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10 April 2007


Anadigics to build 6-inch GaAs fab in China

To expand its wafer fabrication capacity beyond its main fab in Warren, NJ, USA, Anadigics Inc, which manufactures RFICs for the wireless handset and broadband communications markets, has entered into an investment contract with the Kunshan New and Hi-Tech Industrial Development Zone (KSND) to jointly construct a new 6” gallium arsenide IC fab in the city of Kunshan in China’s Jiangsu Province. Kunshan is located at the center of Yangze River Delta, less than 50km from the cities of Shanghai and Suzhou.

Anadigics expects to invest $10-15m in capital expenditure over a two-year period, starting in fourth-quarter 2007 through to an initial production phase projected for first-quarter 2009. Anadigics’ total investment over the facility’s life-time (which could extend up to 50 years, the firm says) is estimated at $ 49.88 m. Last month Anadigics raised $98.8m for capital expenditure aftercompleting a public offering of its stock.

“This project is expected to provide us with an attractive cost structure and to enable us to meet our future fab capacity needs…as well as providing us with increased access to one of the fastest-growing markets for wireless and broadband communications,” says Dr Bami Bastani, Anadigics’ president and chief executive officer.

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