Semtech sells cellular module business to Compal for $62 million
Semtech has entered into a definitive agreement to sell its cellular module business to Compal Electronics for USD 62 million in cash. The transaction is expected to close in Q4 of Semtech's 2027 fiscal year, subject to regulatory approvals.
The sale covers substantially all assets and operations of Semtech's cellular module business, including intellectual property, customer relationships and personnel, according to a press release from the company.
The divestiture is framed as a strategic sharpening of focus. Semtech is concentrating resources on its data centre and LoRa connectivity businesses, which the company describes as the areas where it has the strongest conviction in growth and industry leadership.
"This divestiture sharpens our focus on the product portfolio where we have the strongest conviction in growth and industry leadership: data center and LoRa connectivity," said Hong Hou, President and CEO of Semtech.
Compal Electronics is a Taiwan-listed electronics manufacturer headquartered in Taipei, Taiwan.
