Source/Type: CompoundSemi Online -- Compound Semiconductor Supply Chain News - Reported News

RFMD to Consolidate Production Testing; Begins Production of Microwave and Millimeter Wave Components
Author: CompoundSemi News Staff

April 16, 2008... RF Micro Devices Inc., a radio frequency systems and solutions company based in Greensboro, North Carolina USA, announced it will consolidate its production test facilities for high volume cellular products. The company says it expects the facility shut down will reduce cycle time, better serve its customer base, and improve overall profitability by about $3 to $3.5 million annually. The company also announced that it will add gallium arsenide (GaAs) pseudomorphic high electron mobility transistor (pHEMT) gain blocks and low noise amplifiers (LNAs) targeting the base station, satellite communications, and short-haul wireless infrastructure markets. Company News Release.

RFMD pointed out that the consolidation, which is expected to be completed in the September 2008 quarter, is the final phase of a production test transfer to RFMD's primary production test facility in Beijing, China. High volume cellular product testing will be transfered to the Beijing facility. The company indicated that about 80 of its employees from the facility will be laid off. RFMD currently employs over 2,000 employees in North Carolina. The company indicated that it expects a cash restructuring charge of about $1 million.

Bob Bruggeworth, president and CEO of RFMD, commented, "RFMD's international revenue is over 90% of total revenue, and it is imperative that our supply chain aligns with our customers' manufacturing facilities, which are located primarily in Asia. While this is a difficult decision because of the negative impact on employees, these actions are necessary to better serve our customers, ensure competitiveness and help position RFMD for long-term sustainable profitability." Company News Release

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