Microchip Technology Inc. (MCHP) recently announced that it has sold certain non-core assets from its Silicon Storage Technology (SSTI) subsidiary to Greenliant Systems Ltd, a company founded by Mr. Bing Yeh, the ex-Chairman and CEO of Silicon Storage.
Last month, Microchip completed its acquisition of Silicon Storage following the approval of the transaction by Silicon’s shareholders after a hostile bidding process.
Silicon Storage is a global leader in embedded flash technology and in the licensing of these technologies. It has several other businesses including serial, parallel and specialty flash memories.
The assets sold included NAND Drives, NAND controllers, Smart Card ICs, Combo Memory, Concurrent SuperFlash, Small-Sector Flash and many-time Programmable Flash memories.
The sale included inventory, equipment, intellectual property, and certain other assets and liabilities associated with the product lines. Approximately 100 employees (18% of SST’s workforce) were transferred to Greenliant as a part of this transaction.
Other terms of the deal were not disclosed.
The sale is a step forward in Microchip’s previously announced plans of restructuring Silicon Storage by selling certain non-core assets. The licensing business and 8051 microcontroller business have been identified as the core assets of the company.
Management stated that this sale would not have any impact on its guidance.
Including operations from Silicon Storage, Microchip expects to report revenues of $318 million in the first quarter of 2011. Silicon Storage operations are expected to contribute about $18 million to the top line in the June quarter.
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