IBM Sells 3G Chipsets Division

TriQuint Semiconductor says that it has taken over the design, development, marketing and sales of certain standard and custom IBM semiconductor products used in wireless phones and other communications applications. IBM will continue to manufacture the components for TriQuint. The IBM products being transferred to TriQuint include voltage-controlled oscillators (VCOs), receivers and wideband CDMA chipsets, all based on silicon germanium process technology.

TriQuint will assume related product assets and be granted assignments and licenses to associated intellectual property. TriQuint will make an initial payment of approximately US$22 million to IBM for the related assets, with subsequent adjustments contingent upon business volumes. TriQuint expects that this business will add approximately US$12 million to US$15 million in revenue over the next 12 months.

While no longer selling these products, IBM will continue to participate in the wireless semiconductor marketplace through its foundry manufacturing and custom chip activities.

Steven J. Sharp, Chairman, President and CEO of TriQuint, stated, "This acquisition provides TriQuint with another key piece of the RF front end which will further help us in developing fully integrated modules for wireless phones. In addition, the relationship with IBM gives us access to a leading foundry for devices based on silicon germanium. We believe this is the beginning of a highly successful relationship with an outstanding partner."'"

Posted to the site on 19th June 2002