LFoundry to buy Atmel France fab

LFoundry GmbH has entered into an exclusivity agreement with Atmel Corp. for the purchase of the latter's wafer fabrication operation in Rousset, France. Following French law, Atmel has presented the proposed acquisition to the employee representatives of the Works Council in Rousset. The Works Council is expected to give its opinion on the proposed transaction in Q1 10. If Atmel receives the approval of the Works Council, Atmel will seek authorization from its board of directors to enter into a definitive agreement with LFoundry. Proposed terms of the transaction were not disclosed.

"We are very pleased and excited about the opportunity to acquire a state-of-the-art manufacturing operation that advances our technical capabilities as a leading-edge analog and mixed signal silicon foundry," said Michael Lehnert, CEO, LFoundry. "This proposed acquisition positions the combined company as the largest analog and mixed-signal pure play foundry in Europe and is very strategic to our mission of rapidly growing our foundry business and providing unparalleled flexibility and support to the large European need for analog and mixed-signal manufacturing service and to our global customer base."

"We are excited by the potential combination of LFoundry and our Rousset, France wafer fab operations which establishes Europe锟絪 largest analog and mixed-signal foundry and provides a socially responsible transition plan and continuation of employment opportunities for our workers in Rousset," said Steven Laub, president and CEO, Atmel. "We are impressed by LFoundry锟絪 track record and look forward to a long-term partnership as Atmel plans to enter into a multi-year supply agreement with LFoundry.