Semtech, a Camarillo-based manufacturer of semiconductors for the mobile phone industry, sold subsidiary Snowbush IP for $32.5 million to Sunnyvale-based Rambus, which develops memory systems for smartphones.

Semtech said it also could receive more payments from Rambus through 2022 based upon a percentage of sales by Rambus of new products expected to be developed by Rambus. The transaction should close by the end of the current quarter.

“The planned divestiture of our Snowbush business is consistent with our practice to exit businesses that are no longer determined to be aligned with the company’s core, long-term strategy of delivering leading analog/mixed signal product platforms,” Semtech CEO Mohan Maheswaran said in a news release. “We believe that our Snowbush IP business fits well with the current Rambus strategy and portfolio.”

Semtech shares closed up 26 cents to $24.16 on June 6.

• Contact Philip Joens at pjoens@pacbiztimes.com.