Powerwave sizes up Filtronic infrastructure unit
Filtronic, the UK-based manufacturer of GaAs chips and MMICs, is discussing the sale of its wireless infrastructure business to Powerwave Technologies.
California-based Powerwave, whose European headquarters is in Sweden, describes itself as an end-to-end supplier of solutions for wireless networks, and its product portfolio includes RF power amplifiers (PAs) for cellular base stations.
"The two companies have entered a period of exclusive negotiations for the disposal of Filtronic's filter-based transmit-receive module and power amplifier businesses," read a statement issued by the pair, adding: "There can be no certainty that these negotiations will result in any transaction being completed."
Back in 2002, Filtronic and Powerwave formed a strategic alliance to jointly develop PAs and conditioning subsystems for 3G base stations. The alliance allowed Filtronic to increase the utilization of its 6-inch fab in Newton Aycliffe, UK. But the GaAs fab remained underutilized as the 3G build-out became delayed.
More recently, Filtronic has rapidly ramped up its GaAs PHEMT activity to meet demand from RF Micro Devices (see related story) for switches in cell-phone handset transmit modules.
The UK company will be keen to continue this production ramp-up, despite RFMD's plan to move GaAs PHEMT manufacture in-house.
Powerwave and Filtronic say that they will make no further comments on the possible transaction until either an agreement is reached or discussions are terminated.
If the sale is made, Filtronic will be left with two business units "“ its compound semiconductor and defense electronics divisions.
