Semiconductor manufacturer LSI Logic said Monday it would acquire Agere Systems, creating a combined chip-making company with enough scale to compete for greater market share in segments including hard disks and digital media players.LSI, of Milipitas, Calif., will trade stock worth US$4 billion for Agere, of Allentown, Pa. The move will double LSI’s size to 9,100 employees and an estimated $3.5 billion in annual revenue.LSI hopes to use the deal to extend its market in storage and consumer electronics by adding Agere’s expertise in storage, mobility and networking, according to a statement by Abhi Talwalkar, president and chief executive of LSI. Agere’s top 10 customers are Apple, Cisco, Hitachi, Lucent, Maxtor, NEC, Nokia, Samsung, Seagate and Toshiba, the company’s website said.The two companies will also be more streamlined, saving $125 million per year starting in 2008 through “increased efficiencies in manufacturing and operating expenses.” The companies did not say whether that plan includes layoffs. LSI expects the transaction to close in the first quarter of 2007, pending approval by regulators and by the shareholders of both companies.-Ben Ames, IDG News Service (Boston Bureau) Check out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content BrandPost Leadership superpower: Succeeding sustainably As today's great leaders recognize, true success is not solely measured by the bottom line but also by the impact a business has on its stakeholders, including employees, partners, and the environment. By Marie Kalliney, Practice Leader, Digital Transformation Services, Broadcom Mar 28, 2023 5 mins IT Leadership BrandPost Helping the C-suite leverage their network as a business-boosting asset By Tanya O'Hara Mar 28, 2023 3 mins IT Leadership Opinion 5 hard questions every IT leader must answer Strong leadership is vital to IT success — and shouldn’t be taken for granted. Continual self-reflection is essential for knowing whether it’s time to restructure your approach to leading IT. By Thornton May Mar 28, 2023 5 mins Business IT Alignment IT Leadership Feature CIOs address the impact of hybrid work Assessing how some of the most progressive CIOs strive to provide both technological and emotional support for a dispersed workforce. By Pat Brans Mar 28, 2023 8 mins CIO Remote Work Employee Experience Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe