RF Micro Acquires Silicon Wave

RF Micro Devices signs agreement to acquire Silicon Wave, supplier of integrated citcuits for wireless personal area networks

April 22, 2004

3 Min Read

GREENSBORO, N.C. -- RF Micro Devices, Inc. (NASDAQ: RFMD), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today announced it has signed a definitive agreement to acquire Silicon Wave, Inc., a privately held, San Diego-based company that is a leading supplier of integrated circuits for Wireless Personal Area Networks (WPANs).

Silicon Wave's Bluetooth(R) product portfolio includes highly integrated single-chip CMOS radio processors (including the radio modem and digital baseband functions), as well as stand-alone CMOS radio modem solutions. The CMOS Bluetooth radio processors have a unique architecture that does not require external flash memory nor external RF components, which represents a cost and size advantage compared to competitors' solutions. Silicon Wave's Bluetooth products are currently in production and in use supporting multiple applications, including cellular handsets, PC peripherals and consumer electronics devices. Based on existing Bluetooth design activity, RF Micro Devices currently anticipates quarterly Bluetooth revenue will increase sequentially throughout its current fiscal year ending March 31, 2005.

Stuart Carlaw, Senior Bluetooth Analyst, IMS Research, said, "With the acquisition of Silicon Wave, RFMD puts itself in an extremely strong position to capture growth in the explosive Bluetooth market, which we anticipate will grow more than six-fold over the next three years. RFMD is a leader in the cellular PA market with a customer base that's ripe to leverage for Bluetooth sales. Silicon Wave is an emerging force in personal area networks with highly integrated all-CMOS Bluetooth offerings that are gaining traction as stand-alone products. They're also uniquely architected to provide convergent multi-protocol wireless solutions leveraging RFMD's silicon-based product portfolio in complementary wireless connectivity markets. Given RFMD's leadership position in wireless and Silicon Wave's pioneering efforts establishing the next-generation, higher data-rate Bluetooth v1.2 standard, this acquisition presents excellent opportunities for both companies to combine their competitive strengths to create shareholder value."

Bob Bruggeworth, president and chief executive officer of RF Micro Devices, said, "Leading industry analysts, such as IMS Research, forecast approximately 100 million Bluetooth devices will be shipped this year. This growth is being driven by the cellular handset market and related markets, including wireless headsets, printers and PC peripherals. Through our relationship with Silicon Wave, RFMD has design wins and is beginning to ramp multiple customers in each of these target markets. We have developed an excellent working relationship with Silicon Wave, and we have been impressed by the depth of their abilities in CMOS circuit design, systems level integration and product development. During the past year, they have proven their ability to execute and deliver Bluetooth products, which are enjoying strong design traction."

David Lyon, president and chief executive officer of Silicon Wave, said, "The combination of Silicon Wave's highly integrated CMOS systems-level Bluetooth solutions with RF Micro Devices' customer relationships, strong supply chain and strategy to deliver increased functionality to the marketplace make this a great fit for both companies."

RF Micro Devices Inc.

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