AMCC buys IBM chip line for $47 million

SAN DIEGO (AP) — Applied Micro Circuits Corp. Monday said it pay $47 million to buy a line of chips for networking gear from IBM Corp.

San Diego-based chip maker AMCC said the acquisition of the PowerPRS Switch Fabric will expand its offering of switching chips, which route data in a network.

Armonk, New York-based IBM will continue to manufacture the chips for AMCC.

AMCC reported revenue of $101.6 million for the year ended March 31.

Shares of AMCC closed Monday up 31 cents, or 6.4 percent, at $5.16 on the Nasdaq Stock Market.