Financial Releases

RFMD(R) Receives GaN Purchase Order from Top-Tier Military Supplier

RFMD(R) Receives GaN Purchase Order from Top-Tier Military SupplierPurchase Order Is First For RFMD's Gallium Nitride (GaN) Power Amplifiers

GREENSBORO, N.C.--(BUSINESS WIRE)--Jan. 25, 2007--Strategic Highlights of RFMD's GaN:

  • Diversifies RFMD's Markets and Customers

  • Leverages RFMD's Expertise in Compound Semiconductors and Power Amplifiers

  • Expands RFMD's Total Addressable Market by $1 Billion to Include High Power Semiconductor Market

    RF Micro Devices, Inc. (NASDAQ: RFMD), a global leader in the design and manufacture of high-performance radio systems and solutions for applications that drive mobile communications, today announced it has received its first purchase order from a top-tier military supplier for a new product using RFMD's gallium nitride (GaN) high electron mobility transistor (HEMT) process technology. RFMD's GaN technology can operate over a very wide range of microwave frequencies, making it ideal for multiple band and broadband applications. The purchase order is the first received by RFMD for its GaN power amplifiers.

    The purchase order is for RFMD's RF3825 Power Integrated Circuit (PowerIC) broadband power amplifier, which is a 15-watt device capable of servicing a frequency band from 200MHz to 1.9GHz. The RF3825 greatly enhances the bandwidth of software defined radios for military communications.

    Bob Bruggeworth, president and CEO of RFMD stated, "This first purchase order for our proprietary GaN process technology represents a significant step forward in terms of customer and market diversification for RF Micro Devices. The combined revenue opportunity presented by these new markets is approximately $1 billion, giving RFMD meaningful new drivers for incremental revenue, margin and earnings. Our GaN development has been partially funded by the United States government, and today's announcement highlights just one of many military applications where GaN's technical properties excel. In addition, GaN technology is applicable to markets beyond military, including public mobile radio, WiMAX and WCDMA base stations. RFMD has an established leadership position in GaN that leverages our industry-leading compound semiconductor manufacturing assets and design engineering talent."

    Bill Pratt, chief technical officer of RFMD, added, "GaN has unique electrical properties that make it the ideal technology for high power, high performance applications. GaN has efficiency and power densities that are significantly greater than silicon LDMOS technology, which is GaN's primary competition in many markets. Additionally, GaN technology can operate over a very wide range of frequencies. Accordingly, GaN cost-effectively addresses the multiple bands required in WCDMA, WiMAX, military jammers and other markets with a single device, compared to the multiple devices required by competing process technologies, like LDMOS."

    RFMD is manufacturing its proprietary GaN technology in its high-volume manufacturing facility in Greensboro, NC, and intends to leverage its expertise in compound semiconductors as well as its leadership in power amplifiers. The Company is the world's leading manufacturer of AlGaAs HBT and GaAs pHEMT. The Company is also a leading manufacturer of InGaP HBT and recently introduced its second-generation InGaP HBT process. RFMD is also the world's leading manufacturer of cellular power amplifiers. RFMD began efforts to commercialize GaN technology in 2000 and expects to commence first shipments in the first half of calendar 2007.

    RFMD expects to announce future advancements in GaN technology in 2007, including the availability of high power amplifiers (HPAs) featuring high linearity, wide bandwidth and power outputs up to 200 watts.

    About RFMD: RF Micro Devices, Inc. (NASDAQ: RFMD) is a global leader in the design and manufacture of high-performance radio systems and solutions for applications that drive mobile communications. RFMD's power amplifiers, transmit modules, cellular transceivers and system-on-chip (SoC) solutions enable worldwide mobility, provide enhanced connectivity and support advanced functionality in current- and next-generation mobile handsets, cellular base stations, wireless local area networks (WLANs) and global positioning systems (GPS). Recognized for its diverse portfolio of state-of-the-art semiconductor technologies and vast RF systems expertise, RFMD is a preferred supplier enabling the world's leading mobile device manufacturers to deliver advanced wireless capabilities that satisfy current and future market demands.

    Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001-certified manufacturer with worldwide engineering, design, sales and service facilities. RFMD is traded on the NASDAQ Global Select Market under the symbol RFMD. For more information, please visit RFMD's web site at

    This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under the federal securities laws. RF Micro Devices' business is subject to numerous risks and uncertainties, including variability in quarterly operating results, the rate of growth and development of wireless markets, risks associated with the operation of our wafer fabrication facilities, molecular beam epitaxy facility, assembly facility and test and tape and reel facilities, our ability to attract and retain skilled personnel and develop leaders, variability in production yields, our ability to reduce costs and improve gross margins by implementing innovative technologies, our ability to bring new products to market, our ability to adjust production capacity in a timely fashion in response to changes in demand for our products, dependence on a limited number of customers, and dependence on third parties. These and other risks and uncertainties, which are described in more detail in RF Micro Devices' most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

    RF MICRO DEVICES® and RFMD® are trademarks of RFMD, LLC. All other trade names, trademarks and registered trademarks are the property of their respective owners.

    CONTACT: RF Micro Devices, Inc.

    Dean Priddy, 336-678-7063
    Jerry Neal, 336-678-7054

    SOURCE: RF Micro Devices, Inc.