Sunnyvale, CA, U.S.A. --- (METERING.COM) --- April 14, 2010 - Semiconductor designer and manufacturer Maxim Integrated Products is to acquire fabless mixed signal semiconductor company Teridian Semiconductor Corporation.
The $315 million deal is aimed at firmly positioning Maxim as the technology leader for providing energy measurement and communications electronics to the smart meter market.
Teridian has a 50 percent share in the fast growing system-on-chip (SoC) energy measurement market and is a major supplier to three of the top four major meter manufacturers in the U.S. and to over 50 meter manufacturers globally.
According to a statement Maxim will build on Teridian’s market position to accelerate sales of Maxim’s existing power management, real time clock, and interface products, as well as security IP, which are all required in smart meters.
Additionally, Maxim will leverage Teridian’s market position to accelerate the adoption of Maxim’s G3 Powerline Communications (PLC) products for use in smart meters and smart grid deployments worldwide.
Smart meter units using both SoC and multi-chip solutions are estimated to grow 10 percent annually through 2014. Since SoC based implementations are estimated to go from approximately one third of smart meters to a substantial majority over that same period, the demand for SoCs will increase at a much faster pace. Maxim projects its serviceable available market (SAM) for the energy measurement portion of smart meters to reach $380 million by 2014. In addition, the company estimates an additional $375 million of SAM in fiscal year 2014 for other Maxim support and communications products used in smart meters and related smart grid applications.
“Energy measurement and grid communications are key components of the smart grid and necessitate the deployment of new electronic meters to replace older meters worldwide,” said Maxim CEO Tunc Doluca. “The addition of the Teridian team and product line to Maxim will significantly accelerate our penetration in this fast developing market and will help us maintain our balanced business model.”
“Teridian is working with manufacturers to enable the global trend toward improving energy efficiency and conservation via ubiquitous energy measurement,” added Teridian CEO, Jerry Fitch. “As part of Maxim, we will be able to provide more comprehensive solutions to these customers.”