IoT consolidation is coming

NXP to buy Freescale for $11.8B to create chip giant

NXP Semiconductor has agreed to purchase Austin, Texas-based Freescale Semiconductor in a deal valued at $11.8 billion, creating a $40 billion chip giant that will be a dominant supplier for the internet of things. Both companies are large chip providers in automotive and sensor markets as well as microcontroller vendors. As the internet of things expands and makes the embedded market more of a monolithic industry like the PC and mobile markets, we’re going to see the chip firms act accordingly. That means consolidation.