| /x/QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED OCTOBER 2, 2010.                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                           |   |
| Or                                                                                                                                                             |
|                                                                                                                                                           |   |
| / /TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ____________.  |
|                                                                                                                                                           |   |
| Commission File No. 0-25662                                                                                                                                    |
|                                                                                                                                                           |   |
| ANADIGICS, Inc.                                                                                                                                                |
| (Exact name of registrant as specified in its charter)                                                                                                         |
|                                                                                                                                                           |   |
| Delaware                                                                                                                                                       | 22-2582106 |
| (State or other jurisdiction of incorporation or organization)                                                                                                 | (I.R.S. Employer Identification No.) |
|                                                                                                                                                           |   |
| 141 Mt. Bethel Road, Warren, New Jersey                                                                                                                        | 07059 |
| (Address of principal executive offices)                                                                                                                       | (Zip Code) |
|                                                                                                                                                           |   |
| (908) 668-5000                                                                                                                                                 |
| (Registrant's telephone number, including area code)                                                                                                           |

----

| PART I   | Financial Information                                                                                                                                   |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                    |
| Item 1.  | Financial Statements (unaudited)                                                                                                                        |
|     |                                                                                                                                                    |
|     | Condensed consolidated balance sheets – October 2, 2010 and December 31, 2009                                                                     |
|     |                                                                                                                                                    |
|     | Condensed consolidated statements of operations and comprehensive income (loss) – Three and nine months ended October 2, 2010 and October 3, 2009 |
|     |                                                                                                                                                    |
|     | Condensed consolidated statements of cash flows – Nine months ended October 2, 2010 and October 3, 2009                                           |
|     |                                                                                                                                                    |
|     | Notes to condensed consolidated financial statements – October 2, 2010                                                                            |
|     |                                                                                                                                                    |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                             |
|     |                                                                                                                                                    |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                                                                              |
|     |                                                                                                                                                    |
| Item 4.  | Controls and Procedures                                                                                                                                 |
|     |                                                                                                                                                    |
| PART II. | Other Information                                                                                                                                       |
|     |                                                                                                                                                    |
| Item 1.  | Legal Proceedings                                                                                                                                       |
|     |                                                                                                                                                    |
| Item 6.  | Exhibits                                                                                                                                                |
|     |                                                                                                                                                    |
|     | Signatures                                                                                                                                              |

----

|                                                                                                                              |   | October 2, 2010 |     |   | December 31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|----------|--------|-------------------|--------|
|                                                                                                                              |   | (Unaudited)     |     |   | (Note 1)          |   |
| ASSETS                                                                                                                            |   |            |     |   |              |   |
|                                                                                                                              |   |            |     |   |              |   |
| Current assets:                                                                                                                   |   |            |     |   |              |   |
| Cash and cash equivalents                                                                                                         |   | $               | 87,319   |   |              | $      | 83,172 |   |
| Accounts receivable, net                                                                                                          |   |            | 35,220   |   |              |   | 20,013 |   |
| Inventories                                                                                                                       |   |            | 19,840   |   |              |   | 18,250 |   |
| Prepaid expenses and other current assets                                                                                         |   |            | 4,567    |   |              |   | 2,503 |   |
| Total current assets                                                                                                              |   |            | 146,946  |   |              |   | 123,938 |   |
|                                                                                                                              |   |            |     |   |              |   |   |   |
| Marketable securities                                                                                                             |   |            | 8,661    |   |              |   | 9,354 |   |
| Plant and equipment:                                                                                                              |   |            |     |   |              |   |   |   |
| Equipment and furniture                                                                                                           |   |            | 205,822  |   |              |   | 208,735 |   |
| Leasehold improvements                                                                                                            |   |            | 45,873   |   |              |   | 44,705 |   |
| Projects in process                                                                                                               |   |            | 3,113    |   |              |   | 5,978 |   |
|                                                                                                                              |   |            | 254,808  |   |              |   | 259,418 |   |
| Less accumulated depreciation and amortization                                                                                    |   |            | (184,444 | )      |              |   | (178,534 | ) |
|                                                                                                                              |   |            | 70,364   |   |              |   | 80,884 |   |
| Other assets                                                                                                                      |   |            | 245      |   |              |   | 276 |   |
|                                                                                                                              |   |            |     |   |              |   |   |   |
| Total assets                                                                                                                      |   | $               | 226,216  |   |              | $      | 214,452 |   |
|                                                                                                                              |   |            |     |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                        |   |            |     |   |              |   |   |   |
|                                                                                                                              |   |            |     |   |              |   |   |   |
| Current liabilities:                                                                                                              |   |            |     |   |              |   |   |   |
| Accounts payable                                                                                                                  |   | $               | 15,848   |   |              | $      | 11,287 |   |
| Accrued liabilities                                                                                                               |   |            | 12,367   |   |              |   | 10,208 |   |
| Accrued restructuring costs                                                                                                       |   |            | -        |   |              |   | 55 |   |
| Total current liabilities                                                                                                         |   |            | 28,215   |   |              |   | 21,550 |   |
|                                                                                                                              |   |            |     |   |              |   |   |   |
| Other long-term liabilities                                                                                                       |   |            | 2,755    |   |              |   | 3,844 |   |
|                                                                                                                              |   |            |     |   |              |   |   |   |
| Commitments and contingencies                                                                                                     |   |            |     |   |              |   |   |   |
| Stockholders’ equity:                                                                                                       |   |            |     |   |              |   |   |   |
| Common stock, $0.01 par value, 144,000 shares authorized, 66,306 issued at October 2, 2010 and 64,517 issued at December 31, 2009 |   |            | 663      |   |              |   | 645 |   |
| Additional paid-in capital                                                                                                        |   |            | 585,182  |   |              |   | 576,975 |   |
| Accumulated deficit                                                                                                               |   |            | (393,155 | )      |              |   | (391,050 | ) |
| Accumulated other comprehensive income                                                                                            |   |            | 2,815    |   |              |   | 2,747 |   |
| Treasury stock at cost: 115 shares                                                                                                |   |            | (259     | )      |              |   | (259 | ) |
| Total stockholders’ equity                                                                                                  |   |            | 195,246  |   |              |   | 189,058 |   |
|                                                                                                                              |   |            |     |   |              |   |   |   |
| Total liabilities and stockholders’ equity                                                                                  |   | $               | 226,216  |   |              | $      | 214,452 |   |

----

|                                                                                   |   | Three months ended |   |   | Nine months ended |   |
|----------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                                   |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
|                                                                                   |   | (unaudited)        |   |   | (unaudited)       |   |   | (unaudited) |   |   | (unaudited) |   |
|                                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |
| Net sales                                                                              |   | $                  | 61,288 |   |              | $      | 36,716 |   |   | $ | 156,485 |   |   | $ | 98,674 |   |
| Cost of sales                                                                          |   |               | 39,049 |   |              |   | 32,246 |   |   |   | 102,949 |   |   |   | 90,194 |   |
| Gross profit                                                                           |   |               | 22,239 |   |              |   | 4,470 |   |   |   | 53,536 |   |   |   | 8,480 |   |
| Research and development expenses                                                      |   |               | 13,326 |   |              |   | 11,025 |   |   |   | 37,321 |   |   |   | 33,026 |   |
| Selling and administrative expenses                                                    |   |               | 7,101  |   |              |   | 6,315 |   |   |   | 20,985 |   |   |   | 20,085 |   |
| Restructuring and impairment (recovery) charges                                        |   |               | -      |   |              |   | - |   |   |   | (1,717 | ) |   |   | 2,598 |   |
|                                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                                                                |   |               | 1,812  |   |              |   | (12,870 | ) |   |   | (3,053 | ) |   |   | (47,229 | ) |
| Interest income                                                                        |   |               | 106    |   |              |   | 184 |   |   |   | 292 |   |   |   | 1,030 |   |
| Interest expense                                                                       |   |               | (34    | )      |              |   | (584 | ) |   |   | (129 | ) |   |   | (1,766 | ) |
| Other income (expense), net                                                            |   |               | 111    |   |              |   | 89 |   |   |   | 488 |   |   |   | (1,456 | ) |
|                                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                                      |   |               | 1,995  |   |              |   | (13,181 | ) |   |   | (2,402 | ) |   |   | (49,421 | ) |
| Benefit from income taxes                                                              |   |               | (297   | )      |              |   | (321 | ) |   |   | (297 | ) |   |   | (321 | ) |
| Net income (loss)                                                                      |   | $                  | 2,292  |   |              | $      | (12,860 | ) |   | $ | (2,105 | ) |   | $ | (49,100 | ) |
|                                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share                                                        |   | $                  | 0.04   |   |              | $      | (0.21 | ) |   | $ | (0.03 | ) |   | $ | (0.79 | ) |
|                                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share                                                      |   | $                  | 0.03   |   |              | $      | (0.21 | ) |   | $ | (0.03 | ) |   | $ | (0.79 | ) |
|                                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding used in computing earnings (loss) per share |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                  |   |               | 65,320 |   |              |   | 62,617 |   |   |   | 64,808 |   |   |   | 62,189 |   |
| Diluted                                                                                |   |               | 67,488 |   |              |   | 62,617 |   |   |   | 64,808 |   |   |   | 62,189 |   |

|                                                                                           |   | Three months ended |   |   | Nine months ended |   |
|------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                                           |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
|                                                                                           |   | (unaudited)        |   |   | (unaudited)       |   |   | (unaudited) |   |   | (unaudited) |   |
|                                                                                           |   |               |   |   |              |   |   |   |   |   |   |   |
| Net income (loss)                                                                              |   | $                  | 2,292  |   |              | $      | (12,860 | ) |   | $ | (2,105 | ) |   | $ | (49,100 | ) |
|                                                                                           |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss):                                                             |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized (loss) gain on marketable securities                                                |   |               | (14    | )      |              |   | 524 |   |   |   | 287 |   |   |   | 1,695 |   |
| Foreign currency translation adjustment                                                        |   |               | 19     |   |              |   | 4 |   |   |   | (35 | ) |   |   | (77 | ) |
|                                                                                           |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment:                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net recognized gain on marketable securities previously included in other comprehensive income |   |               | (15    | )      |              |   | - |   |   |   | (184 | ) |   |   | - |   |
|                                                                                           |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                    |   | $                  | 2,282  |   |              | $      | (12,332 | ) |   | $ | (2,037 | ) |   | $ | (47,482 | ) |

----

|                                                                                      |   | Nine months ended |    |
|-------------------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                                      |   | October 2, 2010   |    |   | October 3, 2009 |   |
|                                                                                      |   | (unaudited)       |    |   | (unaudited) |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                      |   |              |    |   |   |   |
| Net loss                                                                                  |   | $                 | (2,105  | ) |   | $ | (49,100 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |   |              |    |   |   |   |   |   |
| Depreciation                                                                              |   |              | 14,403  |   |   |   | 13,539 |   |
| Amortization                                                                              |   |              | -       |   |   |   | 349 |   |
| Stock based compensation                                                                  |   |              | 7,284   |   |   |   | 9,299 |   |
| Recognized marketable securities impairment, net and other                                |   |              | (379    | ) |   |   | 1,542 |   |
| Recovery on sale of China building                                                        |   |              | (1,717  | ) |   |   | - |   |
| Loss (gain) on disposal of equipment                                                      |   |              | 32      |   |   |   | (68 | ) |
| Changes in operating assets and liabilities:                                              |   |              |    |   |   |   |   |   |
| Accounts receivable                                                                       |   |              | (15,207 | ) |   |   | 2,160 |   |
| Inventories                                                                               |   |              | (1,590  | ) |   |   | 12,113 |   |
| Prepaid expenses and other assets                                                         |   |              | (2,034  | ) |   |   | (1,103 | ) |
| Accounts payable                                                                          |   |              | 4,651   |   |   |   | 107 |   |
| Accrued liabilities and other liabilities                                                 |   |              | 980     |   |   |   | (1,922 | ) |
|                                                                                      |   |              |    |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                       |   |              | 4,318   |   |   |   | (13,084 | ) |
|                                                                                      |   |              |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                      |   |              |    |   |   |   |   |   |
| Purchases of plant and equipment                                                          |   |              | (4,055  | ) |   |   | (9,519 | ) |
| Proceeds from sale of building and equipment                                              |   |              | 1,768   |   |   |   | 62 |   |
| Purchases of marketable securities                                                        |   |              | -       |   |   |   | (15,201 | ) |
| Proceeds from sale of marketable securities                                               |   |              | 1,175   |   |   |   | 29,116 |   |
|                                                                                      |   |              |    |   |   |   |   |   |
| Net cash (used in) provided by investing activities                                       |   |              | (1,112  | ) |   |   | 4,458 |   |
|                                                                                      |   |              |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                      |   |              |    |   |   |   |   |   |
| Issuance of common stock                                                                  |   |              | 941     |   |   |   | 100 |   |
| Repurchase of common stock into treasury                                                  |   |              | -       |   |   |   | (1 | ) |
|                                                                                      |   |              |    |   |   |   |   |   |
| Net cash provided by financing activities                                                 |   |              | 941     |   |   |   | 99 |   |
|                                                                                      |   |              |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                      |   |              | 4,147   |   |   |   | (8,527 | ) |
| Cash and cash equivalents at beginning of period                                          |   |              | 83,172  |   |   |   | 123,552 |   |
|                                                                                      |   |              |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                |   | $                 | 87,319  |   |   | $ | 115,025 |   |

----

|                      |   | Workforce-related |   |   | Other  |   |   | Total  |   |
|---------------------------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|
| December 31, 2008 balance |   | $                 | 1,065  |   |   | $      | 100    |   |   | $ | 1,165 |   |
| Additions                 |   |              | 2,598  |   |   |   | -      |   |   |   | 2,598 |   |
| Deductions                |   |              | (3,608 | )      |   |   | (100   | )      |   |   | (3,708 | ) |
| December 31, 2009 balance |   | $                 | 55     |   |   | $      | -      |   |   | $ | 55 |   |
| Deductions                |   |              | (55    | )      |   |   | -      |   |   |   | (55 | ) |
| October 2, 2010 balance   |   | $                 | -      |   |   | $      | -      |   |   | $ | - |   |

|                                                                   |   | Three months ended |   |   | Nine months ended |   |
|------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                   |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
| Weighted average common shares for basic earnings (loss) per share     |   |               | 65,320 |   |              |   | 62,617 |   |   |   | 64,808 |   |   |   | 62,189 |   |
|                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                                         |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Stock options (*)                                                      |   |               | 1,579  |   |              |   | - |   |   |   | - |   |   |   | - |   |
| Unvested restricted shares (*)                                         |   |               | 589    |   |              |   | - |   |   |   | - |   |   |   | - |   |
|                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted weighted average shares for diluted earnings (loss) per share |   |               | 67,488 |   |              |   | 62,617 |   |   |   | 64,808 |   |   |   | 62,189 |   |

| * | Incremental shares from restricted shares and stock options are computed using the treasury stock method. |
|---|-----------------------------------------------------------------------------------------------------------|

|                                 |   | Three months ended |   |   | Nine months ended |   |
|--------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                 |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
|                                 |   |               |   |   |              |   |   |   |   |   |   |   |
| Convertible notes                    |   |               | N/A    |   |              |   | 7,600 |   |   |   | N/A |   |   |   | 7,600 |   |
| Stock options                        |   |               | 1,760  |   |              |   | 5,389 |   |   |   | 4,640 |   |   |   | 5,389 |   |
| Unvested restricted shares and units |   |               | 160    |   |              |   | 1,809 |   |   |   | 1,811 |   |   |   | 1,809 |   |

| Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities                                                                                                                                                                                             |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                       |
| Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability |
|    |                                                                                                                                                                                                                                                                       |
| Level 3 | Unobservable inputs for the asset or liability                                                                                                                                                                                                                             |

|                                           |   |                   |   |   |       |   |   | Fair Value Measurements at Reporting Date Using               |   |
|------------------------------------------------|--------|------------------------|--------|--------|------------|--------|--------|---------------------------------------------------------------|--------|
| Security Type                                  |   | AmortizedCost Basis(1) |   |   | Fair Value |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Non-auction Corporate Debt securities (2)      |   | $                      | 1,530  |   |       | $      | 2,740  |                                                          |   | $ | 2,740 |   |   | $ | - |   |   | $ | - |   |
| Auction Rate Securities                        |   |                   |   |   |       |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Corporate Debt (2)           |   |                   | 600    |   |       |   | 1,106  |                                                          |   |   | - |   |   |   | - |   |   |   | 1,106 |   |
|    Preferred Equity             |   |                   | 3,013  |   |       |   | 3,703  |                                                          |   |   | - |   |   |   | - |   |   |   | 3,703 |   |
|    State and Municipal Debt (2) |   |                   | 1,497  |   |       |   | 1,805  |                                                          |   |   | - |   |   |   | - |   |   |   | 1,805 |   |
| Total at December 31, 2009                     |   | $                      | 6,640  |   |       | $      | 9,354  |                                                          |   | $ | 2,740 |   |   | $ | - |   |   | $ | 6,614 |   |
|                                           |   |                   |   |   |       |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-auction Corporate Debt securities (2)      |   | $                      | 1,530  |   |       | $      | 2,800  |                                                          |   | $ | 2,800 |   |   | $ | - |   |   | $ | - |   |
| Auction Rate Securities                        |   |                   |   |   |       |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Corporate Debt (2)           |   |                   | 600    |   |       |   | 1,096  |                                                          |   |   | - |   |   |   | - |   |   |   | 1,096 |   |
|    Preferred Equity             |   |                   | 2,404  |   |       |   | 2,978  |                                                          |   |   | - |   |   |   | - |   |   |   | 2,978 |   |
|    State and Municipal Debt (2) |   |                   | 1,310  |   |       |   | 1,787  |                                                          |   |   | - |   |   |   | - |   |   |   | 1,787 |   |
| Total at October 2, 2010                       |   | $                      | 5,844  |   |       | $      | 8,661  |                                                          |   | $ | 2,800 |   |   | $ | - |   |   | $ | 5,861 |   |

| (1)   | Difference between amortized cost basis and fair value represents gross unrealized gains. |
|-----------------|-------------------------------------------------------------------------------------------|

| (2)   | These available for sale debt securities have contractual maturities in excess of 10 years. |
|-----------------|---------------------------------------------------------------------------------------------|

| ($ in 000’s)                                                                                                                                                                     |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Nine months ended October 2, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                   |   | State & Municipal Debt Securities (a)                                                                |   |   | Corporate Debt Securities (b) |   |   | Preferred Equity Securities (c) |   |   | Total |   |
| Balance at January 1, 2010                                                                                                                                                             |   | $                                                                                                        | 1,805  |   |   | $ | 1,106 |   |   | $ | 3,703 |   |   | $ | 6,614 |   |
| Total gains or losses realized/unrealized                                                                                                                                              |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Included in earnings (loss)                                                                                                                                                            |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 3, 2010                                                                                                                                                          |   |                                                                                                     | 38     |   |   |   | - |   |   |   | - |   |   |   | 38 |   |
| - quarter ended July 3, 2010                                                                                                                                                           |   |                                                                                                     | 38     |   |   |   | - |   |   |   | 265 |   |   |   | 303 |   |
| - quarter ended October 2, 2010                                                                                                                                                        |   |                                                                                                     | 38     |   |   |   | - |   |   |   | - |   |   |   | 38 |   |
| Included in other comprehensive income(loss)                                                                                                                                           |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 3, 2010                                                                                                                                                          |   |                                                                                                     | 37     |   |   |   | 23 |   |   |   | 42 |   |   |   | 102 |   |
| - quarter ended July 3, 2010                                                                                                                                                           |   |                                                                                                     | 23     |   |   |   | (11 | ) |   |   | (122 | ) |   |   | (110 | ) |
| - quarter ended October 2, 2010                                                                                                                                                        |   |                                                                                                     | 108    |   |   |   | (22 | ) |   |   | (35 | ) |   |   | 51 |   |
| Purchases, redemptions, and settlements:                                                                                                                                               |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Purchases                                                                                                                                                      |   |                                                                                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Redemptions                                                                                                                                                    |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 3, 2010                                                                                                                                                          |   |                                                                                                     | (100   | ) |   |   | - |   |   |   | - |   |   |   | (100 | ) |
| - quarter ended July 3, 2010                                                                                                                                                           |   |                                                                                                     | (100   | ) |   |   | - |   |   |   | (875 | ) |   |   | (975 | ) |
| - quarter ended October 2, 2010                                                                                                                                                        |   |                                                                                                     | (100   | ) |   |   | - |   |   |   | - |   |   |   | (100 | ) |
|     Settlements                                                                                                                                                    |   |                                                                                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Transfers in and/or out of Level 3                                                                                                                                                     |   |                                                                                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Balance at October 2, 2010                                                                                                                                                             |   | $                                                                                                        | 1,787  |   |   | $ | 1,096 |   |   | $ | 2,978 |   |   | $ | 5,861 |   |
|                                                                                                                                                                                   |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amount of total gains or losses for the period included in earnings(loss) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     - as of April 3, 2010                                                                                                                                          |   |                                                                                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     - as of July 3, 2010                                                                                                                                           |   |                                                                                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     - as of October 2, 2010                                                                                                                                        |   |                                                                                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Securities held at October 2, 2010:                                                                                                                                                    |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Face value                                                                                                                                                                             |   | $                                                                                                        | 2,100  |   |   | $ | 2,500 |   |   | $ | 6,125 |   |   | $ | 10,725 |   |
| Financial ratings                                                                                                                                                                      |   |                                                                                                     | A3     |   |   |   | A |   |   | AAA to NR |   |   |   |   |   |
| Weighted average interest rate (*)                                                                                                                                                     |   |                                                                                                     | 1.09   | % |   |   | 2.12 | % |   |   | 1.73 | % |   |   | 1.70 | % |
| Maturity date                                                                                                                                                                          |   |                                                                                                     | 2045   |   |   |   | 2036 |   |   |   | N/A |   |   |   |   |   |

| ($ in 000’s)                                                                                                                                                                          |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Nine months ended October 3, 2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                        |   | State & Municipal Debt Securities (a)                                                                |   |   | Corporate Debt Securities (b) |   |   | Preferred Equity Securities (c) |   |   | Total |   |
| Balance at January 1, 2009                                                                                                                                                                  |   | $                                                                                                        | 1,947  |   |   | $ | 662 |   |   | $ | 4,340 |   |   | $ | 6,949 |   |
| Total gains or losses realized/unrealized                                                                                                                                                   |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Included in (loss) earnings                                                                                                                                                                 |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 4, 2009                                                                                                                                                               |   |                                                                                                     | (325   | ) |   |   | (62 | ) |   |   | (824 | ) |   |   | (1,211 | ) |
| - quarter ended July 4, 2009                                                                                                                                                                |   |                                                                                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| - quarter ended October 3, 2009                                                                                                                                                             |   |                                                                                                     | 38     |   |   |   | - |   |   |   | (3 | ) |   |   | 35 |   |
| Included in other comprehensive (loss) income                                                                                                                                               |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 4, 2009                                                                                                                                                               |   |                                                                                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| - quarter ended July 4, 2009                                                                                                                                                                |   |                                                                                                     | 47     |   |   |   | 212 |   |   |   | 321 |   |   |   | 580 |   |
| - quarter ended October 3, 2009                                                                                                                                                             |   |                                                                                                     | 172    |   |   |   | 121 |   |   |   | 14 |   |   |   | 307 |   |
| Purchases, redemptions, and settlements quarter ended October 3, 2009                                                                                                                       |   |                                                                                                     | (100   | ) |   |   | - |   |   |   | (500 | ) |   |   | (600 | ) |
| Transfers in and/or out of Level 3                                                                                                                                                          |   |                                                                                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Balance at October 3, 2009                                                                                                                                                                  |   | $                                                                                                        | 1,779  |   |   | $ | 933 |   |   | $ | 3,348 |   |   | $ | 6,060 |   |
| The amount of total gains or losses for the period included in (loss) earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     - as of April 4, 2009                                                                                                                                               |   | $                                                                                                        | (325   | ) |   | $ | (62 | ) |   | $ | (824 | ) |   | $ | (1,211 | ) |
|     - as of July 4, 2009                                                                                                                                                |   | $                                                                                                        | (325   | ) |   | $ | (62 | ) |   | $ | (824 | ) |   | $ | (1,211 | ) |
|     - as of October 3, 2009                                                                                                                                             |   | $                                                                                                        | (312   | ) |   | $ | (62 | ) |   | $ | (892 | ) |   | $ | (1,266 | ) |

|            |   | October 2, 2010 |    |   | December 31, 2009 |   |
|-----------------|--------|-----------------|---------|--------|-------------------|--------|
|            |   |            |    |   |              |   |
| Raw materials   |   | $               | 6,491   |   |              | $      | 6,582 |   |
| Work in process |   |            | 15,497  |   |              |   | 9,845 |   |
| Finished goods  |   |            | 8,451   |   |              |   | 11,702 |   |
|            |   |            | 30,439  |   |              |   | 28,129 |   |
| Reserves        |   |            | (10,599 | )      |              |   | (9,879 | ) |
|            |   |            |    |   |              |   |   |   |
| Total           |   | $               | 19,840  |   |              | $      | 18,250 |   |

| §   | The 1995 Long-Term Incentive and Share Award Plan for Officers and Directors (terminated February 28, 2005)  (1995 Plan); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| §   | The 1997 Long Term Incentive and Share Award Plan (1997 Plan); |
|--------------------|----------------------------------------------------------------|

| §   | The 2005 Long Term Incentive and Share Award Plan (2005 Plan, collectively with the 1995 Plan and the 1997 Plan, the Plans); and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| §   | The Employee Stock Purchase Plan (ESP Plan). |
|--------------------|----------------------------------------------|

|                                |   | Three months ended |   |   | Nine months ended |   |
|-------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
|                                |   |               |   |   |              |   |   |   |   |   |   |   |
| Amortization of restricted stock    |   | $                  | 1,948  |   |              | $      | 1,866 |   |   | $ | 5,609 |   |   | $ | 6,156 |   |
| Amortization of ESP Plan            |   |               | 200    |   |              |   | 60 |   |   |   | 600 |   |   |   | 460 |   |
| Amortization of stock option awards |   |               | 275    |   |              |   | 986 |   |   |   | 1,075 |   |   |   | 2,683 |   |
| Total stock based compensation      |   | $                  | 2,423  |   |              | $      | 2,912 |   |   | $ | 7,284 |   |   | $ | 9,299 |   |
|                                |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| By Financial Statement line item    |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                       |   | $                  | 590    |   |              | $      | 601 |   |   | $ | 1,752 |   |   | $ | 1,943 |   |
| Research and development expenses   |   |               | 879    |   |              |   | 1,167 |   |   |   | 2,562 |   |   |   | 3,715 |   |
| Selling and administrative expenses |   |               | 954    |   |              |   | 1,144 |   |   |   | 2,970 |   |   |   | 3,832 |   |
| Restructuring charge                |   |               | -      |   |              |   | - |   |   |   | - |   |   |   | (191 | ) |

|                            |   | Restricted Stock Shares |   |   | Restricted Stock Units |   |   | Stock Options |   |
|---------------------------------|--------|-------------------------|--------|--------|------------------------|--------|--------|---------------|--------|
|                            |   | Shares                  |   |   | WA price/ share        |   |   | Units         |   |   | WA price/ unit |   |   | Issuable upon exercise |   |   | WA exercise price |   |
|                            |   |                    |   |   |                   |   |   |          |   |   |   |   |   |   |   |   |   |   |
| Outstanding at January 1, 2009  |   |                    | 1,974  |   |                   | $      | 9.27   |          |   |   | 611 |   |   | $ | 4.94 |   |   |   | 2,819 |   |   | $ | 10.00 |   |
| Granted                         |   |                    | -      |   |                   |   | -      |          |   |   | 873 |   |   |   | 3.22 |   |   |   | 3,245 |   |   |   | 2.04 |   |
| Shares vested/options exercised |   |                    | (1,195 | )      |                   |   | 8.66   |          |   |   | (587 | ) |   |   | 4.71 |   |   |   | (49 | ) |   |   | 2.06 |   |
| Forfeited/expired               |   |                    | (141   | )      |                   |   | 11.52  |          |   |   | (69 | ) |   |   | 4.01 |   |   |   | (708 | ) |   |   | 9.18 |   |
| Balance at December 31, 2009    |   |                    | 638    |   |                   | $      | 9.90   |          |   |   | 828 |   |   | $ | 3.36 |   |   |   | 5,307 |   |   | $ | 5.32 |   |
| Granted                         |   |                    | -      |   |                   |   | -      |          |   |   | 2,006 |   |   |   | 4.32 |   |   |   | 98 |   |   |   | 4.79 |   |
| Shares vested/options exercised |   |                    | (273   | )      |                   |   | 9.61   |          |   |   | (1,337 | ) |   |   | 3.56 |   |   |   | (479 | ) |   |   | 1.97 |   |
| Forfeited/expired               |   |                    | (22    | )      |                   |   | 8.55   |          |   |   | (29 | ) |   |   | 4.11 |   |   |   | (286 | ) |   |   | 12.35 |   |
| Balance at October 2, 2010      |   |                    | 343    |   |                   | $      | 10.21  |          |   |   | 1,468 |   |   | $ | 4.48 |   |   |   | 4,640 |   |   | $ | 5.22 |   |

|                                          |   | As of October 2, 2010 |   |
|-----------------------------------------------|--------|-----------------------|--------|
|                                          |   |                  |   |
| Unrecognized stock based compensation cost    |   |                  |   |
| Option plans                                  |   | $                     | 1,608  |   |
| Restricted stock                              |   | $                     | 5,474  |   |
| Weighted average remaining recognition period |   |                  |   |   |
| Option plans                                  |   | 1.4 years             |   |
| Restricted stock                              |   | 1.7 years             |   |

| Range of exercise prices |          |   | Outstanding Options at October 2, 2010 |   |   | Weighted average remaining contractual life |   |   | Weighted average exercise price |   |   | Exercisable at October 2, 2010 |   |   | Weighted average exercise price |   |
|--------------------------|---------------|--------|----------------------------------------|--------|--------|---------------------------------------------|--------|--------|---------------------------------|--------|--------|--------------------------------|--------|--------|---------------------------------|--------|
|                     |          |   |                                   |   |   |                                        |   |   |                            |   |   |                           |   |   |                            |   |
| $                        | 1.39 - $1.93  |   |                                   |   | 1,204  |                                        |   |   | 8.3                             |   |   | $                              | 1.93   |   |                            |   | 648 |   |   | $ | 1.93 |   |
| $                        | 2.03 - $4.36  |   |                                   |   | 1,676  |                                        |   |   | 7.3                             |   |   | $                              | 2.37   |   |                            |   | 981 |   |   | $ | 2.37 |   |
| $                        | 4.84 - $8.84  |   |                                   |   | 1,174  |                                        |   |   | 4.9                             |   |   | $                              | 8.01   |   |                            |   | 1,118 |   |   | $ | 8.15 |   |
| $                        | 9.00 - $18.98 |   |                                   |   | 586    |                                        |   |   | 1.5                             |   |   | $                              | 14.56  |   |                            |   | 586 |   |   | $ | 14.56 |   |

|                                           |   | Nine months ended |   |
|------------------------------------------------|--------|-------------------|--------|
|                                           |   | October 2, 2010   |   |   | October 3, 2009 |   |
| Stock option awards:                           |   |              |   |   |   |   |
| Risk-free interest rate                        |   |              | 2.6    | % |   |   | 1.6 | % |
| Expected volatility                            |   |              | 85     | % |   |   | 99 | % |
| Average expected term (in years)               |   |              | 5.0    |   |   |   | 5.0 |   |
| Expected dividend yield                        |   |              | 0.0    | % |   |   | 0.0 | % |
| Weighted average fair value of options granted |   | $                 | 3.26   |   |   | $ | 1.51 |   |
|                                           |   |              |   |   |   |   |   |   |
| ESP Plan:                                      |   |              |   |   |   |   |   |   |
| Risk-free interest rate                        |   |              | 0.3    | % |   |   | 0.4 | % |
| Expected volatility                            |   |              | 61     | % |   |   | 96 | % |
| Average expected term (in years)               |   |              | 1.0    |   |   |   | 1.0 |   |
| Expected dividend yield                        |   |              | 0.0    | % |   |   | 0.0 | % |
| Weighted average fair value of purchase option |   | $                 | 1.44   |   |   | $ | 0.72 |   |

----

|                                            |   | Three months ended |   |   | Nine months ended |   |
|-------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                            |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
|                                            |   |               |   |   |              |   |   |   |   |   |   |   |
| Net sales                                       |   |               | 100.0  | %      |              |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost of sales                                   |   |               | 63.7   | %      |              |   | 87.8 | % |   |   | 65.8 | % |   |   | 91.4 | % |
|                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin                                    |   |               | 36.3   | %      |              |   | 12.2 | % |   |   | 34.2 | % |   |   | 8.6 | % |
| Research and development expenses               |   |               | 21.7   | %      |              |   | 30.0 | % |   |   | 23.8 | % |   |   | 33.5 | % |
| Selling and administrative expenses             |   |               | 11.6   | %      |              |   | 17.2 | % |   |   | 13.4 | % |   |   | 20.4 | % |
| Restructuring and impairment (recovery) charges |   |               | -      |   |              |   | - |   |   |   | (1.1 | )% |   |   | 2.6 | % |
|                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                         |   |               | 3.0    | %      |              |   | (35.0 | )% |   |   | (1.9 | )% |   |   | (47.9 | )% |
| Interest income                                 |   |               | 0.2    | %      |              |   | 0.5 | % |   |   | 0.2 | % |   |   | 1.0 | % |
| Interest expense                                |   |               | (0.1   | )%     |              |   | (1.6 | )% |   |   | (0.1 | )% |   |   | (1.8 | )% |
| Other income (expense), net                     |   |               | 0.2    | %      |              |   | 0.2 | % |   |   | 0.3 | % |   |   | (1.4 | )% |
|                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes               |   |               | 3.3    | %      |              |   | (35.9 | )% |   |   | (1.5 | )% |   |   | (50.1 | )% |
| Benefit from income taxes                       |   |               | (0.4   | )%     |              |   | (0.9 | )% |   |   | (0.2 | )% |   |   | (0.3 | )% |
| Net income (loss)                               |   |               | 3.7    | %      |              |   | (35.0 | )% |   |   | (1.3 | )% |   |   | (49.8 | )% |

----

|   | 31.2 Rule 13a-14(a)/15d-14(a) Certification of Thomas C. Shields, Executive Vice President and Chief Financial Officer of ANADIGICS, Inc. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 Section 1350 Certification of Mario A. Rivas, President and Chief Executive Officer of ANADIGICS, Inc. |
|--------|-------------------------------------------------------------------------------------------------------------|

|   | 32.2 Section 1350 Certification of Thomas C. Shields, Executive Vice President and Chief Financial Officer of ANADIGICS, Inc. |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

----

| By:    | /s/ Thomas C. Shields                                |
|--------|------------------------------------------------------|
|   | Thomas C. Shields                                    |
|   | Executive Vice President and Chief Financial Officer |