Microsemi Announces Internal Fab Expansion for Power Management and Gallium Arsenide RF/Microwave and Optoelectronic Products

Source: Microsemi

- Expansion will support an estimated $75 million-$100 million;

- Fab expansion will include extensive III-V processes for Gallium Arsenide power amplifiers and optoelectronic circuits

Santa Ana, CA. Microsemi Corp. (Nasdaq:MSCC), a leading supplier of power management and radio frequency integrated circuits for mobile connectivity and Internet infrastructure applications, today announced that it has commenced a major expansion of its Linfinity Microelectronics IC fabrication facility in Garden Grove, Calif. The new expanded fab is scheduled to be complete by August 2001 and will provide the company with capacity to produce fabricated wafers in quantities to support an estimated $75 million to $100 million of revenues in Power Management, RF Integrated Circuits and advanced optoelectronic circuits in GaAs, InGaP HBT, InGaAs and other compound semiconductor materials.

"Intellectual property in the area of process technology is a key ingredient to Microsemi s success as we roll out products that rely heavily on the convergence of smart Power Management circuits with the most advanced RF Power Amplifier and Optoelectronic circuits," stated Jim Peterson, vice president of Microsemi s Power Management business. "We believe that power management and RF circuits must coexist in next-generation handheld Internet appliances."

Microsemi s power management division is currently running in excess of 2,800 wafers per week. In addition, this fab will provide the necessary capacity to support the rapid growth in its silicon power management business as well as the future growth potential in gallium arsenide RF and optoelectronic devices.

Today, the company is the recognized leader in supplying the most efficient back light driver solutions for color PDAs -- one of the predecessors to next-generation 3G multimedia mobile appliances.

In March 2000, Microsemi acquired the HBT Products and Process group from Infinesse Corp. The acquired process knowledge is key to meeting the company s goals for establishing an internal high-volume cost-effective gallium arsenide fab to support its RF Integrated Circuit roadmap, which consists of Gainblocks, Low Noise Amplifiers and Power Amplifiers for CDMA, W-CDMA, GSM and ISM Bands for wireless LAN applications.

"For approximately $5 million, Microsemi believes it will have one of the most efficient throughput, shortest cycle time, lowest defect density gallium arsenide fabs," stated Manuel Lynch, director of worldwide marketing and new business development. "Our proposed high- volume 4-inch gallium arsenide fab will be able to compete favorably with 6-inch fabs that are costing competitors over $100 million to put in place."

About Microsemi

Microsemi is a leading designer, manufacturer and marketer of analog, mixed-signal and discrete semiconductors. The company s semiconductors manage and regulate power, protect against transient voltage spikes and transmit, receive and amplify signals.

Microsemi products include individual components as well as complete circuit solutions that enhance customer designs by providing battery optimization, reducing size or protecting circuits. Markets the company serves include mobile connectivity, computer/peripherals, telecommunications, medical, industrial/commercial, space/satellite and military.

More information may be obtained by contacting the company directly or by visiting its Web site at http://www.microsemi.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth in this news release that are not entirely historical and factual in nature are forward-looking statements. For instance, all statements of belief and expectations are forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Potential risks and uncertainties include but are not limited to such factors as the difficulties regarding the making of estimates and projections, hiring and retention of qualified technical personnel in a competitive labor market, rapidly changing technology and product obsolescence, the ability to realize cost savings or productivity gains, the ability to improve capacity utilization, potential cost increases, the strength and competitive pricing environment of the marketplace, demand for and acceptance of the company s products, the results of planned development, marketing and promotional campaigns, changes in demand for products, difficulties of foreseeing future demand, effects of limited visibility of future sales, potential nonrealization of expected orders or nonrealization of backlog, business and economic conditions or adverse changes in current industry conditions, customer order preferences, and fluctuations in market prices of the company s stock, difficulties in implementing company strategies, environmental matters, litigation, difficulties protecting proprietary rights, and inventory obsolescence. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties and risks identified in the company s most recent Form 10-K and subsequent Forms 10-Q, and the final prospectus on Form S-3 filed on June 1, 2000, by the company with the Securities and Exchange Commission. The company does not undertake to supplement or correct any information in this release that is or becomes incorrect.

Contact: David R. Sonksen, Tel: 714 979-8220 or Coffin Communications, Sherman Oaks, CA. Sean Collins or William F. Coffin Tel: 818/789-0100