MACOM has partnered with Goertek to supply, market and distribute GaN-on-Si based RF Power components into China’s base station market. Goertek is an electronic components company based in Shandong, China. MACOM will create a company that will enter into an agreement to establish a joint venture company with Goertek.
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. 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.
This joint venture is a capstone to MACOM’s strategy to become a scale player within the multi-billion dollar 5G base station market in China, which in turn enables us to further invest in U.S.-based innovation.
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 year.
