Olivia Hu, Taipei; Jessie Shen

 

GaAs foundry Advanced Wireless Semiconductor Company (AWSC) is expected to convert all of its production capacity to 6-inch wafers in the third quarter of 2011, according to industry sources. The transition will help lift the company's gross margin.

In addition, AWSC is gearing up for volume shipments of GaAs devices, manufactured on 6-inch wafers, for use in solar concentrators in the third quarter, the sources said. The company reportedly has grabbed orders for solar concentrators installed at power plants in the US.

With shipments for solar concentrators set to expand, AWSC is likely to generate record monthly revenues in September, the sources indicated.

AWSC posted revenues of NT$538 million (US$18.6 million) in the second quarter, up 41% sequentially. Market watchers credited the positive result to strong demand for power amplifiers (PAs) and switch ICs used in smartphones and tablets.

AWSC reportedly has entered Apple's supply chain via major client Skyworks.

Despite the revenue growth, AWSC's gross margin may have been affected by higher R&D costs in the second quarter, according to the watchers. The expenses were for the company's transition to 6-inch wafers, and also development of its new product line targeting solar applications, the watchers indicated.