Tag Archives: Internet Of Things

may10_abtech

Microchip, Intel announce collaboration to improve security

Microchip Technology Inc., a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, has announced a collaboration with Intel to implement Intel® Enhanced Privacy ID (Intel® EPID) technology into its products. Intel EPID is a sophisticated, proven approach to device authentication that provides both security and privacy for the on-ramp to the Internet of Things (IoT).

At the Intel Developer Forum this week in San Francisco, attendees visiting Intel’s IoT Community exhibit can view a demonstration of the Intel EPID Protocol running on Microchip’s IoT Security Platform.

“Microchip has long recognized the importance of security in IoT applications,” said Ian Harris, vice president of Microchip’s Computing Products Group. “Collaborating with Intel to integrate its proven Intel EPID technology demonstrates Microchip’s steadfast commitment to providing the very best IoT solutions, by working to enable designers with the safe and secure interoperation of their ‘things’ with Intel’s devices, gateways and servers.”

“By utilizing Intel EPID technology, Microchip’s customers can maintain end-to-end security and privacy in their IoT products and services, which helps them to protect data from device to cloud, minimizes unauthorized access of endpoints and gateways, and will promote a common security framework for IoT platforms,” said Lorie Wigle, general manager of Internet of Things Security at Intel.

As more devices connect—devices that carry information about our homes, our businesses, our communities and ourselves—the need is paramount for safe and secure communications that protect our data and our identities. Intel EPID provides authentication, allowing a service provider to verify that an end user belongs to a group authorized to access the service. It also helps protect end-user privacy, enabling them to receive the service without revealing their identity (they cannot be traced by the service provider).

Microchip is an industry leader in microcontroller, mixed-signal and analog semiconductors, with a long history of providing cost-effective, low-power solutions to the designers and manufacturers of electronic devices. By implementing the Intel EPID standard, along with other security features, Microchip is helping to deploy these devices across the Internet with privacy and security for both the end user and service provider.

Steve Sanghi, president and CEO of Microchip.

Microchip Acquires ISSC Technologies

Microchip Technology Incorporated, a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, and ISSC Technologies Corporation (ISSC) today announced that Microchip has signed a definitive agreement to acquire ISSC, a leading provider of low power Bluetooth and advanced wireless solutions for the Internet Of Things (IoT) market. ISSC is publicly traded on the GreTai Securities Market and is headquartered in Hsinchu, Taiwan (Hsinchu Science Park) with customer service or research activities in Shenzhen, China and Torrance, California. In calendar year 2013, ISSC had net sales of US$69.2 million and an operating margin of 18.9% based on their reported results under International Financial Reporting Standards.

Under the terms of the transaction, Microchip will commence a tender offer to acquire all of the outstanding shares of ISSC for New Taiwan (NT)$143 per share (approximately US$4.74 per share, based on an assumed exchange rate of NT$30.15 per US$) in cash, and acquire any remaining shares pursuant to a follow-on merger at NT$143 per share minus any dividends paid by ISSC prior to the close of the transaction. The transaction represents a total equity value of about NT$9.9 billion (approximately US$328.5 million), and a total enterprise value of about NT$8.9 billion (approximately US$294.3 million), after excluding ISSC’s cash and investments on its balance sheet of approximately NT$1 billion (approximately US$34.2 million). The acquisition is expected to be accretive to Microchip’s non-GAAP earnings per share in the first full quarter after completion of the tender offer at which time Microchip will own the majority of the outstanding shares of ISSC and consolidate its financial statements with Microchip’s.

The acquisition has been approved by the Boards of Directors of each company. The tender offer is expected to close in the third quarter of calendar 2014. The follow-on merger is expected to close in the fourth quarter of calendar 2014, subject to approval of the follow-on merger by ISSC stockholders,
regulatory approvals and other customary closing conditions. In connection with the transaction, Microchip has entered into an agreement with certain ISSC shareholders holding approximately 28 percent of the outstanding shares of ISSC pursuant to which such shareholders have committed to tender approximately 17 percent of the outstanding shares of ISSC, which represents all unrestricted ISSC shares owned by them.

“We are delighted to have ISSC join the Microchip team. ISSC’s deep domain knowledge in Bluetooth and wireless technologies, and strong position in the Consumer markets, complement many of Microchip’s initiatives in wireless and IoT areas. We believe that combining ISSC’s strengths in wireless products and technology with Microchip’s brand, channel and operational strengths will enable significant cross selling opportunities,” said Ganesh Moorthy, COO of Microchip Technology.

“We are pleased to join Microchip Technology, a premier company in the semiconductor industry. Microchip has demonstrated consistent profitability, technology leadership and growth in its core businesses. We believe that this acquisition provides the best vehicle for us to realize significant value for ISSC shareholders, as well as the opportunities from scale of the much stronger sales and manufacturing platforms of Microchip,” said Max Wu, Chairman of ISSC.

“This transaction represents the first major overseas acquisition by Microchip and the purchase will be funded with a portion of Microchip’s foreign cash and will not require any additional borrowings from our line of credit. We believe the combination of a very strategic transaction that provides low power Bluetooth technology, ISSC’s strengths and capabilities and our use of foreign cash makes this a compelling transaction for the shareholders of both companies,” said Steve Sanghi, Microchip’s President and CEO.