Exchange traded funds (ETFs) that invest in semiconductor stocks opened higher Wednesday after a deal for Varian Semiconductor Equipment (NasdaqGS: VSEA) that values the company at a 55% premium.

Varian is a holding in semiconductor ETFs such as PowerShares Dynamic Semiconductors (NYSEArca: PSI), which rallied 2% in early trading Wednesday.

Applied Materials (NasdaqGS: AMAT) on Wednesday said it will acquire Varian for $63 a share in cash, a 55% premium to Tuesday’s close, according to a press release.

“Varian is a great fit for our strategy to profitably grow share in our core semiconductor business with best-in-class technology and talent,” said Mike Splinter, chief executive of Applied.

Other ETFs for the sector include SPDR S&P Semiconductor (NYSEArca: XSD) and iShares PHLX SOX Semiconductor Sector Index Fund (NasdaqGM: SOXX).

“Varian Semiconductor has emerged as the leader in the ion implant segment of the chip equipment industry over the past several years,” said Morningstar analyst Andy Ng in a recent note on the company. “The firm presently benefits from healthy levels of demand for ion implant tools from chipmakers.”

PowerShares Dynamic Semiconductors

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