Cramer's 'Mad Money' Recap: Cheap Chips

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As private equity firms are looking to get into semiconductor companies "on the cheap," Jim Cramer told viewers on his "Mad Money" TV show Monday that there are two plays investors should consider: Atheros Communications (ATHR Quote) and Broadcom (BRCM Quote).

Cramer believes that investors could make some money from Atheros and Broadcom, just like they might have with Freescale Semiconductor (FSL Quote), a company everybody "hated with a passion" once Motorola (MOT Quote) spun it off.

While Freescale was "a forgotten-about tech stock that looked like nobody wanted" to own it, Cramer urged people to buy it -- and he was right. Eventually firms were fighting for it, which caused a bidding war. Freescale recently got taken over at a 30% premium, he said.

Although market players may no longer be able to make money off of Freescale, Atheros and Broadcom are two plays that Cramer is blessing right now. After tech and especially semiconductors "got ripped to pieces last summer," Cramer believes that now the environment is different for tech.

"It's in favor now and on fire," he said.

The first of two important things about Freescale that made it a good takeover target is that it was "a cheap stock that was going places," which, though they might not have been great places, were "good enough" places, he said.