Rubicon Technology, Inc. (RBCN) said on Monday that it has amended its sapphire supply agreement with its key SoS RFIC customer, Peregrine Semiconductor Corporation.
Under the amendment, Peregrine's obligation to purchase material from Rubicon in 2008 and the first half of 2009 is replaced by a multi-year agreement under which Peregrine has committed to source about 50% of its sapphire purchases from Rubicon through 2011.
In addition, the company said that it has participated in Peregrine's recent financing round, purchasing $2 million in Peregrine's preferred stock.
Rubicon Technology's CEO Parvez said, "This amendment to our agreement provides some relief to our customer as they work through their inventory and re-affirms our long-term position as a key supplier to this global market. Our strong financial position provides us the flexibility to reinforce our relationship with Peregrine through this investment, validating the strength of our valued business partnership as industry leading innovators, and demonstrating our commitment and belief in the long-term growth opportunities in the global SoS RFIC market."
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