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RFMD to sell GaAs manufacturing facility to Compound Photonics

The selling of the UK plant, which manufactures gallium arsenide wafers, will save the firm $20 million per year
RF Micro Devices has agreed to sell its GaAs semiconductor manufacturing facility in Newton Aycliffe, in the U.K. to Phoenix-based Compound Photonics.

The facility is Europe's largest GaAs manufacturing facility.

Terms of the transaction were not disclosed.

The transaction and product transition are expected to provide RFMD $20 million in annual cost savings, or $5 million per quarter. RFMD expects to realise the full benefit of savings beginning in the December quarter.

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