SAN JOSE, Calif. — RF Micro Devices Inc. (RFMD), a provider of radio frequency integrated circuits for wireless communications applications, has approved the expansion of its assembly operations in China.
The expansion, which is projected to be on line during the June quarter of 2006, is expected to increase RFMD's internal assembly capacity by approximately 50 percent, This represents approximately 25 percent of the company's assembly requirements.
RFMD's assembly operations, which are located in Beijing, were brought on line in 2005. Previously, the company outsourced all of its semiconductor assembly services to third party assembly vendors.
By increasing internal assembly capacity, RFMD has significantly strengthened its supply chain and has reduced manufacturing costs, which are a primary contributor to the company's ongoing initiatives to increase gross margin.