Zarlink sells UK analog foundry for $1.50
February 29, 2008 //
Seeking to cut costs, Canada's Zarlink Semiconductor Inc. has sold its analog foundry operations in Swindon, U.K. to MHS Electronics UK Ltd., a subsidiary of MHS Industries Group.
The move more or less represents Zarlink's exit from the foundry business. Under the terms, Zarlink has transferred all assets related to its Swindon foundry business, including the analog foundry and equipment, employees, third-party inventory and other assets. Approximately 120 Zarlink employees will be transferred to MHS Electronics as part of the sale, representing all of the foundry employees.
With this acquisition, MHS Electronics will now offer foundry services. Zarlink's former analog foundry unit provides bipolar technology processes and design services for fabless semiconductor companies and original equipment manufacturers.
Zarlink experienced some bad luck in this sector. As a result of record rainfall and the breach of the nearby River Ray last year, Zarlink's analog foundry fab in Swindon, U.K. was flooded on July 20, 2007.
Zarlink will unload the fab for $1.50. Under the terms, Zarlink has also paid MHS Electronics 2 million euros ($3 million) to support restructuring initiatives. The two companies have signed a three-year agreement to ensure continuity of wafer supply for Zarlink, under which Zarlink will deposit $3.9 million, representing about nine months of product orders.
As a result of this sale, Zarlink expects to record a book loss of approximately $13 million, or $0.10 per share. Zarlink's guidance for the quarter has been revised from a loss of $0.06 to $0.08 per share to a loss of $0.16 to $0.18 per share.
Zarlink is maintaining its revenue guidance of $53 million to $56 million for the quarter.
"This transaction will benefit Zarlink and its shareholders, while the analog foundry employees will prosper as part of a pure-play semiconductor foundry," said Kirk K. Mandy, president and CEO of Zarlink, in a statement.All news
What's that smell? An app for that soon, says Sensirion
July 25, 2014
With the acquisition of neighbouring cloud business Koubachi AG, Zurich-based company Sensirion is gearing up to meet the ...
GE phosphor powder creates more vibrant LED displays
Foremost Electronics to distribute NKK's switches in the UK
Traffic light switches to smart mode
Sony investing in stacked image sensor manufacturing capacity
The Filter Wizard: 'three-legs' and the 4-20 mA current loop
July 24, 2014
Kendall Castor-Perry of Cypress Semiconductor, otherwise known as The Filter Wizard, looks at some tricks for implementing ...
Set-top boxes morphing into MHGs
Imagination positions itself for 802.11ah for the Internet of Things
Smartwatches suck, says Pebble backer
- Testing GPS with a Simulator
- DSM presents: Select the best plastic for DDR4
- Dual 13A μModule Regulator with Digital Interface for Remote Monitoring & Control of Power
- Exploring the Business Model Evolution of High-Tech Equipment Manufacturers
InterviewCEO interview: China, not Apple, is way to go, says mCube CEO
Ben Lee, CEO of MEMS startup mCube, explains why he wants to spend $37 million on being a supplier of sensors to Chinese ODMs and avoiding a design win with Apple or Samsung.
Filter WizardCheck out the Filter Wizard Series of articles by Filter Guru Kendall Castor-Perry which provide invaluable practical Analog Design guidelines.
Linear video channel
READER OFFERRead more
This month, Altium Ltd is offering EETimes Europe's readers the chance to win one TASKING VX-Toolset for ARM Cortex-M Premium Edition, normally licensed for 2.395 Euros, for ultra-rapid prototyping and code development around ARM Cortex-M based microcontrollers.
The VX-toolset for ARM is the first TASKING compiler suite to receive the Software Platform technology, which is seamlessly...Read more
December 15, 2011 | Texas instruments | 222901974
Unique Ser/Des technology supports encrypted video and audio content with full duplex bi-directional control channel over a single wire interface.