Microchip Acquires ADAS And Digital Cockpit Connectivity Pioneer VSI Co. Ltd. To Extend Automotive Networking Market Leadership; Financial Terms Not Disclosed
Portfolio Pulse from Benzinga Newsdesk
Microchip Technology Inc. (NASDAQ:MCHP) has completed the acquisition of VSI Co. Ltd., a Seoul, Korea-based pioneer in automotive networking technologies, to enhance its leadership in the automotive networking market. The acquisition aims to address the growing demand for Advanced Driver Assistance Systems (ADAS) and digital cockpit connectivity, leveraging the Automotive SerDes Alliance (ASA) open standard. The automotive radar, camera, and LiDAR modules market is expected to double in revenue by 2028, driven by the adoption of ADAS and next-generation software-defined vehicles (SDV). VSI's expertise in ASA Motion Link technologies will complement Microchip's automotive networking portfolio, supporting the industry's shift towards Ethernet, PCIe, and ASA Motion Link standards.
April 11, 2024 | 12:09 pm
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Microchip's acquisition of VSI Co. Ltd. positions it to capitalize on the rapidly growing automotive networking market, particularly in ADAS and digital cockpit technologies. This strategic move is expected to enhance Microchip's product offerings and market reach in the automotive sector, leveraging the ASA open standard to meet the increasing demand for high-bandwidth, secure in-vehicle networking solutions.
The acquisition of VSI Co. Ltd. by Microchip Technology Inc. is a significant move to enhance its automotive networking capabilities, especially in the ADAS and digital cockpit segments. Given the expected growth in the automotive radar, camera, and LiDAR modules market, this acquisition strategically positions Microchip to benefit from the increased demand for advanced in-vehicle networking technologies. The integration of VSI's ASA Motion Link technologies into Microchip's portfolio is likely to offer competitive advantages in terms of product diversity and innovation, potentially leading to increased market share and revenue in the short term.
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