Microsemi Corp., a Santa Ana semiconductor manufacturer, said it plans to take over operations of a troubled Texas semiconductor company.
Microsemi said it will manage Varo Quality Semiconductor Inc. during the period when the Garland, Tex., firm is facing foreclosure proceedings from a bank lender. Under a contract between Microsemi and Varo, a Microsemi subsidiary will acquire most of Varo's assets and operations from the bank at a private foreclosure sale.
Following the sale, the subsidiary, Micro Quality Semiconductor Inc., plans to resume operations at the Varo plant in Texas. Microsemi said it plans to continue producing most of the semiconductor products formerly made by Varo.
Varo produces semiconductors for commercial and industrial applications. The company's best year was in 1987, when it had revenue of about $18 million, said David Sonksen, Microsemi's vice president of finance.