Applied Materials agreed to buy Japanese chip-making equipment company Kokusai Electric from KKR for around $2.2 billion in cash.

Why it matters: It reflects the secondary deal effects of consolidation, as rampant chipmaker mergers have put pressure on suppliers like Applied Materials to also supersize. It also comes three years after Applied Materials was blocked by U.S. regulators from buying another Japanese chip company, Tokyo Electron, and on the same day that chip stocks are surging on President Trump's policy reversal on Huawei.

  • ROI: KKR paid around $2.2 billion in 2017 to buy Hitachi Kokusai, which essentially included two different companies. One of them is being sold in this deal, while KKR continues to own the other (which makes video and communications equipment).

The bottom line: "The acquisition will expand Applied Materials' product lineup at a time when the semiconductor industry is racing to develop more advanced chips for applications including 5G networks and artificial intelligence... The U.S. company's market share is expected to rise to more than 20% from 18% after the acquisition," writes Nikkei, which first broke the deal news.

Go deeper: Computer chips are still "Made in USA"

Go deeper

Bryan Walsh, author of Future
1 hour ago - Health

Rockefeller Foundation commits $1 billion for COVID-19 recovery

A health worker performs a COVID-19 test in New Delhi. Photo: Raj K Raj/Hindustan Times via Getty Images

The Rockefeller Foundation announced on Monday that it will allocate $1 billion over the next three years to address the pandemic and its aftermath.

Why it matters: The mishandled pandemic and the effects of climate change threaten to reverse global progress and push more than 100 million people into poverty around the world. Governments and big NGOs need to ensure that the COVID-19 recovery reaches everyone who needs it.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Ex-FDA chief: Pence campaigning after COVID exposure puts others at risk — Mark Meadows: "We are not going to control the pandemic"
  2. Health: 13 states set single-day coronavirus case records last week — U.S. reports over 80,000 new cases for second consecutive day.
  3. World: Italy tightens restrictions Spain declares new state of emergency.
  4. Media: Fox News president and several hosts advised to quarantine after possible COVID-19 exposure

Fox News president and several hosts advised to quarantine in COVID-19 precaution

A political display is posted on the outside of the Fox News headquarters on 6th Avenue in New York City in July. Photo: Timothy A. Clary/AFP via Getty Images

Fox News President Jay Wallace and anchors Bret Baier and Martha MacCallum are among those recommended to get tested and quarantine after possible exposure to COVID-19, the New York Times first reported Sunday night.

The big picture: The Fox News contingent, which also included "The Five" show hosts Juan Williams and Dana Perino, were on a charter flight from Nashville to New York following Thursday's presidential debate with a person who later tested positive for the coronavirus.