RF Micro Devices Inc. (RFMD, Greensboro, NC), a provider of proprietary radio frequency integrated circuits for wireless communications applications, announced that it has established an assembly facility at its Beijing, China, location to provide internal module packaging capabilities. The new assembly operations is expected to become fully operational in the December 2004 quarter. The company forecasts that the assembly operations will become accretive to earnings in 2005.
The new facility is expected to help streamline RFMD's manufacturing supply chain and contribute directly to the company's ongoing gross margin improvement plan. The company's initiatives to improve profitability include the recent conversion from 4 in to 6 in GaAs wafers, ongoing test yield improvements, higher levels of integration and its strategic relationship with Jazz Semiconductor.
