Competition watchdog probes TI acquisition of Silicon labs

The regulator is seeking market feedback before deciding on the proposed acquisition.

The Competition and Consumer Commission of Singapore (CCS) is reviewing Texas Instruments Incorporated's (TI) proposed acquisition of Silicon Laboratories Inc. to assess whether the deal could reduce competition in Singapore.

CCS said it accepted a joint application from the companies on 3 July and has launched a public consultation as part of its review. Interested parties can submit feedback until 22 July.

TI is a Nasdaq-listed semiconductor company that designs, manufactures, and sells analog and embedded processing chips to electronics manufacturers worldwide, including in Singapore.

Silicon Labs, which is also listed on Nasdaq, designs wireless connectivity chips known as system-on-chips (SoCs).

The company focuses on chip design, sales, and customer support, whilst manufacturing is outsourced.

The companies' filing showed the transaction involves products including wireless connectivity chips, microcontroller units, power management chips, sensors, and USB bridge chips.

The companies said the acquisition is unlikely to reduce competition because the markets remain fragmented, with many established competitors.

They also said customers have a choice of suppliers and can negotiate prices.

The filing added that the two companies have limited overlap in their products, with their businesses largely complementing each other.

It also said the deal is not expected to raise significant vertical or conglomerate competition concerns because the companies have only limited supply relationships and neither bundles its products.

CCS said it will assess whether the proposed acquisition could substantially lessen competition in any market in Singapore before reaching a decision.