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Philips and TriQuint sign InGaP HBT foundry agreement

Philips Semiconductors, a division of Royal Philips Electronics, and TriQuint Semiconductor have signed an agreement paving the way for a strategic partnership that guarantees Philips Semiconductors controlled access to TriQuint s InGaP HBT 150-mm wafer processing facilities, and provides for joint development of future advanced high-performance process technologies.

This agreement provides Philips Semiconductors important access to the technology-of-choice for critical components in the power amplifier and front-end modules that it designs and manufactures for the mobile phone industry, while ensuring that TriQuint will enhance its position as a leading supplier for GaAs devices.

"Today s mobile phone manufacturers increasingly look to modules as a way of simplifying their design and production process and guaranteeing RF performance, said Thierry Laurent, Senior VP of Mobile Communications at Philips Semiconductors. "In a module you have the opportunity to mix a range of technologies in order to offer customers the very best price/performance ratio. We believe that InGaP HBT is the best technology in which to implement components such as the output stage of linear and high-efficient power amplifier modules and front-end modules.

Bruce Fournier, VP and General Manager of Foundry Services at TriQuint, commented, " Philips strong RF market presence offers us increased manufacturing volumes starting with our current, second-generation InGaP HBT process. This complements our strategy of driving for the lowest manufacturing cost structure. Additionally, their success in mobile wireless applications provides market driven insight for advanced technology development in the area of InGaP HBT and beyond. With advanced technology and world-class manufacturing efficiency, we expect this partnership to be a very competitive force in the GSM and CDMA markets.

Both partners will sell their own products in the market. Early collaboration has already resulted in a new W-CDMA PA module (BGY402, sampling now) and PA/front-end modules for GSM phones available from Philips. TriQuint is currently shipping PA products into the CDMA market and offers this InGaP HBT process, as well as other GaAs processes to the market through its open foundry.

Future development of advanced processes will focus on consumer applications for mobile communication markets. This new agreement cements a long-term relationship between the two companies since 1996, combining TriQuint s wealth of knowledge in advanced semiconductor technology with Philips Semiconductors extensive RF design and applications know-how in the production of RF modules.

"TriQuint is a particularly attractive partner for us because they are a mass volume manufacturer of GaAs semiconductors," said Laurent. "They have the ability to engineer and grow the epitaxial layers on which these advanced devices are fabricated, which not only means they can control device quality, but also puts them in a position to push forward new process developments. Furthermore, TriQuint has a renowned R&D activity in the field of III-V semiconductor materials that can be well combined with Philips R&D in RF systems."

Philips Semiconductors is one of the world s leading suppliers of RF modules to the mobile telecommunications market, employing a mix of technologies to create products with highly competitive price/performance ratios. TriQuint s InGaP HBT technology will enhance this portfolio to produce the highly linear, high efficiency output devices required in RF power amplifiers for high data-rate 2.5G and 3G systems such as EDGE and UMTS. Combined with Philips Semiconductors high-performance RF silicon transistors, and the passive component integration capabilities provided by its new PASSI process, this will allow the production of small size RF modules with a very low production spread in their RF characteristics, and extremely stable performance over time and temperature. TriQuint Semiconductor
Rob Christ
Tel. +1 503 860-3109
or
Fi.Comm (Investor relations counsel)
Heidi Flannery
Tel. +1 503 203-8808
Email: heidi.flannery@ficomm.com
E-mail: rchrist@tqs.com
Web site: http://www.triquint.com

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