TUSTIN, Calif. -- Moving toward a chip outsourcing strategy, DSL-equipment maker PairGain Technologies Inc. here plans to divest its captive microelectronics group.
PairGain has retained Broadview International to sell the microelectronics group, which makes chips for the company's lineof digital subscriber line equipment. PairGain specializes in equipment manufacturing based on a variety of DSL technologies such as ADSL, HDSL, and HDSL-2.
PairGain intends to sell its semiconductor division to focus on its core hardware business, according to Mike Pascoe, the company's CEO.
"While the intense competition among chip-design firms has reduced the need to internally develop our microelectronic devices, we believe we will maximize the value of our excellent microelectronics design capability by divesting the group to a purchaser that can leverage its talents on a much wider scale," Pascoe said.
PairGain developed several chip technologies, which will be licensed to outside vendors. Last year, the company licensed its G.Lite chip technology to Rockwell Semiconductor, which is now Conexant Systems Inc., Newport Beach, Calif.