Semtech to Sell Cellular Module Unit for $62M
Semtech Corporation has entered into a definitive agreement to sell its cellular module business to Compal Electronics, Inc. for $62 million in cash, subject to customary adjustments.
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Rhea-AI Filing Summary
Semtech Corporation has entered into a definitive agreement to sell its cellular module business to Compal Electronics, Inc. for $62 million in cash, subject to customary adjustments. The transaction has been approved by the boards of directors of both Semtech and Compal.
Compal will acquire substantially all assets and operations of the cellular module business, including related intellectual property, customer relationships and personnel. Semtech’s president and CEO stated that the divestiture is intended to sharpen focus on areas where it sees the strongest growth and industry leadership, specifically data center and LoRa connectivity. Closing is expected in the fourth quarter of Semtech’s 2027 fiscal year, subject to customary closing conditions, including receipt of certain regulatory approvals.
8-K Event Classification
Key Figures
Key Terms
definitive agreement regulatory
customary closing conditions regulatory
regulatory approvals regulatory
forward-looking statements regulatory
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What business is Semtech (SMTC) selling in this transaction?
How much is Semtech (SMTC) receiving for the cellular module business?
Who is buying Semtech’s (SMTC) cellular module business?
When is the Semtech (SMTC) and Compal transaction expected to close?
What strategic rationale did Semtech (SMTC) give for this divestiture?
What conditions could affect closing of Semtech’s (SMTC) sale to Compal?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or Section 15(d)
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 Other Events.
On August 13, 2026, Semtech Corporation (the “Company”) issued a press release announcing that it has entered into a definitive agreement to sell its cellular module business to Compal Electronics, Inc. (TWSE: 2324) for $62 million in cash, subject to customary adjustments.
A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit 99.1 | Press Release dated August 13, 2026 | |
| Exhibit 104 | Cover Page Interactive Data File (embedded within the inline XBRL Document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SEMTECH CORPORATION | ||||||
| Date: August 13, 2026 |
|
/s/ Mark Lin | ||||
| Name: | Mark Lin | |||||
| Title: | Chief Financial Officer | |||||
Exhibit 99.1
Contact: Mitch Haws, ir@semtech.com
Semtech Corporation Announces Definitive Agreement on Sale of Cellular Module Business to Compal Electronics
Camarillo, Calif., Thur. Aug. 13, 2026 – Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking, Internet of Things (“IoT”) and cellular connectivity and intelligent connected devices worldwide, today announced that it has entered into a definitive agreement to sell its cellular module business to Compal Electronics, Inc. (TWSE: 2324) for $62 million in cash, subject to customary adjustments. The transaction has been approved by both Semtech’s and Compal’s Board of Directors.
Under the terms of the agreement, Compal will acquire substantially all of the assets and operations comprising Semtech’s cellular module business, including its associated intellectual property, customer relationships, and personnel.
“This divestiture sharpens our focus on the product portfolio where we have the strongest conviction in growth and industry leadership: data center and LoRa connectivity,” said Hong Hou, president and chief executive officer. “It reflects the broader discipline we have been applying across the portfolio, concentrating our resources and our technology leadership where we believe we can create the most value over time.”
Transaction Details
The transaction is expected to close during the fourth quarter of Semtech’s 2027 fiscal year, subject to the satisfaction or waiver of customary closing conditions, including but not limited to receipt of certain regulatory approvals.
Semtech Advisors
UBS Investment Bank served as financial advisor and O’Melveny & Myers LLP served as legal counsel in connection with the transaction.
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a leading provider of high-performance semiconductors powering AI data center networking, IoT connectivity and intelligent connected devices worldwide. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com or follow us on LinkedIn or X.
Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its subsidiaries. All other trademarks, service marks and trade names mentioned in this press release are the property of their respective owners.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or to Semtech’s future financial performance, including statements regarding the anticipated benefits of the proposed transaction, the expected timing of the closing of the transaction, and Semtech’s strategic direction following the closing, which reflect the current analysis of existing information. Statements containing words such as “believe,” “will,” “expect,” “see,” or “positioned,” or other similar expressions constitute forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause Semtech’s actual results, performance, and achievements to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to: the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreement; the failure to satisfy the closing conditions contemplated by the definitive agreement; the failure to obtain required regulatory approvals in a timely manner or otherwise (and the risk that such approvals may result in the imposition of conditions that could adversely affect the proposed transaction); unexpected delays in completing the transaction; the focus of management’s time and attention on the transaction and other potential disruptions arising from the transaction; the impact of adverse changes to general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, and the impact of tariffs or retaliatory tariffs; adverse reactions from customers or stockholders; and the other factors and risks set forth in Semtech’s filings with the U.S. Securities and Exchange Commission, including (i) the “Risk Factors” section of Semtech’s Annual Report on Form 10-K for the fiscal year ended January 25, 2026 and (ii) subsequent Quarterly Reports on Form 10-Q. The forward-looking statements and information contained herein speak only as of the date of this release. Semtech undertakes no obligation to update any forward-looking statements or information to reflect events or circumstances after the date of this press release, except as required by applicable law.
Investor Relations Contact:
Mitch Haws
SVP, Investor Relations
Semtech Corporation
ir@semtech.com
SMTC-P
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