Computer chip component maker Atmel Corp. said Thursday it plans to sell a wafer fabrication plant in Rousset, France, to LFoundry GmbH, of Germany, for an undisclosed sum.
French law requires Atmel to present the proposed acquisition to the employee representatives of the Works Council in Rousset. The council is expected to decide on whether it approves in the first quarter of 2010.
Although terms were not disclosed, Atmel said it expects to record a non-cash impairment charge of up to $200 million in the fourth quarter of 2009.
San Jose, Calif.-based Atmel plans to enter into a multiyear supply agreement with LFoundry.
Atmel also is exploring strategic alternatives for its application specific integrated circuit business as part of a strategy to focus on its core, high growth, microcontroller business, CEO Steven Laub said in a statement.
Atmel shares fell 5 cents, or 1 percent to $4.29 in afternoon trading.
LFoundry is headquartered near Munich in Erding, Germany.