December 21, 2007 – RF Micro Devices has agreed to acquire Filtronic PLC’s compound semiconductors subsidiary for about £12.5M (US ~25.1M) in cash, including the unit’s 150mm GaAs wafer fab in the UK, one of RFMD’s major GaAs pHEMT semi suppliers.
For RFMD, the deal helps “significantly reduce” its GaAs pHEMT sourcing costs and add additional capacity, avoiding any concerns about potential capacity constraints in the coming year. “The acquisition of Filtronic Compound Semiconductors is expected to increase our manufacturing volume, lower our overall cost structure, and provide RFMD with a high-volume supply of GaAs pHEMT, all of which support our aggressive growth expectations for cellular frontends,” said Bob Bruggeworth, president/CEO of RFMD, in a statement.
Also, the Filtronic unit’s millimeter wave business will add “profitable, high-margin revenue” to RFMD’s recently formed multimarket products group, he added.
The deal is expected to close before the end of RFMD’s fiscal 4Q (March 2008), subject to closing conditions.