Technology Solutions Holdings, Inc. (“MACOM”), a leading supplier of
semiconductor solutions, today announced that it has entered into an
agreement to establish a joint venture company with Goertek Inc.
(“Goertek”), a multibillion-dollar electronic components company based
in Shandong, China. The joint venture company will be based in Hong Kong
and will supply, market and distribute GaN-on-Si based RF Power
components into China’s basestation market.
Goertek will provide total consideration to MACOM of up to $134.6
million, including $30 million up front. MACOM will further be entitled
to royalties and dividend preferences in the joint venture. Goertek and
MACOM will each contribute $25 million in working capital to the joint
venture. MACOM retains rights to sell GaN-on-Si products outside of
China, Hong Kong and Macau.
“This joint venture is a capstone to MACOM’s strategy to become a scale
player within the multi-billion dollar 5G basestation market in China,
which in turn enables us to further invest in U.S.-based innovation,”
stated John Croteau, President and Chief Executive Officer of MACOM. “We
are pleased to be able to leverage our existing design capabilities and
resources in China by aligning with a JV partner of the caliber of
Goertek. They perfectly complement our GaN-on-Si based RF Power
component products with high-volume manufacturing expertise,
well-connected sales and proven supply chain management into China’s top
OEMs and service providers.”
Long Jiang, CEO of Goertek commented, “We are delighted to announce this
important partnership with MACOM. Leveraging MACOM’s superior GaN-on-Si
technology, we will provide world leading RF components to the 5G market
in China, as well as enriching our RF capabilities.”
The transaction is subject to certain closing conditions, including
receipt of approval from China’s State Administration for Market
Regulation, and is expected to close in the second half of the calendar
MACOM enables a better-connected and safer
world by delivering breakthrough semiconductor technologies for optical,
wireless and satellite networks that satisfy society’s insatiable demand
Today, MACOM powers the infrastructure that millions of lives and
livelihoods depend on every minute to communicate, transact business,
travel, stay informed and be entertained. Our technology increases the
speed and coverage of the mobile Internet and enables fiber optic
networks to carry previously unimaginable volumes of traffic to
businesses, homes, and datacenters.
Keeping us all safe, MACOM technology enables next-generation radars for
air traffic control and weather forecasting.
MACOM is the partner of choice to the world’s leading communications
infrastructure companies, helping solve their most complex challenges in
areas including network capacity, signal coverage, energy efficiency and
field reliability, through its best-in-class team and broad portfolio of
analog RF, microwave, millimeterwave and photonic semiconductor products.
MACOM is a pillar of the semiconductor industry, thriving for more than
60 years of daring to change the world for the better, through bold
technological strokes that deliver true competitive advantage to
customers and superior value to investors.
Headquartered in Lowell, Massachusetts, MACOM is certified to the
ISO9001 international quality standard and ISO14001 environmental
management standard. MACOM has design centers and sales offices
throughout North America, Europe, and Asia.
MACOM, M/A-COM, M/A-COM Technology Solutions, M/A-COM Tech, Partners in
RF & Microwave, The First Name in Microwave and related logos are
trademarks of MACOM. All other trademarks are the property of their
Goertek mainly focuses on R&D, manufacturing
and sales of precision components (Acoustics, Sensor, Optoelectronic,
etc.) and finished products (VR/AR/MR, Wearable, Hearable, Home and
Goertek has established global R&D networks in China, USA, Denmark,
Japan, South Korea and etc. Today, Goertek has successfully reached and
closed long-term strategic partnerships with world-class customers in
the consumer electronics industry.
Goertek views semiconductor as a strategic focused area for the company.
Goertek has developed strong capabilities covering chip design,
packaging, testing, algorithm and system integration, and developed
large production capacity for MEMS products. In 2017, Goertek ranked No.
1 among the top 20 MEMS enterprises in China, and ranked in the
forefront of the global MEMS industry.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS:
press release contains forward-looking statements based on MACOM’s
beliefs and assumptions and on information currently available to
MACOM. These forward-looking statements include, among others, the
potential market opportunity for the proposed joint venture with
Goertek, statements about the anticipated China 5G network buildout, the
joint venture’s ability to capitalize on the China’s 5G network
buildout, and the potential financial benefits derived by MACOM from the
joint venture. These forward-looking statements reflect MACOM’s current
views about future events and are subject to risks, uncertainties,
assumptions and changes in circumstances that may cause those events or
our actual activities or results to differ materially from those
expressed in any forward-looking statement, including. among other
things, risks related to the satisfaction of the conditions to closing
the joint venture transaction in the anticipated timeframe or at all,
the risks related to the ability of the joint venture to realize the
benefits of the transaction in China’s 5G basestation market, the timing
of the China 5G market and the joint venture’s ability to successfully
supply, market and distribute its products and other business effects,
including the effects of industry, market, economic, political or
regulatory conditions. Although MACOM believes that the expectations
reflected in the forward-looking statements are reasonable, it cannot
and does not guarantee future events, results, actions, levels of
activity, performance or achievements. Readers are cautioned not to
place undue reliance on these forward-looking statements. A number of
important factors could cause actual results to differ materially from
those indicated by the forward-looking statements, including, but not
limited to, those factors described in “Risk Factors” in MACOM’s Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings
with the Securities and Exchange Commission. MACOM undertakes no
obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.