RF Micro Devices finishes its acquisition of Filtronic Compound Semiconductors

GREENSBORO, N.C., 4 March 2008.RF Micro Devices (RFMC) in Greensboro, N.C., has completed its acquisition of Filtronic Compound Semiconductors Ltd. in Newton Aycliffe, England, a wholly owned subsidiary of Filtronic PLC.

RFMC officials say the high-volume gallium arsenide (GaAs) fab of Filtronic will reduce RFMD's GaAs pHEMT manufacturing costs and provide incremental GaAs manufacturing capacity to support company growth. RFMC also says the addition of Filtronic's microwave and millimeter wave component will strengthen RFMD's business.

RFMC paid about 12.5 million pounds ($24.8 million) in cash for Filtronic Compound Semiconductors.

"The acquisition significantly lowers our overall GaAs cost structure, which we believe will result in improved margins," says Bob Bruggeworth, president and chief executive officer of RFMC. "RFMD's GaAs capacity is increased by approximately 30 percent, giving us the flexibility to capture near-term demand upside and defer future fab-related capital outlays. Finally, we acquire a strong microwave and millimeter wave business that adds profitable, high-margin revenue to MPG."

For more information contact RFMC online at www.rfmd.com.