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Your email address will not be published.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

OEM Group expands P5000 capabilities to compound semiconductor substrates
05/25/2017OEM Group has launched the P5000:CS automated single wafer cluster tool for the compound semiconductor market. ...
3D-Micromac launches the second generation of its high-performance microcell OTF laser systems
04/17/2017The high-performance production solution for Laser Contact Opening (LCO) of PERC solar cells achieves a th...
ULVAC launches NA-1500 dry etching system for 600mm advanced packaging systems
03/24/2017ULVAC, Inc. is pleased to announce the NA-1500 dry etching system for 600mm advanced packaging substrates, providing for u...