Semtech Corporation has agreed to sell its cellular module business to Taiwan-based Compal Electronics in a $62 million all-cash deal, subject to customary adjustments. The transaction, announced on August 13, 2026, has been approved by the boards of both companies.
Under the agreement, Compal Electronics will acquire substantially all assets and operations tied to Semtech’s cellular module unit, including related intellectual property, customer relationships, and personnel.
The move sharpens Semtech’s strategic focus on AI data center networking and its LoRa-based IoT and connectivity portfolios, while giving Compal a ready-made cellular module platform and team.finance.
Deal timeline and conditions
The transaction is expected to close in the fourth quarter of Semtech’s fiscal 2027, pending 
satisfaction or waiver of standard closing conditions. These include receipt of certain regulatory approvals and other routine clearances.finance.
Advisors and next steps
UBS Investment Bank acted as financial advisor to Semtech, with O’Melveny & Myers LLP serving as legal counsel on the deal.
Both companies will now work through integration planning and regulatory processes as they move toward closing later this fiscal year.
