TriQuint Buys Into IBM's SiGe Business for $22 MillionJune 20, 2002...In a major expansion move forward for compound semi industry leader, TriQuint
Semiconductor of Hillsboro, Oregon USA, TriQuint has purchased what looks like
everything related to IBM's famous pioneering SiGe arm, except the actual device
manufacturing. Initial pricetag for the new TriQuint acquisition is $22 million.
Terms of the deal call for TriQuint will take over the design, development,
marketing and sales of certain standard and custom IBM semiconductor products
used in wireless phones and other communications applications. The IBM products
being transferred to TriQuint include voltage-controlled oscillators (VCOs),
receivers and wideband CDMA chipsets, all based on silicon germanium process
technology, while IBM, in its new position as a "foundry" will continue
to manufacture the SiGe components for TriQuint. Further, TriQuint "will
assume related product assets and be granted assignments and licenses to associated
intellectual property," which is the part that makes this a truly big step
for TriQuint. The transaction is expected to close by the end of June 2002.
The $22 million is an initial payment for the related IBM assets, and "subsequent
adjustments contingent upon business volumes" will be made in the future.
TriQuint has estimated that the acquisition of IBM's SiGe business will add
approximately $12 million to $15 million to its revenue over the next 12 months.
While no longer selling its SiGe line, IBM did state that it will continue to
participate in the wireless semiconductor marketplace through its foundry manufacturing
and custom chip activities. “IBM is refocusing its Microelectronics business
on high-end foundry, ASICs and PowerPC-based standard products,” said Michel
Mayer, general manager, IBM Microelectronics Division. “We believe TriQuint’s
strong presence in the wireless component marketplace and IBM's increased focus
on foundry make this agreement a natural. Customers will continue to have access
to these components, now as part of a larger family of TriQuint wireless products,
while still benefiting from advanced IBM manufacturing technologies like silicon
germanium.” Steve Sharp, Chairman, President and CEO of TriQuint who must
surely be elated at the new and expanded prospects added that, “This acquisition
provides TriQuint with another key piece of the RF front end which will further
help us in developing fully integrated modules for wireless phones. In addition,
the relationship with IBM gives us access to a leading foundry for devices based
on silicon germanium. We believe this is the beginning of a highly successful
relationship with an outstanding partner.” Press
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June 20, 2002...Rumors that Hoya Corporation will be the newest entry into the bulk SiC business
have been confirmed by Hoya's announcement that it has officially established
a new venture company, called Hoya Advanced Semiconductor Technologies, to develop
and produce cubic silicon carbide (3C-SiC). 3C SiC has long been touted as the
longterm best prospect as it more closely resembles the type material mainstream
semiconductor manufacturers favor. At the helm of the new enterprise are two
extremely familiar and highly honored names in compound semi R&D, Dr. Hiroyuki
Nagasawa, who will serve as the CTO, based on his achievements in developing
3C-SiC, and one of the grand masters of the compounds, none other than Dr. Masayuki
Abe who will serve as the inaugural Director of the Development Center of
the new company. Hoya AST has an initial capital of 350 million yen and the head office
will be in Akishima-City, Tokyo. The CEO will be Mr. Fumio Kitahara. The vision
of the new company is to promote alliances with companies or universities worldwide
to expand the wide bandgap semiconductor market "as quickly as possible."
Hoya AST appears to be structured much like a USA "startup" and will
entice new employees with a very original management system, including a stock
option system, as a means of recruiting especially talented people. The total
investment in plant and equipment will be 2.6 billion yen and annual revenues
are expected to reach 4 billion yen by FY2007, when the initial public stock
offer will be made. Contact for more information is the company's CEO, Mr.Fumio
Kitahara, at Hoya Advanced Semiconductor Technologies 3-3-1 Musashino, Akishima-shi,
Tokyo 196-8510 e-mail: fkitahara@sngw.rdc.hoya.co.jp Press
release OpNext Gets More of Hitachi's ActionJune 19, 2002...Hitachi Ltd. of Japan, which calls its Semiconductor and Integrated Circuits
Group "SIC", has decided to transfer SIC to its OpNext,
Inc. facility in Eatentown, New Jersey USA which specializes in 40Gig fiberoptic
solutions. The transfer is due to be officially completed October 1, 2002 and
will cover the opto-device division of Hitachi's SIC as well as the opto-electrical
device development and manufacturing team and fabrication facilities from Hitachi
Tohbu Semiconductors, Ltd. Essentially, SIC designs, manufactures and sells
devices and modules for the access communication, fiber-optic backbone and metro
markets, in addition to the information and industry markets so the transfer
is regarded as a natural evolution in decentralizing Hitachi's holdings. SIC
has developed unique technologies in lasers, receivers, and packaging, including
high-power lasers, and maintains low-cost mass production capabilities, so OpNext
will thus be even more heavily involved in compound semi solutions. As a result
of the transfer, OpNext will be able to provide a higher level of service to
its device users, while strengthening its market position and enhancing its
current product portfolio consisting of transceivers, transmitters, receivers
and laser diode modules. All of SIC's existing customers will be fully supported
by OpNext after the merger. Press
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TRW's Lucas Aerospace in the UK to be Acquired by Goodrich for $1.5 BillionJune 20, 2002...If all goes well, TRW's Aeronautical Systems business, which was formerly known
as Lucas Aerospace and is based in the UK, will be acquired by Goodrich Corporation
of Charlotte, North Carolina USA for $1.5 billion in cash. The parent company,
TRW Inc., which has an estimated sales of more than $16 billion, said that with
the customary U.S. and European regulatory approvals, the deal should close
by the early fourth quarter of 2002. With sales of $1.1 billion in 2001, TRW
Aeronautical Systems, which is based in Solihull, UK, is regarded as a leading
supplier to all major civil and military aerospace programs in the Western world
and employs approximately 6,200 people. Products and services include: aircraft
engine and flight controls, cargo handling systems, power generation and management,
missile actuation, nacelle actuation, hoists and winches, flexible shafts and
couplings, and comprehensive aftermarket support. It also provides innovative
aftermarket service programs, including asset management and service-level guarantees
for a number of commercial airlines. It is not the aerospace-related
arm of TRW that is based in Torrance, California, which is involved in a variety
of compound semi based R&D activities and commercial enterprises. That arm
of TRW is still being courted in a hostile manner by Northrup Grumman. TRW stated
that the $1.5 billion will be used to reduce dept. Press
release UTCI's Lowered ExpectationsJune 19, 2002...As anticipated, Uniroyal Technology Corporation has been delisted on the Nasdaq
stock exchange. Here's the official Edgar 8K wording... On June 17, 2002, the
Nasdaq Stock Market, Inc. approved the Registrant's application to list its
common stock, $.01 par value, on the Nasdaq SmallCap Market. The action was
taken because the closing bid prices of the Registrant's common stock had not
met the requirements for continued listing on the Nasdaq National Market. In
order for the Company's common stock to remain listed on the Nasdaq SmallCap
Market the Company will have to demonstrate compliance with the minimum $1.00
per share requirement by August 21, 2002. The closing stock price of the Company's
common stock on June 17, 2002 was $0.21. The Company might be eligible for an
additional 180-day grace period if the Company meets the initial listing criteria
for the Nasdaq SmallCap Market pursuant to Marketplace Rule 4310 (c)(2)(A).
That rule requires that the issuer have stockholders' equity of $5 million,
market capitalization of $50 million or net income from continuing operations
of $750,000 in the most recently completed fiscal year or in two of the last
three most recently completed fiscal years. 8K
filing. The future of UTCI's Sterling Semiconductor that makes SiC, and
Uniroyal Optoelectronics (UOE) units remain matters of widespread industry rumors
and speculation. Rick Gold Graduates from GenoaJune 20, 2002...Genoa Corporation of Fremont, California, which was masterminded by Rick Gold
who was once at the helm of the compound semi industry pioneering company Pacific
Monolithics, has announced that it is making "a number of key changes in
light of increased focus on customer design-ins and in the context of the current
business environment." Included is the departure of Rick Gold, the company's
CEO who brought Genoa's revolutionary Linear Optical Amplifier (LOA) to market.
Genoa expressed it as Gold "stepping aside" and explained that, in
addition, the company is taking steps to cut its cost structure with a workforce
reduction of approximately 20 percent. It is well known that Rick Gold loves
new startups and the thrill of taking a company from original inception to maturing.
It seems Genoa has reached that goal, as their LOA devices will now move from
R&D to real product and volume manufacturing. "Genoa has come to an important
inflection point in its history," said Gold, who has served as president
and CEO since 1998. "The LOA has been developed from a technology idea to
a real, shipping product with the potential to change the economics of key pieces
of optical networks. Today, as the company is actively working with customers
who are embracing our product and vision, I am confident that Genoa has achieved
an excellent foundation for its next phase of growth." According to Jim
Witham, Genoa senior vice president of sales and marketing, this phase includes
a shift in emphasis from early-stage research and development to customer-oriented
product engineering. Genoa has appointed Fariba Danesh, the company's senior
vice president of operations, as acting CEO and for a time, Rick
Gold can still be reached at Genoa, 510-979-3034. Press
release Raytheon FLIRs Headed for Korea's Flying TigerJune 17, 2002...Forward Looking InfraRed (FLIR) devices generally utilize advanced compound
semi sensor technology, and a $45 million contract from Daewoo Heavy Industries
& Machinery (DHIM) in the Republic of Korea (ROK) has been awarded to the Raytheon
Company to supply the devices to Korea for their Korean ElectroOptical Tracking
System (KEOTS), which is part of the ROK Army's Flying Tiger vehicle. The KEOTS
is an advanced ground-to-air passive fire control system that provides the vehicle
round-the-clock capability to acquire and track aerial targets such as aircraft
and helicopters. The Flying Tiger is a self-propelled antiaircraft gun system.
Raytheon's Tactical Systems business unit in El Segundo, California USA., will
perform the work on the contract, which includes a potential follow-on for additional
systems. "This is the first production contract following an extensive engineering,
manufacturing and development phase," said Andy Zogg, director of Raytheon
Surface Combat Systems. "The tracking systems were subjected to extensive
qualification testing, including numerous live firing tests at airborne targets.
Raytheon has worked closely with DHIM and numerous government entities to bring
this program to fruition." The KEOTS consists of a second-generation IR
sensor (FLIR) with a high- performance CCD TV sensor, both of which are bore
sighted to a long-range, high repetition-rate, eye-safe laser rangefinder. Press
release NEC Standardizes on Agere's GPRS Cellphone PlatformJune 18, 2002...Agere Systems of Allentown, Pennsylvania USA has announced that NEC has standardized
on Agere's General Packet Radio Service (GPRS) cellphone platform for new i-mode
products. Wireless network operators are currently offering these products in
Europe and Asia Pacific now, and they are slated to also be available in the
USA. Agere's Global System for Mobile Communications (GSM) GPRS platform, which
combines the core hardware and software required to develop and customize cell
phones for high-speed, data-centric applications, is touted as enabling manufacturers
the capability to reduce product development and network approval time by up
to 50%. "The time-to-market advantage provided by Agere's platform solution
has enabled NEC to become an early entrant into the GPRS handset market,"
said Yoshiharu Tamura, assistant general manager of NEC's Mobile Terminals Division.
"The fact that our phones have been approved for use in multiple markets
by multiple operators is testament to Agere's core technology and systems design
expertise." GPRS-enabled phones offer a major step forward in cellphone
performance and Internet connectivity. Agere accomplished the key design win
by performing extensive testing of its core GSM/GPRS system, as well as interoperability
tests with major network equipment vendors. The platform provides Class 8 GPRS,
which means it can enable Internet downloads to GSM cell phones at up to 50
Kilobits per second. The i-mode service, which has been deemed successful in
Japan since its launch in 1999, currently has about 32 million users in that
country. Users of i-mode have access to a wide variety of communication, information
and entertainment content and services such as email, games, hotel/flight reservations,
news, traffic information and online shopping. i-mode was launched in Europe
last month by KPN Mobile and will be available in other European countries later
this year. AT&T became the first U.S. operator to introduce a version of i-mode,
called mMode, last month in several American cities. Press
release Our news features are reported
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