Philips Semiconductors and TriQuint Sign Agreement On Compound Semiconductor Technology.

Business Editors/High Tech Writers

EINDHOVEN, Netherlands--(BUSINESS WIRE)--Feb. 19, 2002

Philips Semiconductors Enhances its RF Technology Portfolio

by Access to TriQuint's InGaP HBT Process

Philips Semiconductors, a division of Royal Philips Electronics (NYSE:PHG)(AEX:PHI), and TriQuint Semiconductor, Inc. (Nasdaq:TQNT) today signed an agreement paving the way for a partnership that guarantees Philips Semiconductors controlled access to TriQuint's InGaP (Indium-Gallium-Phosphide) HBT (Heterojunction Bipolar Transistor) 150-mm wafer processing facilities, and provides for joint development of future advanced high-performance process technologies.

This agreement provides Philips Semiconductors important access to the technology-of-choice for critical components in the PA (Power Amplifier) and FE (Front-End) modules that it designs and manufactures for the mobile phone industry, while ensuring that TriQuint will enhance its position as a leading supplier for GaAs devices.

"Today's mobile phone manufacturers increasingly look to modules as a way of simplifying their design and production process and guaranteeing RF performance," said Thierry Laurent, executive vice president, Business Unit Mobile Communications at Philips Semiconductors. "In a module you have the opportunity to mix a range of technologies in order to offer customers the very best price/performance ratio. We believe that InGaP HBT is the best technology in which to implement components such as the output stage of linear and high-efficient power amplifier modules and front-end modules."

Bruce Fournier, vice president and general manager of Foundry Services at TriQuint, commented, "Philips Semiconductors' strong RF market presence offers us increased manufacturing volumes starting with our current, second-generation InGaP HBT process. This complements our strategy of driving for the lowest manufacturing cost structure. Additionally, their success in mobile wireless applications provides market driven insight for advanced technology development in the area of InGaP HBT and beyond. With advanced technology and world-class manufacturing efficiency, we expect this partnership to be a very competitive force in the GSM and CDMA markets."

Both partners will sell their own products in the market. Early collaboration has already resulted in a new W-CDMA PA module (BGY402, sampling now) and PA/FE modules for GSM phones available from Philips Semiconductors. TriQuint is currently shipping PA products into the CDMA market and offers this InGaP HBT process, as well as other GaAs processes to the market through its open foundry.

Future development of advanced processes will focus on consumer applications for mobile communication markets. This new agreement cements a long-term relationship between the two companies since 1996, combining TriQuint's wealth of knowledge in advanced semiconductor technology with Philips Semiconductors' extensive RF design and applications know-how in the production of RF modules.

"TriQuint is a particularly attractive partner for us because they are a mass volume manufacturer of GaAs semiconductors. They have the ability to engineer and grow the epitaxial layers on which these advanced devices are fabricated, which not only means they can control device quality, but also puts them in a position to push forward new process developments. Furthermore, TriQuint has a renowned R&D activity in the field of III-V semiconductor materials that can be well combined with Philips Semiconductors' R&D in RF systems," said Laurent.

Philips Semiconductors is one of the world's leading suppliers of RF modules to the mobile telecommunications market, employing a mix of technologies to create products with highly competitive price/performance ratios. TriQuint's InGaP HBT technology will enhance this portfolio to produce the highly linear, high efficiency output devices required in RF power amplifiers for high data-rate 2.5G and 3G systems such as EDGE and UMTS. Combined with Philips Semiconductors' high-performance RF silicon transistors, and its passive component integration capabilities, this will allow the production of small size RF modules with a very low production spread in their RF characteristics, and extremely stable performance over time and temperature.

About Philips Semiconductors

Philips Semiconductors, a top ten semiconductor supplier with revenues of US $4.4 billion in 2001, is a world leader in silicon systems and standard products for consumer, communications, automotive and computing products. The organization designs, develops and manufactures silicon solutions based on its innovative Nexperia(TM) architectures to create living technology for its customers creating products, service providers using the products, and consumers enjoying the resulting products and services. For more information: www.semiconductors.philips.com.

About TriQuint

TriQuint Semiconductor, Inc. (Nasdaq:TQNT) is a leading supplier of high performance components for communications applications. The company strives for diversity in its markets, applications, products, technology and customer base. Markets include wireless phones, base stations, optical networks, broadband and microwave, and aerospace and defense with a specific focus on RF, analog and mixed signal applications. TriQuint provides customers with standard and custom product solutions as well as foundry services. Products are based on advanced process technologies including gallium arsenide, indium phosphide, silicon germanium, and SAW filters. TriQuint customers include major communications companies worldwide. TriQuint has facilities located in Oregon, Texas, Florida and Massachusetts in the United States and in Costa Rica. All are certified to the ISO9001 international quality standard. TriQuint is headquartered at 2300 NE Brookwood Parkway, Hillsboro, OR 97124. For more information visit our website at www.triquint.com.