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
ADCs for high dynamic range – successive-approximation or sigma-delta?
September 01, 2014
Maithil Pachchigar, an applications engineer with Analog Devices Inc., looks at trade-offs that must be considered when choosing ...
Microchip in Pursuit of CSR
Samsung Funds III-V FinFETs in US Lab
A question of Europe
Trinamic's stepper motor package gets you started
Winged parcel delivery: Google's way
August 29, 2014
While there is still debate about if legislation would ever allow swarms of commercial drones to fly over our heads, Google ...
Two-inch Super AMOLED display fits Samsung smartwatch plans
UK armed forces consider lithium sulfur batteries
Small cell market to hit $4.8 billion in five years
- Power Modules: The New Super Power
- Flexible Performance for Network Security Appliances
- Digital Power Management Reduces Energy Costs While Improving System Performance
- Using RF Recording Techniques to Resolve Interference Problems
InterviewA question of Europe
Sir Peter Bonfield sits on the board and has advisory roles in many international companies and universities. With more than 45 years of experience in electronics, computers and communications, here he ...
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, Trinamic Motion Control is offering you to win one of four TMCM-1043 development kits for its highly integrated, NEMA 17-compatible TMCM-1043 stepDancer stepper motor module.
Offering designers an easy-to-use PC-based GUI that allows one-click modification of motor drive current, micro-stepping and other key parameters, the intuitive kits are custom designed and developed for...MORE INFO AND LAST MONTH' WINNERS...
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.