Aliso Viejo-based Microsemi Corp. appears set to add Zarlink Semiconductor Inc. to its fold after increasing its bid for the Canadian chipmaker to $632 million.

The deal announced today calls for Microsemi to boost its offer for Ottawa-based Zarlink’s shares by 19% from the $547 million cash bid it first proposed two months ago. Outstanding debt and Zarlink’s $107 million in cash account for the additional value of the deal.

Zarlink’s shares rose in recent weeks, and Microsemi’s latest bid represents a 67% premium compared with its first offer, and a 15% premium on yesterday’s closing price on the Toronto Stock Exchange.

Zarlink’s board has recommended the latest offer to shareholders.

Microsemi is Orange County’s third-biggest chipmaker by sales and reported about $520 million in revenue for the 12 months through October.

Zarlink makes chips used by telecommunications and cable companies for bundled voice, video, data and mobile services. It counts on the communications sector for about 80% of its business and the medical sector for most of the rest.

Interest in Zarlink stemmed from the company’s inroads in the communications and medical markets—two key segments of Microsemi’s growth plan.

Microsemi expects the acquisition to add $0.24 to $0.26 per share to earnings in 2012.

Microsemi on Thursday also reaffirmed its previous guidance for the current quarter. For the September quarter, net sales are projected to increase from 3% to 5% compared with the prior period.

It forecasts an adjusted profit of $45 million to $46.6 million, which would be up about 60% from a year earlier.

Analysts on average expect a profit of $45 million for the current quarter.

Microsemi shares closed down about 1% on Thursday to a market value of about $1.4 billion.