Microchip sells Atmel assets to Solomon Systech

15 November 2016 Nearly a year after Microchip Technology Inc formally agreed a $3.56bn deal to purchase Atmel Corp, the American company has signed off certain Atmel assets to the Hong Kong based semiconductor firm Solomon Systech for a fee believed to be $23m. The pure cash transaction includes the sale of certain semiconductor products, equipment, a variety of patents associated with the company’s mobile touch line, and intellectual property licences. In a press release, Solomon Systech announced more details, saying that the deal was mainly centred around the Atmel’s maXTouch line, and access to a design database that housed over 500 patents. Commenting on the deal, Microchip’s Chairman and CEO Steve Sanghi said the agreement culminates the firm’s plans to sell non-core assets that it had inherited from its acquisition of Atmel and the turn of the year. “Since the closing of our acquisition of Atmel,” Sangi explained, “we have been working diligently on the integration activities associated with Atmel which include taking actions to achieve strong financial returns. “We believe we are well on our way to significantly improving Atmel’s business model which we believe will provide substantial long-term value to our stockholders,” he added. Sangi's counterpart at Solomon Syshtech, Yeh Tsuei Chi, said that the "purchase deal is a strong strategic fit [that] aligns with our development strategy, as mobile touch is one of our core business areas. This move has further increased speculation about the long-term availability of Atmel products since Microchip’s takeover.

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