Filtronic ramps GaAs output to meet switch demand
Filtronic, the wireless subsystem supplier with its own GaAs fabrication facility in Newton Aycliffe, UK, says that it has ramped to round-the-clock, seven-day week wafer production for the first time.
The company has been adding staff and upgrading its facilities recently to accommodate the demand for GaAs PHEMT switches from RF Micro Devices (see related story).
"The semiconductor foundry at Newton Aycliffe has now established itself as a leading source for six-inch GaAs wafers using the PHEMT process," said Filtronic's Group CEO, John Roulston.
Filtronic began supplying wafers to RFMD in volume in April. The PHEMT switches are used in the US company's front-end modules for mobile handsets.
Power amplifier and front-end module suppliers have identified the antenna switch as a key area for expanding the GaAs content in cell-phones.
And with the mobile market expanding faster this year than had originally been expected (see related story), the prospects for Filtronic look good.
In the company's financial year that ended on May 31, its Integrated Products group, which includes the PHEMT switch business, saw revenue increase 26%.
Although still making a hefty operating loss, the division should get close to breakeven with a full year of wafer supplies to RFMD. Roulston also hopes to attract other volume customers as well as the Greensboro, NC, company.
"The volume switch market, which has taken longer than forecast to mature, is showing strength," he said.
Roulston also expects the growing 3G wideband-CDMA infrastructure market to drive growth in Filtronic's power amplifier business. Filtronic chairman David Rhodes added: "Wireless infrastructure is experiencing a substantial market recovery. For the coming year, the [Filtronic] group is well positioned for growth, due to strengthening markets in the communications sector."
Another GaAs-based product in which Filtronic expects to witness sales growth is its point-to-point microwave link transceivers for broadband networks. The transceivers are currently selling to three original equipment manufacturers in expanding volumes, while a more complex design that reduces component count is currently awaiting qualification.
"Our technology in this market is recognized to be superior and we confidently expect an increasing market share," concluded Roulston.
Overall, Filtronic posted a pre-tax profit of £5.5 million ($9.7 million) on sales of £262.9 million in fiscal 2005, compared with a loss of £0.9 million on sales of £245.1 million last year.
