South Portland, Maine - October 20, 2003 - Fairchild Semiconductor (NYSE: FCS), a leading supplier of high performance products that optimize system power for multiple end markets, today announced it has purchased the commercial unit of the RF Components Division of the Raytheon Company.
The purchase provides Fairchild with an immediate entry into the advanced radio frequency (RF) market for applications that include Wireless LANs and handset power amplifiers. The agreement also adds gallium arsenide millimeter wave integrated circuits (GaAs MMICs) to Fairchild's extensive portfolio of high performance building block components that power multiple end market products. The business will report to Fairchild's Power Discrete Group, led by Dr. Izak Bencuya, executive vice president and general manager.
"The addition of RF power amplifiers to our current power product offering strengthens Fairchild's presence in the wireless communications market, while enabling expanded design opportunities in the areas of Wireless LANs (WLANs) and handsets," said Bencuya. "The total market size for gallium arsenide power amps is projected by Strategy Analytics to grow to between $770 million and $1.2 billion by 2006, with a compound annual growth rate of 16%, adding another dimension to Fairchild's Power Franchise. We expect this business should ramp to revenues of more than $5 million per quarter towards the latter half of 2004."
Fairchild has also acquired Raytheon's foundry partnership agreement for the supply of gallium arsenide wafers and an equity stake in WIN Semiconductor, as well as access to foundry and support services at Raytheon's Andover, Massachusetts facility. As part of the asset purchase agreement and transfer of intellectual property, more than thirty Raytheon designers, test engineers and business development employees will join Fairchild.
Russ Wagner, former Raytheon RF Components vice president of Business Development, will lead the group. "This acquisition strategically aligns the global, commercial capabilities of power components industry leader Fairchild Semiconductor with the RF Components Division," said Wagner. "We look forward to leveraging new opportunities in product development and customer support as part of Fairchild's Power Discrete Group."
Financial details of the agreement were not disclosed. Fairchild's new RF Components product line is a developer and high volume manufacturer of components for the wireless communications industry. Included in its product portfolio are GaAs MMICs, transmit and receive modules, and semiconductor devices. Applications include HBT and pHEMT power amplifiers and low noise amplifiers for handsets and WLANs. Other products include components for wireless base stations, data communications systems, millimeter wave systems, as well as transmit/receive modules for space based communication systems.
About Raytheon Company
Raytheon Company (NYSE: RTN), with 2002 sales of $16.8 billion, is an industry leader in defense, government, and commercial electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Lexington, Mass., Raytheon employs more than 76,000 people worldwide.
About Fairchild Semiconductor
Fairchild Semiconductor (NYSE: FCS) is a leading global supplier of high performance products for multiple end markets. With a focus on developing leading edge power and interface solutions to enable the electronics of today and tomorrow, Fairchild's components are used in computing, communications, consumer, industrial and automotive applications. Fairchild's 10,000 employees design, manufacture and market power, analog & mixed signal, interface, logic, and optoelectronics products from its headquarters in South Portland, Maine, USA and numerous locations around the world. Please contact us on the web at http://www.fairchildsemi.com/.