Atmel has completed the sale of its wafer fabrication operation - in Rousset, France - to LFoundry.
"The completion of this transaction marks a major step in converting Atmel's manufacturing operations to a fab-light business model," said Steven Laub, Atmel's president and chief executive officer.
"Since implementing our transformation plan, we have reduced our wafer fabrication facilities from five to one and successfully divested or shut down 14 non-core product lines as we focus the company on its core microcontroller and touch products."
The sale was previously announced back in December 2009, with the acquisition creating a major analogue and mixed-signal pure play foundry in Europe.
Germany-based LFoundry was formed in 2008 out of the former Renesas Technology semiconductor fabrication business in Landshut.
As of the fab closing, over 750 employees employed at the Rousset fab, which manufactures Atmel's ASIC, memory and microcontroller devices, become part of LFoundry.
Atmel says it will purchase wafers under a supply agreement from LFoundry for up to four years. During the second quarter of 2010, Atmel expects to record a loss on the sale of the Rousset fabrication operation that will not exceed $110 million.
Atmel also announced that it has received a binding offer from INSIDE Contactless to acquire its Smartcard (SMS) Business.