In the latest multi-billion-dollar chip deal, Germany’s Infineon Technologies will acquire Cypress Semiconductor for $23.85 per share in cash, or about $10 billion.

Cypress specializes in chips for connected devices along with related software and connectivity components. Buying the San Jose, California-based vendor will make Infineon the No. 8 chip manufacturer in the world and boost its position to the No. 1 supplier of chips to the automotive market, the company says.

“This will open up additional growth potential in the automotive, industrial, and internet of things (IoT) sectors,” said Infineon CEO Reinhard Ploss in a statement.

The deal follows other pricey silicon vendor purchases over the last few months. In March, Nvidia said it will acquire Mellanox for $6.9 billion. And in May, Marvell said it will buy ASIC company Avera Semiconductor for $650 million and then sold its WiFi connectivity business to NXP for $1.76 billion a week later.

All of these acquisitions reflect chipmakers’ interest in buying complimentary companies as the overall market slows, said Zeus Kerravala, principal analyst at ZK Research.

“Clearly there’s been a slowing down in the market so every chip vendor is looking for growth,” he said. “This improves Infineon’s position in connected devices and the IoT market, and there’s a lot of excitement about edge appliances, and those are going to need silicon. So it offsets the slowing of their [German connected cars] market by moving into a new market.”

The companies expect the acquisition to close by early 2020. But it still has some regulatory — and geopolitical — hurdles to overcome, said Charles King, president and principal analyst at Pund-IT.

“The success of Infineon’s effort hinges on global political power plays, including whether the U.S. government frowns on a substantial homegrown business being acquired by a German firm and how Cypress’s sales are impacted by the U.S.-China trade war,” King said.