Agilent Technologies has embarked on a massive restructure, selling off most of its business to concentrate solely on its largest test and measurement arm.

The company announced yesterday it selling its semiconductor product division to Kohlberg Kravis Roberts (KKR) and Silver Lake Partners for $2.66 billion.

Agilent's chips can be found in mobile phones, networking products, computers, printers, infrared transceivers and more. The chip unit is Agilent's second-largest business behind test and measurement.

The manufacturer also announced an agreement to sell its stake in LED display maker Lumileds Lighting to Philips for $950 million. Lumileds was founded in 1999 as a joint venture between Philips and Agilent, which as spun off from HP around five years ago.

Agilent also plans to spin off its system-on-a-chip (SOC) and memory test business in 2006, the company said.