SAN JOSE, Calif. (AP) — Atmel Corp., an electronics components maker, said Monday it agreed to sell its manufacturing facility in North Tyneside, U.K., and its wafer fabrication equipment there in separate deals for $124 million in cash.
Atmel said it will sell the land associated with the facility to Highbridge Business Park Ltd. and will sell its eight-inch wafer fabrication equipment there to Taiwan Semiconductor Manufacturing Company Ltd.
Atmel had previously said it would sell the facility as part of its restructuring plan to lower costs, accelerate growth and raise profit.
The company said it will continue to make products at the facility into the first quarter of 2008. After that, Atmel said production will be transferred to manufacturing facilities in Colorado Springs, Colo. and Rousset, France as well as to external foundries.
Atmel said it will record a gain of up to $40 million which will be offset by related restructuring costs of up to $50 million.
Atmel shares rose 6 cents to close at $5.18.