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25 April 2019

MACOM and Goertek forming JV to supply GaN-on-Si products for China’s 5G build out

MACOM Technology Solutions Holdings Inc of Lowell, MA, USA (which makes semiconductors, components and subassemblies for analog RF, microwave, millimeter-wave and photonic applications) has agreed to establish a joint venture company with Goertek Inc, a multi-billion-dollar electronic components company based in Shandong, China. The joint venture will be based in Hong Kong and will supply, market and distribute gallium nitride on silicon (GaN-on-Si)-based RF power components into China’s base-station market.

Goertek focuses mainly on R&D, manufacturing and sales of components (acoustics, sensor, optoelectronic etc) and finished products (for VR/AR/MR, wearable, hearable, home applications etc). Viewing semiconductors as a strategic focus, Goertek has developed capabilities covering chip design, packaging, testing, algorithm and system integration, and has developed large-scale production capacity for MEMS products.

Goertek will provide a total of up to $134.6m to MACOM, including $30m up front. MACOM will further be entitled to royalties and dividend preferences in the joint venture. Goertek and MACOM will each contribute $25m in working capital to the JV. MACOM retains rights to sell GaN-on-Si products outside China, Hong Kong and Macau.

“This joint venture is a capstone to MACOM’s strategy to become a scale player within the multi-billion-dollar 5G base-station market in China, which in turn enables us to further invest in US-based innovation,” says MACOM’s president & CEO John Croteau. “We are pleased to be able to leverage our existing design capabilities and resources in China by aligning with a JV partner of the caliber of Goertek. They perfectly complement our GaN-on-Si based RF power component products with high-volume manufacturing expertise, well-connected sales and proven supply-chain management into China’s top OEMs and service providers,” he adds.

“Leveraging MACOM’s superior GaN-on-Si technology, we will provide world-leading RF components to the 5G market in China, as well as enriching our RF capabilities,” comments Goertek’s CEO Long Jiang.

The transaction is subject to certain closing conditions (including receipt of approval from China’s State Administration for Market Regulation) and is expected to close in second-half 2019.

Tags: M/A-COM GaN-on-Si

Visit:  www.goertek.com/en

Visit:  www.macom.com

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