GlobalFoundries is spinning off another piece of the business it acquired from IBM.
California-based Marvell announced Tuesday that it had agreed to buy Avera Semiconductor from GlobalFoundries for $650 million. Avera has roughly 800 employees at locations including the former IBM facilities near Beacon, New York, and Burlington, Vermont.
Avera is GlobalFoundries’ application-specific integrated circuit business, and will bring a custom design capability to Marvell. GlobalFoundries and Marvell will have a long-term supply agreement once the deal goes through, which is expected in 2020 after regulatory approvals.
“This transaction is another example of our commitment to focus on our core business of providing differentiated foundry offerings as a manufacturing service provider, while establishing deeper relationships with customers who are leaders in their respective sectors,” Tom Caulfield, CEO of GlobalFoundries, said in a news release.
GlobalFoundries last month announced it would sell its East Fishkill computer chip factory to ON Semiconductor for $430 million.