RF Micro Devices Equips Chinese Cellular Handset Manufacturer
August 30, 1999 10:04 AM Eastern Time
GREENSBORO, N.C.--(BUSINESS WIRE)--Aug. 30, 1999--
China's Telecom Growth Drives Domestic Production Capacity
RF Micro Devices, Inc. RFMD , a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today announced receipt of its first major order from China for RFICs used in dual band GSM cellular handsets.
Xiamen Overseas Chinese Electronic Co., Ltd. (XOCECO) will be using the RF2138 and RF2140 power amplifiers in the new dual band GSM cellular handsets designed for a rapidly growing domestic market. Established in 1985 to produce televisions for the Chinese market, Xiamen entered the cellular handset market in 1998 with the production of a single band GSM handset. Xiamen has stated that it expects to produce one million handsets in 2000.
"RF Micro Devices is pleased to supply Xiamen as it introduces locally manufactured handsets into the Chinese market to compete with the large producers," said Jeffrey M. Nemeth, RFMD(TM) sales manager, Asia Pacific region. "Xiamen is a well-known brand in China and should do well in connection with the Chinese government initiative that encourages the development of domestic handset products."
The RFMD(TM) announcement follows a trend of accelerating telecom usage across China, climbing from just .38% in 1978 to 8.11% in 1997. Urban telephone penetration rose from 1.9% in 1978 to 26.1% in 1997, with significant concentration in large cities such as Shanghai (44.06%) and Beijing (38.48%).
With approximately 23 million cellular subscribers currently in China, the country faces anticipated growth of 10 million users per year. To keep pace with the expansion, several Chinese companies have started development and production of GSM Dual Band phones.
The Chinese Ministry of Information Technology (MIT) controls the expansion of telecommunications service throughout China. The country's two main suppliers of phone service and mobile phone systems, China Unicom and China Post & Telecom, rely on both local and foreign manufacturers to provide base stations and handsets.
To quickly address complex telecommunications needs in major cities and rural areas, the MIT has introduced sophisticated foreign technology and equipment. While the MIT has initially allowed foreign manufacturers to produce the phone equipment, it is also funding domestic scientific research and encouraging Chinese manufacturers to make foreign-designed phones. In a final phase aimed at establishing independent production capacity, Chinese manufacturers will produce domestically designed phones and sell them under Chinese brands.
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 its current wafer fabrication facility and the proposed construction of an additional 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(R) 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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