About MACOM Technology Solutions Holdings

MACOM Technology Solutions Holdings, Inc. designs and manufactures semiconductor products for the industrial and defense (I&D), data center, and telecommunications (Telecom) industries. The company designs, develops, and manufactures differentiated semiconductor products for customers who demand high performance, quality, and reliability. The company has more than 70 years of application expertise, combined with expertise in analog and mixed signal circuit design, compound semiconductor fabrication (including gallium arsenide (GaAs), gallium nitride (GaN), indium phosphide (InP), and specialized silicon), and advanced packaging and back-end assembly and test. The company offers a broad portfolio of thousands of standard and custom devices, which include integrated circuits (IC), multi-chip modules (MCM), diodes, amplifiers, switches and switch limiters, passive and active components and radio frequency (RF) and optical subsystems, which make up dozens of product lines that service over 6,000 end customers in its three primary markets. The company's products are electronic components that its customers generally incorporate into larger electronic systems, such as wireless basestations, high-capacity optical networks, data center networks, radar, medical systems and test and measurement applications. The company's primary end markets are I&D, which includes military and commercial radar, RF jammers, electronic countermeasures, communication data links, satellite communications and multi-market applications, which include industrial, medical, test and measurement and scientific applications; Data Center, which includes intra-Data Center, Data Center Interconnect (DCI) applications, at 100G, 200G, 400G, 800G and higher speeds, enabled by its broad portfolio of analog ICs and photonic components for high speed optical module customers; and Telecom, which includes carrier infrastructure, such as long-haul/metro, 5G and Fiber-to-the-X (FTTx)/passive optical network (PON), among others. The company continues to develop new products and technologies to improve its ability to serve its primary markets. The company's growth strategy focuses on expanding its addressable markets and product portfolio, strengthening its customer relationships and capturing more design wins in order to increase its market share. As the company grows its portfolio and technology base, the company's customers will select more of its components for use in their systems. The company's manufacturing model consists of domestic semiconductor wafer fabrication assembly and test capabilities coupled with domestic and international external foundry and assembly and test partners. The company operates semiconductor fabrication facilities at its Lowell, Massachusetts headquarters, and in its Ann Arbor, Michigan, and Limeil-Brevannes, France locations. Certain of the company's facilities have achieved certification to the IATF16949 automotive standard, the AS9100D aerospace standard, the ISO9001 international quality standard, the ISO14001 environmental management standard and the ANSI/ESD S20.20:2014 standard. The company manufactures compound semiconductors, including GaAs, GaN, and InP. The company has been accredited by the United States Department of Defense with 'Trusted Foundry' status, a designation conferred on microelectronics vendors exhibiting the highest levels of process integrity and protection. In the I&D markets, a domestic fabrication facility may be a requirement to be a strategic supplier. The company also utilizes external semiconductor foundries to access additional process technologies and capacity. In aggregate, the company utilizes a broad array of internal, proprietary process technologies and commercially available foundry technologies, which allows it to select the most appropriate technology to solve its customers' needs. This strategy is intended to provide the company with dependable supply, control over quality, reduced capital investment requirements, faster time to market and additional outsourced capacity when needed. In addition, the know-how developed through the continued operation of its internal fabrication lines provides it with the expertise to better manage its external foundry suppliers. Markets and Products The company's core strategy is to develop and innovate high-performance products that address its customers' technical challenges in its primary markets: I&D, Data Center, and Telecom. Industrial & Defense In the I&D market, military applications require advanced electronic systems, such as radar warning receivers, communications data links and tactical radios, unmanned aerial vehicles, RF jammers, electronic countermeasures, and smart munitions and satellite communications (SATCOM). Military applications are becoming more sophisticated and requiring more high-speed bandwidth, favoring higher performance semiconductor ICs based on GaAs and GaN technologies due to their high power density, improved power efficiency and broadband capability. The company has been accredited by the United States Department of Defense with Trusted Foundry status, which differentiates the company as a trusted manufacturer of ICs for the U.S. military and aerospace applications. For radar applications, the company offers standard and custom amplifiers, discrete components, switch limiters, phase shifters and integrated modules for transmit and receive functions in air traffic control, marine, weather, and military radar applications. For military communications data link and tactical radio applications, the company offers a family of active, passive and discrete products, such as Monolithic Microwave Integrated Circuits (MMICs), control components, voltage-controlled oscillators, transformers, power pallets, amplifiers, and diodes. Growth in the I&D business is also driven by multi-market applications encompassing industrial, medical, test and measurement and scientific applications, where analog RF, microwave and millimeter wave semiconductor solutions are gaining prevalence. In addition, evolving medical technology has increased the need for high-performance MMICs and other semiconductor solutions in medical imaging and patient monitoring to provide enhanced analysis and functionality. In the medical industry, the company's custom designed non-magnetic diode product line is a critical component for certain MRI applications. For sensing and test and measurement applications, the company's heterolithic microwave integrated circuit (HMIC), process is ideal for high-performance, integrated bias networks and switches. The company's catalog of general purpose GaAs ICs includes low noise amplifiers, switches and power amplifiers that address a wide range of applications, such as industrial automation systems to test and measurement equipment. Data Center Demand by Cloud Data Center providers for faster data delivery speeds at cost-effective prices is growing rapidly, where higher speeds are necessary to process the current growth in traffic. To solve these challenges, the company leverages its broad optical and photonic portfolio of products to enable its customers to deliver optical transceivers that meet the requirements of Cloud Data Center deployments. By building a comprehensive portfolio of complementary products that enable its customers' optical transceiver applications, the company can offer high performing, cost-effective component solutions for next-generation networks. The company enables the market with a complete product portfolio of Pulse Amplitude Modulation (PAM-4) Physical Layers (PHYs), Transimpedance Amplifier (TIAs), Modulator Drivers, Lasers and Photodetectors, and, in some cases, individual component designs are optimized for use together as a chipset. To address the company's primary markets, it offers a broad range of standard and custom ICs and components. The company's product catalog consists of thousands of products, including the following key product platforms: amplifiers, ICs, diodes, switches and switch limiters, passive and active components, and multi-chip modules. Many of the company's product platforms are leveraged across multiple markets and applications. For example, the company's application expertise in power amplifier technology is leveraged across both scientific laboratory equipment applications and commercial and defense radar system applications. The company's diode technology is used in switch filter banks of military tactical radios, as well as medical imaging MRI systems. Telecom The company's expertise in system-level architectures and advanced IC design capability enables it to offer network original equipment manufacturer (OEM) customers highly integrated solutions optimized for performance and cost. The company's portfolio of opto-electronics products includes clock and data recovery, optical post amplifiers, laser and modulator drivers, transimpedance amplifiers, transmitter and receiver applications in 2.5/10/40/100/400 gigabits per second long haul, metro, data center links and FTTx fiber optic network components that enable telecommunications carriers and data centers to cost-efficiently increase their network capacity by a factor of four to ten times over earlier generation solutions. The company matches its opto-electronic components to its laser and photodetector products enabling the company's customers to buy more complete solutions for their opto-electronic systems. For optical communications applications, the company utilizes a proprietary combination of GaAs, InP, and Silicon Germanium (SiGe) technologies to obtain advantages in performance and size. For wired broadband applications, the company offers OEM customers the opportunity to streamline their supply chain through its broad catalog of active components, such as active splitters, amplifiers, multi-function ICs, and switches, as well as passive components, such as transformers, diplexers, filters, power dividers, and combiners. Wireless applications include terrestrial and space-based radio frequency, microwave and millimeter wave communication systems, also known as SATCOM. SATCOM systems can support commercial and defense applications and, in some cases, include deployment of large satellite constellations to support connectivity. The company's major product families are amplifiers, integrated ICs and modules, photodiodes and photoreceivers attenuators, laser and modulator drivers, photonic devices, bias networks, lasers predistortion linearizers, capacitors, limiters and detectors, RF over fiber products, clock and data recovery products, linear equalizers, RF power amplifiers, crosspoint switches, low noise amplifiers, SDI cable products, diodes, network connectivity solutions, space qualified modules, filters, passives, SSPA modules, frequency conversion products, phase shifters and time delay products, switches, frequency generation products, phase detectors, and transimpedance amplifiers. Sales and Marketing The company sells through its direct sales force, its application engineering staff, its global network of independent sales representatives, resellers, and distributors. The company has strategically positioned its direct sales and applications engineering staff in locations worldwide, augmented by independent sales representatives and distributors with additional domestic and foreign locations to offer responsive local support resources to its customers and to build long-term relationships. The company's application engineers visit customers at their engineering and manufacturing facilities, aid them in understanding its capabilities and collaborate with them to deliver products that can optimize their system performance. The company's global independent sales representatives and distributor network allow the company to extend its sales capabilities to new customers in new geographies more cost effectively than using its direct sales force alone. The company's products are principally sold in North America, Asia, and Europe, which is where the company concentrates its direct sales force, applications engineering staff, and independent sales representatives and distributors. The company's sales efforts focus on the needs of its customers in its three primary markets rather than on particular product lines, facilitating product cross-selling across end markets, and within key accounts. Through its website, customers can inquire about its products, request samples and access its product selection guides, detailed product brochures and data sheets, application notes, suggested design block diagrams and test fixture information, technical articles and information regarding quality and reliability. Customers The company's customer base is diversified and includes OEM customers, contract manufacturers, resellers and distributors. One of its distributors is Richardson RFPD, Inc. Seasonality The company's orders from and sales to customers in the telecommunications infrastructure and networking markets may tend to be lower in its first fiscal quarter (the year ended September 29, 2023) as compared to other quarters due to seasonal inventory management by large OEM and contract manufacturing customers. Competition The company primarily competes with Analog Devices, Inc. (ADI); Broadcom Inc. (Broadcom); Credo Technology Group Holding Ltd. (Credo); Marvell Technology Inc. (Marvell); MaxLinear Inc. (MaxLinear); Microchip Technology Incorporated (Microchip); NXP Semiconductors N.V. (NXP); Qorvo, Inc. (Qorvo); Semtech Corporation (Semtech); Skyworks Solutions, Inc. (Skyworks); and Wolfspeed, Inc. (Wolfspeed). Intellectual Property As of September 29, 2023, the company had 553 U.S. and 210 foreign issued patents and 113 U.S. and 185 foreign pending patent applications covering elements of semiconductor devices, circuit design, manufacturing and wafer fabrication. The expiration dates of the company's patents range from 2023 to 2041. Research and Development For the year ended September 29, 2023, the company's research and development expenses were $148.5 million. Environmental Regulation The company is subject to regulation by the U.S. Occupational Safety and Health Administration and similar health and safety laws in other jurisdictions. Export Regulations The company markets and sells its products both inside and outside the U.S. Certain products are subject to the Export Administration Regulations, administered by the U.S. Department of Commerce, Bureau of Industry and Security (BIS), which require that the company obtains an export license before it can export certain controlled products or technology to specified countries. Additionally, some of its products are subject to the International Traffic in Arms Regulations, which restrict the export of information and material that may be used for military or intelligence applications by a foreign person. History The company was founded in 1950. It was incorporated under the laws of the state of Delaware in 2009. The company was formerly known as M/A-Com Technology Solutions Holdings, Inc. and changed its name to MACOM Technology Solutions Holdings, Inc. in 2016.