German semiconductor group Elmos is exploring a sale, according to three people familiar with the matter, as its founders consider exiting the business. The company, with a market capitalization of approximately €2.3 billion (approximately $2.5 billion), has engaged Morgan Stanley to advise on the process, the sources said, requesting anonymity due to the confidentiality of the discussions.
Elmos and Morgan Stanley declined to comment.
The company has begun early-stage discussions with potential buyers, including global semiconductor firms, two of the sources told Reuters. Potential suitors could include German chipmaker Infineon Technologies and U.S.-based Qualcomm, one of the sources suggested, as both companies seek to expand their automotive chip capabilities and product offerings.
Infineon declined to comment. Qualcomm did not immediately respond to requests for comment.
The discussions come amid increased merger and acquisition activity in the global semiconductor sector, as companies aim to bolster their positions in areas such as automotive and industrial chips. Global chip sales reached a record monthly value in November 2025, with the largest increase in purchases occurring in the Asia-Pacific region.
Founded in 1984, Elmos designs semiconductors used in vehicle safety systems, lighting, and powertrains. Co-founder Wehr, through his private investment firm Weyer Beteiligungsgesellschaft, holds a 20.7% stake in the company, with other founder-affiliated entities controlling a majority stake, giving insiders effective control over any potential deal, according to company documents.
At the end of 2024, the chip company sold its semiconductor wafer business in Dortmund to U.S.-based industrial technology company Littelfuse, allowing Elmos to focus on chip design while outsourcing production. Elmos reported record sales for 2025, reaching €582.6 million, slightly above the previous year. However, the company’s earnings before interest and taxes declined by approximately 13% to €125.7 million. The company anticipates revenue growth of around 11% for 2026.
Reuters sources cautioned that Elmos may not proceed with a sale, and added that any deal would likely face scrutiny from German regulators.
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