LSI to sell chip unit to Infineon
Aug 21, 2007
Chip maker LSI Corp. said Monday it will sell its mobility products unit to Infineon Technologies AG for $450 million in cash.
The deal also includes a performance-based payment of as much as $50 million due in the first quarter of 2009.
The mobility products unit designs semiconductors and software for cell phone handsets, as well as chips for satellite digital audio radio applications, LSI said.
After the sale closes, about 700 LSI employees will become part of Infineon's communications solutions unit, LSI said. The company added that Infineon will begin intellectual property, transition services and supply agreements with LSI.
LSI said the sale stems from a strategic review the company underwent after its $4 billion acquisition of Agere Systems in April.