Qorvo announced the divestiture of its silicon carbide (SiC) JFET technology business, with On Semiconductor set to acquire it for $115 million. This transaction is expected to enhance On Semiconductor's EliteSiC portfolio, focusing on energy efficiency in AI data centers and emerging markets.
For Qorvo, this divestiture is a strategic move aimed at improving its financial profile. The company anticipates that exiting the silicon carbide power device business will be margin-accretive, allowing it to avoid necessary capital expenditures and reduce associated operating expenses.
This action aligns with Qorvo's broader strategic pivot towards higher-value markets and operational efficiency initiatives, which are designed to structurally enhance gross margins and reduce capital intensity across its remaining segments.
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