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Industry News Dialog Semiconductor acquires the German semiconductor manufacturer Creative Chips

| Editor: Florian Richert

Dialog Semiconductor has announced the acquisition of the Bingen-based semiconductor manufacturer Creative Chips. With this acquisition, Dialog Semiconductor intends to expand its portfolio to include industrial IoT products.

German-British chip manufacturer Dialog Semiconductor has announced the acquisition of German semiconductor manufacturer Creative Labs.
German-British chip manufacturer Dialog Semiconductor has announced the acquisition of German semiconductor manufacturer Creative Labs.
(Source: Dialog Semiconductor)

Dialog Semiconductor today announced the acquisition of Creative Chips, a semiconductor manufacturer. Creative Chips, headquartered in Bingen near Frankfurt am Main and with a separate design center in Dresden, is a Fabless semiconductor manufacturer of custom integrated circuits (digital ASICs and mixed-signal ASICs). In addition to chip design, ASIC design, series production and testing of highly complex ASICs, standard ICs are also offered, including a range of standard IO-Link IC products for industry 4.0.

"The acquisition is key to Dialog. Creative Chips gives Dialog a strong foothold in the IIoT market while complementing the current mixed-signal business very well," said Jalalal Bagherli, CEO of Dialog. The Industrial Internet of Things, IIot for short, is one of Dialog's strategic target markets. With its customer-specific mixed-signal ICs, Creative Chips addresses the German industrial and automotive markets in particular. The strategic acquisition will enable Dialog to acquire an additional product portfolio and an engineering team, as well as an industrial customer base that includes customers such as Beckhoff, Siemens, Braun, and Otis.

Dialog Semiconductor, headquartered near London, is a provider of highly integrated semiconductor solutions for power management, audio and near field wireless communications.
Creative Chips is expected to generate sales of around 20 million US dollars in 2019. Sales are expected to grow by more than 25% per year over the next few years. Dialog will pay around 80 million US dollars for Creative Chips. Additional compensations of up to $23 million are expected based on future revenue targets in 2020 and 2021. The transaction is expected to close in the fourth quarter of 2019.

This article was previously published in German on the Elektronikpraxis.

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