelf-sharing.” Under shelf-sharing, a supplier refuses to be sold by (or “share shelf” with) any…

Distribution M&A Takes a Different Tack

The electronics distribution industry will never again see the kind of merger and acquisition activity that took place in the 1990s. During that period, trade journals’ rankings of the Top 100 Distributors became the Top 50 and then the Top 25. The driver, of course, was nationalization and then globalization. Distributors were filling in the…

Nokia’s Elop Must Not Become Microsoft CEO

Can Stephen Elop still forcefully defend himself against accusations he was a “Trojan Horse” moved by Microsoft Corp. inside Nokia Corp. to deliver the Finnish mobile equipment manufacturer to Redmond, Wash.? I am not a conspiracy theorist but I didn’t accept the Nokia CEO’s defense the first time he offered them in February, 2011 and…

Flextronics Trims, Acquire in bid to Win

Flextronics International Ltd.’s strategy for achieving financial stability seem simple enough except that, these days, drastic cost-cutting involving plant closures don’t necessarily go well with aggressive small and medium-size acquisitions. There’s a method to the madness, though, and company executives in recent presentations to analysts and investors have insisted this strategy is helping the contract…