WARREN, N.J. -- Suppliers of gallium-arsenide (GaAs) integrated circuits continue to reap strong gains in the rush to wireless systems and high-speed networking.
Anadigics Inc. here today reported a 56% increase in net sales to $47.5 million in the second quarter, compared to $30.5 million last year. On Thursday, GaAs competitor TriQuint Semiconductor Inc. in Hillsboro, Ore., posted an 85% increase in sales to $70.6 million vs. $38.1 million in the second quarter last year.
Both GaAs IC makers are moving quickly to increase their production capacity.
Anadigics today said it was on track to complete expansion of a nine-month-old facility, which will double its manufacturing cleanroom capacity in the third quarter of 2000. Meanwhile, TriQuint is also planning more GaAs capacity in a wafer fab building being acquired from Micro Technology Inc. The facility, located north of Dallas in Richardson, Tex., was originally built by an ill-fated DRAM venture between Texas Instruments Inc. and Hitachi Ltd., but now it will be part of TriQuint's ramp of GaAs chip production (see May 24 story).
Anadigics is now "fortifying" its wireless business with a new indium gallium phosphide (InGaP) heterojunction bipolar transistor (HBT) series that will be produced on 6-inch wafers, said Bami Bastani, president and CEO of the Warren-based company. "During the second quarter, Anadigics made additional headway in diversifying its customer base, particularly in our broadband businesses," Bastani added.
In the quarter, ended July 2, Anadigics posted a net income of $6.6 million on sales of $47.5 million, compared to a net loss of $4.1 million on sales of $30.5 million. Anadigics' sales of wireless products--principally power amplifier ICs for mobile phones--were $25.5 million in the quarter, an increase of 95% from the year-ago quarter and 9% sequentially from the first quarter.
Meanwhile, TriQuint achieved record bookings, revenues, operating income, and net income in the second quarter, according to Steven J. Sharp, chairman, president and CEO of the Oregon company. In the second quarter, TriQuint's net income rose 280% to $16.4 million from $4.3 million in the period last year.