The purchase is designed to enhance Infosys' engineering capabilities and is set to be finalized this quarter. Credit: Shutterstock Infosys on Thursday announced plans to acquire InSemi, a company specializing in semiconductor design and embedded services, for an undisclosed sum. The acquisition, set to be finalized in the current quarter, aims to enhance Infosys’ engineering R&D expertise. The move is noteworthy given the crucial role semiconductors play in advancing technologies such as artificial intelligence (AI), 5G, quantum technology, IoT, and smart devices. “Over the last five years, InSemi has built a foundation with solid growth and design capabilities across the semiconductor value chain,” the company said in a statement. “With Infosys as our catalyst, it creates a synergistic combination that allows us to scale and bring the power of AI & Engineering R&D and next-generation technology to global clients, expanding across industry sectors. We aim to further accelerate our progress, and together with Infosys, it paves a path of innovation opening new opportunities for our teams.” Dinesh R, executive vice president and co-delivery head at Infosys, said Infosys has consistently been a leader in providing advanced solutions across various sectors through its Engineering R&D services. Regulatory concerns, whether tied to China’s reluctance to approve deals in light of US restrictions on China’s ability to source semiconductors and a partial cap on equipment and more scrutiny of larger acquisitions, are minimizing mergers and acquisitions in the semiconductor industry, said Matt Bryson, a senior vice president of equity research at Wedbush Securities. “I think the lack of mergers suggests it may be harder for large semiconductor vendors to grow, whether scaling or broadening portfolios through M&A beyond small tuck-ins, e.g., replicate an AVGO or MCHP type strategy, which would eventually result in a broader variety of SMID cap type semi names if this reality remains in place moving forward,” Bryson said. In 2021, three big deals took place in the semiconductor industry: Marvell bought Inphi for $10 billion in April; Analog Devices acquired Maxim Integrated for $20.8 billion in September; and Intel sold its SSD business to SK Hynix for $7 billion in December. The industry saw even more significant moves in 2022. AMD bought Xilinx for almost $50 billion, setting a new record for semiconductor acquisitions. At the same time, Intel bought Tower Semiconductor for $5.4 billion. Related content feature Windows 11 Insider Previews: What’s in the latest build? Get the latest info on new preview builds of Windows 11 as they roll out to Windows Insiders. Now updated for Build 26217 for the Canary Channel, released on May 15, 2024. By Preston Gralla May 15, 2024 256 mins Small and Medium Business Microsoft Windows 11 news Senators propose $32B on AI spending without firm regulatory oversight After months of meetings with industry experts and AI critics, a group of four US senators published what they say is a comprehensive roadmap for maintaining US leadership in AI development. By Lucas Mearian May 15, 2024 4 mins Regulation Government Generative AI news Meta signals the end of the road for Workplace The enterprise social network was used by millions of workers, but a shift in Meta’s priorities means the app will be phased out over the next two years. By Matthew Finnegan May 15, 2024 3 mins Facebook Collaboration Software Productivity Software news analysis There aren't nearly enough workers to support new US chip production Even as the semiconductor industry hopes to find and recruit skilled workers, a lack of talent could undermine national objectives, push up labor costs, and hinder the returns from the billions of dollars being spent, according to a McKinsey & Co By Lucas Mearian May 15, 2024 10 mins CPUs and Processors Government Manufacturing Industry Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe