LSI Logic carves out consumer biz to Magnum Semi

June 27, 2007 – In a move to further reduce its overhead and narrow focus six months after ponying up $4 billion for smaller rival Agere Systems Inc., LSI Logic Corp. has agreed to sell its consumer products business, including the DoMiNo, Domino and Zevio architectures, products and related IP, to Magnum Semiconductor Inc. Terms were not disclosed, although Magnum said it will get help from private equity investment to fund the deal.

With the move LSI Logic gets even leaner and more focused on its storage systems and semiconductors targeting storage, networking and mobility applications. It also will trim $290-$310 million from GAAP operating expenses in 3Q07 and another $275-$295 million in 4Q, plus “further progress on operating expenses in 2008.” About 900 positions (~13% of nonproduction workforce) will be eliminated (though Magnum says it will “offer employment to a significant number” of those employees).

“We are accelerating our timetable for aligning the resources of the new LSI with market opportunities and focusing on those markets where we possess leading technology and sustainable competitive advantages,” said Abhi Talwalkar, LSI president and CEO, in a statement.

Meanwhile, for Magnum, the additions bolster its lineup for chips, software, and platforms for consumer entertainment systems, including A/V chips, digital TV, plus high-definition media processing and low-power graphics. “By taking this step we bring in people, talent and products that will accelerate our revenue ramp and our R&D efforts. Magnum now becomes one of the leaders in audio/video chips and software for the consumer electronics market. We also gain access to the market for professional broadcast solutions that deliver content to consumers,” stated Jack Guedj, president and CEO of Magnum Semiconductor.

POST A COMMENT

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

LIVE NEWS FEED

NEW PRODUCTS

Novel Wafer Analyzer for up to 300mm wafer using high speed Raman Imaging Technology
08/08/2016Nanophoton introduces RAMANdrive - a new Wafer Analyzer - for a wide range of applications at semiconductor market a...
Pfeiffer Vacuum introduces HiPace 2800 turbopump for ion implantation applications
07/06/2016Pfeiffer Vacuum has introduced the HiPace 2800 IT turbopump that is designed for ion implantation applications....
NanoFocus AG introduces new inspection system for semiconductors industry
05/31/2016NanoFocus AG, the developer and manufacturer of optical 3D surface measuring technology, introduces the new measuring system µ...