RF Micro expanding RF fab ops

March 31, 2006 – RF Micro Devices Inc., Greensboro, NC, plans to spend $80 million to expand manufacturing capacity of gallium arsenide heterojunction bipolar transistor (HBT) and pHEMT process technologies by 40%, scheduled to come online in late 2006.

The expansion also will reduce the company’s cost/wafer. The company sees its business growing steadily thanks to demand for cellular handsets, which use power amplifier (PA) and transmit modules — 3G handsets contain require multiple PAs, and also increasingly utilize WLAN which uses both GaAs HBT and pHEMT technologies.

RF’s investment follows recently announced $4.9 million grant for state tax credits and promises of $1.5 million from the city and county. The company posted revenues of $208 million in December 2005 quarter, a 38% increase from the March quarter after its previous fab expansion.


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