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25 May 2007


WJ Communications enters technology license and foundry agreement; sells wafer manufacturing equipment

Following its transition to a fabless model at the end of March, plans of which were first announced last November, RFIC maker WJ Communications Inc of San Jose, CA, USA has entered into a technology license and foundry agreement with AmpTech Inc. The company has also sold its wafer manufacturing equipment.

“Our specialized Milpitas wafer fab has served us well for many years, and we look forward to partnering with AmpTech to ensure a steady flow of wafers in the future,” said Bruce Diamond, president and CEO of WJ Communications. “The foundry agreements with AmpTech and GCS provide WJ a dual source strategy with qualified foundries and ensure capacity flexibility to meet the future needs of our customers.”

Ray Milano, CEO of AmpTech, added: “The purchase of WJ’s Milpitas fabrication equipment, combined with the license agreement, accelerates our technology roadmap and allows us to instantly leverage WJ’s expertise in advanced proprietary process technologies.”

WJ Communications said the proceeds from the sale amounted to approximately $1.8m in cash, and included other considerations. As part of the deal, AmpTech has entered into a lease agreement with the owner of the building in which WJ Communications’ Milpitas facility was located. AmpTech will also offer employment to certain WJ Communications’ employees. Production ramp-up is planned to commence in the near term.

See related items:

WJ losses prolonged by delayed fab closure and product qualification

WJ completes closure of its GaAs fab

WJ grew 54% in 2006, tempered by Q4’s wireless infrastructure slowdown

WJ reports sales up 57% year-on-year and plans to go fabless; launches first 28V InGaP HBTs for 3G