Leading semiconductor products manufacturer Microchip Technology Inc. (MCHP - Free Report) recently acquired Brussels, Belgium-based fabless semiconductor vendor EqcoLogic NV for an undisclosed amount. With this strategic purchase, Microchip will be able to expand its portfolio to better serve its customers.
EqcoLogic develops and supplies equalizer circuits for data communication services. Its products include Pro-video Equalizer for strategic defense initiative and high definition serial digital interface; uncompressed video for digital visual interface/high definition multimedia interface applications; and a broad bandwidth product titled Backplane equalizer. In addition, it also provides coaxial cable adaptors for IP camera and networked video recorder systems.
With demand for high-speed reliable data transfer over longer distances becoming the order of the day, the need for innovative equalizer and transceiver solutions is fast gaining traction. EqcoLogic’s solutions are a perfect fit for Microchip to tap this market demand.
On the other hand, Microchip’s broad customer profile, extensive supply chain and operational excellence offer tailwinds for EqcoLogic to achieve organic growth. Moving forward, EqcoLogic customers will continue to utilize the normal sales and support channels to book orders and get deliveries. Therefore, the transaction is a win-win scenario for both the companies.
Microchip develops and manufacturers microcontrollers, memory and analog and interface products for embedded-control systems, which are small, low-power computers designed to perform specific tasks. Striking features such as quality, performance, reliability, ease of use, pricing and diversity of products have been the forte of Microchip to make it one of the better-positioned companies in the semiconductor universe.
Microchip presently has a Zacks Rank #2 (Buy). Other players in the industry that are worth mentioning include Inphi Corporation (IPHI - Free Report) and NXP Semiconductors NV (NXPI - Free Report) , both carrying Zacks Rank #2 (Buy), and Supertex Inc. that retains Zacks Rank #1 (Strong Buy).