Maxim Integrated Products (MXIM) designs, develops, manufactures and markets a broad range of linear and mixed signal integrated circuits, currently referred to as analog circuits. The company also provides a range of high frequency design processes and capabilities that can be used in custom design.

So at a time like this what might make such a company, which competes with Analog Devices (ADI) and Texas Instruments (TXN) worth a look-see? Well to begin with, it has no short-term debt. That's right, zero debt. Now add to this a cash balance of $798.34 million. That's almost $1 billion!

Private equity firms are certainly hungry for semiconductor firms, such as the $17.6 billion buyout of Freescale. And recently there was the proposed $5.5 billion deal for Advanced Semiconductor Engineering.

An analyst at Prudential, Mark Lipacis, has put together a buyout list. Basically, he focuses on what private equity firms like -- lots of cash and cash flow.

His picks? Here's a look:

Altera (ALTR)
Analog Devices (ADI)
Linear Technology (LLTC)
Maxim Integrated Products (MXIM)
Texas Instruments (TXN)

Remember, there's a reason that semiconductor companies have lots of cash: the industry is cyclical. If the economy goes south, these companies can wait it out.

And it does look like the economy is slowing down. So if these semiconductor companies take on huge amounts of debt, might they be vulnerable?

Perhaps. But so far, it seems like private equity firms are far from concerned.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.