Leading semiconductor products manufacturer
Microchip Technology Inc.
) 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.
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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
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
NXP Semiconductors NV
), both carrying Zacks Rank #2 (Buy), and
) that retains Zacks Rank #1 (Strong Buy).