Markets & Business

Intel outlines 90nm SiGe process plans

Intel plans to add communica- germanium and our most Intel’s 90nm communications tions capabilities to its 90- advanced CMOS manufacturing manufacturing process shares nanometer manufacturing process will bring the benefits the basic foundation of the process by using -germa- of Moore’s Law to communica- company’s 90nm logic process, nium transistors and mixed-sig- tions silicon and help keep including high-performance, nal circuitry, aimed at bringing Intel at least a generation low-power digital CMOS transis- about a new wave of faster, ahead of the competition.” tors using strained silicon tech- highly-integrated, cheaper nology, seven copper intercon- The new manufacturing communications chips. Intel nect layers with a new low-k process combines Intel’s 90-nm says the move could lead to dielectric and one-square- logic process with advance- single-chip, hand-held devices micron SRAM memory cells. In ments in mixed-signal technol- that offer -phone, - addition to silicon-germanium ogy. Intel will integrate some data-network and the evolving heterojunction bipolar transis- critical analogue components personal-area-network tors, new features of the 90.nm directly onto silicon and services, as well as smaller, process for communications change how some functions lower-cost network-infrastruc- include high-voltage RF ana- are implemented so they can ture equipment. logue CMOS transistors, preci- be integrated into the logic sion capacitors and resistors for “This integration of computing portion of the chip.The chip analogue circuits, and high-Q and communications technolo- giant says this will mean com- inductors and varactors. gies will enable us to create munications chips will now microchips that are twice as Intel will manufacture all of its benefit from Moore’s Law in fast, contain 2.5 times more 90-nm communications chips performance, power, integra- transistors and are substantially on 300~millimeter wafers, tion and cost terms. less expensive than anything enabling high-volume produc- that exists today,” said Sean Silicon-germanium and CMOS tion and a substantial reduction Maloney, Intel executive vice transistor circuitry on Intel’s 90- in manufacturing costsThe first president and general manager nm process could cut the num- communications chips based of the Intel Communications ber of chips and processes used on the new 90-nm process are Group. “The combination to create an optical subsystem scheduled for introduction of mixed-signal, silicon in half, adds the company. next year.

TriQuint revises loss forecast downwards

TriQuint has and development associated $12 million may be required forecasted revenues for the with two recent acquisitions. which would result in an addi- quarter ending September 30, This is down from an earlier tional loss of approximately 2002, in the range of $69 mil- estimate of $10 million, a $0.06 per share for the quar- lion to $74 million and operat- write off of approximately ter.The company expects to ing income before special $5 million for two equity continue to have positive cash charges near break even for investments. flow from operations for the the quarter.The company also third quarter.TriQuint also pro- re-iterated its guidance for the The company expects its third vided a preliminary estimate of quarter for a gain of $3.7 mil- quarter results to be a loss of revenue for the fourth quarter lion on the retirement of a por- $0.05 to $0.06 per share, com- of 2002 stating that it expects tion of its debt; a charge of pared to a previous estimate of revenue to be flat to up slight- approximately $1 million for a loss of $0.07 per share and ly over the third quarter of severance related costs; and a also stated that it is reviewing 2002 and that earnings per charge of approximately $9 certain fixed assets for impair- share are expected to be in the million for the write off of ment and that a non-cash range of breakeven to positive acquired in process research impairment charge of up to $0.01. Markets & Business

Alcatel warns of 50% drop in 43 revenues

Alcatel Optronics says that manufacturing facility focusing market conditions improve but In the U.S., the company continuing recession and per- on active components, our by that time all rightsizing intends to enter into a non- sistent inventories at the cus- Livingston (Scotland) plant on actions should be completed, binding agreement with an tomers’ level could result in passives, and both units com- our financial profile should be industrial partner, whereby revenue for the third quarter bining forces in a joint effort restored and we should be in a this partner would acquire declining up to 50% sequen- towards hybrids. From 1,550 better position to benefit from the majority of the Alcatel tially.The drop should have a staff today, we expect to reach a new market up-cycle.” Optronics Plano (Texas) limited impact on profits, says approximately 1,000 before business and assets.The The company’s plan will mean the company, due to the year-end, and ultimately below deal is expected to close that, in France, headcount at the effects of previously imple- 500 end-2003 .This decrease in before the end of 2002. In Nozay site will drop to approxi- mented cost saving measures. fixed costs should results in an Canada, all Fiber Bragg mately 300 employees, through estimated Euro 40 Million Grating (FBG) activities will “Given a further deterioration a combination of different meas- quarterly sales break-even be discontinued and the of the markets, we feel that it ures including, but not limited point by end 2003. R&D function transferred is mandatory to intensify to, industrial outsourcing, pool- to Livingston where restructuring actions and “Despite these measures, ing of resources with partners, manufacturing has already launch a Strategic Refocus Alcatel Optronics has the spin-offs and individual rede- been relocated. Plan” said Jean-Christophe technology, skill-set and geo- ployments.Alcatel plans talks Giroux, CEO. “We want to graphical presence that will with unions and employees’ The company warns that its reach as soon as possible a make it an undisputed industry representatives to look at possi- operations ‘will continue to be streamlined business model, leader for tomorrow’s market. ble solutions and their practical sized to reflect ongoing busi- with our Nozay (France) It may be a while before implementation. ness conditions’ - - Intel debuts 3D transistors

Intel researchers have devel- Gerald Marcyk, director of the Intel’s tri-gate transistor employs approach for extending the oped a three-dimensional tri- Components Research Lab at a 3D structure, like a raised, flat TeraHertz transistor architecture gate transistor design promising Intel. “The tri-gate transistor plateau with vertical sides, Intel announced in December higher performance with design will allow Intel to build which allows signals to be sent 2001.The t&gate is built on an greater power efficiency than ultra-small transistors that along the top of the transistor ultra-thin layer of fully depleted traditional planar transistors. achieve high performance with and along both vertical sidewalls silicon for reduced current leak- The development offers a way low power and continue driv- as welLThis effectively triples age.This allows the transistor to for the ing the pace of Moore’s Law.” the area available for electrical turn on and off faster, while dra- to maintain the pace of Moore’s signals to travel. Besides operat- matically reducing power con- Law beyond this decade, says Traditional planar transistors, in ing more efficiently at nanome- sumption. It also incorporates a the chip giant. use since the 196Os, struggle as ter-sized geometries, the tri-gate raised source and drain struc- transistors shrink to less than transistor runs faster, delivering ture for low resistance, which “Our research shows that 30 nanometers, the increase in 20 percent more drive current allows the transistor to be driv- below 30 nanometers, the basic current leakage means that than a planar design of compara- en with less powetThe design physics of the flat, single-gate transistors require increasingly ble gate size. is also compatible with the planar transistor leaks too more power to function cor- future introduction of a high K much power to meet our future rectly, which generates unac- The company says the tri-gate gate dielectric for even lower performance goals,” said Dr. ceptable levels of heat. structure is a promising leakage.

Nakamura loses Nichia patent claim

Shuji Nakamura has lost his Last August, Nakamura claimed undecided reward for the paid Y20,OOO and had failed to claim against Nichia, in which ownership of the patent involv- patent. raise any objections in the ten he maintained he should be ing MOCVD technology and Under Japanese law, an employ- years following the patent recognised as the owner of a demanded Y2 billion compensa- ee retains the rights to any being granted. patent filed in 1991 while he tion.Although the court dis- patents filed, but the court Nakamura’s legal team said an was employed by the Japanese missed the claim, it ruled that threw out the claim because appeal against the ruling would LED maker. he was entitled to an as-yet Nakamura had already been be made. Markets & Business

Bede wins fourth Queen’s Award...

its workforce. Bede has always been a truly innovative and . . . and inks global company, and interna- tional trade and technology new Japan are two of the most important factors in the business. agreement

“The company sells primarily Bede has also appointed into a highly competitive Tokyo Electron Ltd (TEL), as industry - where technology changes at a sole distributor for Bede products in Japan.TEL will fast pace and suppliers to the market, sell, install and main- industry need to be one step ahead of their competitors. tain the entire range of Bede products for semiconductor “This environment is a chal- applications and for other Bede has received its fourth lenge, but Bede has risen to Queen’s Award at a presenta- markets such as life sciences this challenge to become a mar- and pharmaceuticals starting tion ceremony at the company’s ket leader.The company has lis- headquarters in Durham last this month. tened to its customers, devel- month.The company was hon- oped solutions with ifs technol- The Bede product range will oured with the Queen’s Award be presented ogy and saved them money, for Enterprise: International by TEL at the Japan Semicon time and effort,” he added Trade 2002 earlier this year. show (Tokyo, 4th - 6th This is the fourth Queen’s December 2002) and a Bede The Lord Lieutenant of the Award that the company has County of Durham presented Dl X-ray tool for customer won in recent years. Bede the Grant OfAppointment cer- demonstrations and joint won the Queen’s Award for tificate and trophy to Dr Neil applications development Export in 1991 and the will be installed at TEL in Loxley, Bede’s Chief Executive, Queen’s Award for on the Queen’s behalf. December 2002.The agree- Technological Achievement in ment is expected to lead Dr Neil Loxley said, “I am 1991 and 1996.The company to sales of around $20m delighted to be receiving this will hold the new award for within the next three award on behalf of Bede and five years. years.

The Lord Lieutenant of the County of Durham presenting Bede’s fourth Dr Loxley said: “The comple- Queen3 Award trophy to Dr Neil Loxley; Bede’s Chief Executive. tion of this agreement after detailed evaluation and negoti- ation between TEL and Bede is a major breakthrough for Bede, representing the best possible route to market for our products in Japan.

“We are particularly pleased that a company with the unparalleled market access, reputation and influence of TEL has chosen to work with Bede. “The decision by TEL to distribute Bede products is a vindication of the use of Bede’s advanced X-ray technol- ogy products for leading-edge applications in the semicon- ductor and other markets”, he added. Markets & Business

Leonberger joins RFMD’ board New

RF Micro Devices has named company’s strategic technology extensive and distinguished Frederick J. Leonberger a mem- directions and the coordination record of achievements in the Shanghai ber of its board of directors. Dr. of its technology and product communications industry We anticipate Fred’s technological Leonberger was nominated and development activities. Dr. office for background will serve to bene- confirmed by the board as a Leonberger has served as presi- fit the ongoing development new director at a board meet- dent of the IEEE Lasers and of our technology roadmap ing last month, effective imme- Electra-Optics Society, as Aixtron and we look forward to his diately. Dr. Leonberger is senior Associate Editor of the Journal contributions to the board of vice president and chief tech- of Quantum Electronics and of directors.” Aixtron has opened a new nology officer of JDS Uniphase Optics Letters, and as Chairman office in Shanghai, China, offer- Corporation, a leading supplier of several IEEE/OSA confer- Leonberger said, “RF Micro ing service, local spare parts of optical components and ences. He holds over 20 patents Devices is a leading communi- supply and process support modules to the communica- and has been awarded the IEEE cations semiconductor cornpa- for the entire Aixtron Group tions industry. He is responsible Quantum Electronics Award, ny with impressive strengths in product range including for technology strategy and is the IEEE LEOS Millennium design, development and manu- Aixtron AG,Thomas Swan very involved in mergers and Medal and the UTC George facturing, and I am delighted to Scientific Equipment Ltd. and acquisitions, research and Meade Medal. join its board. I look forward to Epigress AB CVD systems.A development and the intellectu- working with the management team of service engineers will Dave Norbury, chief executive team and other board members operate directly from the new al property activities of JDS officer of RF Micro Devices, to help RFMD continue to max- Ilniphase. Previously, he was said, “We are pleased to wel- office, headed by Dr.TZ. senior vice president and chief come Fred Leonberger to our imize its shareholder value and Chung. technology officer of Uniphase board of directors. Fred is a diversify into new high-growth Steve Perry,Aixtron Executive and was responsible for the proven technologist with an end markets.” Vice President and COO, said: “The establishment of this new liaison branch office in China Ericsson wins Iran, Sudan network deals reflects Alxtron’s goal to con- tinually expand its ‘Network Ericsson Enterprise has been “Ericsson has great experience well as installation and profes- of AlXcellence’; we can chosen as a supplier of equip- in this field, working as long sional services. Mobitel is the now offer our Chinese cus- ment and solutions to Shiraz term partner in turn-key proj- only operator in Sudan to offer tomers a fast, reliable and Electronic Industries (SEI) in ,ects like this where technology GSM services. high quality local service Iran. Ericsson will provide sys- transfer, product support, train- for all products of Aixtron, Ericsson will install over 100 tems for voice and data to ing and servicing are essential Thomas Swan and Epigress, BTS sites with an overall capaci- enterprises in Iran worth $18.3 components,” adds Halvorsen. an essential prerequisite for ty of over 400,000 subscribers. Million.The deal involves the “Our track record, combined coping with the increasing With only 170,000 users in delivery of equipment for over with Ericsson’s leading global demands of the strongly grow- Sudan at present.and a popula- 100.000 users of voice and data position in mobile communica- ing MOCVD market in China. tion exceeding 33 million We very much look forward to services over an ATM backbone. tions, is what gave us the com- inhabitants, there is a substan- providing the same outstand- Solutions are built on a platform petitive advantage in winning tial potential for new mobile ing service in China, that our consisting of Ericsson products this contract.” users in the country. lmplemen- such as the MD1 10 communica- customers worldwide highly Ericsson has also signed a turn- tation will begin immediately, tions platform and the AXD data regard.” and should be completed by networking range. key contract for expansion of a The Aixtron Group has GSM network in Sudan with the end of the year, already sold a number of “We are very pleased to have Mobitcl, a company jointly own- been chosen by SEI,” says Mats “We are delighted to have MOCVD systems in mainland ed by Sudatel and MS1 Cellular Halvorsen,Vice President of Ericsson as our partner in China, Customers include Holdings of the Netherlands. Ericsson Enterprise. “It is living Sudan. With the substantial the Chinese Academy of Sudatel is the incumbent fmed proof that SE1 appreciates and demand for mobile services in Science, Chongqing network operator with over trusts the strength, security and Sudan and the imminent arrival Optoelectronics Research 700,000 subscribers whilst MS1 flexibility of our converged of competition, Mobitel is very Institute (COERI), Hebei has invested in 13 GSM net- solutions for enterprises.” keen to work with a supplier Semiconductor Research works in 13 African countries. Ericsson Enterprise is working who has demonstrated a track Institute (HSRI), Hi-Tech together with its partner The initial contract, as a part of record of good service, prices Optoelectronics Co. Ltd., Hong Communication Performer a strategic framework agree- and leading edge equipment,” Kong University of Science Group (CPG) in Turkey, for pro- ment, includes radio (BSS) and said Dr.Abdel Aziz Osman, and Technology and Huineng viding training and servicing. switching (SS) equipment as Chairman of the Mobitel Board. Power Electronics. Markets & Business

Cypress, Infineon, Micron team to develop CellularRAM

A new type of Low Power their own design and process Wireless Products. “With its sub- operate at up to 108 MHz PSRAM designed for 2.5G and technology. stantial presence in the mobile clock rates; run at an initial wireless handsets is being handset memory market, latency of 60 ns; and can “As a contributor in the devel- developed by Cypress, Infineon Cypress will further strengthen achieve up to 216 MB/s (1.6 opment of the CellularRAM and Micron to meet the grow- the co-development and mar- Gb/s) of peak bandwidth. specifications, Cypress is ing memory and bandwidth keting efforts of CellularRAM.‘~ Cehkd&kM memory also fea- pleased to formally join demands of future handset tures a burst read and write and “We are excited about the addi- designs. In addition to offering mode that emulates an Intel@ .. in this co- tion of Cypress to the co-devel- a lower cost/bit ratio than cur- W18 and Micron Flash Burst development effort,” said Mario opment agreement,” said Dr. rent solutions, this new type of compatible protocol with vari- Martinez, strategic director for Pseudo SRAM features SRAM- Ernst Strasser, director of mar- ous I/O voltage options. Cypress’s Memory Products pin compatibility, external keting for Infineon’s Graphics Itineon and Micron plan to refresh-free operation and a Division. “CellularRAM memory and Specialty DRAM. “In addi- make several CellularRAM low-power design. CellularRAM provides wireless handset tion to creating a third source devices available in the next 12 memory is a drop-in replace- designers all the benefits of a for the industry, we are con% months.The first is a 32 Mb ment for asynchronous low- DRAM cell including a more dent this cooperation will bene- device, organized as 2M x I6 power SRAM used currently in cost-effective, higher-density fit all next-generation wireless scheduled for initial availability cell phone designs. and low-power consumption customers seeking an outstand- in late 2002.A I6 Mb and 64 solution using a standard ing memory solution for 2.5 The purpose of the co-develop- Mb device, organized as 1M x SRAM interface.” and 3G handsets.” ment effort is to provide cus- 16 and 4M x 16, respectively tomers with pin- and function- “CellularRAM memory provides Based on a one-transistor will follow shortly. The compa- compatible products from mul- designers a cost-effective solu- DRAM cell, CellularRAM mem- nies are working jointly on the tiple sources, based on a jointly tion for designing high-perform- ory offers advantages over tra- definition of the next genera- developed specification for ance memory for next-genera- ditional SRAM and a six-transis- tion of the CellularRAM prod- CellularRAM memory, although tion wireless applications,” said tor (6T) SRAM cell, using the uct family, a 128 Mb device, tar- each company will design and Mario Fazio, director of strate- technology and reduced size geted for sampling in the sec- manufacture the products using gic marketing for Micron’s of a DRAM cell.These products ond half of 2003.

Ericsson signs Mobilcom MoU, reacts to downgrading

Ericsson and France Telecom Telecom to banks with credits decision primarily reflects The incremental financial have signed an MoU to Mobilcom. their view of the wireless impact of Moody’s decision (Memorandum of infrastructure market. We reit- amounts to an increase in “Ericsson will continue to Iinderstanding) covering the erate our view that in the financing costs of approxi- actively monitor its exposure restructuring of Ericsson’s short-term the market is mately SEK 55 million under this transaction in a dili- financing to Mobilcom. Under indeed cbaracterised by great annually. gent manner, including making the agreement, Ericsson and uncertainty and the third adequate risk provisions,” said “Regarding Moody’s comment France Telecom will convert quarter development so far Sten Fornell, Executive Vice on additional cash calls, SEK Ericsson’s outstanding cus- does not indicate any President & Chief Financial 2.3 b. of customer credits have tomer financing to Mobilcom improvement, but we remain Officer of Ericsson. been put back on our balance into a convertible loan issued firmly optimistic in the longer sheet and we are discussing by France Telecom to Ericsson Ericsson has responded to perspective. the otherput arrangements.As in the amount of approximately Moody’s downgrading of its “Considering the success of a consequence of the LEAP EUR 444 million. long-term credit rating from our rights offering, Moody’s and Quam announcements Bdl to Ba2, removing the Credit The effect of the agreement decision was unexpected. We our credit commitments will Watch status, but leaving the will be that Ericsson no longer believe we have suflicient Ziq- be reduced. We believe outlook negative.The company has exposure to Mobilcorn; uidity to carry us through this Ericsson has sufficient liquidi- said: future exposure will be to uncertain market situation. ty and we do not anticipate France Telecom. The structure “Our short-term rating was Our cost cutting actions the need for a capital injection of the convertible loan is the not under review and is not remain on track for returning in the near term to fund their same as that offered by France afJected by this action. Moody’s to profit sometime next year operations.” Markets & Business

Nokia ships EDGE worldwide

Nokia is now shipping volume and part of the 3G technology of building new capacity for launches, Nokia has started deliveries of EDGE hardware defined by the ITU and 3GPP the increasing usage of attrac- deliveries of GSM/EDGE across all major GSM bands and which are aimed at enabling a tive data services. EDGE also capable carrier units to in all continents, the company smooth evolution to offers full backwards compati- Nokia LJltraSite EDGE Base claiming to be the first vendor GSM/GPRS/EDGE/WCDMA bility to GSM/GPRS services. Stations on all GSM frequency to ship EDGE network hard- multiradio networks.Together, “EDGE enjoys the proven bene- bands (800,900,1800 and ware in volume. EDGE and WCDMA should fits of GSM technology, such as 1900MHz). speed the adoption of 3G multi- openness, cost-efficiency The first shipments took place media services for all mobile “EDGE is a natural next step through economies of scale and in the Americas at the end of subscribers enhancement for all GSM/GPRS 200 1. During the first half 2002 true global footprint and roam- networks in boosting the per- With EDGE, operators can pro- ing, and will become an integral deliveries began to networks in formance of the existing data vide consumers with a three- part of GSM/GPRS and WCDMA Europe and Asia, with full pro- services as well as enabling a fold increase in data-rates and terminals,” said Jussi Wire,Vice duction capability achieved by rich range of multimedia servic- capacity through their the Summer. President Marketing &Sales, GSM/GPRS networks, boosting es, which is why mobile opera- Nokia Networks. EDGE (enhanced data rates for the revenues generated by tors across the world are global evolution) features are operators from the GSM fre- To support operators prepar- increasingly opting for EDGE,” part of the GSM specifications quencies and reducing the cost ing their networks for EDGE added W&e.

Plextek, GCS sign GE snaps UP Advanced collaborative deal Ceramics General Electric subsidiary and Chief Executive Officer of Compound semiconductor coupled with Plextek’s design GE Specialty Materials has GE Specialty Materials. wafer foundry GCS has consultancy expertise, ‘fabless’ bought Advanced Ceramics “Advanced Ceramics is high signed a deal with communica- companies can move quickly Corporation and Advanced technology serving the global tions technology design con- and cost effectively to address Ceramics International materials industry. We are sultancy Plextek, a company the expanding wireless and Corporation (ACC and excited about the synergies with substantial experience high-speed telecommunica- ACIC).Advanced Ceramics is with GE Quartz, in compound semiconductor tions markets,” he added. involved in high temperature Superabrasives and Silicones IC design. ceramics, while Advanced businesses in both improving “We’re very pleased to be Ceramics produces boron our growth through new prod- Plextek will use GCS as a III-V working with GCS.Their InGaP nitride powders, shapes, and ucts and in reducing our man- compound semiconductor and InP HBT processes are coatings as well as other spe- ufacturing materials cost.” foundry partner and GCS will state-of-the-art and can offer cialty ceramics used in a have access to Plextek as a Dan Moore, Chairman of significant advantages for the breadth of industries, ranging United Kingdom design Advanced Ceramics added, ” GE realization of power amplifiers, from semiconductors to resource. Quartz and GE Specialty low phase noise oscillators and cosmetics. Materials are growing, exciting “We continue to see the disin- broadband DC coupled ampli- This transaction, which is sub- businesses. We look forward to tegration of the traditional fiers,” said Liam Devlin, ject to regulatory approval, is becoming part of the GE Plextek’s Director of RF Integrated Device expected to close in the next team. “ Integration. Manufacturer which has two months. Advanced given birth to businesses According to Maryrose T. GCS and Plextek will offer Ceramics, based in Cleveland, Sylvester, President of GE that specialise and reduce Ohio will become part of the complementary services to Quartz,“‘Advanced Ceramics the total costs to bring ICs to GE Quartz business within customers requiring assistance improves our portfolio to serve market” said Owen Wu, GE Specialty Materials.Terms in either design and/or the semi-conductor industry Founder and Chief Strategy of the transaction were not fabrication of III-V compound and expands the breadth of Officer of GCS. disclosed. semiconductor ICs.The two products we have to offer.The “With the availability of state- companies will have their web- “Advanced Ceramics makes combination of GE Quartz and of-the-art III-V compound sites linked and assist cus- sense for our growing, special- Advanced Ceramics means semiconductor foundry tomers in engaging the other’s ty materials business,” said great things for our combined services provided by GCS, services. William Woodburn, President customer base.” Markets & Business

RFMD China plant Nokia: ‘mobile starts shipping phone sales strengthening’

Nokia has provided a sched- As a result of the GSM market uled mid-quarter update to the decline, Nokia Networks third company’s business outlook quarter sales are expected to for the third quarter 2002. decline by approximately Based on developments during 5% compared with the July and August, third-quarter third quarter in 2001, with sales for the Nokia group are Nokia Networks pro forma expected to be in the range of operating margins now esti- EUR 7.1 to EUR 7.4 billion. mated to be about 5% for the Third-quarter pro forma third quarter. EPS is estimated to be at the Milestones RF Micro Devices has begun productfon shipments from its new test and upper end of the earlier indi- The sales estimate for Nokia tape and reel facility in Beijing, China cated range of EUR 0.15 and Networks includes an expect- EUR 0.17. ed recognition of revenue RF Micro Devices has started our Beijing test and tape and Sales of Nokia Mobile Phones related to WCDMA network production shipments from its reel facility greatly increases in the third quarter are expect- equipment of about EUR 500 new test and tape and reel plant the value we provide our exist- ed to grow by 4%-9%, com- million under the provision in Beijing, China.The facility ing customers and enables pared with the third quarter of that set technology milestones provides local support to Chin- RFMD to target additional cus- 2001. Nokia sees mobile are met by the end of the ese handset manufacturers, orig- tomers with operations in phone profitability in line quarter. inal design manufacturers and China. Handset manufacturers with, if not exceeding, earlier international handset manufac- are increasingly requiring their The company has also finally expectations. The company turers with operations in China. strategic suppliers continue to reached agreement with says pro forma operating mar- The Company says its local pres- add value through reductions France Telecom the principle gins are expected to be at or ence will help accelerate time- in cycle times and the strength- terms for the conversion of above 20%, reflecting good temarket of key components, ening of supply chains.The outstanding customer financ- take up of new products, reduce manufacturing and ship direct, local support of our ing related to MobilCorn. including the 7650 imaging ping costs and contribute to Beijing facility enables us to phone. As Nokia has previously indi- improved inventory manage- strengthen our customers’ mar- cated, the conversion of exist- ment. In addition, the Company ket positions and contribute to Strong demand ing loans into a new facility anticipates its strategic location their success. Shipments to Backed by a strong overall will necessitate a write-off in Beijing will help generate multiple customers began demand pickup especially in totalling around EUR 300 mil- additional growth in China and today and will contribute to Europe during the first two lion, significantly affecting the other Asian countries and there- our revenue growth this quar- months of the quarter, the company’s third-quarter carn- by extend its power amplifier ter. We expect a considerable company is increasingly ings. market share leadership. production ramp as the year confident with its full-year progresses and other programs RFMD says it has a growing overall market volume estimate As part of the France Telecom commence operation.” presence in the Asia-Pacific of 400 million handsets in agreement, Nokia will with- 2002. draw all further financing region and is committed to RF Micro Devices began con- expansion in China, the world’s commitments to MobilCorn. struction on the Beijing test Meanwhile, in mobile net- largest and fastest growing This will reduce Nokia’s total and tape and reel facility In works, the GSM market envi- major market. In customer financing commit- November 2001 .The facility ronment ‘remained challeng- addition to the Company’s ment by an additional EUR serves as the final stage of ing’ with operator investments Beijing facility, RFMD also has 530 million. assembly for components man- showing greater-than-expected sales and customer support ufactured at the Company’s declines. WCDMA equipment But the company stresses that offices in Taiwan, Korea and Greensboro, North Carolina deployment and testing is pro- these agreements are subject Japan, and its headcount in the campus. By the end of 2002, RF ceeding well and the company to the overall resolution of the region now exceeds 100. Micro Devices expects the new expects WCDMA revenue MobilCorn situation as expect- Bob Bruggeworth, president of facility will test, tape and reel recognition to start in the third ed to be carried out by France RFMD, said, “The opening of over 10 million modules. quarter. Telecom or one of its affiliates.