Radio chip expert TriQuint Semiconductor
TriQuint reported third-quarter sales of $237 million and non-GAAP earnings of $0.27 per share. That's 37% revenue growth and 170% stronger earnings year over year, easily surpassing major rival RF Micro Devices
But like I said, things could have been even better. TriQuint told analysts on the earnings call that it had to direct some of its customers elsewhere when they came around to order smartphone parts -- TriQuint's internal manufacturing lines simply couldn't churn out enough chips to keep everyone happy. To remedy this problem, the company is stepping up its capital investments from $31.7 million in the third quarter to about $40 million - $50 million in the fourth. There's a new production line under construction in Texas, scheduled to come online in mid-2011. These things don't happen overnight, giving the competition another quarter or two of opportunity to steal what would otherwise be TriQuint's business.
These chips are common in Apple