Three-Five Systems to make all Microtune's RF modules
By John Walko, CommsDesign.com
Mar 28, 2003 (7:21 AM)
URL: commsdesign.com
LONDON — Microtune Inc has sealed a manufacturing, test and assembly deal with Three-Five Systems Inc. (TFS) involving the transfer of Microtune's manufacturing and test equipment at its Philippines facility to TFS's production plant in Manila.
TFS will make and assemble, from the second quarter of this year, all of Microtune's RF tuner and wireless modules. The range includes silicon tuners, amplifiers and upconverters as well as production-ready subsystems for cable modem, automotive and airline entertainment, digital television and Bluetooth applications.
As part of the deal TFS will take on between 450 to 500 Microtune employees in Manila, and transfer those employees to TFS' nearby manufacturing facility. After qualifications are complete for the TFS facility, Microtune said it plans to close its Manila manufacturing facility.
"We believe that this strategic manufacturing alliance is a win/win for our company, for TFS, and most importantly, for our customers," said Douglas Bartek, chairman and chief executive of Microtune. "It permits Microtune to concentrate our energy and resources on RF technology innovation and advanced product development."
TFS is paying about $2.8 million for the equipment it is buying from Microtune. It is also purchasing some of Microtune's existing inventory. As a result of the alliance, TFS expects that total 2003 revenue for its Integrated Systems and Displays division will be in the range of $150 to $170 million.
Last year TFS expanded the ISD group with the purchase of ETMA in Redmond, Wash., and added EMS capabilities that allowed it to win business from new customers. The company is best known for its range of displays, including color LCD components and organic light emitting displays (OLED). Its Microdisplay division has been pioneering the development and manufacture of liquid crystal on silicon (LCoS) displays. |
