- Buyers Guide
RFMD and TriQuint announced plans to merge operations creating a company that will surpass the current market leader, Skyworks, in the supply of advanced semiconductor products. RFMD and TriQuint announced a definitive merger agreement on February 24th under which the companies will combine in an all-stock transaction.
- Designed to be a merger of equals, the new company will have a new name and shared leadership team.
- Both companies have an extensive portfolio of capabilities in the areas of advanced semiconductor process technologies such as GaAs and GaN.
- The combination will collate these complementary capabilities and enable the new company to successfully pursue defense market opportunities.
In the area of Defense, TriQuint has been a leading supplier of semiconductor technologies, for example, military radar systems used on fast-jets including the F-15, F-22 and F-35. The company also holds US DoD Trusted Source accreditation. RFMD has ongoing activity in the aerospace and defense sectors with products targeting radar, communications and electronic warfare applications.
The combined infrastructure and defense unit can achieve potential revenues of around $500 million. Strategy Analytics' own estimates indicate that the new company's defense revenues will account for up to 25 percent of this unit revenue. As a GaAs and GaN semiconductor technologies supplier, we believe TriQuint holds the number one position in the defense space, and the combined TriQuint-RFMD entity will cement this position extending a lead over contemporaries in this area such as Cree, Hittite and MACOM Technologies.
The Strategy Analytics Advanced Defense Systems (ADS) service report (clients have full access), “TriQuint-RFMD Merger Solidifies Semiconductor Market Share Lead in Defense Sector,” provides analysis on this deal and outlines the market share that the new company will command, and also discusses other aspects of the deal such as facility consolidation.