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GCS and GCTC merge to form III-V foundry giant

Two of the leading compound semiconductor foundry companies in Taiwan and the US have agreed to join forces.
Global Communication Semiconductors, Inc (GCS), a compound semiconductor wafer foundry based in Torrance, California, and Global Communication Technology Corporation (GCTC), a III-V foundry company based in Hsinchu, Taiwan, have agreed to combine their operations to form what will be the industry’s largest foundry service provider.

The new company, Global Compound Semiconductors Corporation (GCSC), will be formed once the deal closes in the first quarter of 2004. The boards and shareholders of both companies have already approved the agreement.

GCS and GCTC say that their merger combines a high-volume, low-cost 6-inch manufacturing facility in Taiwan while maintaining the Torrance facility, known for cutting-edge technologies, and will therefore meet the demands of various technology-driven, high-performance markets.

The GCS facility in Torrance is ISO 9001-2000 certified and offers foundry services for InGaP HBT, InP HBT, SAW and PHEMT processes. It also provides optoelectronic foundry services for QWIP detectors, modulators and pin diodes used in the surveillance, security and fiber-optic communication markets. GCS says that several major compound semiconductor device manufacturers, on three continents, have qualified its facility for volume manufacturing programs.

Meanwhile, GCTC operates an ISO 9001-certified facility in Hsinchu comprising a state-of-the-art, cassette-to-cassette, fully automated 6-inch wafer processing plant with a Class 1 clean room.

“The low cost of labor and overhead associated with Taiwan, and GCTC’s location in the Hsinchu Science-Based Industrial Park, known as ‘Taiwan’s Silicon Valley,’ enables foundry customers to take advantage of the mature infrastructure of related testing and packaging companies, conveniently clustered around Hsinchu, “ said Don Brooks, recently elected Chairman of the Board of GCSC.

“This is a very exciting time in compound semiconductor foundry services and I am reminded of my previous experience in Taiwan during the formation of silicon foundry industry,” continued Brooks. “Like silicon in the early 90s, we are now seeing growth in III-V foundries fueled by the expanding telecommunications and wireless markets and the growth of fabless design companies.”

Sam Lee, currently CEO of GCS, will become CEO of the newly formed GCSC. Lee said “GCSC customers will have immediate access to the broadest process portfolio, latest technologies, a worldwide customer service organization, high-volume, low-cost 6-inch manufacturing and one-stop supply chain management.”

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