Conexant to form wireless chip venture with Carlyle

NEW YORK -- Communications chipmaker Conexant Systems Inc. said Monday it and Carlyle Group, a leading private equity firm, will form a new venture to make new chips for wireless communications and other applications.

Under the terms of the deal, Washington, D.C.-based Carlyle will pay Conexant $20 million and contribute $30 million in cash to fund the new venture, which will be 55 percent held by Carlyle.

The new venture will manufacture chips using silicon germanium processes aimed at making chips with higher performance and lower energy consumption.

``This technology is emerging as the process of choice for demanding wireless and optical networking applications,'' Conexant said in a statement.

Conexant, whose shares have fallen from a high of more than $120 two years ago to close at $9.40 on Friday, said the manufacturing venture was ``the final step in a focused business strategy.''

Conexant shares traded at $9.45, up 5 cents, Monday morning on the Nasdaq market.