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ANADIGICS Inc., a supplier of wireless and broadband communications solutions, announced that it has entered into an Investment Contract with the Kunshan New and Hi-Tech Industrial Development Zone (KSND), to jointly construct a new state-of-the art 6” gallium arsenide (GaAs) integrated circuit (IC) wafer fabrication facility (fab) for ANADIGICS Inc. in the city of Kunshan in the Jiangsu Province in China, for the purposes of expanding the ANADIGICS wafer fabrication capacity beyond its primary wafer fabrication located in Warren, NJ.
It is anticipated that ANADIGICS will invest in capital expenditures of approximately $10 to $15 M over a two-year period commencing with the fourth quarter of 2007 through an initial production phase projected in the first quarter 2009.
The total investment by ANADIGICS over the life-term of the facility, which could extend up to 50 years, is estimated at $49.88 M.
“KSND is very proud to jointly launch this investment project with ANADIGICS to support their wafer capacity expansion plans,” said vice mayor Feng-Quan Zhu of Kunshan. “Kunshan is the number one ranked city for economical competitiveness among the top 100 same level cities in China and this project will help Kunshan maintain its leading edge in economical development.”
“We’re very pleased to work with vice mayor Zhu and KSND to expand our wafer fabrication capacity in Kunshan,” said Bami Bastani, president and chief executive officer of ANADIGICS Inc.
“This project is expected to provide us with an attractive cost structure and to enable us to meet our future fab capacity needs thereby contributing to the growth of our company, as well as providing us with increased access to one of the fastest-growing markets for wireless and broadband communications.”
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