SAN JOSE, Calif. -- Germany's LFoundry GmbH, an analog and mixed-signal foundry,
has completed its previously-announced acquisition of Atmel Corp.ís wafer
fabrication operation in Rousset, France.
As of the closing, over 750 former Atmel employees at the Rousset wafer
fabrication operation have now become part of LFoundry. This will triple its
production capacity to over 30,000 wafer starts per month.
As part of this acquisition, LFoundry and Atmel jointly entered into an
approximately 4 years wafer supply agreement, thus securing Atmel as a long-term
customer of LFoundry.
During the second quarter of 2010, Atmel expects to record a loss on the sale
of the Rousset fabrication operation that will not exceed $110 million.
"The completion of this transaction marks a major step in converting Atmel's
manufacturing operations to a fab-light business model," said Steven Laub,
Atmel's president and CEO, in a statement. "Since implementing our
transformation plan, we have reduced our wafer fabrication facilities from five
to one and successfully divested or shut down 14 non-core product lines as we
focus the company on its core microcontroller and touch products."
The company recently announced it has received a binding offer from Inside
Contactless to acquire its smartcard business, which remains on track to sign
and close in the second half of 2010.