US government tells Microsemi to sell group
The US Department of Justice has told Microsemi that it wants the company to sell all of the assets that it acquired from Semicoa in July 2008 to avoid a monopoly in small-signal transistors and ultrafast recovery diodes.
The department’s antitrust division has filed a proposed settlement in the US District Court for the Eastern District of California. If approved by the court, the settlement would resolve the current lawsuit between the department and Microsemi and address the department's competitive concerns.
Both small-signal transistors and ultrafast recovery rectifier diodes are used in critical military and civil applications ranging from satellites to nuclear missile systems.
Prior to the acquisition, Microsemi and Semicoa were the only manufacturers of small signal transistors qualified for these applications. In addition, Semicoa and Microsemi were each poised to become qualified for their ultrafast recovery rectifier diodes, which, according the Department of Justice, are in critically short supply. The department alleged in its complaint that Microsemi's acquisition of Semicoa’s assets would result in increased prices and slower delivery of critical military components.