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Microsemi Says PMC-Sierra Board Recommends Its Raised Bid

Microsemi Corp. said its raised offer to buy PMC-Sierra Inc. for $2.3 billion was deemed superior by the target’s board, after a weeks-long bidding war with Skyworks Solutions Inc. for the maker of semiconductors for network drives.

PMC-Sierra’s board has given written notice to Skyworks of its intent to approve or recommend Microsemi’s proposal, which was increased to $12.05 a share on Wednesday, Microsemi said in a statement Thursday. PMC-Sierra will be entitled to terminate its merger agreement with Skyworks, unless Skyworks makes a new proposal within three business days that would cause Microsemi’s bid to no longer constitute a superior offer.

Semiconductor makers have pursued mergers at a record pace this year as surging costs for design and manufacturing, coupled with a shrinking customer base, have created a need to bulk up. Just hours before Microsemi raised its bid on Wednesday, On Semiconductor Corp. announced a plan to buy Fairchild Semiconductor International Inc. for $2.4 billion, the latest in a spate of more than $90 billion of deals in the global chip industry in the...