GigaBit Logic and TriQuint Semiconductor have signed a letter of intent that will allow the two companies to be merged into one corporation. The new company will be jointly owned by the existing investors, which include Tektronix – TriQuint’s previous sole owner, DEC, Analog Devices and NKT of Denmark. The two claim that the merger will result in the world’s largest merchant market producer of high-performance gallium arsenide (GaAs) integrated circuits with combined revenues of more than twice its nearest competitor. The name of the new company will be TriQuint Semiconductor Inc. A distinct digital product line, which will include digital standard products and ASICs will be marketed under the GigaBit Logic name. A five-member board of directors will control the new company. Until the definitive agreement is signed, and conditions for the merger are met, the companies will continue to operate independently. The merger is expected to be completed by the end of the first quarter of 1991. To stop customer panic the existing wafer fab and assembly-test factory operations of both companies will remain operational. TriQuint will be headquartered in Newbury Park, California.
