Boston, MA - March 12, 2007 -The Strategy Analytics analysis of RF Micro Devices' (RFMD) GaN (Gallium Nitride) activities concludes that RFMD has developed a coherent strategy to pursue developing markets for GaN. The report, "RF Micro Devices Adds GaN Foundry Strategy to Maintain Leadership in Compound Semiconductor Industry," highlights the fact that orders from the military sector will help RFMD successfully pursue a strategy of becoming a low-cost GaN foundry which can serve a broad range of markets looking for GaN expertise.

Strategy Analytics forecasts that the market for GaN microelectronic devices will grow at a CAGR of 151 percent through to 2010, with military applications accounting for 50 percent of GaN device demand, and believes that SiC (Silicon Carbide) will remain the dominant substrate of choice for the production of GaN devices through 2010.

"RFMD has taken advantage of existing process lines and equipment while choosing to focus on three-inch production only for its GaN operations using SiC bulk substrates exclusively as the starting material," observed Asif Anwar, Director of Strategy Analytics GaAs and Compound Semiconductor Technologies. "This has allowed RFMD to minimize capital expenditure and ramp-up quickly to commercial production levels."

Stephen Entwistle, VP of the Strategic Technologies Practice, added, "The military sector offers a high-value revenue stream that can offset the cyclical nature of RFMD's other business units. Receiving orders from the military sector will further validate the maturity and reliability of RFMD's GaN process with the commercial RF infrastructure industry, while the foundry strategy will allow the company to target areas outside of the RF infrastructure market."