Avago agrees to buy LSI for $6.6 billion

Singapore-based Avago Technologies has agreed to buy San Jose chipmaker LSI for $6.6 billion.

The companies said Monday that their boards have agreed to the transaction and that it’s expected to be concluded in the first half of next year. LSI’s shareholders and government regulators still have to approve the deal.

Avago, which makes analog chips for wireless, industrial and other applications, wants LSI’s business data-storage chips.

The proposed transaction comes just three months after Santa Clara semiconductor-equipment maker Applied Materials announced a $9.39 billion deal to buy Tokyo Electron.

Steve Johnson Steve Johnson (261 Posts)

Steve Johnson covers the microchip industry, cyber security and the big-technology sector that includes Hewlett-Packard, Oracle and Cisco Systems.