LONDON Ė Power IC vendor Ixys Corp. (Milpitas, Calif.), also parent of Zilog Inc., is buying the 4- and 8-bit microcontroller business of Samsung Electronics Co. Ltd. for about $50 million.
Under the terms of the agreement Ixys will receive nearly 80 products, inventories, intellectual property and other assets related to the 4- and 8-bit business. The acquisition is subject to various customary closing conditions and is expected to be completed within the next month.
Samsung will continue to make the products under an expanded foundry deal with Ixys.
"We have executed a management decision based on the focus on mobile solutions that we are taking in our semiconductor business," said Ben Suh, senior vice president of Samsung Electronics System LSI strategic planning team, in a statement issued by Ixys.
In the same statement Nathan Zommer, CEO and chairman of Ixys, said: "This acquisition provides increased revenues for our higher gross margin IC business, which includes our wholly-owned subsidiaries, Ixys IC division and Zilog, a pioneer supplier of microcontrollers."
He added: "We plan to gain market share for our MCU and IC products, and expand our customer base in industrial, medical and consumer applications. The 4-, 8-bit products fit with our mixed-signal ICs and our power semiconductors, whereby we will be able to offer our customers complete solutions for power management; from the digital control analog driver ICs to higher power devices."
Ixys reported that market research puts the 4- and 8-bit microcontroller market at $3.5 billion in 2013, with shipments of 6.7 billion units.
"In addition to bolstering Ixys' product portfolio, this transaction highlights the strong cooperative relationship with Samsung. We are excited about our ability to continue working and partnering with the Samsung team," said Uzi Sasson, president and CFO of Ixys.
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