As well as its interests in connectivity/computing for cloud infrastructure, MACOM has flagged that AppliedMicro also has a “well-positioned but non-strategic Compute business” that it intends to decouple and sell on within the 100 days from the acquisition. MACOM will add AppliedMicro’s technology and product lines to its range of analogue RF, microwave, millimetre-wave and photonic semiconductor products. The deal is worth some $770 million.
AppliedMicro’s connectivity business is, MACOM states, “highly complementary” to its (MACOM’s) product portfolio, through the addition of market-leading OTN framers, MACsec Ethernet networking components and a single-lambda PAM4 platform. MACOM intends that it should accelerate its growth in optical technologies for Cloud Service Providers and Enterprise Network customers serving the high-growth, high-margin Data Centre market
AppliedMicro’s PAM4 solutions are based on FinFET technology and the company has had custom engagements with top-tier Data Centre and service provider customers, that MACOM anticipates building on.
John Croteau, MACOM President and Chief Executive Officer, stated, "This transaction will accelerate and expand MACOM’s breakout opportunity in Enterprise and Cloud Data Centres. MACOM will now be able to provide all the requisite semiconductor content for optical networks - analogue, photonic and PHY - from the switch to fibere for long haul, metro, access, backhaul and Data Centre. AppliedMicro’s 100G to 400G single-lambda PAM4 platform should perfectly complement MACOM's leadership in analogue and photonic components for Data Centres... “Notably, the IEEE recently recommended the adoption of AppliedMicro’s single lambda PAM4 solution to be an industry standard for enterprise and Data Centre connectivity, positioning this technology as the solution of choice going forward....AppliedMicro also provides value-added technologies including SerDes, high speed analogue-to-digital and digital-to-analogue converters with industry-leading engineering competencies and long product lifecycles.”
Of the Compute business, that MACOM intends to divest, Paramesh Gopi, President and CEO, AppliedMicro commented that is is, “... in the process of bringing AppliedMicro’s highly-competitive third-generation X-Gene processor to market. X-Gene is well-positioned