Shares of TriQuint Semiconductor Inc. rose Tuesday after activist investor Starboard Value LP asked the chipmaker to consider restructuring or selling its mobile power amplifier business.
TriQuint, based in Hillsboro, Ore., makes products for communications, defense and aerospace companies. It reported last week that it moved to a profit for its fiscal third quarter but issued a weak fourth-quarter forecast, prompting a 14 percent drop in its stock price over a two-day period.
In a letter to TriQuint's board and CEO Tuesday, Starboard argued that the mobile power amplifier business, which manufactures devices used in cell phones and tablets, has been the primary drag on the company's performance for some time. Starboard said the strength of TriQuint's other units are worth more than reflected in its stock price.
The firm holds about 8 percent of TriQuint's outstanding shares.
A representative for Starboard did not have an immediate comment.
Shares gained 42 cents, or 5.8 percent, to $7.76 in afternoon trading. The stock closed at $8.31 Wednesday before TriQuint's third-quarter results were released.