RFMD development scale packaging factory is expected to increase production capacity of 50% China

Supplier RF Micro Devices RF integrated circuit company (RFMD) announced that the expansion of the company's board of directors has approved the RFMD packaging factory, the development plan in the second quarter of 2006 began to implement. The company expects the expansion will enable the RFMD packaging capacity increased by nearly 50%, and this increase in part of the company's packaging needs accounted for about 25%.

RFMD packaging factory in Beijing put into operation in 2005. Previously, the company outsourced all its semiconductor packaging services to third parties. RFMD believes that by increasing its packaging capacity, has strengthened its supply chain, and reduce manufacturing costs, and manufacturing costs are the main factors affecting the company's plans to improve profit margins.

RFMD vice president Jim Stilson said: "RFMD continues to gain market share in the sending module and the wireless transceiver module, and predicts that more and more customers will use these products in 2006. We expect this expansion will have a significant impact on our ability to meet customer needs and reduce costs. With the packaging and testing work in the same building, we can take advantage of shorter cycle and lower inventory storage and transportation costs."

RFMD CFO Dean Priddy stressed: "expand the package capacity in line with our overall objective of enhancing the rate of profit. Our internal packaging products have lower manufacturing costs, so there is a higher profit margin than the way of using third party packaging components."