Technical Insight
TriQuintSawtek merger targets modules (Headline News)
TriQuint Semiconductor is to merge with Sawtek, a manufacturer of passive RF filtering technology, in a stock deal currently worth almost $1.3 billion. The combination of TriQuint s GaAs manufacturing expertise and Sawtek s surface acoustic wave (SAW) filter technology will create "a powerhouse in the RF and GaAs component sector", according to Dale Pfau of CIBC World Markets. The merged company will focus on developing and manufacturing integrated modules with a high level of functionality and fewer discrete components. This type of product is increasingly on the radar screen of major handset manufacturers, who are asking for "plug and play" modules that let them concentrate on adding value to other portions of wireless phones such as software and data services. "Sawtek s filter technology plus our strength in active devices will enable us to sell complete RF front-end modules to new and existing customers," said Steven Sharp, chairman, president and CEO of the combined companies. Sawtek s products include SAW filters for mobile handsets and infrastructure, band-pass filters, resonators, oscillators and SAW-based subsystems for microwave and RF applications. TriQuint makes GaAs-based ICs including PAs, LNAs and up-/downconverters for wireless and fiber-optic communications, and satellite and aerospace equipment. GaAs is a potential SAW substrate SAW filters convert RF signals to the acoustic range. Unwanted signals can be removed at very low frequencies, and the filtering device can also be miniaturized. The acoustic wave must travel in the surface of a piezoelectric material. GaAs is a suitable candidate, and the material offers the potential for integrating SAW devices with electronics. While higher levels of integration have been achieved in the digital portion of the phone, the RF section is still dominated by large numbers of partially integrated components. A number of GaAs manufacturers are now looking at ways to reduce this component-count. "The front-end module of a handset has been the most challenging part of the design for cell-phone manufacturers," said Kimon Anemogiannis, the former CEO of Sawtek and head of the new subsidiary. "While the RF portion now typically contains PA modules, a front-end design will still contain up to 200 components. Integrating PAs and SAW filters reduces component inventories and the time needed to design new phones, and as the module can be pre-tested, increases the mobile-phone yield. We are targeting products for both existing phones and upcoming 3G networks." Sawtek will operate as a wholly owned subsidiary of TriQuint, making products at its facility in Orlando, Florida and selling them under its own brand name. TriQuint and Sawtek shareholders will own 64% and 36% of the new company, respectively.
