Microchip sells Mobile Touch assets to Solomon Systech

Solomon Systech develops and sells display panel drivers, high speed interfaces, graphic controllers and other semiconductor products including touch controllers, and integrated touch and display drivers. The transaction included the sale of certain semiconductor products, equipment and patents; and a license to certain other intellectual property and patents related to Microchip’s Mobile Touch product line. Microchip Technology also agreed to provide certain transition services to Solomon Systech. This USD 23 million cash transaction is expected to close within two weeks – upon fulfilment of certain customary closing conditions. In more detail, Solomon Systech has received certain maXTouch semiconductor products, and a license to sell certain maXTouch semiconductor products and derivatives, as well as to use the design database and a portfolio of over 500 patents, to serve customers in the mobile touch market, Solomon Systech states in a press release. “This transaction culminates Microchip’s previously announced plans to sell the non-core Mobile Touch assets that came to us through the Atmel acquisition. We are very pleased that we were able to consummate this transaction in a timely manner,” said Steve Sanghi, Microchip’s Chairman and CEO. “The purchase deal is a strong strategic fit to Solomon Systech and aligns with our development strategy, as mobile touch is one of our core business areas,” said Dr. Yeh Tsuei Chi, CEO of Solomon Systech, He continues; “Advanced mobile touch technologies, especially integrated touch display (“TDDI”) and flexible OLED display, are anticipated to have strong growth potential. Addition of these innovative and high-performance display technologies and market-proven mobile display solutions will greatly strengthen our market positioning, broaden and differentiate our product portfolio, facilitate customer reach and drive business growth. It will also significantly strengthen our technological competency and accelerate future pace of innovation.”