Milpitas-based LSI Corporation said Wednesday that it has sold its consumer products business to Magnum Semiconductor, and will cut 900 employees, 13 percent of the firm's headcount, in a restructuring. Financial terms of the acquisition were not disclosed. LSI said that the sale and restructuring is a result of a strategic review of its business following its April merger with Agere Systems. LSI's consumer products business develops semiconductors for media processing and consumer electronics. The acquisition by Magnum will be funded by an unspecified private equity investment. Magnum Semiconductor is basedin Milpitas, and is venture backed by August Capital, KTB Ventures, Investcorp Technology Partners, Investor Growth Capital, and WK Technology Fund.