Technical Insight
Conexant cuts will not affect GaAs production capability (Headline News)
Conexant Systems has announced cost- cutting initiatives intended to bring its operations into line with revenue expectations in the current industry downturn. A major step will be the adoption of a fabless model for next-generation CMOS processes beyond the company s current 0.13 m capability. Conexant will resize its silicon fab in Newport Beach, California to match expected demand for specialty processes, including SiGe. "This strategic realignment will allow us to avoid the ever-increasing capital requirements of mainstream digital CMOS process development and manufacturing," explained Dwight Decker, chairman and CEO. "Instead, we can increase the allocation of our resources toward the design and marketing of innovative communications semiconductor products." The good news for GaAs is that the company will continue to operate its wafer manufacturing facility in Newbury Park, California, and invest in new technology. The fab manufactures GaAs HBTs for power amplifiers, RF subsystems and complete systems for CDMA, GSM and TDMA digital cellular handsets. Last year Conexant announced a plan to split into two separate communications semiconductor companies. The GaAs fab is part of Conexant s personal networking business, which includes products for wireless communications. The other business, Internet infrastructure, is currently operating under the name Mindspeed Technologies. Mindspeed sells GaAs-based fiber-optic components such as laser drivers, clock and data recovery ICs and crosspoint switches, although it does not operate its own GaAs fab. While the cost reductions were initiated to improve near-term profitability, longer-term prospects seem good. "We are confident in the long-term growth prospects of the communications markets we address with our personal networking and Internet infrastructure businesses," said Decker. "We remain committed to completing the separation of Conexant into two independent, publicly traded companies as soon as business and market conditions are clearly on a recovery path."
