Product category:
Communications ICs (Wired)
News Release from: Zarlink Semiconductor
Edited by the Electronicstalk Editorial
Team on 25 January 2002
Zarlink foundry sale points to design
focus
Zarlink Semiconductor has signed a definitive agreement with Dalsa Corp to sell its foundry facility in Bromont, Quebec, and related business to Dalsa for CDN$27 million.
Zarlink Semiconductor has signed a definitive agreement with Dalsa Corp to sell its foundry facility in Bromont, Quebec, and related business to Dalsa for CDN$27 million Under the agreement, Zarlink will receive from Dalsa CDN$21.6 million in cash and retain a 19.9% investment in the Bromont foundry
This article was originally published on Electronicstalk on 7 Feb 2001 at 8.00am (UK)
Related stories
Packet processor for broadband networks
Mitel Semiconductor has introduced the world's highest density AAL2 segmentation and re-assembly (SAR) device.
Quality of service is key to Gigabit Ethernet ICs
The MVTX2800 family of Gigabit Ethernet switching ICs from Zarlink Semiconductor deliver full-wire speed forwarding and leading quality of service features to metropolitan optical access equipment.
The agreement is subject to normal approvals and is expected to close within 30 days.
"This a major step in our drive to become a fabless semiconductor design company", said Patrick J Brockett, president and CEO, Zarlink Semiconductor.
"It will allow us to focus on our mission to be a leader in designing the most compelling communications and ultra low-power medical integrated circuits.
It also enables the people in the Bromont foundry to pursue their goal of becoming a world-class independent wafer plant".
The Bromont facility is an ISO-certified operation featuring CMOS process technology for digital and mixed-signal communications products.
The plant also has other processes supporting industrial, scientific and space applications, particularly high-end imaging applications.
The two companies have also signed a 3-year agreement to ensure continuity of supply for Zarlink products manufactured at Bromont.
Approximately 30% of the plant's production is geared towards Zarlink products, primarily telecommunications chips and medical products.
The balance of its output is foundry services offered to other companies around the world.
For instance, Bromont already manufactures some of Dalsa's digital imaging products, and has had a business relationship with Dalsa for ten years.
Approximately 250 Zarlink employees affiliated with the Bromont operation will be transferred to Dalsa as part of the agreement.
Zarlink does not expect that Dalsa will significantly change the employment level of the facility.
As a result of the transaction, Zarlink expects to record an after-tax loss of approximately $15 million in the fourth quarter of Fiscal 2002, representing mostly the difference between the book values of the assets sold and the sale proceeds.
The company expects to release third quarter results on 7th February 2002.
• Zarlink Semiconductor: contact details and other news
• Email this article to a colleague
• Register for the free Electronicstalk email newsletter
• Electronicstalk Home Page
Search the Pro-Talk network of sites
