STMicro buys Alcatel chip biz

Gains big customer

STMicroelectronics is buying the semiconductor business of Alcatel, the lossmaking French networking equipment vendor, for EUR390m cash.

At the same time it becomes Alcatel's preferred chip supplier. Alcatel is strongest in DSL modems and it claims pole position as the world's biggest producer of DSL chipsets. It will continue to work on designing these, through a JV with STMicro.

Alcatel MicroElectronics is headquartered in Belgium and its turnover in 2001 was approx. EUR350m. But how much of this came from its parent company, and how much business Alcatel mere is committing STMicro's way, remains undisclosed. ®