Semtech Corporation (Nasdaq:SMTC), a provider of semiconductors for AI data centre networking, Internet of Things (IoT) and cellular connectivity and intelligent connected devices, announced on Thursday that it has entered into a definitive agreement to sell its cellular module business to Compal Electronics Inc (TWSE:2324) for USD62m in cash, subject to customary adjustments.

The transaction, approved by both companies' boards, includes substantially all assets and operations of Semtech's cellular module business, including related intellectual property, customer relationships and personnel.

Subject to customary closing conditions, including regulatory approval, the deal is expected to close in the fourth quarter of Semtech's 2027 fiscal year.