Tuesday, April 15, 2008

Kopin extends supplier deal with Skyworks

Electronics component maker Kopin Corp. and Woburn-based wireless semiconductor and circuit maker Skyworks Solutions Inc. have extended their purchase and supply agreement through 2010.

Under the agreement, Kopin (Nasdaq: KOPN) will provide all 4-inch-diameter and the vast majority of 6-inch-diameter heterojunction bipolar transistor (HBT) wafer requirements of Skyworks (Nasdaq: SWKS) through July 2010. Financial terms of the deal were not provided.

Taunton-based Kopin has shipped more than 900,000 HBT wafers worldwide, according to company statements. The products for Skyworks will be manufactured at the company's two plants in Massachusetts, according to a company statement, though the firm's Taiwan-based affiliate, KTC, has been qualified to supply products as well.

HBTs are the core of circuits designed to handle high-frequency signals, generally used in radio frequency applications such as cell phones.

Skyworks makes components for wireless cell phones and devices, such as femtocells. The company counts Sony Ericsson Mobile Communication AB, Motorola Inc., and Samsung as its three largest customers, and its products have rumored to be in the Apple iPhone, though executives have not confirmed that.

Skyworks and Kopin have been working closely for several years.

In 2007, Kopin reported a $6.6 million net loss on $98 million in revenue, while Skyworks reported $742 million in revenue last year. Skyworks' revenue fell $32 million from 2006, but the company turned an $88 million loss in 2006 into a $57.6 million net profit in 2007.