The U.S. Department of Justice on Thursday filed an antitrust lawsuit against Microsemi alleging that its acquisition of Semicoa would reduce competition for the development and manufacturing of certain semiconductors used by the military and space program.
Microsemi manufactures certain semiconductors for use in equipment like satellites, laptops and LCD screens. The DOJ wants the court to reverse Microsemi's acquisition of Semicoa assets it bought in July 2008.
The acquisition "reduced competition in the development, manufacture and sale of certain semiconductor devices used in military and space programs essential to the security of the United States," the DOJ said in a statement.
Certain semiconductors that Microsemi manufactures include transistors and diodes that manage the flow of electricity, which are used heavily by the U.S. Department of Defense and National Aeronautics and Space Administration (NASA) in aerospace and military applications, according to the DOJ.
The acquisition has led to an increase in prices of those semiconductors, which will likely continue to increase, the DOJ alleged.
Microsemi did not immediately return calls seeking comment.