On Jan 17, 2014, we have reaffirmed our long-term Neutral
TriQuint Semiconductor, Inc.
TriQuint is one of the leading players in the handset market,
and new users and applications are further creating a lucrative
growth opportunity for it. TriQuint has restructured its
factories and also aligned its mobile product strategy around
premium filters, high-efficiency amplifiers and densely
integrated solutions. However, increased competitive pressure is
likely to impact its long-term profitability to some extent and
forces us to be on the sidelines.
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TriQuint is an original equipment manufacturer (OEM) of
semiconductor communication integrated circuits (ICs). The
company's wireless handset segment contains a broad product
offering of radio frequency (RF) devices used in the
front-end portion of wireless handsets, such as receivers,
switches, power amplifiers and surface acoustic wave (SAW)
The RF industry is currently faced with rapidly rising demand
with 3G content expansion, healthy smartphone unit growth and a
rebound in infrastructure market. RF content is also increasing
with new standards that provide greater bandwidth, higher data
rates and a better quality of service.
Management believes that the overall market will grow
significantly over the next several years as 3G penetration
levels increase and multiple bands of 4G drive a new wave of
revenue opportunities for both power amplifiers and
However, increased competition is exerting pricing pressure on
margins, which remain a matter of concern as the company plans to
expand the existing manufacturing capacity to support higher
revenue levels. This is likely to affect its bottom-line growth
in the short term.
Other Stocks to Consider
TriQuint currently has a Zacks Rank #4 (Sell). Other
better-ranked stocks in the industry include
Marvell Technology Group Ltd
) carrying a Zacks Rank #1 (Strong Buy) and
Amtech Systems Inc
), carrying a Zacks Rank #2 (Buy).