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Expanding IP Horizons
MIPS Acquires Chipidea
Bricks and Mortar acquisitions are simple to conceptualize. When Ford buys a smaller car company, we assume that the other company will carry on producing basically the same products they’ve been making for years, only under the new banner. In many cases, the product line is not even re-branded, and many customers will not even be aware of the change. Administrative responsibilities are re-shuffled, corporate accounting reports look different, and, beyond that, everything appears to be business as usual from the outside.
Technology acquisitions, however, particularly those involving products like software or hardware IP, can give us that ice cream headache if we think about them too hard. Many times, the motivation for the acquisition is what throws us off the track. Some acquisitions are made simply to eliminate a competitor from the market. In other cases, the active customers are the valued commodity. Other times, the talent of specific groups of employees may be the golden goose. Or, the object may be a patent portfolio that conflicts with a strategic technology direction. It is rare to see a software or hardware IP company acquire another for the old-fashioned reason – just to make more money.
However, MIPS’s recent acquisition of analog IP supplier Chipidea seems to be just that, and the customers will probably come out ahead as a bonus. MIPS has long been a leading supplier of IP for system-on-chip (SoC) designers. According to the company, prior to this acquisition, MIPS was the third largest design IP supplier, behind ARM and Synopsys. The acquisition of Chipidea, the company says, puts them now at number two. Chipidea had claimed the number eight in that overall design IP market and the number one slot for analog IP. Why would we design engineers care about all this ranking and rating? Are we having an office pool for something more technical than sports? Probably it just gives us something to pressure the salesmen with when they come to call. “Well, I realize that you’re number four, but the number three company was just here yesterday, and they said…” [more]
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