JFE Holdings, a Japanese company that makes steel products, has sold its chip design and development arm Kawasaki Microelectronics to Tokyo-based MegaChips Corporation for $100 million.
Kawasaki Microelectronics known as K-micro will be merged into MegaChips Corporation, the company said in a statement. MegaChips, which is a fabless semiconductor company subcontracts a bulk of its manufacturing to manufacturers in Taiwan and Japan.
Kawasaki Microelectronics traces its origin to a time when it used to undertake large-scale integration of transistor chips for microprocessors for Kawasaki Steel Corporation, which is now called JFE Holdings.
Currently, Kmicro has 125 people of which 60 are product engineers in Bangalore, while MegaChips has over 700 people in Tokyo.