Semtech Announces Acquisition of IC Interconnect

• Strengthens U.S. R&D capabilities for delivering next-generation Protection platforms
• Purchase price of approximately $7 million
  

CAMARILLO, Calif., May 02, 2018 -- Semtech Corporation (Nasdaq:SMTC), a leading supplier of high performance analog, mixed-signal semiconductors and advanced algorithms, today announced it has acquired substantially all the assets of IC Interconnect, Inc. (“ICI”), a privately-held, U.S.-based company that provides contract wafer bumping and related services to the electronics industry. The acquisition is expected to add 42 employees located in Colorado Springs, Colo.

Under the terms of the purchase agreement, Semtech acquired ICI assets for a cash purchase price of approximately $7 million and assumed certain obligations going forward. Semtech funded the purchase price using its current cash assets. The Company does not expect the deal to have any material impact to its earnings.

Next-generation Protection platforms require advanced technological capabilities to deliver the right combination of the highest performance and smallest footprint. Semtech and ICI have demonstrated their ability to produce market leading solutions such as the Semtech Z-Pak^™ platform with more than 25 billion Z-Pak-based devices shipped into high-end consumer applications such as smartphones, wearables and tablets.

“The addition of ICI is aimed at further enhancing our U.S. R&D capabilities by developing and ramping our next-generation Z-Pak platform - the Z-Ultra^TM platform,” stated Mark Costello, Vice President and General Manager of Semtech’s Protection Products Group. “The “Z-Ultra” platform will significantly enhance Semtech’s ability to address new challenges created by further shrinking of silicon geometries and will drive quantum improvements in system-level performance over our current platform.”

“ICI has combined manufacturing process innovation and operational excellence to deliver cost-effective wafer level packages to Semtech since 2001 and we are now excited to become part of the Company,” stated Curt Erickson, President of ICI.

About ICI
IC Interconnect, Inc. (“ICI”) is a U.S.-based company which provides advanced chip-scale packaging, contract wafer bumping and related services to the electronics industry. ICI was founded in 1998 with headquarters and manufacturing facilities located in Colorado Springs, Colo. High-quality, superior customer service, quick-turn and low cost are the focus of the Company. ICI is certified to the ISO 9001:2008 standard. ICI provides wafer bumping services to customers worldwide, including: North America, Europe, Asia, Central America, and the South Pacific. 

About Semtech
Semtech Corporation is a leading supplier of high performance analog, mixed-signal semiconductors and advanced algorithms for high-end consumer, enterprise computing, communications, and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The Company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC. For more information, visit http://www.semtech.com.

Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on the current expectations of Semtech Corporation and its subsidiaries (the “Company”), including, without limitation, statements regarding the Company’s expectation that the acquisition of substantially all the assets of IC Interconnect, Inc. (“ICI”) will not have any material impact on to the Company’s earnings, the expected benefits to the Company and ICI from the acquisition, and statements regarding the Company’s and ICI’s operations, industry, products, performance, and business initiatives. Statements containing words or phrases such as “will,” “expects,” “expected to,” “aimed at,” “designed to,” or other similar expressions constitute forward-looking statements.

Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and events to differ materially from those projected. Potential factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the integration of the acquired business and ability to realize expected synergies and benefits; the Company’s inability to retain key personnel; problems associated with the acquired business’ operations, systems or technologies; as well as the risk factors disclosed in the “Risk Factors” section and elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2018  and in the Company’s other filings with the Securities and Exchange Commission.

In light of the significant risks and uncertainties inherent in the forward-looking information included herein, any such forward-looking information should not be regarded as representations or guarantees by the Company of future performance or results, or that its objectives or plans will be achieved, or that any of its operating expectations or financial forecasts will be realized. Investors are cautioned not to place undue reliance on any forward-looking information contained herein, which reflect management’s analysis only as of the date hereof. 

Except as required by law, the Company assumes no obligation to publicly release the results of any update or revision to any forward-looking statements that may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated or future events, or otherwise.

Semtech and the Semtech logo are registered marks, and Z-Pak and Z-Ultra are trademarks or service marks, of Semtech Corporation or its affiliates.

SMTC-F

Contact:
Sandy Harrison
Semtech Corporation
(805) 480-2004
[email protected]