STMicroelectronics has acquired Alcatel’s Microelectronics division in a cash transaction worth 390 million Euro.
As part of the deal, the two companies intend to jointly develop DSL chip-sets that will be made available on the open market.
After the deal was concluded, STMicroelectronics turned around and sold off the mixed signal business activities of the former Alcatel division to AMI Semiconductor (AMIS). The transaction includes two Alcatel Microelectronics fabrication facilities located in Oudenaarde, Belgium as well as the associated process technologies.
STMicroelectronics and AMIS have also signed a supply agreement under which AMIS will provide certain manufacturing services for STMicroelectronics.
The terms of this agreement were not disclosed, and the purchase is still subject to regulatory approvals.