Qorvo® Wins U.S. Government Project to Create Advanced, State-of-the-Art, RF Semiconductor Packaging Center

Rhea-AI Summary

Qorvo (Nasdaq: QRVO) has been awarded a $75 million contract by the U.S. government to establish a State-of-the-Art Heterogeneous Integrated Packaging (SHIP) RF production center. This initiative, supported by the Office of the Undersecretary of Defense, aims to enhance microelectronics packaging for defense and commercial sectors. With over 35 years in RF technology, Qorvo will expand its Texas facilities to meet demands for advanced RF components used in radar, unmanned vehicles, and satellite communications.

Positive

• Awarded a $75 million contract for RF production and prototyping center.
• Strengthens position in defense sector with U.S. government collaboration.
• Expanding Texas facilities enhances manufacturing capabilities.

Negative

• None.

GREENSBORO, N.C., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Qorvo^® (Nasdaq:QRVO), a leading provider of innovative Radio Frequency (RF) solutions that connect the world, has been selected by the U.S. government to create a State-of-the-Art (SOTA) Heterogeneous Integrated Packaging (SHIP) RF production and prototyping center. The SHIP program will ensure that microelectronics packaging expertise and leadership is available for both U.S. defense contractors and commercial clients that require design, validation, assembly, test and manufacturing of next-generation RF components.

The exclusive SHIP Other Transaction Agreement (OTA), worth up to $75 million, was awarded to Qorvo by the Naval Surface Warfare Center (NSWC), Crane Division. This program is funded by the Office of the Undersecretary of Defense for Research and Engineering’s (OUSD R&E) Trusted and Assured Microelectronics Program (T&AM), and is administered by the Strategic & Spectrum Missions Advanced Resilient Trusted System (S²MARTS) Other Transaction Agreement (OTA), managed by National Security Technology Accelerator (NSTXL).

Under the SHIP program, Qorvo will design and deliver the highest levels of heterogeneous packaging integration. This is essential to meet the size, weight, power and cost (SWAP-C) requirements for next-generation phased array radar systems, unmanned vehicles, electronic warfare platforms and satellite communications.

James Klein, president of Qorvo Infrastructure and Defense Products, said, “We are honored to be selected to establish state-of-the-art RF packaging capability for the U.S. Department of Defense (DoD). This award reflects Qorvo’s proven track record as a global leader in RF technology with over 35 years of experience. As part of this collaboration, Qorvo will expand its proven capabilities in Texas to create a SOTA facility that best serves the needs of the U.S. government and commercial customers.”

Qorvo’s U.S.-based capabilities include advanced manufacturing, packaging and testing for both high- and low-power applications ranging from DC to 100 GHz. Qorvo holds a Defense Microelectronics Activity (DMEA) Category 1A trusted source certification for package assembly, test and wafer foundry services at its Richardson, TX location. Qorvo further provides defense customers with greater value by applying high-yield manufacturing and scale expertise gained from serving the commercial market – where it supplies more than four billion heterogeneous modules annually.

To learn more about Qorvo’s world-class manufacturing capabilities and services through blogs, videos, white papers and more, visit www.Qorvo.com/foundry.

Qorvo is a leading supplier of high-performance RF products and compound semiconductor foundry services to defense primes and other global defense and aerospace customers. Qorvo offers the industry’s broadest Gallium Nitride (GaN)-on-SiC and Gallium Arsenide (GaAs) portfolio along with an array of other innovative products that use patented manufacturing processes in Bulk Acoustic Wave (BAW), Surface Acoustic Wave (SAW), Wafer-Level Packaging (WLP) and more. Qorvo is proud to be the only GaN supplier to achieve a Manufacturing Readiness Level 10 (MRL10) rating from the DoD.

About Qorvo
Qorvo (Nasdaq: QRVO) makes a better world possible by providing innovative Radio Frequency (RF) solutions at the center of connectivity. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers' most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including advanced wireless devices, wired and wireless networks and defense radar and communications. We also leverage unique competitive strengths to advance 5G networks, cloud computing, the Internet of Things, and other emerging applications that expand the global framework interconnecting people, places and things. Visit www.qorvo.com to learn how Qorvo connects the world.

Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.

Investor Relations Contact: Doug DeLieto VP, Investor Relations W +1 336-678-7968

Media Contact: Katie Caballero Marketing Communications Manager Qorvo Infrastructure and Defense Products W + 1 972-994-8546 Katie.caballero@qorvo.com

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by use of terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management’s current judgment and expectations, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results; our substantial dependence on developing new products and achieving design wins; our dependence on a few large customers for a substantial portion of our revenue; a loss of revenue if contracts with the United States government or defense and aerospace contractors are canceled or delayed or if defense spending is reduced; the COVID-19 pandemic, which has and will likely continue to negatively impact the global economy and disrupt normal business activities, and which may have an adverse effect on our results of operations; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs due to timing of customer forecasts; our inability to effectively manage or maintain evolving relationships with platform providers; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; our ability to implement innovative technologies; underutilization of manufacturing facilities as a result of industry overcapacity; we may not be able to borrow funds under our credit facility or secure future financing; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; volatility in the price of our common stock; damage to our reputation or brand; fluctuations in the amount and frequency of our stock repurchases; our recent and future acquisitions and other strategic investments could fail to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches and other similar disruptions compromising our information; theft, loss or misuse of personal data by or about our employees, customers or third parties; warranty claims, product recalls and product liability; and risks associated with environmental, health and safety regulations and climate change. Many of the foregoing risks and uncertainties are, and will continue to be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result. These and other risks and uncertainties, which are described in more detail in Qorvo’s most recent Annual Report on Form 10-K and in other reports and statements filed with the Securities and Exchange Commission, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

FAQ

What is the value of the contract awarded to Qorvo?

Qorvo was awarded a contract worth up to $75 million.

What is the purpose of the SHIP program by Qorvo?

The SHIP program aims to enhance microelectronics packaging for defense and commercial needs.

Which government division awarded the contract to Qorvo?

The contract was awarded by the Naval Surface Warfare Center, Crane Division.

How does Qorvo plan to utilize the awarded contract?

Qorvo plans to establish a state-of-the-art RF production and prototyping center.

What technologies will benefit from Qorvo's new RF production center?

The center will support technologies for phased array radar systems, unmanned vehicles, and satellite communications.