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GREENSBORO — Microchip maker RF Micro Devices is unleashing a billion-dollar wave of change that will make it the world's largest radio frequency chip producer and could bring 300 new jobs to Greensboro.

RF said Monday that it will buy Sirenza Microdevices of Broomfield, Colo., for stock and cash worth $900 million. Sirenza, a smaller company, makes chips that are sold to a variety of users, compared with RF's tighter focus on the wireless telephone industry.

And, in an unrelated move, RF has also asked the City Council to hear a request on Aug. 21 for $1.2 million in economic development incentives for a $103 million microchip wafer factory here that would employ 300 workers.

RF employs about 2,000 people locally and more than 1,200 others around the world.

Dan Lynch, president of the Greensboro Economic Development Alliance, said the company also intends to ask Guilford County for an unspecified amount.

Greensboro is competing with other locations for the new factory, said Jerry Neal, RF's executive vice president of marketing and strategic development.

"That is a highly sought-after facility," Neal said from San Francisco, where he is traveling to visit other sites. He declined to say where the sites are. He said planning for the factory has been under way for some time.

The new plant means RF Micro is planning to sell more chips for its current businesses in wireless handsets, wireless data transmission and GPS, Neal said. And the merger is a sign that the company wants to find growth in other areas, such as broadband data transmission and even defense and aerospace, areas where Sirenza is experienced.

"It's going to enhance the company's ability to grow overall," Neal said.

A telecommunications analyst says RF Micro had to buy a company such as Sirenza to protect itself as sales of wireless handsets slow globally.

"RFMD has to expand and diversify beyond the handset markets. From that perspective it really was necessary," said Tero Kuittinen, a RealMoney.com contributor.

RF's request for incentives for the $103 million expansion would be its fifth request locally. In its last expansion, RF Micro pledged last year to spend $80 million on machinery, equipment and building improvements in Greensboro — in addition to creating 300 jobs that pay an average of $52,000 a year.

Jobs in the current expansion are also expected to pay nearly $55,000 in salary and benefits.

Neal said it's unclear whether the community will gain jobs from the Sirenza purchase, other than the fact that its chief executive officer plans to move to Greensboro.

RF's success sends a signal to other companies outside Greensboro, Lynch said.

"That clearly sends a message to the marketplace that we have the employees with the skill sets necessary for those companies to be successful," he said.

The acquisition calls for RF to pay $5.56 in cash and 1.78 RF Micro shares for each share of Sirenza.

That would be a share price of $16.64, or a 17 percent premium over Sirenza's price at Friday's close.

RF shareholders will own 67 percent of the new company, and Sirenza will own 33 percent.

It's expected to be wrapped up by December.

The buyout of Sirenza will boost total revenues at RF Micro to $1.159 billion. Its nearest competitor has $749 million in revenue.

At the close of trading, RF's shares were down by 2.25 percent at $6.07.

Contact Richard M. Barron at 373-7371 or dbarron@news-record.com