| /x/QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JULY 2, 2011.                        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                           |   |
| 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)                                                                                                           |

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| PART I   | Financial Information                                                                                                                            |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                             |
| Item 1.  | Financial Statements (unaudited)                                                                                                                 |
|     |                                                                                                                                             |
|     | Condensed consolidated balance sheets – July 2, 2011 and December 31, 2010                                                                 |
|     |                                                                                                                                             |
|     | Condensed consolidated statements of operations and comprehensive (loss) income – Three and six months ended July 2, 2011 and July 3, 2010 |
|     |                                                                                                                                             |
|     | Condensed consolidated statements of cash flows – Six months ended July 2, 2011 and July 3, 2010                                           |
|     |                                                                                                                                             |
|     | Notes to condensed consolidated financial statements – July 2, 2011                                                                        |
|     |                                                                                                                                             |
| 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 5.  | Other Information                                                                                                                                |
|     |                                                                                                                                             |
| Item 6.  | Exhibits                                                                                                                                         |
|     |                                                                                                                                             |
|     | Signatures                                                                                                                                       |

----

|                                                                                                                           |   | July 2, 2011 |     |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|--------|-------------------|--------|
|                                                                                                                           |   | (Unaudited)  |     |   | (Note 1)          |   |
| ASSETS                                                                                                                         |   |         |     |   |              |   |
|                                                                                                                           |   |         |     |   |              |   |
| Current assets:                                                                                                                |   |         |     |   |              |   |
| Cash and cash equivalents                                                                                                      |   | $            | 77,422   |   |              | $      | 97,129 |   |
| Short-term marketable securities                                                                                               |   |         | 11,174   |   |              |   | - |   |
| Accounts receivable, net                                                                                                       |   |         | 16,905   |   |              |   | 35,299 |   |
| Inventories                                                                                                                    |   |         | 21,265   |   |              |   | 20,734 |   |
| Prepaid expenses and other current assets                                                                                      |   |         | 4,896    |   |              |   | 3,319 |   |
| Total current assets                                                                                                           |   |         | 131,662  |   |              |   | 156,481 |   |
|                                                                                                                           |   |         |     |   |              |   |   |   |
| Marketable securities                                                                                                          |   |         | 14,848   |   |              |   | 8,964 |   |
| Plant and equipment:                                                                                                           |   |         |     |   |              |   |   |   |
| Equipment and furniture                                                                                                        |   |         | 208,227  |   |              |   | 205,493 |   |
| Leasehold improvements                                                                                                         |   |         | 46,483   |   |              |   | 46,482 |   |
| Projects in process                                                                                                            |   |         | 2,211    |   |              |   | 3,693 |   |
|                                                                                                                           |   |         | 256,921  |   |              |   | 255,668 |   |
| Less accumulated depreciation and amortization                                                                                 |   |         | (196,569 | )      |              |   | (187,549 | ) |
|                                                                                                                           |   |         | 60,352   |   |              |   | 68,119 |   |
| Other assets                                                                                                                   |   |         | 240      |   |              |   | 248 |   |
|                                                                                                                           |   |         |     |   |              |   |   |   |
| Total assets                                                                                                                   |   | $            | 207,102  |   |              | $      | 233,812 |   |
|                                                                                                                           |   |         |     |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                     |   |         |     |   |              |   |   |   |
|                                                                                                                           |   |         |     |   |              |   |   |   |
| Current liabilities:                                                                                                           |   |         |     |   |              |   |   |   |
| Accounts payable                                                                                                               |   | $            | 11,098   |   |              | $      | 17,968 |   |
| Accrued liabilities                                                                                                            |   |         | 6,956    |   |              |   | 10,191 |   |
| Accrued restructuring costs                                                                                                    |   |         | 186      |   |              |   | - |   |
| Total current liabilities                                                                                                      |   |         | 18,240   |   |              |   | 28,159 |   |
|                                                                                                                           |   |         |     |   |              |   |   |   |
| Other long-term liabilities                                                                                                    |   |         | 2,557    |   |              |   | 2,689 |   |
|                                                                                                                           |   |         |     |   |              |   |   |   |
| Commitments and contingencies                                                                                                  |   |         |     |   |              |   |   |   |
| Stockholders’ equity:                                                                                                    |   |         |     |   |              |   |   |   |
| Common stock, $0.01 par value, 144,000 shares authorized, 67,928 issued at July 2, 2011 and 66,916 issued at December 31, 2010 |   |         | 679      |   |              |   | 669 |   |
| Additional paid-in capital                                                                                                     |   |         | 595,875  |   |              |   | 589,562 |   |
| Accumulated deficit                                                                                                            |   |         | (413,518 | )      |              |   | (389,790 | ) |
| Accumulated other comprehensive income                                                                                         |   |         | 3,528    |   |              |   | 2,782 |   |
| Treasury stock at cost: 115 shares                                                                                             |   |         | (259     | )      |              |   | (259 | ) |
| Total stockholders’ equity                                                                                               |   |         | 186,305  |   |              |   | 202,964 |   |
|                                                                                                                           |   |         |     |   |              |   |   |   |
| Total liabilities and stockholders’ equity                                                                               |   | $            | 207,102  |   |              | $      | 233,812 |   |

|   | See accompanying notes. |
|--------|-------------------------|

----

|                                                                                   |   | Three months ended |    |   | Six months ended |   |
|----------------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                                                   |   | July 2, 2011       |    |   | July 3, 2010     |   |   | July 2, 2011 |   |   | July 3, 2010 |   |
|                                                                                   |   | (unaudited)        |    |   | (unaudited)      |   |   | (unaudited) |   |   | (unaudited) |   |
|                                                                                   |   |               |    |   |             |   |   |   |   |   |   |   |
| Net sales                                                                              |   | $                  | 35,583  |   |             | $      | 51,666 |   |   | $ | 79,046 |   |   | $ | 95,197 |   |
| Cost of sales                                                                          |   |               | 29,044  |   |             |   | 33,853 |   |   |   | 60,347 |   |   |   | 63,900 |   |
| Gross profit                                                                           |   |               | 6,539   |   |             |   | 17,813 |   |   |   | 18,699 |   |   |   | 31,297 |   |
| Research and development expenses                                                      |   |               | 11,340  |   |             |   | 12,214 |   |   |   | 24,913 |   |   |   | 23,995 |   |
| Selling and administrative expenses                                                    |   |               | 7,329   |   |             |   | 6,892 |   |   |   | 16,765 |   |   |   | 13,884 |   |
| Restructuring and impairment (recovery) charges                                        |   |               | 1,047   |   |             |   | (1,717 | ) |   |   | 1,047 |   |   |   | (1,717 | ) |
|                                                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Operating (loss) income                                                                |   |               | (13,177 | )      |             |   | 424 |   |   |   | (24,026 | ) |   |   | (4,865 | ) |
| Interest income                                                                        |   |               | 131     |   |             |   | 93 |   |   |   | 272 |   |   |   | 186 |   |
| Interest expense                                                                       |   |               | (8      | )      |             |   | (43 | ) |   |   | (25 | ) |   |   | (95 | ) |
| Other income, net                                                                      |   |               | -       |   |             |   | 317 |   |   |   | 51 |   |   |   | 377 |   |
|                                                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                      |   | $                  | (13,054 | )      |             | $      | 791 |   |   | $ | (23,728 | ) |   | $ | (4,397 | ) |
|                                                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic (loss) earnings per share                                                        |   | $                  | (0.19   | )      |             | $      | 0.01 |   |   | $ | (0.35 | ) |   | $ | (0.07 | ) |
|                                                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Diluted (loss) earnings per share                                                      |   | $                  | (0.19   | )      |             | $      | 0.01 |   |   | $ | (0.35 | ) |   | $ | (0.07 | ) |
|                                                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding used in computing (loss) earnings per share |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                  |   |               | 67,616  |   |             |   | 64,902 |   |   |   | 67,327 |   |   |   | 64,553 |   |
| Diluted                                                                                |   |               | 67,616  |   |             |   | 67,106 |   |   |   | 67,327 |   |   |   | 64,553 |   |

|                                                                                           |   | Three months ended |    |   | Six months ended |   |
|------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                                                           |   | July 2, 2011       |    |   | July 3, 2010     |   |   | July 2, 2011 |   |   | July 3, 2010 |   |
|                                                                                           |   | (unaudited)        |    |   | (unaudited)      |   |   | (unaudited) |   |   | (unaudited) |   |
|                                                                                           |   |               |    |   |             |   |   |   |   |   |   |   |
| Net (loss) income                                                                              |   | $                  | (13,054 | )      |             | $      | 791 |   |   | $ | (23,728 | ) |   | $ | (4,397 | ) |
|                                                                                           |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income:                                                                    |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss) on marketable securities                                                |   |               | 291     |   |             |   | (101 | ) |   |   | 845 |   |   |   | 301 |   |
| Foreign currency translation adjustment                                                        |   |               | (8      | )      |             |   | (31 | ) |   |   | 7 |   |   |   | (54 | ) |
|                                                                                           |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment:                                                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net recognized gain on marketable securities previously included in other comprehensive income |   |               | (46     | )      |             |   | (169 | ) |   |   | (106 | ) |   |   | (169 | ) |
|                                                                                           |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive (loss) income                                                                    |   | $                  | (12,817 | )      |             | $      | 490 |   |   | $ | (22,982 | ) |   | $ | (4,319 | ) |

----

|                                                                        |   | Six months ended |    |
|-----------------------------------------------------------------------------|--------|------------------|---------|
|                                                                        |   | July 2, 2011     |    |   | July 3, 2010 |   |
|                                                                        |   | (unaudited)      |    |   | (unaudited) |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                        |   |             |    |   |   |   |
| Net loss                                                                    |   | $                | (23,728 | ) |   | $ | (4,397 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |             |    |   |   |   |   |   |
| Depreciation                                                                |   |             | 9,469   |   |   |   | 9,267 |   |
| Stock based compensation                                                    |   |             | 6,066   |   |   |   | 4,861 |   |
| Marketable securities recovery, accretion and other                         |   |             | (116    | ) |   |   | (341 | ) |
| Recovery on sale of China building                                          |   |             | -       |   |   |   | (1,717 | ) |
| (Gain) loss on disposal of equipment                                        |   |             | (16     | ) |   |   | 30 |   |
| Changes in operating assets and liabilities:                                |   |             |    |   |   |   |   |   |
| Accounts receivable                                                         |   |             | 18,394  |   |   |   | (9,701 | ) |
| Inventories                                                                 |   |             | (531    | ) |   |   | (1,558 | ) |
| Prepaid expenses and other assets                                           |   |             | (1,569  | ) |   |   | (1,164 | ) |
| Accounts payable                                                            |   |             | (5,895  | ) |   |   | 4,001 |   |
| Accrued liabilities and other liabilities                                   |   |             | (3,192  | ) |   |   | 34 |   |
|                                                                        |   |             |    |   |   |   |   |   |
| Net cash used in operating activities                                       |   |             | (1,118  | ) |   |   | (685 | ) |
|                                                                        |   |             |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                        |   |             |    |   |   |   |   |   |
| Purchases of plant and equipment                                            |   |             | (2,643  | ) |   |   | (2,642 | ) |
| Proceeds from sale of building and equipment                                |   |             | -       |   |   |   | 1,757 |   |
| Purchases of marketable securities                                          |   |             | (16,303 | ) |   |   | - |   |
| Proceeds from sales and redemptions of marketable securities                |   |             | 100     |   |   |   | 1,075 |   |
|                                                                        |   |             |    |   |   |   |   |   |
| Net cash (used in) provided by investing activities                         |   |             | (18,846 | ) |   |   | 190 |   |
|                                                                        |   |             |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                        |   |             |    |   |   |   |   |   |
| Issuance of common stock                                                    |   |             | 257     |   |   |   | 368 |   |
|                                                                        |   |             |    |   |   |   |   |   |
| Net cash provided by financing activities                                   |   |             | 257     |   |   |   | 368 |   |
|                                                                        |   |             |    |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                   |   |             | (19,707 | ) |   |   | (127 | ) |
| Cash and cash equivalents at beginning of period                            |   |             | 97,129  |   |   |   | 83,172 |   |
|                                                                        |   |             |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                  |   | $                | 77,422  |   |   | $ | 83,045 |   |

----

|                                    |   | Six months ended |   |
|-----------------------------------------|--------|------------------|--------|
|                                    |   | July 2, 2011     |   |   | July 3, 2010 |   |
|                                    |   |             |   |   |   |   |
| Beginning balance                       |   |             | 571    |   |   |   | 994 |   |
| Additions charged to costs and expenses |   |             | 451    |   |   |   | 501 |   |
| Claims processed                        |   |             | (660   | ) |   |   | (686 | ) |
| Ending balance                          |   |             | 362    |   |   |   | 809 |   |

|                                                                    |   | Three months ended |   |   | Six months ended |   |
|-------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                                    |   | July 2, 2011       |   |   | July 3, 2010     |   |   | July 2, 2011 |   |   | July 3, 2010 |   |
| Weighted average common shares for basic (loss) earnings per share |   |               | 67,616 |   |             |   | 64,902 |   |   |   | 67,327 |   |   |   | 64,553 |   |
|                                                                    |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                                          |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Stock options (*)                                                       |   |               | -      |   |             |   | 1,689 |   |   |   | - |   |   |   | - |   |
| Unvested restricted shares (*)                                          |   |               | -      |   |             |   | 515 |   |   |   | - |   |   |   | - |   |
|                                                                    |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted weighted average shares for diluted (loss) earnings per share  |   |               | 67,616 |   |             |   | 67,106 |   |   |   | 67,327 |   |   |   | 64,553 |   |

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

|                                 |   | Three months ended |   |   | Six months ended |   |
|--------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                 |   | July 2, 2011       |   |   | July 3, 2010     |   |   | July 2, 2011 |   |   | July 3, 2010 |   |
|                                 |   |               |   |   |             |   |   |   |   |   |   |   |
| Stock options                        |   |               | 4,959  |   |             |   | 1,764 |   |   |   | 4,959 |   |   |   | 4,933 |   |
| Unvested restricted shares and units |   |               | 2,604  |   |             |   | 365 |   |   |   | 2,604 |   |   |   | 2,060 |   |

| 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) |   |
| Former-auction corporate debt security (2)     |   | $                      | 1,624  |   |       | $      | 2,960  |                                                          |   | $ | 2,960 |   |   | $ | - |   |   | $ | - |   |
| Auction Rate Securities                        |   |                   |   |   |       |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Corporate Debt (2)           |   |                   | 726    |   |       |   | 1,199  |                                                          |   |   | - |   |   |   | - |   |   |   | 1,199 |   |
|    Preferred Equity             |   |                   | 2,404  |   |       |   | 3,110  |                                                          |   |   | - |   |   |   | - |   |   |   | 3,110 |   |
|    State and Municipal Debt (2) |   |                   | 1,419  |   |       |   | 1,695  |                                                          |   |   | - |   |   |   | - |   |   |   | 1,695 |   |
| Total at December 31, 2010                     |   | $                      | 6,173  |   |       | $      | 8,964  |                                                          |   | $ | 2,960 |   |   | $ | - |   |   | $ | 6,004 |   |
|                                           |   |                   |   |   |       |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed Income Securities (3)                    |   | $                      | 14,297 |   |       | $      | 14,284 |                                                          |   | $ | 14,284 |   |   | $ | - |   |   | $ | - |   |
| U.S. Government Agency debt securities (3)     |   |                   | 2,000  |   |       |   | 1,997  |                                                          |   |   | 1,997 |   |   |   | - |   |   |   | - |   |
| Former-auction corporate debt security (2)     |   |                   | 1,653  |   |       |   | 3,128  |                                                          |   |   | 3,128 |   |   |   | - |   |   |   | - |   |
| Auction Rate Securities                        |   |                   |   |   |       |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|    Corporate Debt (2)           |   |                   | 744    |   |       |   | 1,488  |                                                          |   |   | - |   |   |   | - |   |   |   | 1,488 |   |
|    Preferred Equity             |   |                   | 2,404  |   |       |   | 3,423  |                                                          |   |   | - |   |   |   | 2,565 |   |   |   | 858 |   |
|    State and Municipal Debt (2) |   |                   | 1,394  |   |       |   | 1,702  |                                                          |   |   | - |   |   |   | 1,702 |   |   |   | - |   |
| Total at July 2, 2011                          |   | $                      | 22,492 |   |       | $      | 26,022 |                                                          |   | $ | 19,409 |   |   | $ | 4,267 |   |   | $ | 2,346 |   |

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

| (2)   | Available for sale debt securities with contractual maturities in excess of 10 years. |
|-----------------|---------------------------------------------------------------------------------------|

| (3)   | Available for sale debt securities with contractual maturities of 2 years or less. |
|-----------------|------------------------------------------------------------------------------------|

| ($ in 000’s)                                                                                                                                                                             |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Six months ended July 2, 2011 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                           |   | State & Municipal Security (a)                                                                   |   |   | Corporate Debt Security (b) |   |   | Preferred Equity Securities (c) |   |   | Total |   |
| Balance at January 1, 2011                                                                                                                                                                     |   | $                                                                                                    | 1,695  |   |   | $ | 1,199 |   |   | $ | 3,110 |   |   | $ | 6,004 |   |
| Total gains or losses realized/unrealized                                                                                                                                                      |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Included in earnings (loss)                                                                                                                                                                    |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 2, 2011                                                                                                                                                                  |   |                                                                                                 | 53     |   |   |   | 9 |   |   |   | - |   |   |   | 62 |   |
| - quarter ended July 2, 2011                                                                                                                                                                   |   |                                                                                                 | 22     |   |   |   | 9 |   |   |   | - |   |   |   | 31 |   |
| Included in other comprehensive income(loss)                                                                                                                                                   |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 2, 2011                                                                                                                                                                  |   |                                                                                                 | (22    | ) |   |   | 84 |   |   |   | 97 |   |   |   | 159 |   |
| - quarter ended July 2, 2011                                                                                                                                                                   |   |                                                                                                 | 54     |   |   |   | 187 |   |   |   | 216 |   |   |   | 457 |   |
| Purchases, redemptions, and settlements:                                                                                                                                                       |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Purchases                                                                                                                                                              |   |                                                                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Redemptions                                                                                                                                                            |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 2, 2011                                                                                                                                                                  |   |                                                                                                 | (100   | ) |   |   | - |   |   |   | - |   |   |   | (100 | ) |
| - quarter ended July 2, 2011                                                                                                                                                                   |   |                                                                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Settlements                                                                                                                                                            |   |                                                                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Transfers in and/or out of Level 3 (d)                                                                                                                                                         |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 2, 2011                                                                                                                                                                  |   |                                                                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| - quarter ended July 2, 2011                                                                                                                                                                   |   |                                                                                                 | (1,702 | ) |   |   | - |   |   |   | (2,565 | ) |   |   | (4,267 | ) |
| Balance at July 2, 2011                                                                                                                                                                        |   | $                                                                                                    | -      |   |   | $ | 1,488 |   |   | $ | 858 |   |   | $ | 2,346 |   |
|                                                                                                                                                                                           |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amount of total gains or losses for the period included in earnings(loss) attributable to the change in unrealized gains or losses relating to Level 3 assets still held at the reporting date |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     - as of April 2, 2011                                                                                                                                                  |   |                                                                                                 | 23     |   |   |   | 9 |   |   |   | - |   |   |   | 32 |   |
|     - as of July 2, 2011                                                                                                                                                   |   |                                                                                                 | -      |   |   |   | 9 |   |   |   | - |   |   |   | 9 |   |
| Level 3 securities held at July 2, 2011:                                                                                                                                                       |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Face value                                                                                                                                                                                     |   |                                                                                                 | -      |   |   | $ | 2,500 |   |   | $ | 3,125 |   |   | $ | 5,625 |   |
| Financial ratings                                                                                                                                                                              |   |                                                                                                 | -      |   |   |   | A |   |   | A2 & NR |   |   |   |   |   |
| Weighted average interest rate (*)                                                                                                                                                             |   |                                                                                                 | -      |   |   |   | 2.0 | % |   |   | 1.9 | % |   |   | 2.0 | % |
| Maturity date                                                                                                                                                                                  |   |                                                                                                 | -      |   |   |   | 2036 |   |   |   | N/A |   |   |   |   |   |

| ($ in 000’s)                           |   | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)Six months ended July 3, 2010 |   |
|----------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|
|                                         |   | State & Municipal Security (a)                                                                   |   |   | Corporate Debt Security (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 |   |
| Included in other comprehensive income(loss) |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 3, 2010                |   |                                                                                                 | 37     |   |   |   | 23 |   |   |   | 42 |   |   |   | 102 |   |
| - quarter ended July 3, 2010                 |   |                                                                                                 | 23     |   |   |   | (11 | ) |   |   | (122 | ) |   |   | (110 | ) |
| Purchases, redemptions, and settlements:     |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Purchases            |   |                                                                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Redemptions          |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - quarter ended April 3, 2010                |   |                                                                                                 | (100   | ) |   |   | - |   |   |   | - |   |   |   | (100 | ) |
| - quarter ended July 3, 2010                 |   |                                                                                                 | (100   | ) |   |   | - |   |   |   | (875 | ) |   |   | (975 | ) |
|     Settlements          |   |                                                                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Transfers in and/or out of Level 3           |   |                                                                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Balance at July 3, 2010                      |   | $                                                                                                    | 1,741  |   |   | $ | 1,118 |   |   | $ | 3,013 |   |   | $ | 5,872 |   |

|            |   | July 2, 2011 |   |   | December 31, 2010 |   |
|-----------------|--------|--------------|--------|--------|-------------------|--------|
|            |   |         |   |   |              |   |
| Raw materials   |   | $            | 4,589  |   |              | $      | 3,615 |   |
| Work in process |   |         | 7,442  |   |              |   | 10,792 |   |
| Finished goods  |   |         | 9,234  |   |              |   | 6,327 |   |
| Total           |   | $            | 21,265 |   |              | $      | 20,734 |   |

|   | 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 |   |   | Six months ended |   |
|-------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                |   | July 2, 2011       |   |   | July 3, 2010     |   |   | July 2, 2011 |   |   | July 3, 2010 |   |
|                                |   |               |   |   |             |   |   |   |   |   |   |   |
| Amortization of restricted stock    |   | $                  | 2,198  |   |             | $      | 1,810 |   |   | $ | 4,886 |   |   | $ | 3,661 |   |
| Amortization of ESP Plan            |   |               | 200    |   |             |   | 200 |   |   |   | 400 |   |   |   | 400 |   |
| Amortization of stock option awards |   |               | 178    |   |             |   | 294 |   |   |   | 780 |   |   |   | 800 |   |
| Total stock based compensation      |   | $                  | 2,576  |   |             | $      | 2,304 |   |   | $ | 6,066 |   |   | $ | 4,861 |   |
|                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| By Financial Statement line item    |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                       |   | $                  | 593    |   |             | $      | 589 |   |   | $ | 1,203 |   |   | $ | 1,162 |   |
| Research and development expenses   |   |               | 727    |   |             |   | 832 |   |   |   | 2,273 |   |   |   | 1,683 |   |
| Selling and administrative expenses |   |               | 1,336  |   |             |   | 883 |   |   |   | 2,670 |   |   |   | 2,016 |   |
| Restructuring charge                |   |               | (80    | )      |             |   | - |   |   |   | (80 | ) |   |   | - |   |

|                            |   | 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, 2010  |   |                    | 638    |   |                   | $      | 9.90   |          |   |   | 828 |   |   | $ | 3.36 |   |   |   | 5,307 |   |   | $ | 5.32 |   |
| Granted                         |   |                    | -      |   |                   |   | -      |          |   |   | 2,009 |   |   |   | 4.33 |   |   |   | 121 |   |   |   | 5.08 |   |
| Shares vested/options exercised |   |                    | (279   | )      |                   |   | 9.74   |          |   |   | (1,338 | ) |   |   | 3.56 |   |   |   | (758 | ) |   |   | 1.99 |   |
| Forfeited/expired               |   |                    | (179   | )      |                   |   | 11.66  |          |   |   | (39 | ) |   |   | 4.16 |   |   |   | (527 | ) |   |   | 12.90 |   |
| Balance at December 31, 2010    |   |                    | 180    |   |                   | $      | 8.39   |          |   |   | 1,460 |   |   | $ | 4.49 |   |   |   | 4,143 |   |   | $ | 4.96 |   |
| Granted                         |   |                    | -      |   |                   |   | -      |          |   |   | 2,432 |   |   |   | 6.08 |   |   |   | 1,061 |   |   |   | 3.29 |   |
| Shares vested/options exercised |   |                    | (178   | )      |                   |   | 8.40   |          |   |   | (896 | ) |   |   | 4.78 |   |   |   | (117 | ) |   |   | 2.18 |   |
| Forfeited/expired               |   |                    | (1     | )      |                   |   | 9.72   |          |   |   | (393 | ) |   |   | 6.04 |   |   |   | (128 | ) |   |   | 11.43 |   |
| Balance at July 2, 2011         |   |                    | 1      |   |                   | $      | 6.08   |          |   |   | 2,603 |   |   | $ | 5.64 |   |   |   | 4,959 |   |   | $ | 4.50 |   |

|                                          |   | As of July 2, 2011 |   |
|-----------------------------------------------|--------|--------------------|--------|
|                                          |   |               |   |
| Unrecognized stock based compensation cost    |   |               |   |
| Option plans                                  |   | $                  | 3,537  |   |
| Restricted stock                              |   | $                  | 11,105 |   |
| Weighted average remaining recognition period |   |               |   |   |
| Option plans                                  |   | 2.2 years          |   |
| Restricted stock                              |   | 2.2 years          |   |

| Range of exercise prices |          |   | Outstanding Options at July 2, 2011 |   |   | Weighted average remaining contractual life |   |   | Weighted average exercise price |   |   | Exercisable at July 2, 2011 |   |   | Weighted average exercise price |   |
|--------------------------|---------------|--------|-------------------------------------|--------|--------|---------------------------------------------|--------|--------|---------------------------------|--------|--------|-----------------------------|--------|--------|---------------------------------|--------|
|                     |          |   |                                |   |   |                                        |   |   |                            |   |   |                        |   |   |                            |   |
| $                        | 1.39 - $1.93  |   |                                |   | 857    |                                        |   |   | 7.4                             |   |   | $                           | 1.93   |   |                            |   | 588 |   |   | $ | 1.93 |   |
| $                        | 2.03 - $3.30  |   |                                |   | 2,482  |                                        |   |   | 4.2                             |   |   | $                           | 2.61   |   |                            |   | 1,438 |   |   | $ | 2.15 |   |
| $                        | 3.65 - $8.79  |   |                                |   | 727    |                                        |   |   | 4.3                             |   |   | $                           | 6.36   |   |                            |   | 608 |   |   | $ | 6.60 |   |
| $                        | 8.84 - $18.98 |   |                                |   | 893    |                                        |   |   | 3.9                             |   |   | $                           | 10.71  |   |                            |   | 893 |   |   | $ | 10.71 |   |

|                                           |   | Six months ended |   |
|------------------------------------------------|--------|------------------|--------|
|                                           |   | July 2, 2011     |   |   | July 3, 2010 |   |
| Stock option awards:                           |   |             |   |   |   |   |
| Risk-free interest rate                        |   |             | 2.2    | % |   |   | 2.6 | % |
| Expected volatility                            |   |             | 65     | % |   |   | 85 | % |
| Average expected term (in years)               |   |             | 5.0    |   |   |   | 5.0 |   |
| Expected dividend yield                        |   |             | 0.0    | % |   |   | 0.0 | % |
| Weighted average fair value of options granted |   | $                | 1.85   |   |   | $ | 3.21 |   |
|                                           |   |             |   |   |   |   |   |   |
| ESP Plan:                                      |   |             |   |   |   |   |   |   |
| Risk-free interest rate                        |   |             | 0.2    | % |   |   | 0.3 | % |
| Expected volatility                            |   |             | 58     | % |   |   | 61 | % |
| Average expected term (in years)               |   |             | 1.0    |   |   |   | 1.0 |   |
| Expected dividend yield                        |   |             | 0.0    | % |   |   | 0.0 | % |
| Weighted average fair value of purchase option |   | $                | 1.05   |   |   | $ | 1.44 |   |

----

|                                            |   | Three months ended |   |   | Six months ended |   |
|-------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                            |   | July 2, 2011       |   |   | July 3, 2010     |   |   | July 2, 2011 |   |   | July 3, 2010 |   |
|                                            |   |               |   |   |             |   |   |   |   |   |   |   |
| Net sales                                       |   |               | 100.0  | %      |             |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost of sales                                   |   |               | 81.6   | %      |             |   | 65.6 | % |   |   | 76.3 | % |   |   | 67.1 | % |
|                                            |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin                                    |   |               | 18.4   | %      |             |   | 34.4 | % |   |   | 23.7 | % |   |   | 32.9 | % |
| Research and development expenses               |   |               | 31.9   | %      |             |   | 23.6 | % |   |   | 31.5 | % |   |   | 25.2 | % |
| Selling and administrative expenses             |   |               | 20.6   | %      |             |   | 13.3 | % |   |   | 21.2 | % |   |   | 14.6 | % |
| Restructuring and impairment (recovery) charges |   |               | 2.9    | %      |             |   | (3.3 | )% |   |   | 1.3 | % |   |   | (1.8 | )% |
|                                            |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Operating (loss) income                         |   |               | (37.0  | )%     |             |   | 0.8 | % |   |   | (30.3 | )% |   |   | (5.1 | )% |
| Interest income                                 |   |               | 0.3    | %      |             |   | 0.2 | % |   |   | 0.3 | % |   |   | 0.2 | % |
| Interest expense                                |   |               | -      |   |             |   | (0.1 | )% |   |   | - |   |   |   | (0.1 | )% |
| Other income, net                               |   |               | -      |   |             |   | 0.6 | % |   |   | - |   |   |   | 0.4 | % |
|                                            |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                               |   |               | (36.7  | )%     |             |   | 1.5 | % |   |   | (30.0 | )% |   |   | (4.6 | )% |

----

| ·   | The election of two Class I Directors of the Company to hold office until 2014. |
|--------------------|---------------------------------------------------------------------------------|

| ·   | The ratification of the appointment of Ernst & Young LLP as independent registered public accountants of the Company for the fiscal year ending December 31, 2011. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | To approve an advisory vote on executive compensation. |
|--------------------|--------------------------------------------------------|

| ·   | To approve an advisory vote on the frequency of future advisory votes on executive compensation. |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | The election of Harry Rein as Class I Director was approved by holders of 33,504,532 shares of the Company’s outstanding capital stock.  Holders of 1,021,053 shares voted against such election. Holders of 185,623 shares abstained from voting on such election and broker non-votes totaled 23,996,767. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The election of Dennis Strigl as Class I Director was approved by holders of 33,901,368 shares of the Company’s outstanding capital stock.  Holders of 625,695 shares voted against such election. Holders of 184,145 shares abstained from voting on such election and broker non-votes totaled 23,996,767.  Messrs. Rein and Strigl join the continuing Directors of the Company Messrs. Bachow, Fellows, Michels, Rosenzweig, and Solomon. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The ratification of the appointment of Ernst & Young LLP as independent registered public accountants was approved by holders of 57,455,395  shares of the Company’s outstanding capital stock. Holders of 475,381  shares voted against the ratification.  Holders of 777,199 shares abstained from voting on such ratification. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The advisory vote to approve executive compensation was approved by holders of 31,619,879 shares of the Company’s outstanding capital stock. Holders of 994,386 shares voted against the proposal.  Holders of 2,096,943 shares abstained from voting on such proposal and broker non-votes totaled 23,996,767. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The advisory vote on the frequency of future advisory votes on executive compensation was approved by holders as follows: 28,500,417 shares voted in favor of an annual vote, 550,301 shares voted in favor of a vote every two years and 3,579,796 shares voted in favor of a vote every three years. Holders of 2,080,694 shares abstained from voting on such proposal and broker non-votes totaled 23,996,767. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As a result of the shareholders preference for an annual advisory vote on executive compensation, the Company has determined to include an advisory shareholder vote on executive compensation in its proxy materials for the annual shareholders meeting in 2012. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | 32.1 Section 1350 Certification of Ronald Michels, President and Chief Executive Officer of ANADIGICS, Inc. |
|--------|-------------------------------------------------------------------------------------------------------------|

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

----

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