Applied Materials Inc, the world’s biggest supplier of chipmaking equipment, said on Monday it would buy Japanese peer Kokusai Electric for $2.2 billion in cash from global investment firm KKR & Co Inc.
The move comes amid rising competition for providing cutting-edge semiconductors for use in fifth-generation (5G) telecommunications equipment.
The deal would push the U.S. company’s share of the chipmaking equipment market to above 20% from 18%, according to the Nikkei, which had earlier reported about the deal.
Applied expects to fund the deal with cash and debt.
Shares of Applied Materials were up 3.5% at $46.52 in trading before the bell.