TriQuint brings GaAs to the masses

SAN JOSE, Calif. – In 1985, a group of engineers left Tektronix Inc. and founded TriQuint Semiconductor Inc. to pursue gallium arsenide (GaAs) technology for high performance wireless applications.

For years, GaAs was touted as the ''next big technology’’ that would eventually replace silicon. GaAs never realized those promises and TriQuint (Hillsboro, Ore.) plodded along, selling into niche wireless applications.

But more recently, TriQuint has been on a roll on several fronts. The company’s power amplifiers, modules and related RF devices have been incorporated into various and hot mobile devices from Apple, HTC, Motorola, RIM, Samsung, among others. In many of those designs, TriQuint sells an RF module that integrates a duplexer, power amplifier and a filter.

And this week, TriQuint cut the ribbon for a new design center in San Jose, which will propel its ongoing efforts in its growing networking business. The center involves employees within WJ Communications Inc., a company that was acquired by TriQuint in 2008.

The design and test engineering center, which has 90 employees, develops network infrastructure products, such base stations chips, CATV ICs, small signal devices and others. It is also developing products for the company’s eventual entry or expansion into the RFID and smart grid segments.

The company is also expanding its fab capacity, which is supply constrained, according to analysts. And it appears that TriQuint will resume its aggressive acquisition efforts.

With little or no fanfare, TriQuint has moved beyond being a mere GaAs house. ''In essence, we were once a GaAs foundry,’’ said Brian Balut, vice president of networks at the company’s design center here this week. ''Now, we’re a RF solutions house.’’

The company’s fortunes jumped three to four years ago, when it obtained an RF design win for Apple Inc.’s iPhone, said analyst Todd Koffman, who follows TriQuint for Raymond James & Associates Inc. Design wins for Apple's iPhone and iPad, and more recently, mobile phone maker HTC, ''have really catapulted them,’’ Koffman said. It also catapulted them as the ''second largest RF company, behind Skyworks.’’

TriQuint’s sales have more than doubled, from $401.79 million in 2006 to $878.7 in 2010. This year, the company’s sales are projected to hit $1.03 billion, according to Zacks.     

TriQuint faces several challenges, namely to continue to win sockets in the mobile space. Competition remains fierce in the RF chip market against the likes of Anadigics, RF Micro Devices and Skyworks. And it competes against various players in the network transport arena.

''The biggest issue is that (TriQuint has) run out of manufacturing capacity,’’ Koffman said, adding that TriQuint is expected to expand its fab capacity by roughly 30 percent by year’s end.