Microchip acquires Israeli edge AI chipmaker Hailo
US semiconductor company Microchip Technology has signed a definitive agreement to acquire Israeli edge AI chipmaker Hailo. Hailo raised over $350 million and achieved a valuation of over $1 billion, but is being sold for a small amount after struggling to produce significant revenue.
US semiconductor company Microchip Technology (Nasdaq: MCHP) has announced a definitive agreement to acquire Israeli edge AI chipmaker Hailo. The terms were not disclosed and the transaction is not expected to have a material impact on Microchip's financial results. Hailo raised over $350 million from investors including Zohar Zisapel, Rakefet Roussak-Aminoach, Idan Ofer and Gil Agmon, and achieved a valuation of over $1 billion but is being sold for a small amount, after struggling to produce significant revenue. Industry sources believe Hailo CEO Or Danon will continue in his role and most of the company's 110 employees will move to Microchip, which will set up a second development center in Israel. Hailo has developed AI accelerators for chips embedded in end-user products, with an emphasis on computer vision. Microchip is interested in integrating Israeli technology into products such as drones, industrial robots and smart cameras.