SiTime Corp., a MEMS and analog semiconductor company, has signed a definitive agreement to be acquired by MegaChips Corp., a top 25 fabless semiconductor company based in Japan, The deal, worth $200-million in cash, combines two complementary fabless semiconductor leaders that provide solutions for the growing wearables, Mmobile and Internet of Things (IoT) markets.
“SiTime’s founders, Markus Lutz and Dr. Aaron Partridge, started the company with a vision of developing game-changing MEMS and analog technology to revolutionize the $5-billion timing industry,” says Rajesh Vashist, CEO of SiTime. “Through innovation, passion and focus, we’ve successfully delivered on this vision. Today, SiTime is the overwhelming leader – we have 1000 customers, 250-million units shipped, major design wins in all electronics segments, and a roadmap that extends SiTime’s MEMS technology to all timing markets.”
“Every SiTime employee is excited to be part of MegaChips, as we share a common entrepreneurial culture,” continued Vashist. “MegaChips’ financial strength and scale, with SiTime’s innovation and passion, will rapidly accelerate the adoption of MEMS timing solutions.”
While the world of electronics has delivered many innovations, the clock function, which is the heartbeat in all electronics, still uses 75-year-old quartz technology. SiTime’s innovative MEMS timing solutions replace dated quartz products in the telecom, networking, computing, storage and consumer markets, with the benefits of higher performance, smaller size, and lower power and cost.
“MegaChips has an aggressive growth strategy with a vision to become one of the top 10 fabless semiconductor companies through both organic growth and strategic acquisitions,” said Akira Takata, President and CEO of MegaChips Corporation. “MEMS components are fuelling the growth of the semiconductor industry. Through the acquisition of SiTime, MegaChips becomes a leader in MEMS. SiTime will help us expand our portfolio and diversify our customer base. SiTime technology is the perfect match for MegaChips’ solutions that target Wearables, Mobile and IoT markets such as “frizz”, our ultra-low-power smart phone Sensor Hub LSI and BlueChip Wireless, a sub-GHz RF LSI.”
“As a founding investor in SiTime, Bosch recognized early on the tremendous vision and innovation behind SiTime’s approach to MEMS timing,” said Dr. Volkmar Denner, Chairman, Board of Management of Robert Bosch GmbH. “We have closely followed their success from a Silicon Valley startup to a revenue-generating company that sells to some of the world’s largest electronics companies. We are pleased that MegaChips is acquiring SiTime and we expect a bright future for the combined companies.”