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 feature 4 remedies to avoid cloud app migration headaches The compelling benefits of using proprietary cloud-native services come at a price: vendor lock-in. Here are ways CIOs can effectively plan without getting stuck. By Robert Mitchell Nov 29, 2023 9 mins CIO Managed Service Providers Managed IT Services case study Steps Gerresheimer takes to transform its IT CIO Zafer Nalbant explains what the medical packaging manufacturer does to modernize its IT through AI, automation, and hybrid cloud. By Jens Dose Nov 29, 2023 6 mins CIO SAP ServiceNow feature Per Scholas redefines IT hiring by diversifying the IT talent pipeline What started as a technology reclamation nonprofit has since transformed into a robust, tuition-free training program that seeks to redefine how companies fill tech skills gaps with rising talent. By Sarah K. White Nov 29, 2023 11 mins Diversity and Inclusion Hiring news Saudi Arabia will host the World Expo in 2030 in Riyadh By Andrea Benito Nov 28, 2023 3 mins CIO Artificial Intelligence 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