Newport Beach chip maker Conexant Systems Inc. and buyout firm Carlyle Group Inc. plan to form a new company to manufacture thin, semiconductor slices called wafers. Carlyle will pay Conexant $20 million in cash and will invest $30 million in the new venture. In exchange, Conexant will contribute the manufacturing equipment in its Newport Beach wafer fabrication facility. Carlyle will own 55% of the new company; Conexant will own 45%.
Shu Li, Conexant's senior vice president of quality, platform technology and supply chain management, will become chief executive of the wafer company. Conexant shares rose 58 cents, or 6.2%, to $9.98.