April 24, 2019 – Macom Technology Solutions Holdings (“MACOM”), a leading semiconductor solutions provider, announced that it has entered into an agreement with GoerTek Inc. to form a joint venture. (“GoerTek”), a multi-billion dollar electronic components company headquartered in Shandong, China. The joint venture will be headquartered in Hong Kong and will supply, sell and distribute GaN-based RF power components to the Chinese base market.
GoerTek will provide MACOM with a total of $134.6 million in funding, including $30 million in advance payments. MACOM will further enjoy the royalties and dividends of the joint venture. GoerTek and MACOM will each contribute $25 million in working capital to the joint venture. MACOM reserves the right to sell GaN on-Si products outside of China, Hong Kong and Macau.
John Croteau said: “This joint venture is the culmination of the strategy of the Ministry of Commerce to become a size participant in China’s multi-billion dollar 5G benchmark market, which in turn allows us to invest further in American innovation,” said John Croteau. MACOM President and CEO: “We are pleased to be able to work with a joint venture like GoerTek to leverage our existing design capabilities and resources in China, which complement our Ga-on-Si based RF power components. With a large amount of manufacturing expertise, it has a good sales relationship and proven supply chain management among China’s top OEMs and service providers.”
Longjiang, CEO of GoerTek, said: “We are pleased to announce this important partnership with MACOM. With MACOM’s superior Ga-on-Si technology, we will provide the world’s leading RF components to China’s 5G market, and Enrich our RF capabilities.”
The transaction must meet certain end conditions, including approval by the China National Market Regulatory Authority, and is expected to end in the second half of the calendar year.
About MACOM:
By providing breakthrough semiconductor technologies for optical, wireless and satellite networks, Macom meets the society’s endless demand for information, making the world more connected and secure.
Today, MACOM powers the infrastructure on which millions of lives and livelihoods depend for communications, business, travel, learning and entertainment. Our technology increases the speed and coverage of the mobile Internet and enables fiber-optic networks to deliver previously unimaginable traffic to businesses, homes and data centers.
MACOM technology provides a new generation of radar for air traffic control and weather forecasting for all of us.
Macom is the preferred partner of the world’s leading communications infrastructure companies, helping to address their network capacity, signal coverage, energy efficiency and field reliability through their best-in-class team and extensive analog RF, microwave, millimeter wave and photonic semiconductor products. The most complex challenges in the field.
Macom is one of the pillars of the semiconductor industry. Through bold technology, it brings customers a real competitive advantage and brings higher value to investors. It has maintained a booming momentum for more than 60 years.
Headquartered in Lowell, Massachusetts, MACOM is certified to ISO 9001 international quality standards and ISO 14001 environmental management standards. Macom has design centers and sales offices in North America, Europe and Asia.
Macom, M/A-com, M/A-com technology solutions, M/A-com technology, RF & Microwave partners, the first of the microwave and related logos are trademarks of MACOM. All other trademarks are the property of their respective owners.
About GoerTek:
GoerTek focuses on the development, manufacture and sale of precision components (acoustics, sensors, optoelectronics, etc.). And finished products (VR/AR/MR, wearable, audible, household, etc.).
GoerTek has established a global R&D network in China, the United States, Denmark, Japan, and Korea. Today, GoerTek has successfully established long-term strategic partnerships with world-class customers in the consumer electronics industry.
GoerTek believes that semiconductors are a strategic focus area for the company. GoerTek has a strong chip design, packaging, testing, algorithm and system integration capabilities, and has developed tremendous production capabilities for MEMS products. In 2017, GoerTek ranked first among the top 20 MEMS companies in China and ranked among the top in the global MEMS industry.
Special note on forward-looking statements:
This press release contains forward-looking statements based on MACOM’s beliefs and assumptions, as well as information currently available to MACOM. These forward-looking statements include, among other things, potential market opportunities for joint ventures with GoerTek, statements regarding the expected 5G network construction in China, and the ability of joint ventures to build China’s 5G network and MACOM’s acquisition from joint ventures. Potential economic benefits. These forward-looking statements reflect the current view of the Department of Commerce on future events and are subject to risks, uncertainties, assumptions and environmental changes that may cause these events or our actual activities. The results are quite different from those expressed in any forward-looking statements, including. Among other things, the risks associated with meeting the conditions for completing the joint venture transaction within the expected time, the ability of the joint venture to achieve transactional gains in China’s 5G benchmark market, the timing of China’s 5G market and the successful supply capacity of the joint venture, market and Distribution of its products and other business impacts, including industrial, market, economic, political or regulatory conditions. Although the Department of Commerce believes that the expectations reflected in the forward-looking statements are reasonable, it cannot and does not guarantee future events, outcomes, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Many important factors could cause actual results to differ materially from those described in the forward-looking statements, including but not limited to MACOM’s “risk factors” as described in the annual report in Table 10-K, quarterly reports in Table 10-Q, and securities Those factors described in the “risk factors” described in other documents submitted by the Trading Committee. Macom is under no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
