Technical Insight
Filtronic announces strategic alliances (GaAs News)
The problems at Filtronic Compound Semiconductor (FCS) look closer to being resolved with the announcement of alliances with RF and microwave components manufacturer M/A-COM, and BAE Systems, a UK-based defense OEM. The separate agreements will see FCS supply large volumes of GaAs devices to M/A-COM for mobile handsets, WLANs and other commercial markets. The agreement with BAE Systems is for the development and supply of devices for defense applications. Filtronic had stated earlier this year that it was seeking partnerships to help stem losses at its GaAs MMIC production facility in Newton Aycliffe, UK (see Compound Semiconductor July 2001, p25). The shows Filtronic s recently announced financial results, including a loss of $20.9 million from FCS before deductions. "The combined effect of these agreements will be to improve the cash flow and profitability of the Newton Aycliffe operation significantly," said Filtronic s executive chairman David Rhodes. "The site is expected to move into profitability in the financial year beginning June 1, 2002." "GaAs MMIC technology is a key element of many of our existing and future products throughout the company," added Christopher Snowden, CEO of FCS. "In addition to the needs of M/A-COM and BAE Systems, we will continue to fulfill Filtronic s increasing internal requirements. We remain confident that the high yields achieved at Newton Aycliffe, together with high-performance and highly competitive design processes, will address market conditions." Although they have established separate agreements with Filtronic, M/A-COM and BAE Systems are linked by an agreement involving the former Sanders GaAs fab in Nashua, NH. In July 2000, it was announced that M/A-COM would share the new 6 inch wafer processing facility being built by Sanders; the following month, Sanders was acquired by BAE Systems North America. As well as its two GaAs fabs in Lowell, MA and Colorado Springs, CO, M/A-COM owns the former ITT GaAsTek facility in Roanoke, VA, although sources suggest that the Colorado facility is now closed.
