Zarlink sells foundry for $27 million

Zarlink Semiconductor has signed a definitive agreement with DALSA Corporation to sell its foundry facility in Bromont, Quebec, and related business to DALSA for CDN$27 million.

Under the agreement, Zarlink will receive from DALSA CDN$21.6 million in cash and retain a 19.9% investment in the Bromont foundry. The agreement is subject to normal approvals and is expected to close within 30 days.

According to a statement, the Bromont facility is an ISO-certified operation featuring complementary metal oxide semiconductor (CMOS) process technology for digital and mixed-signal (analogue/digital) communications products.

The plant also has other processes supporting industrial, scientific and space applications, particularly high-end imaging applications.

The two companies have also signed a 3-year agreement to ensure continuity of supply for Zarlink products manufactured at Bromont. Approximately 30% of the plant’s production is geared towards Zarlink products, primarily telecommunications chips and medical products.