Everbody Is Ramping Up>
Wednesday July 28, 2:55 pm Eastern Time
Company Press Release
RF Micro Devices, Inc. Announces New Gallium Arsenide HBT Fabrication
Facility
New Capacity Is Anticipated To Lower Product Costs And Enhance RFMD's Competitive Position
GREENSBORO, N.C.--(BUSINESS WIRE)--July 28, 1999-- RF Micro Devices, Inc. (Nasdaq: RFMD - news), a leading provider of proprietary radio
frequency integrated circuits (RFICs) for wireless communications applications, today announced that its Board of Directors has approved plans to build a second
facility to fabricate Gallium Arsenide (GaAs) Heterojunction Bipolar Transistor (HBT) semiconductor wafers.
The new plant will be located near its existing GaAs HBT facility in Greensboro, NC.
The new facility will be constructed in two phases and, when fully complete and running at full capacity, is expected to be able to produce the equivalent of
approximately four times as many wafers as the current facility at its full capacity. The Company currently expects that the first phase will be completed and
commercial production of wafers will begin late in 2000. The full capacity output following the first phase of construction is anticipated to be the equivalent of
approximately 60,000 four-inch wafers per year. The second phase of construction currently is expected to be completed late in 2001 and would bring the full
capacity of the new fab to the equivalent of approximately 210,000 four-inch wafers per year. This new capacity will allow the Company to expand capacity for
current customers as well as address new customers and markets. Additionally, it is anticipated that the new capacity will help the Company achieve lower product
costs and enhance the Company's competitive position.
The technology that RFMD uses to fabricate GaAs HBT wafers was developed by TRW and licensed to RFMD in 1996. With TRW's assistance, RFMD began
commercial production from its first GaAs HBT fab in September 1998 and is currently ramping its output to reach its expected full capacity of approximately
50,000 four-inch diameter wafers per year. The Company has experienced strong demand for its products manufactured using this technology, particularly for power
amplifiers in cellular and PCS telephones. This new facility is one of several initiatives the Company has undertaken in recent months to help it address that demand.
RF Micro Devices received financial incentives from the City of Greensboro, from Guilford County and from the State of North Carolina, which were a critical factor
that influenced its Board's decision to locate the facility in Greensboro over several alternative competing locations. The Company noted that it greatly appreciates the
strong local support it has received and looks forward to expanding its operations in Greensboro and the Guilford County area.
RF Micro Devices, Inc., an ISO 9001 certified manufacturer, designs, develops, manufactures and markets proprietary RFICs for wireless communications
applications such as cellular and PCS phones, cordless phones, wireless LANs, wireless local loop handsets, industrial radios, wireless security systems and remote
meter readers. The Company offers a broad array of products -- including amplifiers, mixers, modulators/demodulators, and single-chip receivers, transmitters and
transceivers -- that represent a substantial majority of the RFICs required in wireless subscriber equipment. The Company's strategy is to focus on wireless markets
by offering a broad range of standard and custom designed RFICs in order to position itself as a ''one-stop'' solution for its customers' RFIC needs. RF Micro
Devices, Inc. is traded on the Nasdaq National Market under the symbol RFMD.
This press release contains forward-looking statements that relate to the Company's plans, objectives, estimates and goals. Words such as ''expects,'' ''anticipates,''
''intends,'' ''plans,'' ''believes,'' and ''estimates,'' and variations of such words and similar expressions identify such forward-looking statements. The Company's
business is subject to numerous risks and uncertainties, including probable variability in the Company's quarterly operating results, manufacturing capacity constraints,
risks associated with the Company's operation of a wafer fabrication facility, dependence on a limited number of customers, variability in production yields, the
Company's ability to manage rapid growth, dependence on third parties and risks associated with doing business in Asia and other areas of the world. These and
other risks and uncertainties, which are described in more detail in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission,
could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.
RF Micro Devices® and RFMD(TM) are trademarks of RF Micro Devices, Inc. All other tradenames, trademarks and registered trademarks are the property of
their respective owners.
For further information about RFMD, please visit our home page at rfmd.com .
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