RF Micro Devices Inc. (RFMD: Quote) announced that it has entered into a definitive agreement to transfer its molecular beam epitaxy or MBE wafer growth facility to IQE plc., a global supplier of advanced semiconductor wafers.
The company said its MBE growth facility supplies MBE wafer starting material to its wafer manufacturing facilities, which RFMD will continue to own and operate in Greensboro, NC, and Newton Aycliffe, UK.
The company noted that GaAs semiconductor products incorporate transistor layers grown on either an MBE or metal organic chemical vapor deposition or MOCVD process.
RF Micro Devices said it outsources all MOCVD-based starting material, and RFMD will outsource MBE-based starting material with the completion of the transfer.
In conjunction with the transfer, RFMD and IQE have entered into a supply agreement under which IQE will supply RFMD MBE- and MOCVD-based starting material. The transfer and supply agreement will lower RFMD's manufacturing costs, beginning in the September 2012 quarter, RF Micro Devices said.
In the June 2012 quarter, RFMD currently estimates the transaction will result in a non-cash GAAP charge of approximately $0.02 to $0.03 related to equipment and inventory write-offs and will be about neutral to non-GAAP operating results.
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by RTT Staff Writer
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