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Editorial: Emcore & Uniroyal Tech Enter Negotiations Regarding UOE's Independent Future
 
... Update your contact files to include Uniroyal Compound Semiconductors, Inc. (UCS) as a potential independent entity. As filed last week with the SEC, Emcore Corporation and Uniroyal Technology Corporation (UTCI) have entered into negotiations regarding their joint venture, Uniroyal Optoelectronics (UOE). Emcore currently owns 36% of UOE and UTCI...
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TRW/Velocium Launches First InP LNA Chips

July 23, 2001...TRW has literally and figuratively launched their first InP low noise amplifier (LNA) ICs by seeing them up, off, and away and into earth orbit on the Swedish Odin-1 scientific satellite. Fabricated from TRW's patented InP transistor technology, which is the crux of TRW's new Velocium spinout company in California, the LNA is part of a broadband radiometer being used by the Odin-1 satellite. The LNA was designed to enable the radiometer to detect the very faint radiation being emitted by galactic oxygen. Thesis of the mission is that scientists believe that a better understanding of interstellar oxygen chemistry may provide them with greater insight into the formation and evolution of galaxies. The Odin-1 satellite, built and operated by the Swedish Space Corp. for the space agencies of Sweden, Canada, Finland and France, was launched in February 2001 to conduct astronomic and atmospheric research. In addition to space applications, TRW, through Velocium, has also recently introduced a wide variety of very high-speed InP components and other products for fiber optic and wireless telecommunications systems. Both scientific and commercial chips will be produced in TRW's new high-volume InP manufacturing facility which has the notoriety of being the first to utilize 4-inch InP wafers.

Cree's First SiC Schottky Diodes Hit the Power Market

July 23, 2001...Cree, Inc. chose the International Symposium on Power Semiconductor Devices last week to formally introduce their first SiC Schottky diode chips, which consist of two initial products: a 600 Volt, 1 Amp device and a 600 Volt, 4 Amp device. Cree is currently sampling these devices and a production ramp is slated for first quarter of fiscal 2002, with additional offerings to be added. Target applications include power conditioning for high frequency power supplies, power factor correction, and as power conversion devices in motor controls, with a major reduction in power consumption as the primary virtue of the devices. At this stage of technology progress, up to 50% of the power loss in a typical power circuit is attributable to the switching speed of a silicon PIN diode. Due to the faster switching speed of a SiC Schottky diode, Cree estimates that the switching loss associated with the diode can be virtually eliminated, resulting in an overall 4-7% reduction in the amount of power consumed by the circuit, which should facilitate smaller heat sinks and switch requirements, thus reducing the cost and size of the circuit. Using the Cree Schottky's Kansai Electric Power Co., Inc. (KEPCO) of Osaka, Japan has demonstrated and published power results of a 6 kV MOSFET and a 5.5 kV JFET that proved that on-resistances were 1/25th and 1/65th lower, respectively, than the theoretical limit for an equivalent silicon device. In addition, high voltage SiC PIN diodes were demonstrated with blocking voltages up to 19 kV, representing a 50% increase and almost double that which is commercially available on silicon.

Matsushita Eyes Video Market with MMICs

July 23, 2001...Matsushita Communication Industrial Co. has a clear cut vision on the future of video transmission with its compound semi based MMIC technology. Matsushita has announced the development of a monolithic microwave integrated circuit (MMIC) to support what they call "next-generation video signal transmissions over opticaliber" that integrates functions that formerly required three separate chips. GaAs MMICs are now considered a mature technology that traces its strong development background to USA defense applications. Ironically, MMICs had their original roots in commercial cable television (CATV) applications, a market that rapidly dried up with the scrambling of signals, by law, in and out of the USA. The Matsushita chip is 7 sq. mm, which is approximately 33% smaller than the chips it aims to replace, operates at 1.5 watts (about half the power consumption of existing devices) and supports FM optical signal transmission technology as developed by compound semiconductor pioneer Nippon Telegraph and Telephone Corp. as a means of significantly reducing signal degradation which... is the purpose of creating a MMIC in the first place.

Showa Denko & NTT Collaborating on InGaP HBT Production

July 23, 2001...Japan's Showa Denko KK and NTT's Advanced Technology arm have completed a formal collaboration agreement on the production of InGaP HBTs. According to the agreement, SDK will begin contract manufacturing of MOCVD-grown InGaP epiwafers to be used in NTT-AT's HBTs, target applications for which will be as devices in the third-generation cellular phones, slated for rollout this coming fall. SDK and NTT-AT have also concluded what they term a "technical tie-up agreement" whereby SDK's compound semi high volume production technology is combined with N TT-AT's epitaxial growth and device evaluation technologies as a means of ensuring higher quality wafers. The two prestigious companies have committed to jointly develop markets for the HBTs. To meet the commitment, SDK has stated they will install new facilities in their existing cleanroom in Chichibu, Saitama Prefecture by September which will have the capacity to produce 500 InGaP HBT epiwafers per month and by 2003, the projected capacity should reach 2,000/mo. To date, Showa Denko is reported to have already invested approximately 3 billion yen in the Chichibu plant to reach the 500 unit mark and the 2003 ramp is projected to cost SDK another 2 billion yen, yielding a target of 2 billion yen in total sales in 2003.

CSMC Ramps GaAs Wafer Production with Intent to Go Public

July 23, 2001...Compound Semiconductor Manufacturing Corp (CSMC), a GaAs wafer producer based in Taiwan which was established just last September, has completed construction of its initial 4-inch GaAs wafer production line. The new line is currently delivering sample products for testing and is slated to begin operation in the fourth quarter of this year with an estimated monthly capacity of 2,000 chips. Plans are for CSMC to build two more GaAs wafer production lines by the end of 2001 bring its estimated monthly production capacity to over 5,000 chips. CSMC has stated its plans to increase the number of its GaAs wafer production lines to five in 2002 which will produce an estimated increase in its capital in the "near future" from T$360m to T$500m. CSMC Has also forecast that it will break even at the end of this year and turn profitable in 2002 at which time the company intends to get itself listed on the Taiwan Stock Exchange or the over-the-counter (OTC) market in early 2003.

Agere Pumps TyCom Under the Sea

July 23, 2001...Agere Systems is slated to provide $70 million worth of GaAs-based 980 nm high power undersea pump lasers to TyCom. The design win is part of a three-year agreement that TyCom signed earlier this year with Agere to supply optical components for use in building the TyCom Global Network, an extensive and technologically advanced undersea optical network. The agreement is illustrative of a number of such teamings with compound semi industry leaders. "This announcement brings together two leaders in their respective spaces -- one in optoelectronic components and the other in submarine networks,'' said Dan DiLeo, executive VP of Agere's Optoelectronics division. Phase 1 of the TyCom Global Network is expected to span 90,000 kilometers and offer multi-terabit, or trillions of bits per second, capacity to more than 30 major cities around the world. Agere's new 200 milliwatt 980 pump laser diode, called the LP200, is subject of the specific design win. The laser is used in undersea optical amplifiers, or repeaters, which are installed along a fiberoptic cable route to boost the strength of digital signals that carry voice and data traffic. It is implemented as part of an erbium-doped fiber amplifier, which permits direct amplification of an optical signal without the need for electrical conversion. "An erbium-doped fiber amplifier is the engine that powers a signal across a transmission route, and the pump laser is the high-octane gas," Mr. DiLeo illustrated. The LP200 is an uncooled, Fabry-Perot pump laser with an external fiber Bragg grating for wavelength stabilization and the laser has a drive current of 350 milliamps.

Vitesse Launches New Translator Family

July 23, 2001...Vitesse Semiconductor has expanded its timing and logic product line with a new family of translators that enable the bridging of devices with ECL I/O to LVDS I/O which are heavily utilized in today's CMOS processing. Whereas other solutions normally require up to eight devices to implement parallel bus applications, using the Vitesse translators allows accomplishing those tasks with only one device, thus significantly reducing board space and power requirements. "These new products help our customers bridge technologies and gives them the capability to utilize the speed and complexity that are available in today's CMOS devices. This is a complete family of devices that support OC-3 to OC-192 systems," said Vitesse application engineer Matt Dru. "These devices also include clock channels for data retiming to help ease the timing constraints on the system designer."

Procomp Favors Compounds Over Motherboards

July 23, 2001...Procomp Informatics Ltd. of Taiwan, a noted "motherboard" manufacturer, is obviously turning from boards to chips, many of which are compound semiconductor-based. Procomp is making it known that its intent is to gradually end its motherboard manufacturing activities. Procomp Informatics recently reported after-tax profits of T$747m for the year 2000, with net earnings per share of T$4.8 and will issue year-end stock dividends of T$4 per share for the year 2000. Procomp has issued its forecast revenues which the company says will rise 30 per cent year-on-year to T$8.5bn for 2001.

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Commentary & Perspective...

Emcore & Uniroyal Tech Enter Negotiations Regarding UOE's Independent Future

July 23, 2001...Update your contact files to include Uniroyal Compound Semiconductors, Inc. (UCS) as a potential independent entity. As filed last week with the SEC, Emcore Corporation and Uniroyal Technology Corporation (UTCI) have entered into negotiations regarding their joint venture, Uniroyal Optoelectronics (UOE). Emcore currently owns 36% of UOE and UTCI owns the majority share of the HB-LED company, holding 64%. UOE is officially part of UCS, a wholly-owned subsidiary of UTCI. The transaction is subject to certain mutually acceptable conditions including the approval by the respective Boards of Directors of the two companies. According to Howard R. Curd, Chairman and CEO of UTCI, "This is a unique way to maximize shareholder value for both Uniroyal Technology and Emcore. Substantial scientific advances recently completed by UOE have resulted in several market leading products that show great commercial promise. This will also allow our shareholders to realize 100% of the exceptional growth anticipated for Uniroyal Optoelectronics." Reuben F. Richards, Jr., President and CEO of Emcore added, "Our collaboration with UOE will continue going forward as their success enables them to become an increasingly important buyer of our capital equipment. Emcore will participate in that growth as a shareholder in Uniroyal and the sale of our interest in UOE will allow us to focus additional resources on our other businesses." In addition to UOE, UCS currently includes Sterling Semiconductor and the subsidiary is postured in acquisition mode. UCS recently appointed longtime compound semi substrate catalyst David Miller (formerly head of Litton Airtron) as its CEO.

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