MACOM Expands IC Design Expertise with Acquisition of ENGIN-IC

Rhea-AI Summary

MACOM Technology Solutions (NASDAQ: MTSI) has acquired ENGIN-IC, a fabless semiconductor company specializing in Gallium Nitride (GaN) monolithic microwave integrated circuits and microwave assemblies. Founded in 2014, ENGIN-IC focuses on U.S. defense industry solutions with a portfolio of over 60 standard MMICs and custom products. The acquisition, funded with cash-on-hand, aims to strengthen MACOM's market position through ENGIN-IC's design capabilities in wideband and high-efficiency MMIC and module design. The transaction is expected to have minimal impact on MACOM's near-term financial performance.

Positive

• Expands product portfolio with over 60 standard MMICs and custom products
• Strengthens design capabilities in GaN semiconductor technology
• Enhances presence in U.S. defense industry market
• Transaction funded with existing cash, indicating strong liquidity

Negative

• None.

Insights

Tech Industry Analyst

The acquisition of ENGIN-IC represents a strategic move to enhance MACOM's GaN MMIC design capabilities and defense market presence. ENGIN-IC's portfolio of over 60 standard MMICs and numerous custom solutions strengthens MACOM's competitive position in military communications and radar systems. The deal's funding through cash-on-hand indicates MACOM's strong financial position, though the "immaterial impact" suggests immediate financial implications.

The acquisition particularly bolsters MACOM's defense sector offerings, where ENGIN-IC has established relationships with prime contractors and secured DoD research projects. The combined expertise in GaN semiconductor processes could accelerate product development and market penetration, especially in high-performance RF applications. While the immediate financial impact is minimal, the long-term strategic value lies in expanded design capabilities and potential market share gains in the defense electronics sector.

LOWELL, Mass.--(BUSINESS WIRE)-- MACOM Technology Solutions Holdings, Inc. (“MACOM”) (NASDAQ: MTSI), a leading supplier of semiconductor products, announced today that it has acquired ENGIN-IC, Inc. (“ENGIN-IC”), a fabless semiconductor company that designs advanced Gallium Nitride (“GaN”) monolithic microwave integrated circuits (“MMICs”) and integrated microwave assemblies located in Plano, Texas and San Diego, California. It is expected that ENGIN-IC’s design capabilities will strengthen MACOM’s ability to serve its target markets and gain market share.

Founded in 2014 by industry veterans, ENGIN-IC has focused on serving the U.S. defense industry since its inception. The company was self-funded and utilized small business innovative research (SBIR) contracts, Department of Defense (DoD) research projects and custom integrated circuit (“IC”) development projects for defense prime contractors to build industry leading products. Its product portfolio includes over 60 standard MMICs and many more custom MMICs, including high efficiency power amplifiers, integrated transmit/receive chips, phase-shifters, time delay units (TDUs), mixers and modulators, as well as S- to K-band switched filter bank modules and L- to K-band transmit/receive modules.

“We are excited to welcome the ENGIN-IC team to MACOM,” said Stephen G. Daly, MACOM President and Chief Executive Officer. “ENGIN-IC's exceptional wideband and high efficiency MMIC and module design expertise will enable us to better support our mutual customers.”

“We are thrilled to join the MACOM team,” said Stephen Nelson, ENGIN-IC Co-Founder and Chief Technology Officer. “MACOM’s talented team and growth strategies align well with ENGIN-IC’s strengths, and we look forward to all that we can accomplish together. We are excited to be a part of MACOM’s efforts to lead the industry in GaN semiconductor processes and products.”

The transaction was funded with cash-on-hand and is expected to have an immaterial impact to MACOM’s near-term financial performance.

About MACOM
MACOM designs and manufactures high-performance semiconductor products for the Telecommunications, Industrial and Defense and Datacenter industries. MACOM services over 6,000 customers annually with a broad product portfolio that incorporates RF, Microwave, Analog and Mixed Signal and Optical semiconductor technologies. MACOM has achieved certification to the IATF16949 automotive standard, the ISO9001 international quality standard and the ISO14001 environmental management standard. MACOM operates facilities across the United States, Europe, Asia and is headquartered in Lowell, Massachusetts. To learn more visit www.macom.com.

About ENGIN-IC
ENGIN-IC, located in Plano, Texas and San Diego, California, provides differentiation for companies looking for advanced MMIC and module solutions. The founders of the company bring over a century of Microwave product design experience from MMICs to complex RF subsystems primarily in the Defense, Hi-Rel, and Telecommunication markets. The company has an excellent understanding of microwave technology and designer requirements for advanced RF products.

Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements based on MACOM management’s beliefs and assumptions and on information currently available to our management. These forward-looking statements include, among others, statements about the potential market opportunity resulting from the acquisition of ENGIN-IC, ENGIN-IC’s capabilities and technology, MACOM’s ability to better address certain markets, expand its capabilities and extend its product offerings and the potential financial benefits derived by and financial impact to MACOM from the acquisition. 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 indicated by the forward-looking statements, including, among other things, risks related to the ability of MACOM to realize the anticipated benefits of the transaction; our ability to develop new products and achieve market acceptance of those products; component shortages or other disruptions in our supply chain, including as a result of geopolitical unrest or otherwise; inflationary pressures; any failure to accurately anticipate demand for our products and effectively manage our inventory; our dependence on a limited number of customers; risks related to any weakening of economic conditions; our ability to compete effectively; and those other factors described in “Risk Factors” in MACOM’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the SEC. These forward-looking statements speak only as of the date of this press release, and MACOM undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241106597662/en/

Company Contact:

MACOM Technology Solutions Holdings, Inc.

Stephen Ferranti

Vice President, Corporate Development and Investor Relations

P: 978-656-2977

E: stephen.ferranti@macom.com

Source: MACOM Technology Solutions Holdings, Inc.

FAQ

What is the financial impact of MACOM's (MTSI) acquisition of ENGIN-IC?

The acquisition, funded with cash-on-hand, is expected to have an immaterial impact on MACOM's near-term financial performance.

What products does ENGIN-IC bring to MACOM's (MTSI) portfolio?

ENGIN-IC brings over 60 standard MMICs and custom MMICs, including high efficiency power amplifiers, integrated transmit/receive chips, phase-shifters, time delay units, mixers, modulators, and various modules.

What is the strategic rationale behind MACOM's (MTSI) acquisition of ENGIN-IC?

The acquisition strengthens MACOM's design capabilities in GaN semiconductor technology and enhances its ability to serve target markets and gain market share, particularly in the U.S. defense industry.