Israeli Chipmaker Hailo Sold at Heavy Loss to US Firm Microchip

Hailo, once one of Israel's few promising chip companies backed by notable investors such as Zohar Zisapel, Rakefet Russak-Aminoach, Idan Ofer, and Gil Agmon, is being sold at a significant loss to the American semiconductor company Microchip. This transaction marks Microchip's first acquisition in its history. The deal was first revealed by Globes earlier this month. Microchip, a smaller chipmaker listed on Nasdaq with a market value of approximately $42 billion, has raised over $350 million to date. Despite Hailo's previous high expectations, it is reportedly being sold for a fraction of its earlier valuation to the smaller US company. The article highlights the financial setback for Hailo and the strategic move by Microchip to enter the Israeli semiconductor market through this acquisition.