Macom, Goertek for joint venture for 5G buildout in China
MACOM announced that it has entered into an agreement to establish a joint venture company with Goertek. The joint venture company will be based in Hong Kong and will supply, market and distribute GaN-on-Si based RF Power components into China's basestation market. Goertek will provide total consideration to MACOM of up to $134.6M, including $30M up front. MACOM will further be entitled to royalties and dividend preferences in the joint venture. Goertek and MACOM will each contribute $25M in working capital to the joint venture. MACOM retains rights to sell GaN-on-Si products outside of China, Hong Kong and Macau. The transaction is subject to certain closing conditions, including receipt of approval from China's State Administration for Market Regulation, and is expected to close in the second half of the calendar year.