financial news ♦ compound semiconductor ♦ news digest
He added, “Now what we are doing is as demand increases we’ve got plenty of headroom capacity to go internally with this 6” HBT with relatively short lead time, equipment, and human resources or people. So we’re on that path. We see more margin expansion as we grow and we’re able to moderate how much we do internally versus how much we do outside.”
He noted, “We needed the 6” conversion because when you get the 6” conversion and rough water magnitude you get, each wafer produces a little bit more than 2x the number of dye. So we needed to do that. And now that we’ve gone to 6” we have the opportunity for a relatively small amount of capital to expand that further. We also have an ongoing relationship with an outside provider with a copy- exact process; we can ramp those folks as well. So I think from an HBT standpoint we are in very good shape.”
“As the industry goes to 1.6 billion handsets we have the capacity to produce what is even at our most aggressive unit volume increase and our share aspirations; when we factor both of those in on the aggressive side we have plenty of capacity. I don’t think that’s an issue. There is tightness of gallium arsenide supply elsewhere in the market but that’s not a concern of ours because we can do it internally”, he concluded.
With respect to handset revenue, Don Palette commented, “Handset revenue was in the 75% to 80% range. We wouldn’t expect that percentage to change in the Q4. 2011.” He added, “The mix for the quarter, we’re now slightly more than half 3G versus 2G. We were 52% 3G and 48% 2G.“.
Aldrich added, “I also think we should point out that even within that 20% to 25% or 75% to 80% on the handset side, it really marks a big shift within the handset sector, which is we’re moving pretty dramatically away from the 2G segment more towards 3G. We’re seeing more 4G, more multi mode and highly integrated solutions with more content.”
Regarding mobile handsets, Aldrich added, “With respect to Nokia, this quarter they’re roughly a 10% customer. We’re very happy with that, we’re proud of that. And we have just begun to ramp into some of the segments where we haven’t previously participated. So we see ourselves rounding out that portfolio, and as we’ve identified in the past,
continue to see sequential growth as we move from primarily being a 3G provider in the past to being lined out in their entire portfolio, we think sometime between now and 2011.”
The discussions also involved business in China. Liam Griffin remarked, “China is certainly an important market for Skyworks. We’re a big fan of that region. We’ve invested quite a bit in the ecosystem. We did see some choppiness in the account base there, and we serve up to 100 small OEMs in that market. There has been some choppiness; we think it’s righting itself right now and should improve as we get into the second half of the year to some degree.”
He added, “In addition to the traditional handset guys that we work with, we are seeing some very good progress across the infrastructure space, mainly with companies like WAWE and BTE; and as Dave noted we were awarded not only the technology award plus plaque but also some great business with WAWE over the last quarter.”
Griffin also said, “We mentioned on the call that we just launched the first commercial LP device, which is really in the form of a USB dongle provided by Samsung. That is a great model for what you may see. Now that device has an Edge FEM, several W CDA bands and actually three LTA bands. So quite a bit of content. We’re now looking at customers that are thinking about 2011, 2012 with as many as six different discreet devices that Skyworks can provide – two or three LTE, two or three WCDMA. So it is going to be a material gain in content for us and it’s also you know, quite challenge in terms of complexity and performance.”
Regarding smart meters, Aldrich commented “It’s been the fastest growing segment in our non- handset business. It’s right now about 20% of our non-handset business. Regarding CAPEX, Palette commented, “I would anticipate it’s going to be a level that you’ve seen in the past few quarters, in the $20 million to $25 million range. We don’t guide cash flow but that’s a number that is not out of the realm of possibilities for us.”
August/September 2010
www.compoundsemiconductor.net 207
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213