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10 April 2007


WJ completes closure of its GaAs fab

WJ Communications Inc of San Jose, CA, USA, which designs and supplies RF chips and modules for the wireless infrastructure and RF identification (RFID) reader markets, says that it has completed its transition to a fabless business model with the closure at the end of March of its 4” GaAs wafer fabrication plant in Milpitas, CA. The fab was acquired as part of WJ’s acquisition in June 2004 of EiC Corp's wireless infrastructure business.

WJ agreed in March 2006 to use pure-play III-V wafer foundry Global Communication Semiconductors Inc of Torrance, CA as a second source of GaAs and InGaP HBT wafers (starting in July). It subsequently then decided at the beginning of November to go completely fabless.

“Operating under a fabless business model will enable us to focus our resources on new product introductions for high-growth markets, including wireless small signal, wireless power, WiMAX and RFID,” says president and CEO Bruce Diamond. “The associated cost savings of $1-1.25m per quarter [$4-5m annually] will assist in further improving our financial performance in the coming quarters and years.”