Table Of Contents
Sonia Mutreja
Koyel Ghosh
SEMI Domain: Impact of M&A Deals, Innovations, and Product Launches on the Sector in Q1 2025
The growing focus on supply chain resilience helped in the revival of the semiconductor and electronics domain in the post-pandemic period. Additionally, the growth of the sector is attributed to the rising use of smart electronics in various end-use industries, including life science, automotive and transportation, construction and manufacturing, and energy and power. Also, the advent of advanced technologies such as Artificial Intelligence, quantum computing, nanotechnology, IoT, and machine learning have broadened the scope of the sector in recent times. A study conducted by Allied Market Research has shown that the strategic alliances established by leading companies in the world have contributed to the expansion of the sector in the first quarter of 2025. Furthermore, technological advancements and the launch of ingenious products have significantly improved the revenue share of the domain in recent times. This newsletter highlights the major developments that impacted the landscape positively in Q1 2025.
M&A deals creating favorable conditions for the growth of the industry
In January 2025, Ardian Semiconductor, a semiconductor investment platform, announced the acquisition of Synergie Cad Group, a semiconductor test interface company. Over the years, Synergie Cad Group has emerged as a leading player in the IC fabrication segment and has a rich clientele featuring several multinational companies across the globe. The business move is expected to expand Ardian Semiconductor’s product portfolio in the coming period and improve its market position in the long run. The technical achievements and industry experience of Synergie Cad Group are likely to aid Ardian Semiconductor in catering to the demands of its customer base holistically in the near future.
In January 2025, Onsemi, a semiconductor fabrication company, released a press statement announcing the acquisition of United Silicon Carbide, a subsidiary of Qorvo, an American multinational company specializing in wireless products. In the last few years, United Silicon Carbide has become one of the leading manufacturers of silicon carbide (SiC) power semiconductors. Furthermore, along with this alliance, Onsemi has also acquired Qorvo’s SiC JFET technology business, thus expanding its EliteSiC power product portfolio. As per the press release, the acquisition is aimed at addressing the demands for AI data center power supply companies and EV manufacturers comprehensively.
In February 2025, NXP Semiconductors, one of the largest semiconductor manufacturing and design companies, announced that it had signed a definitive agreement to acquire Kinara.ai, an AI processor company, for $307 million. One of the biggest deeptech M&A deals in India, this business move highlighted the country’s growing stature in the SEMI domain. Ravi Annavajjhala, CEO of Kinara.ai, featured that the alliance will provide the company access to global markets, thus offering an opportunity to increase its footprint around the world.
Partnerships and innovations driving the industry growth
In February 2025, Siemens Cre8Ventures, an IC start-up investor company, announced a strategic partnership with Sindermann Consulting, a premier Recruitment Process Outsourcing (RPO). Under this collaboration, both companies have decided to provide next-generation semiconductor companies access to high-quality industry expertise, thereby helping them understand the dynamic nature of this domain. Sindermann Consulting has agreed to support Siemens Cre8Venture in strategic talent acquisitions for startups and aligning recruitment strategies as per the norms and rules set by the EU Chips Act.
In March 2025, eInfochips, a product engineering and IC design company, released a press statement highlighting its decision to join the Samsung Advanced Foundry Ecosystem (SAFE™) as a virtual design partner. One of the most prominent digital tools and services providers, eInfochips has emerged as a major player in the manufacturing of IoT, AI, cloud computing, and cybersecurity solutions. By becoming a part of the SAFE™ initiative, the company will gain access to Samsung's latest process technologies, thus improving the quality of its products in the long run.
Again, in March 2025, CDIL Semiconductors, a leading semiconductor design company in India, announced that it had signed a memorandum of understanding with Infineon Technologies, a major power systems and IoT solutions supplier. The partnership is intended to capitalize on the various investment opportunities in the Indian semiconductor manufacturing industry. As part of the deal, Infineon Technologies has agreed to provide bare die wafers to CDIL, which the latter is expected to use for developing module semiconductor products. The collaboration is anticipated to play a major role in the growth of the renewable energy and e-mobility sectors.
Novel product and service launches opening new avenues for growth
In February 2025, CDIL Semiconductors, India’s leading semiconductor manufacturing company, announced the launch of the first-ever high-efficiency ICs for solar applications. Called Solar Bypass Diodes, these transistors are designed to improve the efficiency and longevity of solar panels. Prithvideep Singh, General Manager, CDIL Semiconductors, stated that the product launch will play a significant role in India’s transition toward renewable energy. Furthermore, the design of these ICs aligns with the goals of PM Surya Ghar Muft Bijli Yojana, a Central scheme to expand the adoption of residential solar power across the country.
In March 2025, Moschip Technologies Ltd., a publicly traded semiconductor company, unveiled MosChip DigitalSky GenAIoT™, a next-gen suite of digital solutions. Designed for generative AI, IoT, workflow automation, and cybersecurity applications, this new set of tools helps shorten lifecycles and optimize performance. The growing demand for smart homes, advanced consumer electronics, telehealth services, etc., has led to a surge in demand for innovative transistors and ICs, which is expected to expand the company’s operations across the globe.
Once more, in March 2025, Pragmatic Semiconductor, a flexible microchip maker, launched Pragmatic FlexIC Platform Gen 3, an online portal for mixed-signal flexible ASIC design. The platform features a process design kit that is compatible with standard electronic digital automation solutions. The tools offered by this new suite of digital technologies have been developed for AI-enabled IoT applications in healthcare and industrial sectors.
Technological advancements revolutionizing the SEMI domain in Q1 2025
In January 2025, Polar Semiconductor, a high-voltage semiconductor provider, announced that it had signed a technology agreement with Tower Semiconductor, a semiconductor company for the production of the TS18 Power Management process. Through this deal, Polar Semiconductor aims to become a leading player in the US national security framework. The agreement has made Tower’s broad 180nm technology become the sole semiconductor foundry in the US for high-powered BCD IC wafer production.
In February 2025, Valens Semiconductor and Sennheiser signed a partnership agreement to extend Valens' technology for USB and Power to Sennheiser's TeamConnect Bar Solutions. Valens Semiconductor, a fabless manufacturing company in Israel, has been one of the biggest players in the advanced video conferencing systems production segment. At the same time, the launch of TeamConnect Bar Solutions by Sennheiser has helped the company gain a huge revenue share in the AV cables and connectors market. The partnership between these two firms is expected to accelerate their growth in the near future.
In March 2025, Tata Electronics, PSMC, and Himax signed a memorandum of understanding to manufacture high-end display semiconductors and ultralow power AI sensing tools. To give effect to this deal, a brand-new manufacturing facility has been opened in Dholera, Gujarat. Announced at the IESA Vision Summit held in Gandhinagar, Gujarat, this agreement is predicted to help all three industry participants strengthen their position in the domain in the coming period.
Winding up
The semiconductor and electronics sector witnessed strong revenue growth in early 2025 due to technological advancements. The emergence of AI, machine learning, IoT, and quantum computing has led to the development of innovative ICs and transistors, thus expanding the scope of the sector. Moreover, the strategic alliances, product launches, and R&D activities by several leading companies are expected to accelerate the domain’s growth and success in the coming period.
For a holistic overview of the SEMI landscape, its latest trends, and advancements, contact our experts, today!
