Hsinchu-based fabless semiconductor firm Mediatek Inc. announced that it will acquire power management chipmaker Richtek Technology Corp. for some NT$28 billion (US$857 million) in cash.

According to a statement issued by company chairman Tsai Ming-kai, the move is in response to a spate of mergers and acquisitions that signals “the semiconductor industry is consolidating in terms of technology.” Global semiconductor M&A has totaled some US$72 billion in the first half of 2015, six times the usual average since 2010, and Tsai said that the acquisition will better position the company in not only its core business but also the burgeoning Internet of Things. Analysts were less optimistic, however, with Yuanta Securities’ George Chang quoted as stating that he retains a “hold position” on both firms as he sees few synergies in a tie-up. When the acquisition is completed, Richtek will be delisted from the Taiwan Stock Exchange and operate as a fully owned subsidiary of Mediatek.