November 12, 2007 – Analog Devices has sold its central processing unit (CPU) voltage regulation and PC thermal monitoring product line to ON Semiconductor, plus a one-year manufacturing supply deal, for $185M in cash.
The products, including core CPU voltage regulator products and temperature sensors and fan-speed controllers for managing CPU temperature, represented ~$80M in sales during fiscal 2007, about 3% of sales (pending results from 4Q, which ended earlier this month).
For ADI, the deal, like the August sale of its baseband chipset unit to Taiwan’s MediaTek, helps the company shed divest noncore businesses in an effort to focus on its power management portfolio of high-performance signal processing technologies, for applications including portable medical devices, wireless infrastructure equipment, and digital TVs, noted Peter Henry, ADI’s VP for power management products, in a statement.
For On Semi, the deal does just the opposite — boosts its computing power management business, particularly for notebooks, stated president/CEO Keith Jackson. He added that the manufacturing supply deal will, over time, “benefit greatly from the capabilities of our Gresham wafer fabrication facility.” On Semi also indicated it may take an undisclosed one-time charge.