"Only the largest semiconductor companies can tackle all of these challenges, and the result has been a wave consolidation. Intel, the leader in embedded because it leverages the PC hardware and software ecosystem, plans to buy Altera for $16.7 billion. The number two company, Freescale is merging with NXP Semiconductors in a $40 billion deal. Avago, already a player in this space through its LSI deal, is the process of acquiring Broadcom for $37 billion. Other players in this space such as Cavium, AMD, Marvell and AppliedMicro could also be acquisition targets as companies like Qualcomm and Intel, as well as consortiums in China, seek to expand into embedded growth areas. Skyworks also announced plans to acquire PMC-Sierra earlier this week."