January 14, 2003 - SiGe Semiconductor, a supplier of analog integrated circuits for high-speed optical systems, wireless access, and cable telephony, today announced it has raised $42.8 million in Series B funding. The investment is the third highest round of financing closed by a fabless semiconductor company during the last year, according to the Fabless Semiconductor Association. The funds will support new product developments, as well as operations through to a cash flow positive position.
The lead investor was Boston-based TD Capital Technology Ventures, joined by new United States investors 3i US and Prism Venture Partners, along with returning investors VenGrowth Capital Partners Inc., CDP Capital, Business Development Bank of Canada (BDC), Capital Alliance Ventures, and Canadian Science & Technology Growth Fund.
"We are proud of our continued successes in light of current market conditions," said Jim Derbyshire, president and chief executive officer, SiGe Semiconductor(Ottawa). "We've followed the right strategy in diversifying our product lines into markets where our core technology - silicon germanium - provides significant advantages. This has both protected our company from the downturn, and fueled our growth, giving investors an overwhelming confidence in our ability to achieve our vision."
SiGe Semiconductor's integrated circuits are designed using silicon germanium technology that improves performance, battery life and size of a wide range of wireless and broadband products, including: Bluetooth -enabled portable devices, WLAN access points, high-speed optical interfaces, global positioning by satellite systems, cordless telephones, and 2G, 2.5G and 3G cellular handsets.
"SiGe Semiconductor is a very exciting company with a clear vision, and the business acumen to achieve it," said Paul Ciriello, managing director, TD Capital Technology Ventures. "TD Capital made this investment because of SiGe's valuable and sustainable technology assets, and its strong and experienced management team."
New members of SiGe's board of directors with this round of funding include Paul Ciriello, TD Capital Technology Ventures; Mikko Suonenlahti, 3i US; and Robert Fleming, Prism Venture Partners. They will join existing members Patrick DiPietro, VenGrowth Capital Partners Inc.; Denis Colbourne, former head of Nortel Semiconductor; Doug Smeaton, Semiconductor Insights and Jim Derbyshire, SiGe Semiconductor. John Millard, former CEO of Mitel Corporation, and René Séguin, BDC will retire from SiGe's board.
The funding reflects SiGe Semiconductor's success during the last two years, during which the company increased product revenues, extended support and distribution channels, brought their sixteenth product to market, and established new facilities in Hong Kong, San Diego, Boston, and London, UK. SiGe Semiconductor has delivered over five million integrated circuits to a world-class customer base that includes Alps, Arris, Bromax, Gemtek, LG Innotek, Micro-Star, Microtune, Photon, Samsung Electro-Mechanics, and Stratos Lightwave.