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Editorial: What's the Buzz from Baltimore?
 
... The Granddaddy of compound semi industry technical events, IEEE's GaAs IC Symposium, was held this week in Baltimore, Maryland USA and as usual, just about everyone form the technical community and their sales staffs turned out. First rushes of what made the buzz are coming in, and we welcome...
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II-VI Acquires Northrop Grumman's SiC Line From Litton

October 25, 2001...II-VI Incorporated of Saxonburg, Pennsylvania USA has acquired, via an asset purchase agreement, the Litton Systems, Inc. Silicon Carbide (SiC) Group. Terms of the agreement were not disclosed. The acquired group will remain at it's current home in New Jersey and carry on their R&D as usual, according to II-VI. Dr. Carl J. Johnson, Chairman and CEO of II-VI stated, "Combining II-VI and Litton resources will more than double our SiC capability and should both accelerate the pace of product development and reduce time to market. While this strategic acquisition will increase our research and development investment in the near term, we believe it will make a significant contribution to the long-term success of II-VI Incorporated.'' Although a relatively quiet player in the field, II-VI has been involved in SiC since 1998 along with its activities in making devices and materials for infrared, near-infrared, visible light, x-ray and gamma-ray instrumentation and telecommunication applications, for which it is more well-known. II-VI's IR products, sold under the II-VI and Laser Power brand names, are used primarily in high-power CO2 (carbon dioxide) lasers. Their VLOC subsidiary manufactures near-infrared and visible light products for industrial, scientific and medical instruments and solid-state (such as YAG and YLF) lasers and products for the telecommunication industry and their . The Company's eV PRODUCTS division manufactures and markets solid-state x-ray and gamma-ray detector products for the nuclear radiation detection industry, news about which we reported in our last issue. More details regarding the SiC acquisition is in their press release.

AXT Introduces Large, High Flux Green, Blue & Cyan HB-LEDs

October 25, 2001...On the heels of our Oct. 23 edition which included HB-LED updates from Cree and Lumileds, AXT now weighs in with new brightness levels and availability. AXT is a mainstay compound semi industry substrate supplier that also performs up the value chain. Substrate revenues, which is still 90% of AXT's business, were down slightly from last year but their VCSELs and HB-LEDs doubled from a year ago. In conjunction with their earnings report, AXT announced the availability of their new large, high flux AlInGaN chips in green, cyan and blue are coming off the line, with their green P2 chips (green's the hardest in the blue spectrum to make) showing output powers at 350 milliamps of up to 27 milliwatts with 17.5 lumens per watt efficiency press release. AXT also announced an increase in brightness across all InGaN colors for their standard chips. These green, cyan, and blue chips are reported to have output powers at 20 milliamps of 2.0 milliwatts, 2.2 milliwatts, and 3.0 milliwatts, respectively. The expected packaged lamp power output for these devices is 4.0 milliwatts, 4.4 milliwatts, and 6.0 milliwatts. Details are in AXT's press release.

UMS/GCD Team to Blend Compound Expertise with Silicon

October 25, 2001...United Monolithic Semiconductors (UMS) of Paris, France and Ulm, Germany has embarked on an interesting teaming initiative this fall with Global Communication Devices (GCD) of North Andover, Massachusetts USA to develop what the two companies term "highly integrated chip sets" for the communications market. GDC is a USA venture funded silicon-heavy fabless systems integrator of wireless networking products and UMS is a European manufacturer of GaAs based MMICs for microwave and millimeter-wave wireless applications. While details were not disclosed as to what the teaming will produce, the respective heads of each company commented: "By joining our strengths, we will combine GCD's silicon-based networking transceivers and mixed signal technology with UMS high frequency GaAs components," said Professor Heinrich Daembkes, President and CEO of UMS. "This agreement will allow both companies to combine their respective expertise in two different semiconductor technologies and allow GCD to take advantages of UMS foundry and worldwide marketing presence," added Geoffrey C. Dawe, President and CEO of GCD. A pdf file of the Sept. 19 press release is available over UMS' website.

Anadigics Positions 3.5 W Power Amp for Korean CDMA Market

October 25, 2001...Anadigics, Inc. of Warren, New Jersey USA has introduced a new 3.5v high efficiency, linear power amplifier module (PA) module which has been specifically optimized for use in Korean Band PCS CDMA wireless handsets. Dubbed the AWT6109, the new PA is compliant with all IS95/98 and 1XRTT CDMA system specifications, which are the Korean standards. Dr Bami Bastani, President and CEO of ANADIGICS, Inc. commented, in regard to this important key marketplace, "CDMA is a terrific growth market, and the development of 1xRTT, CDMA-2000 and W-CDMA standards represent excellent growth opportunities for ANADIGICS' wireless business. Our InGaP HBT power amplifiers have given us a jump-start on the competition. As a result, we are gaining share in the CDMA market through design wins with several Korean handset manufacturers. ANADIGICS' strategy of building a solid foundation in CDMA has positioned the Company to become a leader in the Korean market, as well as the emerging CDMA sector in China." The AWT6109 is manufactured at Anadigics' New Jersey fab, using InGaP HBT technology as a device selection due to its component reliability, temperature stability, and ruggedness which provides OEMs (original equipment manufacturers) industry leading ACPR (adjacent channel power rejection) performance of -53dBc and 35 percent Power Added Efficiency (PAE). The fully-tested AWT6109 is priced at $4.00 in quantities of 10,000 pieces and samples of the device with an evaluation fixture are already available now. Press release

Rohm Develops 180mW IR Laser Diode & Releases New Chip Scale Packages

October 25, 2001...Rohm Company Ltd. of Kyoto, Japan has developed a new 180mW high-power infrared (IR) laser diode (LD) geared specifically to serve as optical pickups in high-speed CD-RW drives. The new product is a follow-on to Rohm's 150mW product. Rohm has already begun shipping samples of the new product, called RLD78PZW2 at a price of 2000 yen/unit). The company expects a warm reception and is planning mass production of 0.5 million units per month expected to commence in December 2001. Details are included in Rohm's press release. Rohm is also leading the way in chip scale packaging by developing their new VMN series for packaging the industry's smallest and lowest-profile discrete products such as transistors, diodes, and tantalum capacitors. Samples of this series will begin shipping in November 2001 at 30 yen/unit, with mass production of ten million units per month expected to commence in March 2002. Details are included in that press release.

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Commentary & Perspective...

What's the Buzz from Baltimore?

October 25, 2001...The Granddaddy of compound semi industry technical events, IEEE's GaAs IC Symposium, was held this week in Baltimore, Maryland USA and as usual, just about everyone form the technical community and their sales staffs turned out. First rushes of what made the buzz are coming in, and we welcome your spin. The hottest news was that II-VI Inc. has purchased the SiC line from Litton Airtron, with a rumored pricetag of less than $5M, which in my humble opinion, is a steal as the process, which is the original from Northrop Grumman, is notoriously excellent. How it will continue to develop under the II-VI banner remains to be seen. For history buffs (and feel free to correct me if I'm wrong), that process was so captive under Northrop that the DoD pressured NG to share what the US taxpayers bought with the commercial sector, and the result was a licensing arrangement with Litton Airtron, with Litton eventually being acquired by Northrop, so the process circled back "home." It could be that NG nor its Litton arm didn't need it, but it could also be that the DoD again wanted to encourage commercial exploitation (prices come down for even the DoD when volumes come up with commercial deployment). We look forward to hearing more from II-VI Inc. of their plans for this process... as I'm sure their new competitors, such as Sterling and Cree are anxiously awaiting.

Did RFMD only pay $7M for RF Nitro? That was the buzz in Baltimore, and if so (the press release says "price not disclosed", so we don't know prior to the SEC filing), that too was a steal, given their excellent technology and strong management credentials. Taking the other tack to preparing for the upcoming GaN explosion, developers at Nitronex secured a hefty $24.5 million in second round funding in July (press release) and by all indications, their VC are ideally-typical, providing what everyone is looking for, patient capital. Nitronex also spent the summer beefing up their highly proprietary "Sigantic" GaN on silicon process and their wireless expertise by adding a super-pro named John Brewer as their new VP of Product Marketing for Wireless Applications (press release). I had a nice long chat by phone with John today and look forward to sharing their progress and potential with readers in coming editions. For now... Nitronex is definitely a GaN house to closely watch. Seems they really can put GaN on 4 inch silicon wafers. First prototypes to very select customers are due out in Q-1/Q-2 of 2002... which isn't that far off.

Mot's GaAs on Silicon is real... according to those who sat through a very informative and impressive presentation by IQE. The Mot/IQE team has essentially taken the original German ideas and moved them forward, dramatically, and the resulting system will also allow for InP and GaN on Si as well as GaAs, using the same system by "playing around a bit" with the oxides involved. Evidently, the real issue to be tackled now appears to be the conducting substrate, which could end up a killer for them (as it's struck others before). But the proof is in the cellphone performance, and IQE displayed a cellphone at their booth which had a GaAs on Si power amp inside. And finally, from Baltimore... Singapore epi house, MBE Technology has been purchased by a UK investment house. The French InP substrate company named INPACT has completed its secondary funding and are building a new factory. By these early reports, the general feeling in Baltimore was that there will continue to be considerable industry consolidation coming in the next few months as more companies battle for position in the fully populated broadband market.

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