Apple, Samsung supplier InvenSense may be exploring sale: Report

InvenSense shares jumped as much as 13% on the news, and were trading up 61 cents at $7.48 by late afternoon, giving the company a market capitalisation of nearly $700 million. If it succeeds in selling itself, InvenSense would be the latest company to be swept up by a wave of consolidation in the industry, as makers of chips for smartphones face intense price competition and seek scale. Smartphone chip maker Qualcomm agreed to buy NXP Semiconductors NV for about $38 billion this week, in the biggest-ever deal in the semiconductor industry.
InvenSense, which designs gyroscopes to help smartphones calculate motion, is working with an investment bank to explore its options, the people said. Chinese and Japanese companies are among interested suitors, they added. There is no certainty that the sale process will result in any deal, the people cautioned. The sources asked not to be identified because the deliberations are confidential. InvenSense could not be reached for comment. Northland Capital Markets analyst Tom Sepenzis said in a research note last month that the growth of virtual reality, especially in China, could help InvenSense's prospects. "InvenSense is certainly well positioned as there are no Chinese companies offering gyroscopes," Sepenzis said.
InvenSense, which competes with STMicroelectronics NV and Bosch Sensortech, got a boost in August when Pacific Crest Securities upgraded the rating on its stock, arguing the gyroscopes are essential to mobile phones for augmented reality games such as Pokemon Go. InvenSense's chief executive Behrooz Abdi talked up the Pokemon Go opportunity on the company's last earnings call in July, and said more consumers playing games that involve moving around with their phones would boost demand for its gyroscope products.

Related posts

Latest News

Facebook-owned WhatsApp has rolled out an update for users of iOS, the mobile op

Several Android handset manufacturers have already released patches for Android'

Google unveiled its smart home speaker called Google Home at its Made by Google

US tech giant Dell has expanded its laptop line-up in India with addition to its

File transfer and sharing app Xender on Tuesday announced that it has reached 50

Software services major Tata Consultancy Services (TCS) has been ranked as the t

Your Facebook status updates, 'likes' and even photos could help researchers bet

Technology enthusiasts in India will have to wait longer to get their hands on t

Global tech giant Samsung has expanded its range of Chrome OS powered laptops b

Google recently launched a new app, Trips. It's developed to help users plan th