STMicro in chip talks with Motorola

Published: 16-Oct-2002


According to today's Financial Times, STMicroelectronics, Europe's largest semiconductor company is in talks to buy Motorola's semiconductor operations in a deal that would create the world's second largest chip manufacturer after Intel of the US. A deal such as this would represent an exciting consolidation in the semiconductor industry to date and one of the biggest foreign acquisitions of a US technology company. ST, part owned by the French and Italian governments, on Tuesday denied it had held merger conversations with Motorola or any other competitor. But senior French and Italian officials said the two companies were discussing a deal that would create a chip business with annual sales of more than $11bn (€11.1bn). One said a deal could come as early as next year if the talks, backed by both the French and Italian governments, succeeded.

Source: Financial Times

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