Germany’s Elmos Semiconductor is weighing a potential sale as its founders contemplate exiting the business, according to three people familiar with the matter. The company, valued at roughly €2.3 billion ($2.5 billion), has reportedly hired Morgan Stanley to advise on the process.

Elmos and Morgan Stanley declined to comment. The company has begun preliminary discussions with potential buyers, including global semiconductor firms, one source said. German chipmaker Infineon Technologies and U.S.-based Qualcomm have been cited as logical suitors, given their interest in expanding automotive chip capabilities and broadening product offerings. Infineon declined to comment, while Qualcomm did not respond immediately.

Founders Retain Majority Control

Founded in 1984 by management consultant and physicist Klaus Weyer, university professor Gunter Zimmer, and Norbert Ellenberger, Elmos specializes in semiconductors for vehicle safety, lighting, and powertrain systems. Co-founder Weyer holds a 20.7% stake via his private investment vehicle, Weyer Beteiligungsgesellschaft, with other founder-linked entities controlling a majority of the company, giving insiders effective control over any potential transaction.

Sources cautioned that Elmos could ultimately decide against a sale and noted that any deal would likely face close scrutiny from German regulators.

Focus on Chip Design After Divestment

In late 2024, Elmos sold its Dortmund wafer fabrication facility to U.S. industrial technology company Littelfuse, enabling it to concentrate on chip design while outsourcing manufacturing. The company posted record sales of €582.6 million in 2025, slightly above the previous year, though earnings before interest and taxes fell roughly 13% to €125.7 million. It expects revenue to rise about 11% in 2026, with margins improving to around 24%.

Semiconductor Sector Consolidation

Elmos’s potential sale comes amid a wave of consolidation in the semiconductor industry, as companies seek scale and expanded capabilities in automotive and industrial chips. Amsterdam-listed chip equipment maker BE Semiconductor Industries has reportedly attracted takeover interest from U.S. firms Lam Research and Applied Materials.

Recent deals underscore the trend: Qualcomm acquired British chip company Alphawave for $2.4 billion last year, while Infineon purchased Marvell Technology’s automotive Ethernet business for about $2.5 billion in cash.