The Cross-Border Chip Bet

growth strategy

What this case is about

Your client is a U.S.-based manufacturer of Wi-Fi and electronic chips with a net worth of $1 billion. It is considering acquiring a European chip manufacturer with a net worth of $2 billion. Should the client acquire the target, or invest in its own research and development instead?

Objective

Compare the two investments’ estimated financial returns and strategic fit, then recommend a course of action with the key risks and conditions for proceeding.

Skills this case tests

Structuring the problem
Working the numbers
Judgement and recommendation
Reading the data
Communicating clearly

This is an interview practice scenario. Figures in the brief are case inputs, not current market research.