top of page
Search

Semiconductors Reset : Market Consolidation, Emerging Players, and Future Directions


Introduction


The semiconductor industry is undergoing a period of unprecedented transformation. A confluence of factors, from changing geopolitics and the rise of regional "Chips Acts" to the emergence of quantum computing, edge, and AI, is reshaping the market. These technological shifts, along with their associated challenges in supply chain resilience and power consumption, are fueling architectural innovations like RISC-V, Chiplets, advanced packaging, Silicon Photonics, Quantum Computing.


This new landscape is enabling a new generation of semiconductor firms to specialize in specific functionalities, such as AI, multimodal sensing, and automotive, without the need to build an entire System-on-Chip (SoC) from scratch. As a result, the industry's ecosystem is in flux, marked by strategic mergers and acquisitions, the rise of new companies, and the decline of some legacy incumbents.


Image from Adobe Stock Image (Akash Tholiya)
Image from Adobe Stock Image (Akash Tholiya)

While my earlier article provides a detailed look at some of Europe' key semiconductor firms (https://www.semiconductorconsulting.de/post/perspective-eu-chips-act-and-the-eu-chipset-ecosystem), this article aims to provide a quick overview of some of the key M&A activities and the emergence of new firms, with a particular focus on Europe.


Recent Mergers and Acquistions

Acquistion/Merger

Focus

Challenges

GlobalFoundries → MIPS (2025)

Add RISC-V processor IP, edge/real-time compute IP to GF foundry/solutions stack — verticalize IP+process offering.

Integration risk; customer conflict (foundry must remain neutral); proving silicon beyond IP.

Analog Devices (ADI) → Flex Logix (2024)

Acquire eFPGA / reconfigurable fabric + AI IP to combine analog strength with reconfigurable compute in SoCs.

Product integration; migrate eFPGA into ADI flows; retain Flex Logix customers.

Renesas → Transphorm (GaN) (2024)

Add GaN power devices to expand EV/industrial power portfolio (wide bandgap power).

Manufacturing & integration; go-to-market in power systems.

Renesas → Altium (PCB/EDA)(2024)

Acquire PCB/EDA/cloud tools to build system-level design platform tying hardware & software tools.

Different GTM; integrating a software business into IDM operations.

onsemi → Qorvo’s SiC JFET / United SiC (2024 → closed Jan 2025)

Expand SiC power product portfolio for EV, datacenter power & industrial markets.

Integrating SiC supply chain; scaling manufacturing & qualification.

Broadcom → VMware (closed 2023) (software / infra acquisition affecting chip customers)

Broadcom vertical expansion into software + enterprise infra after large buy; strategic for platform plays.

Regulatory and customer backlash (pricing/licensing changes).

AMD → Mipsology (software) (2023)

Add AI inference software expertise to boost AMD’s inference stack.

Integrating software team and aligning with hardware roadmap.

ADI / Others (multiple small deals) (2022–2024)

ADI and other IDMs added digital/IP assets (eFPGA etc.) to move up the stack.

Cultural and technical integration, monetization.

onsemi → DeWitt fab and other assets(2024)

Onsemi adding capacity / manufacturing assets to support power portfolio expansion (US/near-term capacity).

Capex and ramp of legacy fabs; aligning process capabilities.

(Multiple WBG / power tuck-ins across IDMs) — e.g., acquisitions of GaN/SiC IP by Renesas, onsemi

Strategic move into EV, fast-charging, datacenter power efficiency markets.

Supply chain, qualification cycles, long product lifecycles.

Various small strategic buys (2022–2025) — e.g., toolchain, software, IP buys by AMD, Intel, others

Strengthen software stacks and specialized IP (photonic, software, inference).

Aligning hardware/software roadmaps, productization timelines.


The last three years show a pattern: IDMs & foundries are acquiring IP, WBG power, reconfigurable fabrics and software/tooling to build higher-value system solutions, reduce dependency on third parties, and push “IP + process + software” bundles to customers.



AI accelerators / inference / novel compute


  1. Cerebras Systems - wafer-scale AI accelerators (WSE) - Extreme single-device scale for training / large Models

  2. Groq —inference ASICs / LPUs. - very fast inference silicon for LLMs, and large data-center push; big funding

  3. Untether AI — energy-efficient inference accelerators for edge & on-prem. focus on inference energy efficiency & new compiler tech

  4. Tenstorrent — RISC-like cores for AI (training & inference) - flexible architecture and software stack for AI workloads

  5. Mythic — analog-MAC inference IP - Analog compute for edge inference (power advantage)

  6. Lightmatter -- photonics + electronic hybrid accelerators for AI. - optical compute angle for AI throughput/efficiency

  7. Luminous Computing —Photonic Computing for AI. - targeting high-bandwidth, low-latency photonic processor

  8. Ayar Labs —chip-to-chip photonics / optical I/O - co-packaged optics for high BW interconnects


Neuromorphic Computing


Refer to my earlier article on Neuromorphic -


Quatum Computing


Refer to my earlier article on Quantum Computing -



Analog / power / WBG startups & scaleups


Transphorm (now part of Renesas) — GaN power devices (acquired). - GaN for EV charging & datacenter power


UnitedSiC / Qorvo SiC assets (acquired by onsemi) — SiC JFET tech now with onsemi.



What this means strategically

  1. IDMs & foundries are moving up the stack (IP + software + tools) to capture system value and de-risk customers — expect more tuck-ins of IP/software and more “platform” offers. (GF→MIPS, Renesas→Altium/Transphorm, ADI→Flex Logix)

  2. AI compute landscape is fragmenting — startups are chasing niches (wafer scale, photonics, inference LPUs, neuromorphic) — winners will be those who can integrate HW+SW+ops economics. (Cerebras, Groq, Untethered AI, Lightmatter)

  3. Analog / power (GaN/SiC) consolidation will keep accelerating — EV & datacenter power demand is the tailwind; expect more M&A in WBG. (Renesas, onsemi moves)

  4. RISC-V - there is a growing rise in the adoption of RISC-V across Automotive, and Embedded sectors. Rising geopolitical concerns, and alternatives for the Asian and European ecosystems will see deployment of RISCV in Telecom, Edge, Industrial and Mobiltiy sectors. (MIPs, Kneron, EdgeQ)

  5. Quantum Compute - bound to see commercialization by the end of this decade, while governemnts, crypto, hyperscalers are expected to be the initial adopters. Over the next decade, we are bound to see deployment in telecom and mobility sectors.


Europe’s Strategic Imperative


For Europe — and Germany in particular — the trajectory of semiconductors is more than just a matter of innovation; it’s a matter of sovereignty and competitiveness. The shift towards open architectures like RISC-V provides an opportunity to reduce dependency on external ecosystems while building regional strength in automotive, industrial, mobility, and telecom sectors. As geopolitical tensions reshape supply chains, Europe must accelerate its investments not only in design but also in advanced packaging, IP ecosystems, and local manufacturing capacity.


This is where the choice of semiconductor strategy becomes critical. Companies that align early with scalable, sustainable architectures such as RISC-V — while leveraging Europe’s deep expertise in automotive and industrial domains — will secure leadership positions in the next wave of intelligent infrastructure.


Let’s Connect

If your business is evaluating the right semiconductor choices, or if you’re leading an emerging semiconductor firm looking to scale in EMEA — especially in Europe and Germany — I’d be glad to discuss how to translate strategy into results.


© 2035 by Daniel Ezekiel Euro Technology Consulting. Powered and secured by Wix 

bottom of page