New entity will be the number one supplier to the defense
sector
Boston, MA - March 17, 2014 - RFMD and TriQuint announced plans to merge
operations creating a company that will surpass the current market
leader, Skyworks, in the supply of advanced semiconductor products. The
Strategy Analytics Advanced Defense Systems (ADS)
service report, “TriQuint-RFMD Merger Solidifies Semiconductor Market
Share Lead in Defense Sector,” provides analysis on this deal and
outlines the market share that the new company will command.
Click here for the report:
https://www.strategyanalytics.com/default.aspx?mod=reportabstractviewer&a0=9466
On February 24th, RFMD and TriQuint announced a definitive merger
agreement under which the companies will combine in an all-stock
transaction.
·
Designed to be a merger of equals, the new company ("NewCo") will have a new name and shared leadership team.
·
Both companies have an extensive portfolio of
capabilities in the areas of advanced semiconductor process technologies
such as gallium arsenide (GaAs) and gallium nitride (GaN).
·
The combination will collate these complementary
capabilities and enable the new company to successfully pursue defense
market opportunities.
“In the area of Defense, TriQuint has been a
leading supplier of semiconductor technologies, for example, military
radar systems used on fast-jets including the F-15, F-22 and F-35. The
company also holds US DoD Trusted Source accreditation,”
noted Eric Higham, North American Director for ADS. “RFMD has
ongoing activity in the aerospace and defense sectors with products
targeting radar, communications and electronic warfare applications.”
“The combined
infrastructure and defense unit can achieve potential revenues of around
$500 million. Strategy Analytics' own estimates indicate that the new
company's defense revenues will account for up to 25 percent
of this unit revenue,” noted Asif Anwar, Director of the ADS service.
“As a GaAs and GaN semiconductor technologies supplier, we believe
TriQuint holds the number one position in the defense space, and the
combined TriQuint-RFMD entity will cement this
position extending a lead over contemporaries in this area such as
Cree, Hittite and MACOM Technologies.”