RFMicro Acquires TriQuint Mobile Chips

RFMicro  Devices (RFMD) recently announced it will acquire TriQuint Semiconductor for approximately $1.6 Billion. This combination of technology and product offerings better positions RFMicro to compete in the mobile and wireless markets.

TriQuint has long been a supplier to both Blackberry and Apple for semiconductor chips used in voice and data communications. RFMicro has complimentary devices to those from TriQuint which act as signal amplifiers and filters (which are used to improve and boost the quality of wireless signals). The RFMicro filter portfolio will be augmented by TriQuint filter chips, giving the new division a broader offering for both mobile devices and WiFi base stations and routers.

RFMicro also has a suite of devices for power and power management of mobile devices. They count Samsung as one of their largest end-users. With the merger of these products, their customer base now includes the top cellular and smartphone providers worldwide. It also bridges the military-defense-aerospace users which predominately incorporated RFMicro semiconductors for their networking infrastructure with TriQuint that was strong with the telecom and commercial designers.

In their corporate press release, RFMicro explained the rationale behind the acquisition as:

The merger will create new growth opportunities in three large global markets – mobile devices, network infrastructure and aerospace/defense – with scale advantages, innovative new products and a greatly improved operating model. RFMD and TriQuint together will offer the industry’s broadest portfolio of critical enabling technologies to develop and commercialize tightly integrated solutions at record speeds.

The combination will foster a new wave of exciting mobile devices that are broadly accessible and offer dramatically higher data throughput, to the benefit of carriers and consumers alike. The combination also creates a leader in infrastructure and defense (with approximately $500 million in annual revenue), with a broad portfolio of products and foundry services supporting applications including radar, next generation base stations, optical communications, and the Internet of Things.

This transaction combines complementary product portfolios, featuring power amplifiers (PAs), power management integrated circuits (PMICs), antenna control solutions, switch-based products and premium filters – and leverages these to deliver the industry’s most comprehensive portfolio of high-performance mobile solutions.

It will also strengthen the combined company’s service to the infrastructure and defense/aerospace industries and enable advanced gallium nitride (GaN) solutions for additional markets and applications.

This combination of companies comes at a time when mobile device purchases are accelerating rapidly.

Douglas Gilstrap, Senior Vice President and Head of Strategy at Ericsson, stated:

The rapid pace of smartphone uptake has been phenomenal and is set to continue. It took more than five years to reach the first billion smartphone subscriptions, but it will take less than two to hit the 2 billion mark.

Between now and 2019, smartphone subscriptions will triple to 5.6 billion.

The companies reported that post-merger, the current CEO of RFMicro, Bob Bruggeworth, will remain as CEO; TriQunit CEO Ralph Quinsey will become the non-executive chairman of the board. Still to be announced is the new name for the combined company.

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(Image Credit – TriQuint Semiconductor )

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