Agere Systems (USA)

About Agere Systems (USA)

Agere Systems emerged as a significant player in the semiconductor industry, specializing in integrated circuit components for a variety of high-tech applications. The company's story began on August 1, 2000, when it was incorporated as a subsidiary of Lucent Technologies, itself a spin-off from AT&T, with roots tracing back to the renowned Bell Labs. This lineage provided a deep heritage in telecommunications and microelectronics research. Lucent's objective was to separate its microelectronics business to provide it with more direct access to capital and the ability to forge new partnerships. Agere officially became an independent entity on June 1, 2002, after Lucent spun it off completely. John T. Dickson, who had previously been the chief operating officer of Lucent's microelectronics group, was appointed as the President and CEO to lead the newly independent company.

Agere designed and manufactured integrated circuits, optoelectronics components, and software that served as foundational building blocks for electronic and photonic products. The firm structured its operations around two primary market segments: a client systems group and an infrastructure systems group. The client systems division, which accounted for the majority of revenue, focused on the computing and consumer communications markets, providing solutions for applications like hard disk drives, Wi-Fi connectivity, and internet-enabled cellular devices. The infrastructure systems group catered to the networking equipment market, offering components for high-speed communication systems. Key clients included leading manufacturers of PCs, hard disk drives, and wireless network equipment. Its business model centered on the design and sale of these semiconductor solutions to original equipment manufacturers (OEMs).

The company's product portfolio was extensive, covering solutions for wireless data, high-density storage, and multiservice networking. Agere was a market leader in providing integrated circuits for hard disk drives, holding top positions in the sale of system-on-a-chip (SoC) solutions and preamplifiers. Their wireless data products included GPRS chipsets for data-capable mobile phones and Wi-Fi/802.11 solutions for wireless LANs. For networking, Agere supplied a range of components like network processors, mappers, and framers. A significant milestone was the acquisition of Massana Ltd. in 2003, which formed the basis of a new Ethernet division. After facing initial struggles post-spin-off, the company underwent a significant restructuring, which involved consolidating manufacturing and divesting several business lines to sharpen its focus. This strategy led to its first quarterly profit as an independent company in late 2003.

On December 4, 2006, LSI Logic Corp. announced its intention to acquire Agere Systems in an all-stock transaction valued at approximately $4 billion. The merger was completed on April 2, 2007, creating a combined entity named LSI Corporation. This strategic combination was aimed at creating a powerhouse in the storage and networking semiconductor markets. The lineage continued as LSI was subsequently acquired by Avago Technologies in 2014, which later became Broadcom Inc.