EQT Partners Takes Semiconductor Supplier Private in $8.5B Transaction

NovaSilicon, listed on the NASDAQ since 2018, specializes in power semiconductors and analog chips used in automotive electronics, industrial automation, and renewable energy systems. EQT is offering $67 per share, a 32% premium to the company's undisturbed trading price, through its BPEA Fund IX.

Thesis: Analog Semiconductors

Unlike the high-profile digital chip market dominated by NVIDIA and TSMC, analog and power semiconductors represent a fragmented, less cyclical niche growing at 9-12% annually. NovaSilicon holds the number-three market position in silicon carbide (SiC) power modules used in electric vehicle drivetrains, behind Infineon and STMicroelectronics.

EQT partner Henrik Johnsson explained the investment thesis: "NovaSilicon needs $1.5 billion in capex over the next three years to build a 200mm SiC fabrication facility. That kind of capital-intensive transition is better executed as a private company without quarterly earnings pressure."

Regulatory Path and Timeline

The transaction requires approval from CFIUS in the United States, the European Commission, and Japan's Ministry of Economy, given NovaSilicon's manufacturing footprint across all three regions. EQT expects an 8-10 month regulatory timeline with closing anticipated in Q4 2026.

This marks the largest semiconductor take-private by a European PE firm, surpassing EQT's own $5.2 billion acquisition of Bright Machines in 2024. The semiconductor sector has seen approximately $35 billion in PE-backed transactions over the past 18 months as firms seek exposure to the chip supply chain buildout.