North American Company Profiles 8x8

8X8

8x8, Inc. 2445 Mission College Boulevard Santa Clara, 95054 Telephone: (408) 727-1885 : (408) 980-0432 Web Site: www.8x8.com Email: [email protected]

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: 8x8, Inc. • Bucks, England U.K. Telephone: (44) (1628) 402800 • Fax: (44) (1628) 402829

Financial History ($M), Fiscal Year Ends March 31

1992 1993 1994 1995 1996 1997 1998 Sales 36 31 34 20 29 19 50 Net Income 5 (1) (0.3) (6) (3) (14) 4 R&D Expenditures 7 7 7 8 8 11 12 Capital Expenditures — — — — 1 1 1

Employees 114 100 105 110 81 100 100

Ownership: Publicly held. NASDAQ: EGHT.

Company Overview and Strategy

8x8, Inc. is a worldwide leader in the development, manufacture and deployment of an advanced Visual Information Architecture (VIA) encompassing A/V compression/decompression silicon, software, subsystems, and consumer appliances for video telephony, videoconferencing, and video multimedia applications.

8x8, Inc. was founded in 1987. The “8x8” refers to the company’s core technology, which is based upon Discrete Cosine Transform (DCT) and decompression. In DCT, 8-pixel by 8-pixel blocks of image data form the fundamental processing unit.

2-1 8x8 North American Company Profiles

Management

Paul Voois Chairman and Chief Executive Officer Keith Barraclough President and Chief Operating Officer Bryan Martin Vice President, Engineering and Chief Technical Officer Sandra Abbott Vice President, Finance and Chief Financial Officer Chris McNiffe Vice President, Marketing and Sales Chris Peters Vice President, Sales Michael Noonen Vice President, Business Development Samuel Wang Vice President, Process Technology David Harper Vice President, European Operations Brett Byers Vice President, General Counsel and Investor Relations

Products and Processes

8x8 has developed a Video Information Architecture (VIA) incorporating programmable integrated circuits (ICs) and compression/decompression algorithms (codecs) for audio/video communications. The company’s video compression combine, on a single chip, a RISC , digital signal processor, specialized video processing circuitry, static RAM memory, and proprietary codec software.

The company’s family of processors include the following:

• ViaTV Phone is an all-in-one video telephone that connects to standard TV and regular telephone lines for cost-effective, easy-to-use consumer and small business video telephony.

• Video Communications Processor (VCP) is a single-chip programmable video subsystem and multimedia communications processor for ISDN/LAN/WAN videoconferencing.

• Low Bit-Rate Video Processor (LVP) is a single-chip programmable video-phone processor for ordinary telephone lines.

8x8 is a fabless manufacturer of video ICs and videophone systems, but has strategic alliances for core technologies, as well as equity partners, with leading electronics manufacturers, including , NSC/ASCII/Mitsu, Yamaha and .

8x8 also provides videoconferencing components to major OEMs such as British Telecom, MCI, PictureTel, and Sony.

2-2 North American Company Profiles ACC Micro

ACC MICRO

ACC Microelectronics Corporation 2500 Augustine Drive Santa Clara, California 95054 Telephone: (408) 980-0622 Fax: (408) 980-0626

(See Auctor Corporation)

2-3 North American Company Profiles

ACTEL

Actel Corporation 955 East Arques Avenue Sunnyvale, California 94086-4533 Telephone: (408) 739-1010 Fax: (408) 739-1540 Web Site: www.actel.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Actel Europe Ltd. • Basingstoke, Hampshire, England Telephone: (44) (1256) 29209

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 41 56 76 109 149 156 Net Income (0.3) 5 8 (1) 15 17 R&D Expenditures 9 11 14 21 24 26 Foundry Fab Investment — — 4 3 4 0

Employees 168 211 245 320 356 380

Ownership: Publicly held. NASDAQ: ACTL.

Company Overview and Strategy

Founded in 1985, Actel Corporation designs, develops, and markets field programmable gate arrays (FGPAs) and associated software development systems and programming hardware. Its products are used by designers of computer and computer peripheral, , military, aerospace, industrial control, and other electronic systems.

2-4 North American Company Profiles Actel

Actel is a leader in the development of antifuse-based FPGAs and believes it was the first company to achieve volume production of such devices. The company's objective is to become the leading supplier of FPGAs by fully exploiting the capabilities of its proprietary antifuse and circuit architectures.

In April 1995, Actel completed the acquisition of the antifuse FPGA business of , which was the only second-source supplier of Actel’s products.

Management

John C. East President and Chief Executive Officer Esmat Z. Hamdy Senior Vice President, Technology and Operations Fares Mubarak Vice President, Engineering Hank Perret Vice President, Finance and Chief Financial Officer Michelle A. Begun Vice President, Human Resources Douglas D. Goodyear Vice President, Worldwide Sales Carl Burrow Vice President, Marketing Robert Smith, Ph.D. Vice President, Software David L. Van De Hey Vice President and General Counsel Gujus Worthington Manager, Strategic Product Planning Bruce Weyer Director, Product Marketing Cindy Joyce Director, North American Distribution Sales

Products and Processes

Value Series • The ACT1 family consists of two devices, a 1,200-gate part and a 2,000-gate (6,000 PLD equivalent ) part, and offers system performance of up to 25MHz. This family of circuits utilizes 1.0µm or 0.9µm CMOS technology. • The ACT2 family consists of three devices ranging from 2,500 to 8,000 gates (20,000 PLD equivalent gates) and offers system performance of up to 50MHz. This family of circuits utilizes 1.0µm CMOS technology.

2-5 Actel North American Company Profiles

Accelerator Series • The ACT3 family consists of devices ranging from 1,500 to 10,000 gates (25,000 PLD equivalent gates) and on-chip performance of up to 250MHz (system performance up to 75MHz). This family of circuits is based on 0.8µm double-level-metal CMOS technology. • The ACT3 PCI family consists of fully PCI-compliant devices with 4,000 to 10,000 usable gates and on-chip performance of up to 250MHz. This family of circuits is based on 0.6µm double-level-metal CMOS technology.

Integrator Series • The MX family is the first line of low-cost, single-chip ASIC alternatives. The 9,000 gate A42MX09, is the fastest device in the MX family of FPGAs. • The 1200XL family features parts ranging from 2,500 to 8,000 gates and offers system performance of up to 60MHz. This family of circuits is based on 0.65µm CMOS technology. • The 3200DX family of FPGAs has capacities ranging from 6,500 gates to 40,000 gates and offers system performance of up to 100MHz. These high-performance FPGAs offer fast dual-port SRAM, fast decode, and data path circuitry based on 0.65µm double-level-metal CMOS technology.

Reprogrammable SPGAs • Actel’s ES family of system programmable gate arrays (SPGAs) are non-antifuse PLDs designed to address the system-on-a-chip market. The fine-grained array of logic module blocks enables gate counts from 50,000 gates up to 400,000 gates. The SRAM-based SPGAs permit the integration of complex intellectual property (IP) cores and support in-system programmability (ISP). Actel jointly developed the SPGA technology with the Silicon Architects Group of .

Radiation-Hardened FPGAs • In March 1998, Actel announced availability of its new FPGA, the 2,000 gate RH1020. • Actel’s RadHard family of FPGAs consists of radiation-hardened versions of its 2,000-gate ACT1 device and its 8,000-gate ACT2 device. These devices were first shipped in 1996 and ramped more quickly than any other product in the company’s history. The RadHard family is based on 0.8µm double-level-metal epitaxial bulk CMOS technology jointly developed with Lockheed-Martin Federal Systems.

Mask Programmed Gate Arrays (MPGAs) • Offered as an alternative to traditional gate array conversions, Actel’s MPGAs provide significant cost reductions for high-volume applications. An Actel FPGA used for prototyping and initial production can be replaced by a corresponding MPGA (masked version of the device).

To support its FPGA products, Actel offers software products, including its CoreHDL IP portfolio consisting of telecommunications cores, industrial cores, a Universal Serial Bus (USB) interface, and Actel-developed CorePCI models, as well as proprietary and third-party design automation software. In addition, Actel provides programming and test hardware and a diagnostic option that provides special in-circuit debug and diagnostic capabilities.

2-6 North American Company Profiles Actel

Semiconductor Fabrication Facilities

Actel's FPGAs are manufactured by Chartered , Lockheed-Martin Federal Systems, Matsushita, Texas Instruments, and .

The company’s first foundry suppliers were Matsushita and TI. As part of the 1995 acquisition of TI’s FPGA business, Actel signed a three-year manufacturing agreement (1.0µm design rules).

Also in 1995, Actel and Matsushita extended their five-year manufacturing relationship (0.8µm, 0.9µm, and 1.0µm design rules). In addition, Matsushita is assisting Actel in developing next-generation antifuse technology.

Actel’s relationship with Chartered began in 1994 when the company purchased a minority equity interest in Chartered. In return, Actel is guaranteed access to Chartered’s advanced 200mm wafer capacity (0.6µm design rules).

Since being signed on in 1994, Winbond has become one of Actel’s largest fab partners, providing the company with advanced wafer production services (0.8µm and 0.6µm design rules).

Lockheed-Martin Federal Systems is the sole source of Actel’s rad-hard FPGAs, which are being jointly developed by the two companies (0.8µm design rules).

Key Agreements

• In March 1998, Space Electronics Inc. announced that it had signed a memorandum of understanding with Actel Corporation to develop and market a new line of high-reliability, radiation-tolerant Field Programmable Gate Array (FPGA) products. The agreement calls for the two companies to combine Space Electronics’ patented RAD-PAK package shielding technology with Actel’s commercial FPGA products. The first products are expected by the second quarter of 1998.

• In January 1998, Actel and High Reliability Components Corporation (HIREC) announced a partnership to bring high reliability field programmable gate arrays (FPGAs) to the burgeoning Japanese satellite and space exploration industry. This includes the latest Japanese National Space Development Agency (NASDA) launch vehicle, the H-IIA Rocket.

• In 4Q96, Actel signed a multi-year agreement with Swiss IP provider, Inicore AG, for several telecommunications and industrial control cores. The cores have been optimized for Actel’s ACT3, ACT3 PCI, 1200XL, and 3200DX families of FPGAs, as well as the ES family of SPGAs.

• Actel and Synopsys announced an agreement in mid-1996 to jointly develop Actel’s SPGAs, which combine the features of FPGAs and mask programmed ASICs in a single chip. Under the agreement, Actel licensed the cell-based array (CBA) architecture of the Silicon Architects Group of Synopsys for use in the mask- programmed portion of the SPGAs.

2-7 Actel North American Company Profiles

• In 2Q96, Actel signed an agreement with IP provider, Technical Data Freeway, Inc., giving Actel and its customers access to over 90 synthesizable DSP, telecommunications, multimedia, and MCU cores.

• Actel completed an agreement with Lockheed-Martin Federal Systems Company in Manassas, Virginia, in 1H95 to jointly develop radiation-hardened FPGAs. Lockheed Martin FSC is manufacturing the devices.

2-8 North American Company Profiles Advanced Hardware Architectures

ADVANCED HARDWARE ARCHITECTURES CORP.

Advanced Hardware Architectures Corporation 2365 Northeast Hopkins Court Pullman, WA 99163 Telephone: (509) 334-1000 Fax: (509) 334-9000 Web Site: www.aha.com

Fabless IC Manufacturer Founded: 1988

Employees: 50

Ownership: Privately held.

Company Overview and Strategy

Advanced Hardware Architectures Corporation (AHA) supplies standard and customized IC designs for many leading electronics manufacturers worldwide. AHA products offer a unique difference that gives equipment or systems faster data rates and more capacity. Applications include data backup storage, hardcopy and digital communications. Using patented coprocessor architectures that are highly parallel, extremely fast, and void of the performance delays inherent in software, AHA compiles algorithms directly into full-custom VLSI chips. AHA’s single-chip, full-custom coprocessor designs involve custom algorithms, architectures, logic, electronics and cell designs.

Advanced Hardware was a spin-off of the University of Idaho Microelectronics Research Center, the only NASA Engineering Research Center for VLSI design. In exchange for royalties and shares of AHA stock, the University granted perpetual, exclusive and worldwide rights to two patented coprocessor technologies. The first is the high-speed Reed-Solomon Error Correction patent, the initial focus of the Company. The second technology improves the speed of today’s best computer sorting by at least a factor of ten.

AHA has over 25 sales agents across the US and Canada. In addition, the Company is represented by a number of sales representatives and distributors in Europe, the Middle East and the Pacific Rim. Annual sales for 1997 were approximately $14M.

2-9 Advanced Hardware Architectures North American Company Profiles

Management

John C. Overby President Gordon F. Scott Vice President, Finance and Administration Patrick A. Owsley Vice President, Technology and Product Development Thomas M. Kovanic Vice President, Marketing and Sales Iain Mackie Vice President, Engineering John Cameron Director, Operations

Products and Processes

Advanced Hardware’s products are outlined below.

• Data Storage – AHA produces a wide variety of formatters and solutions for data storage applications. Typical products are Magneto Optical drives, Quarter Inch Cartridge tape and Digital Data Storage Tape.

• Hardcopy – Hardcopy is AHA’s generic term for any transfer of electronic images to the printed page that could benefit from AHA’s data compression technology. This area includes, but is not limited to, copiers, printers, scanners, plotters, x-ray and medical imaging devices.

• Digital Communications – The digital communications product group has grown to encompass many different applications in the last 10 years. These include LANs, wireless digital cable, cable modems, , digital cellular telephones and other low power digital communication applications. AHA Reed-Solomon ECC devices include the AHA4012, 1.5 Mbytes/sec, and the AHA4011, 10Mbytes/sec. AHA brings error detection and correction to digital channels from 10Kbits per second to over 80Mbits per second.

Data Compression

• AHA’s dictionary-based lossless data compression chips support a customized version of the Lempel-ziv adaptive algorithm (DCLZ) originally developed by Hewlett-Packard. AHA’s single-chip devices effectively double, or even triple, storage capacity in sequential storage media. Throughput rates in applications as diverse as high-speed LANs and data storage can be greatly boosted. The average compression ratio of the chips is 2:1 for typical files; however, compression ratios of 5:1 or higher are also achievable.

• The StarLite Family of hardcopy products include devices capable of simultaneous compression and decompression with speeds ranging from 4Mbytes/second to 33Mbytes/second. Also included in this family is a decompression only device which runs at of 16Mbytes/second.

• Color Image Compression – AHA’s proprietary Color Adaptive Data Compression (CADC) algorithm is based on DPCM algorithm, Huffman coding and adaptive quantization. The AHA3710 compression device is an efficient implementation of this algorithm that has been modified and optimized for color image data as well as grayscale formatted image data.

2-10 North American Company Profiles Advanced Hardware Architectures

• Data Format Controller – The Company’s QIC tape data format controller, the AHA5140, includes unique features such as read-while-write, frame level control and on-board system resources. The read-while-write feature greatly reduces backup time compared to read-after write drives. In addition, the chip’s frame level logic avoids block level control typically required of . This chip incorporates a programmable clock generator for system, tape write channel and data separator reference.

• Forward Error Correction – AHA’s forward Error Correction codecs offer the highest level of cost-effective error correction performance in the industry. Some of the designs stem from research completed fro NASA space communications. AHA has integrated all Reed-Solomon encoding/decoding and specific controller functions into single, low-cost VLSI chips for on-the-fly error/erasure correction. AHA uses both Reed- Solomon and Viterbi error correction in an effective one-two punch that can clean up the noisiest transmission channels.

Semiconductor Fabrication Facilities

Key Agreements

• In February 1997, Advanced Hardware Architectures announced a joint venture with the Electronic Device Group of Mitsubishi Electronics America, Inc., to co-develop a new for use in the set-top boxes of operations. As part of the agreement, Mitsubishi Electronics America has also invested an undisclosed amount of money in AHA. Both companies have plans to market the new chip worldwide.

2-11 Advanced Power Technology, Inc. North American Company Profiles

ADVANCED POWER TECHNOLOGY, INC.

Advanced Power Technology, Inc. 405 Southwest Columbia Street Bend, Oregon 97702 Telephone: (541) 382-8028 Fax: (541) 388-0364 Web Site: www.advancedpower.com

IC Manufacturer Founded: 1984

Regional Offices/Representative Locations

U.S.: Western Region Advanced Power Technology, Inc. Phone: (408) 847-2447 • Fax: (408) 847-2413

Northeastern Region Advanced Power Technology, Inc. Phone: (972) 686-5352 • Fax: (972) 686-5441

Southeastern Region Advanced Power Technology, Inc. Phone: (704) 693-6564 • Fax: (704) 693-7757

Europe: European Sales Office, U.K. Advanced Power Technology, Inc. Phone: (44) 1635 582 358 • Fax: (44) 1635 582 458

APT Europe – Merignac, France Phone: (33) 557 92 15 15

Ownership: Privately held.

Company Overview and Strategy

Advanced Power Technology, Inc. (APT) manufactures power and ultrafast rectifiers for high-power switch mode power supplies, motor speed controls and related power applications.

2-12 North American Company Profiles Advanced Power Technology, Inc.

In November 1993, APT acquired Power Compact, Merignac, France, a manufacturer of Application Specific Power Modules (ASPM). This acquisition enabled APT to combine its high power silicon technology with Power compact’s unique expertise in integrating the power, supervisory, protection and control circuitry into custom ASPM solutions. Targeted at the motor drive, welding and other high power applications, these modules offer end users a cost effective solution that meets their specific application needs.

Management

Patrick Sireta President and Chief Executive Officer John Hess Vice President, Discrete Power Products Dah Wen Tsang Vice President, Engineering Research and Development Thomas A. Loder Vice President, Sales and Marketing Greg Haugen Chief Financial Officer and Vice President, Finance and Administration Russell Crecraft Vice President, Manufacturing Operations

Products and Processes

Advanced Power Technology products are described below.

Avalanche Energy Rated MOSFETs: APT has a broad line of avalanche energy rated MOSFETs ranging from 100V to 1,200V with RDS(ON) ranging from 0.019 ohms to 1,600 ohms. APT’s interdigitated layout has always featured very fast switching speeds and short delay times. An improved layout for Power MOSV™ has reduced the switching speeds even further. This product family also includes FREDFETs and is offered in a wide range of plastic packages.

Ultra Fast Recovery Diodes (FRED): Includes devices rated from 200V though 1,200V and from 15Å to 100Å per chip. Using APT’s proprietary heavy metal lifetime control process, the FREDs achieve ultra-fast recovery time while maintaining soft recovery characteristics and low forward voltage.

Low Gate Charge MOSFET Family: This product line ranges from 400V to 1,000V with RDS(ON) ranging from 0.042 ohms to 1,000 ohms.

RF MOSFETs: Offered in plastic packaged “symmetric pair” lead pin-out configuration allows for easy board layout of push-pull circuits. This product line is targeted at 1-120MHz industrial, scientific and medical applications.

Hermetic Packaged MOSFET Products: This product line includes ICs operating at voltages ranging from 200V to 1,000V with RDS(ON) from 0.022 ohms to 4,000 ohms.

IGBT: This product line is available with 600V and 1,200V ratings. Utilizing Non-Punch through (NPT) technology, it is the only rugged line of IGBT products currently offered in today’s market.

Advanced Power Technology, Inc. also offers high quality integrated custom modules, Application Specific Power Modules, through the Power Compact facility in Europe.

2-13 Alberta Microelectronic Corporation North American Company Profiles

ALBERTA MICROELECTRONIC CORPORATION (AMC)

Alberta Microelectronic Corporation 11315 – 87th Ave., Suite #318 Edmonton, Alberta Canada T6G 2T9 Telephone: (403) 492-3914 Fax: (403) 492-1643 Web Site: www.amc.ab.ca Email: [email protected]

IC/Prototype Manufacturer Founded: 1982

Employees: 65

Ownership: As of April 1998 - privately held.

Regional Offices/Representative Locations

North America: Alberta Microelectronic Corporation • Calgary, Canada Telephone: (403) 298-2043 • Fax: (403) 289-2047

Company Overview and Strategy

Alberta Microelectronic Corporation (AMC) started in 1982 as a University of Alberta spin-off and grew into a foremost Canadian provider of microelectronics. With annual semiconductor-related revenues of $6 million, AMC works as an OEM supplier to various companies utilizing microelectronic products or devices in the areas of genetic analysis, telecommunications, and industrial automation.

AMC offers services in three main areas: Design Engineering, Microfabrication and Thin-Film Simulation Software.

Management

Chris Lumb President and Chief Executive Officer Graham McKinnon Vice President of Microfabrication Derek Hudson Chief Financial Officer Steven Slupsky Design Group Manager Thomas Janacek Director of Marketing

2-14 North American Company Profiles Alberta Microelectronic Corporation

Products and Processes

AMC markets its own proprietary Thin-Film Process Simulator, SIMBAD – Silicon processing without Silicon, the first commercially available PVD process simulator.

AMC also provides electronic design services, especially in the area of embedded systems and .

Semiconductor Fabrication Facilities

AMC has a prototype facility, which is one of Canada’s finest laboratory environments for research and development in microelectronics and related areas. The 8,000 sq. ft. facility houses the development and fabrication of materials, devices, and microstructures in semiconductor related fields, which also include device processing, thin-film deposition, testing and packaging of microelectronic devices.

AMC 11315 – 87th Ave., Suite #318 Edmonton, Alberta, Canada T6G 2T9 Telephone: (403) 492-3914 Cleanroom size: 5,000 sq. ft.

Noteworthy News

• In April 1998, AMC announced its privatization plans, as well as a new name – The Alberta Microelectronic Corporation. Operating as a private company, the AMC will be governed by an independent board of directors and will continue its close and productive relationships with the Universities of Alberta and Calgary. As part of the re-organization, AMC is committing $5,000,000 to be spent over ten years to support research activities at the Universities of Alberta and Calgary.

2-15 Allegro MicroSystems North American Company Profiles

ALLEGRO MICROSYSTEMS

Allegro MicroSystems, Inc. 115 Northeast Cutoff, Box 15036 Worcester, Massachusetts 01615-0036 Telephone: (508) 853-5000 Fax: (508) 856-7434 Web Site: www.allegromicro.com

IC Manufacturer

Financial History ($M)

1992 1993 1994 1995 1996 1997 Semiconductor Sales 115 124 161 181 177 155 Capital Expenditures 13 10 14 13 13 47

Employees — — — — 2,000 2,400

Company Overview and Strategy

Allegro MicroSystems is the former semiconductor branch of Sprague Technologies, Inc. In 1990, Sprague Semiconductor Group was purchased by Japan's Sanken Electric and renamed Allegro MicroSystems. Today, Allegro is functionally and structurally an independently operating organization as a wholly owned subsidiary of Sanken Electric.

Allegro MicroSystems specializes in the design, manufacture, and marketing of advanced mixed-signal ICs. The company is the world leader in Hall-effect ICs and a prominent supplier of power and intelligent power ICs. Allegro's customers are OEMs primarily serving the automotive and industrial markets, but also the consumer, telecommunications, computer mass storage, and printer markets.

2-16 North American Company Profiles Allegro MicroSystems

Management

Allan S. Kimball President Allan S. Kimball Vice President, Sales (acting) Dennis Fitzgerald Vice President, Quality Systems John Kokulis Vice President, Finance and Chief Financial Officer Andy Labrecque Vice President, Operations John MacDougall Vice President, Research and Development Steven W. Miles Vice President, Product Development and Engineering Fred Windover Vice President and General Counsel Mary Beth Perry Vice President, Human Resources

Products and Processes

Allegro's product offerings are outlined below by end-use market segment.

Automotive Market EDP Printer and Communication Markets Magnetic field sensors Printer head driver Power driver ICs Paper transport motor driver Signal processing ICs Battery management Radio components

Computer Mass Storage Market Industrial and Consumer Markets Spindle motor controller/driver Chip supply for hybrids Servo/voice-coil motor driver Smoke detector electronics Combination drivers

Switch Mode Power Supply Market AC-DC converter (>10W to <250W) Universal input switching (<1kW)

The semiconductor processes used by Allegro range from standard bipolar to CMOS, power DMOS (double- diffused MOS), and combinations of all of them.

2-17 Allegro MicroSystems North American Company Profiles

Semiconductor Fabrication Facilities

Allegro MicroSystems, Inc. Allegro MicroSystems, Inc. 115 Northeast Cutoff 3900 Welsh Road Worcester, Massachusetts 01615-0036 Willow Grove, Pennsylvania 19090 Cleanroom size: 20,000 square feet Cleanroom size: 15,000 square feet Capacity (wafers/week): 5,000 Capacity (wafers/week): 3,000 Wafer size: 100mm and 150mm Wafer size: 100mm Processes: Bipolar, BiMOS, BiCMOS, DMOS Processes: Bipolar, CMOS, BiMOS, BiCMOS, DMOS Products: Power and intelligent power ICs, Products: Power and intelligent power ICs, signal processing ICs, sensors. ASICs (mixed-signal), sensors. Feature sizes: 1.25µm-8.0µm Feature sizes: 1.5µm-8.0µm

Allegro plans to expand wafer capacity at its Willow Grove facility.

2-18 North American Company Profiles Alliance Semiconductor

ALLIANCE SEMICONDUCTOR

Alliance Semiconductor Corporation 3099 North First Street San Jose, California 95134-2006 Telephone: (408) 383-4900 Fax: (408) 383-4999 Web Site: www.alsc.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 22 55 119 201 83 118 Net Income 2 9 24 11 (17) (6) R&D Expenditures 2 4 8 15 15 15 Foundry Fab Investment — — 7 95 — 32

Employees 35 40 74 130 150 160

Ownership: Publicly held. NASDAQ: ALSC.

Company Overview and Strategy

Founded in 1985, Alliance Semiconductor designs, develops, and markets memory products and memory- intensive logic products for high-performance applications. The company services a broad range of markets including desktop and portable PCs, networking, telecommunications and instrumentation. Alliance has OEM customers in North America, Europe, and Asia.

The majority of Alliance’s revenues have historically come from the high speed SRAM market. Over the past few years, the company has made steady progress in diversifying its product lines. Alliance’s product offerings now include DRAMs, flash memories, and 3D/2D graphics accelerator chips. In the near future, Alliance plans to leverage its experience in both memory and logic design to produce high performance embedded memory products to meet the needs of diverse markets.

2-19 Alliance Semiconductor North American Company Profiles

Management

N. Damodar Reddy Chairman, President, and Chief Executive Officer C.N. Reddy Senior Vice President, Engineering and Operations, and Chief Operating Officer Charles Alvarez Vice President, Finance and Administration, and Chief Financial Officer Bill Caparelli Senior Vice President, Sales Sunit Saxena Vice President, Operations and Product Engineering Angela Kupps Vice President, Human Resources

Products and Processes

SRAMs Alliance offers a variety of synchronous and asynchronous CMOS SRAMs that address application needs in the networking, telecom, modem, PC, and mainframe markets. Alliance is a leader in the high performance SRAM market. Historically, SRAMs were the primary product line for the company. In 1994 and 1995, Alliance produced a 3.3V asynchronous 256K SRAM which was considered a standard for Cache applications. Following the success of the 3.3V asynchronous SRAM product line, Alliance developed and introduced high density 1Mb (32K x 32) and 2Mb (64K x 32) 3.3V, synchronous-burst, fully pipelined SRAMs. These new SRAMs, with access times as low as 5ns, are being used in 166MHz and faster Pentium Cache applications. In 1993, Alliance introduced a 5V 1Mb, high performance, asynchronous SRAM, and in 1996, Alliance introduced a 4Mb asynchronous SRAM. Today, these two leading edge, high-density SRAMs are in production both in 3 and 5V configurations.

2-20 North American Company Profiles Alliance Semiconductor

Alliance recently introduced six, new, ultra-low power Intelliwatt™ SRAM products for the digital communications market. These SRAM products consume as little as 20 milliwatts of power when active. These devices use low power memory cell technology and a 0.25µm process technology to all but eliminate quiescent power consumption. Alliance offers Intelliwatt™ SRAM products in 64K x 16 and 128K x 8 configurations in 3.3V, 2.5V, and 1.8V operating ranges.

Alliance also introduced a high-speed (150MHz) synchronous graphics RAM (SGRAM). The 3.3V, one port, 8Mb device is suited for 2D/3D graphics applications on PCs and set-top boxes.

DRAMs Alliance currently offers high speed 4Mb DRAMs in 1M x 4 and 256K x 16 configurations. Alliance has produced high speed DRAM parts such a 16Mb EDO DRAM, 16Mb SDRAM, and 8Mb SGRAM in the most popular configurations. Currently under development are 16Mb SGRAM and 64Mb SDRAM memories; these devices are anticipated for 1998 production.

Flash Memories As part of Alliance’s diversification strategy, Alliance is developing a broad range of flash memory products. The flash memory product line will consist of high performance, feature-rich, single supply voltage (5V-only and 3V- only) products ranging from 1Mb to 8Mb in both 8-bit and 16-bit wide configurations. These products will be designed to address the PC BIOS, networking, telecommunications, instrumentation, and consumer electronics markets. Alliance currently offers a 4Mb 512K x 8 device.

3D/2D Graphics Accelerators In 1994, Alliance made its first foray into non-memory products with its line of ProMotion™ 2D graphics accelerators for PCs. In 1997, Alliance gained major recognition in the graphics market when it was chosen as the supplier for the 2D graphics chip to be used with 3Dfx’s high-end Voodoo Rush™ 3D graphics . Alliance graphics OEMs include Hercules, Jazz Multimedia, and Intergraph.

Alliance introduced a new line of high performance 3D/2D graphics accelerators. These products fully support the new Intel Accelerated Graphics Port standard, including AGP 2X with sideband addressing. Alliance will also offer 3D/2D graphics accelerators with embedded memory for the laptop PC market.

Embedded Memory Products Alliance Semiconductor offers a set of memory-intensive logic devices targeted at the computing, communications, and mass storage markets. These devices are currently implemented in 0.4 micron, 0.35 micron and 0.25 micron CMOS technologies on 8 inch wafers in world class fabs.

Alliance’s embedded products integrate logic + flash memory, logic + DRAM and logic + SRAM. Alliance will soon offer customers the ability to integrate logic + DRAM + SRAM on a single chip.

Alliance currently manufactures most of its products using 0.35 and 0.3µm CMOS technology in state-of-the-art 8 inch fabs. In 1998, Alliance introduced new SRAM products based on 0.25 and DRAM products based on 0.30 technology.

2-21 Alliance Semiconductor North American Company Profiles

Semiconductor Fabrication Facilities

Alliance manufactures its IC products through a combination of joint venture and independent manufacturing facilities. The company’s major foundries are United Microelectronics Corporation (UMC), United Semiconductor Corporation (USC), Chartered Semiconductor Manufacturing Ltd., and Rohm Corporation.

In February 1995, Alliance agreed to purchase shares of Chartered Semiconductor Manufacturing Ltd. in Singapore for approximately U.S. $10 million. In April 1995, the company agreed to purchase additional shares in Chartered, bringing the total agreed investment in Chartered to approximately U.S. $51.6 million.

In July 1995, Alliance entered into an agreement with UMC and S3 Inc. to form a separate Taiwanese company, USC, for the purpose of building and managing a semiconductor facility in . The facility is now in full production utilizing advanced submicron manufacturing processes. On March 20, 1998, Alliance announced an agreement to sell 35 million shares of USC, approximately 18 percent of the almost 190 million shares owned by Alliance. Through the agreement to sell 35 million shares of USC, Alliance will maintain an approximately 15.5 percent equity ownership position of USC, and will maintain the right to purchase up to 25 percent of the manufacturing capacity of the facility.

In October 1995, Alliance entered into an agreement with UMC and other parties to form a separate Taiwanese company, United Silicon Inc., for the purpose of building and managing a semiconductor manufacturing facility in Taiwan. The facility is expected to commence production in 1998. The contributions of Alliance and other parties shall be in the form of equity investments, representing an initial ownership interest of approximately five percent for each U.S. $30 million. Alliance had originally committed to an investment of approximately U.S. $60 million or ten percent ownership interest, but has recently requested that its level of participation be reduced by 50 percent. Currently, Alliance owns approximately 3.33 percent of the outstanding shares of USI and has the right to purchase up to approximately 4.17 percent of the manufacturing capacity of the facility.

2-22 North American Company Profiles Allied Signal Microelectronics & Technology Center

ALLIEDSIGNAL MICROELECTRONICS & TECHNOLOGY CENTER

AlliedSignal Microelectronics & Technology Center 9140 Old Annapolis Road, MD-108 Columbia, Maryland 21045 Telephone: (410) 964-4000 Fax: (410) 992-5813 Web Site: www.mtcsemi.com

IC/Prototype Manufacturer Founded: 1981

Financial History ($M), Fiscal Year Ends December 31

1996 1997 Corporate Sales 13,971 14,472 Net Income 1,170 1,020

Ownership: Publicly held; part of AlliedSignal Corporation (NYSE: ALD).

Company Overview and Strategy

AlliedSignal Microelectronics & Technology Center (MTC) designs and manufactures high-performance ASICs, from full-custom digital and analog to high-density standard cell. The mission of the company is to provide customers a competitive leverage at microwave frequencies utilizing SOI microwave CMOS technology. MTC is dedicated to serving wireless communications markets including: Global Positioning Systems (GPS), Wireless LAN, Personal Communications Systems (PCS), Satellite Systems Communications, and European GSM. MTC products include ASICs for space applications, Microwave CMOS and foundry services, Mixed-Signal, and Active Matrix Displays.

MTC, a wholly owned division of AlliedSignal Inc., evolved from two divisions of AlliedSignal Aerospace (previously known as Bendix). The two divisions were the VLSI group, created in Ft. Lauderdale, Florida in 1978, at the Bendix Avionics facility, and the Research and Technology Group of Columbia, Maryland. In 1984, Bendix enhanced it’s VLSI operation by moving it to Columbia, Maryland and creating it’s own fab facility. In 1985, Bendix merged with Allied, and by the first quarter of 1986, the fab produced its first wafers. In 1992, AlliedSignal merged the Research and Technology Group with the Microelectronics Center. This new organization was renamed Microelectronics and Technology Center, combining the technical expertise of both to create a world class research, design, and fab facility.

Management

David Yaney General Manager

2-23 Allied Signal Microelectronic & Technology Center North American Company Profiles

Products and Processes

AlliedSignal’s microwave CMOS technology primarily serves the wireless communications market. The Company offers microwave, mixed-signal and digital integration capability on a single chip. Components include , inductors, capacitors, and resistors. Their microwave CMOS devices feature SOI (silicon-on-insulator) technology, low power consumption at multiple D.C. bias conditions, low voltage operation (1.5V), high speed performance (greater than twice the speed of bulk silicon), inherent radiation hardened capabilities, and high temperature devices (300°C). Microwave CMOS Circuit/System applications include: receivers, transmitters, synthesizers, mixers, switches, PLLs, phase shifters, modulators, high speed A/Ds, digital receivers, and in amplifiers-LNAs and buffer.

Semiconductor Fabrication Facilities

AlliedSignal MTC has a 0.8 micron triple-level metal CMOS wafer fabrication facility. This facility houses 20,000 square feet of cleanroom — a combination of Class 10 and Class 10,000. Also on site, is a 4,000 square foot cleanroom used exclusively for research and development of new products.

2-24 North American Company Profiles Alpha Industries

ALPHA INDUSTRIES, INC.

Alpha Industries, Inc. Semiconductor Division 20 Sylvan Road Woburn, MA 01801 Telephone: (781) 935-5150 Fax: (781) 824-4564 Web Site: www.alphaind.com

IC Manufacturer Founded: 1959

Financial History ($M), Fiscal Year Ends March 31

1997 1998 Sales 85 117 Net Income (16) 10 R&D Expenditures 10 10 Capital Expenditures 8 11

Employees 800 840

Ownership: Publicly held. NASDAQ: AHAA.

Company Overview and Strategy

Alpha Industries designs and manufactures gallium arsenide (GaAs) integrated circuits, silicon and GaAs discrete semiconductors and ceramic products. Markets include cellular telephones, personal communications services (PCS), global positioning systems, mobile radio and specialized wireless equipment.

Management

George S. Kariotis Chairman Thomas Leonard President and Chief Executive Officer Paul Vincent Vice President and Chief Financial Officer Jean Pierre Gillard Vice President, Business Development

2-25 North American Company Profiles

ALTERA

Altera Corporation 101 Innovation Drive San Jose, California 95134 Telephone: (408) 544-7000 Fax: (408) 433-3945 Web Site: www.altera.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Altera Japan Ltd. • Shinjuku-ku, Tokyo, Japan Telephone: (81) 3 3340-9480

Europe: Altera U.K. Limited • Buckinghamshire, Telephone: (44) 1 494 602-000

Asia-Pacific: Altera International, Ltd. • Kwai Fong, New Territories, Hong Kong Telephone: (852) 2487-2030

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 101 140 199 402 497 631 Net Income 12 21 15 87 109 133 R&D Expenditures 16 17 22 34 50 54 Foundry Fab Investment 4 — 1 1 93 146

Employees 477 527 667 881 918 1,086

Ownership: Publicly held. NASDAQ: ALTR.

Company Overview and Strategy

Altera Corporation, founded in 1983, is the leading supplier of high-performance, high-density CMOS programmable logic devices (PLDs) and associated development tools. Its broad line of "off-the-shelf" user- configurable chips, together with Altera-developed software, enable system manufacturers to create custom logic functions in-house for a wide variety of applications. Altera believes its products and services provide its customers with faster time-to-market than masked ASIC solutions.

Altera products are used in a variety of applications, including telephone switching systems, computer networking, multimedia boards, broadcast video and video conferencing, and medical instrumentation.

2-26 North American Company Profiles Altera

Management

Rodney Smith Chairman, President, and Chief Executive Officer Denis Berlan Executive Vice President and Chief Operating Officer Clive McCarthy Senior Vice President, Development Engineering Jack Fitzhenry Vice President, Human Resources Thomas J. Nicoletti Vice President, Investor Relations Nathan Sarkisian Vice President, Finance Peter Smyth Vice President, Sales Erik Cleage Vice President, Marketing

Products and Processes

Altera® PLD products range from 24 to 676 pins with gate counts up to 250,000 gates and process technologies advancing to 0.25 micron through its fabrication partners. Altera recently announced Raphael, a revolutionary new PLD architecture with up to two million gates, more than 15 times the capacity of the largest PLDs on the market today. The first device, which is expected to be available in 1999, will be built on a 0.25 micron process and offer 500,000 gates of programmable logic. This device will chart a clear path toward one-million-gate PLDs, built on a 0.18 micron, six-layer metal process, that is expected to be available at the end of 1999. Devices with two million gates based on the Raphael architecture and a 0.15 micron, seven-layer metal process will follow thereafter.

2-27 Altera North American Company Profiles

FLEX 10KE Family FLEX 10KA Family • Up to 250,000 gates • 10,000 to 250,000 gates • In-circuit reconfigurable • In-circuit reconfigurable • Embedded array blocks with dual-port RAM • Embedded array architecture • Up to 676 pins • 100 to 600 pins • System performance: Up to 100MHz • System performance: 40 to 60MHz • 0.25 micron, CMOS SRAM technology • 0.35 micron CMOS SRAM technology • 2.5V supply voltage • 3.3V supply voltage • MultiVolt interface supporting 5V, 3.3V, • MultiVolt interface supporting 5V, 3.3V, and 2.5V and 2.5V • Megafunction support • Megafunction support

FLEX 10K Family FLEX 6000 Family • 10,000 to 100,000 gates • 10,000 to 24,000 gates • In-circuit reconfigurable • In-circuit reconfigurable • Embedded array architecture • 100 to 256 pins • 84 to 503 pins • System performance: 40 to 60MHz • System performance: 30 to 40MHz • 0.35 micron CMOS SRAM technology • 0.5 micron CMOS SRAM technology • 3.3V supply voltage • MultiVolt interface supporting 5V and 3.3V • MultiVolt interface supporting 5V, 3.3V, • Megafunction support and 2.5V • Megafunction support

FLEX 8000 Family MAX 9000 Family • 2,500 to 16,000 gates • 6,000 to 12,000 gates • In-circuit reconfigurable • In-system programmable • 84 to 304 pins • 84 to 356 pins • System performance: 40 to 60MHz • Jam programming support • 0.5 micron CMOS SRAM technology • System performance: 40 to 60MHz • MultiVolt interface supporting 5V and 3.3V • 0.5 micron CMOS EEPROM technology • Megafunction support • MultiVolt interface supporting 5V and 3.3V

MAX 7000A Family MAX 7000S Family • Up to 20,000 gates • 600 to 5,000 gates • In-system programmable • In-system programmable • 44 to 256 pins • 44 to 208 pins • Jam programming support • Jam programming support

• tPD = 5ns • tPD = 5ns • 0.35 micron CMOS EEPROM technology • 0.5 micron CMOS EEPROM technology • 3.3V supply voltage • MultiVolt interface supporting 5V and 3.3V • MultiVolt interface supporting 5V, 3.3V, and 2.5V

2-28 North American Company Profiles Altera

MAX 7000(E) Family MAX 5000 Family • 600 to 5,000 gates • 600 to 3,750 gates • 44 to 208 pins • 24 to 100 pins

• tPD = 6ns • 0.65 micron CMOS EPROM technology • 0.5 micron, CMOS EEPROM technology • MultiVolt interface supporting 5V and 3.3V

Classic Family • 300 to 900 gates • Zero standby power • 24 to 68 pins • 0.65 micron CMOS EPROM technology

The company also offers a series of configuration memory devices designed to configure its FLEX devices, as well as mask-programmed logic devices (MPLDs) for high-volume applications. MPLDs are pin-, function-, and timing- compatible with Altera PLDs and are available for all families.

Altera supplies the state-of-the-art MAX+PLUS® II development software, which has been optimized for design flexibility and compatibility with leading EDA design systems. With MAX+PLUS II, designers can quickly implement and test changes in a design, eliminating the long lead times typically associated with gate arrays.

As PLDs reach higher density levels, design flows must be as efficient as possible. Altera addresses this by being the industry leader in providing reusable and synthesizable megafunctions that are optimized for the Altera device architectures, and the tools required to create these solutions. Altera MegaCore™ functions are developed, pre- tested and licensed by Altera; megafunctions are also offered through the Altera Megafunction Partners Program (AMPPSM), an alliance between Altera and developers of optimized, synthesizable megafunctions.

Semiconductor Fabrication Facilities

Altera has foundry agreements with Sharp, TSMC, Cypress, and Intel.

In November 1995, Altera signed a letter of intent for joint ownership of a TSMC joint venture fab facility, located in Camas, Washington. Under the terms, Altera will invest $140 million to take an 18 percent equity stake in, and also gain the rights to 27 percent of the output from the new fab. Construction on the facility, called WaferTech, began in July 1996. Potential output from the plant is expected to be 7,500 200mm wafers per week, with production scheduled to start in 1998. Design rules will start at 0.35µm and migrate to 0.25µm.

Key Agreements

• In February 1996, Altera purchased a minority stake in I-Cube Inc., a privately held supplier of programmable switching and interconnect devices (PSIDs).

2-29 AMCC North American Company Profiles

APPLIED MICRO CIRCUITS (AMCC)

Applied Micro Circuits Corporation 6290 Sequence Drive San Diego, California 92121-4358 Telephone: (619) 450-9333 Fax: (619) 450-9885 Web Site: www.amcc.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Applied Micro Circuits Corporation • Munich, Germany Telephone: (49) (89) 92404-217 • Fax: (49) (89) 92404-140

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 38 50 47 50 57 77 Net Income (loss) 993 10.2 (1.0) (3.6) 6.3 15

Employees 275 300 310 270 255 309

Ownership: Publicly held. NASDAQ: AMCC

Company Overview and Strategy

Established in 1979, Applied Micro Circuits Corporation (AMCC) designs, develops, manufactures, and markets standard and application-specific high-speed, high-performance, high- interface ICs for the communications, computer, instrumentation, and military markets. The company also offers a comprehensive line of low EMI, low skew precision clock products.

AMCC is a leader in bipolar manufacturing and bipolar ECL logic arrays, the company’s focus in recent years has been shifting from ASICs to standard products, particularly chips for the telecommunications and networking markets, areas where bipolar’s high frequency characteristics can be exploited.

Management

David Rickey President and Chief Executive Officer Joel O. Holliday Chief Financial Officer and Administration Anil Bedi Vice President, Marketing Laszlo Gal Vice President, Engineering Kenneth Clark Vice President, Operations Thomas Tullie Vice President, Sales

2-30 North American Company Profiles AMCC

Products and Processes

AMCC produces and sells bipolar and BiCMOS gate array and standard cell ASICs, custom bipolar IC products, and standard bipolar and CMOS products.

The company’s portfolio of ASSPs for high-performance networking, clock/timing, and bus interface applications, and ASICs include the following:

Telecom and Data Products • ATM 155, 622Mbit/s Transmitters and Receivers • Fibre Channel Crosspoint Switches • Fibre Channel Interface Circuits • HIPPI Serial XMUX and XDEMUX Circuits • HIPPI Source and Destination Interface Circuits • SONET Clock Synthesis/Recovery Devices • SONET OC-3, OC-12 Transceivers • 100VG AnyLAN STP/Fibre Transceivers • Gigabit Transceivers

PCI Local Bus Interface Products • PCI Matchmaker Controllers • PCI Matchmaker Controller Developer’s Kit

Precision Clock and Timing Standard Products • 3.3/5V Low Skew Clock Drivers • Low Skew Clock Generators/Synthesizers

ASICs • BiCMOS Logic Arrays • Bipolar Logic Arrays

As part of its push into communications markets, AMCC redesigned its G3.0 bipolar process, obtained through a technology alliance with Plessey, to allow for 3.3V operation. Parts derived from the 1.0µm process can be operated at up to 2.4GHz.

Semiconductor Fabrication Facilities

AMCC operates from a 120,000 square foot facility in San Diego, California, that includes a design center for customer design use and training, a Class 10 cleanroom for bipolar IC production, and an assembly and test facility. The company has established strategic foundry partners to augment its wafer supply.

2-31 AMCC North American Company Profiles

Applied Micro Circuits Corporation 6920 Sequence Drive San Diego, California 92121-4358 Cleanroom size: 8,500 square feet (Class 10) Capacity (wafers/week): 600 Wafer size: 100mm Processes: Bipolar, BiCMOS Products: ASICs, ASSPs, custom ICs Feature sizes: 1.0µm, 2.0µm, 3.0µm

AMCC's capacity is only about half utilized and the company expects its current manufacturing resources to reach maximum levels in a few years.

Key Agreements

• In April 1998, Applied Micro Circuits Corporation announced the acquisition of certain assets of Ten Mountains, an analog design group located in Minneapolis, Minnesota, for an undisclosed amount. Ten Mountains focuses on the design engineering of Physical Media Devices (PMDs). This acquisition enables AMCC to offer immediate expertise in PMD design and technology.

The company will integrate Ten Mountains’ seven employees, which will bring AMCC’s staffing levels to 333 people worldwide. AMCC will immediately take over Ten Mountains’ Minneapolis facility.

• In January 1998, AMCC announced that Corporation had selected AMCC’s SONET transceivers for use in the company’s CoreBuilder™ 7000 high function switch and CoreBuilder 9000 enterprise switch for ATM and Gigabit Ethernet high capacity backbone networks.

2-32 North American Company Profiles AMD

ADVANCED MICRO DEVICES (AMD)

Advanced Micro Devices, Inc. One AMD Place P.O. Box 3453 Sunnyvale, California 94088-3453 Telephone: (408) 732-2400 Fax: (408) 774-7216 Web Site: www.amd.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Advanced Micro Devices (UK) Ltd. • Firmley, United Kingdom Telephone: (44) (1276) 803100 • Fax: (44) (1276) 803102

Japan: Advanced Micro Devices • Shinjuku-ku, Tokyo, Japan Telephone: (81) (3) 3346-7550 • Fax: (81) (3) 3342-5685

Asia-Pacific: Advanced Micro Devices Far East Ltd. • Kowloon, Hong Kong Telephone: (852) 2956-0388 • Fax: (852) 2956-0588

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 1,514 1,648 2,155 2,468 1,953 2,356 Net Income 234 208 271 216 (69) (21) R&D Expenditures 238 279 295 416 401 468 Capital Expenditures 224 390 586 650 494 623

Employees 11,674 12,203 11,994 12,981 12,181 12,759

Ownership: Publicly held. NASDAQ: AMD.

Company Overview and Strategy

Advanced Micro Devices (AMD) was founded in 1969 and is today one of the largest U.S.-based merchant manufacturers of integrated circuits. With a focus on the personal and networked computing and communications markets, the company produces microprocessors and related peripherals, flash memories, programmable logic devices, and circuits for telecommunications and networking applications.

AMD’s strategy is to be competitive only in those markets where it can be a leading factor. The company has been a major supplier of microprocessors since 1975, it is a leading supplier of non-volatile memories, a leader in ICs for local area networks and linecards for public communications applications, and is one of the largest suppliers of programmable logic devices.

2-33 AMD North American Company Profiles

In a move to significantly enhance its core competency in advanced microprocessor design, AMD acquired NexGen, Inc. for nearly $1 billion in early 1996. The acquisition brought together the engineering resources of NexGen and AMD’s sub-0.35µm process technology and manufacturing capability to enable AMD to offer future generations of microprocessors in a competitive timeframe.

To address the unique requirements of the market for programmable logic devices (PLDs), AMD spun-off its PLD operations in the second half of 1996 to form a new subsidiary business unit called Vantis Corporation (a separate profile of Vantis is included in this publication). Vantis will continue to rely on AMD for manufacturing services and plans to eventually become an independent company.

AMD is organized into four product groups: the Communications Group (CG), the Computation Products Group (CPG), the Memory Group (MG), and Vantis Corporation. CG products include voice and data communications products, embedded processors, I/O devices, and network products. CPG products include microprocessors. Memory Group products include flash memory devices and EPROMs. Vantis products are high-speed PLDs.

Management

W.J. Sanders III Chairman and Chief Executive Officer Richard Previte President and Chief Operating Officer Marvin Burkett Senior Vice President, Chief Financial and Administrative Officer and Treasurer Gene Conner Senior Vice President, Operations S. Atiq Raza Senior Vice President and Chief Technical Officer Stanley Winvick Senior Vice President, Human Resources Stephen Zelencik Senior Vice President and Chief Marketing Executive Donald M. Brettner Group Vice President, Manufacturing Services Division Richard Forte Group Vice President, Communications and Components Group, and President and Chief Executive Officer, Vantis Gary O. Heerssen Group Vice President, Wafer Fabrication Group William Siegle Group Vice President, Technology Development Group, and Chief Scientist Terryll R. Smith Group Vice President, Sales and Marketing Benjamin M. Anixter Vice President, External Affairs Gary Ashcraft Vice President and GM, Communication Products Division Kathryn Brandt Vice President, Business Systems Randy Burdick Vice President, Information Technology Management

2-34 North American Company Profiles AMD

Susan T. Daniel Vice President, Human Resource Operations James Doran Vice President, Technical Operations Tom Eby Vice President, Strategic Marketing, Communications and Components Group Curt Francis Vice President, Corporate Planning and Development Robert R. Herb Vice President, Strategic Marketing, Computation Products Group Larry Hollatz Vice President and GM, Texas Microprocessor Division Mike Johnson Vice President, Advanced Research and Development Robert M. Krueger Vice President and GM, Network Products Division Gerald A. Lynch Vice President, Sales and Marketing, Asia/Pacific-Japan Walid Maghribi Vice President and GM, Non-Volatile Memory Products Division Robert McConnell Vice President and GM, Logic Products Division Thomas M. McCoy Vice President, General Counsel, and Secretary Giuliano Meroni Vice President, Sales and Marketing, Europe Daryl Ostrander Vice President, Austin Wafer Fabrication Jack Saltich Vice President and GM, European Microelectronics Center, Dresden Danne Smith Vice President, Corporate Quality Tom Stites Vice President, Communications Michael Van Buskirk Vice President, Engineering, Non-Volatile Memory Products Division Jerry Vogel Vice President and GM, California Microprocessor Division

Products and Processes

MOS MEMORY ANALOG DRAM Amplifier SRAM ✔ Interface ✔ Flash Memory Consumer/Automotive ✔ EPROM Voltage Regulator/Reference ROM ✔ Data Conversion EEPROM ✔ Comparator ✔ Other (Including Non-Volatile RAM) Other (Includes Telecom)

MOS LOGIC DIGITAL BIPOLAR ✔ General Purpose Logic ✔ Bipolar Memory Gate Array ✔ General Purpose Logic Standard Cell Gate Array/Standard Cell ✔ Field Programmable Logic ✔ Field Programmable Logic Other Special Purpose Logic Other Special Purpose Logic ✔ MPU/MCU/MPR MOS MICROCOMPONENT ✔ MPU OTHER ✔ MCU Full Custom IC ✔ MPR Discrete DSP Optoelectronic

2-35 AMD North American Company Profiles

Microprocessor Products

AMD-K6™ MMX Microprocessors—Shipments of AMD’s sixth-generation K6 MMX microprocessor, the second member of AMD’s K86 family of superscalar RISC MPUs, began in the second quarter of 1997. The K6 has been designed to be competitive in performance with Intel’s single-chip version of its microprocessor. The 8.8-million- device is based on AMD’s 0.35µm five-layer-metal CMOSCS34 technology. The first versions in the K6 family operate at 166MHz, 200MHz, and 233MHz. A 266MHz version is expected in 2H97. In order to reach 300MHz, AMD plans to migrate the K6 to a 0.25µm process by the end of 1997, at the earliest.

AMD-K5™ Microprocessors—The first member of AMD’s K86 family, the K5 is a fifth-generation alternative to Intel’s Pentium. It is based on 0.35µm CMOS technology and is offered in five speed versions, the PR75, PR100, PR133, PR150, and PR166. The PR nomenclature suggests which specific higher-clock-rate Intel Pentium each of the members best compete with. Unfortunately, AMD was late in getting its K5 processor to market, and thus does not expect it to generate the levels of revenues achieved by the Am486 microprocessor over its product life.

Am5x86 Microprocessors—The 5x86 is said to offer Pentium-class performance using a fourth-generation architecture. It is based on a 0.35µm CMOS process and runs at a quadrupled of 133MHz.

Am486 Microprocessors—AMD’s 486DX4 microprocessors offer clock-tripled performance speeds of up to 120MHz and feature “enhanced” power management capabilities.

Embedded Processor Products

For processing/control applications in communications, mobile computing, networking, mass storage, or industrial control systems, AMD offers its E86™ Family of -compatible embedded processor products. The E86 family ranges from 16-bit MCUs to 32-bit MPUs, general purpose processors to “PCs on a chip.” The E86 family includes several versions of Am186/188 16-bit microcontrollers, Am386SX/DX and AM486DX 32-bit microprocessors, ElanSC300/310 32-bit microcontrollers based on a 386 core, and ElanSC400/410 32-bit microcontrollers based on a 486 core.

With the success of its E86 family, AMD is putting less emphasis on its venerable 29K™ family of embedded RISC processors. AMD will continue to support current product designs and customers using its 29K products. However, development of new 29K devices has been discontinued. AMD cited the high cost of supporting the proprietary architecture as the reason for putting an end to the product line.

Communications, Network, and I/O Products

AMD’s communications and networking products include ICs for public infrastructure, including subscriber line interface circuits (SLICs), subscriber line audio-processing circuits (SLACs™), and ISDN ; ICs for networking, including FDDI chips and PCnet™ Ethernet LAN devices; ICs for data communications, including PCI small computer systems interface (SCSI) circuits, serial communications controllers (SCCs), and TAXIchip™ devices; and ICs for wireless communications, including CT2 PhoX™ controllers for digital cordless telephones and PCnet-Mobile devices for wireless LANs.

2-36 North American Company Profiles AMD

Non-Volatile Memory Products

Am29Fxxx Flash Memories—5.0V-only sector-erase flash memory devices available in densities ranging from 1M to 16M. Some devices are available in bare die form.

Am29LVxxx Flash Memories—2.7V-only sector-erase flash memory devices available in densities ranging from 2M to 8M. Some devices are available in bare die form.

Am29LLxxx Flash Memories—AMD’s new family of “zero-power” flash chips that incorporate new power management circuitry to lower current consumption in sleep mode to only 75nA. The first member of the 2.2V- only sector-erase flash family is an 8M part.

Am28Fxxx Flash Memories—This is the company’s first generation family of 5.0V/12.0V bulk-erase flash memory devices. They are available in densities ranging from 256K to 2M.

EPROM Products—AMD’s CMOS UV and OTP EPROMs are offered in densities ranging from 64K to 4M. Low- voltage versions are available in 1M and 2M densities.

ExpressROM Products—These are standard EPROM die that are pre-programmed and then encapsulated in plastic packaging before delivery. They are offered in densities ranging from 64K to 8M.

Programmable Logic Products

The PLD products of Vantis include a variety of CMOS and bipolar (PAL) devices and its line of MACH (Macro Array CMOS High-Density) advanced complex PLDs (CPLDs). See individual profile of Vantis Corporation.

Other IC Products

The company’s other IC products include bipolar PROMs and RAMs, FIFO memories, high-performance CMOS and bipolar bus interface devices, drivers and receivers, and dynamic memory management circuits.

Semiconductor Fabrication Facilities

AMD built a $1.9 billion sub-half-micron semiconductor manufacturing facility in Dresden, Germany, for the manufacture of its K86 microprocessors. Groundbreaking took place in the fourth quarter of 1996, with production scheduled to start by the end of 1998.

AMD and broke ground in late 1995 on their second joint-venture manufacturing facility in Japan, a $1.2 billion fab for the production of flash memories. Initial output is expected in early 1998.

2-37 AMD North American Company Profiles

Advanced Micro Devices Advanced Micro Devices 5204 East Ben White Boulevard 5204 East Ben White Boulevard Austin, Texas 78741 Austin, Texas 78741 Telephone: (512) 385-8542 Telephone: (512) 385-8542 Fab 10 Fab 14 Cleanroom size: 22,000 square feet (Class 100) Cleanroom size: 22,000 square feet (Class 10) Capacity (wafers/week): 4,500 Capacity (wafers/week): 3,500 Wafer size: 125mm Wafer size: 150mm Process: CMOS Process: CMOS Products: PLDs Products: Flash memories, EPROMs Feature size: 0.9µm Feature size: 0.8µm

Advanced Micro Devices Advanced Micro Devices 5204 East Ben White Boulevard 901 Thompson Place Austin, Texas 78741 Sunnyvale, California 94088 Telephone: (512) 385-8542 Telephone: (408) 732-2400 Fab 15 Fab 17 and Submicron Development Center Cleanroom size: 22,000 square feet (Class 10) Cleanroom size: 42,500 square feet (Class 1) Capacity (wafers/week): 3,500 Capacity (wafers/week): 2,000 Wafer size: 150mm Wafer size: 150mm Process: CMOS Process: CMOS Products: Logic, telecom, and network ICs; Products: R&D, MPUs, flash memories MPUs; microperipheral ICs. Feature sizes: 0.35µm-0.8µm Feature size: 0.7µm

Advanced Micro Devices AMD Saxony Manufacturing GmbH 5204 East Ben White Boulevard Dresden, Saxony, Germany Austin, Texas 78741 Fab 30 Telephone: (512) 385-8542 Cleanroom size: 90,000 square feet Fab 25 Capacity (wafers/week): 6,000 Cleanroom size: 86,700 square feet (Class 1) Wafer size: 200mm Capacity (wafers/week): 6,000 Process: CMOS Wafer size: 200mm Products: MPUs, logic ICs, R&D Process: CMOS Feature size: 0.25µm (0.18µm capability) Products: MPUs, logic ICs, flash memories (Expected to start production by the end of 1998). Feature sizes: 0.35µm, 0.5µm (0.25µm capability)

2-38 North American Company Profiles AMD

Fujitsu AMD Semiconductor Ltd. (FASL) Fujitsu AMD Semiconductor Ltd. (FASL) Aizuwakamatsu, Fukushima Prefecture, Japan Aizuwakamatsu, Fukushima Prefecture, Japan FASL I FASL II Cleanroom size: 69,900 square feet (Class 1) Cleanroom size: 88,000 square feet Capacity (wafers/week): 5,000 Capacity (wafers/week): 6,000 Wafer size: 200mm Wafer size: 200mm Process: CMOS Process: CMOS Products: Flash memories Products: Flash memories Feature sizes: 0.35µm, 0.5µm Feature sizes: 0.25µm, 0.35µm (upgrading 0.5µm lines to 0.35µm). (Expected to start production in early 1998).

AMD’s back-end manufacturing facilities are located in Penang, Malaysia; Bangkok, Thailand; and Singapore. In 1996, AMD began the construction of a new assembly and test facility in Suzhou, China.

Key Agreements

• In February 1998, AMD announced a collaboration with Alcatel Microelectronics to license and manufacture Alcatel’s ADSL (Asymmetric Digital Subscriber Line) DMT (Discrete Multitone) technology for both “full-rate” and forthcoming ASDL “Lite” solutions. This alliance increases the availability of Digital Subscriber Line (DSL) products for the global telecommunications market.

• Micron, Motorola, and AMD joined together with DuPont Photomasks Inc. (DPI) in 1996 to form a technology venture, called DPI Reticle Technology Center, to develop advanced mask technology and provide pilot line fabrication of leading-edge reticles.

• AMD and Intel signed a new five-year cross-licensing agreement near the end of 1995 that gives the two companies rights to use each other’s patents and certain copyrights, excluding microprocessor microcode beyond the 486 generation.

• Fujitsu and AMD opened a large flash memory fabrication facility, called Fujitsu-AMD Semiconductor Ltd. (FASL), in Japan in September 1994. Production of flash memory chips began in 1Q95. FASL is currently building its second fab, also to be dedicated to flash memory production. The partnership also involves joint development of flash devices.

• , Inc. licensed its ADSP-21xx 16-bit digital signal processor core to AMD and Acer Laboratories (Taiwan) in early 1996. AMD will embed the core in communications-related ICs and Acer Labs will use it for future PC telephony and telephone-answering devices.

2-39 AMI North American Company Profiles

AMERICAN MICROSYSTEMS (AMI)

American Microsystems, Inc. 2300 Buckskin Road Pocatello, Idaho 83201 Telephone: (208) 233-4690 Fax: (208) 234-6795 Web Site: www.amis.com

IC Designer / Manufacturer / Foundry Founded: 1966, Idaho

Regional Offices/Representative Locations

Japan: AMI-Japan • Nerima-ku, Tokyo, Japan Telephone: (81) (3) 5399-7831 • Fax: (81) (3) 5399-7834

Europe: AMI-GmbH • Dresden, Germany Telephone: (49) (351) 31-99-1506 • Fax: (49) (351) 31-99-1507

Financial History ($M)

1992 1993 1994 1995 1996 1997 Sales 135 150 171 221 256 300

Employees 1,685 1,657 1,265 1,265 1,439 1600

Ownership: 100% of the capital stock is owned by Japan Energy Corporation of Tokyo.

Company Overview and Strategy

American Microsystems Inc. (AMI) was a pioneer in the development of application specific ICs (ASICs). Today, AMI’s core business is to provide its customers with the best ASIC solution by leveraging its digital and mixed- signal design capabilities and its Class 1 manufacturing facilities. AMI has a full compliment of design, production, and packaging capabilities.

The company offers a broad range of digital and mixed-signal ASICs, ASIC translation services, wireless application-specific standard products (ASSPs) and CMOS foundry services with extremely short design-to- production cycles.

Customers depend on AMI for a broad variety of ASIC-related services and products: FPGA to ASIC conversions; second sourcing of an ASIC; production of an ASIC originally produced on an obsolete process; customer design of digital and mixed-signal ASICs; foundry services; and a very popular line of wireless standard products.

2-40 North American Company Profiles AMI

The company is comprised of eight business units: Communications ASICs; Industrial ASICs (for medical equipment, power management, building and process controls); Inter-market ASICs (to support all other ASIC applications); Translation ASICs (design translation services i.e., converting programmable logic to lower cost gate array or standard cell ASICs, and second source existing ASIC designs); Communications Standard Products (using DSS Technology to allow low-power, high data-rate wireless communications); Timing Generator Products (products based on clock synthesis and frequency timing generators); Foundry services; and Design Technology (supporting day-to-day business operations and developing strategic direction for design methodologies, tool libraries, capabilities, etc.). Each of the units has the responsibility to engineer, market and sell their respective products and services. To support the design function of each business unit, AMI maintains a digital ASIC Standard library that contains more than 500 cells that operate from 2.5 to 5.5 volts. The library supports gate arrays and standard cells.

AMI sells its services and products through a worldwide network of sales representatives and operates nine design centers around the world. AMI is a QS9000/ISO9000 qualified supplier.

2-41 AMI North American Company Profiles

Management

Gerald "Jerry" E. Homstad President and Chief Executive Officer Harold Blomquist Senior Vice President, Business Operations Dan Schroeder Senior Vice President, Operations Brian Harris Vice President, N. American Sales Tom Schiers Vice President, Strategic Accounts Al Morrison Vice President, Foundry Steve Ransom Vice President, Timing Generator Products Vince Hopkin Director, Translation ASICs Bob Klosterboer Director, Inter-Market ASICs Bob Smith Director, Design Technology Grant Hulse Director, New Business Development Chris Laytun Director, Industrial ASICs

Products and Processes

AMI offers the latest state-of-the-art 0.35µm manufacturing process, but unlike many competitors, also continues to support earlier 1.0µm processes. AMI produces digital and mixed-signal ASICs using a 0.6µm single-poly, double- or triple- metal CMOS process. Low-voltage, low pad-width, 0.5µm processes are up and running.

Already, AMI has begun production of a 3.3 volt, low pad pitch, high digital performance 0.5µm CMOS process. This low-voltage submicron process has interested customers producing products with high gate counts that require low power but also high performance. This process is also attractive to customers who are concerned about input/output pad pitches and availability of cores. Using this process it is possible to cost effectively develop products with 50,000 to 200,000 gates. The density is about 8,000 gates/mm for standard cell and close to 8,000 gates/mm for gate arrays. Work is also in progress to qualify a 0.35µm process. At 0.35µm, Fab 10 is a Class-1 facility, focused on small volume production.

AMI offers the following products and services:

• Standard-cell and gate array digital ASICs • Mixed-signal ASIC development services • Digital and mixed-signal ASIC design software • Wireless ICs (includes mask programmable system devices) • Foundry services • Contract design and manufacturing • Custom packaging

In 1997, AMI released several wireless IC devices targeting the direct sequence spread spectrum (DSSS) IC market. The three devices include a transceiver, receiver-only, and a transmit-only device, and are designed for various applications including security systems and remote medical devices. This product allows the customer to use a number of modulation techniques that support data rates as high as 4Mbits/second. With SX043 at 4Mbits/second, a 10Mbytes game file can be downloaded from the in less than 30 seconds versus 30 minutes with the standard 33.6Kbits PC modem.

2-42 North American Company Profiles AMI

Semiconductor Fabrication Facilities

AMI AMI Pocatello, Idaho Pocatello, Idaho 83201 Fab 9 Fab 10 Cleanroom size: 34,000 sq. ft. (Class 10) Cleanroom size: 20K to 40K sq. ft. (Class 1) Capacity (wafers/week): 6,500 Capacity (wafers/week): 5,000 Wafer size: 125mm Wafer size: 200mm Processes: CMOS, NMOS Process: CMOS Products: ASICs, ROMs, telecom and datacom ICs, Feature sizes: 0.35µm-0.8µm MCMs, foundry services. (Operations began in mid-1997). Feature sizes: 0.6µm-5.0µm CMOS; 3.0µm-5.0µm NMOS.

AMI maintains a 64,000 sq. ft. facility in the Philippines that performs assembly and final testing. The AMI facility in Pocatello includes a 27,000 sq. ft. test area.

2-43 Anadigics North American Company Profiles

ANADIGICS

Anadigics, Inc. 35 Technology Drive Warren, New Jersey 07059-5197 Telephone: (908) 668-5000 Fax: (908) 668-5068 Web Site: www.anadigics.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Anadigics, Inc. • Somerset, England Telephone: (44) (1935) 822611 • Fax: (44) (1935) 826696

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 20 29 35 51 69 103 Net Income (2) 2 2 7 12 15 R&D Expenditures 5 7 9 12 12 17 Capital Expenditures — 2 5 9 16 52

Employees 115 200 270 320 430 577

Ownership: Publicly held. NASDAQ: ANAD.

Company Overview and Strategy

Anadigics was founded in 1985 when it initiated macrocell development. A year later, it completed construction of its wafer fab, and in 1987, started GaAs IC production with the introduction of both MMIC and fiber optic IC products. Today, the company is a leading designer and producer of GaAs ICs for high-volume, high-frequency receiver applications. The company launched its initial public offering in April 1995.

The company had originally relied on defense contracts to survive. However, with lucrative military pacts becoming more of a rarity, Anadigics looked to the commercial and consumer electronics marketplaces to sell its products. Today, Anadigics has established itself as a leading supplier of high-volume, low-cost, high-performance analog GaAs ICs for applications including direct broadcast satellite (DBS) systems, cable TV systems, cellular phones, fiber optic communications, and personal communication systems (PCS).

2-44 North American Company Profiles Anadigics

Management

Ron Rosenzweig President and Chief Executive Officer Charles Huang, Ph.D. Executive Vice President, Products and Engineering John F. Lyons Senior Vice President and Chief Financial Officer Bruce Diamond Senior Vice President, Operations Robert Baytuns Vice President, Research and Technology Sheo Khetan Vice President, Manufacturing Javed S. Patel Vice President, Marketing and Sales Phillip Wallace Vice President, Product Development James Gilbert Vice President, Device and Process Engineering

Products and Processes

Among the company's GaAs IC products are low-noise block converters and tuners for DBS systems, upconverter chips for use in cable TV converters, cellular PCs, telephone power amplifiers and receivers, and fiber optic (SONET) transimpedence amplifiers. Anadigics produces all of its ICs using its GaAs MESFET process.

Semiconductor Fabrication Facilities

In 1997, the company completed the conversion of its existing fab from 3 inch to 100mm wafers. Anadigics is in the process of constructing an additional facility for both manufacturing and administration purposes. The 166,000 square foot facility, also located in Warren, New Jersey, will house a 12,000 square-foot Class 100 cleanroom that will manufacture 100mm GaAs wafers. Production to begin in late 1998 or early 1999.

Anadigics, Inc. Anadigics, Inc. 35 Technology Drive 141 Mt. Bethel Road Warren, New Jersey 07059-5197 Warren, New Jersey 07059 Cleanroom size: 8,000 square feet (Class 100) Cleanroom size: 12,000 square feet (Class 100) Capacity (wafers/week): 500 Capacity (wafers/week): 500 Wafer size: 100mm Wafer size: 100mm Process: GaAs MESFET Process: GaAs MESFET Feature size: 0.5µm (Production to begin in late 1998 or early 1999).

2-45 Analog Devices North American Company Profiles

ANALOG DEVICES (ADI)

Analog Devices, Inc. One Technology Way P.O. Box 9106 Norwood, Massachusetts 02062-9106 Telephone: (781) 329-4700 Fax: (781) 326-8703 Web Site: www.analog.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Analog Devices, GmbH • Munich, Germany Telephone: (49) (89) 57005-0 • Fax: (49) (89) 57005-527

Japan: Analog Devices, K.K. • Minato-Ku, Tokyo, Japan Telephone: (81) (3) 5402-8210 • Fax: (81) (3) 5402-1063

Asia-Pacific: Analog Devices Hong Kong, Ltd. • Hong Kong Telephone: (852) 2506-9336 • (852) 2506-4755

Financial History ($M), Fiscal Year Ends October 31

1992 1993 1994 1995 1996 1997 Sales 567 666 773 942 1,194 1,243 Net Income 15 44 74 119 172 178 R&D Expenditures 88 94 107 134 178 196 Capital Expenditures 66 67 91 213 234 179 Foundry Fab Investment — — — 14 49 54

Employees 5,200 5,300 5,400 6,000 6,900 7,800

Ownership: Publicly held. NYSE: ADI.

Company Overview and Strategy

Analog Devices is a leading manufacturer of precision high performance integrated circuits used in analog and digital signal processing. ADI offers leadership products in analog, mixed-signal, and digital signal processing.

2-46 North American Company Profiles Analog Devices

The company manufactures and markets a broad line of high-performance linear, mixed-signal and digital integrated circuits (ICs) that address a wide range of real-world signal processing applications. The company’s principal products include system-level ICs and general purpose, standard product linear ICs. Other products include devices manufactured using assembled product technology, such as hybrids, which combine unpackaged IC chips and other chip-level components in a single package.

Analog Devices’ business strategy for many years has focused on developing, manufacturing and marketing integrated circuits (ICs) used for signal processing. Their products enable their customers—which are primarily original equipment manufacturers (OEMs)—to process real-world analog signals, such as voice, video, audio, temperature, pressure, acceleration and many others, in both the analog and digital domains.

Analog Devices maintains a strong focus on Standard Linear ICs, or SLICs. Approximately 60 percent of their revenues come from this product category, and the majority of that comes from data converters and amplifiers. ADI has its focus on power management and interface ICs, the two other major SLIC product categories.

Over the past few years Analog Devices has become a major supplier of digital signal processing ICs, or DSPs. They provide both general-purpose DPSs and system-level ICs, which integrate analog and digital signal processing technology to provide highly integrated solutions to leading manufacturers of communications, computer and high-end consumer products. ADI provides system-level ICs that do not require DSP for selected applications in markets such as automatic test equipment.

2-47 Analog Devices North American Company Profiles

Management

Ray Stata Chairman Jerald G. Fishman President and Chief Executive Officer Ross Brown Vice President, Human Resources David D. French Vice President and General Manager, Computer Products Division Russell K. Johnsen Vice President and General Manager, Communications Division Robert R. Marshall Vice President, Worldwide Manufacturing William A. Martin Treasurer Robert McAdam Vice President and General Manager, Standard Linear Products Division Brian P. McAloon Vice President, Sales Joseph E. McDonough Vice President, Finance, and Chief Financial Officer H. Goodloe Suttler Vice President, Marketing, Quality, and Planning Franklin Weigold Vice President and General Manager, Transportation and Industrial Products Division

Products and Processes

Analog continues to develop new products such as: the ADXL202, 3.0V accelerometer; the Enhanced AD20msp425 GSM chipset; and the Pentium® II PC Life Guard™. ADI also offers high-performance linear, digital, and mixed-signal ICs such as data converters, amplifiers, voltage references and comparators, signal processors and conditioners, application-specific ICs for the consumer, disk drive, telecommunications, and automotive industries, and temperature and accelerometer sensors.

SLICs Analog Devices principal SLIC products are high-performance amplifiers and data converters. Other SLIC products include analog signal processing devices, voltage references, and comparators. High-speed products introduced in 1996 included the company’s first RF and IF SLICs, which operate at up to 2GHz. The company continues to expand its SLIC product line to include offerings in areas where it traditionally has had limited focus, primarily interface circuits and power management ICs, and to include a much larger number of products designed to operate from single-supply 3-volt or 5-volt power sources.

System-Level ICs ADI’s system-level ICs include general-purpose DSPs and multi-function devices that feature high levels of functional integration on a single chip. All of the company’s DSPs share a common architecture and code compatibility. The company is aggressively pursuing the 32-bit floating-point DSP market with its line of SHARC™ products. The ADSP-21061 features high performance of 120 MFLOPS, 1M of on-chip dual-port SRAM, and 240 Mbytes/sec I/O bandwidth.

Most of the company’s other system-level ICs are mixed-signal devices (with some incorporating a DSP core) and special-purpose linear ICs generally designed to meet the needs of a specific application. The company also offers sensors and surface micromachined ICs.

2-48 North American Company Profiles Analog Devices

Assembled Products The company’s assembled products consist of hybrids, multichip modules (MCMs), and printed-board modules (primarily I/O modules used in industrial control and factory automation equipment).

In addition to utilizing standard bipolar and CMOS process technologies, ADI employs a number of proprietary processes specifically tailored for use in manufacturing high-performance linear and mixed-signal SLICs and system-level ICs.

Semiconductor Fabrication Facilities

Analog Devices meets most of its need for wafers fabricated using linear and mixed-signal processes with company-owned production facilities and uses third-party wafer fabricators for most wafers that can be produced on industry-standard digital processes. Its two principal foundries are Taiwan Semiconductor Manufacturing (TSMC) and Singapore’s Chartered Semiconductor Manufacturing.

During 1995 and 1996, Analog Devices expanded its relationships with TSMC and Chartered in response to the rapid growth of its systems IC business. These transactions included an equity investment in Chartered, advanced payments to both Chartered and TSMC in order to secure access to future wafer capacity, and most significantly, the announcement of a joint venture agreement with TSMC and other investors to construct and operate a fab facility in Camas, Washington. ADI agreed to invest $140 million in the joint venture, called WaferTech, in return for an 18 percent equity ownership and up to 27 percent of the plant’s total output.

ADI converted its company-owned fabrication facility in Wilmington, Massachusetts from 100mm to 150mm wafer production for high-speed linear devices. In addition, ADI upgraded and modernized the fab in Sunnyvale, California, it acquired from Performance Semiconductor in 1995.

In 1996, Analog Devices established a wafer fabrication facility in Cambridge, Massachusetts, dedicated to the development and production of the company’s surface micromachined ICs. The fab is located in a building previously used by Polaroid Corporation as an R&D fab.

Analog Devices, Inc. Analog Devices, Inc. Semiconductor Division PMI Division 804 Woburn Street 1500 Space Park Drive Wilmington, Massachusetts 01887 Santa Clara, California 95052 Cleanroom size: 34,000 square feet Capacity (wafers/week): 1,750 Capacity (wafers/week): 2,500 Wafer size: 100mm Wafer sizes: 100mm, 150mm Processes: CMOS, BiCMOS, bipolar Processes: CMOS, BiCMOS, bipolar Products: Linear and mixed-signal ICs Products: Linear and mixed-signal ICs, DSPs, ASICs Feature size: 1.5µm Feature sizes: 1.0µm CMOS 1.5µm BiCMOS, bipolar 4.0µm BiCMOS, complementary bipolar

2-49 Analog Devices North American Company Profiles

Analog Devices, Inc. Analog Devices Ireland, Ltd. 610 East Weddell Drive Bay F-1, Raheen Industrial Estate Sunnyvale, California 94089 Limerick, Ireland Cleanroom size: 20,000 square feet Cleanroom size: 15,000 square feet Capacity (wafers/week): 3,500 Capacity (wafers/week): 7,000 Wafer size: 150mm Wafer sizes: 100mm, 150mm Processes: BiCMOS, complementary bipolar Processes: CMOS, BiCMOS Products: Linear ICs Products: Linear and mixed-signal ICs, ASICs (Acquired from Performance Semiconductor in 1995). Feature sizes: 0.6µm, 1.0µm, 2.0µm

WaferTech, LLC Camas, Washington Capacity (wafers/week): 7,500 Wafer size: 200mm Process: CMOS Products: Foundry Feature sizes: 0.25µm, 0.35µm (Joint venture between TSMC, Analog Devices, Altera, and ISSI. ADI owns 18 percent. Scheduled to begin operations in late 1998).

Analog Devices has its own test and assembly facilities located in California, Massachusetts, North Carolina, Ireland, the Philippines, and Taiwan.

Key Agreements

• In March 1998, Analog Devices announced an agreement with Pacific Microsonics to include its HDCD® Process technology on the ADSP-21061 SHARC® 32-bit digital signal processor (DSP), to result in the industry’s first 32-bit HDCD decoder.

• In March 1998, ADI and Aware, Inc. announced an expanded strategic partnership for asymmetric digital subscriber line (ADSL) and DSL Lite chipset development. Under the new relationship, ADI will receive broader access to Aware’s technology and software, which will allow ADI to directly provide complete software and silicon support to its customers.

• In early 1997, Analog Devices licensed TEMIC Semiconductors its ADSP-21020 DSP architecture. TEMIC will build radiation-tolerant versions of the high-performance 32-bit floating-point DSP.

• In October of 1997, SST and Analog Devices, Inc. (ADI) announced a licensing agreement to use SST’s SuperFlash™ technology in a variety of ADI products.

• ADI licensed its ADSP-21xx 16-bit digital signal processor core to AMD and Acer Laboratories (Taiwan) in early 1996. AMD will embed the core in communications-related ICs and Acer Labs will use it for future PC telephony and telephone-answering devices.

2-50 North American Company Profiles Analog Devices

• Analog Devices announced a license agreement with Hitachi in February 1996, for Hitachi’s 16-bit microprocessor H8/300H core. ADI also has the option of licensing Hitachi’s next-generation H8S/2000 core. The core will be used by ADI’s Wireless Communications Division.

• In early 1996, Aspec Technology licensed to Analog Devices its high-density ASIC architectures. The agreement includes Aspec’s family of embedded array and standard cell architectures, as well as associated design tools.

• Analog devices entered an agreement with Noise Cancellation Technologies Inc. (NCT) to provide design and foundry services for NCT's first line of custom .

• Analog Devices is working with DSP Group to provide DSP Group's TrueSpeech voice compression technology on ADI's digital signal processors.

• Analog Devices has an alliance with IBM in the joint design, production, and marketing of mixed-signal and RF ICs based on IBM's silicon-germanium (SiGe) process technology.

• Analog Devices is developing surface micromachined accelerometers with Delco Electronics (now Delphi) and Lockheed-Martin for both defense and commercial applications.

2-51 Aptos North American Company Profiles

APTOS SEMICONDUCTOR CORPORATION

Aptos Semiconductor Corporation 2254 North First Street San Jose, California 95131 Telephone: (408) 474-3000 Fax: (408) 474-0445 Web Site: www.aptos.com Email: [email protected]

Fabless IC Manufacturer Founded: 1993

Regional Offices/Representative Locations

Northeast/West U.S.: Aptos – Boca Raton, Florida Telephone: (561) 883-7969 • Fax: (561) 883-7970

Southeast/Central U.S.: Aptos – Raleigh, North Carolina Telephone: (919) 870-0525 • Fax: (919) 870-0472

France: Axess Technology – Cedex, France Telephone: (33) 1-4978-9494 • Fax: (33) 1-4978-0324

Italy: Newtek Italia S.P.A. – Milano, Italy Telephone: (39) 02-469-2156 • Fax: (39) 02-469-2156

Israel: El-Gev Electronics, Ltd. – Tirat-Yehuda, Israel Telephone: (972) 3-971-2056 • Fax: (972) 3-971-2407

Employees: 12

Ownership: Privately held.

Company Overview and Strategy

Aptos Semiconductor Corporation designs high-performance integrated circuits, targeted for the telecommunications, networking instrumentation, and computer markets. Aptos Semiconductor addresses the communication equipment market needs for faster equipment and increased bandwidth by combining its expertise in high-speed circuit design, with their proprietary design software, and state-of-the-art wafer processes.

The company was founded in 1993, and introduced its first product, a 256K R\SRAM, in 1994. Since that time, Aptos has introduced SRAMs in the following organizations: 32K x 8, 128x 8, 256K x 4, 64K x 16, 64K x 18. The first memory module using Aptos products was introduced in early 1995. The first non-memory product, the

2-52 North American Company Profiles Aptos

Network Associative Processor, was announced in the third quarter of 1997. Aptos was profitable in 1995, not profitable in 1996.

Products and Processes

Aptos has developed a broad family of high-speed SRAMs with performance specifications that are the fastest and lowest power for their size and organization. The products come in organizations that are 4-, 8-, 16-bits wide and are available in 256K, 1M at 5V, and 1M and 4M densities at 3.3V operating voltage. The family is available in a wide range of packages designed to fit various equipment requirements. All SRAMs are designed using wafers processed with line widths of 0.5 microns or smaller.

In the area of specialty memories, Aptos offers customers a broad line of synchronous and asynchronous FIFOs. All memory products are available to be placed on modules for space-conscience customers. FIFOs are available in x9, x18, x36 and BiFIFO configurations.

Aptos has developed a core processor technology that can search large databases in a minimum number of clock cycles, or at extremely fast rates. This core technology is known as an Associative Processor. Specific processors for different market applications are being developed using this core technology. The first family of products using the Associative Network Processor is for network systems, such as switches, bridges, and routers, and is called Network Associative Processors (NAP). The NAP circuits are programmable, reconfigurable protocols including 100Mbit Ethernet, Gigabit Ethernet, Token Ring and ATM.

Semiconductor Fabrication Facilities

Aptos has established good relationships with several pure-play wafer foundries with state-of the-art wafer processes and wafer sizes. One of Aptos’ key foundry partners is Taiwan Semiconductor Manufacturing Corporation, based in Hsin-Chu, Taiwan.

2-53 Array Microsystems North American Company Profiles

ARRAY MICROSYSTEMS

Array Microsystems, Inc. 987 University Avenue, Suite 6 Los Gatos, CA 95030 Telephone: (408) 399-1505 Fax: (408) 399-1506 Web Site: www.array.com Email: [email protected]

Fabless IC Supplier

Employees: 41

Company Overview and Strategy

Array Microsystems, a privately-held company, was founded in 1991 to design, develop, and market high- performance digital signal processing (DSP) products with a focus on video compression technologies and system level designs for multimedia applications. Array’s mission is to become the leading supplier of turnkey MPEG video encoding board solutions for personal computers (PCs).

Management

Paul Smith President and Chief Executive Officer Surendar S. Magar, Ph.D. Founder and Chief Technical Officer Tom Kopet Vice President, Systems Technology E. Flint Seaton Vice President and Chief Financial Officer Shannon Shen, Ph.D. Vice President, IC Technology Roger Westberg Vice President, Sales and Marketing Jim Larkin Vice President, Operations

Products and Processes

Array Microsystems has developed a complete line of processor and controller ICs, SRAM memory modules, software simulators, and processor boards. The company's first product family, the a66, includes proprietary VLSI chipsets, development tools, and array processor boards that set industry performance standards for frequency domain processing. Array's two-chip video compression chipset, based on unique vector data flow architecture, forms the core of the VideoFlow product family. One of the chips is called an image compression coprocessor (ICC) and the other a motion estimation coprocessor (MEC).

Semiconductor Fabrication Facilities

Array Microsystems is a fabless IC supplier. The company's devices are produced by other companies, including Samsung and .

2-54 North American Company Profiles Array Microsystems

Key Agreements

• Array Microsystems has a technology development pact with Samsung that provides Array with a strong foundry partnership. The two companies codeveloped the initial VideoFlow video compression technology. The deal provides Array with access to Samsung's advanced 0.5µm and 0.35µm CMOS fab capacity for the manufacture of its products. In 1993, Samsung secured a 20 percent equity ownership position in Array Microsystems, and in mid-1995, Samsung increased its stake to 37 percent.

2-55 Aspec Technology North American Company Profiles

ASPEC TECHNOLOGY

Aspec Technology, Inc. 830 East Arques Avenue Sunnyvale, CA 94086 Telephone: (408) 774-2199 Fax: (408) 522-9450 Web Site: www.aspec.com Email: [email protected]

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends November 30

1996 1997 Sales 15 22 Net Income 3 2

Employees — 127

Ownership: Publicly held. NASDAQ: ASPC.

Company Overview and Strategy

Founded in 1991, ASPEC Technology Inc. provides designs and design implementation tools to ASIC vendors, IC companies and system houses. Customers include: AMD, Hyundai, , Samsung, Winbond and Yamaha.

These tools are used with process technologies ranging from 0.8 micron to 0.25 micron.

Management

Dr. Conrad ’Oca President and Chief Executive Officer Mitchell Bohn Chief Operating Officer Jai Shin Executive Vice President Patrick Y.C. Yin Senior Vice President Yen C. Chang Senior Vice President, Engineering Jim Behrens Vice President, Business Development Charles Kummeth Vice President, Marketing Edward Wan Vice President, Design Services

2-56 North American Company Profiles Aspec Technology

Key Agreements

In April 1998, Aspec Technology acquired SIS Microelectronics, Inc. in exchange for the issuance of an aggregate of 400,000 shares of common stock. SIS Microelectronics is an engineering design services company that has approximately 20 employees. The acquisition will expand Aspec’s engineering design services capacity.

2-57 Atmel North American Company Profiles

ATMEL

Atmel Corporation 2325 Orchard Parkway San Jose, California 95131 Telephone: (408) 441-0311 Fax: (408) 436-4200 Web Site: www.atmel.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Atmel Japan K.K. • Chuo-ku, Tokyo, Japan Telephone: (81) (3) 3523-3551 • Fax: (81) (3) 352-7581

Europe: Atmel U.K. Ltd. • Camberley, Surrey, England Telephone: (44) (1276) 686677 • Fax: (44) (1276) 686697

Asia-Pacific: Atmel Asia, Ltd. • Kowloon, Hong Kong Telephone: (852) 2721-9778 • Fax: (852) 2722-1369

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 140 222 375 634 1,070 958 Net Income 14 30 59 114 202 1.8 R&D Expenditures 18 26 43 70 110 138 Capital Expenditures 14 74 183 270 400 315

Employees 998 1,250 1,900 2,900 3,900 4,150

Ownership: Publicly held. NASDAQ: ATML.

Company Overview and Strategy

Atmel designs, manufactures, and markets a broad array of high-performance CMOS memory, logic, and analog integrated circuits. Founded in 1984, the company serves the manufacturers of communications equipment, computers, and computer peripherals as well as producers of instrumentation, consumer, automotive, military, and industrial equipment. Many of Atmel's ICs are based on its proprietary non-volatile memory technology. The company's name was derived from Advanced technology: memory and logic.

2-58 North American Company Profiles Atmel

Atmel is a leading supplier of EPROM, EEPROM, and flash memory components. Nevertheless, the company is shifting its focus away from being primarily a memory company toward having a balanced portfolio of memory and logic products. Still, the company hopes to continue expanding its share of the memory market even as logic products take over a larger share of its production capacity.

Atmel has made several acquisitions over the past few years in support of its core product lines, non-volatile memory and logic ICs. The company bought out FPGA supplier Concurrent Logic in 1993, acquired Seeq Technology's EEPROM product line in early 1994, and made a minority investment in SRAM producer Paradigm Technology in 1995, in return for certain SRAM product rights. In 1996, Atmel acquired an 8-bit RISC architecture and design team from Nordic VLSI in Trondheim, Norway. Also in 1996, the company acquired DSP architecture and development from an organization called TCSI in Berkeley, California.

The company’s most substantial acquisition came in April 1995, when it purchased a majority interest (75 percent) in the French IC manufacturer ES2. By the end of 1995, Atmel increased its ownership of the company to more than 90 percent and renamed it Atmel-ES2. Atmel expanded Atmel-ES2’s existing fab facility and constructed a new 0.35µm, 200mm wafer fab.

2-59 Atmel North American Company Profiles

Management

George Perlegos Chairman, President, and Chief Executive Officer Gust Perlegos Executive Vice President and General Manager Tsung-Ching Wu Executive Vice President, Technology Bernard Pruniaux Chief Executive Officer, Atmel-ES2 Operations Chih Jen Senior Vice President and General Manager, Asian Operations Ralph Bohannon Vice President, Manufacturing Kris Chellam Vice President, Finance and Administration, and Chief Financial Officer James Hu Vice President, Process Development B. Jeffrey Katz Vice President, Marketing Ken Kwong Vice President, North American Sales Krish Panu Vice President, MCU, PLD, FPGA Operations Steve Schumann Vice President, Non-Volatile Products Mikes Sisois Vice President, Planning and Information Systems Graham Turner Vice President, European Operations Tashiki Wada Vice President, Atmel Japan

Products and Processes

Atmel's products are outlined below.

NonVolatile Memory ICs • EPROMs — Standard, high-speed, and low-voltage parts ranging in density from 256K to 8M. • EEPROMs — Serial-interface parts ranging in density from 1K to 1Mb. — Parallel-interface parts ranging in density from 4K to 4M. • Flash memories — Single voltage supply (5V or 2.7V) parts ranging in density from 256K to 8M.

Programmable Logic Devices and Field Programmable Gate Arrays • PLDs — Generic PAL-type ICs including fast, low-power, and 3V flash-based versions of the standard 22V10, 16V8, and 20V8. — Complex PLDs with densities to 10,000 gates. • FPGAs — SRAM-based devices with 2,000 to 40,000 usable gates and very low power. Partial or full reconfiguration, in system, during normal operation. ASIC Devices • Gate arrays — High speed with up to 1.2 million routable gates. • RFID ASICs — Analog, digital, and memory on a single-chip ASIC. • Cell based ASICs — Mixed-technology (Digital, Analog, NVM).

Other Products • Microcontrollers — Combine Intel's 80C51 core logic or Atmel’s proprietary AVR 8-bit RISC core logic with 1KB to 128KB of Atmel's flash memory, and 256 Bytes - 2KB of EEPROM. • Standard logic devices — Multimedia system, controllers/chipsets. • Flash memory cards. • Spread spectrum cordless phone chipset.

2-60 North American Company Profiles Atmel

Atmel uses proprietary CMOS and BiCMOS technologies for the processing of its chips. Most products are produced with 0.6µm and 0.5µm line widths. The company's newest Colorado Springs fab facility is capable of producing ICs with 0.35µm feature sizes, as is the newest fab in Rousset, France.

Semiconductor Fabrication Facilities

Atmel announced plans to build its next sub-half micron CMOS wafer fab facility, to be called Fab 8, adjacent to its existing Colorado Springs, Colorado facilities. The facility will house a 75,000 square-foot cleanroom.

Atmel Corporation Atmel Corporation 1150 East Cheyenne Mountain Boulevard 1150 East Cheyenne Mountain Boulevard Colorado Springs, Colorado 80906 Colorado Springs, Colorado 80906 Telephone: (719) 567-3300 Telephone: (719) 567-3300 Fab 3 Fab 5 Cleanroom size: 33,900 square feet (Class 10) Cleanroom size: 43,000 square feet (Class 1) Capacity (wafers/week): 7,250 Capacity (wafers/week): 9,000 Wafer size: 150mm Wafer size: 150mm Processes: CMOS, BiCMOS Process: CMOS Products: EEPROMs, EPROMs, flash memories, Products: EEPROMs, flash memories, EPROMs, logic. PLDs, FPGAs, ASICs, MCUs, linear ICs. Feature size: 0.35µm Feature sizes: 0.5µm, 0.8µm, 1.0µm

Atmel-ES2 Atmel-ES2 Zone Industrielle Zone Industrielle 13106 Rousset Cedex 13106 Rousset Cedex France France Telephone: (33) (4) 42-33-40-0 Telephone: (33) (4) 42-33-40-0 Fab 6 Fab 7 Cleanroom size: 15,000 square feet Cleanroom size: 60,000 square feet Capacity (wafers/week): 2,000 Capacity (wafers/week): 7,000 (at full equipment ramp) Wafer size: 150mm Wafer size: 200mm Process: CMOS Process: CMOS Products: Cell-based ASICs, MCUs Products: Cell-based ASICs, MCUs, flash memories Feature sizes: 0.6µm, 0.8µm, 1.0µm Feature sizes: 0.25µm, 0.35µm, 0.6µm

Atmel maintains a facility for IC test and qualification at its headquarters in San Jose and assembly work is performed offshore.

2-61 Atmel North American Company Profiles

Key Agreements

• Atmel licensed “Oak” and “Pine” DSP core logic and development tools from DSP Group in 1996.

• Atmel-ES2 licensed from Advanced RISC Machines in mid-1995, the ARM7DMI 32-bit RISC processor core and associated software tools. The company will develop standard Flash-based MCUs using this architecture.

• Atmel has a cross-licensing and product exchange agreement with Semiconductors covering several of each company's proprietary PLDs.

• Atmel established an agreement with Wireless Logic Inc. of Hong Kong in 1994 that calls for the codevelopment and joint marketing of special-purpose DSP and microcontroller chipsets for the spread- spectrum wireless communications market.

• Atmel and Poloroid established an agreement in 1997 to co-develop CMOS image sensing and color processing and image storage chipsets.

• Atmel acquired the intellectual property assets and development processes of Nordic VLSI in 1995, and has developed the AVR 8-bit RISC MCU family in the resulting Atmel-Norway design center.

• Atmel acquired the intellectual property assets and development resources of Fincitec in 1997, and is developing mixed technology MCU products in the resulting Atmel-Finland design center.

• Atmel acquired the intellectual property assets and development resources of Digital Resource Electronics Acoustic Music (DREAM) in 1996, and has developed the DREAM™ family of Music Synthesizer products in the resulting Atmel-Dream design center in France.

• Atmel acquired digital signal processing intellectual property assets and a development team, from Telecommunications Systems, Inc. (TCS) in 1996, and is developing wireless communications chipsets in the resulting Atmel-Berkely design center.

2-62 North American Company Profiles Auctor Corp. / ACC Microelectronics Corp.

AUCTOR CORPORATION / ACC MICROELECTRONICS CORPORATION

Auctor Corporation / ACC Microelectronics Corporation 2401 Walsh Ave., 2nd Floor Santa Clara, California 95051 Telephone: (408) 980-0622 Fax: (408) 980-0626 Web Site: www.auctorcorp.com & www.accmicro.com

Fabless IC Supplier Founded: 1987

Company Overview and Strategy

Auctor Corporation is a leading manufacturer of Windows-based connectivity products for computer, communication and consumer applications. The company’s strength is in creating single chip system controller solutions, which formally trademarked the term Single Chip SolutionÒ. Auctor Corporation gained its reputation being the first in creating single chip system controller solutions for 16-, 32- and 64-bit x86 portable system designs.

ACC Microelectronics is a leading manufacturer of Low Power Logic (LPL) controller chips for a variety of VLSI circuit devices in computer system control, computer system board integration, and communication applications.

Management

Wei-Tau Chiang, Ph.D. President and Chief Executive Officer Mark Shieu Vice President, Engineering

Products and Processes

The Auctor companies provide chipsets and controller chips for 386/486-based and Pentium-based computers. Other products include buffer chips, power management chips, peripheral controllers, and mixed-signal chips.

Auctor is a leader in the production of connectivity products. Options include memory controllers, advanced power management controllers, floppy disk controllers, parallel ports, keyboard and mouse controllers, LCD controllers, integrated peripheral controllers, and advanced connectivity products.

The MapleÔ Engine, a trademark of Auctor Corporation, is an ultra-integrated 486 based “system-on-a-chip” that will provide software and hardware capabilities and versatility for multimedia electronics and embedded solutions as well as a single chip processing engine for the sub-subnotebook and micro-notebook markets. Other products include the ACC2089, which is a 486 Super Chip Solution with highly integrated PCI-based system design features, and the ACC2051 (Pentium-class counterpart) are also for embedded and portable systems applications.

2-63 Auctor Corp. / ACC Microelectronics Corp. North American Company Profiles

Auctor offers products for consumer and industrial applications: the “Memphis” connectivity controller, the DataLink Processor and the ACC 3350 Ultra Fast controller/ACC 3360 Ultra Wide SCSI controller. These products provide high performance solutions for data intensive applications such as video conferencing, on-demand interactive entertainment by implementing multimedia connectivity with consumer devices such as set-top boxes, VCRs, DVD, camcorders, digital cameras, HDTVs, hard disks, printers and scanners.

Semiconductor Fabrication Facilities

Auctor works with world class, quality foundry partners.

ACC Micro has second-source licensing agreements with Motorola to support delivery schedules.

2-64 North American Company Profiles Audio DigitalImaging Inc

AUDIO DIGITALIMAGING INC. (ADI)

Audio DigitalImaging Inc. 511 West Golf Road Arlington Heights, Illinois 60005 Telephone: (847) 439-1335 Fax: (847) 439-1533 Web Site: www.adi.net

Fabless IC Supplier Founded: 1989

Ownership: Publicly held. NASDAQ: ADIKF and VSE: ADH.

Company Overview and Strategy

Audio DigitalImaging Inc., a subsidiary of ADI Technologies, Inc., specializes in the design and development of ICs for digital video and audio compression multimedia components. ADI chip components are designed for use in PC printed circuit boards, add-in PC boards and other multimedia products including television set-top receiver boxes, digital TVs and DVD players.

Products and Processes

ADI has developed a unique “system-on-chip” design within a family of ASIC components, Apogee&trade. ADI’s MPEG chip technology incorporates many system management features, such as system transport layer management, and into all of its Apogee&trade products which eliminate the need to use multiple external chip components or firmware. ADI expects to introduce its MPEG video and audio decode-only chips, the Apogee D-1 and D-2, in 1998.

The ADI MPEG Audio Player (AMAPLAY) is a full featured, high quality 32-bit MPEG audio player for use with and NT. AMAPLAY was optimized for MPEG sound quality. AMAPLAY is representative of the audio quality that is used in the Apogee Series of MPEG ASICs. Features full stereo playback support; decodes and plays MPEG1, MPEG2, layer 1 and layer 2 audio files; auto re-sync on corrupt MPEG audio streams; supports fast forward and rewind; and slide bar can be dragged forward or reverse, even while player is decoding.

Semiconductor Fabrication Facilities

ADI Inc.’s fabrication and production services are provided by IBM.

Key Agreements

•ADI and have established a long-term business agreement that validates ADI’s algorithmic solutions and methodologies.

2-65 North American Company Profiles

AUREAL SEMICONDUCTOR

Aureal Semiconductor 4245 Technology Drive Fremont, CA 94538 Telephone: (510) 252-4400 Fax: (510) 252-4400 Web Site: www.aureal.com Email: [email protected]

Fabless IC Supplier Founded: 1995

Financial History ($000s), Fiscal Year Ends December

1995 1996 1997 Sales 47,474 3,485 1,640 Net Income (loss) (103,833) (17,020) (17,690) R&D Expenditures 6,730 6,231 7,425 Capital Expenditures 277 590 881

Employees — — 81

Ownership: Publicly held. AURL (OTC Bulletin Board).

Company Overview and Strategy

Aureal develops and markets advanced audio semiconductor and software solutions. Applications for Aureal’s digital audio technology include PCs, consumer devices, and sound studios.

Aureal has progressed in setting the 3D audio standard for future PC platforms by licensing its A3D Interactive audio technology to several leading PC audio manufacturers (including , S3, LSI Logic, Cirrus Logic, Rockwell International, Analog Devices and Oak Technology), and providing support to world-class game and Internet software developers (such as Activision, LucasArts, Electronic Arts, Psygnosis, Acclaim, GT Interactive, Terratec Electronic GmbH, Dell Computer, and Interplay).

2-66 North American Company Profiles Aureal Semiconductor

Aureal’s strategy to be a leading supplier of advanced audio solutions to the consumer electronics and PC markets is supported by their continuing development. Rather than burdening the audio device with the entire computational task related to audio, the audio accelerator is developed to be used in conjunction with the computing power of the general-purpose host CPU. The audio accelerator only provides enough additional computational power to significantly off-load the main CPC while providing baseline audio performance which would completely overwhelm the main CPU if delivered through software alone. Aureal is developing devices targeted to the consumer marketplace which provide lower system cost through integration of digital, analog and other audio system functions. The existing VSP901 provides Surround Sound quality through a two speaker presentation. Further products under development address Dolby , and provide integration of various components of the audio sub-system of consumer market products.

Revenues for 1997 totaled $1.6 million resulting primarily form technology licensing transactions, with approximately 10 percent coming from semiconductor sales. Aureal’s products are sold via local sales representatives and distributors throughout North America, Europe and Asia.

Management

Kip Kokinakis President, Chief Executive Officer and Director Scott Foster Chief Technical Officer Gary Catlin Vice President, Engineering Suryanarayana “Murty” Cheruvu Vice President, Manufacturing Operations David Domeier Vice President, Finance and Chief Financial Officer Michael Hunter Vice President, Sales Sanjay Iyer Vice President, PC Products Brendan O’Flaherty Vice President, Consumer Electronics Toni Schneider Vice President, Advanced Audio Products

Products and Processes

Aureal’s A3D technology is a high quality digital audio technology that enables real-time interaction where sounds emanate from multiple sources or locations, and follow the user’s movement throughout three dimensional space, for PC and dedicated gaming platforms. A3D Interactive technology provides surround playback, through speakers, of pre-recorded media in the home theater and PC environments without the need for five- or six- speaker setups. Aureal has licensed these technologies to various semiconductor and OEM customers.

Aureal’s semiconductor devices include. • “Vortex” PCI-based AC’97 Digital Audio Accelerator (AU8820); • A3D Dolby Pro Logic virtual surround processor (VSP901); and • Music and effects processor (ASP301).

Semiconductor Fabrication Facilities

Aureal contracts with independent silicon foundries for production of its semiconductor products.

2-67 Aureal Semiconductor North American Company Profiles

Key Agreements

• In July 1998, Aureal Semiconductor and Diamond Multimedia Systems Inc. announced a major strategic alliance to co-develop and market next-generation PC audio solutions for the PC consumer and game markets.

• Aureal Semiconductor has licensing agreements with Compaq Computer, Yamaha Corporation, , LSI Logic Corporation, S3 Incorporated, ATI Technologies Inc., and Analog Devices for its A3D Surround technology.

• In May 1996, Aureal acquired 100 percent ownership of Crystal River Engineering, Inc., a leader in the field of 3D audio technology. This merger has enabled Aureal to offer hardware and software solutions for 3D audio presentation. Total recorded cost of the merger was $6.4 million.

• In August 1995, the Company announced that it was divesting its multimedia components business to implement a business plan based on development and sale of software and semiconductor solutions providing advanced audio for the PC and consumer electronics markets. In conjunction with the Company’s change in business, it formally changed its name to Aureal Semiconductor Inc.

2-68 North American Company Profiles Austin Semiconductor

AUSTIN SEMICONDUCTOR

Austin Semiconductor, Inc. 8701 Cross Park Drive Austin, Texas 78754 Telephone: (512) 339-1188 Fax: (512) 835-8358 Web Site: www.austinsemiconductor.com

Fabless IC Supplier

Financial History ($M)

1993 1994 1995 1996 1997 Sales 7 14 19 21 25

Employees 60 110 114 150 150

Ownership: Privately held.

Company Overview and Strategy

Austin Semiconductor, Inc. (ASI) was founded in 1988 to supply high-reliability semiconductors and microcircuit devices to the military and aerospace industries. In 1993, ASI acquired the Micron Semiconductor Military Products Group, and now supplies standard memory chips to those industries.

The company's business is currently divided into two distinct groups: a custom product line and a standard product line (consisting primarily of the former Micron products). At the end of 1997, about 70 percent of ASI's business was in memory products, with the balance in custom products.

Management

Roger C. Minard Chief Executive Officer H. Donald Ludwig President Marty Lanning Vice President, Marketing Ed Walker Director, Sales

Products and Processes

ASI's standard IC products include: 64K to 16M DRAMs, 64K to 4M SRAMs, and 1M VRAMs, as well as EEPROMs, flash memories, and SCSI interface processors. ASI also has the right to introduce military-grade versions of Micron's new products as they are brought out.

2-69 Austin Semiconductor North American Company Profiles

ASI's custom product capabilities include testing and packaging of a wide array of custom memory products, including DRAMs, SRAMs, EEPROMs, and flash memories, interface devices, and analog/digital communications products. ASI also offers devices manufactured using a silicon-on-sapphire (SOS) process.

Semiconductor Fabrication Facilities

ASI is a fabless IC supplier, but maintains a Class 100 assembly, packaging, and test facility on site. As part of its purchase of Micron's military products group, ASI receives wafers from Micron. The firm also uses other major manufacturers for the fabrication of its product wafers.

2-70 North American Company Profiles Benchmarq

BENCHMARQ MICROELECTRONICS

Benchmarq Microelectronics, Inc. 17919 Waterview Parkway Dallas, Texas 75252 Telephone: (972) 437-9195 Fax: (972) 437-0581 Web Site: www.benchmarq.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends December 31

1994 1995 1996 1997 Sales 23 29 40 44 Net Income 2 4 7 7 R&D Expenditures — 2 3 3

Employees — 180 235 221

Company Overview and Strategy

Benchmarq Microelectronics, founded in 1989, has a worldwide presence in the power-sensitive and portable electronic systems marketplace. It provides integrated IC and module solutions that address real-world problems in managing battery-operated, low-power, and power-sensitive equipment. Benchmarq's products are adopted by companies producing PCs, cellular phones, telecommunications equipment, and portable electronics systems.

In 1997, international sales accounted for approximately 60 percent of total sales.

Management

Derrell Coker Chairman Al Schuele President and Chief Executive Officer Jim Vernon Vice President, Sales Will Davies Vice President, Product and Market Development David Heacock Director, Marketing and Corporate Communications Loren Reifsteck Director, Quality Technology and Assurance Eric Smith Director, Manufacturing Operations Gene Armstrong Director, Product Development David Freeman Director, Applications Engineering Scott Schaefer Chief Financial Officer

2-71 Benchmarq North American Company Profiles

Products and Processes

Benchmarq's product portfolio consists of CMOS and BiCMOS mixed-signal circuits. The focus is on low-power, battery-backed ICs and ICs for battery management. Geometries on its devices range from 0.8µm to 1.2µm.

Benchmarq’s IC product families include: • Battery management ICs and modules that provide fast charge control, sophisticated battery conditioning, and “gas gauge” capacity monitoring of many different types of battery-operated systems. • Real-time clock ICs and modules, which provide highly integrated clock/calendar solutions for microcomputer- based designs. The RTCs are available with 3V or 5V operation. • Nonvolatile SRAM (nvSRAM) ICs in densities ranging from 64K to 16M. • Nonvolatile controller ICs and modules that provide power monitoring, write protection, and supply switching to convert standard SRAM and a battery backup into a reliable, predictable nonvolatile memory.

Semiconductor Fabrication Facilities

The company is fabless, relying instead on domestic and overseas foundries for wafer fabrication. Burn-in and test of ICs and value-added assembly of hybrid circuits is performed at the company's headquarters in Texas.

Key Agreements

• In March 1998, Unitrode announced that it had signed a definitive agreement to merge with Benchmarq Microelectronics, Inc. On April 17, 1998 – Unitrode and Benchmarq jointly announced that on April 15, 1998, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired. The merger remains subject to the approval of the shareholders of both companies and the satisfaction of other customary closing conditions.

2-72 North American Company Profiles Bright Microelectronics

BRIGHT MICROELECTRONICS

Bright Microelectronics, Inc. 1012 Stewart Drive Sunnyvale, CA 94086 Telephone: (408) 738-8830 Fax: (408) 738-8666 Web Site: www.brightflash.com Email: [email protected]

Fabless IC Supplier

Company Overview and Strategy

Bright Microelectronics, Inc. (BMI) was founded in 1991 to provide high-density, non-volatile flash memory that operates on a single low-voltage power supply. BMI serves the telecommunications, computers and consumer electronics markets. Bright designs, produces, and markets single low voltage products ranging from 1 Megabit to 16 Megabit densities.

Products and Processes

BMI’s patented technology is based on a split-gate cell which features source-side electron injection during the programming. A 3 micron square cell size is achieved by a contactless array architecture using a 0.6 micron technology.

The company presently has seven U.S. patents on flash technology.

BMI features three basic types of products: AMD Compatible; Application Specific; and Chipset Solutions.

In 1993, BMI developed 0.8µm technology with Sharp. In 1994, BMI developed 0.6µm technology with Hyundai. In 1995, BMI developed 0.6µm 3V technology with Ricoh. In 1996, BMI transferred 0.6µm technology to Winbond. In 1997, BMI started 0.35µm product developments.

BMI has partnerships with Ricoh – Advanced Technology/3.5V Flash; Winbond – Flash Memory Manufacturing; Hyundai – Flash Memory Manufacturing; and ISD – Multilevel Digital Storage.

2-73 North American Company Profiles

BROADCOM CORPORATION

Broadcom Corporation 16251 Laguna Canyon Road Irvine, California 92618 Telephone: (714) 450-8700 Fax: (714) 450-8710 Web Site: www.broadcom.com Email: [email protected]

Fabless IC Supplier Founded: 1991

Regional Offices/Representative Regions

North America:Broadcom Corp. • San Jose, California Telephone: (408) 501-7825 • Fax: (408) 918-0307

Broadcom Corp. • Garwood, New Jersey Telephone: (908) 233-8308 • Fax: (908) 233-9421

Broadcom Corp. • Duluth, Georgia Telephone: (770) 232-0018 • Fax: (770) 232-0211

Asia: Broadcom Corp. • Albany, Singapore Telephone: (65) 251-0388 • Fax: (65) 356-1898

Europe: Broadcom Corp. • Zeist, Netherlands Telephone: 31 (30) 6930350 • Fax: (31) 30-6930056

Broadcom Corp. • South Yorkshire, United Kingdom Telephone: (44) 1709-579770 • Fax: (44) 1709-579771

Financial History (000s), Fiscal Year Ends December 31

1993 1994 1995 1996 1997 Sales 1,138 3,636 6,107 21,370 36,955 Net Income 12 237 4 3,016 1,173 R&D Expenditures 875 1,746 2,687 5,662 16,204 Capital Expenditures — — 1,112 3,747 7,132

As of 6/98 Employees — — — 164 378

Ownership: Publicly held. NASDAQ: BRCM.

2-74 North American Company Profiles Broadcom Corporation

Company Overview and Strategy

Broadcom Corporation is a leading supplier of system-level silicon solutions for the high-speed data communications market. The Company’s highly integrated digital and mixed-signal CMOS chips are for cable-TV, cable modem, , digital broadcast satellite, XDSL and digital radio applications.

Management

Dr. Henry T. Nicholas President, Chief Executive Officer and Founder Dr. Henry Samueli Chief Technical Officer and Vice President of Research and Development William J. Ruehle Vice President and Chief Financial Officer Tim M. Lindenfelser Vice President, Marketing Aurelio Fernandez Vice President, Worldwide Sales Martin Colombatto Vice President/General Manager, Networking Business Unit Vahid Manian Vice President of Manufacturing Operations David Dull Vice President of Business Affairs and General Counsel

Products and Processes

Broadcom’s product line consists of: High-Speed Networks, Cable-TV and Cable Modem, XDSL and Direct Broadcast Satellite. The Company uses proprietary communication building blocks to develop standard and customer-specific products. Broadcom has developed a suite of silicon compilers that integrate with customers’ HDL and VHDL designs, using a specialized VLSI design methodology. These silicon compilers consist of digital filters, adaptive equalizers, modulators and demodulators, numerically-controlled oscillators, frequency synthesizers, A/D converters, D/A converters.

Broadcom Corporation’s QAMLink® product line consists of 64/256 QAM downstream demodulators and modulators, QPSK 16-QAM upstream burst demodulators and modulators and 16/64-QAM, ADSL/VDSL transceivers. These digital transmission devices are used in digital set-top boxes, cable data modems and twisted- pair XDSL modems.

The Company’s high-speed networking product lines are 10/100Base-T transceiver and repeater devices for Fast- Ethernet applications. These high-speed LAN devices are in line cards, hubs, switches, test equipment and routers. Broadcom also develops custom chips for digital broadcast satellite and digital radio equipment.

Broadcom’s products are detailed below.

High-Speed Networks The products in this category include single-chip Fast-PHY transceivers; a Quad-PHY transceiver; a Fast-Ethernet Transceiver that incorporates four entire transceivers into a monolithic CMOS chip; 13-port Fast-Ethernet Repeater Controller; and a five port Integrated 100BASE-TX Repeater that integrates four 100BASE-TX transceivers, an MII port, and a five port repeater controller into a single monolithic CMOS chip.

2-75 Broadcom Corporation North American Company Profiles

Cable-TV and Cable Modem The cable-TV and cable modem product lines consist of a QAMLink demodulator; two types of QAMLink Upstream Burst Modulators and a QAMLink Upstream Burst Demodulator; two types of QAMLink Media Access Controllers with 56-bit DES encryption and decryption; a QAMLink Universal Modulator with an FEC encoder and an integrated D/A converter; a Universal QAM Modulator; and three types of QAMLink receivers.

XDSL Product This product (BCM6010) is a QAMLink ADSL/VDSL Transceiver that incorporates a rate adaptive QAM transmitter and receiver with FEC. Integrated features include a 4-256 QAM demodulator, 10-bit A/D and D/A converters, Nyquist filters, acquisition and tracking loops, Reed-Solomon FEC encoder and decoder, a digital adaptive decision feedback equalizer, and ATM Utopia Level 1 and 2 standard interfaces.

Direct Broadcast Satellite Product The BCM4200 is a DVB/DSS® Satellite Receiver for digital satellite set-top boxes. It supports variable data rates up to 90Mbps and is compliant with DVB and DSS standards. The features in this device include dual 6-bit A/D converters, a phase/frequency recovery block, variable rate digital filters, square-root Nyquist matched filters, acquisition and tracking loops, and a DVB/DSS compliant concatenated Viterbi/Reed-Solomon FEC decoder with deinterleaver. This product provides support for DIRECTV® licensees.

Semiconductor Fabrication Facilities

The company is fabless and relies on two outside foundries, Taiwan Semiconductor Manufacturing Corporation (TSMC) in Taiwan and Chartered Semiconductor Manufacturing in Singapore.

Substantially all of Broadcom’s products are assembled and tested by one of two third-party subcontractors, ASAT, Ltd. in Hong Kong and ST Assembly Test Services in Singapore.

Key Agreements

• In August 1998, MIPS Technologies, Inc. announced a strategic alliance with Broadcom Corporation. Broadcom will incorporate MIPS Processor Architecture into its Broadband Communications semiconductors.

• In May 1998, Broadcom announced a cooperation with Sony Corporation to develop a range of integrated circuit products designed for use in consumer electronics products.

• In March 1998, Broadcom and General Instruments (GI) entered into a strategic partnership for Next- Generation Digital Set-Top Terminal Silicon. GI will purchase ICs for its products from Broadcom.

2-76 North American Company Profiles Burr-Brown

BURR-BROWN

Burr-Brown Corporation P.O. Box 11400 Tucson, Arizona 85734-1400 Telephone: (520) 746-1111 Fax: (520) 889-1510 Web Site: www.burr-brown.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Burr-Brown Japan Ltd. • Atsugi-shi, Kanagawa, Japan Telephone: (81) (4) 6248-4695

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 163 169 194 269 220 252 Net Income 1 3 6 29 30 33 R&D Expenditures 18 20 22 26 28 34 Capital Expenditures 5 7 12 18 32 26

Employees 1,566 1,547 1,825 1,900 1,400 1,300

Ownership: Publicly held. NASDAQ: BBRC.

Company Overview and Strategy

Founded in 1956, Burr-Brown Corporation is primarily engaged in the design, manufacture, and marketing of a broad line of proprietary standard high-performance analog and mixed-signal ICs used in the processing of electronic signals. The company’s products are used in applications such as electronic and medical instrumentation, process and industrial control, communications, manufacturing automation, automatic test equipment, consumer audio, computer peripherals, and multimedia.

Burr-Brown is expanding from its traditional focus on older IC processing technologies — primarily linear bipolar — and adding new technologies such as CMOS, BiCMOS, BCDMOS and CBCMOS technologies. The company has also been strategically shifting some of its production to outside foundries, a trend that is expected to continue in order to access sub-micron CMOS technology.

2-77 Burr-Brown North American Company Profiles

In early 1996, Burr-Brown sold its interest in Power Convertibles Corporation (PCC). PCC, formerly a majority- owned affiliate of Burr-Brown, manufactures DC-to-DC converters and battery chargers used in cellular telephone applications. The divestiture of PCC is part of Burr-Brown’s strategic plan to build a stronger focus on its analog and mixed-signal IC business. New product development will focus on developing standard linear ICs (SLICs) as well as application specific standard products (ASSPs).

In 1995, Burr-Brown set new directions for its foreign operations. Burr-Brown’s Japanese development subsidiary is now concentrating primarily on the digital audio and video and other consumer markets, while the company’s Livingston Scotland operation has been re-directed from subcontract manufacturing to in-house product R&D.

Management

Thomas R. Brown, Jr. Chairman Syrus P. Madavi President and Chief Executive Officer Scott Blouin Vice President and Chief Financial Officer Michael Paugh Vice President, Quality Michael M. Pawlik Vice President, Marketing Paul Prazak Vice President, Data Conversion Division Robert E. Reynolds Vice President, Operations Bryan Rooney Vice President, Worldwide Sales R. Mark Stitt Vice President, Linear Division Rod Lawton General Manager, Scotland Division Toshiyuki Yamasaki President, Japan Operations

2-78 North American Company Profiles Burr-Brown

Products and Processes

Burr-Brown's product portfolio includes operational, instrumentation, power, and isolation amplifiers, optoelectronic ICs, digital audio devices, digital-to-analog and analog-to-digital converters, data communications products, LAN products, microterminals, design and development software, and board-level microcomputer subsystems. The company’s products are manufactured using processes that include bipolar, complementary bipolar, CMOS, and BiCMOS.

The following describes the various processes that Burr-Brown utilizes in the manufacture of its ICs.

40 Volt Bipolar Process: This is a high-voltage (40V) bipolar process (±15V or 36V power supplies) used to make high-voltage operational and instrumentation amplifiers. High precision in these products is made possible by the capability of ion implanted JFETs and trimmable resistors. Other typical products made from this process are universal active filters, isolation amplifiers, and high-voltage power amplifiers.

20 Volt Bipolar Process: This is a lower voltage (20V) bipolar process especially suited for data acquisition and PCM components. These are faster circuits utilizing smaller devices with lower RC. Trimmable resistors allow high precision products.

Dielectrically Isolated Bipolar Process: This is a dielectrically isolated high-voltage bipolar (40V) process used for low noise, high precision, and low drift. Very high-performance amplifiers are built using this process where the noise and drift characteristics are important, especially in the medical equipment markets that it serves.

Complementary Bipolar Dielectrically Isolated Process: This is a dielectrically isolated process with complementary NPN and PNP bipolar transistors. It is used to manufacture high-voltage operational amplifiers, voltage-to-frequency converters, and sample/hold circuits.

CMOS Double-Level Metal Poly-Poly Process: This is a 3.0µm double-level metal CMOS process that also makes use of parasitic bipolar devices. This is a ±5V process with compatible thin-film resistors and very high quality poly-poly capacitors. It produces high density, high precision (16-bit and 18-bit) single and dual analog-to-digital and digital-to-analog converters.

BiCMOS Process: This double-poly, double-metal 3.0µm process is optimized for analog circuitry including critical thin-film resistor capability. The process is primarily used for data conversion products.

Processes not available internally are sourced from various foundries, including Lucent Technologies, Mitel Semiconductor, Oki, Hualon Microelectronics, and Taiwan Semiconductor Manufacturing Co. (TSMC). Such processes include 2.0µm, 1.2µm, and 0.6µm BiCMOS and CMOS processes, and a very high-frequency bipolar process for products such as video amplifiers.

2-79 Burr-Brown North American Company Profiles

Semiconductor Fabrication Facilities

Burr-Brown Corporation 6730 South Tucson Boulevard Tucson, Arizona 85706 Cleanroom size: 30,000 square feet Capacity (wafer/week): 4,200 Wafer size: 100mm (Planning conversion to 150mm wafers) Processes: CMOS, Bipolar, BiCMOS Products: Digital and linear ICs, monolithic and hybrid assembly Feature sizes: 1.0µm-3.0µm

Burr-Brown has IC assembly facilities in Tucson and Scotland. The company also incorporated plastic multichip module (MCM) assembly capability in its Tucson facility in 1995.

Key Agreements

• Burr-Brown is jointly developing with Oki, 20-bit BiCMOS A/D and D/A converter chips for business digital audio equipment.

2-80 North American Company Profiles C-Cube Microsystems

C-CUBE MICROSYSTEMS

C-Cube Microsystems Inc. 1778 McCarthy Boulevard Milpitas, California 95035 Telephone: (408) 490-8000 Fax: (408) 490-8590 Web Site: www.c-cube.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: C-Cube Japan • Yokohama, Kanagawa, Japan Telephone: (81) (45) 474-7571 • Fax: (81) (45) 474-7570

Europe: C-Cube Microsystems • Crawley, West Sussex, United Kingdom Telephone: (44) (1293) 651100 • Fax: (44) (1293) 651119

Asia-Pacific: C-Cube Microsystems International Inc. • Wanchai, Hong Kong Telephone: (852) 2511-6683 • Fax: (852) 2511-6939

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 14 24 45 124 320 337 Net Income (5) (1) 5 25 (73) 44 R&D Expenditures 7 7 10 14 44 64

Employees — 112 140 254 669 750

Ownership: Publicly held. NASDAQ: CUBE.

Company Overview and Strategy

Founded in 1988, C-Cube Microsystems is a provider of highly integrated, standards-based, programmable digital video compression and decompression products and systems. The company's innovative encoder, decoder, and codec products bring full motion video and still image capabilities to a broad range of end-user products in the consumer electronics, computer, and communications markets. Such products include DVD-PCS, digital set-top receivers, DVD consumer players, video CD players, and non-linear editing applications, interactive digital cable TV systems, and direct broadcast satellite (DBS) systems.

2-81 C-Cube Microsystems North American Company Profiles

In 1995, C-Cube acquired Media Computer Technologies (MCT), a supplier of PC-based digital video processing and video-windowing technology. As a subsidiary of C-Cube, MCT is responsible for developing ASICs, reference designs, and application software, and contributing to development projects of C-Cube’s PC customers. In 1996, C-Cube acquired DiviCom Inc., a digital video networking company that designs, integrates, and markets complete systems for the delivery of broadcast video networks. DiviCom will operate as a wholly owned subsidiary of C-Cube.

Management

Alexandre A. Balanski, Ph.D. President and Chief Executive Officer Mark K. Allen Senior Vice President, Operations Alex Daly Senior Vice President, Sales and Corporate Marketing John Hagedorn Vice President, Finance and Administration, and Chief Financial Officer Richard Foreman Vice President and Chief Information Officer Didier Le Gall, Ph.D. Vice President, Research and Development, and Chief Technology Officer Senjeev Renjen, Ph.D. Vice President, Decoder Engineering Nolan Daines Chief Executive Officer, DiviCom Inc. Tom Lookabough President, DiviCom Inc.

Products and Processes

C-Cube's single-chip and chipset products include: MPEG 1 video and audio/video encoders and decoders for consumer electronics applications; and MPEG 2 video encoders and decoders for broadcast and consumer applications and MPEG-2 codecs; and MPEG 2 transport demultiplexers for communications applications. In February 1997, C-Cube introduced the ZiVA family of single-chip DVD products, which include decoders, encoders, and system-level solutions for consumer and multimedia OEMs. C-Cube’s unique set-top silicon, application software and production ready designs, offer the market a feature-rich set-top system solution.

C-Cube’s IC products are currently manufactured using two- or three-layer metal CMOS process technology with 0.5µm, 0.35µm, and 0.25µm feature sizes.

The company also markets a line of design example boards and demonstration systems products.

2-82 North American Company Profiles C-Cube Microsystems

Semiconductor Fabrication Facilities

C-Cube does not manufacture its own ICs; it uses independent foundries. The company’s principal IC foundry is TSMC in Taiwan. Other foundry partners include Matsushita and Yamaha. Assembly, test, and packaging of its devices is also subcontracted to third parties.

In 2Q96, C-Cube signed an agreement with foundry partner TSMC. As part of the agreement, C-Cube agreed to make advanced payments to secure wafer production capacity through 2001.

Key Agreements

• In February 1998, C-Cube announced a cooperative engineering effort with Intel Corporation. The C- Cube/Intel solution will allow audio/video data to be directly decoded by C-Cube’s ZiVA DVD chip and passed to the Intel processor for scaling and display.

• In December 1997, C-Cube announced strategic alliances with two innovative providers of “Internet-over-TV” services. Through these alliances, C-Cube is integrating WEB browsing solutions from Worldgate and MoreCom with its AViA chipset, offering advanced graphics and Internet support for set-top devices. This will allow service providers to offer Internet access over television, in addition to digital video services.

• In April 1997, C-Cube and Adaptec announced that they are joining forces to provide a Fire Wire based solution and tools that will allow video professionals and consumers to move between multiple digital video formats, including MPEG-2 and DVC.

• In March 1997, C-Cube and Quadrant International (QI) entered into a development partnership. Through this partnership, QI’s DVD technology will be ported to C-Cube’s ZiVA DVD decoder family.

2-83 California Micro Devices North American Company Profiles

CALIFORNIA MICRO DEVICES (CMD)

California Micro Devices Corporation 215 Topaz Street Milpitas, California 95035-5430 Telephone: (408) 263-3214 Fax: (408) 263-7846 Web Site: www.camd.com

IC Manufacturer

Financial History ($M), Fiscal Year Ends March 31 effective 1995, previously June 30

1993 1994 1995 1996 1997 1998 Sales 33 30 24 40 33 33 Net Income 2 (15) (24) 5 1 (3) R&D Expenditures 4 3 3 3 4 4 Capital Expenditures — 2 1 4 6 1

Employees 247 273 229 297 260 256

Ownership: Publicly held. NASDAQ: CAMD.

Company Overview and Strategy

Founded in 1980, California Micro Devices (CMD) is a designer, manufacturer, and marketer of integrated thin-film, silicon-based termination and filtering passive components and active electronic circuitry. These products are targeted primarily at applications in the computer, networking, and communications industries. CMD exited the military market in 1996.

2-84 North American Company Profiles California Micro Devices

In 1996, CMD introduced its new line of thin-film P/Active™ devices, which combine the company’s thin-film technology with active semiconductor components and techniques to create enhanced passive networks called applications specific passive network (ASPN™) products. With these products, CMD is striving to become an expert in the matters of high-performance termination systems for PCs, workstations, and networking equipment, as well as in the filtering and complementary functions necessary in both computers and mobile communications.

Foreign sales, primarily in Asia, Europe, and Canada accounted for approximately 36 percent of net product sales in fiscal 1997.

Management

Wade Meyercord Chairman Jeffrey C. Kalb President and Chief Executive Officer Nick Bacile Vice President, Marketing Robert Filiault Vice President, Worldwide Sales John Jorgensen Vice President, Engineering Arieh Schifrin Vice President, Operations John E. Trewin Vice President and Chief Financial Officer Scott Hover-Smoot General Counsel Frank Ellis Manager, Product Marketing

Products and Processes

CMD's thin-film products use silicon-based thin-film materials and process technology to combine multiple passive elements in a single package. They fall into two categories: the traditional IPEC™ family, consisting of custom and general purpose devices; and the new P/Active ASPN components, which use semiconductor techniques and devices to enhance the performance and functionality of its traditional thin-film passive technologies. Its first P/Active devices include termination devices for the Intel Pentium and Pentium Pro and Motorola Power PC processor buses, bias networks for Linear Technology’s and Harris’ PC voltage regulators, special diode clamping circuits for second-generation PCI, memory, and other computer buses, and filter circuits for parallel ports in PCs.

CMD also offers a variety of precision and non-precision thin-film resistors and capacitors as well as combinations of those elements with and without semiconductor devices. The company has particular strength in the area of resistor-capacitor filters.

The company's semiconductor products include analog and mixed-signal integrated circuits, such as data communications and interface devices and dual tone multi-frequency (DTMF) receiver and transceiver products. These products are used in personal computers, answering machines, portable telephones, and switching systems. They are manufactured in 1.25µm through 3.0µm BiCMOS and CMOS processing technologies.

CMD also offers the use of its Tempe fabrication facility as a foundry and test service.

2-85 California Micro Devices North American Company Profiles

Semiconductor Fabrication Facilities

CMD plans to convert certain of its fabrication facilities from 125mm to 150mm wafers during the next couple of years.

California Micro Devices, Microcircuits Division California Micro Devices 2000 West 14th Street 215 Topaz Street Tempe, Arizona 85281 Milpitas, California 95035-5430 Telephone: (602) 921-6000 Telephone: (408) 263-3214 Cleanroom size: 16,000 square feet (Class 1) Cleanroom size: 10,000 square feet Capacity (wafers/week): 1,000 Capacity (wafers/week): 750 Wafer size: 125mm Wafer sizes: 125mm, 4.5 in. square Processes: CMOS (SM/DP, DM/SP, DM/DP); Products: Thin-film discretes BiCMOS (SM/DP, DM/DP) Products: Linear and mixed-signal ICs, thin-film devices, foundry services. Feature sizes: 1.25µm-3.0µm CMOS; 1.25µm, 1.5µm BiCMOS.

The company uses subcontractors in Asia, primarily Thailand and the Philippines, for the assembly and packaging of most of its products. Most of its product testing is done in-house, but its assembly partners are increasingly being used for testing purposes.

Key Agreements

• In February 1998, CMD announced a partnership with Flip Chip Technologies and Avex Electronics Inc. to develop flip chip packaging and assembly of CMD’s patented integrated passive components (IPCs).

• In January 1998, CMD and Sipex Corporation announced that they had expanded their foundry relationship (which started in late 1995) to include a broader range of Sipex products.

• California Micro Devices has a comprehensive strategic alliance with Hitachi Metals, Ltd. (HML), a subsidiary of Hitachi, Ltd., that involves joint product development, manufacturing, marketing, and worldwide distribution. HML owns 980,000 shares of CMD stock, about 10 percent.

2-86 North American Company Profiles Calogic

CALOGIC

Calogic Corporation 237 Whitney Place Fremont, California 94539 Telephone: (510) 656-2900 Fax: (510) 651-3025 Web Site: www.calogic.com

IC Manufacturer

Employees: 200

Company Overview and Strategy

Calogic is a privately held company, founded in 1983. The company offers a line of standard and full custom semiconductor products made using several technologies including CMOS/DMOS and bipolar. Its product line is specifically designed for high-performance applications. The company strives to form relationships with its customers by offering technical expertise from design to processing to final test.

Management

Manny Del Arroz President Charlie Bevivino Director, Sales Brenda Hill Director, Marketing

Products and Processes

Calogic offers bipolar standard products (e.g., switches, , and op amps) and CMOS, DMOS, and JFET full custom ICs. Calogic acquired a small signal discrete line from Harris and now offers one of the broadest small signal FET product lines in the industry. In addition, Calogic offers its production facilities as a foundry service.

CRT Related Products : Instrumentation Products : CRT driver amplifiers (30MHz to 185MHz) Op amps Pre-amplifiers References Buffers Analog switches Level shifters

Full Custom and Semicustom Capabilities : Video Products : Design, layout, manufacturing, and test Widebank buffers and amplifiers

2-87 Calogic North American Company Profiles

Power Management : Low drop out regulators Adjustable shunt regulators MOSFET drivers DC to DC converters

Discretes : High-speed lateral DMOS FET switch and switch arrays (switching speeds under 1ns) Vertical MOS FET switches JFETs MOSFETs Diodes

Calogic’s process technologies include a dielectrically isolated (DI) complementary bipolar process, a high frequency (1GHz), low-noise bipolar process, a medium-voltage, medium-frequency, bipolar process for supply voltages up to ±20 volts, CMOS, BiCMOS, JFET, lateral and vertical DMOS.

Semiconductor Fabrication Facilities

Calogic Corporation 237 Whitney Place Fremont, California 94539 Cleanroom size: 10,000 square feet Capacity (wafers/week): 900 Wafer size: 100mm Processes: CMOS, DMOS, bipolar Products: ASICs (gate arrays, full custom ICs); peripheral, linear, and logic ICs; discretes. Feature sizes: 1.5µm-5.0µm

2-88 North American Company Profiles Catalyst

CATALYST SEMICONDUCTOR

Catalyst Semiconductor, Inc. 1250 Borregas Avenue Sunnyvale, California 94089 Telephone: (408) 542-1000 Fax: (408) 542-1200 Web Site: www.catsemi.com Email: [email protected]

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Nippon Catalyst K.K. • Tokyo, Japan Telephone: (81) (3) 5340-3781 • Fax: (81) (3) 5340-3780

Europe: Catalyst Semiconductor, Inc. • Oxford, England Telephone: (44) (1865) 481-411 • Fax: (44) (1865) 481-511

Asia-Pacific: Catalyst Semiconductor, Inc. • , Taiwan Telephone: (886) (2) 345-6192 • Fax: (886) (2) 729-9388

Financial History ($M), Fiscal Year Ends April 30

Preliminary 1992 1993 1994 1995 1996 * 1997 1998 Sales 29 33 54 49 60 47 35 Net Income (7) (2) (22) 2 4 (4) (19) R&D Expenditures 7 5 7 7 9 6 —

Employees 100 90 60 65 82 71 35

*In February 1996, fiscal year changed from ending March 31 to April 30.

Ownership: Publicly held. NASDAQ: CATS.

Note: Effective August 6,1998, the Company’s shares are traded on the OTC bulletin board.

Company Overview and Strategy

Catalyst Semiconductor, established in 1985, designs, develops, and markets a broad range of nonvolatile memory IC products that have applications in the computer, consumer electronics, wireless communications, network, automotive, industrial, and instrumentation markets.

2-89 Catalyst North American Company Profiles

The company's strategy is to become a leading supplier of flash memory devices while maintaining its position as a leading supplier of EEPROM products. The company’s development efforts are focused on improving its fabrication processes and the development of advanced products.

For the nine months ended January 31, 1998, approximately 51 percent of the company’s revenues were from sales of its Flash memory devices, and approximately 70 percent of its revenues were derived from shipments to international customers versus 60 percent in Fiscal 1997.

Management

Hide Tanigami Chairman Radu Vanco President, and Chief Executive Officer Chris Carstens Vice President, Quality and Reliability Heber Clement Vice President, Operations Sorin Georgescu Vice President, Technology Daryl Stemm Vice President, Finance and Administration, and Chief Financial Officer Gelu Voica Vice President, Product Engineering Marc Cremer Vice President, Sales Bassam Khoury Vice President, Marketing Fred Leung Director, Strategic Marketing Steve Donaldson National Sales Manager

Products and Processes

Catalyst's family of nonvolatile devices includes flash memories (512K, 1M, 2M, 4M, and 8M), serial EEPROMs (1K to 64K), parallel EEPROMs (16K to 256K), and NVRAMs (i.e., shadow RAMs and devices that combine EEPROM with SRAM). Catalyst also offers a line of BiCMOS data converters and other specialized products such as its application-specific electrically erasable devices (ASEEDs™), and its mixed-signal products used in freight billing systems and contactless security control.

In January 1998, Catalyst shipped its first product built at its UMC foundry — a 2 Meg Flash memory (the 28F020), fabricated with the company’s advanced 0.5 micron technology.

Most of the company's products are designed and manufactured using a 0.8µm CMOS EEPROM process or a 0.5µm flash memory process.

2-90 North American Company Profiles Catalyst

Catalyst if ISO 9001 certified.

Semiconductor Fabrication Facilities

Through the establishment of long-term licensing agreements, Catalyst principally uses Oki and UMC for the fabrication and testing of its devices. Catalyst also has agreements with Seiko-Epson, Chartered Semiconductor and Newport Wafer-Fab Ltd.

Key Agreements

• In April 1998, Catalyst Semiconductor announced that in two separate agreements reached with Oki Co. Ltd. and Trio-Tech International PTE Ltd., the company will receive additional credit to purchase wafers. Catalyst currently has over $9 million in backlog, a significant portion of which is delinquent to the customer’s requested delivery date.

• In January 1998, Catalyst Semiconductor and JACO Electronics, Inc. of Hauppauge, New York, signed a Distribution Agreement. The agreement allows JACO to distribute Catalyst’s Serial EEPROMs, Parallel EEPROMs, Mixed-Signal Products and Flash Memory devices.

• In 1996, Catalyst announced an agreement with United Microelectronics Corp. (UMC). As part of the agreement, UMC will take a 10 percent equity stake in Catalyst and will provide significant wafer foundry capacity. Also, UMC and Catalyst will jointly develop 0.5µm and 0.35µm process technologies, geared for flash memory products.

• In November 1995, Catalyst signed a cross-licensing agreement with Intel. The agreement provides Catalyst with the right to utilize all of Intel’s flash memory patents.

• Catalyst signed on Wales, U.K.-based Newport Wafer-Fab Ltd. in May 1995 for the manufacture of its EEPROMs and for process technology development.

• Catalyst formed an alliance with Zilog that calls for the joint development of 20M and 40M 2.5-inch solid-state disk drives merging Catalyst's flash memory devices with Zilog's compression and controller technology. The two companies are also developing other devices combining flash and microcontroller technology.

Noteworthy News

• On August 4, 1998, Catalyst announced that, effective at the market close of business August 5, 1998, its Common Stock would be delisted from The Nasdaq National Market due to a failure to satisfy the continuing listing requirements of maintaining a closing bid price of at least $1.00 per share. Effective August 6, the Company’s shares will be traded on the OTC Bulletin board.

• In March 1998, Catalyst announced restructuring and new leadership changes to allow the company to return to profitability. (Management changes are reflected in this profile).

2-91 Catalyst North American Company Profiles

In April 1998, Catalyst announced a recovery plan to improve its operating results. In conjunction with steps taken earlier in the year, Catalyst will reduce cash expenditures for manufacturing overhead and operating expenses. The plan includes an additional 20 percent reduction in force in the Sunnyvale operation and leveraging existing lower cost operations in the Far East and Eastern Europe.

2-92 North American Company Profiles Celeritek

CELERITEK

Celeritek, Inc. 3236 Scott Blvd. Santa Clara, CA 95054 Telephone: (408) 986-5060 Fax: (408) 986-5095 Web Site: www.celeritek.com Email: [email protected]

IC Manufacturer

Financial History ($000s), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Commercial 2,411 6,274 10,854 28,021 27,632 32,663 Defense 28,340 29,755 21,813 9,703 17,714 23,653 Total net sales 30,751 36,029 32,667 37,724 45,346 56,317

Net income 1,836 1,925 284 2,276 3,656 3,991

Employees — — — — 370 422

Ownership: Publicly held. NASDAQ: CLTK.

Company Overview and Strategy

Founded in December 1994, Celeritek designs, develops, manufactures and markets high frequency radio products that provide core transmit and receive functions for wireless communications systems. Celeritek’s products are utilized primarily in four markets: (1) microwave radios; (2) cellular telephone systems and personal communications services ("PCS"); (3) satellite-based communications; and (4) defense electronics. For fiscal 1997, approximately 61 percent of Celeritek’s total net sales were derived from the commercial wireless communications markets. At fiscal year end 1997, Celeritek had two customers, P-Com and Westinghouse, who accounted for approximately 20 percent and 11 percent of total net sales, respectively.

Celeritek’s gallium arsenide radio-frequency integrated circuits (GaAs RF ICs) and high frequency radio transceiver subsystems and components operate in the high radio frequency (RF) range of 800MHz to 1GHz and in the microwave frequency range of 1GHz to 40GHz. Celeritek’s wireless subsystem division's products include subsystems and components for point-to-point radios, very small aperture terminals (VSAT) and for cellular and PCS base stations. Celeritek’s semiconductor division's products include GaAs RF ICs for PCS, wireless local loop and cellular subscriber equipment and base station applications. Celeritek’s defense electronics products are for applications such as missile guidance, electronic countermeasures and communications satellites.

2-93 Celeritek North American Company Profiles

Celeritek’s strategy is to identify and expand penetration into high-growth wireless, target leading OEMs in those markets with a broad range of solutions and, on a “teaming” basis, provide its customers the application-specific products they require by leveraging its expertise in integrated circuit and system design, as well as high frequency signal processing technology and GaAs process technologies.

Celeritek has 15 U.S. distributors across 15 states. They also have 17 international distributors across 14 countries.

Management

Tamer Husseini Chairman of the Board, President and CEO Margaret E. Smith Vice President, Finance and CFO Robert D. Jones Senior Vice President, Marketing and Sales Perry Denning Vice President and General Manager, Semiconductor Division William W. Hoppin Vice President, Sales Gary J. Policky Vice President, Engineering and Chief Technical Officer Richard G. Finney Vice President, Manufacturing

Products and Processes

Celeritek's GaAs products are produced using implanted MESFET as well as epitaxial and PHEMT structures. By having a variety of options, the Company selects the best fit for a given product function based on achieving maximum, cost-effective performance. In addition, Celeritek continues to explore new and emerging GaAs-based technologies as they become available.

Celeritek offers a line of GaAs semiconductor products to OEM customers for use in the commercial wireless communications markets, in addition to those semiconductor products that it incorporates into its own assemblies. The GaAs semiconductor products produced by the company are transceiver components such as amplifiers, switches and converters. Some of these products are combined to function as complete transceivers. Celeritek's current revenues from semiconductor products are derived principally from the sale of discreet GaAs FETs and GaAs ICs for use in wireless communications applications such as cellular, PCS and wireless local loop base stations and subscriber units.

Celeritek manufactures twelve 900MHz MMIC products (amplifiers and power GaAs FETs), thirteen 1.8GHz Power GaAs FETs, eleven 2.4GHz MMIC products, three 2.4GHz Power GaAs FETs, and a single high dynamic range, low-noise GaAs FET.

Celeritek's products are optimized for a number of transmit frequency applications including cellular (800MHz- 1.0GHz), satellite (1.6-1.7GHz), PCS (1.8-2.0GHz), and WLAN/Wireless local loop (2.2-2.7GHz). Modulation formats as varied as GSM, TDMA, CDMA, DCS, PHS and others are all supported. Power GaAs RF ICs and discrete power FETs form the backbone of Celeritek's diverse product offerings.

In fiscal 1997, Celeritek introduced a new product family of gallium arsenide radio-frequency integrated circuits (GaAs RF ICs), called the Triniti DX(TM) for use in PCS and cellular phones. These were designed into handsets and base stations at customers including Lucent, Motorola, and Ericsson.

2-94 North American Company Profiles Celeritek

In February 1998, Celeritek announced two new, low cost, "true" 3.0 Volt power amplifiers. The products support dual band handset requirements including linearity demands of CDMA and TDMA systems over the entire discharge cycle of a lithium ion battery, allowing users to have longer talk time. The CMM0530 delivers 28.5dBm of CDMA output power with 27dB of gain cross the 824-928MHz band with 40 percent digital efficiency and exceeding 60 percent analog efficiency while meeting both TDMA and CDMA spectral mask requirements for IS- 136 and J-STD-18. Similarly, the CMM1530 delivers 28.5dBm of CDMA output power with 30dB of gain across the 1850-1910MHz band with 35 percent digital efficiency, meeting both IS-136 and IS-95 spectral mask requirements. Both products are fabricated using PHEMT technology in Celeritek's GaAs foundry. Manufactured for high volume, these parts are packaged in an 8-pin plastic package, offering high thermal characteristics with an associated smaller footprint.

Celeritek’s proprietary wafer fabrication process produces line-width geometries as small as 0.25 micron that permit the production of high performance, highly integrated devices. Celeritek has accumulated a sizable base of technology associated with the specification of this special starting material and uses its knowledge of GaAs surface preparation techniques to design the surface of its GaAs products to optimize its customers' specific price and performance objectives. Celeritek’s GaAs process has seven major steps for both its FET and IC products. Its GaAs manufacturing process is accomplished with commercially available fabrication equipment including contact photolithography equipment.

Since its inception in 1984, Celeritek has accumulated a substantial base of knowledge in the development of system architectures and integrated circuits for RF and microwave signal processing. This has been developed into an extensive library of signal processing functions that it integrates into higher level systems.

Semiconductor Fabrication Facilities

Celeritek’s 57,000 square foot headquarters houses its main manufacturing plant. In April, 1997, the Company leased an additional 25,000 square foot building in Santa Clara, California to house its wireless subsystems manufacturing operation. Celeritek’s facilities are approved for MIL-Q9858A quality production. The manufacturing facility includes cleanrooms, with Class 10 performance.

Noteworthy News

• Beginning in the second quarter of fiscal 1999, in order to reduce operating expenses, Celeritek will lay off approximately 40 employees, or ten percent, and reduce work weeks through the end of calendar 1998.

2-95 Cherry Semiconductor North American Company Profiles

CHERRY SEMICONDUCTOR

Cherry Semiconductor Corporation 2000 South County Trail East Greenwich, Rhode Island 02818-0031 Telephone: (401) 886-3500 Fax: (401) 885-5786 Web Site: www.cherry-semi.com

IC Manufacturer

Financial History ($M), Fiscal Year Ends February 28

1992 1993 1994 1995 1996 1997 Corporate Sales 229 266 275 339 425 440 Net Income 5 10 11 15 11 16

Semiconductor Sales 36 45 56 75 99 103 Net Income 3 5 7 11 5 5 Capital Expenditures 1 4 7 17 20 14

Employees 415 450 500 550 975 975

Company Overview and Strategy

Formed in 1972 as Micro Components Corporation, Cherry Semiconductor originally manufactured linear bipolar ICs with a focus on the photography market. In 1977, MCC was acquired by The Cherry Corporation and renamed Cherry Semiconductor Corporation (CSC). The market orientation of CSC began to include more automotive business as the photo market began to sag. In 1985, the company committed to two major market focuses: automotive and computer. Within these two markets, CSC focused further on four application areas: dedicated automotive, power supply control, motor control, and memory management (high-performance disk drive circuits).

In 3Q95, CSC was organized into three business groups: automotive OEM, automotive electronics, and computer and industrial. The company’s global customer base includes automotive equipment manufacturers and suppliers, power systems suppliers and resellers, computer OEMs, and telecommunications systems manufacturers.

2-96 North American Company Profiles Cherry Semiconductor

Management

Alfred S. Budnick President, Cherry Semiconductor Andrew F. Durette Executive Vice President Walter E. McMann Vice President, Finance and Administration Dennis Gaetano Director, Worldwide Sales and Marketing

Products and Processes

Cherry Semiconductor designs and builds standard linear and mixed-signal ICs and semicustom and full-custom ICs (ASICs). The company’s automotive ICs are most often custom designs, while its standard ICs are usually targeted at the computer market.

Cherry Semiconductor developed its high-performance PowerSense™ BiCMOS process for automotive circuits. It is a mixed-signal process that allows analog power functions and compact digital logic to be combined on a single chip. It uses 15 masks and has five critical alignments. In addition, CSC has developed a 16-volt BiCMOS process for disk drive applications and a 2.5MHz bipolar process for computer applications. The firm’s bipolar processes feature vertical and lateral PNP transistors, up-down isolation, and low leakage diodes.

Cherry developed an Al-Ni bumping capability in 1972 which was changed to Ti-W in 1986. Cherry currently supplies 1,200 bumped wafers/month.

Semiconductor Fabrication Facilities

Cherry Semiconductor Corporation 2000 South County Trail East Greenwich, Rhode Island 02818 Cleanroom size: 24,000 square feet Capacity (wafer/week): 3,500 Wafer sizes: 100mm, 150mm Processes: Bipolar, BiCMOS Products: Linear and mixed-signal ICs and ASICs Feature size: 1.4µm

2-97 Cherry Semiconductor North American Company Profiles

Key Agreements

• In 1997, Cherry Semiconductor made an equity investment in Switch Power, Inc. Cherry Semiconductor will help Switch Power to co-develop new product definitions.

• Cherry Semiconductor works with Motorola to develop ASICs for the automotive industry. The two companies struck their first agreement in the late 1980's.

2-98 North American Company Profiles Chip Express

CHIP EXPRESS

Chip Express Corporation 2323 Owen Street Santa Clara, California 95054 Telephone: (408) 988-2445 Fax: (408) 988-2449 Email: [email protected] Web Site: www.chipexpress.com

IC Prototypes / Fabless IC Supplier Founded: 1989, Delaware

Regional Offices/Representative Locations

Europe/Middle East: Chip Express Ltd. • Haifa, Israel Telephone: (972) (4) 855-0011 • Fax: (972) (4) 855-1122

Financial History ($M)

1994 1995 1996 1997 Sales 10 18 28 28

Employees 80 110 140 140

Ownership:Privately held; funded by Elron Electronic Industries (Israel), Morgan Stanley Venture Partners (U.S.) and Toyo INK/Intex (Japan).

Company Overview and Strategy

Chip Express started its operations in 1990 when it was spun-out from Elron Electronics Industries Ltd. (an Israeli high technology holding company). The company has developed a series of unique capabilities that allow customization of gate arrays outside of conventional fabs, enabling significant flexibility, fast time to market and production-cost reduction. Chip Express provides a complete “Time-to-Market Solution™” that offers flexible ASIC production solution with a seamless migration path for transferring a logic design from netlist to fast-turn prototypes and then to volume production.

The company produces laser programmable gate arrays (LPGAs), gate arrays fabricated using programmable laser cutting equipment, a patented technology. Traditional gate array and standard cell vendors are focusing more on servicing designs that lead directly to high volume production, leaving customers who require lower volume and/or lower density and fast turnaround, without any low risk, low cost solution. Chip Express introduces a technology that revives the gate array value and avoids the traditional gate array deficiencies, such as no low volume alternatives, longer lead times for gate array design turns, and higher NRE.

2-99 Chip Express North American Company Profiles

Management

Zvi Or-Bach President and Chief Executive Officer Howard Brodsky Chief Financial Officer Paul Indaco Vice President, Sales Uzi Yoeli Vice President, Research and Development (Israel) Meir Janai Chief Scientist (Israel)

Products and Processes

Chip Express offers CMOS gate array prototype and production capability densities that range from 4K to 200K gates. In 2Q96, the company introduced the new CX2000 gate array family, which features a 0.6µm triple metal device with up to 160K usable gates plus configurable embedded memory of up to 128K bits. In 1Q97, the company introduced the next generation CX2001 product family with PLL capability. In addition, in 2Q97, the company developed 0.5µm device capabilities.

The company is currently developing a triple metal 0.35µm technology, the CX3000 LPGA, with foundry partners. Chip Express proprietary techniques are used to selectively remove specific metallization points to personalize/customize standard gate arrays. These techniques are optimized for use on a single die (laser programming), a single wafer (OneMask process) or a wafer lot (TwoMask process).

At the prototyping phase, no masks are required and only a few dies need to be customized. For ASIC prototyping, the QuICkâ System disconnects the predefined links of multi-layer metal in a single operation with 20,000 per second. A real time computer and image processing system use the Cut-List to control the automatic laser cutting process. The QuICkâ System personalizes one die at a time, in less than two hours. Therefore, the NRE is reduced tremendously and the turnaround time is as short as one day. For the initial production phase, Chip Express utilizes a simple dedicated fab-line to process a single wafer at a time, requiring only a single mask and one etch process step for ASIC customization. The turnaround time for low volume production (quantities up to a few thousand devices) can be as short as one week. The company offers a seamless migration to high volume production, where the generic wafers could be processed up to metal 2, requiring only two masks for the customization.

Cores (Mega Cells) – Chip Express is partnering with cores suppliers to provide system designers with pre- designed, tested modules (i.e., PCI, microcontrollers, Ethernet controllers). The OPEN CORE program offers easy access for core providers to verify their cores on silicon and enables a quick and smooth transition from logic design through fully-verified ASIC prototypes to volume production.

2-100 North American Company Profiles Chip Express

Semiconductor Fabrication Facilities

Chip Express has a 37,000 square foot facility that provides gate array prototyping and low volume production services. The prototype is customized in a self-contained Class 100 laminar air flow cell. The OneMask, low volume production operation is performed in a Class 10 cleanroom environment, processing a single wafer at a time, in a single etch step using only a single mask for personalization.

The LPGA fabrication is provided by Tower Semiconductor and Yamaha. Additional foundry partners include Sony, Seiko-Epson, and Chartered Semiconductor Manufacturing.

2-101 North American Company Profiles

CHIPS AND TECHNOLOGIES

Chips and Technologies, Inc. 2950 Zanker Road San Jose, California 95134 Telephone: (408) 434-0600 Fax: (408) 894-2082 Web Site: www.chips.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends June 30

1992 1993 1994 1995 1996 1997 Sales 141 98 73 105 151 168 Net Income (64) (49) 3 9 26 36 R&D Expenditures 46 23 12 13 20 24

Employees 400 220 180 185 209 260

Ownership: Publicly held. NASDAQ: CHPS.

Company Overview and Strategy

Chips and Technologies, a wholly owned subsidiary of Intel Corporation, develops semiconductor and software solutions for leading manufacturers of personal computers. The company has a product portfolio that includes display controllers, graphics accelerators, video devices, communications ICs, and system logic chipsets. These products are built into a wide range of systems from compact portables to high-performance desktop computers.

Chips’ product strategy has taken several turns since it was founded in 1984. The company initially placed its primary focus on system logic chipsets and built up this particular business to represent 87 percent of total revenues in fiscal 1989. Chips’ annual sales in 1990 grew over 100 percent from that in 1988. However, the company’s logic chipset business took a turn for the worst and the company reported a net loss in 1991, the first since its inception.

In an effort to move the company out of the red, Chips sold off several product lines in 1993 and implemented a plan to reorganize the company’s strategy. With its new objectives — to provide highly-integrated silicon and software solutions to the PC industry by creating unique, high-quality products — the company slowly turned around.

Today, Chips and Technologies maintains a leading position as a supplier of graphics and video controllers to portable computer manufacturers. The Company’s strategy is to leverage its core expertise and market leadership to rapidly bring advanced display controller technologies to portable computers. During 1997, Chips extended its HiQVideoÔ family of video display controllers.

2-102 North American Company Profiles Chips and Technologies

Management

James F. Stafford President and Chief Executive Officer Morris E. Jones, Jr. Senior Vice President and Chief Technical Officer Keith Angelo Vice President, Marketing Lee J. Barker Vice President, Operations Timothy R. Christofferson Vice President, Finance, and Chief Financial Officer Richard E. Christopher Vice President, Sales Lawrence A. Roffelsen Vice President, Engineering Jeffery Anne Tatum Vice President, General Counsel

Products and Processes

Chips' product line includes CRT and flat-panel graphics controller ICs, graphical user interface (GUI) accelerators, PC video circuits, I/O and peripheral controllers, and system logic chipsets. The company's LCD controllers have been well received by makers of industry-leading products in the laptop, notebook, and sub-notebook industries.

In 1996, Chips’ introduced a line of LCD flat panel/CRT controllers and accelerators, called the HiQVideo™ family, which are based on a new 64-bit display graphics engine architecture and feature multiple window display, zoomed video, and full-motion video acceleration and scalability.

In 1997, Chips began preliminary sampling of flat panel multimedia accelerators with integrated memory and logic, designed with foundry partner Samsung Semiconductor. The two companies announced in mid-1996 a plan to jointly develop integrated memory products as part of a plan by Chips to introduce a new generation of low-power, high-bandwidth, and high-performance products that are software-compatible with its HiQVideo product family.

Following is a sampling of Chips and Technologies’ HiQVideoÔ series.

• 69000 HiQVideoÔ - Accelerator with integrated memory • 65555 HiQVProÔ - Multimedia Accelerator • 65554 HiQV64Ô - Multimedia Accelerator • 65550 HiQV32Ô - Multimedia Accelerator • 65548 - High Performance Flat Panel/CRT Accelerator • 65545 - High Performance Flat Panel/CRT Accelerator

2-103 Chips and Technologies North American Company Profiles

The majority of Chips’ products are built using 0.5µm and 0.35µm triple-layer-metal CMOS processes. The company plans to utilize 0.35µm and 0.25µm process geometries for most of its future products.

Semiconductor Fabrication Facilities

Chips and Technologies uses subcontractors for the fabrication and assembly of its semiconductor components. Currently its foundry partners include Chartered Semiconductor, IBM, NEC, Samsung, LG Semicom, and TSMC.

Key Agreements

• In January 1998, Intel Corporation acquired the outstanding shares of Chips and Technologies, Inc. for approximately $430M. Chips and Technologies became a wholly owned subsidiary of Intel Corporation, part of Intel’s Graphics Component Division.

• Chips and Technologies signed a production agreement with Chartered Semiconductor. Chips agreed to pay Chartered $20 million for guaranteed production capacity support of 200mm wafers through 2000.

• In fiscal 1996, Chips and Technologies established a long-term foundry agreement with TSMC. The agreement called for Chips to make deposits totaling $23.5 million to TSMC in exchange for a guaranteed wafer supply through 2000.

2-104 North American Company Profiles Chrontel

CHRONTEL

Chrontel, Inc. 2210 O’Toole Ave. San Jose, CA 95131 Telephone: (408) 383-9328 Fax: (408) 383-9338 Web Site: www.chrontel.com Email: [email protected]

Fabless IC Supplier

Regional Headquarters/Representative Locations

Singapore: Wearnes Technology Pte. Ltd. • Singapore Telephone: (65) 2580641 • Fax: (65) 2592270

Wearnes is a holding company for several high-tech companies including Advanced Logic Research (ALR), the computer/server company. Wearnes is represented on Chrontel’s board by Wong Chun Win.

Financial History

Sales for Chrontel in 1996 were in the $10 million to $25 million range. Chrontel had 85 employees at the beginning of 1998, all located at the San Jose headquarters.

Company Overview and Strategy

Founded in 1986, Chrontel is a privately-held operating unit of Singapore’s Wearnes Technology Pte. Ltd. Chrontel uses a “partnership-based business model” and a fabless strategy, relying on Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) for fabrication of its multimedia products. Chrontel’s core competencies are in mixed-signal IC design; video signal processing; innovative product features; and the use of full custom layout for precise product tuning.

Based on these core competencies, Chrontel develops what it calls “visually oriented multimedia solutions.” Chrontel targets the convergence (TVs/PCs/communications) segment of the consumer multimedia market which it assesses as “poised for significant growth.” Target applications include PC-TVs, DVD players, set-top boxes, video CDs, Internet web browsers and video conferencing.

Chrontel currently produces a variety of clock chip products, video encoder products, and video DACs and multiplexers, and has a video camera IC now under development. Chrontel entered the video encoder market as a brand new player in 1996, Chrontel claims to be the world's leading maker of these devices, shipping more than one million encoders per month. Chrontel expects to maintain its leadership position by offering an expanded range of encoders and by continuing its aggressive video encoder marketing program.

2-105 Chrontel North American Company Profiles

Chrontel offers its products through a worldwide network of distributors and manufacturers' sales representatives, including 17 U.S. manufacturer sales representatives across 20 states and another 17 international distributors located in Canada, Mexico, England, Wales, Austria, Germany, Israel, Italy, Hong Kong, Japan, Korea, Singapore and Taiwan. Sager Electronics is Chrontel’s U.S. distributor, with offices in 19 states.

Management

David Soo, Ph.D. Founder, President and Chief Executive Officer Gene McCown Vice President, Finance and Chief Financial Officer Lawrence Tse Vice President, Engineering Gary Salter Vice President, Advanced Technology Demonder Chan Vice President, Systems and Software Engineering Ted Friedland Vice President, Sales Kenneth Lowe Vice President, Marketing

Products and Processes

Chrontel’s name is based on its initial sole product line of clock chips. Chrontel has since expanded its product portfolio, but continues to offer an innovate and broad range of clock synthesizer products including graphics clock generators and video encoders, true-color ChronDAC clock generators, motherboard clocks, Rambus- compatible clocks, dual programmable clock generators and general purpose device clocks.

Chrontel claims to be the world's leading supplier of PC-TV encoder solutions, shipping over one million units per month into PC, video CD and web browser applications. Its CH7002 is positioned as the industry’s first stand- alone, scalable PC-to-TV encoder chip, and is fully PC ‘97 compliant. The chip incorporates proprietary TrueScale rendering technology to optimize images to NTSC or PAL TV standards. It is also fully programmable through an I2C input port. The CH7003, which began shipping in August 1997, uses a digital input interface.

MPEG-to-TV encoders are another major product area for Chrontel. The company claims that its flagship CH7201B chip has captured more than 75 percent of the video CD market, which though largely limited to the PRC market, is supposedly expanding rapidly in India and South America. Chrontel is in the early stages of developing a DVD-targeted product which will be Macrovision compliant and will be implemented using a 0.5 micron die.

Chrontel manufactures digital color key video mixers, analog color key devices and video DACs. It introduced an 8-bit version of its video mixer in Q1 1997, and plans to integrate DACs and muxes with video encoders in the future.

Chrontel is developing a video camera IC featuring an active CMOS sensor designed for multiple applications including video conferencing, security and entertainment. Target capabilities for the chip include SIF resolution of 353x228, CCIR 601 digital output and up to 30fps speed.

Chrontel’s overall product direction is to offer more integration and cost reductions with a systematic targeting of multimedia market requirements.

2-106 North American Company Profiles Chrontel

Key Agreements

• Chrontel has partnerships with 2D/3D graphics chipmakers such as Cirrus Logic and S3. In the MPEG camp, Chrontel has teamed up with several MPEG chip manufacturers including C-Cube Microsystems and ESS Technology.

• Chrontel and its IC partner, Cirrus Logic, jointly developed a fully PC '97 compliant integrated multimedia reference design which enables PC users to view high-quality 2D, 3D and video images on a standard TV. The reference card is based on Chrontel's CH7002 VGA-to-NTSC/PAL encoder and Cirrus' Laguna 3D-AGP graphics controller. Being incorporated by OEMs, the card will allow such large-format applications as 3D games, web browsing, video playback and video conferencing.

2-107 Cirrus Logic North American Company Profiles

CIRRUS LOGIC

Cirrus Logic, Inc. 3100 West Warren Avenue Fremont, California 94538-6423 Telephone: (510) 623-8300 Fax: (510) 226-2240 Web Site: www.cirrus.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Cirrus Logic K.K. • Tokyo, Japan Telephone: (81) (3) 3340-9111

North America:Cirrus Logic, Inc. • Austin, Texas Telephone: (512) 445-7222

Europe: Cirrus Logic, Inc. • United Kingdom Telephone: (44) (1727) 872424

Asia-Pacific: Cirrus Logic, Inc. • Taiwan Telephone: (886) (2) 2718-4526

Financial History ($M), Fiscal Year Ends March 28

1993 1994 1995 1996 1997 1998 Sales 355 557 889 1,147 917 954 Net Income 21 45 61 (36) (46) 36 R&D Expenditures 73 127 166 239 231 180

Employees 1,353 1,854 2,331 3,500 2,600 1,636

Ownership: Publicly held. NASDAQ: CRUS.

Company Overview and Strategy

Cirrus Logic Inc. is a premier supplier of system-level integrated circuits that demand high-performance mixed- signal processing. The company combines its systems, mixed-signal and silicon expertise to create innovative solutions for high-volume applications in data storage, networking and multimedia for both computing and consumer electronics markets, as well as ultra-precision data acquisition applications in industrial automation and instrumentation markets.

2-108 North American Company Profiles Cirrus Logic

Founded in 1984, Cirrus Logic completed its initial public offering in 1989. The company grew rapidly in the ensuing seven years and reached a billion dollar annual revenue run rate, faster than any other semiconductor manufacturer. This remarkable growth was highlighted in September 1997, when Deloitte & Touche LLP and Joint Venture: Silicon Valley Network announced the winners of the “Silicon Valley Fast 50.” At this annual tribute, special recognition was given to the fourteen companies that placed in the “Fast 50” for three consecutive years. With 569 percent revenue growth over the 1992-1996 period, Cirrus Logic ranked tenth in this distinctive group.

Cirrus Logic has amassed a rich portfolio of intellectual property over its years in business. The company currently holds more than 750 patents (issued or pending), a number of which have set new industry standards. Approximately 40 percent of these patents involve mixed-signal technology.

Focusing on high-performance, mixed-signal chip solutions that leverage its innovative analog circuit design techniques and algorithmic software expertise, Cirrus Logic targets emerging and existing high-growth markets that are undergoing high rates of technological change. The company enables high-growth markets by anticipating transitions and developing unique system-level chip solutions ahead of those translations. Following this strategy, Cirrus Logic continues to add high value to major brands worldwide.

Within the continental , Cirrus Logic operates from its headquarters in Fremont, California and a major site in Austin, Texas, as well as from its design centers in Greenville, South Carolina; Raleigh, North Carolina; Broomfield, Colorado and other locations. Internationally, the company operates from offices in Europe, Japan and Pacific Asia. The company’s products are sold under its own name as well as the Crystal™ product brand, which is well established in industrial automation and consumer/professional audio markets.

Cirrus Logic is a partner in two wafer fabs: MICRUS with IBM in East Fishkill, New York, and Cirent Semiconductor with Lucent Technologies in Orlando, Florida. These joint ventures reinforce the company’s manufacturing strategy of balancing joint-venture ownership with its strong foundry relationships. With this strategy, Cirrus Logic expects to realize cost efficiencies that come from balancing direct owned capacity with foundries—plus the early and direct access to world-class process technologies.

2-109 Cirrus Logic North American Company Profiles

Cirrus Logic has invested substantially in R&D and in the acquisition of key technologies to develop its “systems in silicon” expertise. Past acquisitions include Pixel Semiconductor (1991), Crystal Semiconductor Corporation (1991), Acumos Inc. (1992), Pacific Communication Sciences, Inc. (1993), PicoPower Technology, Inc. (1994), the 3D graphics chip technology of Austek Microsystems (1994), and the graphics and disk interface IC businesses of Appian Technology (1994). The intellectual property gain from these acquisitions, combined with Cirrus Logic’s on-going research and development, have enabled the company to broaden and deepen its technology in the areas of mixed-signal design, digital audio, graphics acceleration, modulation/demodulation algorithms, and digital wireless communications.

As part of the company’s streamlining efforts in fiscal 1996, certain acquisitions were divested, including PicoPower Technology (sold to National Semiconductor in May 1996), PCSI’s Wireless Infrastructure Equipment Group (sold to ADC Telecommunications in December 1996), and PCSI’s Wireless Semiconductor Group (sold to Rockwell Semiconductor Systems in January 1997).

With approximately 2,600 employees worldwide, Cirrus Logic operates with a division infrastructure designed to drive high product development synergy within key markets and high customer satisfaction. The company’s four market-focused divisions are profiled under “Products and Processes.”

Management

Michael L. Hackworth Chairman and Chief Executive Officer Thomas F. Kelly Office of the President, Chief Operating Officer George N. Alexy Office of the President, Chief Products and Marketing Officer Edward C. Ross President, Technology and Manufacturing Group Hank Josefczyk Senior Vice President, Sales Ronald K. Shelton Vice President, Finance and Chief Financial Officer Steven Dines Vice President and General Manager, Mass Storage Products Division Michael D. Shealy Vice President and General Manager, Communications Products Division Eric C. Broockman Vice President and General Manager, Crystal Semiconductor Products Division Halappa Ravindra Vice President, Research and Development Satish K. Gupta Vice President, Corporate Marketing and Business Development Robert F. Donohue Vice President and Chief Legal Officer Patrick V. Boudreau Vice President, Human Resources Thomas P. Rigoli Vice President, Corporate Communications

Products and Processes

Cirrus Logic’s broad portfolio of products emanate from four market-focused divisions:

• Mass Storage Products Division addresses the increasing demand for higher-storage capacity and faster information access with high-performance mixed-signal chip solutions for both magnetic and optical moving media. A long-time market leader in the magnetic drive segment, Cirrus Logic has more recently begun strong penetration into the optical segment. Using advanced mixed-signal processing to integrate drive electronics, Cirrus Logic has led the industry with innovations such as PRML (Partial Response Maximum Likelihood) read- channel chips, which enable disk drive makers such as Seagate and to pack more data on a magnetic platter. Cirrus Logic is also bringing similar innovations to the optical market working with customers such as Sony.

2-110 North American Company Profiles Cirrus Logic

• Communications Products Division serves three key communications markets. In the wide area and local area networking (WAN and LAN) infrastructure equipment market, the division provides: advanced T1/E1 chip solutions to a large base of WAN customers; an expanding breadth of LAN products including 10BASE-T and 100BASE-TX/FX Ethernet chips to key customers such as Bay Networks; and a solid portfolio of highly integrated, multiprotocol engines to industry leaders such as Cisco Systems. In the intelligent “network-aware” appliance market, the company focuses on emerging WEB-centric TV and telephony markets as well as the new high-end cellular phone and PDA segments that demand high integration. The company also offers Card- Bus (PC Card) chips that enable portable PC “bridge applications” not only to desktop PCs but also to network infrastructure and industrial equipment.

• PC Products Division offers advanced multimedia chip solutions for personal computing and home entertainment markets. Leveraging its powerful PC product platforms (CrystalClear™ Audio; Languna3D™ Graphics/Video; and FastPath™ Telephony), Cirrus Logic is focused on delivering system-on-a-chip solutions that speed the development and time-to-market of affordable multimedia PCs and PC-based entertainment appliances. Cirrus Logic’s platforms enable customers to provide CD-quality audio, cutting-edge 3D graphics/video, and high-speed Internet access, plus the opportunity to achieve high-level system integration. Customers include major PC manufacturers such as Compaq, Dell, Hewlett-Packard and IBM.

• Crystal Semiconductor Products Division focuses its advanced mixed-signal chip solutions on consumer electronics, industrial automation and instrumentation markets. The patented delta-sigma technology pioneered by this division is today an industry standard technique for analog-to-digital (A/D) conversion, and key to achieving ultra-precision data acquisition. Moreover, the high-performance mixed- signal design techniques that originate in this division are applied to chip solutions across Cirrus Logic’s product line. Products sold under the Crystal brand serve consumer/professional audio customers such as Harmon International, Philips, and Blaupunkt as well as industrial/instrumentation customers such as Rockwell Automation and Schlumberger.

Semiconductor Fabrication Facilities

Cirrus Logic currently manufactures most of its IC products using 0.35µm and 0.6µm triple-layer-metal CMOS process technologies. The company balances joint venture fab ownership (see Key Agreements) with the use of foundries.

In late 1995, Cirrus Logic announced a program to expand its manufacturing infrastructure, targeting 0.35µm and 0.25µm process capabilities. The program called for the company to invest approximately $2 billion over a five- year period. In early 1997, the amount was reduced by half.

This program resulted in the expansion of MiCRUS and the formation of Cirent Semiconductor, a new joint venture with Lucent Technologies, that operates within an existing Lucent wafer manufacturing facility in Orlando, Florida. Cirent is 40 percent owned by Cirrus Logic and 60 percent by Lucent Technologies. The two firms share the production output of the new 200mm wafer facility, which initially focused on 0.35µm, and is now migrating to 0.25µm processing.

2-111 Cirrus Logic North American Company Profiles

With both of its joint manufacturing ventures in production, Cirrus Logic has reduced its dependence on foundries. Whereas, the company used a dozen foundries before the joint ventures, the company now depends on less than half that number to meet its production needs. Cirrus Logic continues to nurture its foundry relationships, which include long-standing relationships with TSMC and UMC.

MiCRUS Cirent Semiconductor (Joint venture with IBM) (Joint venture with Lucent) 1580 Route 52 9333 South John Young Parkway Hopewell Junction, New York 12533 Orlando, Florida 32819 Telephone: (914) 892-2121 Telephone: (407) 345-6000 Wafer size: 200mm Wafer size: 200mm Process: CMOS Process: CMOS Feature sizes: 0.25µm-0.6µm Feature sizes: 0.25µm, 0.5µm

Key Agreements

• IBM and Cirrus Logic formed a joint manufacturing venture called MiCRUS in 1994. IBM and Cirrus Logic own 52 percent and 48 percent of MiCRUS, respectively. Volume production of logic chips for Cirrus and memory ICs for IBM began in mid-1995. The agreement does not include product and/or technology exchange. In 1996, Cirrus Logic entered into a similar joint venture agreement with Lucent Technologies to form Cirent Semiconductor in Orlando, Florida. Cirrus Logic has access to the production outputs of up to 55 percent and 25 percent of the MiCRUS and Cirent fabs, respectively.

• Cirrus Logic is a long-time licensee of Advanced RISC Machines (ARM) Ltd., and as such licensed to embed ARM processors into its chip solutions.

• Chrontel and its IC partner, Cirrus Logic, jointly developed a fully PC '97 compliant integrated multimedia reference design which enables PC users to view high-quality 2D, 3D and video images on a standard TV. The reference card is based on Chrontel's CH7002 VGA-to-NTSC/PAL encoder and Cirrus' Laguna 3D-AGP graphics controller. Being incorporated by OEMs, the card will allow such large-format applications as 3D games, web browsing, video playback and video conferencing.

• In 1996, Cirrus Logic entered into a licensing agreement with U.S. Robotics that gave the company rights to use U.S. Robotics’ x2 protocol for high-speed (56Kbps) access. Cirrus Logic’s software configurable line of FastPath modem chipsets is currently being upgraded to the new International Telecommunications Union (ITU) worldwide standard.

• Cirrus Logic licensed the Rambus high-performance DRAM interface architecture in early 1995. Cirrus pioneered the use of the Rambus in 3D graphics accelerators.

2-112 North American Company Profiles Compensated Devices, Incorporated

COMPENSATED DEVICES, INCORPORATED (CDI)

Compensated Devices, Incorporated 22 Corey Street Melrose, MA 02176 Telephone: (781) 665-1071 Fax: (781) 665-7379 Web Site: www.cdi-diodes.com Email: [email protected]

Discrete Semiconductor Manufacturer Founded: 1974

Financial History ($M)

1998 Sales 10

Employees 100

Ownership: Privately held.

Management

Thomas Kachel President Don Smith Vice President, Engineering Charles Smith Vice President, Marketing (Scottsdale, AZ 602-990-7326) Elizabeth Parker Manager, Product Thomas Briand Manager, National Sales Peter Haxton Manager, Quality Assurance Lorraine Goodhue Manager, Human Resources

Products and Processes

CDI manufactures Current Regulator Diodes, Schottky Diodes and Rectifiers, Temperature-Compensated Voltage Reference Diodes, and Zener Voltage Regulator Diodes. Products are available for the commercial market and for the military market (JAN, JANHC, JANKC, JANTX, JANTXV, JANS).

2-113 C.P. Clare Corporation North American Company Profiles

C.P. CLARE CORPORATION

C.P. Clare Corporation 78 Cherry Hill Drive Beverly, Massachusetts 01915-1048 Telephone: (978) 524-6700 Fax: (978) 524-4700 Web Site: www.cpclare.com

IC Manufacturer

Financial History ($), Fiscal Year Ends March 29

1993 1994 1995 1996 1997 1998 Sales 75,699 75,970 95,992 127,928 128,161 156,271 R&D Expenditures 2,148 2,489 3,532 4,447 6,543 8,869 Net Income 689 715 3,079 7,734 (6,911) 8,312

Capital Equipment — — 6,477 9,135 15,047 —

Employees — — — — 1,474 —

Ownership: Publicly held. NASDAQ: CPCL.

Semiconductor relays accounted for 47 percent and 37 percent of the Company's net sales in fiscal 1997 and 1996, respectively.

Company Overview and Strategy

Founded in 1937, C.P. Clare was acquired by General Instrument (GI) in 1967 only to be divested by GI to Theta-J Corporation in 1989. In January 1997, the company consolidated its headquarters into a newly constructed facility in Beverly, Mass.

C.P. Clare is a leading provider of small signal semiconductor and electromagnetic switches and relays. Its primary markets are telecommunications and data communications. However, it also sells to a wide range of other markets including consumer electronics, appliances, computer peripheral, gaming equipment, automotive, aerospace, automatic test equipment, industrial control and instrumentation. The communications industry represents the company’s largest market due to the ubiquity of switch and relay technology, and the need for integrated solutions, in that market.

The company is organized around four strategic business units: Semiconductor, Reed Relay, Surge Arrestor and Advanced Magnetic Products (AMP).

2-114 North American Company Profiles C.P. Clare Corporation

C.P. Clare’s corporate development strategy is to capitalize opportunities, focus on the communications industry as a market, increase and enhance new product development, reduce complexity and costs of operations, and increase inter-unit portfolio synergies to better leverage its corporate brand and customer franchises. The company therefore has a two-prong segmentation strategy: provide customized solutions and leverage resources by selling complementary products across all product lines, in both existing and new markets.

C.P. Clare has 21 distributors worldwide, including 11 in the U.S., as well as 12 sales “representatives” organizations, three of which are not also distributors. With branch units and 700 total personnel worldwide, such as U.S.-based Allied Electronics’ Isando, South Africa unit, Allied Electronics Components (Pty.) Ltd.

Management

Corporate Arthur R. Buckland President and Chief Executive Officer Michael J. Ferrantino Chief Operating Officer William D. Reed Executive Vice President, Sales and Marketing Thomas B. Sager Vice President and Chief Financial Officer Robert M. Palladino Vice President and Corporate Treasurer Richard E. Morgan Vice President, Human Resources Harsh Koppula Vice President and General Manger, Advanced Magnetic Prods. Mike Ferrantino Vice President and General Manager Components Products Bill Miller Vice President, Manufacturing JoAnn McDonald Major Accounts Manager Rose Ferrara Distribution Manager Pat Swiencicki Distributor Sales Manager Donna Boland Director of Corporate Customer Service Lori M. Henderson Corporate Counsel and Clerk

Products and Processes

C.P. Clare’s core competencies are analog semiconductor processes and design, optical isolation, wafer technology and multi-chip packaging, package molding, coil winding, ceramic-to-metal sealing and materials processing.

C.P. Clare Semiconductor is a leading small signal relay manufacturer. The company believes it pioneered the application of semiconductor technology into relay products. Its working assumption is that semiconductor relays represent the fastest growing segment of the small signal relay market. The unit offers over 270 relay configurations.

Recent products include the (7/96) Cybergate 2000, the (8/96) dual linear optocoupler LOC210P, LOC211P models and the LIA100 Series, the (10/96) Cybergate 2001 and the (1/97) LOC110/111 and LOC112 enhanced optocoupler series.

2-115 C.P. Clare Corporation North American Company Profiles

The Circuits Division’s latest product is its telephone line interface, the Cybergate Series Data Access Arrangement (DAA) Module. Cybergate application targets include Home Medical Devices, Utility Meters, Voicemail Systems and Telephony, PBX Systems and Set-Top Boxes. A turnkey device, the Cybergate is V.34 compatible (28.8Kbps) and is available in a 2-4 wire hybrid version, and domestic and international versions. The Cybergate 2000 DAA series was introduced in order to penetrate the analog modem market where multiple discrete components can be displaced by the small package size Cybergate.

C.P. Clare Reed Relay manufactures a broad range of dry and wetted reed switches and relays. These products operate electromagnetically and their largest market is the telecommunications industry. In August 1996, the unit introduced an instrument grade single in-line relay, the SIL4 Reed Relay, and the MVS Series Reed Relay, 1 Form A Reed Switch. The unit’s DYAD product was the first commercially available switch to have surface mount capabilities. The unit’s wetted reed high performance switch uses a liquid mercury film which is applied or wetted to the electrical contacts. These products are used primarily in telecommunications applications (CO equipment; telephone switching gear and test systems; PBXs), as well as in process control applications and precision measuring and water meter applications.

In fiscal 1997, the Reed Relay unit also developed a standard telecommunications transformer designed to replace isolation transformers used in large volumes in communications applications. Fulfilling the complementary products strategy, Reed Relay also began offering a modem isolation transformer in the semiconductor DAA product in fiscal 1997.

The C.P. Clare Surge unit manufactures a line of surge arrestors used primarily for circuit protection in telecommunications, data transmission lines and cable TV systems. These products are often used in conjunction with semiconductor and reed relays.

C.P. Clare AMP provides application-specific engineering, design and manufacturing subcontracting services for magnetic components. Its products are used in applications such as transformers and lighting ballasts. AMP introduced its Modem Isolation Transformer (MIT) line in July 1996.

Semiconductor Fabrication Facilities

All of C.P. Clare’s manufacturing facilities are ISO-9001 certified. Manufacturing and assembly facilities total about 354,400 square feet of floor space. The St. Louis facility is 20,000 square feet, the Guadalajara, Mexico facility is 194,000 square feet, and the Chitu, Taiwan facility is 25,000 square feet.

Aside from its headquarters consolidation, which houses its 5 inch wafer fabrication facility (32,400 square feet), the company is also consolidating and automating its facilities. Additionally, in mid-1997 the company anticipated adding capacity to the headquarters fabrication facility. During fiscal 1997, it expanded manufacturing operations in Mexico.

Most fabricated chips are shipped for assembly to a subcontractor in the Philippines, although some are sent to the company's Guadalajara, Mexico facility.

2-116 North American Company Profiles C.P. Clare Corporation

The company manufactures dry reed switches in St. Louis, Missouri and assembles relays in Chitu, Taiwan and Guadalajara, Mexico. Wetted reed switches and some wetted reed relays are purchased from TMC (Tongeren, Belgium). Magnetic components are designed and assembled in Guadalajara, Mexico.

Advanced Magnetic Products (AMP) Sensors Division AMP Plant - Mexico Sensors Manufacturing Calz. Gonzalez Gallo 1269 48 Progress Parkway Col. Atlas Maryland Heights, MO 63043 Guadalajara, Jal. Mexico 44870 Telephone: (314) 434-0311 Telephone: (52) (36) 191720 Fax: (314) 434-1521 Fax: (52) (36) 191730

C.P. Clare Mexicana, S.A. de C.V. C.P. Clare Taiwan, Corporation Blvd. Gral. Marcelino 91, Tung Hsin Street Garcia Barragan 1610 Chi Tu, Keelung, Taiwan 20607 Guadalajara, Mexico 44870 R.O.C. Telephone: (52) (36) 501031 Telephone: (886) (2) 4566126/9 Fax: (52) (36) 190361 Fax: (886) (2) 4566130/4568570

Key Agreements

• In February 1997, C.P. Clare’s Surge Arrestor Products Group acquired Wickmann GmbH’s gas discharge tube (GDT) surge protection product line. Under a reciprocal supply agreement, C.P. Clare moved the technology and assets to its factory in Guadalajara, Mexico from which it will supply Wickmann. Additionally, C.P. Clare now sells these products to its customers worldwide through its existing sales and distribution channels to complement its line of surge arrestors. The acquisition was positioned as an investment designed to leverage brand and distribution channel franchises, and to enhance penetration of the international telecommunications market. It was also intended to complement the company’s 11/96 partnership with Harris Semiconductor to resell their surge protection product line.

• In January 1997, C.P. Clare completed the sale of its Tongeren Manufacturing Company (TMC) to Gunther GmbH. The companies entered into a long term supply contract in which Gunther Belgium will supply its mercury switches and relays exclusively to C.P. Clare, (which will continue to offer these products worldwide through its existing sales channels). TMC was renamed Gunther Belgium. The sale was aimed at exiting a high labor cost region and a mature product with serious environmental liabilities.

2-117 North American Company Profiles

CYPRESS SEMICONDUCTOR

Cypress Semiconductor Corporation 3901 North First Street San Jose, California 95134-1599 Telephone: (408) 943-2600 Fax: (408) 943-2796 Web Site: www.cypress.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Cypress Semiconductor Japan K.K. • Shinjuku-ku, Tokyo, Japan Telephone: (81) (3) 5296-0781 • Fax: (81) (3) 5269-0788

Europe: Cypress Semiconductor International • Waterloo, Belgium Telephone: (32) (2) 357-02-20 • Fax: (32) (2) 357-02-30

Asia-Pacific: Cypress Semiconductor Singapore • Singapore Telephone: (65) 735-0338 • Fax: (65) 735-0228

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 272 305 406 596 528 544 Net Income (21) 8 50 102 53 18 R&D Expenditures 65 50 53 72 84 94 Capital Expenditures 32 56 112 195 195 138

Employees 1,529 1,262 1,423 1,859 2,171 2,770

Ownership: Publicly held. NASDAQ: CY.

Company Overview and Strategy

Founded in 1983, Cypress Semiconductor is a designer, developer, and manufacturer of high-performance digital integrated circuits for a variety of markets including networking, military, computers, telecommunications, and instrumentation. Cypress’ product offerings include SRAMs, EPROMs, specialty memories, programmable logic devices (PLDs), data communications products, timing devices, and USB microcontrollers.

2-118 North American Company Profiles Cypress Semiconductor

Suffering its first revenue decline in 1992, Cypress initiated a restructuring program. From the company's beginning, it had been known for its niche-market strategy of acquiring and managing smaller autonomous businesses. That approach, however, has been modified to take advantage of Cypress' lowered manufacturing costs, allowing the company to compete effectively in high-volume markets such as the PC market. Cypress has also turned to a more market-driven focus.

Restructuring activities included the selling of its SPARC processor subsidiary, Ross Technology, to Fujitsu and the realignment of its subsidiaries — Aspen Semiconductor and Multichip Technology — under the company's four business units: the Memory Products Division (MPD), the Programmable Products Division (PPD), the Data Communications Division (DCD), and the Computation Products Division (CPD). Cypress also made a few strategic acquisitions, including Seattle-based IC Designs, Inc., a supplier of clock-frequency synthesis chips for the PC market, and the high-speed FCT logic product line from Performance Semiconductor.

During 1997, Cypress’ sales grew to $544 million. Cypress entered 1998 with a reinforced strategy to continue developing new products and processes utilizing its proprietary technologies to address the needs of its target markets as well as enter new markets in order to reduce its dependence on specific markets.

In 1997, Cypress introduced a record number of new products. Cypress debuted a 4Mbit SRAM, low-power devices for mobile applications, the NoBL (TM) SRAMs for networking applications, and the company’s first 0.35 micron device, a 64K x 16 SRAM targeted to work with DSPs.

Cypress also has introduced new products for other applications including DUB and SMPTE video, ATM, PC clocking solutions, the world’s largest First-In First-Out (FIFO) memory, new universal serial bus (USB) microcontrollers, high-speed logic products, and 3.3V compatible CPLDs.

2-119 Cypress Semiconductor North American Company Profiles

Management

Pierre Lamond Chairman T.J. Rodgers President and Chief Executive Officer Antonio Alvarez Vice President, Memory Products Division and Research and Development Dan Barrett Vice President, European Sales and Marketing Lou Chetaud Vice President, Worldwide Assembly and Test Manufacturing Bernard Glasauer Vice President, Product Engineering Emmanuel Hernandez Vice President, Finance and Administration and Chief Financial Officer Jeff Kaszubinski Vice President, Manufacturing Operations Paul Keswick Vice President, New Products Development Jim Kupec Vice President, Business Development Jeff Linden Vice President and Corporate Controller Lothar Maier Vice President, Worldwide Manufacturing J. Daniel McCranie Vice President, Marketing and Sales Christopher Norris Vice President, Programmable Logic Division Rich Parker Vice President, North American Distribution John Ramacciotti Vice President, Procurement R. Michael Starnes Vice President, Process Technology Joyce Sziebert Vice President, Human Resources John Torode Vice President and Chief Technical Officer Edward Rodriguez Vice President, Data Communications Division William Verde Vice President, Strategic Accounts Michael Villott Vice President, North American Sales Christopher Seams Vice President, Worldwide Wafer Manufacturing David Fleischer Vice President, Asia Pacific Thomas Knueppel Vice President and Corporate Controller Jagdish Belani Vice President, Packaging Technology Anthony Cantu Vice President, Quality Gerald Cummings Vice President, Central Manufacturing Operations Neil Weiss Tax and Treasury

Products and Processes

Highlights of Cypress Semiconductor's product portfolio are given below. Its integrated circuits are fabricated using proprietary 0.5µm, 0.65µm, and 0.8µm CMOS and BiCMOS technologies.

SRAMs Specialty Memories and Memory Modules • 4K to 4M CMOS SRAMs • Industry-standard FIFOs • 64K and 256K BiCMOS SRAMs • Bidirectional FIFOs • 64-bit x 18 Cache tag RAMs • Clocked FIFOs • Asynchronous FIFOs • Dual-port RAMs • Memory accelerator MCMs

2-120 North American Company Profiles Cypress Semiconductor

UltraLogic PLDs/Tools Industry-Standard PLDs • Flash370 CPLDs (44-288 pins) • 20-pin CMOS/BiCMOS PLDs • Development tools • 16V8 GAL-compatible PLDs • 22V10 flash/BiCMOS PLDs • MAX CPLDs (28-84 pins)

PROMs/EPROMs Data Communications • 4K to 512K CMOS PROMs • HOTLink point-to-point communications • 4K-1M CMOS EPROMs • Fibre Channel, and ATM/ SONET transceivers/receivers

Timing Technology Products Logic and Bus Products • Motherboard frequency synthesizers • FCT logic chips • Low-power system logic devices • VMEbus controllers • Graphics frequency synthesizers • Programmable skew clock buffers • Programmable products • Low-skew clock buffers • Custom oscillators • Pentium clock synthesizers/drivers

Semiconductor Fabrication Facilities

Several strategic activities took place at Cypress during the late-1997 to early-1998 timeframe. Cypress consolidated its manufacturing to two main fabs. Fab II in Round Rock, Texas now does all of Cypress’ non-SRAM based manufacturing, including data communications, programmable logic, and USB microcontrollers. Fab IV in Bloomington, MN — the company’s 8-inch, 0.35 micron facility — will produce all of Cypress’ SRAM-based products. Cypress’ Fab III, also in Bloomington, has been closed for renovation and will come back on-line as a 0.25 micron facility when that capacity is needed. Cypress spent $85 million in 1Q98 for this restructuring, which will significantly reduce costs.

Cypress Semiconductor Inc. Cypress Semiconductor (Texas) Inc. 3901 North First Street 17 Cypress Drive San Jose, California 95134 Round Rock, Texas 78664 Telephone: (408) 943-2653 Telephone: (512) 244-7789 Fab I Fab II (17 percent owned by Altera) Cleanroom size: 12,000 square feet Cleanroom size: 25,000 square feet Capacity (wafers/week): 1,000 Capacity (wafers/week): 2,700 Wafer size: 150mm Wafer size: 150mm Processes: CMOS, BiCMOS Processes: CMOS, BiCMOS Products: R&D Products: SRAMs, PLDs, FPGAs, EPROMs, Feature sizes: 0.35µm-0.8µm datacom ICs. Feature sizes: 0.5µm-1.2µm

2-121 Cypress Semiconductor North American Company Profiles

Cypress Semiconductor (Minnesota) Inc. Cypress Semiconductor (Minnesota) Inc. 2401 East 86th Street 2401 East 86th Street Bloomington, Minnesota 55425 Bloomington, Minnesota 55425 Telephone: (612) 851-5100 Telephone: (612) 851-5100 Fab III Fab IV Cleanroom size: 20,000 square feet Cleanroom size: 30,000 square feet Capacity (wafers/week): 2,400 Capacity (wafers/week): 3,000 Wafer size: 150mm Wafer size: 200mm Processes: CMOS, BiCMOS Processes: CMOS, BiCMOS Products: SRAMs, PLDs, FPGAs, logic chips, Products: SRAMs, specialty memories datacom ICs. Feature size: 0.5µm Feature sizes: 0.5µm-1.2µm

Cypress Semiconductor Round Rock, Texas Fab V Cleanroom size: 35,000 square feet Capacity (wafers/week): 5,000 (when fully equipped) Wafer size: 200mm Processes: CMOS, BiCMOS Products: SRAMs, EPROMs, Logic ICs Feature sizes: 0.25µm-0.5µm (Production tentatively scheduled for 1998).

Key Agreements

• In March 1997, QuickLogic and Cypress terminated the Existing Agreement, and replaced it with a new arrangement whereby the company’s FPGA products will no longer be second sourced by Cypress. In exchange for the termination of the Existing Agreement and the reversion of the rights to the intellectual property developed thereunder to the company, the company paid $4.5 million in cash and agreed to issue 2,603,817 shares of common stock to Cypress, resulting in a charge of approximately $23 million in the first quarter of 1997. The 2,603,817 shares of common stock to be issued to Cypress are issuable upon the consummation of an initial public offering by the company or by April 1, 1998, whichever is first. In addition, the company granted Cypress certain contractual rights as to the shares of the company’s stock held by Cypress, including the right to sell shares in this offering.

• QuickLogic and Cypress also entered into a new foundry agreement effective through the year 2001. This agreement guarantees weekly wafer starts at established prices and yields for the company’s pASIC 1 and pASIC 2 product families, which are fabricated using a 0.65µm three-layer metal CMOS process on 6-inch wafers. These products will continue to be manufactured at Cypress’ Round Rock, Texas facility, and will continue to utilize QuickLogic’s proprietary ViaLink amorphous silicon antifuse technology.

2-122 North American Company Profiles

CYRIX (A National Semiconductor Company)

Cyrix Corporation 2703 North Central Expressway Richardson, Texas 75080-2010 Telephone: (972) 968-8388 Fax: (972) 699-9857 Web Site: www.cyrix.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 * Sales 73 125 246 228 184 — Net Income 8 20 38 16 (26) — R&D Expenditures 8 16 25 29 32 — Capital Expenditures** 7 15 24 80 13 —

Employees 150 220 309 400 391 —

*As of November 1997, Cyrix is a wholly owned subsidiary of National Semiconductor — financial information no longer disclosed separately. **As part of the agreement made with IBM in early 1994, Cyrix purchases substantially all of the equipment required by IBM to manufacture Cyrix products.

Company Overview and Strategy

In November 1997, Cyrix became a wholly owned subsidiary of National Semiconductor.

Founded in 1988, Cyrix Corporation designs, develops, and markets high-performance x86 software-compatible microprocessors for the desktop and mobile computer markets. The company seeks to serve the needs of the PC marketplace as an alternative source for x86 microprocessors of original design with competitive price/performance characteristics.

2-123 Cyrix North American Company Profiles

Fiscal 1996 was a difficult year for Cyrix financially. The transition from the old 486 product line to the 6x86™ processor did not occur as quickly as expected. The 6x86 was recognized with numerous awards for its exceptional processing power, but it did not gain broad market acceptance until late in the year. Significant demand for the 6x86 was experienced in 4Q96.

*As of November 1997, Cyrix is a wholly owned subsidiary of National Semiconductor. Sales no longer disclosed separately.

Cyrix has strategic alliances with IBM Microelectronics, National Semiconductor, and TSMC for the production of its high-performance microprocessors. These agreements support the company's current strategy to focus its resources on product design, market development, and customer support.

Products and Processes

Cyrix’s first products were math . The company delivered its first x86 microprocessors in 1992. It then moved quickly to develop a full line of 486 processors with advanced power management, clock-doubling capabilities, integrated math coprocessors, and write-back cache. In 1995, Cyrix introduced its fifth-generation 5x86 and sixth-generation 6x86 high-performance processors (the 486 products are no longer in production).

Cyrix’s 6x86 (formerly called the M1) is based on a superscalar, superpipelined architecture and a RISC core. The 6x86 was offered (no longer available) at several performance levels ranging from PR133+ to PR200+. The PR+ nomenclature suggests which specific higher-clock-rate Intel Pentium each of the members best compete with.

Cyrix launched its M2 processor (6x86MX) in May 1997. Building on the 6x86 core, the six-million-transistor M2 features Cyrix’s fully compatible MMX technology, a quadrupled (64KByte) internal Cache, enhanced memory management, and other architectural and performance innovations. In March 1998, Cyrix announced the 6x86MX™ PR266 processor, which delivers performance comparable to systems based on a 266MHz Pentium® II processor, at approximately half the price. The 6x86MX™ processor also provides Winstone® 98 performance on par with similarly configured Pentium II processor systems running at 266MHz. Meanwhile, the development of the seventh-generation processor, called the M3 is under way.

Cyrix began shipping its first MediaGX processors in early 1997. Due to the number of functions integrated on- chip, the MediaGX eliminates the need for L2 Cache, , graphics controller, graphics memory, and audio card. Cyrix’s MediaGX processors are offered at speeds of 166MHz, 180MHz, 200MHz, and 233MHz. The MPU interfaces with the Cyrix-designed Cx5510 core logic chipset that provides a PCI-ISA bridge.

2-124 North American Company Profiles Cyrix

In March 1998, Cyrix announced the 233MHz MMX-enhanced MediaGX™ processor. The company currently uses 0.35µm five-layer-metal CMOS technology for its 6x86 products. The initial MediaGX processor is being produced with IBM’s 0.44µm three-layer-metal CMOS process, with a 0.4µm process scheduled for implementation by the end of 1997. The 6x86MX is being produced with IBM’s 0.33µm five-layer-metal CMOS process.

Semiconductor Fabrication Facilities

Cyrix's agreement with IBM Microelectronics was established in April 1994 and is good through the end of 1999. As part of the agreement, Cyrix made a capital equipment investment of about $88 million in an IBM fab in 1995. Cyrix expanded its partnership with IBM in May 1996 to increase the quantity of wafers supplied by IBM through the end of 1997.

Key Agreements

• In November 1997, Cyrix became a wholly owned subsidiary of National Semiconductor.

• In 1Q96, Cyrix announced an agreement with Cadence Design Systems. Under the agreement, Cadence will provide a broad range of technologies and services to Cyrix, and work together in designing Cyrix’s seventh- generation x86 microprocessor, called the M3.

• Cyrix and IBM announced a five year agreement in early 1994 under which IBM is manufacturing Cyrix's x86- compatible microprocessors. The agreement calls for the two companies to equally share the output of the Cyrix-designed chips.

2-125 Dallas Semiconductor North American Company Profiles

DALLAS SEMICONDUCTOR

Dallas Semiconductor Corporation 4401 South Beltwood Parkway Dallas, Texas 75244-3292 Telephone: (972) 371-4000 Fax: (972) 371-3715 Web Site: www.dalsemi.com

IC Manufacturer Founded: 1984

Regional Headquarters/Representative Locations

Europe: Dallas Semiconductor • Birmingham, England Telephone: (44) (121) 782-2959 • Fax: (44) (121) 782-2156

Asia-Pacific: Dallas Semiconductor Taiwan • Taipei, Taiwan Telephone: (886) (2) 698-3940 • Fax: (886) (2) 698-3941

Financial History ($M), Fiscal Year Ends last Sunday in December

1992 1993 1994 1995 1996 1997 Sales 120 157 181 233 288 368 Net Income 18 26 30 37 38 65 R&D Expenditures 16 19 23 29 35 46 Capital Expenditures 16 21 45 49 60 59

Employees 696 748 850 1,000 1,300 1,800

Company Overview and Strategy

Dallas Semiconductor (NYSE: DS) designs, manufactures, and markets high performance CMOS ICs and semiconductor-based systems that provide innovative and cost-effective solutions to electronic design problems in a wide range of markets. The company's continuous new product development strategy serves as a means to increase future revenues and avoid dependence upon a single industry, market, or customer. Its products are sold to OEMs in the and workstation, scientific and medical equipment, industrial control, automatic information, telecommunications, and other markets.

Positive 1997 financial results have further validated their strategy of using proprietary circuit architectures and technologies to create non-commodity products for a broad customer base.

2-126 North American Company Profiles Dallas Semiconductor

Management

Charles Vincent Prothro Chairman, President and Chief Executive Officer Chao C. Mai, Ph.D. Senior Vice President Michael L. Bolan Vice President, Marketing and Product Development Alan P. Hale Vice President, Finance F.A. Scherpenberg Vice President, Computer Products

Products and Processes

Dallas Semiconductor's product groups include:

• Timekeeping circuits • Microcontrollers (8-bit) Commercial Secure MCUs Computing High-speed MCUs

• Non-volatile RAMs (16K to 4M) • Automatic Information Integrated battery backup Cryptographic iButton™ Intelligent sockets iButton™

• Telecommunications ICs • System extension circuits T1 and E1 circuits CPU supervisors SCSI terminators Digital potentiometers Thermal and battery management • Silicon timed circuits

In 1996, Dallas’ Automatic Information product division introduced a device called the Cryptographic iButton. The device is said to provide safer transfer of sensitive information such as credit card numbers or electronic transfer of funds. The device consists of a processor, an arithmetic accelerator, a true time clock, a random number generator, and 8K of SRAM.

For 1998, Dallas Semiconductor remains committed to new product development and manufacturing cost reductions, including a more aggressive policy of shrinking the size of their chips.

2-127 Dallas Semiconductor North American Company Profiles

Semiconductor Fabrication Facilities

Dallas Semiconductor 4401 South Beltwood Parkway Dallas, Texas 75244-3292 Cleanroom size: 17,000 square feet (Class 1) Capacity (wafers/week): 2,500 Wafer size: 150mm (2 lines) Process: CMOS Feature sizes: 0.35µm-0.6µm

2-128 North American Company Profiles Digital Semiconductor

DIGITAL SEMICONDUCTOR*

Digital Equipment Corporation Digital Semiconductor 77 Reed Road Hudson, Massachusetts 01749 Telephone: (508) 568-6868 Web Site: www.digital.com/semiconductor

Captive IC Manufacturer

*In October 1997, Intel and Digital Equipment Corporation announced that they have agreed to establish a broad- based business relationship. Under the agreement, Intel will purchase Digital’s semiconductor operations, including facilities in Hudson, Massachusetts, as well as development operations in Jerusalem, Israel and Austin, Texas, for approximately $700M. The agreement is subject to U.S. government review.

Financial History ($M), Fiscal Year Ends June 30

1992 1993 1994 1995 1996 Corporate Sales 13,931 14,371 13,451 13,813 14,563 Net Income (2,796) (251) (2,156) 122 (112)

Semiconductor* Sales 230 240 270 305 375 Internal Sales 230 235 245 255 290 External Sales — 5 25 50 85

Employees — — — — 2,500

*Calendar year

Company Overview and Strategy

Digital Equipment Corporation (DEC) is one of the world's largest manufacturers of computers and computer- related products. The company provides network computer systems, systems integrator, computer peripheral equipment, software, and associated computer accessory equipment to customers in more than 100 countries.

2-129 Digital Semiconductor North American Company Profiles

DEC began developing semiconductor products in 1975 for use in its electronic systems. In 1993, Digital expanded its semiconductor charter to become a merchant vendor. As part of its push into the merchant market, DEC spun out its semiconductor operation in mid-1994 to become an autonomous business unit, called Digital Semiconductor. For the past several years, Digital Semiconductor has worked to establish itself as an independent semiconductor vendor, but its largest customer always has been Digital Equipment, which bases its workstations and servers on its proprietary high-performance RISC microprocessor, called Alpha. Still, the company desires to expand its merchant focus.

Digital Semiconductor designs, manufactures, and markets a broad portfolio of semiconductor products including its Alpha processor and PCI-based networking, bridge, and graphics/multimedia devices.

Management

Robert B. Palmer President and Chief Executive Officer Charles F. Christ Vice President and General Manager, Components Division R.E. Caldwell Vice President, Digital Semiconductor William N. Johnson Vice President, Marketing, Digital Semiconductor

Products and Processes

Digital Semiconductor’s IC products include its Alpha 64-bit RISC microprocessors with speeds as fast as 533MHz; the high-performance, low-power StrongARM 32-bit RISC microprocessor; PCI-compliant system and peripheral logic chipsets; PCI-PCI bridge devices; Ethernet and Fast Ethernet LAN controller ICs; and graphics and multimedia coprocessors.

Digital’s Alpha 21164 microprocessor is available in speed grades ranging from 366Hz to 533Hz. It is designed for use in high-performance computing systems like network servers and workstations. A 600MHz version of the 21164 entered the sampling stage in early 1997. Also in early 1997, Digital announced its first Alpha chip designed for use in a desktop PC. The 21164PC die is 34 percent smaller than its big brother 21164 and requires 86 fewer pins. The result is a high-performance 533MHz RISC microprocessor for systems that sell for as little as $2,500.

Digital's IC products are built using primarily CMOS and bipolar technologies, with all advanced process development centered on CMOS technology. Its leading-edge 0.35µm, four-level interconnect, CMOS-6 process technology is being used to manufacture the latest versions of the Alpha 21164.

2-130 North American Company Profiles Digital Semiconductor

Semiconductor Fabrication Facilities

In 1995, Digital Semiconductor sold to Motorola its South Queensferry, Scotland, fabrication facility.

Digital Semiconductor 75 Reed Road Hudson, Massachusetts 01749 Telephone: (508) 568-4000 Fab 6 Cleanroom size: 64,000 square feet Capacity (wafers/week): 5,000 Wafer size: 200mm Process: CMOS Products: MPUs, MPRs, ASICs, logic ICs, custom ICs Feature sizes: 0.35µm, 0.5µm (eventually, 0.18µm)

Key Agreements

• became a licensee of the Alpha architecture in 1996 and is manufacturing and selling Alpha microprocessors to its customers as an independent alternate source of Alpha technology.

• Mitsubishi agreed to be both a second source for Digital's Alpha MPUs and a development partner. The Japanese company began producing Alphas for Digital at its Saijo facility in late 1994. Subsequently, Mitsubishi began designing and fabricating its own versions of the RISC architecture for use in its own systems and for sale to its own customers.

• In 1995, Advanced RISC Machines Ltd. began jointly developing with Digital and Apple Computer a family of high-performance microprocessors compatible with the ARM RISC line. The 32-bit processor, called StrongARM, is being produced by Digital using its 0.35µm CMOS-6 process. Volume shipments began in the first half of 1996 and are targeted at applications in digital imaging, multimedia, set-top boxes, handheld computers, and communications products, as well as Apple's Newton line.

2-131 Diodes Inc. North American Company Profiles

DIODES INCORPORATED

Diodes Inc. 3050 East Hillcrest Drive Westlake Village, California 91362 Telephone: (805) 446-4800 Fax: (805) 446-4800 Web Site: www.diodes.com

Fabless IC Manufacturer Founded: 1959

Financial History ($M)

1996 1997 Sales 56 66 Net Income 3 5

Ownership: Publicly held. ASE: DIO.

Company Overview and Strategy

Diodes Incorporated provides high-quality discrete semiconductor devices and customer support to leading manufacturers in the automotive, electronics, computing and telecommunications industries. Diodes’ products include small signal transistors and MOSFETs, transient voltage suppressors, zeners, Schottkys, diodes, rectifiers, and bridges.

Despite pricing pressures is Asia, higher revenues and an improvement in gross margins was experienced in 1997 – gross margins grew to 27.9 percent in 1997, from 26.5 percent in the prior year. The record results reflect the growing contribution of Kai Hong, a joint venture manufacturing facility in China. Twenty-four percent of Diodes’ 1997 revenues were attributed to Asian business, compared to 14 percent the prior year.

First announced in June 1995, Kai Hong, in which the Company has invested approximately $5M, owns and operates a facility in mainland China for the manufacture of high-quality SOT 23 products. In 1997, Diodes recently increased their equity position in Kai Hong to 95 percent from 70 percent, and is currently implementing a planned $12M capital equipment expansion program at Kai Hong.

In 1990, Diodes formed a technology alliance with Lite-On Group which specializes in power semiconductors. Lite-On Group now owns 40 percent of Diodes, Inc. stock. In 1997, Lite-On Group and created a joint venture, of which Diodes is now a part.

2-132 North American Company Profiles Diodes Inc.

Management

Michael A. Rosenberg President Joseph Liu Chief Financial Officer

Products and Processes

Diodes offers the following discrete products.

• Schottky diodes and rectifiers; • Switching diodes; • Zeners and transient voltage suppressors; • Standard, fast, and ultra-fast and super fast recovery rectifiers; • Bridge rectifiers; and • Small-signal transistors and MOSFETs.

Semiconductor Fabrication Facilities

Diodes Inc. has agreements with foundry facilities in Taiwan and Shanghai.

2-133 Dionics North American Company Profiles

DIONICS

Dionics Inc. 65 Rushmore Street Westbury, New York 11590-4839 Telephone: (516) 997-7474 Fax: (516) 997-7479

IC Manufacturer

Employees: 25

Financial History ($M), Fiscal Year Ends December 31

1996 1997 Sales 1.5 1.8 Net Income 56 146 R&D Expenditures 35 40

Company Overview and Strategy

Established in 1969, Dionics is a developer, manufacturer, and marketer of innovative high-quality integrated circuits and discrete products. It targets these devices at areas of the industrial and military markets where high voltage, high frequency, and unusual structures are required.

Using a dielectric isolation process, Dionics has evolved from a supplier of discrete components to a manufacturer of hybrid circuits and photovoltaic ICs, solid-state relays (SSRs), and MOSFET-drivers. The products were initially targeted for use in digital watches, but have since made their way to markets that require high reliability that is inherent to the dielectric isolation process.

Management

Bernard L. Kravitz President

Products and Processes

Photovoltaic ICs, SSRs, and MOSFET-drivers.

2-134 North American Company Profiles Dionics

Semiconductor Fabrication Facilities

Dionics Inc. 65 Rushmore Street Westbury, New York 11590-4839 Cleanroom size: 3,000 square feet Capacity (wafers/week): 400 Wafer size: 100mm Process: Dielectric isolation bipolar Products: Photovoltaic ICs, SSRs, and MOSFET-drivers Feature sizes: 2.0µm-5.0µm

2-135 DSP Group North American Company Profiles

DSP GROUP

DSP Group, Inc. 3120 Scott Boulevard Santa Clara, California 95054 Telephone: (408) 986-4300 Fax: (408) 986-4442 Email: [email protected] Web Site: www.dspg.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: DSP Group Japan • Tokyo, Japan Telephone: (81) (3) 3449-7851

Europe: DSP Group Europe • Massy, France Telephone: (33) (6) 0768-6754

Israel: DSP Group Israel • Herzelia, Israel Telephone: (972) 9 952-9696

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 9 12 29 50 53 62 Net Income (6) (0.4) 4 7 6 11 R&D Expenditures 4 2 4 8 8.5 8.4

Employees — — 106 115 100 105

Ownership: Publicly held. NASDAQ: DSPG.

Company Overview and Strategy

DSP Group Inc. is a leader in the development and marketing of high-performance, cost-effective, Digital Signal Processing (DSP) cores and integrated solutions for the consumer telephony and computer telephony markets. By combining three key technologies — digital signal processing, speech processing algorithms and telephony algorithms — the company is delivering a wide range of enabling application-specific ICs to these markets. DSPG’s core designs and software are licensed by industry leaders such as NEC, LSI Logic, Samsung, Fujitsu, Siemens, VLSI Technology, GEC Plessey, ROHM, TSMC and more.

2-136 North American Company Profiles DSP Group

DSP Group began business in 1987 with the purchase of a small design house that was involved in paramilitary DSP-related design for applications such as noise cancellation and eavesdropping. The company began developing its own DSPs and established a design center in 1990. In 1992, the company launched DSP Semiconductors as a subsidiary to directly focus on the licensing of its technology. Since then, DSP Semiconductors has been folded back into DSP Group and now operates as the Semiconductor Division.

The company’s strategy is to use its digital speech processing knowledge, and DSP core architecture to be a leading supplier of DSP-based solutions for the emerging markets such as digital speech products.

Management

Igal Kohavi Chairman Eli Ayalon President and Chief Executive Officer Avi Basher Vice President, Finance, and Chief Financial Officer Martin Skowron Senior Vice President, Operations Gideon Wertheizer Corporate Vice President, Marketing

Products and Processes

DSP Group has developed a family of low-power consumption, low-cost DSP core architectures that are suitable for consumer, mobile computer, and communications products. The company’s products are manufactured using 0.35µm and 0.6µm CMOS technologies.

SmartCores™ Products • The company’s SmartCores™ products are a family of standard DSP macrocells for use in standard cell ASIC libraries. The SmartCores™ are designed for speech/audio processing, telecommunications, digital cellular and embedded control applications. The first three members of the family are the PineDSPCore®, the OakDSPCore®, and the TeakDSPCore™ all of which are 16-bit general-purpose, low-power, low-voltage, and high-speed DSP core architectures. The PineDSPCore® is based on 0.8µm or 0.6µm double-level-metal CMOS technology (scaleable to 0.5µm and below). The OakDSPCore® is based on 0.6µm double-level-metal CMOS technology (scaleable to 0.35µm and below). The TeakDSPCore™ is a “Soft Core” design and is portable to any technology.

2-137 DSP Group North American Company Profiles

TrueSpeech® Software • TrueSpeech® is a proprietary software-based digital speech compression technology. It is designed for a wide range of applications, including video conferencing, computer telephony, the Internet, and personal recorders.

CT Products • DSP Group’s CT products are coprocessors that implement real-time TrueSpeech® compression and decompression functions. They are available for Windows 95 messaging, DSVD (digital simultaneous voice and data) modem, video conferencing, and multimedia visual telephony applications.

TAD Related Products • The company’s D6000 family of products are for digital telephone answering device (TAD) and voice recorders. They implement all functions of TrueSpeech® compression and decompression, voice prompts, voice recognition, telephone line signal processing, and memory management.

Current licensees of the company’s DSP Core architectures include Adaptec, Asahi Kasei Microsystems, Atmel- ES2, DSP Communications, GEC Plessey Semiconductors, Hyundai/Symbios, ITDK Semiconductors, Integrated Circuit Systems, LSI Logic, NEC, Rohm, Samsung, Siemens, TI/Silicon Systems, TEMIC, TSMC, VLSI Technology, and Fujitsu among others.

Licensees of DSP Group’s TrueSpeech® technology include Atmel, Cirrus Logic, Creative Labs, Intel, LSI Logic, Lucent Technologies, Microsoft, Siemens, Sierra Semiconductor, U.S. Robotics, and VLSI Technology.

Semiconductor Fabrication Facilities

As a fabless supplier, DSPG depends on foundries for the manufacturing of its devices. The company has established foundry relationships with several companies, including TSMC and Samsung.

2-138 North American Company Profiles Edal Industries

EDAL INDUSTRIES, INC.

Edal Industries, Inc. 51 Commerce Street East Haven, Connecticut 06512 Telephone: (203) 467-2591 Fax: (203) 469-5928 Web Site: www.eemonline.com/edal Email: www.mjlweb.com/edalind

IC Manufacturer Founded: 1958

Financial History ($M)

1996 1997 Sales 5.6 6.6

Employees 65 75

Ownership: Privately held.

Company Overview and Strategy

Edal Industries, Inc., is a manufacturer of discrete components: diodes rectifiers, varistors and metal oxide varistors.

Management

Robert Cowles President

Products and Processes

Edal manufactures a complete line of silicon rectifiers — from 1 amp diodes to 6 amp diodes; high voltage diodes to 50,000 volts; high voltage rectifier assemblies to 220,000 volts; and bridge rectifiers. They also make a complete line of power rectifiers which include D04, D05, D08 and D09 up to 300 amps. Edal offers a complete line of JEDEC devices and can supply units which are screened and tested to MIL-S19500. Special assemblies such as single and three phase bridge assemblies, in current ranges from 25-100 amps, are also available.

2-139 Edal Industries North American Company Profiles

Product families are as follows.

• Rectifiers — silicon rectifiers, fast recovery rectifiers, rectifier assemblies, power rectifiers, selenium rectifiers, and copper oxide rectifiers; • Power diodes; • Copper oxide varistors; • Modulators; • Phase comparators; and • Selenium diodes.

2-140 North American Company Profiles EDI

ELECTRONIC DESIGNS, INC. (EDI)

Electronic Designs, Inc. One Research Drive Westborough, Massachusetts 01581 Telephone: (508) 366-5151 Fax: (508) 836-4850 Web Site: www.electronic-designs.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends September 30

1995 * 1996 1997 Sales 40 59 42 Net Income (3) 4 3 R&D Expenditures 3 3 2.1

Employees 85 125 130

*Pro forma data. Electronic Designs, Inc. was acquired by Crystallume in October 1995, and the entire company was renamed Electronic Designs, Inc. in March 1996.

Company Overview and Strategy

Electronic Designs, Inc. (NASDAQ: EDIX) is a supplier and an industry leader in the design, manufacture and marketing of high performance memory products and Active Matrix Liquid Crystal Displays (AMLCDs) for Original Equipment Manufacturers (OEMs) in the global commercial, industrial and military markets, particularly telecommunications, datacommunications and avionics.

EDI’s primary product lines are high density, high performance memory devices (Asynchronous SRAM, Synchronous SRAM, DSP Memory Solutions, PC CARDS, Flash, and DRAM) for the performance driven telecommunications and datacommunications markets, and ruggedized applications worldwide. New commercial memory modules offered by EDI are geared to support the latest microprocessor devices used in advanced communications systems.

2-141 EDI North American Company Profiles

EDI’s memory products are used in many segments of the electronic equipment industry, including computer systems and peripherals, telecommunications, medical equipment, and military systems. The company emphasizes a time-to-market advantage for its high-speed SRAM modules. Other memory products incorporate SRAM, DRAM, flash, and EEPROM technologies. The company recently announced the release of a line of PCMCIA memory cards. Memory product development is currently focused on the design and prototyping of new module and monolithic products based on 4M SRAM, as well as on new MCM-L, flash memory, and high-density DRAM designs.

EDI’s offering of AMLCDs includes various sizes of ruggedized panels for use in display heads, monitors, and computer systems. The company is developing technology for a PC system incorporating its displays, in addition to electronic circuit boards for “smart” displays.

Management

Don McGuinness Chairman, President, and Chief Executive Officer Frank Edwards Senior Vice President, Finance, and Chief Financial Officer Ken Buckley Vice President, Marketing and Sales Daniel R. Doyle Vice President, Display Products Frank Muscolino Vice President and General Manager, Display Products

Products and Processes

EDI's products include the following:

• High-speed monolithic 1M and 4M CMOS SRAMs (industrial or military). • High-density CMOS SRAM modules (1M to 32M) with speeds of 8ns-70ns (commercial, industrial, or military). • JEDEC pinout super high-density DRAM modules (64MB to 288MB; commercial or industrial). • JEDEC pinout flash SIMM modules (4M to 64MB; commercial or industrial). • Active-matrix LCDs for avionics and other specialty applications.

Semiconductor Fabrication Facilities

EDI handles assembly, test, and QCI at its headquarters in Westborough. For the production of its memory products in wafer, die, and component form, the company has partnerships with major semiconductor manufacturers in the U.S. and the Far East, including Micron, Mitsubishi, Samsung, and Sharp.

2-142 North American Company Profiles EDI

Key Agreements

• In February 1998, EDI and SanDisk Corporation announced the formation of a strategic partnership to introduce embedded solid state data storage modules. EDI will incorporate SanDisk’s ATA/IDE Flash Chipset technology in their new embedded Flash Module product family.

• In May 1997, EDI announced its intention to divest its Crystallume Diamond Products Division. This divestiture was completed in October 1997. As a result of the Acquisition and subsequent divestiture of the Crystallume Diamond Products Division, EDI’s current focus is the design, manufacture and sale of semiconductor memory and flat panel display products to specialty niche markets within these commodity markets.

• EDI formed an agreement with Atmel in 1994 calling for EDI to design, manufacture, and market high-density memory modules using Atmel's flash memory devices.

2-143 EG&G Optoelectronics North American Company Profiles

EG&G OPTOELECTRONICS

EG&G, Inc. Optoelectronics Group 2175 Mission College Boulevard Santa Clara, California 95054 Telephone: (408) 565-0700 Fax: (408) 565-0777 Web Site: www.egginc.com/optogrp

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: EG&G Reticon • Munich, Germany Telephone: (49) (89) 92692-666 • Fax: (49) (89) 911-008

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Corporate Sales 1,320 1,319 1,333 1,420 1,427 1,460 Net Income 88 59 (6) 68 60 34*

Optoelectronics Sales 210 201 213 259 270 261

*Included an asset impairment of $28.2 million, $23.5 million after tax.

Company Overview and Strategy

EG&G Optoelectronics is one of three product groups within EG&G, Inc., a $1.4 billion company involved in diversified technology markets. The EG&G Optoelectronics business segment consists of eight autonomous divisions, including EG&G Amorphous Silicon, EG&G Canada Ltd., EG&G Electro-Optics, EG&G Heimann Optoelectronics, EG&G IC Sensors, EG&G Judson, EG&G Reticon, and EG&G Vactec. These businesses specialize in photonic products that are sensitive in the x-ray and ultraviolet to far infrared region of the light spectrum.

2-144 North American Company Profiles EG&G Optoelectronics

The divisions involved in the production of integrated circuit-related devices are EG&G Reticon and EG&G IC Sensors. Reticon was founded in 1971, and became a subsidiary of EG&G in 1976. From its start, Reticon has been a leader in image sensing. It was among the first semiconductor companies to specialize in solid-state imaging components and vision system products. IC Sensors was formed originally as a spin-off from Foxboro/ICT in 1982, and was acquired by EG&G in 1994. IC Sensors specializes in the manufacturing of silicon micromachined pressure sensors, accelerometers, valves, and custom microstructures for applications in automotive airbags, scientific instruments, and medical pressure sensitive devices.

Management

Reiner Quad General Manager, EG&G IC Sensors Chris Raanes General Manager, EG&G Reticon

Products and Processes

EG&G Reticon Products • EG&G Reticon manufactures solid-state linear and area cameras, both analog and digital, image sensor arrays, CCDs and pinned photodiode arrays including CMOS, PMOS and CCD process, and machine vision systems.

EG&G IC Sensors Products • Microelectromechanical system (MEMS) devices, such as pressure sensors, accelerometers, and custom microstructures for a broad range of applications, including medical, industrial, automotive, consumer, and aerospace.

Semiconductor Fabrication Facilities

EG&G Reticon EG&G IC Sensors 345 Potrero Avenue 1701 McCarthy Boulevard Sunnyvale, California 94086 Milpitas, California 95035 Telephone: (408) 738-6979 Telephone: (800) 767-1888 Fax: (408) 738-3832 Fax: (408) 432-7322 Capacity (wafers/week): 625 Cleanroom size: 10,000 square feet Wafer size: 100mm Wafer size: 100mm Processes: CMOS, PMOS, CCD, Process: Bipolar pinned photodiode arrays Products: MEMS devices and sensors Products: Linear ICs and image sensing devices Feature size: 2.0µm

2-145 Elantec Semiconductor North American Company Profiles

ELANTEC SEMICONDUCTOR

Elantec Semiconductor, Inc. 675 Trade Zone Blvd. Milpitas, California 95035 Telephone: (408) 945-1323 Fax: (408) 945-9305 Web Site: www.elantec.com

IC Manufacturer Founded: 1983, California; 1995 reincorporated in Delaware

Regional Offices/Representative Locations

Eastern US: Elantec Semiconductor, Inc. • Hingham, MA Telephone: (781) 741-5977 • Fax: (781) 741-5976

Europe: Elantec Semiconductor, Inc. • Wokingham, United Kingdom Telephone: (44) (1189) 776080

Financial History ($M), Fiscal Year Ends September 30

1992 1993 1994 1995 1996 1997 Sales 15 18 23 27 37 35 Net Income 0.3 1 1 3 4 0.6 R&D Expenditures — 4 4 5 6 5 Capital Expenditures — 1 1 2 2 1.5

Employees 110 120 125 155 162 163

Ownership: Publicly held. NASDAQ: ELNT.

Company Overview and Strategy

Elantec Semiconductor, Inc. designs, manufactures, and markets high-performance analog integrated circuits for the video/multimedia, data processing, instrumentation, and communications markets (i.e., amplifiers, drivers, faders). The company serves these markets with standard products and application-specific standard products (ASSPs), using primarily high-speed complementary bipolar and advanced CMOS technologies.

The company offers more than 150 high performance analog products, such as amplifiers, drivers, faders, transceivers and multiplexers, most of which are available in multiple packaging configurations. Their products are sold either directly, with the assistance of independent sales representatives, or indirectly through independent distributors to over 2,500 electronic systems manufacturers worldwide.

2-146 North American Company Profiles Elantec Semiconductor

Management

David O'Brien, Ph.D. President and Chief Executive Officer Richard E. Corbin Vice President, Technology Ralph S. Granchelli, Jr. Vice President, Marketing Ephraim Kwok Vice President, Finance, and Chief Financial Officer Barry L. Siegel Vice President, Engineering and Quality

Products and Processes

Elantec's analog and mixed-signal ICs for commercial markets include the following:

• Op amps • H-sync Genlock-computer video circuits • Video circuits • DC restore subsystems • Analog buffers • Fader circuits • Fully integrated DC/DC converters • MOSFET drivers • Comparators and ATE pin drivers • PWM controllers • IGBT drivers • Laser diode drivers

The company’s process technologies include dielectric isolation and junction isolation complementary bipolar, junction isolation bipolar, and CMOS technologies.

In 1996, the company introduced its first product for the optical disk storage market – a high performance laser driver to power the read/write function of the laser diode. Long term this market has great potential as consumers transition to DVD (digital video disk) for their primary video entertainment system.

2-147 Elantec Semiconductor North American Company Profiles

Semiconductor Fabrication Facilities

Elantec Semiconductor, Inc. 1996 Tarob Court Milpitas, California 95035 Cleanroom size: 4,000 square feet Capacity (wafers/week): 300 Wafer size: 100mm Processes: Complementary bipolar, complementary bipolar dielectric isolation (DI), JI bipolar, CMOS. Products: Analog ICs Feature sizes: 5.0µm (bipolar); 1.2µm, 2.0µm (CMOS)

During the first quarter of 1998, Elantec initiated the expansion of its wafer fabrication facility to provide additional bipolar wafer capacity. Completion is scheduled for mid-1998.

2-148 North American Company Profiles Electronic Technology Corporation

ELECTRONIC TECHNOLOGY CORPORATION

Electronic Technology Corporation 402 Campus Drive Huxley, IA 50124 Telephone: (515) 597-7000 Fax: (515) 597-7001 Web Site: www.etechcorp.com

Fabless IC Supplier

Company Overview and Strategy

Electronic Technology Corporation (ETC) was founded in 1983, initially as a design center for linear and digital gate array manufacturers. The company has since developed its own mixed-signal CMOS designs and technology.

The company now supplies mixed-signal ASICs to the industry. Customers include: Hewlett-Packard, Eaton Automotive Controls, and ITT Aerospace. The company has its own CAD, testing and quality assurance capabilities at the above location.

ETC is ISO9001 and QS9000 certified.

2-149 Corporation North American Company Profiles

ENSONIQ CORPORATION

ENSONIQ Corporation 155 Great Valley Parkway Malvern, Pennsylvania 19355 Telephone: (610) 647-3930 Fax: (610) 647-8908 Web Site: www.ENSONIQ.com Email: [email protected]

Fabless IC Manufacturer Founded: 1982

Regional Offices/Representative Locations

Europe: Thame Components Ltd., Oxfordshire, England, U.K. Telephone: (44) 1 8 44 261188 • Fax: (44) 1 8 44 261681

Korea: PoleTech Systems Co., Ltd., Seoul, Korea Telephone: (82) (2) 431-4359 • Fax: (82) (2) 431-4358

Taiwan: World Peace Industrial Co., Taipei, Taiwan, ROC Telephone: (886) 2 788-5200 • Fax: (886) 2 788-3255

Financial History ($M)

1997 Corporate Sales 1.3 Net Income 143

Semiconductor Sales < 100 Employees 200

Ownership: Publicly held under Creative Technology Ltd. NASDAQ: CREAF.

Company Overview and Strategy

ENSONIQ is a key innovator in the design and development of PCI audio and has strong brand recognition association with its line of electronic musical instruments. The Company is the leading supplier of sound ICs, owning over 75 percent of the sampling keyboard market and recognized as one of the leading suppliers of samplers and synthesizers to professional, semi-professional and home musicians.

2-150 North American Company Profiles ENSONIQ Corporation

ENSONIQ products are sold through a select group of musical instrument retailers in the United States, international distributors and a direct sales office in Japan.

In 1992, after years of successfully integrating ENSONIQ chip technology into products of companies such as Apple Computer, Baldwin Piano & Organ, and Taito Corporation, ENSONIQ established its Multimedia Division. The company’s expertise in audio technology has won a wide range of design and production contracts from PC, video arcade game, karaoke, and other markets (such as Disney Imagineering, which uses ENSONIQ technology for programming audio in its theme park rides). In 1994, the company entered the rapidly growing market for personal computer multimedia sound cards, using its music and sound expertise to lead the evolution of PC audio from inferior FM (frequency modulation) synthesis to the more realistic sounding wavetable synthesis.

In December of 1997, ENSONIQ was acquired by Creative Technology Ltd., based in Singapore, for approximately $75M. Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education, music and productivity tools markets. Creative’s products are marketed through both the OEM and retail channels under a variety of trademarks, including the “Blaster” family name. ® has become the multimedia industry’s de facto audio standard.

Each of ENSONIQ’s products contains one or more custom integrated circuits. These chips are specifically designed for wavetable synthesis, sampling and digital effects, incorporating in hardware the sound generation and processing algorithms.

Management

Albert Scharpentier Chairman of the Board and Chief Executive Officer Joel Friel Vice President, Engineering John Spataro Director of Marketing – Multimedia Department David Looft Worldwide Retail Sales Manager

Products and Processes

ENSONIQ’s key products include the following.

• PCI Bus – Digital Audio and Music Controllers — The PCI bus, ES1370, provides high speed access to system memory and resources for 2- and 4-Mbyte wavetable data and effects processing. It is compatible with the multimedia enhancement of Intel’s MMX architecture, and also supports drivers for Windows 3.1x, Windows 95 and Windows NT 3.5/4.0. The AudioPCI chipset, which includes the AK4531 codec, provides a low power solution for the motherboard. Power-down mode is supported under software control.

• The Signal Processor, ES5510 – “ESP,” is a custom digital signal processor chip with over 75,000 transistors, used in the Company’s musical instruments and some multimedia products. It is a high-speed microprocessor with an instruction set that is optimized for manipulating audio data, with typical sample rates between 10kHz and 50kHz. The ESP chip is capable of creating a wide range of digital effects including reverb, delay, echo, equalization, and distortion, and is capable of generating multiple effects simultaneously. The ESP is a VLSI device designed in a 1.0 micron, double-metal, CMOS process.

2-151 ENSONIQ Corporation North American Company Profiles

• Sound ROM Library – ENSONIQ’s sound library contains sounds ranging from basic General MIDI to special purpose effects, world instruments, and large memory sounds that satisfy even the most demanding fidelity requirements.

• The ES 5506 OTT chip is a sample playback synthesizer designed to playback digital recordings. It creates one or more complete musical instruments through onboard signal processing. OTT is capable of altering pitch and timbre of a digital recording and operating with 32 channels. OTT is a VLSI device designed in a 1.5 micron, double-metal CMOS process, and contains approximately 80,000 transistors.

Key Agreements

• In September 1997, Berkley Integrated Audio Software, Inc. (BIAS), a leading manufacturer of digital audio editing software, announced a software bundling agreement with ENSONIQ, creators of the new Professional Audio Recording Integration System (PARIS), a fully integrated 24-bit digital audio workstation. According to the agreement, ENSONIQ’s PARIS will now include the Peak LE digital audio editing software for Macintosh.

2-152 North American Company Profiles ESS Technology

ESS TECHNOLOGY

ESS Technology, Inc. 48401 Fremont Boulevard Fremont, California 94538 Telephone: (510) 492-1088 Fax: (510) 492-1098 Web Site: www.esstech.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Asia-Pacific: ESS Technology, Inc. • Taipei, Taiwan Telephone: (886) (2) 346-5300 • Fax: (886) (2) 346-1698

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 24 15 33 106 227 250 Net Income 5 0.2 8 30 22 (10.9) R&D Expenditures 4 3 4 9 20 29

Employees — — — 145 253 500

Ownership: Publicly held. NASDAQ: ESST.

Company Overview and Strategy

ESS Technology, founded in 1984, designs, develops, and markets highly integrated mixed-signal semiconductor and software solutions for multimedia applications in the PC and consumer markets. Current development is focused on new PC audio and multimedia products for the PC and consumer markets that provide video and fax/modem/voice capabilities.

Management Fred S.L. Chan Chairman and Chief Executive Officer Robert L. Blair Executive Vice President, Operations Nicholas A. Aretakis Vice President, PC Products Group John H. Barnet Vice President and Chief Financial Officer Hoover J. Chen Vice President, Engineering Johnston Chen Vice President, Consumer Products Group Jan Fandrianto Vice President, Video Group Engineering Hadi Ibrahim Vice President, Engineering, Multimedia Technology Design (Austin, Texas) Robert S. Plachno Vice President, Research and Development Roger K. Shum Vice President, Manufacturing Chi-Shin Wang Vice President and Chief Technical Officer

2-153 ESS Technology North American Company Profiles

Products and Processes

ESS Technology has three principal product lines: the AudioDrive™ family, which targets the PC digital audio market; the VideoDrive™ family, which targets MPEG-1 and MPEG-2 decompression-based consumer products, such as DVD, video compact disk players, and set-top boxes; and the TeleDrive™ family, which focuses on integrated audio-fax/modem applications, including full duplex speakerphone, digital simultaneous voice and data, and videoconferencing.

The company’s chips are manufactured using mixed-signal 0.35µm, 0.5µm and 0.6µm CMOS process technologies.

Semiconductor Fabrication Facilities

ESS has contracts with several independent foundries for the manufacture of its products. The majority of its devices are currently manufactured by Taiwan Semiconductor Manufacturing Company (TSMC), its primary supplier since 1989. The company also uses UMC, Sharp Corporation, and IC Works.

In December 1995, ESS announced a wafer supply program to commit approximately $62 million, and an option to commit another $31 million, over a three year period for expanding manufacturing capacity and developing advanced technology. The company expanded its relationship with TSMC by entering into a long term agreement for an increased amount of wafer capacity. ESS agreed to pay approximately $32 million to TSMC in exchange for wafer supply through 1999. ESS also obtained an option to further expand this agreement for additional capacity.

ESS also entered into a joint venture agreement with United Microelectronics Corporation (UMC) of Taiwan. ESS agreed to invest $30 million for a five percent equity ownership in UMC’s new 200mm wafer joint manufacturing facility, United Integrated Circuits Corporation (UICC). The wafer fab, located in Taiwan, is expected to begin production in 1Q99.

2-154 North American Company Profiles Exar

EXAR

Exar Corporation 48720 Kato Road Fremont, California 94538 Telephone: (510) 668-7000 Fax: (510) 668-7017 Web Site: www.exar.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Exar Japan Corporation • Kawasaki-shi, Kanagawa, Japan Telephone: (81) (44) 922-9411 • Fax: (81) (44) 922-9368

Europe: Exar, Ltd. • Crowborough, East Sussex, United Kingdom Telephone: (44) (1892) 665718 • Fax: (44) (1892) 664354

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 146 162 159 126 92 102 Net Income 14 16 (11) 14 (9) 7.5 R&D Expenditures 11 11 14 16 14 16

Employees 500 525 468 447 365 350

Company Overview and Strategy

Exar Corporation (NASDAQ: EXAR) designs, develops and markets innovative, systems-oriented analog and mixed-signal products for video, imaging, communications and silicon sensing. The company was formed in 1971 and is located in Fremont, California, with operations in the United States, Europe, Taipei and Japan.

Exar’s competence is in the area of high-performance analog and mixed-signal design. This is becoming more important as digital devices increasingly interface with an analog world. Exar enjoys strong customer relationships in its established markets, supplying both components and subsystem solutions.

2-155 Exar North American Company Profiles

The company’s areas of concentration are:

Communications: The Communications Division supports multiple segments of transmission and networking markets. The firm offers T1/E1 and T3/E3 line interface devices; an extended line of Universal Asynchronous Transmitters Receivers (UARTs) with 1, 2 and 4 channels, and V .35 transceivers which are used in the routers that form the backbone of the Internet. A family of crystal clock oscillators and clock multipliers allow voltage control, or multiply the input clock frequencies to a higher transmission rate, as Internet speeds increase. Customers include world leaders in the fields of voice and data communications.

Video and Imaging: Exar also offers an extensive product line for video and image signal conditioning and digitizing, leveraging the company’s strong capability in high-performance analog-to-digital conversion enabling technology. The company’s video focus is on devices and subsystems for low power analog-to-digital and digital- analog functions in digital video and digital still cameras. Exar’s document imaging offerings are used in scanners, whether handheld or flatbed, and in multifunction products that combine scan, print and fax operations. Customers include consumer electronic vendors.

Silicon Sensors: Exar is a market pioneer of this emerging technology which allows users to integrate an analog function, such as pressure or motion, to electronic signal processing in a way that is fast, reliable and accurate. Sensor products are used in the automotive industry, for example, in engine control, emission control and antilock braking systems. They are also used in medical instruments, disposable blood pressure devices, and respirators and ventilators.

Management

Donald L. Ciffone President and Chief Executive Officer Ronald W. Guire Executive Vice President and Chief Financial Officer Roubik Gregorian Vice President, Chief Technical Officer, and General Manager, Communications Division Jim Knutti Vice President and General Manager, Silicon Microstructures Division John Sramek Vice President and General Manager, Video and Imaging Division Suhas "Sid" Bagwe Vice President, Strategic Development Thomas W. Jones Vice President, Quality Stephen W. Michael Vice President, Manufacturing Linda Prosser Vice President, Marketing Communications Michael Class Vice President, North American Sales

2-156 North American Company Profiles Exar

Products and Processes

Exar’s IC products can be divided into five major market groups: communications, data communications, video and imaging, silicon microstructures, and other products.

• For the communications market, the company offers T1/E1 and T3/E3.

• For the data communications market, Exar supplies UARTs/DUARTs/QUARTs, clock oscillators/clock multipliers, line drivers/receivers, frequency timing generators and Super I/O devices.

— In 1998, Exar introduced the industry’s first UARTs with on-chip transmit and receive FIFO counters — XR16C580 (single) and XR16C854 (quad).

• For video and imaging applications, Exar supplies A/D and D/A converters, CCD analog signal processors and conditioners.

— Processors include: the XRD9829, a single-channel, 10-bit integrated linear processor. It operates at 6MSPS, and integrates AFE and AD functions on one chip. The XRD9812 and the XRD9822 are 12-bit processors that operate at 8MSPS. These processors combine AFE and AD functions onto a single chip for high-performance scanners and copiers.

• Subsidiary Silicon Microstructures currently offers high-precision pressure sensors for applications such as engine control and tire pressure in automobiles, inter uterine pressure in medical instruments, and HVAC and pressure transducers in industrial equipment. Silicon Microstructures also supplies accelerometers for automotive applications.

• Other products include general purpose analog-to-digital and digital-to-analog converters for a wide variety of applications, including pace makers, handheld digital voltmeters, and high-speed digital communications.

Exar is ISO 9001 and QS9000 certified.

Key Agreements/Announcements

• In March 1998, Exar announced that Connectix Corporation chose Exar’s XRD4460 analog image signal processor for the Connectix QuickCam VC(r).

• In February 1998, Exar announced that Eastman chose its new XRD6418 analog-to-digital device for the film scanner in Kodak’s digital Advanced Photo System.

2-157 Extel Semiconductor North American Company Profiles

EXTEL SEMICONDUCTOR, INC.

Extel Semiconductor, Inc. 250 Mines Road Livermore, California 94550 Telephone: (510) 443-6300 Fax: (510) 443-6310

IC Manufacturer

Financial History ($M), Fiscal Year Ends December 31

1997 Sales $5-10 (est.) Employees 30

Kanematsu provided full funding in Q4 1996. Terms were not available. The management team was assembled by the end of Q1 1997.

Company Overview and Strategy

Extel Semiconductor, Inc. was formed June 13, 1996, as a joint venture of Kanematsu Corporation (Kanematsu Semiconductor Corporation) and Seaway Semiconductor Inc. (Livermore, CA), and Impala Semiconductor Manufacturing Corporation of the United States. Kanematsu also owns Semiconductor Corp., a manufacturer of DRAMs. Kanematsu USA, Sunnyvale, positions Extel as a “strategic business partner.” Extel operates as a privately-held company and is quite reticent about operations and financials.

Extel claims its formation was based upon a realization of the need for a “pure foundry” service in Silicon Valley. Extel began shipping for revenue October 1997.

Extel uses ZeusTec Sales (Santa Clara) as their sole manufacturer’s representative.

Management

Dr. Mano Malwah Chief Executive Officer and Chief Technology Officer Dom Consorte Director, Sales and Marketing Marcello Martinez Applications Manager Susanne Scullen Fab Manager Dan Brors Director (President, Seaway Semiconductor)

2-158 North American Company Profiles Extel Semiconductor

Products and Processes

Extel Semiconductor is a CMOS and BiCMOS sub-micron foundry. Extel is currently running a 0.6 micron, double poly, double metal process for the majority of output. Single and double poly CMOS with 2-3 metal layers from C300A-C035A is available or anticipated by Q4 1998. Double poly, two metal BiCMOS will be available in Q3 1998 and double poly, three metal BiCMOS is planned for Q1 1998. Current capacity is 2,000 six inch wafer outs per month, with 6,000 per month anticipated for “late” 1998 and 17,500 per month by “late” 1999. The foundry was initially producing geometries of 0.8µm on 150mm wafers.

Extel is offering additional capacity at attractive prices in order to penetrate the market.

Extel claims that it has customer designs in the prototype stage and that it is planning a ramp starting “mid year.” Extel’s current focus is to provide analog and mixed-signal foundry services for Silicon Valley fabless semiconductor companies, with expansion on the West Coast planned in “the near future.” Services include design assistance and customer support.

Semiconductor Fabrication Facilities

Seaway Semiconductor Inc. had purchased Intel's Fab 3 facility in Livermore, (vacated four to five years prior), some time in late winter 1996. It then converted it into two foundry fabs, initially with one as a Class 100 cleanroom capable of 20,000 wafers/month and the other a smaller Class 1 cleanroom with a capacity of 15,000 wafers/month. The Class 1 facility appears to have been assigned to the Extel joint venture, though the Class 100 facility may have been upgraded to its current capability of “better than Class 10.”

Extel currently is claiming an approximate 14,000 square feet for its cleanroom and greater than 85,000 total square feet for the facility overall.

2-159 North American Company Profiles

FAIRCHILD SEMICONDUCTOR

Fairchild Semiconductor Corporation 333 Western Avenue South Portland, Maine 04106 Telephone: (207) 775-8100 Fax: (207) 761-6027 Web Site: www.fairchildsemi.com

IC Manufacturer

Employees: 7,000

Ownership: Privately held.

Company Overview and Strategy

Fairchild Semiconductor was relaunched in March 1997, when the combined logic, memory, and discrete businesses of National Semiconductor were purchased by private investors. Fairchild Semiconductor originally emerged in the late 1950’s when the late Sherman Mills Fairchild sponsored a small group of scientists — among them and — in the development of a new process for the manufacturing of transistors. The team reached their goal in 1959 with the introduction of the Planar process. A facility was established in 1962 in South Portland, Maine, for the manufacture, test, and assembly of transistors.

Beginning in 1978, Fairchild became a major force in the development and production of logic circuits. Its first innovation was the FAST® (Fairchild Advanced Schottky Technology) family of advanced Schottky TTL logic circuits. Next came the invention of the FACT™ (Fairchild Advanced CMOS Technology) family of logic circuits in 1985. Still today, Fairchild is the leading supplier of FAST and FACT, as well as LCX, logic products.

In 1987, National Semiconductor purchased Fairchild from Schlumberger Ltd., a French conglomerate that had acquired the company in 1979. National dropped the Fairchild name, but resurrected it in mid-1996 when its logic, memory, and discrete businesses were combined to form the Fairchild Semiconductor Division. The division was sold in March 1997. National retains a 16 percent stake in Fairchild.

Together with its advanced logic IC products, Fairchild’s high-performance non-volatile memory and discrete semiconductor technologies form the foundation of the new company’s product portfolio. The fiscal 1997 (ended May 31) revenues from these products were approximately $590 million.

Fairchild is investing in research and development to enhance its portfolio in the fast-growth areas of CMOS, low- voltage logic, power and small-signal discretes, and non-volatile standard and application-specific memories. Applications for Fairchild’s products include automotive entertainment systems, communications products, desktop and portable computers, security, consumer products, and satellites and aerospace systems.

2-160 North American Company Profiles Fairchild Semiconductor

Management

Kirk Pond Chairman, President, and Chief Executive Officer Joseph Martin Executive Vice President and Chief Financial Officer Daniel Boxer Executive Vice President, General Counsel, and Chief Administrative Officer Wayne Carlson Executive Vice President and General Manager, Logic Group Jerry Baker Executive Vice President and General Manager, Non-Volatile Memory and Discrete Power and Signal Technologies Group Darrell Mayeux Senior Vice President, Worldwide Sales and Marketing

Products and Processes

MOS MEMORY ANALOG DRAM Amplifier SRAM Interface ✔ Flash Memory Consumer/Automotive ✔ EPROM Voltage Regulator/Reference ROM Data Conversion ✔ EEPROM Comparator ✔ Other (Including Non-Volatile RAM) Other (Includes Telecom)

MOS LOGIC DIGITAL BIPOLAR ✔ General Purpose Logic Bipolar Memory Gate Array ✔ General Purpose Logic Standard Cell Gate Array/Standard Cell Field Programmable Logic Field Programmable Logic ✔ Other Special Purpose Logic ✔ Other Special Purpose Logic MPU/MCU/MPR MOS MICROCOMPONENT MPU OTHER MCU Full Custom IC MPR ✔ Discrete DSP Optoelectronic

Logic Products Fairchild offers 17 families of standard logic devices utilizing CMOS, bipolar, and BiCMOS process technologies. The company claims to be the world’s third-largest supplier of standard logic ICs.

Its logic products include FAST® high-speed, low-power bipolar devices; FACT™ high-performance advanced CMOS devices; FACT QS™ low-noise, high-performance advanced CMOS devices; LVQ low-voltage CMOS devices, LCX/LVX high-performance, low-voltage CMOS devices with over-voltage protection; and VHC HC- replacement, low-noise, high-speed CMOS devices.

2-161 Fairchild Semiconductor North American Company Profiles

Memory Products Fairchild’s memory products include several varieties of non-volatile memory ICs. It is among the world’s leading suppliers of serial EEPROMs and EPROMs. Its EEPROM product group includes several families of standard devices as well as application-specific devices such as a Plug-and-Play controller for ISA cards, a serial presence detect (SPD) device for the memory module market, and the HiSEC™ family of products for remote keyless entry applications. The company’s EPROM products include 5V devices with densities ranging from 16K to 4M and low- voltage 1M parts.

Through an alliance formed originally by National and in 1992, Fairchild also offers flash memory devices compatible with Toshiba’s NAND and NOR architectures.

Discrete Products Fairchild’s principal discrete products are DMOS power MOSFETs. Its other discrete products are small-signal components such as small-signal transistors, JFETs, and diodes.

Semiconductor Fabrication Facilities

Fairchild Semiconductor Corp. Fairchild Semiconductor Corp. 333 Western Avenue 3333 West 9000 South South Portland, Maine 04106 West Jordan, Utah 84088 Telephone: (207) 775-8100 Telephone: (801) 562-7000 Fax: (207) 761-6027 Fax: (801) 562-7500 Cleanroom size: 51,000 square feet Cleanroom size: 86,000 square feet Capacity (wafers/week): 12,350 Capacity (wafers/week): 8,000 Wafer sizes: 100mm, 125mm, 150mm Wafer size: 150mm Processes: CMOS, bipolar, BiCMOS Processes: CMOS, DMOS Products: Logic ICs, discretes Products: EPROMs, EEPROMs, logic ICs, discretes Feature sizes: 0.8µm-2.5µm Feature size: 0.8µm

Some of Fairchild’s IC products continue to be produced at fabs owned by National Semiconductor and vice versa. Fairchild’s semiconductor assembly and test plants are located in Penang, Malaysia, and Cebu in the Philippines.

Key Agreements

• In January 1998, Fairchild Semiconductor and Chartered Semiconductor Manufacturing agreed that Chartered will manufacture EEPROM products based on Fairchild’s advanced EEPROM process. Fairchild has completed the transfer of its EEPROM technology to Chartered, and Chartered has already returned test runs of silicon to Fairchild, with high yields.

• In December 1997, Fairchild completed its acquisition of Raytheon Electronics Semiconductor, a division of the Raytheon Company, for approximately $120 million in cash.

• National and Fairchild remain closely linked through a long-term agreement to make the transition as smooth as possible. The two companies also share and swap fab capacity.

2-162 North American Company Profiles Fairchild Semiconductor

• Motorola, Toshiba, and Fairchild Semiconductor announced in early 1997 they would jointly develop next- generation high-speed CMOS logic ICs. The three companies will work to develop 2.5V and 3.3V devices with a propagation delay time of 2ns.

• Fairchild has a long-term partnership with Toshiba for the development, licensing, design, and manufacture of NAND and NOR flash memories. The agreement was signed by Toshiba and National Semiconductor in 1992.

• Tower has an agreement with Fairchild Semiconductor to supply advanced EPROM processes for the commodity and ASSP markets. In January 1998, the parties extended their agreement to include a new family of products. The first project under way is the development of a next-generation Flash technology.

2-163 General Semiconductor North American Company Profiles

GENERAL SEMICONDUCTOR

General Semiconductor, Inc. 10 Melville Park Road Melville, NY 11747 Telephone: (516) 847-3000 Fax: (516) 847-3236 Web Site: www.gensemi.com

Discrete Semiconductor Manufacturer

Financial History ($), Fiscal Year Ends December 31

1993 1994 1995 1996 1997 Sales 267,773 315,688 414,269 361,891 380,038 R&D Expenditures 3,152 3,454 5,068 5,838 5,998 Net Income 90,583 246,535 123,782 (1,864) 5,933 Capital Expenditures — — 34,912 60,299 29,208

Employees — — — — 5,000

Ownership: Publicly held. NYSE: SEM.

The Asian-Pacific region accounted for approximately 40 percent of General Semiconductor’s sales in 1997.

Company Overview and Strategy

General Semiconductor was formed from the 1960 merger of General Transistor and General Instruments. The Semiconductor Components Division of General Instruments was then formed in Hicksville, NY, with its name later changing to Discrete Semiconductor Division and then Power Semiconductor Division. In July 1997, General Semiconductor was spun-off from General Instruments into a publicly-traded firm.

General Semiconductor is a leading worldwide designer, manufacturer and seller of discrete semiconductors. The company sells these components into the consumer electronics, computer, telecommunications, lighting ballasts, home appliance, automotive and industrial markets.

Management

Ronald A. Ostertag Chairman, President and Chief Executive Officer Andrew M. Caggia Senior Vice President and Chief Financial Officer Vincent M. Guercio Senior Vice President, Worldwide Sales and Marketing W. John Nelson Senior Vice President, Asia Pacific Operations Stephen B. Paige Senior Vice President, General and Secretary Linda S. Perry Senior Vice President, Human Resources John P. Phillips Senior Vice President, European Operations Robert J. Gange Vice President and Controller

2-164 North American Company Profiles General Semiconductor

Products and Processes

General Semiconductor manufactures low-to-medium-power rectifiers, and transient voltage suppressor (TVS) components in axial, bridge and surface mount packages. With the acquisition of discrete small signal products manufacturer ITT Industries, Inc. in October 1997, the company now also sells small signal diodes, transistors and zener diodes. Leaded and surface mount packaging are offered.

General Semiconductor offers standard, Schottky (metal-silicon junctions and majority carrier conduction), and fast efficient rectifiers (reverse recovery times as low as 25 nanoseconds up to 1,000 volts). Its selection of rectifier package types is one of the largest in the world and includes plastic encapsulated, glass passivated, Superectifier and surface mount packaging. The company has developed proprietary sputtered metallization process and ion- implanted guard ring technology for its Schottky product line.

General Semiconductor’s bridge rectifier is comprised of four separate rectifier components configured into a "bridge" arrangement in a single package. The company manufactures over 100 bridge rectifier products for various power and case style requirements across multiple applications.

The company’s TVS devices include a wide variety of semiconductor surge protection products. General Semiconductor anticipates a significant increase in demand for TVS devices in applications incorporating increasingly sensitive and smaller ICs. The small signal diode portfolio is marketed for a wide range of applications including telecommunications equipment, personal computer , automotive systems, power supplies and consumer electronics. The company’s zener product lines provide a wide variety of specialized functions for complex electronic circuits. Zener applications include voltage regulators, voltage reference and voltage suppressors.

General Semiconductor's small signal transistors, sold into nearly all end markets, round out its portfolio of electronic building blocks available to its customers.

From the market/application segmentation perspective, General Semiconductor’s automotive electronics portfolio includes the SUPERECTIFIER™ and PAR™ TVS. Transient Voltage Suppressors (TVS) fabricated with General Semiconductor’s patented proprietary PAR™ (Passivated Anisotropic Rectifier) process have very high stability (absorbs high energy; low reverse leakage) and power handling capability across the temperature range of automotive and other applications. The company’s surface mount load dump TVS series (SM5A27 through SM8A27) and avalanche alternator rectifier series (AS30 through AS40) are two new products incorporating PAR technology.

General Semiconductor’s strategy is to increase its share of the discrete semiconductor market by focusing on value-added investment and manufacturing, (high-volume, highly automated operations; very low-defect output), product breadth expansion (through internal research and development efforts, strategic partnerships and strategic acquisitions), capitalizing on its global sales and distribution franchise, and maintaining and expanding customer relationships.

2-165 General Semiconductor North American Company Profiles

Semiconductor Manufacturing Facilities

General Semiconductor’s facilities are ISO9001 and QS9000 approved.

At year end 1997, the company’s Taiwanese facilities accounted for about 50 percent of its total production output.

General Semiconductor’s 112,000 square foot Macroom, County Cork, Ireland facility employs over 750 people (projected to reach over 1,000 by the end of 1998). The Macroom plant is ISO9001 and QS9000 qualified. The plant produces Transient Voltage Suppressor (TVS) devices in a variety of leaded, surface mount and array packages. Surface mount rectifiers and low current bridge diodes are also produced here. The facility was expanded in 1997 to increase the company’s penetration of the European market.

The 360,000 square foot Taipei, Taiwan facility, opened in the late 1960s, employs 2,300 people. The location houses the Standard Rectifier Products Group’s wafer fab, a Schottky wafer fab, Superectifier, Bridge, and Surface Mount manufacturing and testing areas. Service and support sections utilize nearly 20 percent of the total square footage. At 14 million devices per day, the facility produces Superectifiers, Bridge Rectifiers, Fast Efficient Rectifiers, Schottky Diodes, Transient Voltage Suppressors, Clamper/Damper Products, Surface Mount Products, and Power Rectifiers. The facility has previously won many quality awards including Delco Electronics’ "Quality Wins" PPAP, Ford’s Q1 and AT&T "Quality Leader ‘Gold’ Supplier” award.

In October 1997, General Semiconductor opened a $29 million, 120,000 square-foot semiconductor factory on a 540,000 square-foot site in China’s Tianjin Economic and Technological Development Area. Plant employment was approximately 750 at year end 1997. Scheduled to begin in 1998, and reach completion by the year 2000, a second phase of development will add 65,000 to 120,000 square feet to the facility and an increase employment by 500 to 1,000. The company cited the facility’s proximity to several of its largest customers and fastest growing markets as key drivers in opening the facility. The Tianjin facility is producing General Semiconductor’s SUPERECTIFIER diodes, GBL, KBPM, WOG, GBU, GBPC, DFM bridge rectifiers, and small signal transistors

General Semiconductor's Westbury, New York plant, opened in 1956 as Semi-Metals, is a 13,000 square foot facility, currently employing a staff of 50. Facility equipment includes Gemini Epitaxial Reactors, used to produce silicon epitaxial wafers at a rate of 1,800 wafers per day, meeting the entire company’s epitaxial wafer requirements. Co-located with this facility is the company’s applied material sciences research and development laboratory.

Key Agreements

• Implementing its corporate strategy of increasing market share, on October 1, 1997, General Semiconductor acquired the small signal transistor business from ITT Industries, Inc. for $8.0 million. The unit had trailing 12- month revenues of approximately $60.0 million. The company’s target market segments now make up 44 percent, versus the prior 20 percent, of the $13 billion total available market for discrete semiconductors.

2-166 North American Company Profiles Genesis Microchip

GENESIS MICROCHIP

Genesis Microchip Inc. 200 Town Centre Boulevard Suite 400 Markham, Ontario Canada L3R 8G5 Telephone: (905) 470-2742 Fax: (905) 470-9022 Web Site: www.genesis-video.com

Fabless IC Supplier

Employees: 85

Ownership: Publicly held. NASDAQ: GNSSF.

Regional Headquarters/Representative Locations

North America: Genesis Microchip Corporation • Mountain View, California Telephone: (650) 428-4277 • Fax: (650) 428-4288

Company Overview and Strategy

Founded in 1987, Genesis Microchip is a technology leader in digital video/image manipulation. The company designs, develops, and markets leading-edge ICs targeted at both existing and emerging applications demanding high-quality video/image processing. Genesis sets the standard in video/image resizing.

Management

Paul M. Russo President and Chief Executive Officer Peter Dakin Vice President, Manufacturing Operations Eric Erdman Vice President, Finance and Administration Hamid Farzaneh Vice President, Worldwide Sales Lance Greggain Vice President, Product Development Operations Stephen Solari Vice President, Marketing and Business Development Scott Baker Director, Product Development Operations Perry Chappell Director, Sales Shyam Nagrani Director, Sales Jay Giblon Manager, Information Systems David Green Manager, Sales Graham Loveridge Manager, Customer and Product Support Peter Mandl Manager, Video DSP Technology

2-167 Genesis Microchip North American Company Profiles

Products and Processes

Genesis' products include the Genesis Scaling™ series of video/image resizing ICs (gmz1, gm865x1, gm833x2, gm833x3, gm833x3F), the gm2242B half-band filter, and the gmVLD family of video line doublers plus supporting evaluation boards and software. The patented algorithms and architectures provide improvement in computational efficiency over traditional finite impulse response (FIR) filter structures. All of Genesis' design efforts currently employ 0.8µm (and below) CMOS technology. Several products are described below.

• gmz1 — A highly integrated IC designed to solve de-interlacing, zoom scaling, display synchronization and overly control.

• gmFC1 — A conversion chip that tracks video frame location to avoid “picture tear.”

• gm865x1 — This is the first of the Genesis Scaling chip series. The gm865x1 IC is a single-channel device that provides high-quality video/image processing technology for medical imaging, broadcast equipment, and projection systems.

• gm833x2 — This is the second of the Genesis Scaling chip series and first in the mid-range family of GenScale chips. The gm833x2 is a dual-channel device for use in workstations, projection systems, and multimedia applications.

• gm833x3 — This is a triple-channel version in the 833 class designed for use in projection systems, videographic workstations, and scan conversion equipment.

• gm833x3F (fast) “Bullet” — This is a 68MHz version of an RGB scaler, featuring low power and an advanced 0.35µm, 3.3V CMOS process.

• gm2242B Half-Band Filter — This is a decimating/interpolating digital filter for use in applications requiring pre- or post-filtering of digital video signals. The gm2242B supports NTSC, PAL, SECAM, and square pixel video standards.

• gmVLD8/gmVLD10 Video Line Doublers — This is a single-chip de-interlacing device for use in equipment such as large screen televisions, video walls, projection systems, video-in-a-window workstations, and home theater screens.

Genesis is ISO 9001 certified.

Key Agreements

• In April 1998, Genesis and Micronas Intermetall announced they are using each other’s chips to produce a unique set of video processing reference designs.

• In March 1998, Genesis and Philips Semiconductors announced that its Z1MP and Z1FCMP reference designs for LCD applications will use Philips’ TDA 8752 triple high-speed analog-to-digital converter (ADC) chip.

2-168 North American Company Profiles Gennum

GENNUM

Gennum Corporation P.O. Box 489, Station A Burlington, Ontario Canada L7R 3Y3 Telephone: (905) 632-2996 Fax: (905) 632-2055 Email: [email protected] Web Site: www.gennum.com

IC Manufacturer Founded: 1973, Canada

Regional Offices/Representative Locations

Japan: Gennum Japan K.K. • Miyamae Village, C-101, Tokyo, Japan Telephone: (81) (3) 3334-7700 • Fax: (81) (3) 3247-8839

Financial History ($M), Fiscal Year Ends November 30

1992 1993 1994 1995 1996 1997 Sales 26 27 33 42 53 62 Net Income 4 4 5 7 10 12 R&D Expenditures 7 7 8 9 10 12 Capital Expenditures 3 2 3 4 5 4

Employees 233 240 247 255 300 334

Ownership: Publicly held. Toronto Stock Exchange.

Company Overview and Strategy

Gennum Corporation is a Canadian high technology company that designs, manufactures, and markets electronic components, primarily silicon integrated circuits for specialized applications. Gennum’s manufacturing capability ranges from wafer fabrication through to device packaging, assembly and test. The company’s products include low-voltage audio electronic amplifiers and analog signal processing circuits supplied to the world hearing instrument industry; video signal distribution and processing components sold to the professional video and broadcast television markets; and user specific ICs for a wide variety of specific applications where information is being conditioned, transmitted, or interpreted. In the packaging area, Gennum has developed a line of proprietary ultra-miniature device package configurations, including tape automated bonding (TAB).

2-169 Gennum North American Company Profiles

The company markets and distributes its products worldwide through a direct sales organization as well as through a network of independent manufacturer’s representatives and regional distributors. The company also operates a brand office in Tokyo to service the Japanese market. Gennum is registered to the ISO 9001 (1994) quality standard.

Management

H. Patrick Thode Chairman H. Douglas Barber, Ph.D. President and Chief Executive Officer Ian L. McWalter, Ph.D. Executive Vice President, and Chief Operating Officer Michael R. Fielding Vice President, Marketing and Sales David L. Lynch Vice President, Research and Development C. Timothy Zahavich Vice President, Finance and Administration, and Chief Financial Officer

Products and Processes

Gennum concentrates on the design and fabrication of linear and mixed-signal devices utilizing bipolar and CMOS technologies and the associated packaging of these products. Products include: • Low voltage (i.e., 1.0V) audio electronic amplifiers and analog signal processing circuitry to the world hearing instrument industry. • High speed serial digital interface chips for the broadcast video market with operation to 400Mbits. • High performance analog signal processing and switching devices for the video communications industry. • High performance digital signal processing ICs for standard conversion and filtering applications.

Semiconductor Fabrication Facilities

Gennum Corporation 3435 Landmark Road Burlington, Ontario L7M 1T4 Two Plants – Total cleanroom size: 75,350 square feet Capacity (wafers/week): 350 Wafer size: 100mm Process: Bipolar Products: Linear ICs, ASICs, thick-film hybrid circuits Feature sizes: 1.5µm-4µm

2-170 North American Company Profiles Germanium Power Devices Corporation

GERMANIUM POWER DEVICES CORPORATION (GPD)

Germanium Power Devices Corporation 300 Brickstone Square, York Street, Box 3065 SVS Andover, Massachusetts 01810-3065 Telephone: (978) 475-5982 Fax: (978) 470-1512 Web Site: www.gpd-ir.com

IC Manufacturer Founded: 1973

Employees: 25

Ownership: Privately held.

Company Overview and Strategy

Germanium Power Devices has been a manufacturer of power transistors and diodes since its founding. In addition, GPD has manufactured infrared photodetectors for military, commercial, and telecommunications applications. The company offers Germanium, Germanium Avalanche, and InGaAs photodetectors. GPD is also involved in custom designs.

Products and Processes

Germanium Power Devices manufacturers a broad range of Germanium p-n, p-I-n, APD and InGaAs p-I-n high- speed and large area photodetectors. Many of the standard detectors can be supplied with integrated amplifiers.

The following are products of GPD:

•Germanium Photodetectors •Germanium Avalanche Photodiodes •Germanium Rectifiers •High Speed InGaAs Photodiodes •Large Area InGaAs Photodiodes •Germanium Transistors •Germanium Small Signal Transistors •Germanium NPN Transistors •Germanium PNP Mesa Transistors •Germanium PNP Small Signal Transistors •Germanium Power Transistors

2-171 GHz Technology North American Company Profiles

GHZ TECHNOLOGY, INC.

GHz Technology, Incorporated 3000 Oakmead Village Drive Santa Clara, California 95051-0808 Telephone: (408) 986-8031 Fax: (408) 986-8120 Web Site: www.ghz.com

IC Manufacturer Founded: 1977

Company Overview and Strategy

GHz Technology is a worldwide supplier of Silicon RF and Microwave Power Transistors for use in application specific products. Product families support high power amplifier applications including: airborne avionics (DME, IFF) to broadcast (FM, UHF-TV), cellular, defense and microwave communications and RADAR systems. The majority of GHz’s customer base represent companies who have been using these transistors for more than 20 years. GHz products are sold via sales representatives and distributors throughout North America.

Management

Frank W. Schneider President and Chief Executive Officer Roger W. Thorton Chairman and Executive Vice President, Operations Mike Mallinger Vice President, Marketing and Sales Lyle T. Leverich Vice President, Engineering Jeffery B. Hume Director of Product Engineering David Diamond Director of Sales

Products and Processes

GHz products include RF and microwave power transistors for use in application specific products. Their products are optimized for custom applications, focused on providing the highest level performance for the lowest total cost of ownership.

All GHz products incorporate the design and process technologies which will provide a transistor with the best achievable performance and reliability. These include: gold topside metal used for the high mean time-to-failure; silicon nitride passivation to protect against surface contamination; diffused ballast resistors to increase tolerance to load mismatch; gold thermosonic wirebonding for consistent product performance and high reliability; hermetic- solder seal to ensure protection from the outside environment, even under the most severe operating conditions.

2-172 North American Company Profiles GHz Technology

Semiconductor Fabrication Facilities

The company’s facility, which is 20,000 square feet, includes 4,000 square feet of Class 1,000 cleanroom. Also on site are test and assembly areas that are fully compliant with U.S. Space Applications requirements.

Key Agreements

• The founders of GHz Technology purchased the right to the Acrian Inc. Power Transistor product line – which included the predecessor Varian (CTC). The acquisition included the rights to tooling, process documentation and product specifications. In addition to the tooling, GHz purchased a full complement of Acrian Inc. wafer fabrication, assembly and test equipment. The Company also purchased material which was available from Acrian as “work in process,” thereby, allowing it to be begin to make immediate shipments to selected customers.

2-173 GMT Microelectronics Corporation (GMT) North American Company Profiles

GMT MICROELECTRONICS CORPORATION (GMT)

GMT Microelectronics Corporation (GMT) Valley Forge Corporate Center 950 Rittenhouse Road Norristown, Pennsylvania 19403 Telephone: (610) 666-7950 Fax: (610) 666-2500 Web Site: www.gmtme.com

IC Manufacturer

1997 1998

Employees 160 145

GMT is funded and approximately 80 percent owned by a syndicate of venture capitalists consisting of Pecks Management Partners, Unterberg Harris, Liebman Capital and TL Ventures. Additionally, Kopin Corp. and Unitrode, (the current CEO’s former employer), each own a 4.5 percent share of the company, and employees own the remaining 11 percent.

GMT provides Kopin Corp., (Taunton, MA; NASDAQ: KOPN), with output for its very high resolution (active matrix) LCD display products. Early stage funding was $4.5 million, exclusive of TL Ventures and the other corporate investments. $4.3 million of this was for the purchase of assets from CMG (see below).

New product sales, versus foundry service contracts to external clients, currently account for about 25 percent of total sales. The goal is to move revenue mix to 75 percent internal products within five years, as well as to achieve a 55 percent gross margin, 25 percent pretax net and 6-8 percent market share. GMT also plans to go public, though no timeframe has been set.

Company Overview and Strategy

GMT Microelectronics is an independent, privately held company that produces analog and mixed-signal integrated circuits. The company is also a silicon wafer foundry service. GMT was formed by former CMG management and their backing by the above investment group’s January 1995 buy out of the captive semiconductor assets of the Commodore Semiconductor Group (CMG), a unit of Commodore International Ltd.’s Commodore Business Machines.

Although production ramp was initiated in May 1995, difficulties in launching the operation necessitated a turn around program. This was executed by the current CEO, hired in October 1996.

2-174 North American Company Profiles GMT Microelectronics Corporation (GMT)

GMT’s processing expertise includes the manufacture of digital, analog, mixed-signal, and power management products using various CMOS, NMOS, and BiCMOS process technologies as advanced as one-micron in feature sizes, with double metal and double poly layers. Strategically, GMT’s goal is to balance customer mix across the foundry services, semiconductor merchant and OEM markets.

GMT has begun to offer its own brand of analog, mixed-signal power management ICs. GMT is targeting OEMs of communications, computer, industrial, and consumer products.

Management

Dennis A. Peasenell Chairman, President and Chief Executive Officer Thomas W. Aiken Senior Vice President and Chief Financial Officer James H. Oerth Senior Vice President and Chief Technology Officer Alan R. Sabanosh Vice President, Manufacturing Anthony R. Wilson Vice President, Facilities and Services Sergio Mendes Vice President, Sales and Marketing Barry Signoretti Director, Marketing (San Jose Office) Ben Rappaport Director, Product Development Evonna Phillips Director, Customer Relations

Products and Processes

In April 1998, GMT introduced a new high voltage (40V) bipolar CMOS DMOS process for mixed-signal technologies. The process is targeted for telecommunications, battery power, motor control and smart power applications. The 40V DMOS device has a Vt of 1.8V and an Rds-on of 0.32 ohm-mm2. The 40V VNPN has an ft of 2.5GHz, beta = 95, Va = 150 and a Vce-sat of 0.42V. The 40V VPNP has an f{\s\do2(t)} of 200MHz, beta = 90, Va = 85 and a Vce-sat of 0.32V. Other available active devices include 15V NMOS and PMOS and 20V PMOS transistors and 7V zener diodes.

The new BCD40 process offers 3.0 micron feature size with 1.5 micron line widths. One or two metal layers are available along with one or two layers of polysilicon. The polysilicon layers can be used for poly capacitors.

In April 1998, GMT announced availability of a pulse width modulation controller IC for DC-DC converter applications requiring high speed performance in an MSOP package. The GMT38HC4x family of current mode PWM controllers are industry standard UC384x and MIC38HC/C4x device compatible. Shoot-through current is 4mA and current sense delay time is typically 50ns. GMT cites its BCDMOS process as enabling such capabilities. The products are available in 8- and 14-pin DIP, 8- and 14-pin SOIC and 8-pin MSOP packages.

2-175 GMT Microelectronics Corporation (GMT) North American Company Profiles

Semiconductor Fabrication Facilities

GMT operates its 150,000 square foot, ISO-9002 certified wafer fab on a twenty-four hour, five shifts per week schedule. The fab has a capacity of 7,000 125mm wafer outs per month, with capability to expand to 10,000 wafers out per month within three months. Situated on 14 acres, the facility contains space for the future completion of a second wafer fab with equal or more capacity than the current facility. When equipped, it will be housed in an existing structure designed and built for more advanced manufacturing technologies.

Key Agreements

• In December 1994, GMT signed an agreement with the Environmental Protection Agency to resolve claims resultant from the Commodore Semi-Conductor Superfund site where the foundry is now located. In consideration for a limited covenant not to sue and also contribution protection, GMT made a $675,000 payment to the EPA, deposited $375,000 in escrow and will make annual payments up to $65,000 for any future “response” actions the EPA takes relating to prior violations.

2-176 North American Company Profiles Gray Chip

GRAYCHIP

GrayChip 2185 Park Boulevard Palo Alto, CA 94306 Telephone: (650) 323-2955 Fax: (650) 323-0206 Web Site: www.graychip.com Email: [email protected]

Fabless IC Manufacturer Founded: 1989

Company Overview and Strategy

GrayChip develops high speed CMOS signal processing chips tailored for the telecommunication markets. They specialize in the design of function-specific DSP chips. The Company’s products include all-digital down- converters, up-converters, digital filters, and chipsets for high-speed QAM modems. Annual revenues for 1997 were under $10M, up from 1996 revenues of less than $5M.

Management

Joseph H. Gray President Lars Jorgensen Vice President, Technology Brad Evans Director of Marketing

Products and Processes

GrayChip custom designs chip solutions tailored for specific requirements. Examples of their customer-specific DSP’s are as follows.

•Digital filter ICs; •Wideband digital tuner ICs; •Receiver ICs — Quad digital receiver ICs, single chip digital receivers, dual channel receivers; •Transmitter ICs — Quad digital transmitter ICs, FFT ICs (30MHz radix-8); •Demodulator ICs — 50 M-baud equalizer/demod chipset, supergroup demodulator chip, and quad group demodulator; and • ICs — PCM Demultiplexer ICs, FDM transmux ICs, 500MHz mutiplexer.

2-177 Harris Semiconductor North American Company Profiles

HARRIS SEMICONDUCTOR

Harris Semiconductor 2401 Palm Bay Road Northeast Palm Bay, Florida 32905 Telephone: (407) 724-7000 Fax: (407) 729-5691 Web Site: www.semi.harris.com

IC Manufacturer Founded: 1962 (Radiator Inc.) Renamed Harris Semiconductor in 1967 as result of merger.

Regional Offices/Representative Locations

Europe: Harris Semiconductor • Brussels, Belgium Telephone: (32) (2) 724-2111 • Fax: (32) (2) 724-2205

Asia-Pacific: Harris Semiconductor China Ltd. • Shanghai, China Telephone: (86) (21) 6247-7923 • Fax: (86) (21) 6247-7926

Financial History ($M), Fiscal Year Ends June 30

1992 1993 1994 1995 1996 1997 Corporate Sales 3,004 3,099 3,336 3,444 3,621 3,972 Net Income 75 111 112 155 178 208

Semiconductor Sales 585 591 635 659 708 670 Net Income (20) 17 31 42 52 58 Capital Expenditures 22 27 44 80 140 176

Employees — — 8,000 8,100 8,100 8,100

Company Overview and Strategy

Harris Corporation (NASDAQ: HRS) is a global communications company with core capabilities in wireless communications, digital television systems, microelectronics, information processing, defense communications and office systems. Their business is comprised of four major businesses – Communications, Semiconductor, Lanier Worldwide, and Electronic Systems. Harris is an ISO 9000 certified company.

2-178 North American Company Profiles Harris Semiconductor

Harris Semiconductor originated as the Microelectronics Division of Radiation, Inc. in 1962. It became Harris Semiconductor in 1967 through the merger of Harris and Radiation. Then in 1988, Harris Semiconductor nearly tripled in size through the acquisition of the General Electric Solid State semiconductor business.

Harris’ Semiconductor business is focused on five major markets: Communications, Telecommunications, Automotive, Video/Multimedia, and Power Control. During the past five years, company investments have been concentrated in wireless communications, multimedia, and power control.

Broad Product categories include: discrete MOS power transistors (MOSFETs, IGBTs, MCTs) power protection devices for surge protection; intelligent power ICs with mixed-signal content; data converters and associated data acquisition signal conditioning ICs; amplifier ICs; digital processing ICs; telecom line card ICs; CMOS logic and microprocessors; and radiation-hardened ICs and transistors for spacecraft and satellites. Also offered are analog, digital, power and mixed-signal ICs and discrete power semiconductors specifically for the communications, automotive, power control, multimedia, aerospace and military markets.

Product breakthroughs in two key areas – wireless communications and multimedia – are critical areas of focus. In wireless communications, for example, Harris introduced the PRISM family of chipset solutions that provide wireless access to company local area networks and from there to the Information Superhighway. Another PRISM solution allows wireless voice or data telephone service in what are called “local loops” – an important solution for countries without wired telephone infrastructures. In multimedia systems, Harris has developed an advanced chipset and complete system solution for high-quality video conferencing for desktop PCs. The highly integrated Harris solution will allow such systems to retail for about $500, making easy to use, high-quality video conferencing an affordable upgrade for any PC.

The power semiconductor market is another strategic growth area. Power semiconductors and ICs are used to control, condition, or monitor the power in virtually any electric powered device – from watches, cameras, mobile phones, stereos, and TVs or computers, to washing machines, air conditioners, cars, and space stations. The company doubled its production capacity with the start-up of a new high-capacity eight inch fabrication facility in fiscal 1997. Along with this sizable expansion, the company launched an innovative manufacturing process that helps their power products out perform the competition. Harris expects to develop more than 200 new power devices in fiscal 1998 and will be in position to expand production as the market grows.

2-179 Harris Semiconductor North American Company Profiles

Management

Harris Corporation Phillip W. Farmer Chairman, President and Chief Executive Officer Bryan R. Roub Senior Vice President and Chief Financial Officer

Harris Semiconductor Sector John C. Garrett President F. Scott Moody Vice President, Military and Aerospace Products Division W. Russell Morcom Vice President and GM, Semiconductor Products Division Dyer Matlock Vice President, Engineering Carleton Smith Vice President (Asia), Sales Bill McLean Vice President and GM, Worldwide Sales and Marketing Edward Verbeek Vice President (Europe), Sales

Products and Processes

Harris offers a broad range of standard, semi-custom, and custom ICs and discrete semiconductors, including intelligent power devices, data acquisition and signal processing circuits, digital microprocessor, peripheral, and logic ICs, as well as radiation-hardened circuits for spacecraft and satellite applications. Harris also offers advanced chipsets and complete system solutions for desktop PC-based video conferencing. Products listed by market are as follows:

Communications – wireless LAN (local area network) systems; cellular base stations; satellite communications systems; set-top boxes. • PRISMÔ Wireless Radio data communications chipset; RF-optimized operational amplifiers, digital down converters, high speed data converters, digital filters.

Telecommunications – PBX, central office, wireless local loop, fiber-in-the-loop equipment • Single, dual SLICs (subscriber line interface circuits). Also, CODEC/Filter products.

2-180 North American Company Profiles Harris Semiconductor

Automotive – Antilock braking systems, engine and emission controls, engine knock sensing, air-bag systems, entertainment systems • J1850 chipset; engine knock sensor; devices for power management, control. Power protection circuits.

Video/Multimedia – video and imaging processing systems; video teleconferencing; multimedia. • Video buffers, op amps, crosspoint switches, routers, digital video mixers, and digital filters; video- optimized A/D and D/A converters and sample and hold amplifiers.

Power Control – Motor controllers, disc drives, power supplies, distributed power systems, power switching. • Power MOSFETs, IGBTs, power processing products, MOV (metal oxide varistors), intelligent power products.

General Electronics Markets – Test equipment, industrial controls, consumer electronics, medical imaging, computer peripherals, hand-held portable equipment; military and aerospace electronics. • Op amps, sample-and-hold amplifiers; Analog switches, multiplexers; A/D and D/A converters; Microprocessors, microcontrollers; Logic devices; DSP ICs; Power MOS; Power processing products; MOVs; Intelligent power products; radiation-hardened ICs and discretes, semicustom ICs for military and aerospace applications.

MOS MEMORY ANALOG DRAM ✔ Amplifier ✔ SRAM ✔ Interface Flash Memory ✔ Consumer/Automotive EPROM ✔ Voltage Regulator/Reference ROM ✔ Data Conversion EEPROM ✔ Comparator ✔ Other (Including Non-Volatile RAM) ✔ Other (Includes Telecom)

MOS LOGIC DIGITAL BIPOLAR ✔ General Purpose Logic Bipolar Memory ✔ Gate Array General Purpose Logic ✔ Standard Cell ✔ Gate Array/Standard Cell Field Programmable Logic Field Programmable Logic ✔ Other Special Purpose Logic Other Special Purpose Logic MPU/MCU/MPR MOS MICROCOMPONENT ✔ MPU OTHER ✔ MCU ✔ Full Custom IC ✔ MPR ✔ Discrete ✔ DSP ✔ Optoelectronic

2-181 Harris Semiconductor North American Company Profiles

Process technologies used by Harris Semiconductor include: CMOS, BiCMOS, power BiMOS, high-frequency bipolar/power MOS, high-voltage bipolar/power MOS, complementary bipolar dielectric isolation (bonded wafer), CMOS/SOI (silicon-on-insulator), CMOS/SOS (silicon-on-sapphire), and radiation hardening.

Semiconductor Fabrication Facilities

Harris supplements its internal semiconductor production capabilities with foundry agreements with external semiconductor manufacturers. For example, the company uses foundries for the fabrication of triple-layer-metal CMOS devices like signal processing ICs.

Harris Semiconductor (Ohio), Inc. Harris Semiconductor (Florida), Inc. 1700 Fostoria Road P.O. Box 883 Findlay, Ohio 45840 Palm Bay, Florida 32905 Telephone: (419) 423-0321 Telephone: (407) 724-7000 Cleanroom size: 57,500 square feet Cleanroom size: 53,000 square feet Capacity (wafers/week): 15,000 Capacity (wafers/week): 7,000 Wafer sizes: 100mm, 125mm Wafer sizes: 3 in., 100mm, 125mm Processes: CMOS, bipolar, BiCMOS Processes: CMOS, PMOS, bipolar Products: Custom digital, linear, logic, and Products: MPUs, SRAMs, linear and digital ICs, mixed-signal ICs. discretes. Feature sizes: 1.2µm, 1.5µm, 2.0µm Feature sizes: 0.8µm, 1.0µm, 2.0µm, 4.0µm

Harris Semiconductor (Pennsylvania), Inc. Harris Semiconductor (Pennsylvania), Inc. Crestwood Industrial Park Mountaintop, Pennsylvania 125 Crestwood Road Cleanroom size: 25,000 Mountaintop, Pennsylvania 18707-2189 Capacity (wafers/week): 5,000 Telephone: (717) 474-6761 Wafer size: 200mm Cleanroom size: 74,000 square feet Process: MOS Capacity (wafers/week): 4,000 Products: Discretes, smart power ICs Wafer sizes: 100mm, 125mm, 150mm Feature size: 1.0µm Processes: MOS, bipolar, BiCMOS Products: Discretes, hybrids, ASICs Feature sizes: 1.0µm, 2.0µm, 5.0µm

In early 1996, Harris began building a new IC assembly and test facility in Suzhou, China. The company expects construction to be completed by summer of 1998. The new facility will assemble and test digital logic, microperipheral, and analog and mixed-signal devices. Harris has existing semiconductor assembly factories in Kuala Lumpur, Malaysia, Dundalk, Ireland, and Palm Bay, Florida.

In 1997, Harris completed construction and check-out of a new fabrication facility in Mountaintop, Pennsylvania, This is noted to be the first facility in the world to produce discrete power devices on an eight-inch wafer.

2-182 North American Company Profiles Harris Semiconductor

Key Agreements

• February 1998, Solectek Corporation, an industry leader in wireless LAN/WAN connectivity products, announced a collaboration with Harris Semiconductor to develop a high-speed, long range wireless bridge product, the Solectek MP1100E. The Solectek MP1100E will provide high speed building-to-building wireless bridging with IP and IPX routing features using Harris’ PRISM™ 2.5GHz direct sequence spread spectrum (DSSS) radio technology.

• In January 1998, Harris Semiconductor and Netwave Technologies, Inc. have agreed to collaborate to bring high performance wireless technology to the market this year. The joint venture leverages Harris’ expertise in the semiconductor arena and Netwave’s networking and software experience. The partnership will yield advanced 2Mbps and 11Mbps wireless LAN products based on state-of-the-art radio chipsets from Harris.

• August 1997, Harris Semiconductor partnered with Chrysler to develop a multiplexing system for cars. In parallel, Harris, Chrysler and the Society of Automotive Engineers helped define a new standard for in-vehicle data transmission. This new standard, known as SAE J1850, defined minimum requirements so that the resulting network is cost effective for simple applications yet flexible enough to use in complex applications. This will allow complex communications wiring in an auto to be replaced by a single central communications wire that loops through the car and to which all the electronic components are joined by small nodes.

2-183 Holt Integrated Circuits North American Company Profiles

HOLT INTEGRATED CIRCUITS

Holt Integrated Circuits 23351 Madero Mission Viejo, California 92691-2730 Telephone: (949) 859-8800 Fax: (949) 859-9643 Web Site: www.holtic.com

IC Manufacturer Founded: 1976

Employees: 25

Ownership: Privately held.

Company Overview and Strategy

Holt Integrated Circuits, with 1997 total sales of $5.1 million, is a major supplier of CMOS display drivers and avionics databus and monolithic ICs to the avionics and military markets. As one of the early suppliers of cell based custom and semi-custom CMOS, Holt Integrated Circuits provided low voltage, mixed signal ASICs worldwide. Applications included heart pacemakers, data and voice communications, industrial instrumentation, consumer applications and avionics products. Holt gradually changed its focus to become a major supplier of standard products for the display driver and avionics markets.

The HI-8010 series of Dichroic LCD Display Drivers was Holt’s first standard product entry into the avionics market in 1984. Along with the newer HI-8020, HI-8040 and HI-8045 drivers, they are now widely used in a variety of military and commercial avionics displays as well as ground based applications.

The initial Holt ARINC 429 standard products were introduced in 1990, in response to requests from several avionic’s manufacturers for an alternate, cost effective source of monolithic devices for this protocol. The product line has further expanded with additional devices. New products are under development for both this and other avionics protocols.

Management

William Holt Chairman, President, and Chief Executive Officer Richard Kemmerle Vice President, Operations Gerald Donaldson Director, Marketing and Sales

2-184 North American Company Profiles Holt Integrated Circuits

Products and Processes

MOS MEMORY ANALOG DRAM Amplifier SRAM ✔ Interface Flash Memory Consumer/Automotive EPROM Voltage Regulator/Reference ROM Data Conversion EEPROM Comparator Other (Including Non-Volatile RAM) ✔ Other (Includes Telecom)

MOS LOGIC DIGITAL BIPOLAR General Purpose Logic Bipolar Memory Gate Array General Purpose Logic ✔ Standard Cell Gate Array/Standard Cell Field Programmable Logic Field Programmable Logic ✔ Other Special Purpose Logic Other Special Purpose Logic MPU/MCU/MPR MOS MICROCOMPONENT MPU OTHER ✔ MCU Full Custom IC MPR Discrete DSP Optoelectronic

Standard Products

Holt offers a family of high voltage (up to 35V) CMOS display drivers and a family of avionics databus devices for use in both commercial and military aircraft applications.

The high voltage display driver products are available with 30, 32, 34, 38, 80 and 85 segments in a variety of plastic and ceramic, leaded and surface mount packages for both industrial and military applications.

The avionics databus products provide monolithic solutions for ARINC 429 protocol application. The products encompass transmitter/receivers for use with 8- and 16-bit microprocessors/microcomputer; differential line receivers to convert the ARINC 429 levels to CMOS/TTL levels; and differential line drivers that convert CMOS/TTL logic levels to ARINC 429 bus levels. All are available in a variety of plastic and ceramic, leaded and surface mount packages suitable for industrial and military applications.

Semiconductor Fabrication Facilities

Holt’s products are manufactured using a combination of qualified wafer and assembly services in conjunction with Holt’s in-house design, test and screening capabilities.

2-185 Honeywell North American Company Profiles

HONEYWELL SSEC

Honeywell, Incorporated Solid State Electronics Center (SSEC) 12001 Highway 55 Plymouth, Minnesota 55441 Telephone: (612) 954-2301 Fax: (612) 954-2504 Web Site: www.ssec.honeywell.com

IC Manufacturer

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Corporate Sales 6,223 5,963 6,057 6,731 7,312 8,000 Net Income 247 322 279 334 403 471

Semiconductor IC Sales 53 45 45 58 60 55

Employees — — 500 523 550 645

Company Overview and Strategy

Founded in 1885, Honeywell (NASDAQ: HON) is an international company that provides control components, products, systems, and services for the home and building, industrial, space and aviation, and defense and marine markets.

2-186 North American Company Profiles Honeywell

Honeywell established its Solid State Electronics Center (SSEC) in 1965 to support the high technology demands in the markets served by the parent company. This growing reliance on microelectronics led SSEC to become a niche market manufacturer of specialized ICs and solid-state sensors.

The SSEC's mission is to develop and produce niche semiconductor technologies and products which are focused in the market areas of sensors, radiation-hardened space components, and specialized ICs for its parent's needs and select external markets. SSEC is the world’s leading supplier of SOI CMOS ICs for space and industrial applications. Approximately 50 percent of the SSEC's IC production is sold to external customers.

Management

Michael R. Bonsignore Chief Executive Officer D. Larry Moore President and Chief Operating Officer Larry C. Welliver Vice President, SSEC Brian Urke Director, Aerospace Electronics Lou Del Monte Director, Business Management, SSEC Bryan Johnson Director, Human Resources and Facilities, SSEC Pravin Parekh Director, Operations, SSEC Jay Schrankher Director, Quality and Information Systems, SSEC Karen Dale Director, Material Management, SSEC Rod Clark Manager, ASIC Products, SSEC

Products and Processes

Honeywell SSEC's key business areas are outlined below.

Space components (for commercial, military space, and tactical and strategic missile applications). • SRAMs • ROMs (SOI and bulk) • Gate arrays (SOI and bulk) with ultra low power options • Bus interface products (1773 and 1553)

Sensors (for industrial control, automotive, medical, and aircraft applications). • Precision pressure • High-accuracy magnetic

High-temperature products (for oil service industry, industrial control, and gas turbine control applications). All SOI devices. • Op amps • Switches • A/D converters and controllers

2-187 Honeywell North American Company Profiles

About 90 percent of Honeywell's ICs are manufactured using CMOS or radiation-intensive CMOS (RICMOS™) processes and 10 percent using an advanced bipolar process.

Semiconductor Fabrication Facilities

Honeywell, Incorporated Solid State Electronics Center 12001 Highway 55 Plymouth, Minnesota 55441 Wafer size: 150mm Processes: CMOS, bipolar Products: Rad-hard memories, ASICs, analog ICs, digital ICs, sensors, foundry services Feature sizes: 0.3µm, 0.4µm, 0.5µm, 0.7µm, 0.8µm, 1.2µm

2-188 North American Company Profiles HP

HEWLETT-PACKARD (HP)

Hewlett-Packard Company 3000 Hanover Street Palo Alto, California 94304-1112 Telephone: (650) 857-1501 Fax: (650) 857-5518 Web Site: www.hp.com

Captive IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Hewlett-Packard Company • Geneva, Switzerland Telephone: (41) (21) 780-8111

Asia-Pacific: Hewlett-Packard Company • Causeway Bay, Hong Kong Telephone: (852) 2599-7777

Financial History ($M), Fiscal Year Ends October 31

1992 1993 1994 1995 1996 1997 Corporate Sales 16,410 20,317 24,991 31,519 38,420 42,895 Net Income 549 1,177 1,599 2,433 2,586 3,119

Employees — — — — — 121,900

Semiconductor* Sales 745 880 1,085 1,250 1,420 1,585 IC Sales 400 475 585 655 740 826 Internal Sales 350 410 540 615 705 787 External Sales 50 65 45 40 35 39 Discrete Sales** 345 405 500 595 680 759

*Calendar year **Includes internal and external sales

Ownership: Publicly held. NYSE: HWP.

Company Overview and Strategy

Hewlett-Packard (HP) is one of the world's leading designers and manufacturers of electronic, medical, analytical, and computing instruments and systems. HP divides its business into five product categories: computer products, electronic test and measurement instruments and systems, medical electronic equipment, analytical instruments, and electronic components.

2-189 HP North American Company Profiles

Hewlett-Packard’s Components Group (CG) is structured into four main businesses:

• Optoelectronics Division: Broad range of visible LEDs, Displays, and Motion Sensing and Control products.

• Communications Semiconductor Solutions Division: Fiber Optic Transmit and Receive products, Infrared communication link products, RF/Microwave semiconductor devices, High Isolation Optocoupler components, and High Speed I/O integrated circuits and modules.

• Wireless Infrastructure Division: RF/Microwave/Millimeter-wave subsystems and components for wireless communications infrastructure equipment.

• Integrated Circuit Business Division: Application Specific Integrated Circuits, MPUs.

HP CG serves the following market areas: Communications Equipment (mobile, infrastructure, wired/wireless), Computer/Office Equipment, Transportation, Consumer Electronics, and Industrial Electronic Equipment. Also under the wings of Hewlett-Packard is HP Labs, which is one of the world's leading electronic research centers.

Management

Lewis E. Platt Chairman, President, and Chief Executive Officer Byron Anderson Vice President and General Manager, Microwave and Communications Group Bill Sullivan Vice President and General Manager, Components Group Alan Marty General Manager, Integrated Circuits Business Division Dick Chang General Manager, Communications Semiconductor Solutions Division Neal Carney Manager, Marketing, IC Business Division Lance Mills Manager, Research and Development, IC Business Division

2-190 North American Company Profiles HP

Products and Processes

HP's semiconductor products range from analog and high-speed digital ICs to RF, microwave, and optoelectronic semiconductors. The company also offers motion control devices, solid-state relays, and millimeter-wave components. In addition, HP manufactures RISC MPUs that are designed using what it calls Precision Architecture-RISC (PA-RISC).

In 1998, HP introduced three new Intel-based models to its family of home PCs. The new line features the following models.

• HP Pavilion 8290 PC — powered by a Pentium II 400MHz processor with 100MHz system bus, 64MB SDRAM, a 12.0GB hard drive and a DVD drive.

• HP Pavilion 8250 PC — powered by the new 266MHz Intel processor and comes with 48MB SDRAM and a 6.0GB hard drive.

• HP Pavilion 3265 PC — offers a 233MHz Pentium processor with MMX technology, 32MB SDRAM and a 56Kbps modem.

In early 1997, HP introduced the latest product from its PA-8000 RISC microprocessor family of 64-bit MPUs for high-end systems—the 12-million transistor PA-8500. Claiming to be HP’s most powerful microprocessor, the PA- 8500 incorporates 1.5MB of memory on chip and was designed on a 0.25µm process. Target applications for the device include Internet access, database access and management, computer-aided design and manufacturing (CAD/CAM), and communications.

HP uses sophisticated semiconductor technologies based on silicon, GaAs, and InP materials.

Semiconductor Fabrication Facilities

In April 1997, Hewlett-Packard announced the development of a new joint venture foundry company with foundry company, Chartered Semiconductor, and the Economic Development Board (EDB) of Singapore. This is the second fab facility investment HP has made in Singapore.

The new venture, called Chartered Silicon Partners, will be located adjacent to Chartered’s exiting facilities in the Woodlands Industrial Park in Singapore. Construction of a 200mm wafer manufacturing facility is expected to begin in September 1997 with production beginning in mid-1999. HP will receive a specified amount of wafers (0.35µm and 0.25µm ASICs) from the venture in exchange for its investment, while the remaining capacity will be offered as part of Chartered’s usual foundry services. Chartered will hold the majority interest of the venture while HP and the EDB will hold minority positions.

2-191 HP North American Company Profiles

Hewlett-Packard Hewlett-Packard 350 West Trimble Road 39201 Cherry Street San Jose, California 95131-1008 Newark, California 95131 Telephone: (408) 435-7400 Telephone: (408) 435-6765 Capacity (wafers/week): 1,100 Cleanroom size: 13,000 square feet Wafer sizes: 3 in., 100mm Capacity (wafers/week): 1,250 Processes: Bipolar, GaAs Wafer size: 100mm Products: ASICs, optoelectronics, discretes Process: Bipolar Feature sizes: 0.5µm-5.0µm Products: Analog ICs, RFICs

Hewlett-Packard Hewlett-Packard 3404 East Harmony Road 1050 Northeast Circle Boulevard Fort Collins, Colorado 80525 Corvalis, Oregon 97330 Telephone: (303) 229-3800 Capacity (wafers/week): 5,600 Capacity (wafers/week): 1,250 Wafer sizes: 100mm, 150mm Wafer sizes: 100mm, 150mm Process: CMOS Processes: CMOS, bipolar Products: ASICs, MPUs, MPRs, DSPs Products: RFICs, microwave ICs, MPUs, ASICs Feature sizes: 0.5µm-1.0µm Feature sizes: 0.35µm-1.0µm

Hewlett-Packard Hewlett-Packard Santa Rosa, California Santa Clara, California Capacity (wafers/week): 1,000 Cleanroom size: 17,000 square feet Wafer size: 2 in. Capacity (wafers/week): 225 Process: Bipolar Wafer size: 3 in. Products: Discretes Process: GaAs Products: ICs and discretes

TECH Semiconductor Singapore Pte. Ltd. P.O. Box 2093, SE 9040 990 Bendemeer Road Singapore 1233 Telephone: (65) 298-1122 Cleanroom size: 40,000 square feet Capacity (wafers/week): 6,250 Wafer size: 200mm Process: CMOS Products: DRAMs Feature sizes: 0.35µm, 0.5µm (Joint venture with Texas Instruments, the Economic Development Board of Singapore, and Canon.)

2-192 North American Company Profiles HP

Key Agreements

• Intel and HP have worked for more than three years on the next-generation microprocessor architecture technology. On October 14, 1997, the two companies revealed the first details of their jointly defined Explicity Parallel Instruction Computing (EPIC) technology and IA-64 (Intel Architecture 64-bit). IA-64, based on EPIC technology, will enable breakthrough performance, compatibility and scalability addressing next-generation, 64-bit high-end workstation and server market requirements. HP’s future systems will be built with IA-64-based processors that will take full advantage of EPIC technology.

• Early in 1997, HP and Cisco Systems Inc. agreed to a broad technology-development, Internet solutions and customer-support alliance. This agreement expanded an ongoing relationship to more fully integrate computing, networking and network management, and to offer end-to-end support and security for Internet- ready networked computing solutions.

• HP announced a joint strategy with Microsoft to increase the productivity of their enterprise customers’ computing technology while reducing costs. Together, they’re developing an initiative to help customers achieve cost-effective enterprise environments.

• AT&T Microelectronics (now Lucent Technologies) and Hewlett-Packard signed an agreement in early 1995 to develop and dual-source fiber-optic transceivers for SONET/SDH and ATM applications.

• To promote and coordinate the use of its PA-RISC architecture, Hewlett-Packard formed PRO, the Precision RISC Organization. Some of the founding members are Convex Computer, Hitachi, Oki, Hughes Aircraft, and Mitsubishi. Other members include Sequoia Systems and Winbond Electronics.

• Although not a PRO member, Samsung has the right to manufacture PA-RISC ICs to sell on the merchant market and use in its own workstations.

• HP formed an alliance with Analog Devices for the joint development of advanced mixed-signal processes based on HP's submicron CMOS and BiCMOS technologies.

• Hewlett-Packard and Intel announced a wide ranging joint research and development alliance in 1994 under which the partners are seeking to design a superior next-generation 64-bit microprocessor by 1999, a year later than originally planned. The processor will be binary-compatible with both Intel x86 code and HP PA-RISC code.

2-193 Hughes Electronics North American Company Profiles

HUGHES ELECTRONICS*

Hughes Electronics Corporation

Delco Electronics Corporation Hughes Aircraft Company One Corporate Center Microelectronics Division Kokomo, Indiana 46904-9005 500 Superior Avenue Telephone: (317) 451-5700 Newport Beach, California 92663 Fax: (317) 451-5426 Telephone: (714) 759-2411 Web Site: www.delco.com Fax: (714) 759-2986 Web Site: www.hughes.com

Captive IC Manufacturer

*In January 1997, Hughes Electronics Corporation and Raytheon entered into a definitive agreement to bring about the merger of the defense operations (Hughes Aircraft Company, which includes the Microelectronics Division) and Raytheon. As part of the agreement, Delco Electronics will be transferred from Hughes Electronics to GM’s Delphi Automotive Systems. On October 20, 1997 — GM announced that it was moving forward with restructuring transactions that include the spin-off of Hughes Defense and its merger with Raytheon, and the transfer of Delco Electronics from Hughes Electronics to GM.

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 Corporate Sales 12,297 13,518 14,099 14,772 15,918 Net Income (922) 922 1,049 1,108 1,151

*Semiconductor Sales 341 350 360 340 330 Delco Electronics 205 220 235 240 250 Internal Sales 195 205 215 215 215 External Sales 10 15 20 25 35 Hughes Aircraft 136 130 125 100 80 Internal Sales 81 72 64 45 30 External Sales 55 58 61 55 50

*Delco Electronics returned to GM’s Delphi Automotive Systems, and Hughes Aircraft was sold to Raytheon who in turn sold its Semiconductor Division to Fairchild.

Company Overview and Strategy

Hughes Electronics Corporation (HE), known as GM Hughes Electronics Corporation prior to March 1995, is a subsidiary of General Motors Corporation. HE's principal operating organizations are Delco Electronics Corporation and Hughes Aircraft Company. Its other business units are Hughes Telecommunications and Space Company, DirecTV, Inc., and Hughes Network Systems, Inc.

2-194 North American Company Profiles Hughes Electronics

Delco Electronics (DE) is a world leader in the development, manufacture, and marketing of vehicle and driver systems for the global automotive market, and Hughes Aircraft, acquired by GM in 1985, is a world leader in aerospace, defense electronics, and information systems.

Delco Electronics, alone, is the third largest captive IC manufacturer. Its fabrication facilities produce about 40 percent of its semiconductor needs. The company produces advanced ICs that perform a variety of functions, such as deciphering radio frequency signals for audio systems, controlling the release of an airbag, suspension system control, and fuel, electrical, and ignition management. Some of its new technologies include night vision systems, collision avoidance systems, navigation systems, keyless start systems, tire pressure warning systems, and reconfigurable LCD head-up displays.

Hughes Aircraft continues to restructure its business to adapt to severe cuts in U.S. defense spending. The company intends to maintain its leadership in key defense markets, while at the same time, explore new marketplaces and exploit new technologies. Some commercial ventures the company is involved in include: digital cellular communications systems, advanced acoustic technologies, light projection systems, digital signal compression, character recognition, and airport integration systems.

In January 1997, GM and Hughes Electronics announced a series of strategic transactions designed to strengthen the position of GM in two key areas — telecommunications and space, and automotive electronics. GM has a definitive agreement with Raytheon to spin off Hughes Aircraft from Hughes Electronics and then merge the operation into Raytheon. Separately, Delco Electronics will be transferred from Hughes Electronics to GM’s Delphi Automotive Systems. Both of these transactions are expected to take place in 3Q97.

Management

Michael T. Smith Chairman and Chief Executive Officer, Hughes Electronics Corporation Charles H. Noski President, Hughes Electronics Michael J. Burns Executive Vice President, Hughes Electronics Corporation; General Manager, Delco Electronics Corporation John C. Weaver Senior Vice President, Hughes Electronics Corporation; President, Hughes Aircraft Company

2-195 Hughes Electronics North American Company Profiles

Products and Processes

IC Delco, DE's automotive semiconductor unit, designs and manufactures custom analog and digital ICs for specific automotive applications such as anti-lock brake systems, engine controllers, suspension control systems, communications, and instrumentation. IC Delco also produces silicon-based electronic sensors.

Among the semiconductor devices Hughes Aircraft designs and manufactures are ASICs, memory devices, microcomponents, rad-hard circuits, monolithic microwave integrated circuits (MMICs), and millimeter-wave devices using a variety of process technologies including CMOS, BiCMOS, GaAs, and InP.

Semiconductor Fabrication Facilities

Delco Electronics Corporation Hughes Aircraft Company IC Delco Business Unit Microelectronics Division 700 East Firmin Street 500 Superior Avenue Kokomo, Indiana 46902-2340 Newport Beach, California 92663-3627 Cleanroom size: 125,000 square feet (3 fabs) Telephone: (714) 759-2411 Capacity (wafers/week): 12,000 Capacity (wafers/week): 1,600 Wafer sizes: 100mm, 125mm Wafer sizes: 100mm Processes: NMOS, CMOS, BiCMOS, bipolar Processes: CMOS, BiCMOS, SOS, CryoCMOS Products: MPUs, MCUs, ASICs, logic and Products: ASICs, memories, MCUs, LCD drivers, linear ICs, discretes. linear ICs, rad-hard ICs, foundry services. Feature sizes: 1.0µm-2.0µm Feature sizes: 1.25µm-5.0µm

Hughes Aircraft Company Hughes Microelectronics Europa, Ltd. Hughes Communications Products Fullerton Road 3100 Lomita Boulevard Queensway Industrial Estate Torrance, California 90509 Glenrothes, Fife, Scotland KY7-5PY Telephone: (310) 517-6880 Telephone: (44) (1592) 754-311 Fax: (310) 517-6883 Fax: (44) (1592) 610-186 Capacity (wafers/week): 250 Capacity (wafers/week): 1,600 Wafer size: 3 in. Wafer size: 100mm Processes: GaAs, InP Processes: CMOS, MOS Products: MMICs, MM-wave devices, discretes Products: ASICs, memories, custom ICs Feature sizes: 0.25µm-0.5µm Feature size: 3.0µm

Key Agreements

• In December 1997, Fairchild completed its acquisition of Raytheon Electronics Semiconductor, a division of the Raytheon Company.

• Delco Electronics and Texas Instruments jointly developed a new methodology, called Prism, that is claimed to cut the high cost and long lead time of taking complex mixed-technology designs from concept to silicon. Prism is being used by DE to produce configurable 16-bit microcontrollers for GM cars.

2-196 North American Company Profiles Hutson Industries

HUTSON INDUSTRIES

Hutson Industries P.O. Box 90 1000 Hutson Circle Frisco, Texas 75034 Telephone: (972) 335-8600 Web Site: www.hutsonind.com Email: [email protected]

Discrete Semiconductor Manufacturer

Ownership: Privately held.

Company Overview and Strategy

Hutson Industries was formed in 1965, and specializes in the design and manufacturing of semiconductor switching devices for the industrial market. Today, Hutson is one of the largest manufacturers of thyristors.

Products and Processes

The basic product line includes:

•DIACS •SCRs •SIDACS •TRIACS •Chips and Wafers

The company offers most of its product line in chip or wafer form for the hybrid market or special assemblies.

2-197 IBM Microelectronics North American Company Profiles

IBM MICROELECTRONICS

IBM Microelectronics 1580 Route 52, Building 504 Hopewell Junction, New York 12533 Telephone: (914) 894-2121 Fax: (914) 894-6891 Web Site: www.chips..com

IC Manufacturer Founded: 1924

(See Top Ten)

2-198 North American Company Profiles IC Works

IC WORKS

IC Works, Inc. 3725 North First Street San Jose, California 95134-1700 Telephone: (408) 922-0202 Fax: (408) 922-0833 Web Site: www.icworks.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends March 31

1994 1995 1996 1997 1998 Sales 21 26 41 47 55

Employees 125 150 200 250 120

Ownership: Privately held.

Company Overview and Strategy

IC Works was established in June 1992, when it acquired the San Jose fabrication facility, process technology, and engineering and manufacturing staff of Samsung Semiconductor, the U.S. business of Korea’s Samsung.

As an independent company, IC Works designs, manufactures, and markets mixed-signal products using its design and in-house facility, and provides quick-turn, submicron foundry services to selected mixed-signal semiconductor companies.

IC Works operates three complementary mixed-signal businesses — clock products, wireless communications products, and submicron foundry services.

Management

Ilbok Lee, Ph.D. President and Chief Executive Officer Dan Feier Vice President and Chief Financial Officer Barry Small Vice President, Fab Operations Barr Leff Vice President, Marketing Chen Wang Vice President, Engineering

2-199 IC Works North American Company Profiles

Products and Processes

IC Works' products and services include high-performance clock generator ICs, and wireless communication circuits. New products for the computer and data communications markets are being developed.

Clock Products IC Works offers a wide range of high performance phase-locked-loop (PLL)-based clock ICs for system manufacturers in a variety of markets. The main applications within the clock market include PC motherboards, communications, mass storage, multimedia, and workstations. Products include clock buffers and single and dual PLL clocks.

Wireless Communications Utilizing its PLL and BiCMOS process technologies, IC Works is developing RF solutions for the wireless marketplace, focusing on data communications. This product strategy includes development of component level functional block products and ASSPs.

As part of the buyout, Samsung licensed IC Works to use its scaleable submicron CMOS and BiCMOS process technologies. Currently, the majority of IC Works’ production wafer output is processed to 0.7µm design rules with a migration to 0.6µm under way. Future plans include development of finer geometry processes down to 0.35µm.

Key Agreements

• In 1996, IC Works and Motorola announced a second-source agreement for the development and manufacture of CMOS and BiCMOS-based mixed-signal timing circuits. Motorola will contribute high-performance timing solutions targeted at workstations, servers, and network applications, while IC Works will provide “clock” solutions targeting personal computers and peripheral applications.

2-200 North American Company Profiles ICS

INTEGRATED CIRCUIT SYSTEMS (ICS)

Integrated Circuit Systems, Inc. 2435 Boulevard of the Generals P.O. Box 968 Valley Forge, Pennsylvania 19482-0968 Telephone: (610) 630-5300 Fax: (610) 630-5399 Web Site: www.icst.com

Fabless IC Supplier

Financial History ($M)

Year Ended Year-to-Date Year ended June 30 June 29 June 28 Six Months 1993 1994 1995 1996 1997 1998 Sales 78 94 98 91 104 82 Net Income 11 12 5 4 (8) 11 R&D Expenditures 9 10 11 12 14 —

Employees 314 336 219 206 250 —

Special Charges

1997 – Reflects special charges relating to the acquisition of MicroClock, Inc. ($11.2) and the write-off of the investment in Voyetra ($7.0).

1996 – Reflects special charges of $3.3 million relating to the Turtle Beach operations.

1995 – Reflects special charges of $7.4 million associated with severance and other exits costs associated with redirection of the company’s multimedia strategy.

Company Overview and Strategy

Integrated Circuit Systems, Inc. (ICS), with headquarters in Valley Forge, Pennsylvania, a major design center in Silicon Valley, California, and a product test center in Singapore, is a fabless semiconductor company specializing in high performance mixed-signal integrated circuits for frequency synthesizers, data communications, imaging, and ASIC products. ICS was founded in 1976, launched an IPO in 1991, and trades on the NASDAQ stock exchange under the stock symbol ICST.

ICS’ primary focus is to combine its innovation, market position, and competency in mixed-signal and phase locked-loop technology to capitalize on the trend convergence of computer, communications, and consumer applications, especially in the LAN/WAN communications marketplace.

2-201 ICS North American Company Profiles

Management

Henry Boreen Chairman of the Board Hock Tan Senior Vice President, Chief Operating Officer and Chief Financial Officer Christopher Bland Vice President, Consumer Products Group Edward Christiansen Vice President, Operations Martin Goldberg Vice President, Sales Paul Lessard Vice President, Systems Technology Barry Olson Vice President, Multimedia FTG Gregory Richmond Vice President, Computer Products Group K. Venkateswaran, Ph.D. Vice President, Data Communications Group

Products and Processes

Mixed-Signal Technology ICS markets high performance, mixed-signal CMOS integrated circuits. Mixed-signal technology combines analog and digital circuitry on a single integrated circuit. ICS continues to push the envelope of mixed-signal design towards the computer, consumer, and communications markets.

Frequency Timing Generators ICS is a worldwide leader in Personal Computer frequency timing generators. Every computer system has at least one frequency timing generator (FTG) to synchronize timing between the microprocessor and peripherals with the exchange of data. Frequency timing applications include personal computers, peripherals, such as hard disk drives, printers, scanners, modems and digital cameras, consumer products, such as TV set-top boxes, satellite receivers, cordless phones, and professional products, such as workstations and multimedia. ICS’ FTGs are available for all popular microprocessor families, as well as compatible processors and core logic sets.

Data Communications ICS’ data communications products include high-performance transceiver chips designed for applications in network systems. These devices work in Local Area Networks (LAN) and Wide Area Networks (WAN), including SONET/SDH fiber optic systems and 100/10M Fast Ethernet TX/FX systems. ICS is a market leader in single chip CMOS PHYceivers™ for Fast Ethernet, and is also a founding member of the Gigabit Ethernet Alliance with plans to support the Gigabit Ethernet market.

Core Technology and Custom ICs ICS’ mixed-signal chips integrate analog functions with digital logic, allowing development of cost effective, state- of-the-art designs. Applications technology includes major industry groups, such as telecommunications, military/aerospace, consumer and computers. ICS’ design strengths include data acquisition, switched capacitor filters, phase-lock loops (PLL) with patented voltage controlled oscillators (VSO), voltage controlled crystal oscillators (VCXO), and gigahertz CMOS.

2-202 North American Company Profiles ICS

Key Agreements

• ICS has entered into agreements with foundries such as Chartered Semiconductor, UMC, TSMC, and AMI to supply wafers manufactured to its specifications and designs. Some of these agreements provide for investment from ICS to ensure availability of capacity.

• During fiscal year 1996, ICS established an agreement with Chartered Semiconductor to secure a minimum wafer supply from Chartered covering a five year period.

• ICS acquired a 51 percent interest in ARK Logic, Inc. in 3Q95. ICS plans to combine its audio design specialty with ARK’s video graphics expertise to develop a chip that handles 3D graphics, VGA control, and audio and video processing. ICS may purchase the remaining 49 percent of ARK Logic.

• In October 1992, ICS entered into an alliance with American Microsystems Inc. under which ICS secured wafer processing capacity through the year 2000.

• ICS licensed DSP Group’s Pine digital signal processing and TrueSpeech voice compression technologies for use in its next-generation audio components.

2-203 ICT North American Company Profiles

ICT

ICT Inc. 2123 Ringwood Avenue San Jose, California 95131 Telephone: (408) 434-0678 Fax: (408) 432-0815 Web Site: www.ictpld.com

Fabless IC Supplier

Company Overview and Strategy

ICT Inc., founded in November 1991, designs, manufactures, and markets programmable logic devices (PLDs) for a variety of applications such as PCs, telecommunications, industrial, medical, and consumer electronics. The company was originally established in 1983 by International CMOS Technology.

ICT is organized into two divisions: the Programmable Logic Division (PLD) and the Personal Computer Products Division (PCPD). The PLD designs, develops, and markets user-programmable integrated circuits specializing in programmable logic devices (PLDs). The PCPD designs and markets PC core logic chipsets and peripheral controller products.

Management

David Sears, Ph.D. Chairman Edward D. Barnett President and Chief Operating Officer Volker Cathrein Chief Financial Officer and Secretary of Finance

Products and Processes

ICT's programmable logic product line consists of two families of CMOS PLDs — PEEL (Programmable Electrically Erasable Logic) Devices and PEEL Arrays — in addition to supporting development tools. PEEL Devices are simple PLDs designed as replacements for standard 20-pin and 24-pin PAL/GAL devices with speed grades ranging from 5ns to 25ns. PEEL Arrays are complex PLDs (CPLDs) that combine a non-segmented PLA with FPGA-like logic cells with wide single-level delays as fast as 9ns/15ns (internal/external). PEEL Arrays are used for combinatorial logic, with clocking frequencies running up to 80MHz for sequential functions.

2-204 North American Company Profiles ICT

PEEL Devices PEEL Arrays PEEL 16V8 PA7024 PEEL 18CV8 PA7128 PEEL 18LV8Z PA7140 PEEL 20V8 PEEL 22CV8 PEEL 22V10 PEEL 22CV10A PEEL 22CV10AZ PEEL 22LV8Z PEEL 22LV10AZ

ICT's PLDs are designed and manufactured using proprietary 0.8µm CMOS EEPROM technology.

The company's PC product line consists of Pentium and 486 portable and desktop core logic chipsets, programmable peripheral interface ICs, and peripheral controller ICs.

Semiconductor Fabrication Facilities

ICT is a fabless IC supplier therefore, utilizes external fabrication and assembly facilities. ICT wafers are currently fabricated by two companies: Chartered Semiconductor Manufacturing of Singapore and Rohm Co. of Japan. Assembly and test work is handled by multiple vendors in the Philippines, Thailand, and Taiwan.

Key Agreements

• ICT has a license agreement with AMD involving PLD products.

2-205 IDT North American Company Profiles

INTEGRATED DEVICE TECHNOLOGY (IDT)

Integrated Device Technology, Inc. 2975 Stender Way Santa Clara, California 95054 Telephone: (800) 345-7015 Fax: (408) 492-8674 Web Site: www.idt.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Integrated Device Technology–Nippon–K.K. • Chiyoda-ku, Tokyo, Japan Telephone: (81) (3) 3221-9821 • Fax: (81) (3) 3221-9824

Europe: Integrated Device Technology, Ltd. • Leatherhead, Surrey, United Kingdom Telephone: (44) (1372) 363339 • Fax: (44) (1372) 378851

Asia-Pacific: Integrated Device Technology, Asia, Ltd. • Tsimshatsui, Hong Kong Telephone: (852) 2736-0122 • Fax: (852) 2375-2677

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 236 330 422 680 537 587 Net Income 5 40 78 120 (42) 8 R&D Expenditures 54 64 78 133 151 121 Capital Expenditures 28 38 95 287 201 —

Employees 2,414 2,615 2,965 3,875 4,600 5,000

Ownership: Publicly held. NASDAQ: IDTI.

Company Overview and Strategy

Integrated Device Technology, Inc. (IDT), enables a digitally connected world by providing innovative semiconductor solutions to leading-edge system designers in communications and computing. IDT’s broad product mix consists of communications memories, networking devices, both RISC and x86 microprocessors, high-speed SRAMs and high-performance logic. The company’s technologies and products take aim at markets expected to exceed a total of $20 billion in 1998.

2-206 North American Company Profiles IDT

Headquartered in Santa Clara, California, the company employs approximately 5,000 people worldwide and has manufacturing facilities in California, Oregon, the Philippines and Malaysia.

Management

D. John Carey Chairman Leonard Perham President and Chief Executive Officer Alan Krock Chief Financial Officer Ray Farnham Executive Vice President Jerry Taylor Executive Vice President, Worldwide Manufacturing and Memory Products Glenn Henry Senior Vice President Stuart Bardach Vice President, Quality Charles Clark Vice President, Subsystems Products/SRAM Products William Cortelyou Vice President, Wafer Operations Dave Côté Vice President, Marketing Stefan Braken-Guelke Vice President, Logic Products Robin Hodge Vice President, Assembly and Test Jimmy Lee Vice President, FIFO Products Daniel Lewis Vice President, Worldwide Sales Chuen-Der Lien Vice President, Technology Development John Mick Vice President, Systems Technology Group Bob Phillips Vice President, Worldwide Manufacturing Robert Proebsting Vice President, Advanced Design Concepts

2-207 IDT North American Company Profiles

Christopher Schott Vice President, Specialty Memory Products Thomas Wroblewski Vice President, Human Resources John Payne Vice President, Far Eastern Operations Nick Kucharewski Vice President, Microprocessor Products Jack Menache Vice President, General Counsel and Secretary William Cowing Vice President, European Sales Gary Dean Vice President, Materials Rick Picard Vice President, Special Programs Joel Dedrick Vice President, Graphics and System Solutions

Products and Processes

IDT produces communications products, SRAMs, logic products and both RISC and x86 microprocessors. These products are designed and manufactured using proprietary advanced submicron CMOS and BiCMOS process technologies, including the company's 0.5µm process and its next-generation 0.35µm process. IDT's product groups are outlined below.

SRAMs • Fast CMOS asynchronous and synchronous SRAMs with 16K to 4M densities and access times as fast as 8ns. • Fast CMOS ZBT™ synchronous SRAMs that optimize system performance in applications that frequently turn the data bus around between reads and writes. Available in 1M density and 4M density devices that will support clock speeds up to 133MHz. • High-speed industry-standard and custom CMOS SRAM modules.

Communications Memory Products • High-speed CMOS multi-port SRAMs in densities from 8K to 1M with both synchronous and asynchronous interfaces. • High-density CMOS first-in, first-out memories (FIFOs) in synchronous unidirectional or bidirectional and asynchronous unidirectional or bidirectional versions, covering depths from 1K to 256K and widths from 4 to 36 bits. • Low-cost Asynchronous Transfer Mode (ATM) 25 to 155Mbps segmentation and reassembly (SAR) controllers and physical layer (PHY) transceivers for use in emerging XDSL, NIC and DSLAM markets. • SWITCHSTAR™ network switching chipset enables low-cost switch designs.

Logic Products • Leading supplier of high-performance, low-power logic. • More than 242 logic, interface and clock management components. • ALVC and LVC families of high-performance logic.

RISC and x86 Microprocessors • IDT is leading innovator of 32- and 64-bit RISController™ microprocessors. • IDT WinChip™ products for sub-$1,000 desktop computers. • Full range of development tools.

2-208 North American Company Profiles IDT

Semiconductor Fabrication Facilities

Integrated Device Technology Integrated Device Technology 1566 Moffett Street 2670 Seeley Road Salinas, California 93905 San Jose, California 95134 Fab 2 Telephone: (408) 944-0114 Cleanroom size: 24,000 square feet (Class 3) Fab 3 Capacity (wafers/week): 2,150 Cleanroom size: 24,000 square feet (Class 1) Wafer size: 150mm Capacity (wafers/week): 1,700 Process: CMOS Wafer size: 150mm Products: SRAMs, FIFOs, MPUs, logic Processes: CMOS Feature sizes: 0.5µm-0.8µm Products: SRAMs, FIFOs, MPUs, logic ICs, R&D Feature sizes: 0.25µm-0.5µm

Integrated Device Technology Hillsboro, Oregon Fab 4 Cleanroom size: 48,000 square feet (Class 1) Capacity (wafers/week): 1,875 (3,700 when fully outfitted) Wafer size: 200mm Processes: CMOS, MPUs Feature sizes: 0.25µm, 0.35µm, 0.5µm (Began operations in 1Q96).

Key Agreements

• IDT is in a cooperative agreement with Micron and Motorola to manufacture and market SRAM products based on Zero Bus Turnaround™ (ZBT) architecture.

• IDT announced an alternate source agreement with Texas Instruments to manufacture ALVC and LVC logic products.

2-209 IMI North American Company Profiles

INTERNATIONAL MICROCIRCUITS (IMI)

International Microcircuits Inc. 525 Los Coches Street Milpitas, California 95035-5423 Telephone: (408) 263-6300 Fax: (408) 263-6571 Web Site: www.imicorp.com

IC Manufacturer

Ownership: Privately held (profitable from operations since inception).

Employees 80

Company Overview and Strategy

IMI focuses on Application Specific Standard Products (ASSPs) targeting the computer, computer peripheral and communications markets with mixed analog/digital integrated circuits. Current IMI products focus on System Clocks and Spectrum Spread products.

IMI was founded by Frank Deverse in the early 1970s. In December 1997, a leveraged buyout of Mr. Deverse by IMI management, T.A. Associates, a large and nationally well respected venture capital firm, took place.

There are four elements to the company’s strategic positioning: focus, diversification, fast time to market and competitive pricing. As a company, IMI focuses on not only specific markets but on the leaders within those markets.

While having segmented the markets, IMI primarily targets the industry leaders within those segments. Becoming the OEM supplier to the industry leaders is IMI’s goal.

IMI also plans to diversify into other applications.

IMI’s products are sold worldwide through direct sales and independent sales representatives. Exports accounted for over 70 percent of the company’s revenues in FY97.

2-210 North American Company Profiles IMI

Management

Ilhan Refioglu President and Chief Financial Officer Orhan Tozun Vice President, Engineering Ed Walsh Vice President, Manufacturing George Gray Vice President, Marketing Rick Reifer Vice President, Sales Judith Signorino Director, Finance

Products and Processes

IMI addresses the consumer market in computer and communication applications. IMI addresses its focus market segments with mixed signal integrated circuits. In the computer market, IMI supplies system clocks, based on traditional and spectrum spread technologies.

With unique technology and a broad line of low EMI system clock circuits, the company is well positioned to take advantage of the market’s growing need for reduced EMI. IMI expects its family low EMI integrated solutions to continue to gain wide acceptance in the market.

IMI’s customer list includes: IBM, Hewlett Packard, Compaq, Dell, Siemens, NEC, Fujitsu, DEC, Apple, MicroStar, ACER, Goldstar, and Daewoo.

IMI is ISO 9001 certified.

Semiconductor Fabrication Facilities

IMI’s wafer production is done by the company’s foundry partner, IBM, using primarily the Burlington, MA and Essones, France facilities. IMI uses 0.8 micron (5 inch wafers) and 0.35 micron (8 inch wafers) process technologies.

All assembly is contracted to the Far East and is dual sourced. All wafer sort and final test functions are conducted at IMI’s headquarters.

International Microcircuits Inc. 525 Los Coches Street Milpitas, California 95035-5423 Cleanroom size: 2,000 square feet (Class 10) Wafer size: 150mm Process: CMOS Products: ASSPs Feature sizes: 0.35µm, 0.8µm

2-211 IMP North American Company Profiles

IMP

IMP, Inc. 2830 North First Street San Jose, California 95134-2071 Telephone: (408) 432-9100 Fax: (408) 434-0335 Web Site: www.impweb.com Email: [email protected]

IC Manufacturer

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 56 48 60 77 65 40 Net Income (2) 0.4 1 5 (12) (4) R&D Expenditures 10 9 9 10 10 8 Capital Expenditures 2 5 5 7 2 1

Employees 324 340 400 425 226 228

Ownership: Publicly held. NASDAQ: IMPX.

Company Overview and Strategy

IMP, Inc. designs, manufactures and markets standard-setting analog integrated circuits and specialty analog wafer foundry processes for data communications and power management applications in computer, communications and control systems. IMP products are sold through a worldwide network of representatives and distributors.

2-212 North American Company Profiles IMP

To address the need for wafer capacity by small fabless startup companies, IMP announced the establishment of its Silicon Venture Partners (SVP) program in May 1995. Under the SVP program, IMP provides access to wafer fabrication capabilities to fabless semiconductor startups. This includes absorbing some of the expenses of developing and producing a new IC in exchange for product, marketing, and/or technology rights, a share of future profits, or other compensation.

Company Facilities

IMP headquarters and ISO 9001 certified wafer fabrication and test facility are located in San Jose, California. Product development centers are in Pleasanton, California, and Lee, New Hampshire. The company employs 226 people.

Analog Integrated Circuit Products

Key areas of focus are Data Communications and Power Management.

Data Communications includes memory bus terminators and second generation Small Computer Serial Interface (SCSI) termination functions that lower system cost.

Power Management includes devices to generate, distribute, protect and manage thermal and power consumption characteristics of desktop and portable computers, mobile communication devices and battery powered electronic systems. Examples include Electroluminescent (EL) lamp drivers, low dropout (LDO) regulators, microprocessor supervisors and high-frequency switching converters.

The company also supplies read-channels, preamplifiers, programmable filters, write drivers and other complex mixed-signal ICs for tape back-up and other mass-storage peripherals.

Wafer Fabrication and Manufacturing Services

High-volume, analog and mixed-signal wafer foundry services on low-power, high-voltage, CMOS, BiCMOS, and EEPROM processes, including turnkey packaging and test capabilities. Fabrication services include database production using IMP standard processes, and porting of customer-owned technology.

Management

David Laws Chairman of the Board Phil Ferguson President and Chief Executive Officer George Rassam Chief Financial Officer Jerry DaBell Sr. Vice President, Design Engineering Barry Wiley Vice President, Sales and Application Engineering Moiz Khambaty, Ph.D. Vice President, Technology Tarsaim Batra Vice President, Manufacturing Ron Laugesen Vice President, Product Engineering

2-213 IMP North American Company Profiles

Products and Processes

Analog Integrated Circuit Products Data Communications – Internal system data communications devices, including memory bus terminators and state-of-the-art Small Computer Serial Interface (SCSI) termination functions, both single-ended and multi-mode, that lower system cost.

Power Management – Devices to generate, distribute, protect and manage thermal and power consumption characteristics of desktop and portable computers, mobile communication devices and battery powered electronic systems. Examples include Electroluminescent (EL) lamp drivers, low dropout (LDO) regulators, microprocessor supervisors and high-frequency switching converters.

Analog Wafer Foundry Services IMP’s Wafer Foundry Services provide wafer fabrication services on value-added analog, mixed-signal and high-voltage processes. Both fast-turn prototype and high-volume production demands are supported. The product line also manages selective ASIC design programs in association with the customer and third- party design resources. To date, more than 1,000 designs have been manufactured for many customers including AT&T, Adaptec, Daimler-Benz, International Rectifier, Level One Communications, Rockwell Semiconductor, Siemens and Tektronix.

IMP offers manufacturing capability on a broad range of CMOS technologies in its ISO 9001 registered, 18,000 square foot wafer fabrication facility, with 8,000 square feet under Class 10 laminar-flow, cleanroom conditions. Processes available today include BiCMOS, CMOS and EEPROM technologies.

IMP manufactures products using N-well and P-well, single and double layer poly CMOS analog processes. Analog capabilities range from 5 micron high-voltage, down to high-speed 0.8 micron processes. These include double-poly technology to ensure maximum capacitor stability in analog circuits. Vertical and lateral bipolar transistors are available to minimize noise in analog inputs and support high-drive outputs. Processes created for battery-operated circuits provide low-voltage operation, down to 1.5V.

BiCMOS technology options provide solutions for users requiring the speed and drive of bipolar devices and the low power/high density of CMOS. High-voltage manufacturing experience includes 30V BiCMOS processes for audio and power management applications, 100V for display and lamp drivers, and custom power programs from 300V to 600V. Electrically Erasable CMOS modules permit the incorporation of unique user-configurable features into analog and mixed-signal designs.

2-214 North American Company Profiles IMP

Semiconductor Fabrication Facilities

IMP, Inc. 2830 North First Street San Jose, California 95134 Cleanroom size: 8,000 square feet (Class 10) Capacity (wafers/week): 3,500 Wafer size: 125mm Processes: CMOS, BiCMOS, EECMOS, High-Voltage CMOS Products: Foundry Services (wafer, test, packaging) Data Communications: SCSI terminators, PCM Switches Power Management: µP Supervisors, Electroluminescent (EL) lamp drivers, SMPS controllers and Low Dropout (LDO) regulators. Feature sizes: 0.8µm, 1.0µm, 1.2µm, 2.0µm, 3.0µm, 5.0µm

Key Agreements

• In June 1998, IMP announced the signing of a Joint Technology development agreement with Honeywell’s Micro Switch Division. The long-term program will develop new analog and mixed signal IC wafer manufacturing technology based on an existing IMP BiCMOS process. With completion of the technology development phase, IMP will provide wafer manufacturing services to Honeywell on proprietary analog integrated circuits for sale in the North American and International Markets.

• In September 1997, IMP introduced the IMP5000 family, the first product line resulting from a strategic partnership with Linfinity Microelectronics that was announced in July 1997. Based on a new second- generation, Small Computer Systems Interface (SCSI) termination architecture, the IMP5000 BiCMOS devices deliver higher bandwidth and lower system cost than the first generation linear terminators currently available. With this announcement, IMP is entering the fast growing market for devices serving data communications applications for local computer to peripheral interconnections based on the industry-standard SCSI specifications.

Under the agreement, IMP developed a BiCMOS process optimized for high volume production of advanced SCSI terminator devices. Linfinity developed the UltaMAX™ adaptive, non-linear termination architecture that provides improved performance and eliminates many expensive and board area consuming capacitors required by first generation devices from Unitrode and Dallas Semiconductor.

• In July 1997, IMP announced a broad technology strategic alliance with Linifinity Microelectronics Inc., of Garden Grove, CA, a subsidiary of SymmetriCom, Inc. As part of this alliance, Linfinity, which designs and manufacturers a wide variety of next-generation portable power, desktop power and data communications analog and mixed-signal IC solutions, will gain the use of IMP’s advanced process technology, manufacturing capacity and design resources.

IMP has licensed SCSI terminator technology from Linfinity.

2-215 IMP North American Company Profiles

• IMP has a design and process technology transfer agreement with South African Microelectronic Systems (SAMES). SAMES purchased the rights to IMP’s 1.2-micron and 2.0-micron mixed-signal process technologies and has been qualified as a second source for IMP’s high-volume manufacturing process.

2-216 North American Company Profiles Infinite Technology

INFINITE TECHNOLOGY

Infinite Technology Corporation 2425 North Central Expressway, Suite 323 Richardson, Texas 75080 Telephone: (972) 437-7800 Fax: (972) 437-7810 Web Site: www.infinite-tech.com

Fabless IC Supplier

Employees: 30

Ownership: Privately held.

Company Overview and Strategy

Established in 1991, Infinite Technology Corporation (ITC) is involved in the research, design, development, and marketing of high-performance reconfigurable function and application specific semiconductor products and technology. It also provides design support and design services.

ITC has developed a field-programmable, in-system reconfigurable architecture that efficiently addresses the need for high performance arithmetic datapath functionality required to accelerate data stream algorithms for image processing in video editing, digital still cameras, broadcast video, pattern recognition, medical instrumentation, and virtual reality. Other applications for the company’s products include robotics, communications, satellites, data storage, and military equipment.

Management

Tim Smith Chairman and Chief Executive Officer Lavelle Gibson President and Chief Operating Officer Art Berger Chief Financial Officer Glen Haas, Jr. Vice President, Engineering Robert L. (Les) Veal Vice President, Marketing and Sales George Landers Vice President, RAD Technology

Products and Processes

ITC’s products and services include: reconfigurable arithmetic datapath (RAD™) IC products, which are essentially reconfigurable coprocessors; technology license agreements for programmable logic, reconfigurable arithmetic datapath, and digital signal processing architectures; ASIC design services, including custom macrocell development; and software development services.

2-217 Infinite Technology North American Company Profiles

ITC’s RAD5A4 device features four 100MHz 16-bit MacroSequencer processors, a built-in dual PLA, and five data buses. The RAD5A4 offers concurrent parallel processing performance (up to 3.2 billion operations per second) when integrated into system solution as a coprocessor.

The company’s ASIC design services provide custom development of ICs and design cell libraries specializing in digital, analog, and mixed-signal devices, as well as memories. Design libraries include a range of custom I/Os (including SCSI, ultra SCSI AGP and PCI), dense RAMs, PLLs, oscillators, and high-speed multipliers.

The company also offers its RADcore(™) technology to implement high-performance hard datapath core for complex system-level ASICs. The RADcore datapath generator core requires no synthesis, is software configurable, and can be integrated with popular microprocessor cores. The RADcore coprocessor core can also be used to design custom DSP ICs.

ITC has a broad semiconductor process experience base and recently has implemented circuit designs ranging in CMOS process feature sizes from 0.6µm down to 0.18µm.

Infinite Technology also functions as the U.S. distributor for Nippon Precision Circuits and has a close relationship with the Japanese company involving technology and design.

Semiconductor Fabrication Facilities

ITC’s RAD devices are manufactured by TSMC through Nippon Precision Circuits.

2-218 North American Company Profiles Integraphics Systems

INTEGRAPHICS SYSTEMS, INC. (IGS)

Integraphics Systems, Inc. (IGS) 4001 Burton Drive Santa Clara, CA 95054 Telephone: (408) 982-8588 Fax: (408) 982-8591 Web Site: www.webpr.com/igs.htm Email: [email protected]

Fabless IC Supplier

Regional Sales Office

Taiwan: IGS Taiwan • Taipei, Taiwan Telephone: (886) (2) 738-3040 • Fax: (886) (2) 378-1833

Financial History

IGS is an independent, privately-held U.S. company with 1996 estimated sales in the $2.5 million to $5 million range.

Company Overview and Strategy

Integraphics Systems, Inc. (IGS) was founded in 1993, by J.C. Kuo and Yee Wong. IGS’ first product, the IGA 1680, was a 128/64-bit GUI accelerator developed using the company’s expertise in mixed-signal multimedia video and graphics technology.

IGS’ strategy is to be a major supplier of Multimedia Accelerator chips for both the desktop and notebook 2D and 3D markets. IGS plans to later become a leader in the emerging PC Appliance and Media Processor markets. IGS’ customers include systems builders and providers of board-level products used in multimedia applications.

IGS sells through distributors in the PRC, Hong Kong, Korea and Singapore, as well as Premier Technical Sales (Santa Clara, CA) for U.S. markets. IGS plans to expand in Europe and the ROW.

Products and Processes

IGS’ 168X series products include graphics and video accelerators, and the recently announced Cyber2000 extends the IGS’s multimedia capabilities to include an integral TV encoder for enhanced PC-based videoconferencing solutions. The current production IGA1682 is a 128/64-bit video graphics accelerator chip designed to support a variety of display screen resolutions, including 1280 x 1024 pixel screens with 24/32-bit color images, and to handle mixed color depths of graphics and video.

2-219 Integraphics Systems North American Company Profiles

IGS claims that Cyber2000 is the first accelerator chip incorporating a TV encoder; it’s volume priced at under $10 and is targeted at OEMs. The Cyber2000’s TrueTV proprietary technology enables viewing of output on a TV screen from both desktop PCs and networked computers.

IGS is a fabless supplier using “volume production/volume pricing” fab facilities in Asia.

Management

Kenny Liu President and Chief Executive Officer J.C. Kuo Vice President, Engineering Yee Wong Vice President, Operations Mike Raghavan Senior Marketing Director

Key Agreements

• IGS has an alliance with an unnamed major consumer electronics company to jointly develop a series of multimedia accelerator chips for the notebook market. They are also working together to develop media processor products for the PC market. IGS is also pursuing other alliances for “mainstreaming digital and analog videoconferencing solutions on the PC.”

2-220 North American Company Profiles Integrated Silicon Solution

INTEGRATED SILICON SOLUTION (ISSI)

Integrated Silicon Solution Inc. 2231 Lawson Lane Santa Clara, California 95054 Telephone: (408) 588-0800 Fax: (408) 588-0806 Web Site: www.issiusa.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: ISSI Europe • Planegg, Germany Telephone: (49) (89) 899-30193 • Fax: (49) (89) 899-0399

Taiwan: ISSI Taiwan • , Taiwan – Engineering Design and Sales Telephone: (886) (2) 397-9070 • Fax: (886) (2) 394-4024

China: ISSI China • Suzhou City, Jiangsu Telephone: 86 727 250384 • Fax: 86 727 250536

Hong Kong: ISSI Hong Kong, Ltd. Telephone: 85 22 319 2212 • Fax: 85 22 319 2004

Financial History ($M), Fiscal Year Ends September 30

1992 1993 1994 1995 1996 1997 Sales 29 53 61 123 132 108

Net Income 1 6 5 30 1 (8) R&D Expenditures 3 6 9 15 21 26

Employees — 190 228 311 385 450

Ownership: Publicly held. NASDAQ: ISSI.

Company Overview and Strategy

Integrated Silicon Solution, Inc. (ISSI) designs and markets high-performance SRAM and non-volatile memory ICs. The company’s initial development efforts were focused on high-performance SRAMs for Cache memory applications and introduced its first SRAM products in 1990. ISSI has since expanded its product offerings to include high-speed EPROMs, serial EEPROMs, and flash memory devices. Its markets also include networking applications, telecommunications, office automation, instrumentation, and consumer markets.

2-221 Integrated Silicon Solution North American Company Profiles

To date, SRAM sales have accounted for substantially all of ISSI’s product sales. In an effort to reduce its dependency on the memory market, ISSI entered the microcontroller market in early 1997 with the introduction of a microcontroller family.

Management

Jimmy S.M. Lee Chairman, President, and Chief Executive Officer Gary L. Fischer Executive Vice President, Finance and Administration, and Chief Financial Officer Kong-Yeu Han Executive Vice President and General Manager, ISSI-Taiwan Robert G. Cushman Vice President, Corporate Marketing Thomas Doczy Vice President, Memory Division Robert Shen Vice President and General Manager, ISSI China Paul Song Vice President, Design Engineering John Unger Vice President, Quality and Reliability Chung Wang Vice President, Technology Development Bruce Campbell Vice President and General Manager, Embedded Specialty Products Lou Yang Vice President, Business Development Ronald Lam Vice President, GEM Microcontroller and Voice Products James Wang Vice President, SRAM and Embedded Memory Design Donald Trask Vice President, Sales

Products and Processes

ISSI designs and markets a family of high-performance SRAMs, as well as several families of non-volatile memory products, such as high-speed, high-density EPROMs, serial EEPROMs, and flash memories. In early 1997, ISSI introduced the first products in a new family of microcontrollers with integrated non-volatile memory. ISSI’s advanced design and process capability now produce standard devices operating in excess of 100MHz, and synchronous 3.3V products with clock access times exceeding 200MHz. 0.3 micron processes are currently in production. A 0.25 micron memory technology is scheduled for introduction the first half of 1998. Development work on 0.18 micron processes are also in the works.

2-222 North American Company Profiles Integrated Silicon Solution

SRAM Products • 5V SRAMs in 64K, 256K, 512K, and 1M density levels with access speeds as low as 10ns. • 3.3V SRAMs in 256K, 512K, and 1M density levels with access speeds as low as 12ns. • 3.3V 1M and 2M synchronous SRAMs with access speeds as low as 4ns for Pentium and PowerPC Cache applications.

Trail Blazer • ISSI’s Trailblazer is a 64K x 16 asynchronous CMOS SRAM with “Virtual Dual Port” architecture. Trailblazer provides high speeds needed by advanced DSPs and controllers. It is a versatile, cost effective, DSP system building block ideal for networking and telecommunications applications.

EPROM Products • 5V EPROMs in 256K, 512K, and 1M density levels with access speeds of 30ns to 90ns. • 3.3V EPROMs in 512K and 1M density levels with 90ns access times. • 2.4V voice EPROMs with embedded speech algorithm technology.

EEPROM Products • 3.3V and 5V serial EEPROMs in 1K, 2K, and 4K density levels.

Flash Memory Products • 1M Intel-compatible bulk-erase flash memories with access time of only 45ns. The company introduced a 2M bulk-erase and 1M, 2M, and 4M boot block flash chips in 1996. Concentrating in the 1Mbit through 4Mbit product area, ISSI’s Flash product line is expanding to include high-speed devices with both 12V and 5V programming voltages.

Microcontroller Products • The company offers variations on the industry-standard 8051 and 8031 8-bit MCUs with embedded ROM.

Other Products • ISSI entered the voice-chip market in 1996 with the introduction of a one-time programmable (OTP) voice-chip. The device features ADPCM compression and pop noise reduction. These devices, now supplemented with mask-programmable alternatives, store digitized sounds, and playback the recorded sound. An analog output signal can directly drive a speaker or buzzer. ISSI has also developed programming and editing tools for the voice-chip that provide users with complete turnkey record and playback capabilities. • ISSI offers 2-4Mbit DRAMs with access speeds from 35 to 60ns.

ISSI develops its advanced CMOS process technology in collaboration with its Asian manufacturing partners. Through these alliances, ISSI has jointly developed and taken into production six generations of CMOS memory technology with 1.2µm, 1.0µm, 0.8µm, 0.6µm, 0.5µm, and 0.35µm feature sizes. The company currently has several development programs with Taiwan Semiconductor Manufacturing Company (TSMC), including a program based on a 0.35µm design for advanced SRAM applications and a 0.5µm design for a high-speed flash memory product. ISSI is currently in the process of developing 0.3µm and 0.25µm SRAM processes.

2-223 Integrated Silicon Solution North American Company Profiles

The company also has collaborative programs with Chartered Semiconductor Manufacturing (CSM) in Singapore for 0.5µm SRAM process technology and with Belling Semiconductor in China for EEPROM design and process technology.

ISSI is undertaking efforts to diversify into other product areas such as NVM products, specialty DRAMs and embedded memories. If the market for SRAM products should decline and the company has not successfully diversified, such decline would have a material adverse affect on the company’s financial performance.

Semiconductor Fabrication Facilities

ISSI’s principal manufacturing partner is TSMC, with whom it also jointly develops process technology. Since 1993, ISSI has also used Chartered as a foundry for some SRAM and flash products.

In addition to securing capacity with independent foundries, ISSI has invested in several joint venture agreements, further guaranteeing capacity. In June 1996, ISSI entered into a joint venture with TSMC, along with Altera, Analog Devices, and other investors, to create a wafer fabrication facility, called WaferTech LLC, to be located in Camas, Washington which will be a leading edge fab focusing on 0.3 and 0.25 micron process technology. ISSI also has a similar agreement with United Microelectronics Corporation (UMC), located in Taiwan, for additional supply of wafers (see Key Agreements below).

ISSI has agreed to certain minimum wafer purchase commitments with its foundry partners in exchange for wafer capacity commitments. The company also agreed to make certain annual payments to TSMC for capacity increases. Additional required payments to TSMC totaling approximately $26.4M over the next four years represent annual increases in capacity which must be purchased by the company. ISSI also has minimum purchase obligations for its joint ventures with UMC and WaferTech LLC.

Key Agreements

• In November of 1997, ISSI announced that it had entered into an agreement to acquire Nexcom Technology, Inc., a Flash development company in Sunnyvale, CA. Nexcom, a seven year old private company, has developed several important patents in EEPROM/Flash memory cell and design technology and has a total of thirteen patents issued as of 1997. Their development has focused on low power, low voltage, high-speed, high-density Flash memory for both stand-alone and embedded memory applications using innovative process and design techniques.

• In July 1996, ISSI signed a manufacturing and joint venture agreement with TSMC, along with other investors. The agreement calls for ISSI to receive a minimum wafer capacity from TSMC in return for a four percent equity stake in the new venture. Construction of WaferTech LLC began in June 1996, with production expected to start in 2H98 (see separate profile of TSMC).

2-224 North American Company Profiles Integrated Silicon Solution

• In early 1996, ISSI announced an agreement with Intel. ISSI licensed flash-related patents from Intel and will pay royalty fees to Intel for the revenues generated from certain flash-based products.

• In fiscal 1995, ISSI and UMC signed a manufacturing and joint venture agreement. Under terms of the agreement, ISSI agreed to invest $30 million for an equity stake in a joint manufacturing venture (UICC) that will provide ISSI with an additional supply of wafers beginning in 2H97.

2-225 Integrated Technology Express North American Company Profiles

INTEGRATED TECHNOLOGY EXPRESS, INC.

Integrated Technology Express, Inc. 2710 Walsh Ave. Santa Clara, California 95051 Telephone: (408) 980-8168 Fax: (408) 980-9232 Web Site: www.iteusa.com

Fabless IC Supplier Founded: 1995

Regional Offices/Representative Regions

Asia: Integrated Technology Express, Inc. (Subsidiary) • Hsin-Chu City, Taiwan Telephone: (03) 579-8658 • Fax: (03) 579-4803

Integrated Technology Express, Inc. • Taipei, Taiwan Telephone: (02) 707-9589 • Fax: (02) 703-8389

Financial History ($M)

1995 1996 1997 1998 Sales 1.3 19 39 60

Employees — — 180 145

Company Overview and Strategy

Integrated Technology Express, Inc. (ITE) is dedicated to the design, development, engineering and marketing of advanced computer and communications IC products. ITE serves customers worldwide, including several major PC manufacturers.

In 1996, the Company shipped 16.8 million pieces of Super I/O (input/output) controllers around the world, representing approximately 25 percent of the world’s Super I/O consumption.

2-226 North American Company Profiles Integrated Technology Express

Management

Daniel Chen Chairman, President and Chief Executive Officer Young Liu Senior Vice President Vincent Hu Vice President, Research & Development Operation Victor Lee Vice President, Sales and Marketing, USA Steven Huang Vice President, Marketing & System Integrator Operation

Products and Processes

ITE’s products are centered around three divisions - Peripheral, Portable, and Mixed-Signal Products. The Peripheral product division designs and markets peripheral I/O controllers and USB (Universal Serial Bus) controllers for personal computers. The portable products group designs and markets PC core logic chipsets for notebooks and HPCs (Hand-held PCs) and chipsets for RISC based CPU platforms. The Mixed-Signal product division develops a series of Internet communications and analog interface ICs.

ITE’s product designs include the following.

• The First Windows CE Intelligent Peripheral Controller (IPC); • Peripheral I/P circuits, including Super I/O, PCI I/O and FIR (fast infrared); • Universal Serial Bus and Firewire (IEEE 1394) technologies; • PC core logic; • Power Management Units for portable and hand-held PCs; • Complete docking and peripheral solutions (Card Bus, PCMCIA) for mobile applications; • Ethernet and fax modem; • Embedded DRAM; • LCD controller; • Sigma-Delta Codec (encoder, decoder); • ADSL (Asymmetric Digital Subscriber Line); and • DSP (Digital Signal Processing).

Key Agreements

• In 1996, Integrated Technology Inc. acquired the Computer Products Division of United Microelectronics Corporation and established its Taiwan subsidiary. This alliance provided access to PC core technologies, and markets.

2-227 Integrated Telecom Technology North American Company Profiles

INTEGRATED TELECOM TECHNOLOGY (Acquired by PMC-Sierra, Inc.)

Integrated Telecom Technology, Inc. 18310 Montgomery Village Avenue, Suite 300 Gaithersburg, Maryland 20879 Telephone: (301) 990-9890 Fax: (301) 990-9893 Web Site: www.igt.com

Fabless IC Supplier

Company Overview and Strategy

Integrated Telecom Technology, Inc. (IgT) provides high performance, system-level integrated circuits for asynchronous transfer mode (ATM) and local area network (LAN) switching technologies.

The company was founded in 1991 with a focus on high-speed telecom and datacom integrated circuits.

Integrated Telecom is a fabless semiconductor company that has developed partnerships with subcontractors and foundry services. Presently LSI Logic Corporation and SMOS provide foundry services at 0.8 micron, 0.65 micron, and 0.5 micron.

IgT is ISO 9001 certified.

Noteworthy News

• On May 20,1998, PMC-Sierra, Inc. announced the completion of the acquisition of Integrated Telecom Technology, Inc.

2-228 North American Company Profiles Intel

INTEL

Intel Corporation Robert Noyce Building 2200 Mission College Boulevard P.O. Box 58119 Santa Clara, California 95052-8119 Telephone: (408) 765-8080 Fax: (408) 765-1821 Web Site: www.intel.com

IC Manufacturer

(See Top Ten)

2-229 InterFET Corporation North American Company Profiles

INTERFET CORPORATION

InterFET Corporation 1000 N. Shilo Road Garland, TX 75046-9013 Telephone: (972) 487-1287 Fax: (972) 276-3375 Web Site: www.interfet.com Email: [email protected]

Discrete Semiconductor and IC Manufacturer

Ownership: Privately held.

Company Overview and Strategy

InterFET is a 15 year old company which manufactures discrete Junction Field Effect Transistors, and custom integrated circuits. The company headquarters and manufacturing facilities are located at the above address.

InterFET’s offices and plant are approximately 30,000 square feet. The wafer fabrication area includes 2,000 square feet of cleanroom space. Hermitic assembly occupies approximately 8,000 square feet. The wafer probe and final testing is performed on-site. Subcontract manufacturing for plastic encapsulated devices is performed in Malaysia.

2-230 North American Company Profiles International Rectifier

INTERNATIONAL RECTIFIER (IR)

International Rectifier Corporation 233 Kansas Street El Segundo, California 90245 Telephone: (310) 322-3331 Fax: (310) 322-3332 Web Site: www.irf.com Email: [email protected]

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: International Rectifier Far East Co., Ltd. • Toshima-ku, Tokyo, Japan Telephone: (81) (3) 3983-0641 • Fax: (81) (3) 3983-0642

Europe: International Rectifier Company (Great Britain) Ltd. • Oxted, Surrey, United Kingdom Telephone: (44) (1883) 732020 • Fax: (44) (1883) 733410

Financial History ($M), Fiscal Year Ends June 30

1992 1993 1994 1995 1996 1997 1998 Sales 265 282 329 429 577 486 552 IC Sales* 15 17 22 29 40 48 — Net Income 9 (3) 16 39 66 (43) 16.5 R&D Expenditures 9 14 16 20 27 35 39 Capital Expenditures 35 17 25 107 112 99 90

Employees 3,000 2,700 3,100 3,310 3,915 3,500 3,240

*Calendar year

Ownership: Publicly held. NYSE: IRF.

Company Overview and Strategy

International Rectifier (IR) was founded in 1947, and is today a major worldwide manufacturer of power semiconductors with applications in the automotive, consumer electronics, computer and communications, industrial lighting, and government/space markets.

2-231 International Rectifier North American Company Profiles

The company's growth products recently have been HEXFET® power MOSFETs, insulated gate bipolar transistors (IGBTs), control ICs, and high-performance diodes. In control ICs, new development efforts concentrate on devices tailored to specific applications. New control ICs are tuned to specific power levels, features, and circuit topologies in motor control, lighting, and power supply applications. IR’s focus is in the area of “solution” products that combine multiple components and technologies to benefit the customers’ overall circuit size, cost, and performance.

Management

Eric Lidow Chairman and Co-Founder Alexander Lidow Co-Chief Executive Officer Derek B. Lidow Co-Chief Executive Officer Robert J. Mueller Executive Vice President, Worldwide Sales and External Affairs Michael P. McGee Chief Financial Officer

Products and Processes

IR manufactures power semiconductors, including HEXFET power MOSFETs, IGBTs, high-voltage control ICs, diodes, rectifiers, thyristors, and standard and custom power modules.

IR’s high-voltage control ICs combine power MOSFETs with analog and digital control circuitry on a single chip. The company has instituted several development initiatives aimed at creating integrated chipsets for common power conversion applications including power supplies, motor controls, lighting ballasts, solenoid drivers, welding equipment, telecom switches, computer peripherals, instrumentation and test equipment, and compact fluorescent light bulbs.

In late 1995, IR introduced its next-generation manufacturing technology, a four-step mask, low-voltage process called Gen5. By the end of fiscal 1996, IR had over 200 Gen5 HEXFET devices in volume production.

In 1997, IR introduced a 1,200 volt integrated circuit, which is intended to bring major design and cost benefits to the industrial electronics marketplace. IR leveraged this 1,200 volt IC in their second generation of motor control solutions, called PowIRTrain™ products. Their Generation4 IGBTs are a broad-line family of transistors for medium- to high-power applications.

2-232 North American Company Profiles International Rectifier

Semiconductor Fabrication Facilities

International Rectifier International Rectifier (HEXFET America) 233 Kansas Street 41915 Business Park Drive El Segundo, California 90245 Temecula, California 92590 Telephone: (310) 322-3331 Telephone: (714) 676-7500 Capacity (wafers/week): 3,250 Cleanroom size: 45,000 square feet Wafer size: 100mm Capacity (wafers/week): 13,100 Processes: CMOS, BCDMOS Wafer sizes: 125mm, 150mm Products: Discretes, power ICs Processes: CMOS, BCDMOS Feature size: 5.0µm Products: Discretes, power ICs Feature sizes: 1.0µm-5.0µm

International Rectifier Corporation Italiana, S.P.A. Via Privata Liguria 49 10071 Borgoro, Turin, Italy Telephone: (39) (11) 470-14-84 Capacity (wafers/week): 6,250 Wafer size: 100mm Products: Discretes

Discrete Components and Packaging Sites

Rectificadores Internacionales S.A. de C.V. International Rectifier Company 9234 Prolongación Ave. (Great Britain) Ltd. Los Cabos Hurst Green Oxted Parque Industrial Pacifico Surrey RH89BB, England Tijuana B.B. Mexico Size: 70,000 square feet Size: 150,000 square feet No. of employees: 425 No. of employees: 1,850 Certifications: ISO-9001 certified Certifications: ISO-9001, QS9000 certified Manufacture: Discrete components and packaging Manufacture: Discrete components and packaging

Key Agreements

• In September 1998, International Rectifier announced the building of an assembly plant in Wales to meet demand for its proprietary motion and power control modules.

The plant, located on 20 acres in an industrial park near Sulansea Wales, will be designed to generate approximately $300 Million of annual revenue at full capacity.

The plant is expected to employ 500 people at full capacity. Ground-breaking is scheduled for the fourth quarter of 1998, and IR expects to occupy the plant by mid-summer 1999.

• International Rectifier signed a cross-licensing and alternate-source agreement with Motorola covering power ICs and power discretes.

2-233 ISD North American Company Profiles

INFORMATION STORAGE DEVICES (ISD)

Information Storage Devices, Inc. 2045 Hamilton Avenue San Jose, California 95125 Telephone: (408) 369-2400 Fax: (408) 369-2422 Web Site: www.isd.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 5 23 39 55 41 48 Net Income (3) — 4 6 (9) (13.5) R&D Expenditures 1 2 3 7 12 11

Employees — — 70 122 134 180

Ownership: Publicly held. NYSE: ISDI.

Company Overview and Strategy

Information Storage Devices, Inc. (ISD) designs, develops, and markets integrated circuits for voice recording and playback using the company’s proprietary ChipCorder® storage technology. The company’s ChipCorder® products are targeted at the consumer, communications, and industrial market segments.

In 1991, ISD introduced its first commercially available products — non-volatile chips that store analog signals in analog form. From its inception in December 1987, ISD's charter has been to develop such devices for storage of voice, music, and other forms of analog information on a single chip.

In early 1997, ISD purchased National’s CompactSPEECH™ processor product line. The purchase enables ISD to add long duration record and playback chips to its ChipCorder® product line. The CompactSpeech™ product line includes a family of RISC-based speech processors that feature advanced DSP technology designed for voice applications in the communications market.

ISD's storage technology is adaptable to a variety of small form factor applications, such as hand-held products, alarms, answering machines, cellular phones, greeting cards, and implantable medical devices. The firm's original chips were capable of storing up to 20 seconds of information. However, ISD’s newest devices are able to store up to eight minutes of information. The company has received twenty-six patents with several others pending.

ISD became a public company in February 1995.

2-234 North American Company Profiles ISD

Management

David L. Angel Chairman and Chief Executive Officer Eric J. Ochiltree President and Chief Operating Officer Karin Bootsma Vice President, Marketing James Brennan Vice President, Technology and Advanced Development Michael Geilhufe Vice President, Business Development Paul Ross Hayden Vice President, Sales Carl R. Palmer Vice President, Engineering Felix J. Rosengarten Vice President, Finance and Administration, and Chief Financial Officer Al Woodhull Vice President, Manufacturing

Products and Processes

ISD's ChipCorder® products are solid-state memory devices based on flash technology that store analog signals in a multilevel format. The company currently offers nine product families incorporating its ChipCorder® technology. All of the company’s ChipCorder® products feature an on-chip oscillator, microphone preamplifier, automatic gain control, anti-aliasing filter, smoothing filter, and speaker amplifier. The devices are being built using 0.8µm CMOS technology.

The CompactSPEECH™ product line offers a family of advanced digital speech processors for telecommunications and consumer voice applications, including answering machines, cordless phones, feature phones, and digital voice recorders. Featuring advanced digital signal processing (DSP) technology, high quality speech compression algorithms and flash memory management technology, CompactSPEECH™ speech processors offer customers a long duration voice recording and playback and an array of digital features like multi- country caller ID and full-duplex speakerphone capabilities. The powerful synergy between CompactSPEECH™ digital speech processing technology and ISD’s multi-level storage technology is expected to lead to an integration of these two technologies, enabling ISD to deliver the best of both worlds — unique, flash message management, nonvolatile memory, and other innovative features at attractive price/performance points.

Semiconductor Fabrication Facilities

ISD currently has foundry agreements with Rohm, Samsung, Tower, and Winbond.

2-235 IXYS North American Company Profiles

IXYS

IXYS Corporation 3540 Bassett Street Santa Clara, California 95054 Telephone: (408) 435-1900 Fax: (408) 435-0670 Web Site: www.ixys.com

Fabless IC Supplier

Ownership: Privately held.

Company Overview and Strategy

IXYS Corporation designs, develops, and markets a broad spectrum of power semiconductors, integrated circuits, and modules for the global power market. IXYS products are incorporated into various industrial, commercial, and military systems.

Founded in 1983, IXYS has been an innovator in power MOS semiconductor products and technologies since its inception. However, it has differentiated itself by focusing on the higher voltage and higher power end of the MOSFET and IGBT spectrum. The company's strategy is to provide cost-effective systems solutions for its target markets. To that end, it provides several lines of low-cost chipsets for various applications.

In April 1989, IXYS acquired the Asea Brown Boveri (ABB) power semiconductor operation in Lampertheim, Germany. Now called IXYS Semiconductor GmbH, the firm is recognized for pioneering direct copper bonding-to- ceramic packaging technology and provides IXYS with a strong foothold in the European market.

Management

Nathan Zommer, Ph.D. President and Chief Executive Officer Peter Ingram Managing Director, IXYS Semiconductor GmbH Arnold Agbayani Vice President, Finance Rich Fassler Vice President, Sales and Marketing

Products and Processes

The IGBT discrete and IGBT module product lines are the company's flagship products. They are targeted at the AC motor drive market first and at electric vehicles for the long-term market.

2-236 North American Company Profiles IXYS

IXYS's key product lines include:

Modules • IGBT modules • High current thyristor and rectifier modules • Rectifier bridges • Custom (customer-specific) power modules

Discretes • Ultra-fast and short circuit-rated IGBTs • MegaMOSFET™ devices • HiPer FET™ power MOSFETs • High-voltage BiMOSFET™ devices •Ultra-fast recovery epitaxial diodes (FREDs) • High-current rectifiers and switching current regulators • High-power thyristors and rectifiers • Schottky rectifiers

Smart Power ICs • High-voltage current regulators • Half-bridge (high side/low side) smart power ICs • Pulse width modulation controllers

Direct Copper Bond (DCB) Ceramic Substrates

For the design of its products, IXYS uses a proprietary HDMOS (high performance DMOS) technology, which is compatible with standard bulk CMOS.

Semiconductor Fabrication Facilities

The company’s semiconductor products are fabricated at their Germany facility and in external wafer fabrication facilities through technology and foundry relationships with a number of semiconductor companies throughout the world.

2-237 Lansdale Semiconductor North American Company Profiles

LANSDALE SEMICONDUCTOR

Lansdale Semiconductor, Inc. 2502 West Huntington Drive Tempe, Arizona 85282 Telephone: (602) 438-0123 Fax: (602) 438-0138 Web Site: http://lansdale.com/~lansdale

IC Manufacturer

Employees: 50

Ownership: Privately held.

Company Overview and Strategy

Founded in 1964, Lansdale Semiconductor is a semiconductor lifecycle extender dedicated to manufacturing past and present technologies as long as the market requires them. The privately-held company is a strategic resource for critical military programs, telecommunications systems, and semiconductor OEMs wishing to offer their products longer than the normal lifecycle dictates.

The company purchases lines as they are discontinued by large semiconductor companies such as Intel, Signetics, Harris, National, and Motorola. It actively seeks new product licenses from semiconductor manufacturers as part of its niche strategy and supports OEM semiconductor companies by manufacturing wafers on a foundry basis to extend their product lifecycles.

Military weapons systems typically operate for approximately 25 years while the commercial lifecycle of a semiconductor chip is about seven years. Lansdale manufactures and supports these products on a continuing basis making it possible to extend the lifecycles of the system and its products.

Management

R. Dale Lillard Owner and President

Products and Processes

Lansdale's current product lines (about 2,600 parts) include NMOS 8-bit MPUs and bipolar general purpose logic, MPU, SRAM, PROM, and linear ICs, as well as bipolar full custom devices.

2-238 North American Company Profiles Lansdale Semiconductor

Original Manufacturer Product Line AMD Digital Bipolar ICs Raytheon DTL 200 Series ICs Signetics DTL, TTL ICs, 54LS, 82S, 54S, 54H, LSI, 8X Motorola SUHL ICs, 5400 TTL, 3000 TTL, 900 DTE, RTL, Linear Harris 0512 Bipolar PROMs, 7600 Bipolar PROMs/Diode Matrices National PMOS ICs Intel 8080A and peripherals, 828x Peripherals

Semiconductor Fabrication Facilities

Lansdale Semiconductor, Inc. 2502 West Huntington Drive Tempe, Arizona 85282 Cleanroom size: 10,000 square feet (Class 100) Capacity (wafers/week): 2,000 Wafer sizes: 100mm, 3 in. Processes: Bipolar, LS, Linear, TTL Products: Foundry service, bipolar ICs Feature size: 3µm, two-layer metal

2-239 North American Company Profiles

LATTICE SEMICONDUCTOR

Lattice Semiconductor Corporation 5555 Northeast Moore Court Hillsboro, Oregon 97124-6421 Telephone: (503) 681-0118 Fax: (503) 681-0347 Web Site: www.latticesemi.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Lattice Semiconductor K.K. • Taito-Ku, Tokyo, Japan Telephone: (81) (3) 5820-3533 • Fax: (81) (3) 5820-3531

Europe: Lattice Semiconductor Ltd. • Waybridge, Surrey, United Kingdom Telephone: (44) (1932) 831180 • Fax: (44) (1932) 831181

Asia-Pacific: Lattice Semiconductor Asia, Ltd. • Kowloon, Hong Kong Telephone: (852) 2319-2929 • Fax: (852) 2319-2750

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 103 126 144 198 204 246 Net Income 17 22 27 42 45 57 R&D Expenditures 17 21 23 27 28 32

Employees 352 394 438 450 500 570

Ownership: Publicly held. NASDAQ: LSCC.

Company Overview and Strategy

Lattice Semiconductor, founded in 1983, is a leader in the design, development, and marketing of high-density and low-density programmable logic devices (PLDs) and related software development systems. Its proprietary (GAL®), pLSI®, and ispLSI® devices are sold worldwide, primarily to OEMs in the fields of communications, industrial control, and military systems. In 1992, the company pioneered the development of a family of in-system programmable products called Lattice ISP. Lattice ISP products give customers the ability to program a PLD without removing it from the circuit board, subsequently increasing the PLD’s flexibility. ISP products have emerged as the de facto standard in the high density PLD market, and Lattice holds the number one market position for ISP PLDs. Its product line encompasses more than 30 ISP logic devices and a broad range of design software tools to support them.

2-240 North American Company Profiles Lattice Semiconductor

Lattice's strategy is to offer a full line of high-performance in-system programmable devices based on innovative architectures. The company supports its products with sophisticated logic development tools providing high functionality at low cost that can be easily adopted and fully integrated with common third-party CAE development systems.

International sales represented 49 percent of the company’s total sales in fiscal 1997.

Management

Cyrus Y. Tsui Chairman, President, and Chief Executive Officer Steven A. Laub Senior Vice President and Chief Operating Officer Steven A. Skaggs Senior Vice President, Chief Financial Officer, and Secretary Jonathan K. Yu Corporate Vice President, Business Development Martin R. Baker Vice President and General Counsel Randy D. Baker Vice President, Manufacturing Albert L. Chan Vice President, California Product Development Stephen M. Donovan Vice President, International Sales Paul T. Kollar Vice President, Sales Rodney F. Sloss Vice President, Finance Kenneth K. Yu Vice President and Managing Director, Lattice Asia

Products and Processes

Lattice entered the high-density complex PLD (CPLD) market in 1992 and currently offers four families of ispLSI® products. The ispLSI® 1000E family incorporates familiar GAL-like logic building blocks and offers performance up to 125MHz (7.5ns) and densities of 2,000 to 8,000 gates. The ispLSI® 2000 family provides speeds of up to 180MHz (5.0ns) and 3.3V and 5V operating voltages and densities from 1,000 to 6,000 gates. The ispLSI® 3000 family offers densities of 7,000 to 20,000 gates, while retaining performance up to 125MHz (7.5ns). The ispLSI® 6000 family extends the company’s CPLD density range to 25,000 gates and enables integration of complete logic subsystems. The family utilizes an innovative cell-based architecture that combines a general-purpose high- density CPLD with memory and other function specific circuit blocks.

Lattice offers one of the industry’s highest performance and broadest lines of low density CMOS PLDs. The company sells GAL16V8, GAL20V8, GAL22V10, GAL20RA10, and GAL20XV10 architectures in a variety of speed grades (as fast as 3.5ns), with 5V or 3.3V signal compatibility. Lattice also offers several proprietary architectures, the GAL26CV12, GAL18V10, GAL16VP8, GAL20VP8, and GAL6001/2, each of which is optimized for specific applications. In 1994, the company extended its GAL line by introducing the ispGAL22V10, bringing the advantages of in-system programmability to the low density market. In January 1998, it introduced the industry’s only 3.3V ISP GAL, the ispGAL22LV10.

In April 1997, Lattice unveiled its ispGDX™ product family designed primarily for routing applications. According to the company there is no control logic on the chips, allowing them to operate faster than conventional PLDs. The family includes four devices with 64, 80, 120, and 160 programmable I/Os, with input-to-output delays of 5ns, clock-to-output delays of 5ns, and operating frequencies of 111MHz.

2-241 Lattice Semiconductor North American Company Profiles

Lattice also offers its ispGDS™ (Generic Digital Switch) family of in-system programmable switching matrices targeted at mechanical dip switch replacement and connectivity applications.

The company's products are based on a proprietary EECMOS process technology, called UltraMOS®. The current mainstream processes, UltraMOS V (0.65µm) and UltraMOS VI (0.5µm) are advanced double-metal CMOS technologies.

Semiconductor Fabrication Facilities

Most Lattice Semiconductor products are produced by Seiko-Epson in Japan. In 1994, Lattice advanced to Seiko-Epson $42 million for the expansion of Seiko’s submicron wafer fab in Sakata, Japan. The investment will provide Lattice with additional submicron manufacturing capacity through 1997. The foundry relationship between Lattice and Seiko-Epson was further strengthened in early 1997. As part of their latest agreement, Lattice agreed to invest up to $150 million in Seiko-Epson’s Sakata, Japan, wafer fab facility in exchange for a production line dedicated to Lattice.

Lattice added Taiwan’s United Microelectronics Corporation (UMC) as a foundry partner in 1995. In October 1995, Lattice said it would invest $60 million over a two and a half year period for a 10 percent equity stake in one of UMC’s joint-venture fabs that will come on-line in mid-1997. Production is now expected to begin 1Q99. Additionally, UMC agreed to provide Lattice with interim wafer capacity from one of its existing fabs.

In December 1996, Lattice secured additional future capacity by signing a foundry and technology development agreement with Taiwan-based Holtek Microelectronics (see Key Agreements below).

Key Agreements

• Lattice signed a foundry and technology agreement with Holtek Microelectronics in December 1996. Under the agreement, Lattice will make an equity investment in Holtek’s 200mm wafer facility that is currently under construction in Taiwan. In return, Holtek will provide Lattice with foundry capacity from the facility. Additionally, Holtek plans to develop non-volatile memory products for Lattice.

• Lattice entered into a joint venture with UMC and other US-based fabless IC companies. Lattice will invest $60 million to gain a 10 percent equity stake in a new joint-venture wafer fab UMC is building in Taiwan. The joint venture fab, called United Integrated Circuits Corporation (UICC), is expected to begin production in 1Q99.

• In 1994, Lattice signed a production agreement with Seiko-Epson. As part of the agreement, Lattice advanced Seiko $42 million to finance additional submicron wafer capacity at its fab in Sakata, Japan. In 1995, Lattice invested an additional $2 million for the development of submicron process technology. In early 1997, Lattice signed an agreement to advance up to $150 million to Seiko-Epson, in return for a dedicated production line in Seiko-Epson’s Sakata wafer fab.

• Lattice has a cross-licensing agreement with AMD under which patents for AMD's PALs have been exchanged for Lattice's GAL patents.

2-242 North American Company Profiles Level One Communications

LEVEL ONE COMMUNICATIONS

Level One Communications Inc. 9750 Goethe Road Sacramento, California 95827 Telephone: (916) 855-5000 Fax: (916) 854-1101 Web Site: www.level1.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 14 26 47 78 112 156.3 Net Income 2 4 8 10 13 19 R&D Expenditures 3 6 10 17 22 30

Employees 70 139 221 300 408 550

Company Overview and Strategy

Level One Communications, Inc., (NASDAQ: LEVL) founded in 1985, is a leading supplier of “Silicon Connectivity Solutions.” The company provides mixed-signal integrated circuit solutions for high-speed digital signal telecom and networking applications. The company name “Level One” refers to the company’s initial focus on the physical layer, “layer one,” of the seven layer network model developed by the International Standards Organization (ISO).

The company specializes in the development of ASSPs and custom derivatives, such as transceivers, repeaters, and related devices used in two key areas of the telecommunications and data communications industry: interface solutions for digital transmission systems; and local and wide area networking (LAN/WAN) solutions, including Ethernet LAN, datacom, and digital modems. Most of Level One’s ICs feature complex functions incorporated on a single silicon chip for applications formerly requiring multiple chips.

In June 1995, the company acquired San Francisco Telecom, which operates as a wholly owned subsidiary and develops products for the SONET/SDH, wireless, and cable modem communications markets. In 4Q96, Level One acquired Silicon Design Experts Inc. (SDE) to accelerate its development of Gigabit Ethernet and xDSL products.

2-243 Level One Communications North American Company Profiles

Management

Robert D. Pepper, Ph.D. Chairman, President, and Chief Executive Officer Mike Wodopian Vice President, Business Development John Kehoe Vice President, Finance and Chief Financial Officer Daniel S. Koellen Vice President, Quality and Reliability Assurance Manuel Yuen Vice President, Operations

Products and Processes

Level One’s semiconductor products include T1/E1 transceivers, receivers, repeaters, and clock adapters; digital subscriber line (DSL) chipsets; PDM multiplexers; and Ethernet transceivers and repeaters.

Semiconductor Fabrication Facilities

Level One utilizes several foundries in the U.S., Europe, and the Far East for the fabrication of its ICs, but does all its chip testing in-house.

Key Agreements

• In 1995, Level One entered into a technology agreement with Maker Communications Inc. for the development of asynchronous transfer mode (ATM) products.

2-244 North American Company Profiles LightSpeed Semiconductor

LIGHTSPEED SEMICONDUCTOR

LightSpeed Semiconductor Corporation 1151 Sonora Court Sunnyvale, California 94086 Telephone: (408) 616-3200

Fabless IC Supplier Founded: 1995

Regional Offices/Representative Locations

North America: Breakthru Communications • San Jose, California Telephone: (408) 777-9364

Employees: 25

Ownership: Privately held – Mohr Davidow Ventures, U.S. Venture Partners, Mayfield Fund, InveStar Capital.

Company Overview and Strategy

LightSpeed Semiconductor Corporation was founded in 1995, to provide ASIC solutions that take a design from concept to full production. LightSpeed provides a new ASIC design solution using a Module Based Array architecture that targets the needs of the mainstream (1,000 to 100,000 devices per year) ASIC market. LightSpeed caters to ASIC customers.

Management

Jack Peckham President and Chief Executive Officer Bob Osann Chairman and Founder David P. Lautzenheiser Vice President of Marketing Dr. Shafy Eltoukhy Vice President of Technology Development Dr. Don MacMillen Vice President of Software Engineering Alan Swahn Vice President of Sales and Business Development

Products and Processes

Primary products include LightSpeed’s COMICÔ (Cycle Optimized Sea of Modules IC) devices manufactured on a 0.35µm process, ranging in size from 190,000 to more than 450,00 usable gates. LightSpeed’s unique Top MetalÔ technology enables low NREs and cuts production lead-time by eight weeks or more as compared with the conventional ASIC cycle time. LightSpeed devices can integrate user logic as well as a variety of memory requirements into a single device.

2-245 LightSpeed Semiconductor North American Company Profiles

Semiconductor Fabrication Facilities

LightSpeed is a fabless company. LightSpeed is partnered with Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) to ensure a high-quality, uninterrupted supply of semiconductor devices for their customers.

2-246 North American Company Profiles Linear Systems

LINEAR SYSTEMS

Linear Integrated Systems, Inc. 4042 Clipper Court Fremont, California 94538 Telephone: (510) 490-9160 Fax: (510) 353-0261

(Have Fab Capability)

Employees: 15

Ownership: Privately held.

Company Overview and Strategy

Linear Integrated Systems (LIS), a.k.a. Linear Systems, was formed in 1987 with the goal of establishing a market niche by taking advantage of refractory-metal interconnect technology. While in the past, most firms have stayed away from refractory metals and instead prefer to use CVD and silicon-gate technologies, many firms are now recognizing a need for metal gates as gate dimensions shrink to below .35 micron.

Linear Systems specializes in developing integrated circuits for applications in systems where obsolete devices or processes are no longer available or require upgrading. Existing IC products include operational amplifiers, voltage references, and multiplexers. Besides proprietary products, Linear Systems also supplies a broad range of second source and obsolete devices manufactured to customer's requirements.

In addition to semiconductor design and custom manufacturing services, state-of-the-art precision thin-film services are also offered.

Management

John H. Hall President Don Howland Manager, Eastern U.S. Marketing Paul Norton Manager, Western U.S. Marketing

Products and Processes

Linear Systems’ proprietary product line includes bipolar linear ICs (e.g., amplifiers, voltage references, multiplexers) and discretes, as well as full custom bipolar, CMOS, and BiCMOS ICs.

Using CMOS, bipolar, and dielectric isolation processes, Linear Systems offers a family of second-source products including multiplexers, monolithic dual N-channel JFETs, monolithic dual PNPs and NPNs, switches, and amplifiers.

2-247 Linear Technology North American Company Profiles

LINEAR TECHNOLOGY

Linear Technology Corporation 1630 McCarthy Boulevard Milpitas, California 95035-7487 Telephone: (408) 432-1900 Fax: (408) 434-0507 Web Site: www.linear-tech.com

IC Manufacturer Founded: 1981

Regional Offices/Representative Locations

Japan: Linear Technology K.K. • Shinjuku-ku, Tokyo, Japan Telephone: (81) (3) 3267-7891 • Fax: (81) (3) 3267-8570

Europe: Linear Technology SARL • Chantenay Malabry, France Telephone: (33) (1) 41-07-95-55 • Fax: (33) (1) 46-31-46-13

Asia-Pacific: Linear Technology Pte., Ltd. • Singapore Telephone: (65) 753-2692 • Fax: (65) 754-4133

Financial History ($M), Fiscal Year Ends June 30

1992 1993 1994 1995 1996 1997 1998 Sales 119 151 201 265 378 379 485 Net Income 25 36 57 85 134 134 181 R&D Expenditures 12 10 9 9 31 35 46 Capital Expenditures 10 8 16 22 70 22 24

Employees 800 870 1,000 1,350 1,650 1,790 2,155

Ownership: Publicly held. NASDAQ: LLTC.

Company Overview and Strategy

Linear Technology Corporation (LTC) designs, manufactures, and markets a broad line of high-performance standard linear integrated circuits. Its devices monitor, condition, amplify, or transform continuous analog signals associated with such physical properties as temperature, pressure, weight, position, light, sound, or speed. Product categories include power management/regulators, interface and multi-protocol devices, data converters, filters, and amplifiers.

2-248 North American Company Profiles Linear Technology

The Company targets its product and marketing efforts toward the high-performance segments of the linear circuit market. Applications for its products include telecommunications; notebook and desktop computers; video/multimedia; computer peripherals; cellular telephones; industrial, automotive and process controls; network and factory automation products; and satellites. Products are sold directly or through distributors to original equipment manufacturers.

Management

Robert H. Swanson, Jr. President and Chief Executive Officer Paul Chantalat Vice President, Quality, Reliability Paul Coghlan Vice President, Finance, and Chief Financial Officer Timothy D. Cox Vice President, North American Sales Clive B. Davies, Ph.D. Vice President and Chief Operating Officer Robert C. Dobkin Vice President, Engineering Sean T. Hurley Vice President, Operations Louis Di Nardo Vice President, Marketing Hans J. Zapf Vice President, International Sales

Products and Processes

Linear Technology products include operational, instrumentation and audio amplifiers; voltage regulators, power management devices, DC-DC converters and voltage references; comparators; monolithic filters; communications interface circuits; one-chip data acquisition sub-systems; pulse width modulators and sample-and-hold devices. The company markets approximately 5,200 finished part types, of which more than 90 percent are proprietary.

Linear Technology uses a variety of process technologies in the design and fabrication of its chips, including standard bipolar, CMOS, BiCMOS, and complementary bipolar, as well as thin-film and laser trimming technologies.

2-249 Linear Technology North American Company Profiles

Semiconductor Fabrication Facilities

Linear Technology Corporation Linear Technology Corporation 1630 McCarthy Boulevard Camas, Washington Milpitas, California 95035-7487 Fab 3 Fabs 1 and 2 Capacity (wafers/week): 2,500 Cleanroom size: 170,000 square feet Wafer size: 150mm Capacity (wafers/week): 4,500 Processes: CMOS, bipolar Wafer size: 100mm Products: Linear ICs Processes: CMOS, BiCMOS, bipolar Feature sizes: £2.0µm Products: Linear ICs (Began production in early 1997). Feature sizes: 2.0µm-3.0µm

LTC maintains a plastic assembly facility in Penang, Malaysia, and a test facility in Singapore.

2-250 North American Company Profiles Linfinity Microelectronics

LINFINITY MICROELECTRONICS

Linfinity Microelectronics Inc. 11861 Western Avenue Garden Grove, California 92841 Telephone: (714) 898-8121 Fax: (714) 898-2781 Web Site: www.linfinity.com

IC Manufacturer

Financial History ($M), Fiscal Year Ends June 30

1992 1993 1994 1995 1996 1997 Corporate Sales 69 88 98 103 106 144 Net Income 2 6 7 10 7 13

Semiconductor Sales 27 31 39 40 38 55 Capital Expenditures 1 2 2 5 5 4

Company Overview and Strategy

Linfinity Microelectronics Inc. (LMI) is a wholly owned subsidiary of Symmetricom, Inc. (formerly Silicon General, Inc.). It was founded in 1968 as Silicon General Semiconductors and adopted its current name in 1993. LMI designs, manufactures, and markets linear bipolar, CMOS, and BiCMOS integrated circuits for industrial, commercial, automotive, and military applications. Linfinity's special area of expertise is in power management with an emphasis on mixed-signal technology. Sales from power supply products, represented over 50 percent of total sales in fiscal 1997.

The company is expanding the value-added products and services it currently provides for power supply systems, while adding product lines to serve new areas such as signal conditioning and motion control systems. The company currently offers about 400 standard products.

Management

James Peterson President (acting) Ralph Brandi Vice President, Sales Shufan Chan Vice President, Development Mark Granahan Vice President, Marketing James Hartman Vice President, Manufacturing

2-251 Linfinity Microelectronics North American Company Profiles

Products and Processes

Linfinity's products generally address four main markets: power supply systems, motion control, analog signal conditioning, and data communications.

Power Supply Linfinity is a leading supplier of a wide variety of power management products, including pulse width modulators (PWMs), voltage regulators, supervisory circuits, and power factor conversion chips. Typical applications for these products include desktop and portable computers, portable communications equipment, video monitors, automotive entertainment, HVAC products, satellites, and lighting. The new product focus in this area includes controllers, linear regulators, DC-DC converters, FET drivers, and voltage supervisors.

Motion Control Linfinity makes two kinds of motion control integrated circuits: one that controls the spin motor in computer disk drives and another that controls the position of the read-write head. The new product focus in this area includes sensorless spindle controllers, voice coil controllers, and brushless DC motor controllers.

Analog Signal Conditioning Linfinity's signal conditioning circuits include operational amplifiers, comparators, and voltage references. Typical applications include instrumentation, industrial controls, telecommunications, and audio equipment.

Data Communications A relatively new product area for Linfinity, the company’s data communications ICs include small computer systems interface products and high speed, parallel communications buses, which permit high data transfer rates between computers and various peripheral devices.

Linfinity uses a wide range of process technologies that address linear and mixed-signal product requirements.

Bipolar Two main process flows are available in this technology. Option A provides a rugged, high-voltage (60V), high-power process for applications such as off-line power supplies and motor drivers. Option B provides a high-performance, low-voltage (20V) process for applications in high-speed, low-noise signal conditioning equipment.

CMOS Exhibiting all the characteristics of a good analog CMOS process it provides 18V MOS transistors coupled with high density 3.0µm feature sizes for optimal packing density. Limited logic capability is available at this feature size.

BiCMOS The BiCMOS process combines the Option B bipolar and CMOS processes into a single flow. The process is idealized for mixed-signal applications requiring excellent analog performance in conjunction with logic capability. A double-level metal option is available for optimum packing density. Applications include power supply controllers and high-performance disk drive motor controllers.

2-252 North American Company Profiles Linfinity Microelectronics

Semiconductor Fabrication Facilities

Linfinity Microelectronics Inc. 11861 Western Avenue Garden Grove, California 92841 Capacity (wafers/week): 1,700 Wafer size: 100mm Processes: Bipolar, CMOS, BiCMOS Products: Linear ICs, ASICs Feature size: 3.0µm

2-253 Logic Devices North American Company Profiles

LOGIC DEVICES

Logic Devices Incorporated 1320 Orleans Drive Sunnyvale, California 94089 Telephone: (408) 542-5400 Fax: (408) 542-0080 Web Site: www.logicdevices.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Logic Devices Incorporated • Warminster, Wiltshire, United Kingdom Telephone: (44) (1985) 218699

Northeast U.S.: Logic Devices Inc. • 80 Orville Dr., Bohemia, New York 11716 Telephone: (516) 244-1450

Southeast U.S.: Logic Devices Inc. • 9700 Koger Blvd., Suite 204, St. Petersburg, Florida 33702 Telephone: (813) 579-9992

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 12 13 13 17 13 13 Net Income 0.1 0.3 1 1 1 (399) R&D Expenditures 1 1 1 1 1 1

Employees 61 49 44 49 58 58

Company Overview and Strategy

Logic Devices Incorporated (NASDAQ: LOGC) was founded in 1983. It develops and markets high-performance digital integrated circuits for applications requiring high operating speeds and low operating power. Such applications include computers, workstations, video image processing, medical instrumentation, telecommunications, and military signal processing.

2-254 North American Company Profiles Logic Devices

Logic Devices was founded as a supplier of building-block DSPs, but later entered the growing 1989 SRAM market. It was driven from the SRAM market in 1992 due to cost and quality problems with its then supplier of SRAM wafers. Sales of the company’s SRAM products rebounded in 1994 and 1995, but then suffered price erosion. SRAM products fell from representing 45 percent of the company’s sales in 1995 to 15 percent in 1997. While the company plans to remain a player in fast SRAMs and other niche SRAM markets, it has also placed a greater emphasis on DSP devices, which grew to represent 85 percent of sales in 1997, up from 55 percent in 1995.

In April 1995, Logic Devices acquired Star Semiconductor, which developed the SPROC programmable digital signal processor architecture. The SPROC architecture enables multiple processors to efficiently share data via a common memory array, resulting in high processing throughput.

Research efforts continue to focus on DSP circuits to address broadcast, studio, and audio and video image processing applications, and new products utilizing the company’s SRAM technology.

Management

Howard L. Farkas Chairman William J. Volz President Mary C. deRegt Chief Financial Officer William L. Jackson Senior Vice President Scott Andrews Chief Technical Officer Tim Flaherty Director of Marketing Dave Hoffmaster National Sales Manager

Products and Processes

High-speed, low-power CMOS SRAMs and DSP circuits are Logic Devices' principal product lines. Its DSPs primarily target video editing, broadcast special effects, and studio production applications, where lossless manipulation of very high bandwidth data is required. The company also offers specialty memories, register products, and high-performance CMOS SCSI controllers.

Fast SRAM Fast Logic Specialty Memory Programmable DSP 256K family Pipeline registers Cache-tag memories Star Spruce 1M family Register files FIFO

2-255 Logic Devices North American Company Profiles

Computational Interface Video Image Processing Components Multipliers SCSI bus controllers Coordinate transformers Multiplier-accumulators Template matcher FIR filters 2D video filters Arithmetic logic units Line buffers Digital correlators Video mixers Barrel shifters Image rotation and work generators Color space converters

The company's chips are produced using 0.35µm, 0.5µm, and 0.8µm CMOS technologies.

Semiconductor Fabrication Facilities

Logic Devices utilizes TSMC for its wafer foundry requirements.

2-256 North American Company Profiles LSI Computer Systems

LSI COMPUTER SYSTEMS

LSI Computer Systems, Inc. 1235 Walt Whitman Road Melville, New York 11747-3086 Telephone: (516) 271-0400 Fax: (516) 271-0405 Email: [email protected] Web site: www.lsicsi.com

Fabless IC Supplier Founded: 1969, New York

Financial History ($M)

1997 (projected) Sales 8 Employees 35

Ownership: 100% of capital stock is owned by the officers equally.

Company Overview and Strategy

LSI Computer Systems, Inc. (LSI/CSI) designs full custom and standard ICs for products in applications ranging from consumer and industrial to military and aerospace. They are recognized as one of the leading suppliers of lighting control ICs and full custom ICs, and were the first company to develop and market ICs for brushless DC motors. LSI/CSI is an ISO 9002 registered company.

Management

Al Musto Chief Executive Officer Attila Tetik President Alvin Kaplan Secretary-Treasurer

Products and Processes

LSI Computer Systems supplies both standard and full custom ICs. Its standard ICs include programmable digital delay timers, CMOS dividers, incremental encoder interface chips, counters, melody generators, lighting control ICs, AC and brushless DC motor controllers, Dynamic Scattering LCD drivers, telephone remote isolation devices, programmable digital lock circuits, and PIR detection circuits.

The use of several external mask and wafer foundries that offer a broad range of process technologies makes the Extra-Custom service, analog and digital design services, flexible in meeting the needs of a variety of applications and provides automatic second-sourcing of product. LSI Computer Systems custom designs every detail of each Extra-Custom IC in order to deliver the desired performance and reliability at the lowest possible price.

2-257 LSI Logic North American Company Profiles

LSI LOGIC

LSI Logic Corporation 1551 McCarthy Boulevard Milpitas, California 95035 Telephone: (408) 433-8000 Fax: (408) 433-8989 Web Site: www.lsilogic.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: LSI Logic K.K. • Minato-ku, Tokyo, Japan Telephone: (81) (3) 5463-7811 • Fax: (81) (3) 5463-7825

Europe: LSI Logic Europe, Ltd. • Bracknell, Berkshire, United Kingdom Telephone: (44) (1344) 426544 • Fax: (44) (1344) 481039

Asia-Pacific: LSI Logic Corporation Hong Kong, Ltd. • Hong Kong, R.O.C. Telephone: (852) 2-405-8600 • Fax: (852) 2-412-7820

Canada: LSI Logic Corporation of Canada, Inc. • Etobicoke, Ontario, Canada Telephone: (416) 620-7400 • Fax: (416) 620-5005

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 617 719 902 1,268 1,239 1,290 Net Income (110) 54 109 238 147 159 R&D Expenditures 79 79 99 124 184 226 Capital Expenditures 143 88 166 233 362 531

Employees 3,400 3,370 3,750 3,750 3,910 4,443

Company Overview and Strategy

LSI Logic (NYSE: LSI) is a leading designer and manufacturer of high-performance ASICs and related products and services. Founded in 1981, the company uses advanced process technology and design methodology to design and develop highly complex ASICs and other integrated circuits. Customers of LSI Logic are primarily original equipment manufacturers (OEMs) in the electronic data processing, consumer electronics, telecommunications, and certain office automation industries. Within these industries, the company emphasizes digital video, digital broadcasting, networking and wireless communications, desktop and personal computing, and office automation applications.

2-258 North American Company Profiles LSI Logic

As process technology becomes more sophisticated, allowing greater density and increased functionality, the "system-on-a-chip" is becoming the foundation of LSI Logic's business. In fact, the company has trade marked the term “The System-on-a-Chip Company™.” Its product libraries, including its CoreWare® libraries, combined with its deep submicron process technologies provide the company with the ability to combine microprocessor "engines," logic blocks (including industry standard functions, protocols, and interfaces), and memory with a customer’s proprietary logic on a single chip.

LSI Logic’s CoreWare® technology is at the center of its shift toward more consumer and communications products. In 1997, CoreWare® products accounted for 40 percent of the company’s revenues, versus 30 percent in 1996. New industry-standard cores added to the CoreWare® library include those for the GSM wireless market, Internet and Intranet applications, satellite set-top boxes, networking, and DVD products. In 1H97, the company entered the cable modem market with the introduction of its Cablestream™ QAM Receiver core.

2-259 LSI Logic North American Company Profiles

Management

Wilfred J. Corrigan* Chairman and Chief Executive Officer Elias J. Antoun* Executive Vice President, Consumer Products John P. Daane* Executive Vice President, Communications, Computer and ASIC Products W. Richard Marz* Executive Vice President, Geographic Markets R. Douglas Norby* Executive Vice President and Chief Financial Officer Joseph M. Zelayeta* Executive Vice President, Worldwide Operations Maniam B. Alagaratnam Vice President, Package Development John J. D’Errico Vice President and General Manager, Pan Asia Simon P. Dolan Vice President, Consumer Products Marketing Bruce L. Entin Vice President, Worldwide Customer Marketing, Geographic Markets Donald J. Esses Vice President, U.S. Manufacturing Amnon Fisher Vice President, Consumer Technology Engineering Jeffrey L. Hilbert Vice President, Methodology and Customer Engineering James W. Hively Vice President, Memory and Mixed Signal Engineering Charles E. Laughlin Vice President and General Manager, LSI Logic Japan Semiconductor, Inc. Theodore Leno Vice President, Assembly and Test Operations Bryon Look Vice President, Corporate Development and Strategic Planning R. Gregory Miller Vice President, Corporate Controller Pierre Nadeau Vice President and General Manager, LSI Logic Europe Ltd. Willsie H. Nelson Vice President, Worldwide Logistics David E. Sanders* Vice President, General Counsel, and Secretary Richard D. Schinella Vice President, Wafer Process R&D and Santa Clara Operations Chiaki Terada Vice President, Industrial Engineering Frank Tornaghi Vice President, North America Sales Lewis C. Wallbridge Vice President, Human Resources Mary E. Albanese President, Mint Technology Norm L. Armour Vice President and General Manager, Gresham Operations Hugh H. Durdan Vice President and General Manager, Computer Products Division Thomas Daniel Vice President, ASIC Technology Dan King Vice President, Quality and Reliability Marlon R. Murzello Vice President, MIPS Engineering King F. Pang Vice President, Digital Video Engineering Ranko L. Scepanovic Vice President, Advanced Development Labs Giuseppe Staffarom Vice President and General Manager, Communications Products Division Lam H. Traong Vice President, Information Technology and Chief Information Officer Dean J. Westman Vice President, Operations, Consumer Division

*Executive Officers

2-260 North American Company Profiles LSI Logic

Products and Processes

LSI Logic's broad product line includes high-performance gate array, cell-based, and embedded array ASICs with up to 26 million gates. The company's CoreWare® library contains cells and cores based on industry-standard functions, interfaces, and protocols. Example cores from the CoreWare® library include Ethernet controllers, the ATMizer™ II segmentation and reassembly engine, and the GigaBlaze G10™ SeriaLink 1.25-gigabit/second transceiver for communications applications; PCI and USB bus interfaces and Fibre Channel protocol circuits for computer applications; MPEG-2 and DVD decoders for digital video applications; and a GSM baseband processor for GSM mobile phones. In addition, cores such as these may be combined with LSI Logic’s MiniRISC™ family of MIPS-based RISC microprocessor cores, including the TinyRISC™ 16-/32-bit compressed-code MPU, and special-purpose memory circuits to realize system-level applications on a single chip.

In addition, LSI Logic offers a family of application specific standard products (ASSPs), high-speed digital signal and image processing devices that handle many common digital signal processing functions. Some of the ASSPs designed by LSI Logic are included in the company’s CoreWare® library. The company also sells stand-alone SPARC- and MIPS-based RISC microprocessors.

The company has developed and uses advanced CMOS technologies to manufacture its IC products. Its G10™ 0.35µm 3-volt CMOS process, introduced in 1995, allows for up to 49 million transistors (or up to five million usable gates) on a single chip. In early 1997, LSI Logic formally announced its next-generation G11™ process technology featuring a 0.25µm gate length, providing up to 64 million transistors (or up to 8.1 million usable gates) and allowing greater density and increased functionality on a single chip. Devices in the G11™ ASIC family will operate on 1.8V, 2.5V, or 3.3V, and consume one-fourth of the power of the G10™ devices.

The G12™, introduced in March 1998, is the newest system-on-a-chip technology capable of combining all of the system functions needed to create new classes of communications, computer, and consumer products on one silicon chip. The 0.18 micron drawn G12™ technology offers 26,000,000 usable logic gates on a 20- by 20- millimeter silicon chip. Prototype designs using the G12™ technology will begin in the 4Q98. Production will start 2Q99.

In a significant step to increase yields and allow for greater chip customization, LSI Logic during 1996 installed chemical mechanical polishing (CMP) equipment in its Japanese fabrication facilities. In addition, the company started using flip-chip interconnect package technology for its most complex chips.

Semiconductor Fabrication Facilities

Most of LSI Logic's wafers are manufactured by its Japanese subsidiary, LSI Logic Japan Semiconductor, Inc. (JSI), which prior to January 1995, was jointly owned by LSI Logic (55 percent) and Kawasaki Steel Corporation (45 percent). LSI Logic is now the sole owner of JSI, as a result of the purchase of Kawasaki Steel's interest.

LSI Logic also obtains wafers from Chartered Semiconductor in Singapore. In 1995, LSI Logic made a $20 million equity investment in Chartered, in exchange for guaranteed wafer capacity for products based on 0.6µm technology and smaller for a period of 10 years.

2-261 LSI Logic North American Company Profiles

In 1996, the company closed its aging fab in Milpitas, California, and delayed the launch of its new 200mm wafer fab under construction in Gresham, Oregon. The Gresham facility is now scheduled to begin production in the later half of 1998.

LSI Logic Corporation LSI Logic Corporation 3115 Alfred Street Gresham, Oregon Santa Clara, California 95054 Capacity (wafers/week): 4,000 Telephone: (408) 433-6666 Wafer size: 200mm Capacity (wafers/week): 250 Process: CMOS Wafer size: 150mm Products: ASICs, ASSPs Processes: CMOS, BiCMOS Feature sizes: 0.25µm, 0.35µm Products: R&D, ASICs Feature sizes: 0.25µm-0.5µm

LSI Logic Japan Semiconductor, Inc. (formerly known as Nihon Semiconductor) 10 Kitahara, Tsukuba-shi Ibaraki-ken 300-32, Japan Telephone: (81) (298) 64-7229 Fax: (81) (298) 64-33362 Fabs I and II Cleanroom size: 50,000 square feet Capacity (wafers/week): 10,000 Wafer size: 150mm, 200mm Processes: CMOS Products: ASICs, MPUs, MPRs Feature sizes: 0.35µm-1.0µm

Key Agreements

• In March 1998, LSI Logic announced that it will supply Sony Corporation with a single-chip DVD decoding engine for Sony’s recently announced second-generation DVD video players.

• In November 1997, LSI Logic announced a technology alliance with Compaq Computer Corporation to provide custom and standard ASICs for the Compaq Netelligent 5526 Manageable Ethernet Switch.

• In July 1997, LSI Logic and Incorporated signed a license agreement that enables LSI Logic to develop, manufacture and sell cdmaOne (IS-95) ASICs to Qualcomm’s subscriber equipment licensees for digital cellular, personal communications services and wireless local loop applications around the world.

• In July 1997, LSI Logic announced the acquisition of Mint Technology Inc., an engineering services company providing expertise in the areas of system architecture and system level design verification.

• In June 1997, LSI Logic and Micron Technology, Inc. announced an embedded DRAM technology alliance. The companies will develop and produce digital logic integrated circuits which will have the capability of embedding from 64 to 128Meg of conventional 1T DRAM on a single chip.

2-262 North American Company Profiles LSI Logic

• In May 1997, LSI Logic announced a technology alliance (initiated in 1996) with Minolta Co., Ltd., for the specification, validation and application of DCAM digital camera system-on-a-chip products.

• In February 1997, LSI Logic and Motorola’s Information Systems Group (ISG) announced a licensing agreement in which Motorola’s V.34 software modems will be embedded into LSI’s leading custom semiconductors.

• In early 1997, LSI Logic licensed the ARM 32-bit RISC microprocessor core of Advanced RISC Machines.

• In 3Q96, LSI Logic and MIPS Technologies, Inc. extended and expanded the scope of the architecture license that allows LSI Logic to produce MIPS-based RISC microprocessors and microprocessor cores. The new license will expire in the year 2004.

• The company formed a five-year alliance with Argonaut Software to develop a family of 3D graphics accelerators. Incorporating LSI Logic’s system-on-a-chip, the companies will develop upgradable 3D graphics cores for LSI’s ASIC library.

• LSI Logic entered into an agreement with InterDigital Communications Corporation that calls for LSI Logic to develop and produce custom chips for InterDigital to use in Personal Communications Services (PCS) handsets and Wireless Local Loop equipment. The cores that LSI Logic will use in the design are based on the company’s G10™ 0.35µm process technology.

• LSI Logic established a joint development agreement with Sanyo Electric to design the core of an HDTV system.

• LSI Logic signed an agreement with Philips to collaborate on developing video compression ICs for HDTV applications.

2-263 Lucent Technologies North American Company Profiles

LUCENT TECHNOLOGIES

Lucent Technologies Inc. Microelectronics Group 555 Union Boulevard Allentown, Pennsylvania 18103 Telephone: (800) 372-2447 Web Site: www.lucent.com/micro

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Lucent Technologies, Microelectronics Group • Shinagawa-ku, Tokyo, Japan Telephone: (81) (3) 5421-1600 • Fax: (81) (3) 5421-1700

Europe: Lucent Technologies, Microelectronics Group • Bracknell, Berkshire, United Kingdom Telephone: (44) (1344) 865900 • Fax: (44) (1344) 865990

Asia-Pacific: Lucent Technologies, Microelectronics Group • Singapore Telephone: (65) 778-8833 • Fax: (65) 777-7495

Financial History ($M), Fiscal Year Ends September 30

1993 1994 1995 1996 (FY) 1997 (FY ) Sales (Lucent Technologies) 17,734* 19,765* 20,258* 23,286 26,360 Net Income (3,778) 482 (867) (793) 541

Semiconductor** Sales 1,186 1,463 1,979 2,312 2,755 Capital Expenditures 143 170 259 498 550

Employees (Microelectronics) 20,000 18,500 18,000 18,000 17,000 ***

* Data for fiscal year ended December 31. In 1996, the fiscal year was changed to start in October. ** Calendar year. ***Includes Power Systems – (now part of Network Products, see Lucent Overview) 12,000 without power. FY - Fiscal Year.

Ownership: Publicly held. NYSE: LU.

2-264 North American Company Profiles Lucent Technologies

Company Overview and Strategy

Lucent Technologies’ Microelectronics Group designs and manufactures advanced integrated circuits and optoelectronic components. Its product line is built upon strengths in digital signal processing, networked computing, and communications technologies. The company's products are used in applications such as personal computers/multimedia systems, local-area networks (LANs), cellular base stations, TV set-top boxes, telephones, and answering machines. It is a leader in digital signal processors (DSPs), cell-based ASICs, video conferencing ICs, and optoelectronics.

Last October, Lucent announced a reorganization that created a series of smaller businesses to better focus on the industry’s fastest growth opportunities. The corporation’s reorganization enables it to focus more clearly on high growth areas such as wireless, semiconductors, data networking, and optical networking. As a result, Lucent is made up of Bell Laboratories, the research and development arm, and eleven business groups: Microelectronics Group, Business Communications Systems, Data Networking Systems, Global Service Provider Business, Wireless Networks, Switching and Access Systems, Optical Networking, Network Products, Communications Software, New Ventures Group, and the Intellectual Property Division. Lucent’s power systems manufacturing operation, which was formerly a part of the Microelectronics Group, is now part of the Network Products Group.

Lucent’s semiconductor roots stretch back to the late 1940’s, when Bell Labs, invented the transistor. Bell Labs was given the Nobel Prize for its invention in 1956. The Microelectronics Group was strictly an internal supplier for thirty years. While Lucent’s semiconductor unit is a large internal supplier, two-thirds of the Microelectronics Group’s 1997 production volume was sold to other customers.

Lucent Technologies’ Microelectronics Group products can be divided into two areas: integrated circuits for use in communications and computing products and systems; and optoelectronic products for the telecommunications, cable television, and network computing markets.

Much of Lucent’s recent growth in sales of microelectronic products has been due to higher sales in DSPs and ASICs to OEMs, particularly in the Asia-Pacific region. International revenues represented approximately half of the Microelectronics Group’s sales in fiscal 1997.

2-265 Lucent Technologies North American Company Profiles

Management

Lucent Technologies Richard A. McGinn Chairman and Chief Executive Officer Ben Verwaayen Executive Vice President and Chief Operating Officer Dan Stanzione Executive Vice President, Chief Operating Officer and President, Bell Labs John T. Dickson President, Microelectronics Group William T. O’Shea President, Business Communication Systems and Data Networking Systems Carleton S. Fiorina President, Global Service Provider Business James K. Brewington President, Wireless Networks Group Robert C. Holder President, Switching and Access Systems Group William R. Spivey President, Network Products Group Gerald J. Butters President, Optical Networking Group Thomas M. Uhlman President, New Ventures Group J. Carl Hsu Acting President, Communications Software Group

Lucent Technologies Microelectronics Group John T. Dickson President Homa Firouztash Vice President, Worldwide Sales Kenneth Dorushka Vice President, Lucent Technologies Sales Richard Hegberg Vice President, North American OEM Sales John Hughes Managing Director and Sales Vice President, Europe, Africa and the Middle East James Mackin Managing Director and Sales Vice President, Japan and Asia-Pacific John V. Pilitisis Vice President, Optoelectronics Daniel Dileo Vice President, Wireless and Messaging Integrated Circuits Mark Stibitz Vice President, Integrated Systems Integrated Circuits Ahmed Nawaz Vice President, Network Communications Integrated Circuits Peter T. Panousis Vice President, Silicon Manufacturing and Development and Cirent Semiconductor President

2-266 North American Company Profiles Lucent Technologies

Products and Processes

Lucent utilizes CMOS, BiCMOS, and bipolar processes in the manufacture of its integrated circuits. The following are Lucent’s primary semiconductor products: 16-bit and 32-bit DSPs (including modem DSPs), ASICs (digital and mixed-signal standard cells and FPGAs), MPEG-2 digital TV devices, and communications ICs (e.g., network interface ICs, transceivers, and line card ICs).

Recent new product unveilings have included the new ORCA™ 3 series of FPGAs that will carry the ORCA™ family into 0.25µm processes, the first single-chip receiver for the North American digital television standard (DTV), and a chip based on Lucent’s new DSP16000 core architecture that consumes up to five times less power and requires up to five times less memory than the most advanced DSPs on the market. Lucent’s Digital Subscriber Line Technology, called Wildwire, can download data at 1.5 megabits per second, which is about 30 times faster than today’s analog modems.

Lucent’s most recent product is its latest addition to its family of new NetLight™ transceivers. NetLight transceivers are used in gigabit Ethernet, ATM, SONET and fibre channel applications providing bandwidth of 155 and 622 megabits per second (Mb/s) up to 1.2 and 2.5 gigabits per second (Gb/s).

The company also provides bipolar foundry services to outside companies. The Bipolar Foundry utilizes two industry leading advanced complementary bipolar process technologies, called CBIC-U2 and CBIC-V2.

MOS MEMORY ANALOG DRAM ✔ Amplifier SRAM ✔ Interface Flash Memory Consumer/Automotive EPROM Voltage Regulator/Reference ROM Data Conversion EEPROM ✔ Comparator Other (Including Non-Volatile RAM) ✔ Other (Includes Telecom)

MOS LOGIC DIGITAL BIPOLAR General Purpose Logic Bipolar Memory Gate Array ✔ General Purpose Logic ✔ Standard Cell Gate Array/Standard Cell ✔ Field Programmable Logic Field Programmable Logic ✔ Other Special Purpose Logic Other Special Purpose Logic MPU/MCU/MPR MOS MICROCOMPONENT MPU OTHER MCU ✔ Full Custom IC MPR Discrete ✔ DSP ✔ Optoelectronic

2-267 Lucent Technologies North American Company Profiles

Semiconductor Fabrication Facilities

Lucent Technologies Inc. Lucent Technologies Inc. Allentown Reading 555 Union Boulevard P.O. Box 13396 Allentown, Pennsylvania 18103 Reading, Pennsylvania 19612 Telephone: (610) 712-6011 Telephone: (610) 939-7011 Cleanroom size: 80,000 square feet Cleanroom size: 70,000 square feet Capacity (wafers/week): 15,000 Capacity (wafers/week): 5,000 Wafer sizes: 125mm Wafer sizes: 100mm (2 in. for optoelectronics) Processes: NMOS, CMOS, bipolar Processes: Bipolar, HVCMOS, BCDMOS Products: Linear and logic ICs, DSPs, ASICs, Products: Linear ICs, optoelectronics, FPGAs. foundry services. Feature sizes: 0.9µm, 0.6µm, 0.55µm, 0.35µm, Feature sizes: 1.5µm-3.5µm 0.3µm.

Lucent Technologies Inc. Lucent Technologies Microelectronica S.A. Orlando Plant Poligono Industrial de Tres Cantos 9333 South John Young Parkway S/N (Zona Oeste), 28770 Colmenar Viejo Orlando, Florida 32819 Madrid, Spain Telephone: (407) 345-6000 Cleanroom size: 20,000 square feet Cleanroom size: 35,000 square feet Capacity (wafers/week): 5,000 Capacity (wafers/week): 8,250 Wafer size: 150mm Wafer size: 150mm Process: CMOS Process: CMOS, BiCMOS Products: ASICs, FPGAs, communications ICs, DSPs Products: ASICs, FPGAs, DSPs, R&D Feature sizes: 1.25µm, 0.9µm, 0.5µm, 0.45µm, Feature sizes: 0.9µm, 0.6µm, 0.5µm, 0.35µm, 0.35µm, 0.3µm. 0.3µm, 0.25µm.

Lucent Technologies Inc. Cirent Semiconductor Optoelectronics Center 9333 South John Young Parkway 9901 Hamilton Boulevard Orlando, Florida 32819 Breiningsville, Pennsylvania 18031-9359 Telephone: (407) 345-6000 Telephone: (610) 391-2000 Capacity (wafers/week): 2,500 Cleanroom size: 10,000 square feet Wafer size: 200mm Wafer size: 2 in. Process: CMOS Process: LPMDCVD Products: ASICs, MPRs Products: Optoelectronics Feature sizes: 0.35µm-0.18µm Feature sizes: 0.1µm-5.0µm (Joint venture with Cirrus Logic, see Key Agreements).

2-268 North American Company Profiles Lucent Technologies

Key Agreements

• In April 1998, The Microelectronics Group of Lucent Technologies announced a minority equity investment of up to $10 million in Chip Express for rapid customization of semiconductor devices.

As part of the agreement, the companies will develop next-generation technology for a class of integrated circuits known as laser-programmable system chip (LPSCs) — devices that help chip designers speed the development of new application-specific integrated circuits (ASICs) for use in computers, communications equipment, and business and consumer electronics products.

• In April 1997, Lucent announced it had licensed Advanced RISC Machines’ high-performance, low-power RISC microprocessor core technology (ARM7TDMI) for integration with Lucent’s ASIC library.

• Lucent and Mitsubishi established an alliance in mid-1996 to jointly develop a set of ICs that together will perform all of the functions needed for next-generation HDTV sets for the U.S. market. The first samples of the chipset are expected to become available in early 1998.

• The output of the Cirent Semiconductor is split 75 percent for Lucent and 25 percent for Cirrus Logic.

• Lucent signed an agreement with Hewlett-Packard in 1995 to develop and dual-source fiber-optic transceivers for SONET/SDH and ATM applications.

• Lucent (then AT&T Microelectronics) struck an agreement with Standard MicroSystems Corp. (SMC) in 1994 under which SMC agreed to buy equipment for installation in Lucent's fab in Spain in return for a guaranteed portion of the fab output for a period of five years.

• Lucent is working with IBM, Lockheed-Martin Federal Systems, and Motorola to establish a manufacturing infrastructure for x-ray lithography.

• Lucent has been collaborating with NEC on the development of advanced CMOS process technologies since 1991. The team completed development of a 0.25µm process flow in early 1997 and are currently working on a successor 0.18µm program, which is targeted for completion in 1999.

• Lucent has several agreements with TriQuint Semiconductor involving the development, manufacture, and marketing of GaAs ICs for high-performance wireless and telecommunications systems. As part of the deal, Lucent discontinued its production of GaAs wafers and now relies on TriQuint for the manufacture of its GaAs wafers. The two companies are developing an epitaxial process based on Lucent's GaAs intellectual property.

• Lucent is teamed with Sandia National Laboratories to develop new lithography patterning technologies for the production of high-density ICs with geometries below 0.2µm.

2-269 Lucent Technologies North American Company Profiles

• Mitsubishi Electric America and Lucent Technologies jointly developed the industry’s first end-to-end, receiver- to-display digital television (DTV) chipset that meets the North American Advanced Television Standards Committee (ATSC) digital television standard for both high-definition television (HDTV) and standard-definition television (SDTV) applications. The chipset enables digital televisions, set-top boxes, personal computers and other digital appliances to receive digital video and CD-quality audio signals from terrestrial broadcast stations.

• Lucent Technologies joined the “Universal Asymmetric Digital Subscriber Line Working Group” (UAWG), an organization of leading telecommunications and computer companies working to accelerate widespread use of Digital Subscriber Line (DSL) modem technology. The UAWG plans to propose an industry standard for a simplified version of Asymmetrical Digital Subscriber Line (ADSL) technology that will deliver to consumers high-speed modem communications over standard phone lines. Lucent will contribute to the development of this standard by offering the engineering expertise of its research and development arm, Bell Labs, which pioneered DSL technology and holds several of the earliest and most fundamental patents related to it.

• Lucent Technologies and Chartered Semiconductor Manufacturing signed an agreement to form a $1-billion- plus joint venture in Singapore to manufacture wafers for a variety of integrated circuits using process technology developed by Bell Labs and Chartered. The new company, called Silicon Manufacturing Partners, is 51 percent owned by Lucent and 49 percent owned by Chartered. Both companies will share the facility’s production output, which is scheduled to begin in the fourth quarter of 1998.

2-270 North American Company Profiles Maxim Integrated Products

MAXIM INTEGRATED PRODUCTS

Maxim Integrated Products, Inc. 120 San Gabriel Drive Sunnyvale, California 94086 Telephone: (408) 737-7600 Fax: (408) 737-7194 Web Site: www.maxim-ic.com

IC Manufacturer Founded: 1983

Regional Offices/Representative Locations

Japan: Maxim Japan Co., Ltd. • Tokyo, Japan Telephone: (81) (3) 3232-6141

Europe: Maxim Integrated Products (UK), Ltd. • United Kingdom Telephone: (44) (1734) 303388

Asia-Pacific: Maxim Integrated Products Inc. • Hong Kong Telephone: (852) 2376-3000

Financial History ($M), Fiscal Year Ends June 30

1992 1993 1994 1995 1996 1997 1998 Sales 87 110 154 250 422 434 560 Net Income 14 17 24 39 123 137 178 R&D Expenditures 13 16 13 42 48 51 72 Capital Expenditures 4 13 22 36 75 44 109

Employees 554 638 1,016 1,552 1,987 2,444 3,000

Ownership: Publicly held. NASDAQ: MXIM.

Company Overview and Strategy

Maxim Integrated Products is a leading designer, developer, and manufacturer of linear and mixed-signal integrated circuits. Maxim's products are the interface between the real, analog world and the world of digital processing. They detect, measure, amplify, and convert real world signals, such as temperature, pressure, or sound, into the digital signals necessary for computer processing. Its circuits are used in a wide variety of microprocessor-based equipment, including PCs and peripherals, test equipment, handheld products, wireless communicators, and video displays. The company also provides a range of high-frequency design processes and capabilities that can be used in custom design.

2-271 Maxim Integrated Products North American Company Profiles

Maxim’s main objective is to actively develop and market both proprietary and industry standard analog integrated circuits that meet the increasing quality standards demanded by customers.

In mid-1994, Maxim acquired substantially all of the assets of the Tektronix's Integrated Circuits Operation in Beaverton, Oregon, for about $22 million. The acquisition provided Maxim with additional wafer production capacity and leading-edge high-frequency bipolar technologies that have broadened the firm's presence in the wireless and optic communications markets, as well as in high-speed data acquisition, RF signal processing, and video products.

Management

Jack F. Gifford Chairman, President and Chief Executive Officer Frederick G. Beck Vice President, Marketing and Sales Ziya G. Boyacigiller Vice President Michael J. Byrd Vice President and Chief Financial Officer Stephen R. Combs, Ph.D. Vice President, Operations Tunc Doluca Vice President, Research and Development Kenneth J. Huening Vice President William N. Levin Vice President Robert F. Scheer Vice President, Wafer Operations Richard E. Slater Vice President and Chief Accounting Officer Vijay Ullal Vice President Richard C. Hood Vice President Nasrollah Navid, Ph.D. Vice President Pirooz Parvarandeh Vice President

Products and Processes

Maxim Integrated Products offers a broad range of linear and mixed-signal ICs, including data converters, interface circuits, microprocessor supervisory circuits, operational amplifiers, power control circuits, timers and counters, display circuits, multiplexers and switches, battery chargers, voltage detectors, filters, comparators, and voltage reference circuits.

2-272 North American Company Profiles Maxim Integrated Products

Semiconductor Fabrication Facilities

During fiscal year 1996, Maxim converted over half of its wafer fabrication capacity from 100mm to 150mm wafers. To supplement its own IC production capacity, Maxim has foundry agreements with independent foundry companies.

Maxim Integrated Products Maxim Integrated Products 430 West Maude Avenue 14320 Southwest Jenkins Sunnyvale, California 94086 Beaverton, Oregon 97005 Telephone: (408) 746-2650 Telephone: (503) 641-3737 Cleanroom size: 15,000 square feet (Class 10) Cleanroom size: 60,000 square feet Capacity (wafers/week): 3,000 Capacity (wafers/week): 2,000 Wafer sizes: 100mm, 150mm Wafer size: 100mm Processes: CMOS, BiCMOS, bipolar Process: Bipolar Products: Linear and mixed-signal ICs Products: Mixed-signal ICs Feature sizes: 1.2µm-3.0µm Feature sizes: 0.8µm-2.0µm (Purchased from Tektronix in mid-1994).

2-273 Micrel Semiconductor North American Company Profiles

MICREL SEMICONDUCTOR

Micrel Semiconductor, Inc. 1849 Fortune Drive San Jose, California 95131 Telephone: (408) 944-0800 Fax: (408) 944-0970 Web Site: www.micrel.com

IC Manufacturer

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 18 19 36 53 66 104 Net Income 1 1 3 7 9 16 R&D Expenditures 2 3 4 6 9 14

Employees 150 160 180 345 400 545

Ownership: Publicly held. NASDAQ: MCRL.

Company Overview and Strategy

Micrel Semiconductor, founded in 1978, designs, develops, and manufactures a range of high-performance analog ICs targeting the communications, computer, and industrial markets. In 1982, Micrel acquired an IC fabrication facility in Sunnyvale, California from Siemens Components and began acting as a silicon foundry. This led to the company's development of semicustom and standard linear smart power ICs. In early 1993, Micrel moved its headquarters and manufacturing operations from Sunnyvale to San Jose. The new fab, formerly owned by Seeq Technology, tripled Micrel's fab capacity.

The company’s products are divided into three key areas: standard ICs, custom ICs, and foundry services. In 1996, the majority of the company’s revenues were from sales of standard products. The company’s standard products have grown from representing 14 percent of total revenues in 1992 to 76 percent in 1997. Micrel currently offers over 800 standard products.

2-274 North American Company Profiles Micrel Semiconductor

In addition to standard products, the company manufactures custom analog and mixed-signal circuits and provides wafer foundry services for customers who produce electronic systems for communications, consumer, and military applications.

Micrel is focusing its efforts on the design and marketing of its high-performance analog power ICs to become a strong force in portable computing, desktop computing, communications, and automotive and aviation electronics. Future plans include a continued transition toward standard products, while maintaining its presence in the custom IC and foundry business.

Management

Raymond D. Zinn President and Chief Executive Officer Robert Whelton Executive Vice President, Operations George T. Anderl Vice President, Sales and Marketing Robert J. Barker Vice President, Finance, and Chief Financial Officer John D. Husher Vice President, Fabrication Division Warren H. Muller Vice President, Test Operations Larry R. Sample Vice President, Design

Products and Processes

Micrel supplies both standard and custom products. The company's key standard product lines include high- current low-side power MOSFET drivers, high-side power MOSFET drivers, low dropout (LDO) linear regulators, high-efficiency switching regulators, PCMCIA power control matrices, power latched drivers, display drivers, P- channel MOSFETs, and open drain power switches. Micrel also continues to offer the use of its fabrication facilities as a foundry source.

Micrel uses and offers a full range of processes: CMOS, DMOS, bipolar, BiCMOS, and BCDMOS. The company’s fab is capable of handling metal-gate, silicon-gate, double-metal and double-poly architectures with feature sizes down to 1.0µm.

2-275 Micrel Semiconductor North American Company Profiles

Semiconductor Fabrication Facilities

Micrel Semiconductor, Inc. 1849 Fortune Drive San Jose, California 95131 Cleanroom size: 24,000 square feet (Class 10) Capacity (wafers/week): 5,000 Wafer size: 100mm (moving to 150mm) Processes: CMOS, bipolar, DMOS, BiCMOS/DMOS, BCD Products: Linear ICs, custom ICs, foundry services Feature sizes: 1.0µm-2.0µm

2-276 North American Company Profiles Micro Linear

MICRO LINEAR

Micro Linear Corporation 2092 Concourse Drive San Jose, California 95131 Telephone: (408) 433-5200 Fax: (408) 432-0295 Web Site: www.microlinear.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 37 34 42 57 54 66 Net Income 3 — 3 11 7 7 R&D Expenditure 7 8 9 10 11 12

Employees 210 210 225 251 251 252

Company Overview and Strategy

Micro Linear Corporation (NASDAQ: MLIN) headquartered in San Jose, California, was founded in 1983 as an analog ASIC semiconductor manufacturer. Since then, the company’s expansion has been in standard products for mass storage, networking, and power management.

Micro Linear is now a major supplier to the communications, computer, and industrial markets with a product portfolio of over 225 standard products. The company is an ISO 9002 certified supplier of analog and mixed-signal integrated circuits.

Micro Linear designs, develops, and markets high performance analog and mixed-signal integrated circuits for a broad range of applications. The company has targeted high growth market segments that can benefit from its highly integrated system level solutions. Using the relationships that have been developed with key customers, the company focuses on applications issues and develops highly integrated products that solve system level design problems. Additionally, the company has recently opened a design center in Cambridge, England to focus on radio frequency products.

International sales represented approximately 53 percent of total revenues in 1997.

2-277 Micro Linear North American Company Profiles

Management

Arthur B. Stabenow Chairman, President, and Chief Executive Officer Carlos A. Laber Vice President, Engineering Chris A. Ladas Vice President, Operations Ray A. Reed Vice President, Business Development J. Philip Russell Vice President, Finance and Administration, and Chief Financial Officer John K. Stahl Vice President, Sales Paul E. Standish Vice President, Marketing

Products and Processes

Micro Linear continues to expand its range of standard products with its unique tile array design methodology. This advanced, proprietary tile array approach allows custom designs and standard products that can be quickly modified.

The product mix consists of the following categories:

• Network Products • Battery Management • Telecommunications • Lamp Ballast • Mass Storage • Data Acquisition • Motor Control • Bus Products • Switch Mode Power Supply • Video Products

Micro Linear develops and manufactures products utilizing the following process technologies:

• 12 Volt Bipolar • 40 Volt Bipolar • 3µm CMOS • 1.2µm CMOS • 0.8µm BiCMOS • 1.5µm BiCMOS • 15 Volt BiCMOS

2-278 North American Company Profiles Micro Linear

Semiconductor Fabrication Facilities

Micro Linear owns and occupies 100,000 square feet of combined manufacturing and office space in San Jose, California. These facilities house marketing, sales, and administration, as well as a state-of-the-art high-speed analog test floor, design engineering and CAD facilities, and a “backend” wafer metallization line for bipolar products. Micro Linear utilizes wafer foundries and contract assemblers for the production of its ICs.

2-279 Micro Networks North American Company Profiles

MICRO NETWORKS

Micro Networks Corporation Microelectronics Business Unit 324 Clark Street Worcester, Massachusetts 01606 Telephone: (508) 852-5400 Fax: (508) 853-8296 Web Site: www.mnc.com/company.html

Fabless IC Supplier

Ownership: Privately held.

Company Overview and Strategy

Micro Networks Corporation (MNC) designs and manufactures custom and semi-custom data acquisition products, clock oscillators, application specific ICs (ASICs), and custom hybrid microcircuits for worldwide high reliability aerospace/defense, industrial, and commercial applications.

MNC was established in 1969 as a hybrid producer and quickly became a dominant player in data conversion products. A second product line, frequency control products, was added in 1991. Micro Networks also designs and manufactures custom microelectronics products including thick- and thin-film substrates, hybrids, and multichip modules. Typical applications for its custom microelectronics products are avionics, imaging, portable satellite terminals, military electronics equipment and submarine communications receivers.

In September 1996, MNC acquired the assets of GTE Microelectronics from GTE Corporation, one of the world's largest suppliers of communications systems, equipment, and services for commercial and government/defense applications. GTE Microelectronics was an organization within the Communications Systems Division of GTE Government Systems, one of GTE Corporation's two operating groups. With the assets of GTE Micro, MNC expanded its monolithic capabilities and its custom microelectronics product line to include capabilities in ASIC design, manufacture, and test. With regard to ASICs, MNC specializes in the conversion of ASIC designs and the manufacture of secure ASIC products.

Approximately 60 percent of MNC’s sales, which were about $15 million for 1997, are from military-related products. Commercial-related products make up the remaining 40 percent.

Management

Debbie Cremin Vice President, Microelectronics Business Unit John Condon Corporate Vice President

2-280 North American Company Profiles Micro Networks

Products and Processes

Micro Networks’ custom microelectronics products include ASICs, FPGAs, multichip modules, and hybrid circuits. The company specializes in rapid prototyping, small production runs, custom packaging, and conversion of hybrids to ASICs.

The company’s ASIC offerings include a variety of standard cell and gate array technologies down to submicron CMOS, BiCMOS, and bipolar for digital, analog, and mixed-signal circuits.

Micro Networks also provides custom test services for test development and production of analog, digital, and mixed-signal circuits including temperature testing, characteristics, and qualification.

Semiconductor Fabrication Facilities

For the production of its ICs, MNC works with a number of wafer foundries including National Semiconductor, Symbios Logic, and Mitel Semiconductor.

Key Agreements

• As part of the acquisition of GTE Microelectronics in September 1996, MNC established an alliance with GTE Government Systems that calls for MNC to supply GTE Government Systems with custom ASICs, which were previously supplied by GTE Micro.

2-281 Micro-Rel North American Company Profiles

MICRO-REL

Micro-Rel 2343 West Tenth Place Tempe, Arizona 85281 Telephone: (602) 929-5576 Fax: (602) 968-9691

IC Supplier Founded: 1973

Employees: 1,000

Company Overview and Strategy

Micro-Rel is a world class producer of analog, digital and mixed-signal devices. The company also provides custom ASICs. Micro-Rel manufactures electronic circuits for pacemakers, defibrillators and other Medtronic medical devices implanted in the body. Micro-Rel is a subsidiary of Medtronic Incorporated. 1997 annual sales revenues were $250 Million.

Products and Processes

Micro-Rel designs, produces and tests integrated circuits in 1.5mm, 3.0mm, 5.0mm CMOS and BiCMOS technology. A 0.8 micron analog/digital CMOS process is also available and the company is currently working on 0.6 micron CMOS.

Semiconductor Fabrication Facilities

Micro-Rel 2343 West Tenth Place Tempe, Arizona 85281 Telephone: (602) 929-5576 Cleanroom size: 20,000 square feet Capacity (wafers/week): 1,500 Wafer size: 150mm Processes: Bipolar, CMOS, BiCMOS Products: ASICs Feature sizes: 0.8mm, 1.5mm, 3.0mm, 5.0mm

2-282 North American Company Profiles Microchip Technology

MICROCHIP TECHNOLOGY

Microchip Technology Inc. 2355 West Chandler Boulevard Chandler, Arizona 85224-6199 Telephone: (602) 786-7200 Fax: (602) 899-9210 Web Site: www.microchip.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Microchip Technology International Inc. • Yokohama, Kanagawa, Japan Telephone: (81) (45) 471-6166 • Fax: (81) (45) 471-6122

Europe: Arizona Microchip Technology Ltd. • Wokingham, Berkshire, England Telephone: (44) (118) 921-5845 • Fax: (44) (118) 921-5835

Asia-Pacific: Microchip Technology, Inc. • Kwai Fong, Hong Kong Telephone: (852) 2401-1200 • Fax: (852) 2401-3431

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 89 139 208 286 334 397 Net Income 4 19 36 52 51 64 R&D Expenditures 9 14 21 27 32 38 Capital Expenditures 3 35 71 115 77 145

Employees 1,070 1,260 1,430 1,665 1,900 1,950

Company Overview and Strategy

Microchip Technology (NASDAQ: MCHP), was organized in 1989 by a group of venture capital investors to acquire General Instrument Corporation's Microelectronics division, which was established in 1960. Since the acquisition, Microchip Technology has shifted its focus from commodity memory and logic products to embedded control system products.

The company is now a leading manufacturer of highly integrated, field-programmable RISC microcontrollers, complementary ASSPs, and related specialty memory products for high-volume embedded control applications. Microchip sells its products to a broad and diverse customer base in the consumer, automotive, communications, office automation, and industrial markets.

2-283 Microchip Technology North American Company Profiles

Microchip's embedded control products (microcontrollers, serial and parallel EEPROMs, and high-speed and low- power EPROMs) represented 93 percent of total product sales in fiscal 1996 compared to only eight percent of total product sales in fiscal 1990. The remaining 7 percent in fiscal 1996 was represented by the company’s commodity memory and logic products.

In 1995, Microchip acquired the “KeeLoq” hopping code and secure smart card technology and patents developed by Nanoteq of South Africa. The $10 million acquisition also provided Microchip with worldwide marketing rights to the technology. New products have been, and continue to be, developed that combine the KeeLoq and smart card technology with Microchip’s 8-bit MCUs and serial EEPROMs for enhanced security applications in wireless/remote controlled systems.

Management

Steve Sanghi Chairman, President, and Chief Executive Officer Timothy B. Billington Vice President, Manufacturing Operations Frederick J. Bruwer Vice President, Secure Data Products C. Philip Chapman Vice President, Chief Financial Officer, and Secretary Steve Drehobl Vice President, ASIC Products Division Harold R. Fischer Vice President, Far East Sales Lanny Flessas Vice President, Worldwide Distribution Sales Michael J. Jones Vice President, Human Resources and Information Systems Adrian Kuzdas Vice President, Advanced Microcontroller and Technology Products David S. Lambert Vice President, Process Development and Manufacturing Engineering Robert A. Lanford Vice President, Worldwide Sales Mitchell R. Little Vice President, Standard Microcontroller and ASSP Division Robert J. Lloyd Vice President, Facilities Management Sumit K. Mitra Vice President, Systems and Applications John F. Oatley Vice President, Manufacturing Operations-Pacific Rim Gordon W. Parnell Vice President, Controller, and Treasurer George P. Rigg Vice President, Advanced Microcontroller and Technology Division Richard J. Simoncic Vice President, Memory and Specialty Products Division Howard C. Teeter Vice President, Europe Sales Ernest M. Villicaña Vice President, Advanced Microcontroller and Technology Division Marketing William Yang Vice President, Finance-Pacific Rim Paolo Spadini Vice President, Technology Development

2-284 North American Company Profiles Microchip Technology

Products and Processes

During the 1970's and 1980's, a high-volume ROM and EPROM business was then-General Instrument's primary revenue generator. Since then, however, Microchip has placed designs derived from microcontrollers at the forefront of its strategy, and has limited nonvolatile offerings to specialty areas such as serial EEPROMs. Although commodity EPROM shipments will continue to decrease as a percentage of total sales, the company intends to manage EPROM production levels to maintain optimal manufacturing capacity utilization.

Microchip's integrated circuit products are outlined below. These products are based on CMOS process technology with lithography dimensions down to 0.7µm.

Microcontroller Products • PICmicro™ 8-bit microcontrollers that combine a high-performance RISC processor with one-time- programmable (OTP) EPROM technology or reprogrammable EEPROM or flash memory technology. Current PICmicro™ microcontroller product families include advanced features such as sophisticated timers, embedded A/D converters, extended instruction/data memory, inter-processor communication (I2C/Microwire/SPI™ bus ports and USARTs), and ROM, RAM, EPROM, EEPROM, and flash memories. Some of Microchip’s MCUs operate from power supplies as low as 2.0V.

• In 1996, Microchip unveiled the industry’s first 8-pin MCU family of devices—the PIC12CXXX. The PIC12CXXX packs the 8-bit high-speed RISC architecture of the PICmicro™ families into the smallest footprint microcontroller. The MCU also integrates a 10-bit A/D converter without increasing the pin count.

QuickASIC™ Products • In 1996, Microchip acquired quick-turn ASIC specialist ASIC Technical Solutions, Inc. Microchip is developing the technology to allow the combination of the company’s PICmicro™ MCU core with configurable gate arrays, thereby providing a wider range of flexibility, power ranges, and custom functionality.

EEPROM Products • Serial CMOS EEPROMs with densities ranging from 1K to 64K and featuring data transfer rates up to 1MHz and a 10 million erase/write cycle endurance. The company’s serial EEPROMs are offered with a wide operating voltage range (1.8V to 6.0V). Microchip also developed the world’s first 64K smart serial EEPROM. The company offers the world’s smallest serial EEPROM––in a SOT-23 package.

• Parallel CMOS EEPROMs available in 4K, 16K, and 64K densities with 10,000 to 100,000 erase/write cycles (typ).

EPROM Products • Standard CMOS EPROMs with densities ranging from 64K to 512K. • Low-voltage (as low as 3.0V) CMOS EPROMs with densities ranging from 64K to 512K. • High-speed 256K CMOS EPROMs with access times as fast as 55ns.

2-285 Microchip Technology North American Company Profiles

Secure Data Products • KeeLoq® family of secure data products. The encoder and decoder devices, which feature Microchip’s patented KeeLoq code hopping technology, are suitable for remote keyless entry, logical/physical access control systems, alarm and immobilizer systems, garage door openers, and home security systems.

Semiconductor Fabrication Facilities

Microchip installed a 200mm wafer pilot line in its Fab 2 facility in 1997, and will completely convert the fab over to 200mm wafers over time. Construction of the company’s Fab 3, 200mm wafer fab is expected to begin in 1999- 2000.

Microchip Technology Inc. Microchip Technology Inc. 2355 West Chandler Boulevard 1200 South 52nd Street Chandler, Arizona 85224 Tempe, Arizona 85281 Fab 1 Fab 2 Cleanroom size: 24,000 square feet (Class 10) Cleanroom size: 60,000 square feet (Class 10) Wafer sizes: 125mm, 150mm Wafer size: 150mm, 200mm Process: CMOS Process: CMOS Products: MCUs, EEPROMs, EPROMs, ASSPs Products: MCUs, EEPROMs, ASSPs, ASICs Feature sizes: 0.7µm-1.5µm Feature sizes: 0.7µm-0.9µm

Microchip’s IC products are assembled and tested primarily at a subsidiary in Kaohsiung, Taiwan, at the company’s new test facility near Bangkok, Thailand and by a third-party contractor in Bangkok, Thailand. Other third-party assembly and test suppliers used by Microchip are located in the Philippines and other Asian countries.

2-286 North American Company Profiles Micron Technology

MICRON TECHNOLOGY

Micron Technology, Inc. 8000 South Federal Way P.O. Box 6 Boise, Idaho 83707-0006 Telephone: (208) 368-4000 Fax: (208) 368-4435 Web Site: www.micron.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Micron Technology Japan, K.K. • Minato-ku, Tokyo, Japan Telephone: (81) (3) 3436-5666 • Fax: (81) (3) 3436-1444

Europe: Micron Europe, Ltd. • Crowthorne, Berkshire, United Kingdom Telephone: (44) (1344) 750750 • Fax: (44) (1344) 750710

Asia-Pacific: Micron Semiconductor Asia Pacific Pte. Ltd. • Singapore Telephone: (65) 841-4066 • Fax: (65) 841-4166

Financial History ($M), Fiscal Year Ends August 31

1992 1993 1994 1995 1996 1997 Sales 506 828 1,629 2,953 3,654 3,516 IC Sales 455 737 1,368 2,287 2,210 1,738 Net Income 7 104 401 844 594 332 R&D Expenditures 48 57 83 129 192 209 Capital Expenditures 102 163 377 961 1,699 558

Employees 4,300 4,900 5,400 8,080 9,900 12,200

Ownership: Publicly held. NASDAQ: MU.

Company Overview and Strategy

Micron Technology, Inc. (MTI) was founded in 1978 as a semiconductor design consulting firm. In 1981, the company opened its first fabrication facility, and in late 1982, entered the memory market with a 64K DRAM, which had a significantly smaller die size than competing products.

2-287 Micron Technology North American Company Profiles

Today, Micron is a leading developer and manufacturer of DRAMs, very fast SRAMs, flash memories, and other semiconductor memory components, as well as personal computer systems, Remote Intelligent Communication RIC) chips and systems, flat panel displays, and complex printed circuit board assemblies (90 percent being sold). Its memory products continue to feature some of the smallest die sizes in the industry.

MTI is comprised of several operating subsidiaries and divisions. Among them are Micron Semiconductor Products, Inc., which is responsible for the sales and support of MTI’s semiconductor products; Micron Electronics, Inc., which develops, manufactures, markets, and supports PC systems, workstations, and custom- manufactured printed circuit boards; Micron Display Technology, which develops and manufactures small-area field emission displays (FEDs); Micron Communications, Inc., which develops and manufactures a line of MicroStamp™ remote intelligent communications (RIC) products; and Micron Quantum Devices, which designs, develops, and markets flash memory IC products and systems.

MTI’s customers are primarily computer and computer peripheral manufacturers. Other customers represent the consumer electronics, CAD/CAM, telecommunications, office automation, data processing, and graphics display industries.

Management

Steven R. Appleton Chairman, President, and Chief Executive Officer Donald D. Baldwin Vice President, Sales and Marketing Michael W. Sadler Vice President, Sales Kipp A. Bedard Vice President, Corporate Affairs Eugene H. Cloud Vice President, Marketing Robert M. Donnelly Vice President, Memory Products D. Mark Durcan Vice President, Process Research and Development Jay L. Hawkins Vice President, Operations Roderic W. Lewis Vice President, Legal Affairs, General Counsel, and Corporate Secretary Nancy M. Self Vice President, Administration Steven L. Stout Vice President, Facilities W. G. Stover, Jr. Vice President, Finance and Chief Financial Officer John W. Aiton Vice President, Wafer Fabrication David A. Cathey, Jr. Vice President and General Manager, Display Division Trung T. Doan Vice President, Process Development James E. Mahoney Vice President, Information Systems

2-288 North American Company Profiles Micron Technology

Products and Processes

Micron's semiconductor product strategy is focused on the design, development, and manufacture of memory products, primarily DRAMs, for standard and custom memory applications. In recent years, the company has been applying its core semiconductor technology in other areas, such as RIC products and flat panel displays, in order to diversify its business.

Standard and Specialty DRAMs • 4M, 16M, and 64M standard DRAMs — fast page, extended data-out (EDO). • 16M and 64M synchronous DRAMs (SDRAMs) — offered in speed grades of 12ns/83MHz, 10ns/100MHz, 8ns/125MHz. • 4M EDO DRAMs for graphics applications — x16 configuration and access times as low as 40ns. • 8M synchronous graphics RAMs (SGRAMs) — x32 configuration, with speed grades of 15ns/66MHz, 12ns/83MHz, and 10ns/100MHz. • DRAMs are also offered in bare-die form or module form.

Synchronous SRAMs • 1M, 2M, and 4M flow-through or pipelined burst SRAMs — the flow-through devices support bus frequencies up to 67MHz and the pipelined devices up to 125MHz. • 2M and 4M zero bus turnaround (ZBT) SRAMS — Support 66-167MHz cycle times.

Flash Memories • 2M, 4M, and 8M NOR-type boot block flash memories using Intel-licensed SmartVoltage technology. • 8M and 16M NOR-type sector erase flash memories using Intel-licensed SmartVoltage technology. • Micron introduced a line of solid-state flash memory cards in 2H96.

Communications ICs • The MicroStamp Engine™ is a single-chip device that integrates an 8-bit microcontroller, 256 bytes of SRAM, and a microwave radio to produce a stamp size remote intelligent communications (RIC) product. The MicroStamp unit can be encoded with information and attached to almost any object. The stored data can then be retrieved or modified remotely at distances of 10-20 feet.

Micron’s semiconductor products are based on CMOS process technology, with the majority of chip designs at the 0.30µm and 0.25µm geometry levels. The company’s research and development efforts are focused on shrink versions of its 16M DRAMs, 64M synchronous DRAMs, and a move from 0.3µm to 0.25µm and 0.18µm process technologies. Other development efforts are devoted to 128M, 256M, and 1G DRAMs, and the design of new flash memory and RIC products.

Semiconductor Fabrication Facilities

In 1996, Micron completed the conversion of its 150mm wafer lines (Fabs I/II and III) to 200mm wafers. Furthermore, in mid-1995, the company began construction of a new $2.5 billion 200mm wafer fab complex in Lehi, Utah. However, Micron announced in early 1996 that it would complete only the shell of the fab, and hold off on outfitting and equipping the facility until market conditions warrant. Recently, a back end test facility in Lehi has resumed and will be on line by mid-1998. When completed, the new plant will be capable of processing 10,000 wafers per week, utilizing 0.18µm technology.

2-289 Micron Technology North American Company Profiles

Micron Technology, Inc. Micron Technology, Inc. 8000 South Federal Way 8000 South Federal Way Boise, Idaho 83707-0006 Boise, Idaho 83707-0006 Fab I/II Fab III Cleanroom size: 32,400 square feet Cleanroom size: 32,000 square feet Capacity (wafers/week): 6,500 Capacity (wafers/week): 7,000 Wafer size: 200mm Wafer size: 200mm Process: CMOS Process: CMOS Products: DRAMs, SRAMs, RFID ICs Products: DRAMs, SRAMs, flash memories Feature sizes: 0.35µm-0.25µm Feature sizes: 0.35µm, 0.25µm

Micron Technology, Inc. 8000 South Federal Way Boise, Idaho 83707-0006 Fab IV Capacity (wafers/week): 700 Wafer size: 200mm Process: CMOS Products: Memory R&D Feature sizes: 0.25µm, 0.18µm

Micron’s ICs are tested and assembled at its own facilities located at the site of its headquarters and fabs in Boise, Idaho.

Key Agreements

• Micron, Motorola, and AMD joined together with DuPont Photomasks Inc. (DPI) in 1996 to form a technology venture called DPI Reticle Technology Center, to develop advanced mask technology and provide pilot line fabrication of leading-edge reticles.

• Micron signed a cross-licensing agreement with Intel in 1995 covering flash memory ICs, making Micron a true alternate source for Intel’s flash devices.

• Micron announced in 1992 a memorandum of understanding with NEC on the mutual OEM sales of each other's semiconductor memory products.

• Micron has made a number of agreements to license its known-good die (KGD) technology. Licensees include Honeywell SSEC, Chip Supply, nChip, and Cybex Technologies.

• Micron and LSI announced an embedded memory and logic cooperation agreement.

2-290 North American Company Profiles Microsemi Corporation

MICROSEMI CORPORATION

Microsemi Corporation 2830 South Fairview Street Santa Ana, California 92704 Telephone: (714) 979-8220 Fax: (714) 424-1704 Web Site: www.microsemi.com

IC Manufacturer

Financial History ($), Fiscal Year Ends September 28

1995 1996 1997 Sales 133,881 157,435 163,234 R&D Expenditures 755 1,020 1,161 Net Income 6,053 8,100 11,051

Capital Expenditures 3,765 5,933 6,052

Employees — — 2,503

Ownership: Publicly held. NASDAQ: MSCC.

Company Overview and Strategy

Microsemi Corporation was incorporated in 1960. It changed its name from Microsemiconductor Corporation in February 1983. In 1986, Microsemi purchased the assets of the Allen Bradley PTC transistor business in order to broaden its product line. In 1987, the company acquired Coors Components and renamed it Microsemi Colorado. Also in 1987, Microsemi acquired Salem Scientific in Massachusetts, now known as Sertech Labs. Microsemi acquired General Microcircuits in North Carolina the next year to serve as local source for assembly, screening, and testing of surface mount assemblies for customers on the East Coast. In order to increase foreign sales, Microsemi acquired Watertown, Massachusetts Unitrode Semiconductor Division in 1992.

Microsemi Corporation is a multinational supplier of high-reliability discrete semiconductors, surface mounted assemblies and hi-rel screening and testing services. The company’s power conditioning semiconductor products and custom assemblies are used in a wide array of applications in space, defense, medical and other markets. Applications have ranged from telecommunication satellites to heart pacemakers, x-ray and other medical equipment, automotive, computer and automation products and communications equipment. Customers include Hughes, ITT, Bosch Telecom, Motorola, Lockheed-Martin, Loral, Lucent Technologies and Boeing.

2-291 Microsemi Corporation North American Company Profiles

Management

Philip Frey, Jr. Chairman, President and Chief Executive Officer David R. Sonksen Vice President, Finance, Treasurer, Chief Financial Officer and Secretary Harold R. McKeighan Vice President and General Manager, Microsemi-Scottsdale Lane Jorgensen Vice President and General Manager, Microsemi-Santa Ana Andy T.S. Yuen Vice President, International Operations James M. Thomas Vice President, Human Resources Eduardo R. Fernandez Vice President, Marketing and Sales

Products and Processes

Microsemi’s major high reliability product lines are silicon rectifiers, zener diodes, low leakage and high voltage diodes, temperature compensated zener diodes, transistors and a family of subminiature high power transient suppressor diodes. Commercial products include automatic surge protectors, transient suppressor diodes used for telephone applications and computer switching diodes used in computer systems.

New products include Microsemi Santa Ana’s revolutionary ThinKey™ technology (patent efforts commenced) uses a pressed and metallized ceramic frame, solid metal pads and seal rings, and direct high temperature solder bond. This ultra-compact packaging technology allows miniaturization of existing designs. The ThinKey™ tips the scales at 1.0 grams maximum. Equally impressive is a thermal resistance of less than 0.5°C/W. The ThinKey1 package will hold a 100A Schottky die from 20-100V.

Semiconductor Fabrication Facilities

Microsemi’s domestic semiconductor plants manufacture and process all products and assemblies starting from purchased silicon wafers and piece parts. The principal domestic semiconductor manufacturing operations are located in Santa Ana, California; Broomfield, Colorado; Scottsdale, Arizona and Watertown, Massachusetts. Each plant operates its own wafer processing, assembly, testing and high reliability testing and screening departments.

The Scottsdale, Arizona plant was opened in 1982. It is a 137,000 square foot facility that is MIL-certified to MIL-S- 19500 (JANS). In-house capabilities include a full wafer fab, assembly and screening, including hi-rel.

The Microsemic Corporation Santa Ana, CA facility is 100,000 square foot and houses a new wafer processing building and expanded hi-rel manufacturing and test area. It is MIL-certified to MIL-S-19500 (JANS). Process capabilities include voidless, hermetically sealed, clear glass, thermally matched and metallurgically bonded construction.

Microsemi Colorado, acquired in 1987, supplies high-power Schottky diodes and rectifiers primarily to the commercial markets. It is a 115,000 square foot facility that is MIL-I-45208, MIL-S-19500 (JANS) and IS09001 certified. It has a Class 100 wafer fab.

Microsemi Chatsworth, established in 1991, provides low cost commercial parts.

2-292 North American Company Profiles Microsemi Corporation

The Microsemi RF Products facility, Montgomeryville, Pennsylvania, is MIL-certified to MIL-S-19500.

The Microsemi PPC, Inc. facility is located in Riviera Beach, Florida.

Microsemi Watertown is a 164,600 square foot facility MIL-certified to MIL-S-19500. Located nearby is Microsemi’s Sertech Labs.

Microsemi’s Bombay, India facility assembles a commercial zener diode line for the purpose of competing in the lower-cost commercial and consumer markets. This plant also performs subcontract coil manufacturing.

Microsemi’s Hong Kong subsidiary, Microsemi (H.K.) Ltd., produces diode products for major commercial customers. The Hong Kong subsidiary utilizes diode chips manufactured in Microsemi’s U.S. plants and assembles, tests and finishes the products. The plant is approved for assembly of certain military specified diodes.

Microsemi’s Ennis, Ireland operation manufactures diodes, rectifiers, zeners, thyristors and transistors and supports the other Microsemi operations. This plant is Defense Electronics Supply Center (DESC) approved by the U.S. government to screen high reliability product to Military Specification Standard MIL-S-19500 and is also European Space Agency qualified.

Microsemi Micro Electra is located in Tijuana, Mexico.

Key Agreements

• In October 1996, Microsemi RF Products, Inc. (RF), formerly known as Micro Acquisition Corporation, a wholly owned subsidiary of Microsemi, purchased certain assets and the right to manufacture a selected group of products of the high-reliability portion of SGS-Thomson's Radio Frequency Semiconductor business in Montgomeryville, Pennsylvania (RF Products).

• In September 1997, Microsemi PPC, Inc. (PPC), formerly known as Micro PPC Acquisition Corp., a wholly owned subsidiary of Microsemi, purchased all of the assets and assumed certain liabilities of three affiliated companies: PPC Products Corporation, Technett Seals Inc., and Semiconductors, Inc. (collectively referred to as PPC Products). PPC Products is a supplier of power transistors, fixed and adjustable linear regulators and power rectifiers and is located in Riviera Beach, Florida. The aggregate purchase price for RF Products and PPC Products included $5,201,000 in cash and a $3,070,000 in notes payable.

2-293 Microwave Monolithics North American Company Profiles

MICROWAVE MONOLITHICS, INC. (MMINC.)

Microwave Monolithics, Inc. (MMInc.) 465 E. Easy Street Simi Valley, CA 93065 Telephone: (805) 584-6642 Fax: (805) 584-9594 Web Site: micro-mono.com Email: [email protected]

IC Manufacturer

Ownership: Privately held.

Company Overview and Strategy

Microwave Monolithics, Incorporated was founded in 1982, to supply Gallium Arsenide custom microwave components and integrated circuits. MMInc supplies components to the government and OEM community.

The company operates an in-house GaAs foundry to develop the technology and to supply the chips for the final products.

2-294 North American Company Profiles Microwave Technology

MICROWAVE TECHNOLOGY

Microwave Technology 4268 Solar Way Fremont, CA 94538 Don Apte, New Business Development Telephone: (510) 651-6700 Fax: (510) 651-2208

IC Manufacturer

Company Overview and Strategy

Microwave Technology is a vertically integrated supplier of GaAs and silicon components. The primary market is defense electronics and commercial systems such as microwave links. Other markets include power modules for wireless applications.

2-295 Mitel Semiconductor North American Company Profiles

MITEL SEMICONDUCTOR

Mitel Semiconductor 360 Legget Drive P.O. Box 13089 Kanata, Ontario Canada K2K 1X3 Telephone: (613) 592-2122 Fax: (613) 592-6909 Web Site: www.semicon.mitel.com

Designer and Manufacturer of Microelectronic Components

Regional Headquarters/Representative Locations

North America: Mitel Semiconductor • Fayetteville, Georgia Telephone: (770) 486-0194 • Fax: (770) 631-8213

Financial History ($M, Canadian)

1992 1993 1994 1995 1996 1997 Sales* 45 69 80 110 197 260 R&D Expenditures 8 6 7 9 17 20

Employees 529 552 564 633 1,061 1,157

*External sales only. Mitel Semiconductor also supplies ICs and hybrids to its parent Mitel Corporation.

Ownership: Publicly held. NASDAQ: MLT.

Company Overview and Strategy

Mitel Semiconductor is a designer, manufacturer and supplier of integrated circuits, optoelectronic and analog line components. These products are used in telecommunications, data communications, video, aerospace, industrial, instrumentation, and medical applications. Mitel shares the knowledge they apply to their design and manufacturing activities through a special Custom Wafer Fabrication service, Global Design Support team and Customer Care Center.

In March 1996, Mitel Semiconductor acquired Swedish semiconductor manufacturer ABB Hafo.

2-296 North American Company Profiles Mitel Semiconductor

In February 1998, Mitel Semiconductor acquired Plessey Semiconductors. Headquartered in Swindon, UK, Plessey provides cost effective IC solutions for the communications, consumer and computer markets through five business units: ASICs, communications, media, PC systems and power/automotive. This acquisition gives Mitel Semiconductor immediate access to leading edge technologies, design expertise, complementary product lines and three wafer fabrication facilities.

Management

John Millard President and Chief Executive Officer, Mitel Corporation Francois Cordeau Vice President and General Manager, Semiconductor Division

Products and Processes

Mitel Semiconductor's product line of microelectronic devices include communications integrated circuits, analog line components, silicon foundry services, ASICs and optoelectronic devices.

Semiconductor Fabrication Facilities

Mitel Semiconductor is in the process of upgrading its Bromont fabrication facility to 150mm wafers. Additional 100mm capacity is also being added to the Järfälla facility in Sweden.

Mitel Semiconductor Mitel Semiconductor AB 18 Airport Boulevard Bruttovägen 1, P.O. Box 520 Bromont, Quebec, Canada J2L 1S7 S-175 26 Järfälla, Sweden Telephone: (514) 534-2321 Telephone: (46) (8) 580 24500 Fax: (514) 534-2168 Fax: (46) (8) 580 20110 Cleanroom size: 25,000 square feet Cleanroom size: 13,000 square feet Capacity (wafers/week): 2,400 Capacity (wafers/week): 1,000 Wafer size: 150mm, 100mm Wafer size: 100mm Processes: CMOS, double poly/triple metal, Processes: CMOS, DMOS, SOS CD, metal gate. Feature sizes: 1.25µm, 1.5µm, 2.0µm, 3.0µm Feature sizes: 0.8µm, 1.2µm, 1.5µm, 2.0µm, 3.0µm, 4.0µm, 5.0µm, 9.0µm.

2-297 Mitel Semiconductor North American Company Profiles

MITEL SEMICONDUCTOR [FORMERLY GEC PLESSEY SEMICONDUCTORS (GPS)]

GEC Plessey Semiconductors Cheney Manor, Swindon Wilshire SN2 2QW United Kingdom Telephone: (44) (1793) 518000 Fax: (44) (1793) 518411 Web Site: www.gpsemi.com

IC Manufacturer

Regional Headquarters/Representative Locations

North America:GEC Plessey Semiconductors • Scotts Valley, California Telephone: (408) 438-2900 • Fax: (408) 438-7023

Japan: GEC Plessey Semiconductors • Chiyoda-ku, Tokyo, Japan Telephone: (81) (3) 5276-5501 • Fax: (81) (3) 5276-5510

Asia-Pacific: GEC Plessey Semiconductors • Taipei, Taiwan Telephone: (886) (2) 5461260 • Fax: (886) (2) 7190260

Financial History ($M)

1992 1993 1994 1995 1996 Sales 383 311 337 377 340 IC Sales 352 290 312 342 305 Discrete Sales 31 21 25 35 35 R&D Expenditures — — 50 60 60 Capital Expenditures 44 44 64 155 60

Employees 3,500 3,300 3,300 3,000 2,700

Company Overview and Strategy

GEC Plessey Semiconductors (GPS) was originally established as Plessey Semiconductors in 1966. The company became a wholly owned subsidiary of The General Electric Company plc. of England and merged with Marconi in 1990.

2-298 North American Company Profiles Mitel Semiconductor

GPS designs, produces, and markets ASICs and ASSPs aimed at three high growth market segments — communications, computing, and consumer electronics. Applications within these markets include personal radio communications (including wireless LANs and global positioning), computer peripherals, networks, and televisions. Its technological strengths lie in a high market penetration of RF front ends, tuning, and frequency synthesis for both radio and TV. This is backed by expertise in high speed, high complexity digital signal processing and RISC processing, and broad-based experience and capability in semicustom products. The company is a leading supplier of the ARM RISC processor and of CMOS ASIC devices.

The company can be viewed as two operating divisions: Integrated Circuits and Power Semiconductors. As well as marketing conventional high power discretes, the Power division has launched a new range of high power IGBTs.

Product development within GPS’ core market areas are focused on mobile telecommunications, multimedia, and networks.

Management

GEC Plessey Semiconductors Tom Urwin Managing Director John Brothers Director, Technology Alan Capper Director, Lincoln Business Unit Chris Moynihan Director, Personnel Ian Cooper Director, Legal Barry Dennington Director, ASIC System Business Unit Tony Gallagher Director, Finance Ray Gleason Director, Media Business Unit Phil Pollok Director, Communications Business Unit Ernie Pusey Director, Sales and Marketing John Read Director, PC Systems Business Unit

GEC Plessey Semiconductors Inc. (U.S.) T.B.A. President and General Manager

2-299 Mitel Semiconductor North American Company Profiles

Products and Processes

GEC Plessey Semiconductors offers a broad range of standard and semicustom ICs in linear, mixed-signal, and digital CMOS, bipolar, and silicon-on-sapphire (SOS) technologies. In addition to these technologies, GPS has extensive hybrid and microwave capabilities, plus power semiconductor products.

The company’s semicustom ICs include CMOS gate arrays, embedded arrays, and standard cells; bipolar standard cells; and gate arrays and standard cells based on SOS technology for radiation-hardened applications.

GPS’ standard semiconductor products include personal communications circuits, satellite/cable/television ICs, video/image processors, fiber optic link/LAN devices, global positioning products, radio circuits, digital signal processing ICs, data converters (ADCs and DACs), automotive/industrial/medical components, content addressable memories (CAMs), linear and logarithmic amplifiers, ARM 32-bit RISC processors and microcontrollers, and radiation-hardened (SOS) devices such as MPUs, peripherals, memories, bus products, and standard logic chips. GPS also markets high power discretes and IGBTs.

MOS MEMORY ANALOG DRAM ✔ Amplifier SRAM ✔ Interface Flash Memory ✔ Consumer/Automotive EPROM Voltage Regulator/Reference ROM ✔ Data Conversion EEPROM Comparator ✔ Other (Including Non-Volatile RAM) ✔ Other (Includes Telecom)

MOS LOGIC DIGITAL BIPOLAR ✔ General Purpose Logic Bipolar Memory ✔ Gate Array General Purpose Logic ✔ Standard Cell ✔ Gate Array/Standard Cell Field Programmable Logic Field Programmable Logic ✔ Other Special Purpose Logic Other Special Purpose Logic MPU/MCU/MPR MOS MICROCOMPONENT ✔ MPU OTHER ✔ MCU ✔ Full Custom IC ✔ MPR ✔ Discrete ✔ DSP Optoelectronic

By the year 2000, the company expects to have 60 percent of its revenue come from the sales of CMOS products. Meanwhile, bipolar revenues are expected to decrease as a percent of total revenues to about 30 percent by the year 2000. Power discretes and high power IGBTs will make up about 10 percent.

2-300 North American Company Profiles Mitel Semiconductor

In 1997, GPS began prototyping its first 0.35µm CMOS ICs. A 1.8V, 0.18µm CMOS process is expected to be employed by the end of the decade. For bipolar, the company has 0.5µm, 5V and 2.7V, triple-metal-layer processes in production. In addition, the company is developing a silicon germanium (SiGe) process.

Semiconductor Fabrication Facilities

The company has secured foundry partners to supplement its own wafer manufacturing capacity. The company’s policy is to draw 30-35 percent of its manufacturing capacity from foundries, in addition to retaining its own in- house manufacturing sources. To help move its production process capability to 0.25µm feature sizes, the company is considering further wafer fab partnerships.

GEC Plessey Semiconductors GEC Plessey Semiconductors Cheney Manor Tamerton Road Swindon, Wilshire SN2 2QW Roborough United Kingdom Plymouth Devon PC6 7BQ Telephone: (44) (1793) 518000 United Kingdom Cleanroom size: 21,500 square feet Telephone: (44) (1752) 693000 Capacity (wafers/week): 2,000 Cleanroom size: 28,800 square feet Wafer sizes: 100mm, 150mm Capacity (wafers/week): 1,500 Process: Bipolar Wafer sizes: 150mm, 200mm Products: ASICs, linear ICs Process: CMOS Feature sizes: 0.35µm, 0.5µm, 0.8µm Products: ASICs, MPUs, DSPs Feature sizes: 0.35µm, 0.6µm, 0.8µm

GEC Plessey Semiconductors GEC Plessey Semiconductors Lansdowne Road Lincoln, United Kingdom Chadderton, Oldham OL9 9TY Telephone: (44) (1522) 500500 United Kingdom Cleanroom size: 47,100 square feet Telephone: (44) (161) 624-0515 Capacity (wafers/week): 3,250 Cleanroom size: 21,500 square feet Wafer size: 100mm Wafer size: 100mm Processes: CMOS, SOS/rad-hard Process: Bipolar Products: ASICs, SOS, power devices Products: ASICs, linear and mixed-signal ICs Feature size: 1.0µm Feature size: 0.8µm

Key Agreements

• GPS is involved with the European cooperatives Esprit, Alvey, RACE, and JESSI.

• GPS is a licensed design product partner and manufacturer of the ARM RISC microprocessor.

• GPS licensed the PineDSPCore and related development tools from DSP Group Inc. in 1994. GPS is using the 16-bit, fixed-point DSP core in ASICs and ASSPs for multimedia PC and cellular phone applications.

2-301 MMC Networks North American Company Profiles

MMC NETWORKS

MMC Networks, Inc. 1134 E. Arques Avenue Sunnyvale, CA 94086 Telephone: (408) 731-1600 Fax: (408) 731-1660 Web Site: www.mmcnet.com

Fabless IC Supplier

Financial History ($), Fiscal Year Ends December 31

1995 1996 1997 Sales 577 10,515 21,930 R&D Expenditures 1,802 3,312 8,318 Net Income (loss) (2,576) 702 1,196 Capital Equipment Expenses — — 3,200

Employees — — 88

Ownership: Publicly held. NASDAQ: MMCN.

Revenues for the first quarter of 1998 were $9.6 million, up 181 percent from $3.4 million in revenues reported in the first quarter of 1997, and up 26 percent from the $7.6 million reported in the fourth quarter of 1997. Net income for the first quarter of 1998 was $1.2 million versus net income of $186,000 for the first quarter of 1997, and net income of $639,000 for the fourth quarter of 1997. The company also stated it was on schedule to begin volume shipments of the AnyFlow product family in the second half of 1998.

Company Overview and Strategy

Incorporated in September 1992, MMC Networks is a developer and fabless supplier of high-performance, open- architecture, software-programmable processors optimized for networking applications.

MMC’s products include the PS1000 and ATMS2000 families of network processors. These processors provide the core functionality of high-performance Fast Ethernet and Asynchronous Transfer Mode (ATM) networking equipment, respectively. The company believes that network equipment vendors are able to reduce design and development costs and accelerate product development cycles for high-performance routers and switches by using its products. All of the company's products are based on its proprietary ViX architecture, which enables network equipment vendors to easily and cost-effectively implement high-performance, value-added features in their switch and router products.

2-302 North American Company Profiles MMC Networks

MMC expanded its product portfolio in 1997 by introducing Per-Flow Queuing technology in May, allowing service providers to provide priority services for intranet and Internet users on a per-user basis. In September, MMC introduced the AnyFlow 5000 product family of network processors, which allows network equipment vendors to offer ATM-class Quality of Service on TCP/IP networks for individual user flow.

Key elements of MMC’s strategy include targeting high-growth markets, facilitating customer success, extending its technology leadership and leveraging its fabless semiconductor model.

Customers include major networking and communications companies such as Cisco Systems, D-Link, Fujitsu, Hitachi, N-Base, NEC, Olicom, SNT, Sumitomo, and Toshiba. MMC’s customers employ the Company's network processors to develop and market multi-gigabit, wire-speed switches and routers with advanced features such as layer 3 switching, internetworking of LANs and WANs, security, class of service, quality of service and network management.

MMC has direct sales offices in Chelmsford, MA and Tokyo, Japan, as well as nine manufacturer representatives in the U.S., four in Canada, and one each in the UK, Israel, Japan, and Taiwan.

Management

Prabhat K. Dubey President and Chief Executive Officer Amos Wilnai Chairman of the Board and Executive Vice President, Bus Development Uday Bellary Vice President, Finance, Chief Financial Officer and Assistant Secretary Sena C. Reddy Executive Vice President, Operations Alexander Joffe Vice President, Engineering John A. Teegen Vice President, Sales Brent R. Bilger Vice President, Marketing

Products and Processes

MMC Networks’ products are based on several of its proprietary technologies, of which the ViX architecture is the foundation. Other core technologies include its Per Flow Queuing (PFQ) technology, Direct Replication Engine technology, Virtual SAR technology and Programmable BitStream Processor technology.

The ViX architecture is a switch fabric architecture that uses a patented point-to-point connection matrix that permits the use of a wide, centralized, shared-memory structure, while separating control information from user data. The ViX architecture's use of "point-to-point connections" is designed to enable network equipment vendors to easily scale the number of ports in their switches and routers, unlike shared-bus architectures that run into clock frequency, bus capacitance and pin count limitations. The use of a "wide, centralized shared-memory structure" enables network equipment vendors to scale the bandwidth and amount of buffer memory, unlike crossbar architectures which become increasingly expensive as bandwidth and buffer requirements increase. The "separation of control information from user data" enables network equipment vendors to more easily implement high-performance processing, queuing, replication and switching functions for networking applications, unlike shared-bus and crossbar architectures, which may require complex processors to coordinate multiple functions across multiple ports and the replication of user data within their buffers. In addition, the ViX architecture is designed as an open architecture, providing external access to the appropriate timing and control signals, which enables network equipment vendors to more easily implement differentiated features and functionality.

2-303 MMC Networks North American Company Profiles

MMC’s proprietary Per Flow Queuing (PFQ) technology extends the ViX architecture to support class of service and quality of service for network switches. PFQ is designed to alleviate the limitations of FIFO queuing by assigning each piece of data to its own unique queue and then scheduling the sending of the data according to software-programmable algorithms developed by the network equipment vendor, thus allowing the switch or router to implement class of service or quality of service functionality. Switches and routers incorporating PFQ technology can be designed to support up to 500,000 queues, providing enough queues for large-scale networks.

MMC’s Direct Replication Engine Technology is designed to provide wire-speed multicast and broadcast capability by leveraging the separation of control information from user data enabled by the ViX architecture. This capability allows the switch or router to store a single copy of the data to be transmitted and replicate it to multiple ports in a single instruction cycle.

MMC’s Virtual SAR technology provides the ability to convert frames to cells, and vice versa, in internetworking of ATM with Ethernet, frame relay and other packet-based protocols, thus eliminating the need for expensive external SAR chips. Conventional switches and routers use more expensive segmentation and reassembly ("SAR") chips to convert frames to cells and vice versa.

MMC Networks' Programmable BitStream Processor technology performs the processing of packet and cell headers including such functions as real-time parsing, matching and table look-up, as well as bit stream manipulations such as adding, deleting, substituting, appending and pre-pending. This functionality enables network equipment vendors to build high-performance switches and routers with additional services that address network security, class of service and quality of service and improve management throughout the network.

In addition to MMC Networks’ ViX architecture patent, MMC has received notice that two additional patents will issue. Further, MMC has filed 24 other patent applications, 13 in the U.S. and 11 outside the United States, relating to other aspects of systems employing the ViX architecture. None of the Company's patent applications relate to specific products of the Company, such as the ATMS2000 and PS1000 lines of network processors.

MMC’s PS1000 network processor family implements the core functionality of a high-performance Fast Ethernet switch, provides extensions for layer 3 routing and is optimized for power workgroup, wiring closet and LAN backbone applications. The PS1000 family enables network equipment vendors to build low-cost, highly- integrated solutions supporting scalable port densities from eight to 128 10-Mbps Ethernet ports and up to 32 100-Mbps Fast Ethernet ports with the option of one or two ATM uplinks.

The PS1000 family includes the PS1001 PSP, a packet switch processor which provides the central core of the switching operation; the PS1002 FEIU, a Fast Ethernet interface unit comprised of four 10/100-Mbps full-duplex Fast Ethernet MAC ports; the PS1003 EIU Ethernet interface unit comprised of six 10-Mbps MAC ports and two 10/100-Mbps MAC ports; the PS1004 AIU ATM interface unit that provides an ATM uplink for Ethernet switches; the PS1005 ARL Address resolution logic device that provides full frame forwarding and filtering logic; the PS1007 NCB Network component interconnect ("NCI") bus to CPU bridge; and the PS1008 NPB NCI bus to PCI bus bridge.

2-304 North American Company Profiles MMC Networks

MMC’s ATMS2000 network processor family provides the core functionality of a high-performance ATM switch, the capabilities for layer 3 routing and is optimized for feature-rich building or campus backbones, power workgroups and WAN access. The ATMS2000 family is targeted for 2.5- or 5-Gbps switches and routers with port densities of up to 32 OC-3 ports or eight OC-12 ports. The ATMS2000 family includes the ATMS2001 Memory access buffer; the ATMS2002 Port interface; the ATMS2003 Switch controller which manages data queues and provides an SWC1 interface to the CPU; the ATMS2004 Switch controller which manages the reading and writing of data to SWC2 various external data structures and performs pipeline control; the ATMS2101 Optional feature chipset that monitors and polices cell traffic, Xchecker providing statistics, usage parameter control and/or packet discard; the ATMS2110 Optional feature chipset that offloads cell reception and Xport transmission from the CPU; and the ATMS2200 Co-processor that implements PFQ-based Xstream.

MMC Networks' AnyFlow 5000 network processor family implements the company's new Virtual SAR and Programmable BitStream Processor technologies. The AnyFlow 5000 family employs a modular design which enables a wide range of networking equipment, including both Ethernet and ATM switches and routers. The AnyFlow 5000 network processors are designed to provide Layer 3 switching and routing with quality of service and packet/cell internetworking at a bandwidth of 20Gbps and with throughput of up to 20 million packets-per- second. AnyFlow network processors scale up to 128 Fast Ethernet or ATM OC-3 ports, 16 Gigabit Ethernet ports or 32 ATM OC-12 ports. Samples of the AnyFlow 5000 products have been available since the fourth quarter of 1997.

MMC Networks’ fabrication suppliers use mainstream CMOS processes for the manufacturing of its products instead of depending on leading edge processes in order to help reduce technical risks and production capacity constraints. MMC’s main products currently are fabricated in 0.35, 0.5 and 0.8 micron CMOS. MMC has commenced migration of some unspecified products to smaller geometries in order to remain competitive in those product lines.

Semiconductor Fabrication Facilities

MMC Networks is a fabless IC supplier. Fabrication is outsourced to Motorola in the U.S., Oki Semiconductor and NEC in Japan, and TSMC in Taiwan.

In 1995 and 1996, MMC Networks subcontracted its semiconductor manufacturing to Oki Semiconductor and NEC in Japan and Motorola, Inc. in the United States. In 1997, MMC added Taiwan Semiconductor Manufacturing Corporation (TSMC) to its fab partners. In 1998, MMC expects a growing percentage of its production will be contracted to TSMC and potentially other new suppliers as new products reach volume production. Only one of MMC's products is currently manufactured by more than one supplier.

Because MMC has experienced only limited ability to react to fluctuations in product demand, the company plans to assume more of the product manufacturing responsibilities. This will include contracting for wafer manufacturing and subcontracting for assembly and test rather than purchasing finished product. To this end, MMC has begun investing in design tools, libraries and personnel with the expectation of assuming greater manufacturing responsibilities by mid-1998.

MMC also began sourcing unknown products from Hitachi Computer Products (America), Inc. in April 1997.

2-305 MMC Networks North American Company Profiles

Key Agreements

• In 1997, MMC licensed Packet Engines Inc.’s (Spokane, WA) Gigabit Ethernet Media Access Control (MAC) chip technology. The technology serves as both a complement and a hedge to MMC’s 3 layer switching-based products.

• In June 1996, MMC joined the Gigabit Ethernet Alliance, a multi-vendor effort aimed at providing customers with open, cost-effective and interoperable Gigabit Ethernet solutions. The Alliance supports the CSMA/CD (Carrier Sense Multiple Access with Collision Detection) protocol of the original Ethernet standard.

• In February 1995, MMC joined the Flow Control Consortium, now called the Quantum Flow Control (QFC) Alliance, an organization formed to complete a flow control protocol that can comprehensively meet the requirements of ATM Available Bit Rate Service.

• In December 1994, MMC signed a Development, License and Purchase Agreement with Cisco Systems, Inc. This covered codevelopment of ViX technology and usage licenses for various MMC processors to be incorporated into Cisco products.

2-306 North American Company Profiles Mosaic Semiconductor

MOSAIC SEMICONDUCTOR

Mosaic Semiconductor, Inc. 7420 Carroll Road, Suite 300 San Diego, California 92121-9727 Telephone: (619) 271-4565 Fax: (619) 271-6058 Web Site: www.syntaq.com

Fabless IC Supplier

Employees: 25

Ownership: Privately held. Division of Syntaq. Inc.

Company Overview and Strategy

Founded in 1988, Mosaic Semiconductor is a supplier of high density memory components and systems for military, aerospace, industrial, and medical markets. Mosaic's customers are mainly in the U.S. and Canada. European customers are serviced by the England-based operation, HMP.

Management

David Armstrong President and Chief Executive Officer Anthony Swaddle Executive Vice President and General Manager Jaime Conde Manager, North American Sales

Products and Processes

Mosaic’s memory products include EPROM, EEPROM, FLASH and SRAM in 8-, 16-, and 32-bit widths, and are available in both ceramic and hi-rel plastic packages. Screening levels available range from commercial to MIL-STD- 883B screen.

Semiconductor Fabrication Facilities

Mosaic's ICs are currently manufactured by various North American and off-shore semiconductor manufacturers. The company maintains an assembly, test, and package design facility in San Diego.

2-307 MOSAID Technologies North American Company Profiles

MOSAID TECHNOLOGIES

MOSAID Technologies Incorporated P.O. Box 13579 Kanata, Ontario Canada K2K 1X6 Telephone: (613) 836-3134 Fax: (613) 831-0796 Web Site: www.mosaid.com Email: [email protected]

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends April 30

1992 1993 1994 1995 1996 1997 1998 Sales 7 10 15 24 38 40 41 Net Income (1) 2 3 4 8 4 5 R&D Expenditures 2 2 3 5 7 10 14

Employees 61 58 74 93 132 167 190

Company Overview and Strategy

MOSAID Technologies was founded in 1975, to provide MOS memory design and consulting services. Today, MOSAID is the leading independent memory chip design house and the leading supplier of engineering memory test systems. The company operates from two separate but synergistic divisions: the Semiconductor Division, which designs advanced memory chips for both standard and application-specific memory (ASM) requirements, and the Systems Division, which designs, manufactures, markets and services memory test systems focused primarily on engineering test requirements.

2-308 North American Company Profiles MOSAID Technologies

Management

Richard C. Foss, Ph.D. Chairman George J.J. Cwynar President and Chief Executive Officer Richard D. Broadway Senior Vice President, Finance and Administration, and Chief Financial Officer Robert C. Albrow Vice President, Strategic and Technical Development G. Glen Evans Vice President and General Manager, Systems Division Dan Mathers Vice President and General Manager, Semiconductor Division

Products and Processes

MOSAID has experience in nine generations of DRAM designs, from 4K to 256M. Some recent memory chip designs include: a 125MHz, DDR, 256M SDRAM, a 143MHz, four-bank, 64M SDRAM supporting x4, x8, and x16 configurations, a high-performance 16M synchronous DRAM that supports data transfer rates of up to 200Mbps, a low-voltage 16M DRAM upgrading the capabilities of portable computers, a low-voltage wide-word 4M DRAM, and a low-power SRAM. MOSAID has extended this expertise to provide optimized, merged memory and logic solutions for accelerating bandwidth limited applications in markets including telecommunication, data communication and security.

Macrocell designs intended for use as blocks within ASICs include high-speed pipelined SRAMs and DACs for RAMDAC function, high-performance embedded DRAM, and HDRAM™ (high-density DRAM) — MOSAID’s proprietary DRAM technology for single poly logic processes. A yield enhancement vehicle closely integrated with MOSAID’s engineering testers is also available.

Mosaid is ISO 9001 registered.

Key Agreements

• MOSAID has been selected to design the next generation SLDRAM on behalf of the SLDRAM consortium using an advanced 0.25 micron DRAM process jointly developed by Siemens, IBM and Toshiba.

• MOSAID announced in February 1997, that its HDRAM embedded memory technology would be ported to TSMC’s 0.35µm logic process.

• MOSAID signed a distribution agreement with Synopsys Inc. in February 1997, for the integration of the company’s HDRAM technology into Synopsys’ cell-based array technology.

• MOSAID announced a cooperative development agreement with Oki Electric Company in July 1996, for the development of an advanced 16M SDRAM and a 64M Outer Data Inner Control SDRAM.

• In 1994, MOSAID teamed up with Symbionics Ltd., Standard Microsystems Corp., and three venture capital firms to form the joint venture company Accelerix, which has developed a single-chip graphics accelerator using an advanced Blend IC merged DRAM/logic process from TSMC.

2-309 Motorola North American Company Profiles

MOTOROLA

Motorola, Inc. Semiconductor Products Sector (SPS) 3102 North 56th Street Phoenix, Arizona 85018 Telephone: (602) 244-6900 Fax: (602) 952-4067 Web Site: www.motorola.com/sps

IC Manufacturer Founded: 1928

(See Top Ten)

2-310 North American Company Profiles MUSIC Semiconductors, Inc.

MUSIC SEMICONDUCTORS, INC.

MUSIC Semiconductors, Inc. 254B Mountain Ave. Hackettstown, New Jersey 07840 Telephone: (908) 979-1010 Fax: (908) 979-1035 Web Site: www.music.com Email: [email protected]

Fabless IC Manufacturer Founded: 1986

Regional Offices/Representative Locations

Far East: Far East Headquarters - Special Export Processing Zone 1, Philippines Telephone: (63) 92 549-1480 • Fax: (63) 92 549-1024

Europe: Europe Headquarters - Netherlands Telephone: (31) (45) 546-2177 • Fax: (31) (45) 546-3663

Japan MUSIC Semiconductors/Microtek – Tokyo, Japan Telephone: (81) (3) 5300-5525 • Fax: (81) (3) 5300-5520

Employees: 100

Ownership: Privately held.

Company Overview and Strategy

MUSIC Semiconductors, Inc. designs, manufactures, and markets advanced semiconductor devices that accelerate crucial functions within network switching and routing systems. MUSIC’s existing products are specialty ASSPs (application specific standard products) — address and header processor circuits based on MUSIC’s proprietary patented content-addressable memory (CAM) technology.

1997 annual sales are estimated to be in the $10 to $25M range.

Management

Stephen Stas President

2-311 MUSIC Semiconductors, Inc. North American Company Profiles

Products and Processes

MUSIC’s CAM technology targets the fundamental function of message routing within global networks. The CAM product family makes address and header processing more efficient at every network intersection, within every router, bridge, hub, switch, and file server. Details on this product family are described below.

LANCAM 1st Family – consists of high density content-addressable memories (CAMs) in a variety of depths. Like the other LANCAM series, the LANCAM 1st is ideal for time critical applications requiring intensive list processing. Applications include list processing where space and cost are important (i.e., high-performance desktop and workgroup bridges and switches, and remote access servers).

List-XL – The MU9C364oL List-XL is a 256 word by 64-bit CAM, ideal for time critical applications requiring intensive list processing where space and cost are important. Applications include cost sensitive, high- performance desktop and workgroup bridges and switches; and remote access servers.

LANCAM A/L Family – consists of CAMs designed for address filtering applications in Local Area Network bridges and routers. The architecture of the LANCAMs allow a network station list of any length to be searched in a single memory transaction. The devices are also well suited for other high-speed data search applications such as virtual memories, optical and magnetic disk Caches, database accelerators, data compressors and image processors.

ATMCAMs – are CAMs with a 32-bit wide data interface. The device is designed for use in ATM switches and routers to provide very high throughput VPI/VCI translation via lookup tables held in external RAM, VPI/VCI fields from the ATM cell header are compared against a list of current connections stored in the CAM array.

WidePort LANCAM Family – consists of CAMs featuring 32-bit wide interface. This interface doubles the available I/O bandwidth in many applications while maintaining the same powerful architecture and instruction set of the LANCAMs. Applications include high-performance desktop, workgroup, edge and backbone switches and routers; up to 16 port, 100Mb Ethernet switches; remote access server; real-time compression/decompression engines.

LANCAM MP Family – consists of CAMs 128-bits wide, featuring 32-bit wide interfaces. The interface doubles the available I/O bandwidth in many applications while maintaining the same powerful architecture and instruction set of the LANCAMs. Applications include 64-bit Ipv6 bridges, switches and routers.

MUAA CAM Family – consists of 80-bit wide CAMs available in depths of 2K-, 4K-, and 8K-bit words. The MUAA CAM can perform normal CAM functions such as search, insert, and delete on single entries and can age multiple entries simultaneously. In addition, there is a learn instruction, particularly useful in networking applications. Applications include Ethernet edge and backbone switches and routers.

ASSPs – MUSIC ASSPs include Source Routing Transparent Interface for use in Token Ring LAN bridges and routers or use in FDDI LAN bridges and routers. Ethernet interface ASSPs are also available, which speed up bridging operations using Ethernet controller chips with serial NRZ data outputs.

2-312 North American Company Profiles MUSIC Semiconductors, Inc.

Semiconductor Fabrication Facilities

MUSIC relies on semiconductor foundries with sub-micron capabilities in Taiwan and Japan. The company utilizes assembly contractors in Taiwan and the Philippines, under the supervision of its own test and quality assurance departments.

2-313 MX-COM, Inc. North American Company Profiles

MX-COM, INC.

MX-COM, Inc./Semiconductor Division 4800 Bethania Station Rd. Winston-Salem, North Carolina 27105 Telephone: (336) 744-5050 Fax: (336) 744-5054 Web Site: www.mxcom.com

Fabless IC Supplier

Parent Company/Divisions

CML Microsystems Plc. Group Witham, Essex CM8 3TD United Kingdom Telephone: (44) 1376-513833 Fax: (44) 1376-518247 Web Site: www.cmlmicro.com

Consumer Microcircuits Limited (CML) • United Kingdom Telephone: (44) 1376 513833 • Fax: (44) 1376 518247

CML Microcircuits (Singapore) Pte. Ltd. • Singapore Telephone: (65) 7450426 • Fax: (65) 7452917

Integrated Micro Systems Limited (IMS) • England Telephone: (44) 1634-714285 • Fax: (44) 1634-715298

Microsense Systems Limited • England Telephone: (44) 1489-589022 • Fax: (44) 1489-575616

Radio Data Technology • England Telephone: (44) 1376-501255 • Fax: (44) 1376-501312

Company Overview and Strategy

The CML Microsystems Plc Group of companies consists of six trading subsidiaries in three technological divisions, Semiconductor Products, Road Traffic Control Equipment and Data-Over-Radio Equipment. The major Group companies in these divisions are: Consumer Microcircuits Limited, CML Microcircuits (Singapore) Pte Ltd., Integrated Micro Systems Limited, Microsense Systems Limited, MX-COM, Inc., and Radio Data Technology. All business units are fabless suppliers.

Founded in 1972, Consumer Microcircuits Limited has distributors in 38 countries on six continents.

2-314 North American Company Profiles MX-COM, Inc.

CML Microcircuits (Singapore) Pte. Ltd. (CMLMS) was established in January 1995 to enhance the Group’s presence in the Asia Pacific region. Main activities involve sales, distribution, customer service, technical support and market development. The unit currently distributes and promotes Consumer Microcircuits Limited’s and MX- COM, Inc.’s products in China, Hong Kong, Taiwan, Singapore, Malaysia, Indonesia, Thailand and other areas in South East Asia.

Operating since 1980, MX-COM, Inc. is a subsidiary of CML Microsystems Plc. The company is a fabless designer and assembler of integrated circuits, modules, and systems for industrial, commercial and consumer communication applications. The company emphasizes “strong customer participation to meet market needs.”

Microsense Systems , founded in 1981, manufactures microprocessor-based systems for intelligent highway-type applications and public transport passenger information display applications. As such, it will not be profiled.

Radio Data Technology : manufactures wireless/radio modems, real-time video and audio transmission finished products and data transmission finished products. As such, it will not be profiled.

Management

Integrated Micro Systems Ltd. (IMS) Graham Davies Technical Director

Products and Processes

Consumer Microcircuits Limited’s IC products fall into seven application lines (products): general purpose (7), mobile radio (16), wireline telecommunications (20), radio/wireless modems (11), military communications (2), voice security/privacy (2), and cordless telephones (1).

Specific products include: Signal-to-Noise Enhancer, QTC Tone Processor, QTC Selective Call Tone Decoders, Voiceband Inverter, Digitally Controlled Amp Array, HSC Tone Decoder for , Digitally Controlled Quad Amp Arrays, Frequency Sensitive Switch, Cordless Telephone Scrambler, C-NET (Netz-C) Audio Processor, Private Squelch Circuit, Unifil Universal Analogue Processor, Band III FSK and FFSK Modems, GMSK Modems, Calling Line Identifiers, Subscriber Private Metering (SPM) Detector, Universal Call Progress Decoder, 'Eurocom' Delta Codec, a variety of other codecs and packet data modems, and TETRA Baseband Processors.

One of its newest products is the CMX602A, a low power CMOS IC for BT’s Calling Line Identification Service (CLIP), Bellcore’s Calling Identity Delivery system (CID), the Cable Communications Association’s Caller Display Services (CDS), and similar evolving services. It also meets the requirements of emerging Caller Identity with Call Waiting services (CIDCW). The 16-pin SOIC and DIL packaged device includes a ‘zero-power’ ring or line polarity reversal detector, a dual-tone (2,130Hz plus 2,750Hz) Tone Alert Signal detector and a 1200-baud FSK V23/Bell202 compatible asynchronous data demodulator with a data retiming circuit which removes the need for a UART in the associated microcontroller.

2-315 MX-COM, Inc. North American Company Profiles

Another new product is the FX829, a low voltage (3.0 to 5.5 Volts; 2.7mA at 3.3V with graduated powersave) CMOS IC designed to provide baseband audio and system signal-processing functions for PAMR or PMR trunked radio applications. The D2 - SOIC and D5 -SSOP IC meets ETS 300 086, MPT1327, PAA1382 and I-ETS 300 230 specifications. It operates in half-duplex mode under serial-bus control of the host microcontroller. Included is a dual-rate 1,200/2,400bps FFSK modem, with a software-flexible choice of synchronization codewords, data run-length and CRC checking. The two-point modulation output has software programmable level-adjustment. The audio processing stages include PAMR/PMR transmit and receive filtering. The open design also modification for emerging standards and proprietary approaches.

CML’s FX629 is a low-power, 5 volt CMOS LSI circuit designed as a continuously variable slope delta codec for use in military communications applications including delta multiplexers, switches and phones. The device is available in a 22-pin cerdip DIL package and meets MIL-STD-188-113. On-chip encoder input and decoder output filters are featured.

CML Group’s Integrated Micro Systems (IMS) unit is a fabless ASIC supplier providing solutions encompassing all aspects of standard cell custom and full custom ASIC design and manufacture. Founded in 1981, IMS was acquired by CML Microsystems Plc. in 1994.

IMS’s devices are fabricated in CMOS, BiCMOS and Bipolar processes. The company has particular expertise in: RF (Radio front ends, LNA, PA, NMT900, GSM, PCN, Frequency Synthesis to 1.8GHz); Optical (Laser and LED drivers and Optical Receivers @ 50Mbs, 155Mbs, 622Mbs, 1.2Gbs, 2.4Gbs); Analogue/Mixed-Signal (ADC, DAC, Sigma-Delta converters VCO and VCXO, Filters [CT, SC, digital], PLLs, Op Amps, Comparators); Embedded Memory (SRAM, DRAM, CAM, FIFO, ROM, EPROM, EEPROM). IMS also provides design, consultancy and turnkey services.

IMS’s CMOS experience includes 1.2µm-0.35µm, 2-3 metals, 2.4-40 volt products, with a custom library from which to choose. BiCMOS expertise ranges from 1.5µm-0.8µm, 2 - 3 metals, 2.7-40 volts and up to 17GHz fT. Bipolar expertise ranges from 2.0µm-0.8µm, 1-2 metals, 5-12 volts and at 7GHz fT. Though less often, IMS has worked with 0.6µm GaAs in 1 and 2 metal, 5V, 12GHz applications. IMS has also completed limited SOS applications.

MX-COM, Inc.’s products include the MX102 autocorrelator for pagers, MX109 CVSD voice codec, MX589 GMSK filter/modem for Cellular Digital Packet Data (CDPD) cellular telephones, MX602 Caller ID on Call Waiting telecom processor, MX818 baseband signal processor, MX839 digitally controlled analog I/O processor (with four-input intelligent 8/10 bit A/D monitoring subsystem and three 8/10 bit DACs), MX919A wireless modem data pump, and MX980 digital radio 36kbps p /4 DQPSK baseband processor for portable radios and base stations.

MX-COM predominantly uses 1.2µm CMOS technology in combinations of mixed-signal, embedded DSP, and analog design architectures.

2-316 North American Company Profiles MX-COM, Inc.

Semiconductor Fabrication Facilities

Consumer Microcircuits Limited’s facilities are BS ISO-9001 certified.

The IMS unit is a fabless supplier. It works with AMS/Thesys, Newport Wafer-Fab, UMC, TSMC, SGS-Thomson and Vitesse typically, but also with other fabs, where appropriate.

MX-COM occupies a 28,000 square foot purpose-built facility in Winston-Salem, NC, USA, where all functions, except wafer fabrication, are performed. MX-COM’s facilities were ISO-9002 certified in January 1995. Outside foundries are used for wafer fabrication.

MX-COM independently tests foundry processes for reliability performance in addition to reliability testing which is performed by the foundry. Electrical test, at wafer level and finished assembly, is performed at the Winston-Salem facility using proprietary, NIST-traceable hardware and software calibration standards.

2-317 National Semiconductor North American Company Profiles

NATIONAL SEMICONDUCTOR

National Semiconductor Corporation 2900 Semiconductor Drive P.O. Box 58090 Santa Clara, California 95052-8090 Telephone: (408) 721-5000 Fax: (408) 739-9803 Web Site: www.national.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: National Semiconductor Ltd. • Tokyo, Japan Telephone: (81) (43) 299-2308 • Fax: (81) (43) 299-2408

Europe: National Semiconductor GmbH • Fürstenfeldbruck, Germany Telephone: (49) (180) 532-7832 • Fax: (49) (180) 530-8586

Asia-Pacific: National Semiconductor HK Ltd. • Kowloon, Hong Kong Telephone: (852) 2737-1600 • Fax: (852) 2736-9960

Financial History ($M), Fiscal Year Ends May 31

1992 1993 1994 1995 1996 1997 1998 Sales 1,718 2,014 2,295 2,374 2,623 2,507 2,537 Net Income (120) 130 264 264 185 32 (98.6) R&D Expenditures 208 229 256 283 361 445 482 Capital Expenditures 189 235 271 479 628 593 622

Employees 27,200 23,400 22,300 22,400 20,300 13,400 12,000

Ownership: Publicly held. NYSE: NSM.

Company Overview and Strategy

National Semiconductor was established in Danbury, Connecticut, as a manufacturer of transistors in 1959. In 1967, the company moved to Santa Clara, California, where it began producing proprietary ICs.

2-318 North American Company Profiles National Semiconductor

National has since remained a leading supplier of analog and mixed-signal semiconductor products. The company focuses on four strategic markets: communications, personal systems, industrial, and consumer. System applications within these four markets include computers and computer peripherals, cellular phones, fax machines, local and wide area networks, telecommunications equipment, automotive electronics, industrial controls, and military and aerospace products. National is also a leader in power management solutions.

At the beginning of fiscal 1997, National reorganized into four operating divisions: the Analog Division, the Communications and Consumer Division, the Personal Systems Division, and the Fairchild Semiconductor Division. In March 1997, as part of its effort to focus on systems solutions, National divested itself of its Fairchild Semiconductor business, which consisted of National’s family logic, non-volatile memory, and discrete semiconductor product lines. The high-volume, manufacturing intensive business model of Fairchild differs significantly from National’s business of providing highly integrated system chip solutions for specific applications.

Management

Brian Halla President and Chief Executive Officer Kamal Aggarwal Executive Vice President, Central Technology and Manufacturing Patrick J. Brockett Executive Vice President, International Sales and Marketing Donald Macleod Executive Vice President, Finance, and Chief Financial Officer Michael Bereziuk Senior Vice President and GM, Personal Systems Division John M. Clark III Senior Vice President, General Counsel, and Secretary Douglas M. McBurnie Senior Vice President and GM, Communications and Consumer Division Gobi Padmanabhan Senior Vice President, Process Technology Edgar R. Parker Senior Vice President, Quality and Reliability Robert M. Penn Senior Vice President and GM, Analog Division Richard L. Sanquini Senior Vice President, Strategic Business and Technology Roland Anderson Vice President, European Division Michael D. Burger Vice President and GM, Southeast Asia Division Gordon C. Chilton Vice President, Asia Pacific Operations David S. Dahmen Vice President and Treasurer Rich Freeman Vice President, Worldwide Wafer Fab Operations Tatsuo Ishihara Vice President, Japan Division Keith M. Kolerus Vice President, Americas Division Mark Levi Vice President, Corporate Marketing and Communications Robert B. Mahoney Vice President and Controller Prem Nath Vice President and President, Mediamatics Inc. Richard A. Wilson Vice President, Human Resources

2-319 National Semiconductor North American Company Profiles

Products and Processes

MOS MEMORY ANALOG DRAM ✔ Amplifier SRAM ✔ Interface Flash Memory ✔ Consumer/Automotive EPROM ✔ Voltage Regulator/Reference ROM ✔ Data Conversion EEPROM ✔ Comparator Other (Including Non-Volatile RAM) ✔ Other (Includes Telecom)

MOS LOGIC DIGITAL BIPOLAR General Purpose Logic Bipolar Memory ✔ Gate Array General Purpose Logic ✔ Standard Cell Gate Array/Standard Cell Field Programmable Logic Field Programmable Logic ✔ Other Special Purpose Logic Other Special Purpose Logic MPU/MCU/MPR MOS MICROCOMPONENT ✔ MPU OTHER ✔ MCU ✔ Full Custom IC ✔ MPR Discrete DSP Optoelectronic

Analog Products Analog products and technology has been one of National’s core competencies since its inception. The company continues to be a leader in the analog IC industry. Its analog products include operational amplifiers and buffers, power management circuits, data acquisition circuits, voltage regulators and references, motor control ICs, audio ICs, custom linear ASICs (CLASICs), and other general and special purpose linear devices.

Comlinear Corporation, acquired by National in 1995, operates as a separate business unit within the Analog Division. Fort Collins, Colorado-based Comlinear is a supplier of high-frequency amplifiers, current-feedback devices, analog-to-digital converters, and other analog signal processing circuits.

Communications Products National is one of the world’s leading suppliers of LAN Ethernet and Fast Ethernet controller chipsets. The company also offers FDDI circuits.

For telecommunications applications, National offers ATM, ISDN, and SONET/SDH families of networking devices, as well as single-chip Digital European Cordless Telephone (DECT) radio transceivers. In 1996, National’s Comlinear business unit released a new family of serial digital video chipsets for transmitting high-speed video signals through cable networks.

2-320 North American Company Profiles National Semiconductor

For wireless communications applications, National offers its line of PLLatinum™ RF chips. In 1996, National introduced its Fast IR product family of wireless data communications chips using fast infrared technology.

Personal Systems Products National’s personal systems products consist of peripheral function devices that work in tandem with the host microprocessor in desktop and notebook computers. The recent merger with Cyrix adds high-performance microprocessors to the personal systems portfolio. Their peripheral products include Super I/O™ products that consolidate many dependent functions on the motherboard, high-performance disk drive ICs, bus interface circuits (including USB types), data transmission chips, display drivers, clocks and clock support circuits, DRAM management ICs, and UARTs. National added low-power system logic ICs to its product portfolio in 1996 when it acquired PicoPower Technology from Cirrus Logic.

Consumer Products National’s IC products for consumer applications include audio control circuits, audio noise reduction devices, and audio amplifiers. The company’s Boomer™ series of single-chip CMOS audio amplifiers is used in wireless telephones and multimedia computers, as well as CD players, video players, and VCRs.

In March 1997, National acquired Mediamatics Inc., an MPEG audio/video decoder firm, for approximately $100 million. Mediamatics is operating as a wholly owned subsidiary based in Fremont, California. The two companies are working to incorporate National’s tuner, demodulator, A/D and D/A conversion, and other technologies with Mediamatics’ software and hardware MPEG audio/video and Dolby AC-3 audio products to create new products, or cores, for the consumer electronics market.

Also in early 1997, National sold to ISD its CompactSpeech line of RISC-based speech processors for voice applications in products such as answering machines and cordless phones.

Embedded Technologies Products This product line includes 4-bit, 8-bit (COP8 Family), and 16-bit microcontrollers and 16-bit and 32-bit microprocessors (including its NS486 embedded processor). National is also a licensee of the Advanced RISC Machines ARM 32-bit processor core.

Military and Aerospace Products National is the second largest supplier of military/aerospace-related semiconductors. It is driving advances in avionics, telecommunications, cryptography, navigation systems, and displays.

National Semiconductor's primary process technology, M2CMOS, is built around a core double-level-metal CMOS process. To this core, modules are added to provide a third level of metallization for analog, EEPROM, and BiCMOS applications. Optimized for analog and mixed-signal applications, the M2CMOS process is used by the majority of the communications and computing group product lines. A wide range of design rules (down to 0.55µm) are supported by the M2CMOS process. Plans are to further shrink the process to 0.35µm.

2-321 National Semiconductor North American Company Profiles

In addition to its family of M2CMOS processes, National also utilizes a high-performance core VLSI bipolar process named ASPECT, which stands for Advanced Poly Emitter-Coupled Technology. ASPECT and its BiCMOS module, ABiC, are used for high-performance gate arrays, customer-owned designs, and wireless communications. ASPECT has been scaled from 2.0µm to 0.8µm and will be replaced with BiCMOS at 0.5µm and beyond. The current versions of ASPECT and ABiC offer up to four-layers of metallization in addition to a level zero local interconnect.

A variety of analog processes are used to produce a broad line of linear products. Notable process technologies are VIP, a high speed complementary bipolar process for operational amplifiers, LB, a medium voltage automotive market oriented process, LMDMOS, a high power mixed-signal process, and LFAST and LCMOS, which are used for CLASICs.

Semiconductor Fabrication Facilities

National installed a 200mm wafer line at its fab in Maine for the fabrication of ICs with 0.35µm geometries. The new $830 million facility includes 40,000 square feet of Class 1 cleanroom. Commercial production started in the first calendar quarter of 1998.

National Semiconductor Corp. National Semiconductor Corp. 2900 Semiconductor Drive 2900 Semiconductor Drive Santa Clara, California 95012 Santa Clara, California 95012 Telephone: (408) 721-5000 Telephone: (408) 721-5000 Cleanroom size: 20,000 square feet Cleanroom size: 20,000 square feet Wafer size: 100mm Wafer size: 200mm Process: Bipolar Processes: CMOS, BiCMOS Products: Linear ICs, ASICs, R&D Products: R&D Feature sizes: 0.55µm-0.8µm Feature sizes: 0.35µm, 0.5µm

National Semiconductor Corp. National Semiconductor Corp. 1111 West Bardin Road 1111 West Bardin Road Arlington, Texas 76017 Arlington, Texas 76017 Telephone: (817) 468-6300 Telephone: (817) 468-6300 Fab 1 Fab 2 Cleanroom size: 33,000 square feet Cleanroom size: 72,000 square feet Capacity (wafers/week): 4,500 Capacity (wafers/week): 9,850 Wafer size: 150mm Wafer size: 150mm Process: CMOS Processes: CMOS, BiCMOS Products: Logic, microcomponents, ASICs Products: Logic, linear, mixed-signal, ASICs Feature size: 1.0µm Feature sizes: 0.35µm-0.65µm

2-322 North American Company Profiles National Semiconductor

National Semiconductor Corp. National Semiconductor (UK) Ltd. 5 Foden Road Earnhill Road, Larkfield Industrial Estate South Portland, Maine 04106 Greenock PA16 OEQ, Scotland, UK Telephone: (207) 541-8100 Telephone: (44) (1475) 633733 Cleanroom size: 40,000 square feet (Class 1) Cleanroom size: 40,300 square feet Wafer size: 200mm Capacity (wafers/week): 10,000 Processes: CMOS, BiCMOS Wafer size: 100mm Products: Linear, mixed-signal, microcomponents Process: Bipolar Feature size: 0.25µm Products: Logic, linear ICs Feature sizes: 1.2µm-5.0µm

National Semiconductor (UK) Ltd. Earnhill Road, Larkfield Industrial Estate Greenock PA16 OEQ, Scotland, UK Telephone: (44) (1475) 633733 Cleanroom size: 30,100 square feet Capacity (wafers/week): 7,500 Wafer size: 150mm Processes: CMOS, BiCMOS Products: Logic, linear ICs, microcomponents, ASICs Feature sizes: 0.8µm-1.2µm

Some of National’s IC products continue to be produced at the fabs now owned by Fairchild Semiconductor and vice versa.

National’s semiconductor assembly and test plants are located in Toa Payoh, Singapore, and Malacca, Malaysia.

Key Agreements

• In October 1998, National Semiconductor announced plans to consolidate its wafer manufacturing operations in Greenlock, Scotland. National is currently seeking investors to spin out the remaining operations there as an independent foundry operation.

The Greenlock facility near Glasgow currently has two manufacturing lines designated as Fab 1, which processes 4-inch diameter wafers, and Fab 3, which processes 6-inch wafers. National will close Fab 1 and consolidate all manufacturing at this site into Fab 3. Consolidation will reduce total employment there from 1,000 to 400, starting in March 1999. The full transition to Fab 3 is expected to take another 12 months after that to reach completion.

• In September 1998, National Semiconductor reached an agreement with IBM Corporation for termination of the existing wafer manufacturing and marketing agreement between National’s Cyrix subsidiary and IBM.

Under terms of the agreement IBM will cease the sale of Cyrix-designed processors before the end of calendar 1998, and National’s Cyrix subsidiary will be relieved of its wafer purchase obligation to IBM. In addition, Cyrix will transfer certain assets to IBM. As a result of the termination and transfers, National will take a one-time charge of approximately $50 to $55 million in its second quarter of fiscal 1999, which ends November 29,1998.

2-323 National Semiconductor North American Company Profiles

• In April 1998, National Semiconductor signed a definitive agreement to acquire ComCore Semiconductor, a privately held company that designs and manufactures integrated circuits for computer networking and broadband communications. The acquisition will add advanced design and technology capabilities to National’s existing analog, mixed-signal and digital expertise.

• In February 1998, VIA hosted a seminar for Cyrix’s (a National Semiconductor company) announcement of its next generation MediaGX microprocessor, the MXi. VIA appears to be supplying Cyrix with key technology for the MXi which is due in the Q4 1998 and is targeted at the sub-$1000 PC market. VIA has worked with Cyrix for a number of years to support their line of processors along with those of other Intel competitors.

• On November 17, 1997, National acquired Cyrix Corporation.

• National and Fairchild remain closely linked through a long-term agreement to make the transition as smooth as possible. The two companies also share and swap fab capacity.

• In early 1996, National joined up with the Belgian research firm IMEC to develop process technology for the 0.25µm and 0.18µm generations.

• National signed a three-year agreement in mid-1995 with Tower Semiconductor Ltd. under which Tower was to increase its wafer production commitment to National. Tower’s fab in Israel was originally owned by National, which retains a 3.5 percent interest in the foundry.

• In November 1994, National formed a long-term alliance with Synaptics Inc. to jointly develop computer controls based on human senses (sight, touch, and sound).

• National formed an alliance with 8x8 Inc. in 1993. The partners are developing embedded processor, video, and data compression technologies.

• National entered a resale and joint-development agreement with NEC for Ethernet ICs in 1993.

• National entered a cooperative relationship with Matsushita, including joint development and manufacturing (1992).

• National signed a 10-year semiconductor patent cross-licensing agreement with Hitachi in 1991.

2-324 North American Company Profiles NeoMagic

NEOMAGIC CORPORATION

NeoMagic Corporation 3260 Jay Street Santa Clara, CA 95054 Telephone: (408) 988-7020 Fax: (408) 988-7032 Web Site: www.neomagic.com

Fabless IC Manufacturer Founded: 1993

Financial History ($M) – Fiscal year ends January 31

1997 1998 Sales 41 125 R&D Expense 9 16 Net Income (loss) (1) 21

Ownership: Publicly held. NASDAQ: NMGC. The Company’s Initial Public Offering of common stock occurred on March 14, 1997.

Company Overview and Strategy

NeoMagic develops high-performance, low voltage silicon technology that integrates large DRAM memory and complex logic subsystems into a single chip. Major applications include notebook mobile computers where power requirements are critical. The Company focuses on bringing desktop performance to mobile computers through unique semiconductor technology. NeoMagic’s MAGICWARE™ was the first high-performance, low voltage silicon designs that integrated large DRAM memory and complex logic subsystems onto a single chip. Prior to MAGICWARE’s introduction, notebook PCs could not achieve desktop performance levels without sacrificing battery life and portability.

In addition to being the first company to integrate complex logic subsystems with memory (MAGICWARE), NeoMagic is reportedly the first company to introduce a single-chip graphics subsystem, offer the highest bandwidth solution for mobile graphics, and offer the lowest mobile graphics power consumption IC on the market.

NeoMagic products are sold via Sales Representatives and Distributors throughout North America, Europe, Asia and ROW.

2-325 NeoMagic North American Company Profiles

Management

Kamran Elahian Chairman of the Board Prakash Agarwal President and Chief Executive Officer Clement Leung Vice President, Engineering Deep Puar Vice President, Technology Ron Jankov Vice President, Sales Niall Bartlett Vice President, Marketing Abe Korgav Vice President, Manufacturing Merle McClendon Vice President, Finance and Chief Executive Officer Ken Murray Vice President, Human Resources

Products and Processes

NeoMagic products include Accelerated Notebook Graphics Controllers, and Mobile Video Accelerators.

During the fourth quarter of 1997, NeoMagic announced its new MagicGraph128ZV+, which expanded the multimedia accelerator product line into entry-level and ultra-portable notebooks including the recently released Presario 1220 notebooks from Compaq Computer Corporation.

NeoMagic also offers drivers for Linux/Unitx/X-Windows, and Direct X (X2 and X3), available through computer OEMs.

2-326 North American Company Profiles Corporation

NVIDIA CORPORATION

NVIDIA CORPORATION 1226 Tiros Way Sunnyvale, CA 94086 Telephone: (408) 617-4000 Fax: (408) 617-4100 Web Site: www.nvidia.com and www.riva128.com Email: [email protected]

Fabless IC Supplier

Financial History ($K)

Privately held, NVIDIA received pre-IPO funding from venture capitalists Sequoia Capital, Sutter Hill Ventures, Itochu Corporation, JAFCO Ventures, and Worldview Technology Partners. Venture capitalists as a group held 50.6 percent of the stock of NVIDIA as of February 28, 1998.

1993 1994 1995 1996 1997 Sales — — 1,182 3,912 29,071 R&D Expenditures 204 361 2,426 1,218 6,632 Net Income (loss) (484) (1,361) (6,377) (3,077) (2,691)

Employees — — — 75 92

Company Overview and Strategy

Founded in 1993, NVIDIA is a fabless designer of 3D multimedia accelerator chips for PC graphics and computer animation. The company targets the “performance mainstream computer market,” including business, entertainment and personal application segments. With a founding vision of 3D becoming the next wave in computing, (a la Intel’s Visual Computing Initiative), NVIDIA's objective is to be the world leader in consumer 3D technology. The company’s products support emerging applications such as DVD, Intercast and video- conferencing.

NVIDIA focuses on creating a 3D architecture that optimizes 2D graphics, and simultaneously delivers 3D interactive capabilities. By integrating 2D and 3D into one chip, NVIDIA increases performance and makes 3D more accessible to mass markets, as well as standardizing the platform for developers.

NVIDIA was honored by the Fabless Semiconductor Association in November 1997 as The Most Respected Private Fabless Company. Similarly, the company’s customers have won over 40 industry awards based on NVIDIA’s RIVA 128 graphics processor. The processor is designed into products of five of the top ten PC OEMs in the U.S. (Compaq, Dell, Gateway 2000, Micron and Packard-Bell NEC), and into leading add-in board manufacturers such as Diamond and STB. NVIDIA shipped over one million units during the last four months of 1997.

2-327 NVIDIA Corporation North American Company Profiles

Management

Jen-Hsun Huang Founder, President and Chief Executive Officer Geoff Ribar Chief Financial Officer Curtis Priem Founder and Vice President, Software Engineering Chris Malachowsky Founder and Vice President, Hardware Engineering Rick Whitacre Vice President, Corporate Engineering and Operations Dan Vivoli Vice President, Product Marketing Lew Paceley Vice President, Corporate Marketing Jeff Fisher Vice President, Sales David Kirk, Ph.D. Chief Scientist Lee Moncton Director, Product Engineering and QA Gopal Solanki Director, Engineering Michael Hara Director, Marketing

Products and Processes

NVIDIA is a leading developer and manufacturer of 3D multimedia accelerator chips that enable standard PCs to create 2D and 3D graphics and computer animation. Their first multimedia accelerator was introduced in 1995.

In 1997, NVIDIA focused on delivering state-of-the-art 3D accelerator products with higher price-performance ratios than competing solutions, including multi-chip or multi-board 2D/3D graphics subsystems. The company’s expertise is in advanced algorithms, software design, systems architecture, and VLSI.

The RIVA 128 delivers realistic 3D graphics (high levels of detail, smooth and high frame rates) using a 100 megahertz, 128-bit graphics and memory interface. The RIVA 128 is architected to take advantage of mainstream industry standards such as Microsoft's API. Rather than relying on traditional simulation and validation technology, NVIDIA brought the RIVA 128 to market using emulation. Emulation allowed concurrent chip design verification, software testing and system integration prior to tape out and fabrication.

After having just announced the RIVA 128ZX on February 23, (for Q2 shipments), NVIDIA’s second generation of the RIVA 3D processor family, the RIVA TNT, was announced March 23, 1998, with shipping promised for Q3. TNT boasts an impressive 250 million pixels-per-second fill rate. TNT’s proprietary Twin Texel processing engine integrates a dual-pixel 32-bit color pipeline, 24-bit Z-buffer, 8-bit stencil buffer and per-pixel precision to deliver the first single-chip 128-bit 3D processor that can process two pixels per clock cycle, thereby enabling true single- pass multi-texturing. TNT utilizes over 7 million transistors (double the RIVA 128), comparable to the Pentium II’s complexity. It is optimized for Microsoft's PC '98 specification and Direct3D, including DirectX 6.0 initiatives, and supports OpenGL ICD and AGP 2X. Additionally, the processor incorporates a 250MHz RAMDAC and can expand up to 16Mb of frame buffer memory, thereby reaching up to 1600x1200x32bpp at 85MHz.

Substantially all of NVIDIA's products currently are manufactured by SGS-Thomson (ST) in Crolles, France. ST is using advanced 0.35u 5LM technology for the RIVA 128. The company temporarily (December 1997) experienced low manufacturing yields at ST, but has achieved a very strong and responsive relationship with ST overall. In addition to the NVIDIA’s use of ST for fabrication, the company licenses technology on a non-exclusive basis from ST (see Key Agreements).

2-328 North American Company Profiles NVIDIA Corporation

NVIDIA recently established a relationship with TSMC as a second semiconductor manufacturer.

Key Agreements

• NVIDIA is a partner in Intel’s Visual Computing Initiative.

• NVIDIA has granted ST a worldwide license to sell the RIVA 128 and RIVA 128ZX graphics processors. Royalty revenue from sales of the RIVA 128 graphics processor by ST represented six percent of the Company's total revenue in 1997. Under the ST Agreement, ST also has a worldwide license to incorporate the technology underlying the RIVA 128 and RIVA 128ZX graphics processors (including the source code and architecture).

2-329 Oak Technology North American Company Profiles

OAK TECHNOLOGY

Oak Technology Inc. 139 Kifer Court Sunnyvale, California 94086 Telephone: (408) 737-0888 Fax: (408) 737-3838 Web Site: www.oaktech.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Oak Technology, K.K. • Musashino City, Tokyo, Japan Telephone: (81) (422) 56-3761

Asia-Pacific: Oak Technology, Taiwan • Taipei, Taiwan, R.O.C. Telephone: (886) (2) 784-9123

North America:Pixel Magic, Inc., Andover, Massachusetts, U.S.A. Telephone: (978) 470-8830

Financial History ($M), Fiscal Year Ends June 30

1992 1993 1994 1995 1996 1997 1998 Sales 43 30 46 111 248 167 157 Net Income (3) (5) 4 21 37 24 6 R&D Expenditures — 5 6 15 31 35 50 Capital Expenditures — — — — 13 7 12

Employees — — — 225 370 450 511

Ownership: Publicly held. NASDAQ: OAKT.

Company Overview and Strategy

Oak technology designs high-performance semiconductors (and related software solutions) for the optical storage, consumer electronics and digital office equipment markets, targeting applications ranging form business productivity to home entertainment and office automation.

Founded in 1987, with headquarters in Sunnyvale, California, Oak Technology currently has over 500 employees in its offices worldwide, including its subsidiaries in Massachusetts (Pixel Magic™, Inc.), Japan (Oak Technology, K.K.) and Taiwan (Oak Technology, Taiwan); a software design center in Boca Raton, Florida; and a mixed signal design center in Austin Texas. Acquired by Oak in 1995, Pixel Magic is an industry leader in digital imaging solutions for the digital office equipment market.

2-330 North American Company Profiles Oak Technology

Oak plans to continue designing and developing new CD-ROM controllers, while moving aggressively into new markets to diversify its business. Oak plans to continue development of optical storage technology to address the CD-R (Recordable), CD-RW (ReWritable), and DVD-ROM markets. Oak’s other product developments include MPEG video decoders, such as the company’s MPEG-2/Dolby Digital decoder for DVD players.

Virtually all of Oak’s revenues in 1997 were from international sales, principally in Japan, Singapore, and Taiwan.

Management

David D. Tsang Chairman of the Board of Directors and Chief Executive Officer Richard Black President and Member of the Board of Directors Paul H.F. Vroomen President, Consumer Products Group Ron Wilderink Vice President, Finance, Chief Financial Officer and Secretary Kenji Fujimoto Vice President, Oak Technology; General Manager, Oak Technology, K.K. Abel Lo Vice President, Oak Technology; General Manager, Oak Technology, Taiwan Richard Simone Vice President, Technology and Operations

Products and Processes

Oak offers multimedia semiconductors (and supporting software) solutions for the PC, consumer electronics and digital office equipment market. Product offerings include storage controllers (for CD-ROM, CD-R/RW and DVD- ROM drives), VideoCD and DVD system solutions, and imaging compression processors for digital office equipment.

Recent product announcements include the OTI-9150 UDMA-based controller supporting 40x+ speeds, the OTI- 9800 DVD-ROM controller, the TroikaCSS™ DVD decoder, and the OTI-612 AC’97 audio/telephony codec.

Semiconductor Fabrication Facilities

Oak Technology is a fabless IC supplier. The company contracts with independent foundries to manufacture all of its products. In June and November 1995, the company entered into agreements with TSMC and Chartered to obtain certain additional wafer capacity through the year 2001.

Key Agreements

• In August 1998, Oak Technology announced the acquisition of Xerographic Laser Images Corporation (XLI Corporation). XLI will operate as a division of Pixel Magic, a wholly owned subsidiary of Oak, and a leading provider of advanced, programmable silicon and reference board designs for OEMs in the digital office equipment (DOE) market.

2-331 Oak Technology North American Company Profiles

• In July 1998, Oak Technology announced its acquisition of ViewPoint Technology, Inc., a Santa Clara, Calif.- based privately held company that focuses on developing solutions for the growing CD-RW drive market.

The acquisition enables Oak to obtain key intellectual property critical for its future CD-RW product roadmap. ViewPoint recently developed a controller that supports high encoding speeds for next generation CD-RW drives.

• In April 1998, Oak Technology acquired certain key assets from ODEUM Microsystems Inc., a subsidiary of Hyundai Electronics America. The acquisition includes intellectual property related to ODEUM integrated circuits and a core group of hardware and software engineers. The former ODEUM group has become the Cable/Satellite Business Unit of Oak’s Consumer Group.

The two ODEUM products currently in volume production are the OTI-8211 (formerly ODM8211 SAVi), an integrated MPEG-2 audio/video decoder and transport demultiplexer, and the OTI-8511 (formerly ODM8511 CWest), a DVB-S compliant QPSK demodulator.

2-332 North American Company Profiles Omnirel Corporation

OMNIREL CORPORATION

Omnirel Corporation 205 Crawford Street Leominster, Massachusetts 01453 Telephone: (978) 534-5776 Fax: (978) 537-4246 Web Site: www.omnirel.com

IC Manufacturer Founded: 1985

Regional Offices/Representative Regions

North America: Mid-America Sales Office • Barrington, Illinois Telephone: (847) 381-3537 • Fax: (847) 381-3578

Northeast Sales Office • Winchester, Massachusetts Telephone: (781) 721-6335 • Fax: (781) 721-6347

Southwest Sales Office • Granada Hills, California Telephone: (818) 368-9772 • Fax: (818) 368-9272

Southeast Sales Office • Palm Harbor, Florida Telephone: (813) 781-6940 • Fax: (813) 781-6576

Financial History ($M), Fiscal Year End June 30

1995 1996 1997 Corporate Revenue 22.6 26.0 21.3 Net Income 2.5 4.4 1.6

Ownership: Publicly held. NASDAQ: ZING (Parent company – Zing Technologies, Inc.).

Company Overview and Strategy

Omnirel Corporation manufactures multi-chip power semiconductors, power modules, and semiconductor components. Omnirel, a subsidiary of Zing Technologies, Inc., focuses on applications that require small-circuit electrical components. Target markets include defense, aerospace, medical device, and commercial transportation industries.

2-333 Omnirel Corporation North American Company Profiles

Management

John Catrambone President and Chief Executive Officer

Products and Processes

Ominrel’s offers the following products.

• Power MOSFETs — 1A, 50V to 190A, 100V; • IGBTs — 5A, 500V to 25A, 1,000V; • Voltage Regulators; • Rectifiers and Schottky Diodes; • Op Amps; • Functional Power Modules; and • Surface Mount Devices.

Semiconductor Fabrication Facilities

Omnirel Corporation has a Class 10,000 cleanroom facility located in Leominster, Massachusetts.

Key Agreements

• In July 1996, Omnirel Corporation and Motorola Semiconductor Products Sector announced an agreement to work on a new series of MIL qualified GaAs rectifier devices together. Under the agreement, Motorola will supply GaAs Schottky wafers to Omnirel who will assemble, test, qualify and market a full line of hermetic TO- 257 and surface mount GaAs products.

• Omnirel Corporation and Motorola Commercial Plus Technologies Operation signed a sales agreement in May 1995. Under the agreement, Omnirel acquired Motorola CPTO Biopolar Power Discrete Transistor business, which transfers manufacturing and test equipment and finished goods inventory to Omnirel.

2-334 North American Company Profiles Optek Technology, Inc.

OPTEK TECHNOLOGY, INC.

Optek Technology, Inc. 1215 West Crosby Road Carrollton, Texas 75006 Telephone: (972) 323-2284 Fax: (972) 323-7009 Web Site: www.optekinc.com

IC Manufacturer

Financial History ($M)

1995 1996 1997

Sales $62.5 $67.4 $75.5

Ownership: Publicly held. NASDAQ: OPTT.

Company Overview and Strategy

Optek Technology, Inc. is a leading manufacturer of optoelectronic sensors, magnetic sensors, and fiber-optic transmitters and receivers. Optek produces virtually everything from its own chips to the plastic housings. The Company provides components worldwide for manufacturers of office equipment and computers, automobiles, industrial equipment, aerospace and defense applications, medical equipment and telecommunications equipment.

The majority of Optek’s growth and profitability is from the custom applications. Optek is committed to research and development both in the expansion of present uses and in the creative application of new sensor technology.

Management

Thomas R. Files President and Chief Executive Officer William J. Collinsworth Vice President, Finance, and Chief Financial Officer Robert J. Kosobuki Vice President, Sales and Marketing Richard G. Dahlberg Vice President, Engineering Thomas S. Garrett Vice President, Operations

2-335 Optek Technology, Inc. North American Company Profiles

Products and Processes

Optek Technology, Inc. manufactures sensor products which are based on either optoelectronic or magnetic field sensing technologies.

Optoelectronic Products Optek specializes in customized optoelectronic solutions for its customers’ applications. Optek is vertically integrated and manufactures:

• Light emitting diode (LED) chip and light sensing semiconductor chips. • Discrete components incorporating LED or sensor chips in either plastic or metal package housings. • Assemblies, which combine the light emitting and light sensing discrete components in a single package. • Fiber optic LEDs and sensors.

Magnetic Sensor Products Hall-Effect (magnetic field sensing) devices, which sense physical events by reacting to changes in magnetic fields and is unaffected by the cleanliness of the environment.

Semiconductor Fabrication Facilities

Optek has fabrication facilities in Carrollton, Texas and Juarez, Mexico.

2-336 North American Company Profiles Orbit Semiconductor

ORBIT SEMICONDUCTOR

Orbit Semiconductor, Inc. 169 Drive Sunnyvale, California 94089 Telephone: (408) 744-1800 Fax: (408) 747-1263 Web Site: www.orbitsemi.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Orbit Europe • Surrey, England Telephone: (44) (1932) 346288 • Fax: (44) (1932) 347110

Asia-Pacific: DII Group • Singapore Telephone: (65) 298-0866 • Fax: (65) 298-3689

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Corporate (DII Group) Sales — — 258 397 459 780 Net Income — — 9 23 10 35

Semiconductor Sales 25 34 50 62 64 *55(est.)

Employees (Orbit) 120 154 184 278 400 400

*Orbit operates as a wholly-owned subsidiary of DII Group, semiconductor sales no longer segregated.

Company Overview and Strategy

Orbit Semiconductor specializes in semiconductor design, manufacturing, and engineering support services that allow system designers to manage application-specific integrated circuit (ASIC) development, production, scheduling, and inventory control. In August 1996, Orbit Semiconductor was acquired by DII Group, Inc., who serves as a global network of companies that provide design, manufacturing, product development, and support services to the electronics industry. Orbit operates as a wholly-owned subsidiary of DII Group.

Orbit's customers include companies that design various electronic systems and products for application in the medical, communications, consumer, aerospace and military, computers and peripherals, and other industries.

2-337 Orbit Semiconductor North American Company Profiles

*Orbit operates as a wholly-owned subsidiary of DII Group, no longer segregated.

In October 1992, Orbit introduced its Encore! program that converts FPGAs and other IC designs into Orbit digital gate arrays for more cost-effective solutions or accelerated delivery. Orbit also offers a mixed-signal (analog/digital) design service that provides rapid development of custom mixed-signal ASICs. A shared wafer-processing program, Foresight, is provided for cost-effective prototyping of mixed-signal ASICs. In addition, Orbit offers contract manufacturing programs including hi-rel manufacturing, a low-cost prototyping service, and charge coupled device (CCD) fabrication.

Management

DII Group Ronald R. Budacz Chairman and Chief Executive Officer Carl R. Vertuca, Jr. Executive Vice President, Finance, Administration and Corporate Dev. C.Y. Cheong Vice President and Managing Director, Asia-Pacific

Orbit Semiconductor Ronald R. Snyder President and Chief Operating Officer (Acting) Richard Kash Executive Vice President, Mixed-Signal Design Duncan Robertson Vice President, Finance George W. Lewicki Vice President, Engineering Betty Y. Newkirk Vice President, Foundry Business Unit and Customer Service Fernando A. Bettencourt Vice President, Fab Operations Uzi Breier Vice President, Sales and Marketing

Products and Processes

Orbit's manufacturing services include several IC fabrication programs. The most popular program, Encore!, is a service that converts netlists for gate arrays or FPGAs into Orbit gate arrays with 270 to 37,000 usable gates. The resulting circuits are functionally equivalent, but lower in price. Another program, Foresight, supports multi- project, multi-technology runs and reduces NRE charges. Subscribers of Foresight's processes see lower costs because they share space on masks and wafers.

2-338 North American Company Profiles Orbit Semiconductor

Both Encore! and Foresight users have access to all of Orbit's processes. They include: 1.0µm and 1.2µm N-well and P-well CMOS processes with various options such as a second poly layer for capacitors and gates, NPN bipolar transistors with high or low collector resistances, classical EEPROM, imaging buried channel CCDs with an oxide nitride gate insulator to maintain low leakage on large arrays, and conventional N-channel and P-channel transistors to allow on-chip digital logic.

Orbit offers additional programs based on its independent manufacturing capabilities. Its low-volume manufacturing programs include a "High Reliability Manufacturing Program" in support of medical companies and military contractors and a low-cost prototyping service, typically used by fabless semiconductor companies.

Semiconductor Fabrication Facilities

In late 1996, Orbit purchased Paradigm’s 0.6µm, 150mm wafer production facility for $20 million.

Orbit also maintains a relationship with Chartered Semiconductor to supplement its wafer production capabilities.

Orbit Semiconductor, Inc. 71 Vista Montana San Jose, California 95134 Cleanroom size: 18,000 square feet Capacity (wafer/week): 1,250 Wafer size: 150mm Process: CMOS Products: ASICs, foundry services Feature sizes: 0.6µm, 0.8µm (0.5µm in future) (Purchased from Paradigm in 1996).

Key Agreements

• On January 30, 1998, Orbit announced an agreement with Sunnyvale-based Virtual IP Group, a leading provider of intellectual property for embedded solutions. This agreement enables Orbit to create an impressive portfolio of synthesizable popular cores, while also enhancing its design and technical support capabilities.

2-339 Oxford Micro Devices, Inc. North American Company Profiles

OXFORD MICRO DEVICES, INC.

Oxford Micro Devices, Inc. The Starpin Complex, 273 Canal Street, Suite 600 Shelton, Connecticut 06484 Telephone: (203) 881-0891 Fax: (203) 888-1146 Web Site: www.oxfordmicrodevices.com Email: [email protected]

Fabless IC Supplier Founded: 1987, Delaware.

Ownership: Privately held.

Company Overview and Strategy

Oxford Micro Devices, Inc. designs, markets and sells video digital signal processor chips for use in video compression, scanners, video production, medical imaging, safety, electronic commerce, transportation, access control, machine vision, and education. The Company, formerly Oxford Computer, Inc., specializes in video digital processor chips that are specifically designed to communicate, capture, process and display images in real time. Oxford is currently developing board and miniature system level products and has plans to license these designs.

Oxford Micro Devices’ medical research activities include fabrication of the first life-size images of cytology specimens to improve the screening for cervical cancer. The Company is also developing prototypes for ultra high density and high capacity disk drives. Oxford Micro Devices was the first to design and fabricate the first Artificial Pap Smear, using its patented Ultra High Resolution Printing Process.

Annual sales for 1997 were under $1 million.

Management

Steven G. Morton President, Chief Executive Officer and Co-Founder Maureen White Personnel Director and Co-Founder Bruce Froehlich Vice President, Sales Peter Holden, Ph.D. Director of Partnering and Licensing

Products and Processes

Oxford Micro Devices developed a new way of processing images through their leading product — the A236 Video Digital Signal Processor Chip, an image processing system on a single chip that is user-programmable. This system-on-chip architecture includes an analog video input, non-volatile memory and high-speed memory.

2-340 North American Company Profiles Oxford Micro Devices, Inc.

The Company was the first to develop a single-chip, Single-Instruction Multiple-Data (SIMD) processor chip, the A236 Parallel Video Digital Signal Processor Chip, and developed a simple Symbolic Parallel Programming Method to program the processor.

Other Oxford Micro Devices’ products include miniature fingerprint capture and verification systems, and video conferencing network computers.

Semiconductor Fabrication Facilities

Oxford Micro Devices, Inc. has a foundry relationship with Samsung Electronics, Korea, to produce its A236 Video Digital Signal Processor Chip.

Key Agreements

• Oxford Micro Devices, Inc. has teamed with Thomson-CSF of France to build and market products combining Thomson-CSF’s fingerprint sensor with Oxford Micro Devices’ A236 SIMD Processor Chip.

2-341 Pacific Monolithics North American Company Profiles

PACIFIC MONOLITHICS

Pacific Monolithics, Inc. 1308 Moffett Park Drive Sunnyvale, CA 94089 Telephone: (408) 745-2700 Fax: (408) 734-2656 Web Site: www.pacmono.com Email: [email protected]

IC Manufacturer

Employees: 180

Ownership: Privately held.

Company Overview and Strategy

Pacific Monolithics, founded in 1984, designs and manufactures surface mount Gallium Arsenide (GaAs) MESFET Radio Frequency integrated circuits. The primary application is the emerging wireless and communications markets.

International sales comprise more than half of the current total.

Management

Richard Gold President Allen Podell Chief Technical Officer James Clark Vice President, Sales John Wachsman Vice President, Marketing Dean Johnson Vice President, Business Development Michael Morganstern Vice President, Engineering Andrew Hartland Director, Finance

Products and Processes

Pacific Monolithics (PM) also offers a complete line of low cost, plastic packaged RF integrated circuits for cellular, PCS, and ISM frequency bands. PM provides power amplifiers, switches, attenuators, converters and oscillators covering the frequency spectrum from 800 to 2,500MHz. PM’s power amplifiers are used in a range of telephony applications, from cellular to PCS. In wireless data, PM’s 10Mbps wireless LAN technology has been licensed by 3COM, a major network equipment manufacturer.

2-342 North American Company Profiles Paradigm Technology

PARADIGM TECHNOLOGY

Paradigm Technology, Inc. 694 Tasman Drive Milpitas, California 95035 Telephone: (408) 954-0500 Fax: (408) 954-8913 Web Site: www.prdm.com

Fabless IC Supplier Founded: 1987

Regional Sales Offices:

United States: Northwest • Milpitas, California Southwest • Irvine, California Telephone: (408) 954-0500 · Fax: (408) 954-0664 Telephone: (714) 727-0452 · Fax: (714) 727-0484

South Central & Southeast • The Colony, Texas North Central • Barrington, Illinois Telephone: (972) 625-6151 · Fax: (972) 625-0901 Telephone: (847) 382-1624 · Fax: (847) 382-1685

Northeast • Walpole, Massachusetts Telephone: (508) 668-2508 · Fax: (508) 668-1563

Financial History ($M), Fiscal Year Ends December 31

1992 * 1993 * 1994 * 1995 1996 1997 Sales 15 25 32 52 36 12,449 Net Income (9) (18) (4) 5 (36) (8.9) R&D Expenditures 1 2 1 5 6 3.4

Employees 140 190 205 244 85 22

*Data for fiscal year ended March 31. In 1994, the company changed its fiscal year ending date to the end of December. For the period April 1 to December 31, 1994, Paradigm’s sales totaled $26 million and net income was $11 million.

Ownership: Publicly held. NASDAQ: PRDM.

2-343 Paradigm Technology North American Company Profiles

Company Overview and Strategy

Paradigm Technology designs, develops and markets high-speed, Fast SRAM semiconductor devices to meet the needs of advanced telecommunications, networking, workstations, high-performance computers, advanced modems and complex military/aerospace applications. The company focuses on high-performance, sub-10ns SRAMs where its technology and product design leadership can best be utilized. In 1996, these products accounted for approximately 36 percent of the company’s sales.

When established in 1987, Paradigm Technology initially focused on the development of high-speed 256K and 1M SRAMs. In 1989, the company opened a wafer fabrication facility in San Jose, California. Costs associated with operating the fab and developing its technology, coupled with a less than optimal sales mix, drove the company to bankruptcy in 1994. The majority of Paradigm’s high-performance SRAM products were being sold into lower margin commodity markets. As part of the restructuring in 1994, Paradigm’s new management team adopted a strategy of focusing on emerging markets for higher performance asynchronous and synchronous SRAMs and specialty products. With the help of investments from Singapore-based AMCA Limited and National Semiconductor, the company emerged with record sales in the quarter ended September 1994. Unfortunately, the weakness in the SRAM market that began in late 1995 has had an adverse effect on Paradigm’s revenues.

In 2Q96, Paradigm made a move to expand its product line beyond SRAMs by acquiring startup NewLogic Corporation, a developer of logic designs with large memory arrays. However, in early 1997, the NewLogic operation was closed down so that Paradigm could focus on its core SRAM products and markets. In November 1996, Paradigm adopted a fabless supplier strategy by selling its fab to Orbit Semiconductor, thereby gaining greater flexibility and lowering its fixed costs. Orbit purchased Paradigm’s fab, which was newly converted from 125mm to 150mm wafers, for $20 million.

Approximately 25 percent of Paradigm’s sales in 1996 were attributable to sales outside the U.S., primarily in Asia and Europe. Paradigm is an ISO 9001 certified supplier.

Management

Michael Gulett President and Chief Executive Officer James H. Boswell Vice President, Sales, Europe David G. Campbell Vice President, Finance and Chief Financial Officer Richard Morley Vice President, Operations Sureel Rajpal Vice President, Sales, U.S. Douglas McArthur Director, Advance Product Development

Products and Processes

Paradigm Technology’s products include high-performance 256K, 1M, and 4M asynchronous SRAMs, 100MHz FIFO buffer-memory chips, high-speed processor-specific synchronous burst SRAMs, pipelined burst SRAMs, and high-speed Cache RAM modules. Paradigm’s most recent product announcements include the PDM31532, a 3.3 – 9ns access time 64K x 16 asynchronous design SRAM for cellular phone, high-speed telecommunications, network and portable applications; and the PDM4M4120S15M, a 1M x 32-bit, 72 – position SIMM module for digital signal processing, robotics, and instrumentation applications.

2-344 North American Company Profiles Paradigm Technology

The proprietary technology of Paradigm involves a 0.6µm dual-well CMOS process consisting of two polysilicon layers and two metal layers, with three of the four layers fully configurable. The company has also developed a 0.35µm process.

Semiconductor Fabrication Facilities

In November 1996, Paradigm sold its wafer manufacturing facility to Orbit Semiconductor and therefore, now operates as a fabless IC supplier. Paradigm has established foundry agreements with Orbit and Atmel in the U.S., NKK Corporation in Japan, and UMC in Taiwan.

Key Agreements

• In November 1996, Paradigm sold its wafer fab facility to Orbit Semiconductor for $20 million. After the purchasing agreement was complete, the two companies entered into an agreement that calls for Paradigm to receive a supply of wafers from Orbit over a specified time period.

• Paradigm and Atmel signed a five-year manufacturing, product, and technology agreement in May 1995. Terms of the agreement include guaranteed wafer supply from Atmel to Paradigm for a five year period. Moreover, Paradigm transferred its 0.6µm SRAM process to Atmel, and the two companies are jointly developing 0.5µm and 0.4µm technologies. Atmel also purchased a significant equity interest in Paradigm.

• Paradigm has an extensive relationship with Japan's NKK Corporation. NKK holds a 10 percent stake in Paradigm as well as a technology and product license for 256K and 1M SRAMs and FIFOs. The two companies worked together to co-develop the latest 4M technology. Paradigm also has access to NKK's state-of-the-art 200mm wafer fabrication facility in Japan.

• Paradigm has a strategic alliance with National Semiconductor that provides National exclusive marketing and sales rights to Paradigm’s products for military and aerospace applications. National also made an equity investment in Paradigm.

2-345 Peregrine Semiconductor North American Company Profiles

PEREGRINE SEMICONDUCTOR

Peregrine Semiconductor Corporation 6175 Nancy Ridge Drive San Diego, California 92121 Telephone: (619) 455-0660 Fax: (619) 455-0770 Web Site: www.peregrine-semi.com

Fabless IC Supplier

Employees: 40

Ownership: Privately held.

Company Overview and Strategy

Founded in 1990, Peregrine Semiconductor develops and markets high-performance commercial integrated circuits based on its patented UTSi® (ultra thin silicon) process. Initially, Peregrine focused on developing the UTSi® process and today, through joint research and product development, uses this proprietary technology to develop high-performance products targeted at specific applications such as wireless and satellite communications.

Management

Ronald E. Reedy, Ph.D. Chairman, President, and Chief Executive Officer James S. Cable Vice President, Technology and Operations Bill Peavey Vice President and Chief Financial Officer David R. Staab Vice President, Engineering and Design Milt Miller Director, Sales Jon Siann Director, Marketing

Products and Processes

Peregrine Semiconductor’s ultimate product vision is the Microcommunicator family of products. In a step-by-step process to reach that goal, the company is currently focusing its product offerings in two areas — wireless (including paging, cellular and PCs) and commercial satellite communications.

1-2GHz RF Wireless Device Market Introduced in September of 1997, the PE3282A is a 1.1GHz/510MHz Dual Fractional-N PLL IC designed for frequency synthesis, offering a unique combination of linearity, isolation and low power consumption and industry-leading phase noise performance.

2-346 North American Company Profiles Peregrine Semiconductor

Introduced in February of 1998, the PE3292 is a 1.2GHz/550MHz dual fractional-N PLL IC featuring FlexiPower™ technology. A feature of the UTSi process, FlexiPower gives the PE3292 the ability to operate with variable supply voltages down to one volt, minimizing total power consumption to as little as 2.6mW (1.2mA) single, and 3.9mW (1.9mA) dual.

Commercial Satellite Industry Peregrine provides S-level screening of its commercial products, as well as developing semi-custom ASIC solutions that meet the needs of satellite manufacturers for low-power, highly-complex, inherently radiation-hard products.

Peregrine is currently in the second phase of its product rollout plan, integrating the discrete components in RF systems, including mixers, LNAs, amplifiers and modulators. 1998 will see the introduction of a number of products that embody the outstanding capabilities of UTSi, including FlexiPower™ low-power technology, and both high integration and high linearity.

Semiconductor Fabrication Facilities

The company's devices are currently produced by Asahi Kasei Microsystems in Japan.

Key Agreements

• In January 1996, Peregrine signed a six-year fab agreement with Asahi Kasei Microsystems Co. (AKM) of Japan. AKM will provide wafer fabrication to Peregrine in exchange for process technologies. The two companies are also negotiating a joint development agreement for future products.

• In February 1998, Peregrine announced they will provide wireless semiconductor process technology to Motorola’s semiconductor business in the start of a collaborative relationship between the two companies.

2-347 Performance Motion Devices North American Company Profiles

PERFORMANCE MOTION DEVICES

Performance Motion Devices 12 Waltham Street Lexington, MA 02173 Telephone: (781) 674-9860 Fax: (781) 674-9861 Web Site: www.pmdcorp.com Email: [email protected]

Fabless IC Supplier

Company Overview and Strategy

Performance Motion Devices (PMD) designs advanced motion control integrated circuits. The primary application is the control of servo and stepper motors in robotic and automated equipment. Other applications include: semiconductor equipment; medical equipment; general automation; camera pointing; and office equipment.

The company offers complete user design support with a developer’s kit and other tools and support data including a chipset selector guide.

2-348 North American Company Profiles Performance Semiconductor Corporation

PERFORMANCE SEMICONDUCTOR CORPORATION

Performance Semiconductor Corporation 630 East Weddell Dr. Sunnyvale, CA 94089-1751 Telephone: (408) 734-8200 Fax: (408) 734-0962 Web Site: www.performance-semi.com Email: [email protected]

Fabless IC Supplier

Financial History

Performance Semiconductor is an independent, privately-held company formed in 1984. 1996 sales were in the $10 million to $25 million range. The company has five U.S. distributors with 11 offices in six states (AZ, CA, FL, NJ, NY, TX).

Company Overview and Strategy

Performance is a fabless manufacturer of high performance ICs including memory and microprocessors.

Products and Processes

Performance Semiconductor manufactures the following product lines.

RISC based microprocessors and processors which execute MIL-STD-1750A instruction Set, as well as RISC processors based on the R3000 family’s MIPS architecture.

Performance Semiconductor’s P1750A Processor product line includes devices built in CMOS for Avionics, Missile Guidance and Airborne applications. The P1750A family also includes devices built on Silicon-on-Sapphire (SOS) technology which are tolerant to Single Event Upsets (SEU) and Total Dose Radiation tolerance of greater than 100K Total Dose. The SOS devices are designed for Launch Vehicles and long term Satellite applications. A Memory Management Unit and Processor Interface Chip are also offered for general and space applications, and both are offered combined with their Enhanced Processor for MIL-STD-1750A ISA to form a Multichip Module.

High speed and low power SRAMs with densities from 1K to 1 Meg and speeds as fast as 8ns. SRAMs are sold to commercial, industrial and military markets.

The company uses CMOS technologies with capabilities including MIL-STD-883 Class B and Class C flows.

2-349 Pericom Semiconductor North American Company Profiles

PERICOM SEMICONDUCTOR

Pericom Semiconductor Corporation 2380 Bering Drive San Jose, California 95131 Telephone: (408) 435-0800 Fax: (408) 321-0933 Web Site: www.pericom.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Pericom • Bridgeport, Corset, United Kingdom Telephone: (44) (1308) 458986

Asia-Pacific: Pericom Technology (Shanghai) Co., Ltd. • Shanghai, China Telephone: (86) (21) 6485-0576 • Fax: (86) (21) 6485-2181

Financial History ($M), Fiscal Year Ends June 30

1992 1993 1994 1995 1996 1997 1998 Sales 0.5 6 19 23 41 33 49 Net Income — — 3 2 5 2 5 R&D Expenditures — — 2 3 4 4 5 Capital Expenditures — — — — 1 2 3

Employees 26 40 50 100 122 137 172

Ownership: Publicly held as of November. NASDAQ: PSEM.

Company Overview and Strategy

Pericom Semiconductor, founded in 1990, designs and markets ultra fast digital and mixed-signal CMOS and BiCMOS ICs that provide solutions to bottlenecks in high-performance computing and communications systems. The company's first products were high-performance Cache SRAMs. However, its current product line includes CMOS 5V and 3V logic clock generators and drivers, networking ICs, and application-specific switching devices. Pericom's 3V, 5V, and 3V/5V products are applicable in computing, data communications, and networking systems.

Founded originally as Pioneer Semiconductor, the company changed its name to Pericom Semiconductor in 1993 to avoid becoming confused with a number of other technology companies with "Pioneer" in their names.

2-350 North American Company Profiles Pericom Semiconductor

Management

Alex Hui President, Chief Executive Officer, Co-Founder John Chi-Hung Hui, Ph.D. Vice President, Technology, Co-Founder Patrick Brennan Chief Financial Officer Dan Wark Vice President, Operations Glen Wiley Vice President, Sales Tat C. Choi, Ph.D. Vice President, Design Engineering Mark Downing Director, Marketing

Products and Processes

Employing proprietary 0.8µm and 0.6µm CMOS and BiCMOS technologies, Pericom provides advanced logic, clock, and mixed-signal products.

• High-speed FCT bus interface logic chips with propagation delays as low as 3.2ns. • High-speed clock distribution series, including PLL implementation for high clock rates. • Fast switching, low impedance bus switches and true analog switches. • Wide architecture 16-bit FCT logic families. • Low voltage 3.3V, high-performance 8- and 16-bit FCT, LPT, LCX, and ALVCH logic families. • Frequency synthesizer ICs that provide several PLL generated output frequencies for PCs, modems, and laser printers. • Networking products for Token Ring, 100VG, and Fast Ethernet.

Semiconductor Fabrication Facilities

Pericom has foundry relationships with Chartered Semiconductor, LG Semiconductor, and TSMC.

2-351 PLX North American Company Profiles

PLX TECHNOLOGY INC.

PLX Technology Inc. 390 Protrero Avenue Sunnyvale, California 94086 Telephone: (408) 774-9060 Fax: (408) 774-2169 Web Site: www.plxtech.com Email: [email protected]

Fabless IC Manufacturer Founded: 1986

Ownership: Privately held.

Company Overview and Strategy

PLX Technology, Inc., a leading supplier of high performance interface chips since 1986, is the world leader in PCI to local bus bridge chips for the communications, networking, and industrial embedded markets. Over 500 OEM customers use PLC PCI chips in a wide variety of PCI applications including standard PC and workstation PCI add- in-boards, embedded PCI communication systems, such as routers and switches, and industry standard industrial PCI implementations such as Compact PCL, PMC, and Small PCI.

Focused on providing complete solutions for PCI implementations, PLX provides design assistance to customers in the form of Reference Design Kits and Software Development Kits. These kits, which include reference boards, API libraries, software debug tools and sample device drivers with source, allow customers to quickly bring new designs to production.

Management

Michael Salamen President Mark Easley Vice President, Marketing Scott Gibson Chief Financial Officer Bill Hart Vice President, Operations Mike Hopwood Vice President, Sales

Products and Processes

PLX’s product families are outlined below.

I2O™ Compatible PCI Bus Master I/O Accelerator Chip – The PLX PCI 9080 provides a compact, high performance PCI bus master interface with a programmable local bus. Integrating the latest in I/O technology, the PCI 9080 contains an Intelligent I/O messaging unit in hardware that allows high performance and compatible software implementations of the I2O bus protocol specification.

2-352 North American Company Profiles PLX

PCI 9050 Family – Low cost connectivity for PCI slave designs is provided by the PLX PCI 9050 family. It is specifically targeted at easing the transition of existing ISA designs to the more feature rich and performance oriented PCI bus. The 9050 provides direct slave PCI functions by interfacing the adapter’s I/O circuitry (control, address, and data lines) to a host computer’s microprocessor/memory architecture via the 32-bit PCI bus, which typically runs at 33MHz.

PCI 9060 Family – The PCI 9060 family was the first full featured PCI Interface Chip on the market and was recognized as the industry standard for PCI interface devices. Still widely used by many of the industries’ major PCI adapter suppliers and embedded designers, the PCI 9060 family, including the 3A, ES, and SD contain all the necessary features for the designs of an intelligent PCI adapter or . Depending on requirements, one or two independent DMA controllers are provided, along with a highly configurable local bus supporting 8, 16, or 32-bit requirements, both multiplexed and non-multiplexed.

Low-skew clock distribution ICs – The PLX EQuality clock distribution family of chips, EQ 6600, generate near- zero propagation delay high fidelity clock outputs referenced to an input oscillator or crystal. These products are used in mid- to high-end server and workstation designs based on Pentium and PowerPC processors as well as designs requiring tight tolerance and high fan-out clocking. The EQ 6600 all-digital implementation allows equal low-skew clock output performance between any clock outputs across one or more EQuality clock chips. EQuality clock chips permit any variable frequency reference clock input to be distributed. In addition, the chip’s digital algorithm and design, as compared with analog designs, provide higher noise tolerance, and lower power.

Key Agreements

• In November 1997, PLX Technology, Inc., and Sebring Systems agreed to work together to achieve seamless migration of PCI bus applications to the higher-performance, higher-functionality domain afforded by the Sebring Ring Connection chip, the SRC3266. The companies plan to cooperate on design and test strategies to assure compatibility between Sebring’s technology and PLX’s industry-standard PCI technology, and help customers quickly achieve scaleable PCI designs. The resulting level of performance and functionality is likely to appeal to the makers of network servers, switches, routers, and data stream aggregators, in addition to embedded systems.

• In September 1997, PLX and Performance Technologies, Inc., announced an alliance whereby PLX’s Peripheral Component Interface (PCI) technology is designed along with a PowerPC® Power QUICC communications processor from Motorola Corporation, into high-bandwidth communications systems from Performance Technologies. The first product from this alliance, the PCI370PQ, is a PCI 2.1 compliant add-in card for network servers and personal computers that blends two key components – the PLX PCI 9080 I/O Accelerator chip and Motorola’s MPC860MH® Power QUICC processor – into a single, robust Integrated Services Digital Network (ISDN) communications controller.

2-353 PMC-Sierra North American Company Profiles

PMC-SIERRA, INC.

PMC-Sierra, Inc. 105-8555 Baxter Place Burnaby, British Columbia Canada V5A 4V7 Telephone: (604) 415-6000 Fax: (604) 415-6200 Website: www.pmc-sierra.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

United States:PMC-Sierra • Natick, Massachusetts Telephone: (508) 650-3431 • Fax: (508) 650-3434

PMC-Sierra • Raleigh, North Carolina Telephone: (919) 828-8341 • Fax: (919) 828-8902

PMC-Sierra • San Jose, California Telephone: (408) 261-7221 • Fax: (408) 261-7231

PMC-Sierra • Plano, Texas Telephone: (972) 423-4135 • Fax: (972) 424-1041

Canada: PMC-Sierra • Kanata, Ontario, Canada Telephone: (613) 599-7270 • Fax: (613) 599-8067

Europe: PMC-Sierra • Warrington, Cheshire, United Kingdom Telephone: (44) (1925) 651122 • Fax: (44) (1925) 650033

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 92 83 105 189 188 127 Net Income 12 (13) (9) 1 (51) 34 R&D Expenditures 13 15 16 23 28 23

Employees 322 295 335 480 500 297

Ownership: Publicly held. NASDAQ: PMCS.

2-354 North American Company Profiles PMC-Sierra

Company Overview and Strategy

PMC-Sierra is focused on developing products that provide its customers with advanced communications semiconductor system solutions for the global information network. The company participates in the high growth communications market segments of infrastructure, local area networking and remote Internet access. PMC-Sierra provides advanced semiconductor solutions for high speed transmission and networking systems that provide the underlying networking pipelines for the global information infrastructure. The company is a leader in the area of Asynchronous Transfer Mode (ATM) communications, as well as an experienced developer of other high speed communications and LAN subsystem components for frame relay and remote Internet access applications over SONET/SDH, T1/E1, and T3/E3 transmissions lines. PMC-Sierra’s Ethernet Products Division is focused on developing high integration, low cost solutions for the competitive Ethernet marketplace. The company was founded in 1984 as Sierra Semiconductor and first offered its stock to the public in 1991. PMC- Sierra was established in 1992, and became a wholly-owned subsidiary in 1994. In 1997, the company changed its name to PMC-Sierra to reflect the corporate focus on internetworking semiconductor solutions. PMC-Sierra has developed an excellent reputation for its technical abilities in high speed physical layer design.

Management

Bob Bailey President and Chief Executive Officer Greg Aasen Chief Operating Officer Kevin Huscroft Vice President, Research and Development and Chief Technical Officer Steve Perna Vice President, Marketing and Business Development Haresh Patel Vice President, Sales Chris DeMonico Vice President, Ethernet Switching and General Manager, Portland John Sullivan Chief Financial Officer Colin Harris Vice President, Integrated Circuit Technology Marcel Villeneuve Director, Production Control Geraldine Jones Director, Administration and Human Resources Ken Mitchell Controller

Products and Processes

PMC-Sierra is a leading provider of high speed internetworking component solutions emphasizing ATM, SONET/SDH, T1/E1 and Ethernet applications. The company’s quality system is registered with the Quality Management Institute to the ISO 9001 standard. As co-founder of the SATURN Development Group, PMC-Sierra works with over 30 other member companies to define and develop interoperable, standard compliant solutions for high speed networking applications.

Semiconductor Fabrication Facilities

PMC-Sierra is a fabless semiconductor company. Its wafers are manufactured by Chartered Semiconductor and Taiwan Semiconductor Manufacturing Co. (TSMC).

2-355 Power Integrations North American Company Profiles

POWER INTEGRATIONS

Power Integrations Inc. 477 North Mathilda Avenue Sunnyvale, California 94086 Telephone: (408) 523-9200 Fax: (408) 523-9300

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends December 31

1996 1997 Sales 24 46 Net Income (1.3) 4.8 R&D Expenditures 3.6 5.2

Employees 90 130

Regional Headquarters/Representative Locations

Japan: Power Integrations, Inc. • Kohoku-ku, Yokohama-shi, Japan Telephone: (81) (45) 471-1021 • Fax: (81) (45) 471-3717

Europe: Power Integrations Europe Ltd. • Windsor, Bershire, United Kingdom Telephone: (44) (1753) 622-208 • Fax: (44) (1753) 622-209

Korea: Power Integrations International Holdings, Inc. • Seoul, Korea Telephone: (82) (2) 568-7520 • Fax: (82) (2) 568-7474

Taiwan: Power Integrations International Holdings, Inc. • Taipei 105, Taiwan Telephone: (866) (2) 727-1221 • Fax: (866) (2) 727-1223

Company Overview and Strategy

Power Integrations, founded in 1988, is a public company (NASDAQ: POWI) focused on the power conversion market. The company designs, develops, and markets integrated circuits that combine low-voltage analog and digital control capability with high-voltage power output devices in monolithic form. Their three primary markets are: cell phone chargers, PC stand-by power supplies, and TV set-top boxes.

The company's technology is used to build innovative high-voltage products for the power supply, battery charging, telecommunications, motor control, and lighting markets.

2-356 North American Company Profiles Power Integrations

Management

Howard Earhart President and Chief Executive Officer Balu Balakrishnan Vice President, Engineering and New Product Development Vladimir Rumennik, Ph.D. Vice President, Technology Dan Selleck Vice President, Sales Robert Staples Vice President, Finance and Administration Ed Pausa Vice President, Operations Clifford Walker Vice President, Corporate Development Shyam Dujari Director, Marketing

Products and Processes

Power Integrations utilizes a standard CMOS process and adds one implant to generate high voltage MOSFETs integrated into power supply and interface products. The process is capable of combining 1,200V N-channel MOSFETs, 700V P-channel MOSFETs, and 400V L-IGBTs with 5-15V CMOS and bipolar logic devices.

TOPSwitch®-II is the newest family of products for power conversion applications. In addition to integration benefits of the high voltage process technology, this family also has patented circuit and system design innovations.

The company's power supply IC product line is targeted at the needs of portable and small form-factor products such as portable computers, camcorders, cellular telephones, PBX line cards, and feature phones. The high- voltage outputs of Power Integrations' power supply circuits provide universal input voltage (85-256 VAC) capability. The high-frequency switching capability and low system component count enables low-cost, small form-factor power supply/chargers to be realized. The power supply ICs cover universal input voltage applications from 1 watt to 90 watts (1 watt to 50 watts from 100 VAC). A one-watt buck converter for non-isolated ISDN applications is also available.

Its interface IC products are designed for use in energy-efficient, variable-speed electric motors for appliances such as room air conditioners. The high-voltage capability of these products provides cost-effective level shifting capability and control for those 110/220 VAC applications. The latest product is the INT 100 half-bridge MOSFET driver, providing 800-volt level shifting and control for electric motors in the 50W to 3kW power range.

Semiconductor Fabrication Facilities

Foundry relationships with Panasonic Semiconductor Group of Matsushita and Oki Electric have been established for wafer fabrication utilizing Power Integrations' proprietary process.

Key Agreements

• Power Integrations granted Matsushita access to its technology and products for internal consumption worldwide, and for non-exclusive distribution of the products in Japan and other selected geographical areas in return for providing foundry support.

2-357 PowerTech North American Company Profiles

POWERTECH

PowerTech, Inc. 0-02 Fair Lawn Avenue Fair Lawn, NJ 07410 Telephone: (201) 791-5050 Fax: (201) 791-6805 Web Site: www.power-tech.com Email: [email protected]

Discrete Semiconductor Manufacturer

Ownership: Privately held.

Financial History ($M)

1997 Sales 2.5-5 (est.)

Company Overview and Strategy

PowerTech, formed in 1969, is a manufacturer of silicon power transistors. The primary market is for military/aerospace level products and industrial devices.

The current/voltage ranges of the products are:

Current: 10 to 2400 amps Voltage: 60 to 600 volts

The company also performs custom packaging of its and other manufacturers’ chips to meet special requirements.

Management

Alex Polner President and Chief Executive Officer

2-358 North American Company Profiles PPC Products Corporation

PPC PRODUCTS CORPORATION

PPC Products Corporation 7516 Central Industrial Drive Riviera Beach, FL 33404 Telephone: (561) 848-9606 Fax: (561) 848-1607 Web Site: www.flinet.com/~ppc/ Email: [email protected]

Discrete Semiconductor Manufacturer

PPC is a GSA-rated Small Business.

Company Overview and Strategy

PPC is a discrete semiconductor manufacturer. PPC products are distributed via 105 sales offices consisting mainly of Avnet’s Allied Electronics sales offices throughout the U.S. and in Ontario, Canada. Other distributors are Semi-Dice, Inc. (South Easton, MA), with sales offices in California and New York, as well as Universal Semiconductor, Inc. in Fort Lauderdale, FL and Bohemia, NY.

Products and Processes

PPC manufactures NPN and PNP Silicon Planar Power Transistors and Fast Switching Silicon Rectifiers. The company is a qualified source for JAN S Power Transistors and JAN, JANTX, and JANTXV devices. PPC claims to be the leader in the production of Space Level Power Discretes, manufacturing 41 MIL-S-19500 qualified JAN S products.

Planar Bi-Polar Transistors are available in voltages ranging to 1,000 volts and currents ranging from 100µA to 300 Amps. Planar Silicon Rectifiers are produced in voltages to 1,000 volts and currents ranging to 30 Amps with switching times as fast as 35 nanoseconds. PPC’s Power Darlington Transistors are available in monolithic and multi-chip configurations with and without thick-film resistors. Special assemblies available from PPC include eight MOSFET products, Schottky and IGBT. Products are quality tested to MIL-1-45208A, MIL-Q-9858A and MIL-C- 45662A standards.

Key Agreements

•In September 1997, Microsemi PPC, Inc. (PPC), formerly known as Micro PPC Acquisition Corporation, a wholly owned subsidiary of Microsemi, purchased all of the assets an assumed certain liabilities of three affiliated companies: PPC Products Corporation, Technett Seals Inc., and Semiconductors, Inc. (collectively referred to as PPC Products).

2-359 ProTek Devices North American Company Profiles

PROTEK DEVICES

ProTek Devices 29 S. Fair Lane Tempe, AZ 85282 Telephone: (602) 431-8101 Fax: (602) 431-2288 Web Site: www.protek-tvs.com Email: [email protected]

Discrete Semiconductor Manufacturer

Employees: 48

Company Overview and Strategy

ProTek is a manufacturer of transient voltage suppression products. In 1992, ProTek Devices acquired the General Semiconductor operation from the Square-D Company and has continued the basic product line. Products range from board level surface mount arrays to megawatt systems. Major customers are in the industrial, computer, telecommunications, and aerospace industries.

The specialized device products are fabricated in-house at the above address. Other products are outsourced to three foundries.

Management

Rakesh Kansal President Richard Von Barandy Vice President, Sales and Marketing Fred Matteson Manager, Operations Jerry Gross Manager, Modular Operations

2-360 North American Company Profiles QLogic

QLOGIC

QLogic Corporation 3545 Harbor Boulevard Costa Mesa, California 92626 Telephone: (714) 438-2200 Fax: (714) 668-5008 Web Site: www.qlc.com Email: [email protected]

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 52 45 58 54 70 81 Net Income 6 (5) 2 1 6 13 R&D Expenditures 9 9 8 7 10 16 Capital Expenditures — — — 1 4 4

Employees — 130 161 145 190 225

Ownership: Publicly held. NASDAQ: QLGC.

Company Overview and Strategy

QLogic Corporation is a leading designer and supplier of semiconductor and board-level I/O (input/output) products. The company’s products provide a high performance connection between computer systems and their attached data storage peripherals, such as hard disk and tape drives, CD-ROM drives and RAID subsystems. QLogic provides I/O technology solutions by designing and marketing single chip controller and adapter board products for both sides of the computer/peripheral device interlink or “bus.” Historically, the company has targeted the high performance sector of the I/O market, focusing primarily on the small computer system interface (SCSI) standard. The company is utilizing its I/O expertise to develop products for emerging I/O standards such as Fibre Channel. Now experiencing initial industry acceptance, Fibre Channel is a higher performance solution that maintains signal integrity while allowing for increased connectivity among computer systems and data storage peripherals.

2-361 QLogic North American Company Profiles

Management

Gary E. Liebl Chairman H.K. Desai President and Chief Executive Officer Thomas R. Anderson Vice President and Chief Financial Officer Mark Edwards Vice President, Sales and Corporate Marketing Larry Fortmuller Vice President and GM, Computer Systems Group David Tovey Vice President and GM, Peripheral Products Group

Products and Processes

QLogic’s semiconductor product families include:

• The FAS (Fast Architecture SCSI) Family of fast and wide SCSI controller ICs for host and peripheral applications.

• The TEC (Triple Embedded Disk Controller) Family of SCSI, Fibre Channel and ATA HDD controllers.

• The ISP (Intelligent SCSI Processor) Family of SCSI and Fibre Channel host adapter ICs for 32-bit and 64-bit interfaces.

Semiconductor Fabrication Facilities

The company utilizes outside vendors for the manufacturing of its semiconductor and circuit board products.

Key Agreements

• In August 1998, QLogic Corporation acquired the net assets of Silicon Design Resources, Incorporated (SDR), for a cash price of $2 million, plus up to an additional $8 million based upon achievement of certain performance criteria over the next four fiscal years. SDR, founded in 1995, designs and markets enclosure management controller chips for the mass storage subsystem and server markets. SDR, which recorded revenues of $686,700 in the quarter ended June, 1998, will be operated as a wholly-owned subsidiary of QLogic Corporation, with its headquarters in Austin, Texas.

2-362 North American Company Profiles QT Optoelectronics

QT OPTOELECTRONICS

QT Optoelectronics 610 North Mary Ave. Sunnyvale, California 94086 Telephone: (408) 720-1440 Fax: (408) 720-0848 Web Site: www.qtopto.com

IC Manufacturer Founded: 1990

Regional Offices/Representative Regions

U.S.: QT Optoelectronics • Dallas, Texas Telephone: (972) 447-1300 • Fax: (972) 447-1300

Asia: QT Optoelectronics Asia/Pacific • Selangor Darul Eshan, Malaysia Telephone: (603) 735-2417 • Fax: (603) 735-2417

Europe: QT Optoelectronics France S.A. • Charenton-Le-Pont Cedex Telephone: (33) 01-45-18-78-78 • Fax: (33) 01-43-75-77-57

Employees: 1,500

Ownership: Privately-held. Parent company is Recovery Partners, Inc.

Company Overview and Strategy

QT Optoelectronics is a worldwide manufacturer of optoelectronic products, including LED lamps, LED displays, optocouplers, infrared components and custom optoelectronic components for the OEM marketplace.

QT’s optocouplers are used in modems as ring detectors and on-off hook switches, in power supplies for feedback isolation, on circuit boards for logic-to-logic voltage isolation, and for input/output isolation on industrial process control equipment. The LED Lamps and Displays products are used in a wide range of consumer and industrial applications, including automotive lighting, information display, gaming equipment, status indication, and backlighting. QT’s infrared components, which include emitters, sensors and hybrid assemblies, are used for motion control and sensing, plus a variety of applications in consumer electronic products and new opportunities wireless communication devices.

In 1969, QT was originally an operating unit of Monsanto, a pioneer in LED technology and later became a division of General Instrument. Since then, optoelectronics technology and business was acquired from various semiconductor companies (i.e., Fairchild Semiconductor, General Electric, Harris Semiconductor, and Philips Semiconductor).

2-363 QT Optoelectronics North American Company Profiles

QT’s 1997 annual sales were approximately $100M.

Management

Ralph Simon President Robert M. Taber Jr. Vice President, Sales

Products and Processes

QT Optoelectronics produces over 750 different components in three product lines. Product details are as follows.

Optocouplers QT developed the OPTIOPLANAR structure for optocouplers. These devices are available in 4-, 6-, and 8-pin configurations.

4-Pin Optocouplers — Phototransistor Output with GaAs Input Hermetic Phototransistor Output with GaAs Input Photodarlington Output with GaAs Input Phototransistor Output with GaAs AC Input

6-Pin Optocouplers — Phototransistor Output with GaAs Input Phototransistor Output with AgGaAs Input Phototransistor Output with GaAs Input High Voltage Phototransistor Output with GaAs Input with integral base-emitter resistor Phototransistor Output with GaAs AC Input 10Mbit/s High-Speed Logic-to-Logic (Optologic®) AlGaAs Input Photo SCR Output with GaAs Input Bilateral Analog FET Output with GaAs Input Schmitt Trigger Output with GaAs Input Schmitt Trigger Output with AlGaAs Input Non-Zero Crossing TRIAC Output with GaAs

8-Pin Optocouplers — High Gain Split Photodarlington Output with GaAsP Output 1 Mbit/s High-Speed Transistor Output with GaAsP Input Dual Channel Phototransistor Output with GaAs Input Dual Channel 1Mbit/s High-Speed Transistor Output with GaAsP Input Dual Channel Split Darlington Output with GaAsP Input Dual Channel 10Mbit/s High-Speed Logic Gate Output with GaAsP Input 10Mbits High-Speed Logic Gate Output with GaAsP Output Logic Output with GaAs AC input

2-364 North American Company Profiles QT Optoelectronics

LED Lamps and Displays Low Current Lamps Resistor LED Lamps Surface Mount LED Lamps PCB Mount LED Indicators Light Bars and Bargraph/Panel Indicators Displays – 10-pin, 14-pin, and 18-pin. Dot Matrix Displays

Infrared Components Plastic Infrared Light Emitting Diodes Plastic Silicon Infrared Photosensors Hermetic Infrared Light Emitting Diodes Hermetic Silicon Infrared Photosensors Subminiature Emitters and Photosensors Plastic Silicon Pin Photodiodes Optologic Photosensors Optologic Optical Interrupter Switches Phototransistor Optical Interrupter Switches Photodarlington Optical Interrupter Switches Reflective Object Sensors Matched Emitter/Photosensor Pairs

In addition, QT Optoelectronics’ Visible Product Group offers design and manufacturing of LED based assemblies for customer’s application specific requirements.

Semiconductor Fabrication Facilities

QT Optoelectronics has a wafer fab facility located in Singapore, and their primary engineering and manufacturing operations are located near Kuala Lumpur, Malaysia.

2-365 Quality Semiconductor North American Company Profiles

QUALITY SEMICONDUCTOR

Quality Semiconductor, Inc. 851 Martin Avenue Santa Clara, California 95050-2903 Telephone: (408) 450-8000 Fax: (408) 496-0773 Web Site: www.qualitysemi.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Quality Semiconductor, Inc. • Hampshire, United Kingdom Telephone: (44) (1420) 563333 • Fax: (44) (1420) 561142

Financial History ($M), Fiscal Year Ends September 30

1992 1993 1994 1995 1996 1997 Sales 18 28 37 46 45 63 Net Income (5) 3 3 5 (1) .2 R&D Expenditures — — 5 6 7 9.3 Capital Expenditures — — 1 2 7 10

Employees 100 160 160 160 197 206

Ownership: Publicly held. NASDAQ: QUAL.

Company Overview and Strategy

Established in 1989, Quality Semiconductor, Inc. (QSI) is a provider of high-performance logic devices and networking and logic-intensive memory semiconductor products. Quality's strategy is to go after existing areas with higher performance parts, then create new niches that can be developed. The company targets systems manufacturers principally in the networking, personal computer and workstation, and communications industries, but also sells devices for military and high-reliability applications.

In early 1996, Quality Semiconductor purchased AWA MicroElectronics, Pty. Ltd. (now Quality Semiconductor Australia) from AWA Limited, acquiring AWA’s fab facility, foundry business, and design center in Australia. During 1996, QSI upgraded the facility from 1.5µm to 0.8µm process technologies. The new subsidiary continues to provide foundry services to AWA and its existing foundry customers. AWA Limited retains some ownership in the new subsidiary and is jointly developing new products and technologies with Quality Semiconductor.

2-366 North American Company Profiles Quality Semiconductor

Management

Quality Semiconductor Inc. Chun P. Chiu Chairman and Chief Technical Officer R. Paul Gupta President and Chief Executive Officer David Sear Executive Vice President, Chief Operating Officer Edward J. Bradley, Jr. Vice President, Manufacturing Albert R. Enamait Vice President, Sales and Marketing Gilbert C. Jones Vice President, Marketing Operations David T. Zimmer Vice President, Human Resources

Quality Semiconductor Australia Andy Brawley Manager, Operations; Director, Fab and Administration Clive Potter Director, Engineering and Design Steve Liu Vice President, Wafer Fab

Products and Processes

Quality Semiconductor produces high-performance 5V and 3.3V CMOS FCT logic devices, high-speed digital logic switches, clock management circuits, fast FIFOs, analog devices, JTAG devices, and advanced networking products. Sales of interface logic devices account for a significant majority of the company’s net product revenues.

Networking Products — QSI offers advanced CMOS Fast Ethernet transceivers for access equipment and LAN applications, as well as a 4:1 ATM multiplexer/demultiplexer with on-chip FIFO buffering for ATM switch fabric and transmission applications.

Specialty Memory Products — QSI’s memory products consist of a family of Content-Addressable Memory (CAM) products.

Logic Products — QSI offers a variety of standard 5V FCT logic devices in 8-, 16-, and 32-bit configurations, as well as a new line of 3.3V LCX logic devices for mixed-voltage applications.

2-367 Quality Semiconductor North American Company Profiles

Clock Management Devices — These products include high-performance 3.3V and 5V devices with low skew, low jitter, and low EMI-noise characteristics, and a new family of advanced programmable skew PLL clock devices (TurboClock™).

QuickSwitch® Products — The QuickSwitch product line was invented to meet the requirement for zero propagation delay multiplexing and switching functions in high-performance computing and networking systems.

QuickScan™ Products — These are derived from QSI’s QuickSwitch product line and add JTAG boundary scan capabilities.

Analog Switch Devices — This is a new family of devices designed for advanced high-performance video, audio, and networking applications.

All of QSI’s products are manufactured using advanced CMOS process technologies with geometries ranging from 0.8µm to 1.5µm. A 0.6µm CMOS process is under development.

Semiconductor Fabrication Facilities

In addition to using its newly acquired fabrication facility in Australia, QSI has foundry partners from which it receives fabricated wafers. Its current foundry partners include Seiko Instruments, Ricoh, Yamaha, and TSMC. In 1997, approximately 50 percent of QSI’s wafers were manufactured by Seiko and Ricoh.

Quality Semiconductor Australia, Pty, Ltd. (QSA) 8 Australia Avenue Homebush, NSW, 2140 Australia Telephone: (61) (2) 763-4105 Fax: (61) (2) 746-1501 Cleanroom size: 5,000 square-feet Capacity (wafers/week): 1,250 Wafer size: 150mm Processes: CMOS, BiCMOS Products: Logic and memory ICs, ASICs, foundry services Feature sizes: 0.8µm, 1.0µm, 1.2µm, 1.5µm (0.6µm in development)

2-368 North American Company Profiles QuickLogic

QUICKLOGIC

QuickLogic Corporation 1277 Orleans Drive Sunnyvale, California 94089-1138 Telephone: (408) 990-4000 Fax: (408) 990-4040 Web Site: www.quicklogic.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: QuickLogic Corporation • London, England Telephone: (44) (181) 563-7624 • Fax: (44) (181) 563-0489

Financial History ($M)

1994 1995 1996 1997 Sales 7 15 30 39

Employees 40 90 115 140

Ownership: Privately held.

Company Overview and Strategy

QuickLogic was founded in 1988 by the inventors of the programmable array logic (PAL) device. Today, the privately-held company designs and sells high density CMOS field programmable gate arrays (FPGAs) featuring high speeds and low power consumption, along with high productivity design software.

QuickLogic’s FPGAs compete with conventional high density programmable local devices and gate arrays in applications such as graphics processing, high-speed memory control, video and image processing, DSP support logic, and data acquisition.

Currently, international sales represent about 40 percent of QuickLogic’s total sales, and the company is working to increase that number.

2-369 QuickLogic North American Company Profiles

Management

Irwin B. Federman Chairman E. Thomas Hart President and Chief Executive Officer John Birkner Vice President, CAE Andrew Chan Vice President, Product Development H.T. Chua Vice President, Technology Development Michael Burger Vice President, Worldwide Sales Reginal Simpson Vice President, Operations Ronald Zimmerman Vice President, Human Relations Scott Ward Vice President, Engineering Chuck Tralka Director, Product Marketing Michael Samvelian Director, Marketing

Products and Processes

QuickLogic's programmable ASIC (pASIC) devices are implemented in a submicron CMOS process and deliver high speeds and low power consumption. All of the company's existing devices are offered in both 5V and 3.3V power supply versions. They are based on QuickLogic's proprietary metal layer, amorphous silicon ViaLink® antifuse programming element technology that offers high speeds and high densities (up to 20,000 usable gates). QuickLogic also supplies a comprehensive set of CAE development tools, operating on PCs and popular workstation platforms. An open architecture approach allows popular third-party tools to interface to the company's development environment. pASIC 1 FPGA Family — Consists of four parts in densities ranging from 1,000 usable gates to 8,000 usable gates (96 to 768 logic cells) and I/O pin counts ranging from 64 pins to 180 pins. The pASIC 1 devices are based on high-speed, low-power, two-layer-metal 0.65µm CMOS process technology. pASIC 2 FPGA Family — Consists of seven parts in densities ranging from 3,000 usable gates to 20,000 usable gates (192 to 1,440 logic cells) and I/O pin counts ranging from 120 pins to 336 pins. The pASIC 2 devices are based on high-speed, low-power, three-layer-metal 0.65µm CMOS process technology. pASIC 3 FPGA Family — consists of five high-performance devices in densities ranging from 12,000 usable gates with a maximum speed capability of 275MHz. The devices are based on an ultra high speed, low-power, four-layer- metal 0.25µm CMOS process.

Semiconductor Fabrication Facilities

QuickLogic does not fabricate its own ICs, it has a manufacturing and technology agreement with Cypress Semiconductor. However, QuickLogic does perform all FPGA product testing for both companies. To supplement the capacity it receives from Cypress, QuickLogic established a foundry agreement with TSMC in 1996.

2-370 North American Company Profiles QuickLogic

Key Agreements

• In July 1997, the company entered into a manufacturing agreement with TSMC enabling the co-development of a 0.35µm four-layer metal CMOS process for 8-inch wafers using the company’s ViaLink antifuse technology. The agreement is effective for three years and is renewable annually as a rolling three-year agreement. The agreement guaranteed certain capacity availability and requires that a minimum percentage of the total number of wafers required by the company in any one year are purchased from TSMC (excluding wafers purchased from Cypress and certain other wafer requirements), and requires “take or pay” volume commitments.

• In March 1997, QuickLogic and Cypress terminated the Existing Agreement, and replaced it with a new arrangement whereby the company’s FPGA products will no longer be second sourced by Cypress. In exchange for the termination of the Existing Agreement and the reversion of the rights to the intellectual property developed thereunder to the company, the company paid $4.5 million in cash and agreed to issue 2,603,817 shares of common stock to Cypress, resulting in a charge of approximately $23 million in the first quarter of 1997. The 2,603,817 shares of common stock to be issued to Cypress are issuable upon the consummation of an initial public offering by the company or by April 1, 1998, whichever is first. In addition, the company granted Cypress certain contractual rights as to the shares of the company’s stock held by Cypress, including the right to sell shares in this offering.

• QuickLogic and Cypress also entered into a new foundry agreement effective through the year 2001. This agreement guarantees weekly wafer starts at established prices and yields for the company’s pASIC 1 and pASIC 2 product families, which are fabricated using a 0.65µm three-layer metal CMOS process on 6-inch wafers. These products will continue to be manufactured at Cypress’ Round Rock, Texas facility, and will continue to utilize QuickLogic’s proprietary ViaLink amorphous silicon antifuse technology.

2-371 Ramtron North American Company Profiles

RAMTRON

Ramtron International Corporation 1850 Ramtron Drive Colorado Springs, Colorado 80921 Telephone: (719) 481-7000 Fax: (719) 481-9170 Web Site: www.ramtron.com www.edram.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Ramtron K.K. • Yokohama, Japan Telephone: (81) (45) 473-9372 • Fax: (81) (45) 473-9373

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 1 7 20 29 31 20.5 Net Income (23) (27) (20) (2) (6) (9) R&D Expenditures 15 19 16 11 13 11 Capital Expenditures 3 3 2 1 1 1

Employees 129 140 121 88 105 130

Ownership: Publicly held. NASDAQ: RMTR.

Company Overview and Strategy

Ramtron was established in 1984 to produce non-volatile memory products by combining the unique characteristics of ferroelectric materials with conventional integrated circuitry. The company was the first to manufacture ferroelectric memory devices. It holds 89 U.S. and international patents covering its proprietary technologies and products and more than 90 are pending.

Ramtron's principal business focus is directed toward the development of the commercial manufacture of ferroelectric RAMs (FRAMs). The company sites benefits of FRAMs as having fast write times, high write endurance, non-volatile retention, small form factors, and minimal power consumption. Applications for FRAM devices include consumer electronics, business machines, communications equipment, test instruments, industrial controls, and medical equipment.

2-372 North American Company Profiles Ramtron

Besides ferroelectric RAMs, Ramtron is also involved in the development and sale of very high speed DRAMs the company calls enhanced-DRAMs (EDRAMs), that are based on standard volatile DRAM technology. In 1995, Ramtron spun-off its EDRAM business into a wholly owned subsidiary called Enhanced Memory Systems, Inc. (EMS) which has the sole responsibility of developing EDRAMs.

EDRAMs have been demonstrated to provide SRAM performance with DRAM density in a product that approaches DRAM pricing. A large portion of the company’s EDRAM business is targeted at replacement of fast (£15ns) SRAMs in high-performance systems. As such, EDRAMs applications include a wide variety of the highest performing systems such as personal computer motherboards, accelerator boards, multiprocessor systems, disk controllers, embedded computer modules, digital signal processing systems, and video graphic systems.

Ramtron's business strategy is to manufacture its own products, to license its products on a contract basis to other companies, and to license its proprietary technologies to a limited number of IC manufacturers in exchange for royalties and access to advanced manufacturing capabilities. The company has forged alliances with IBM Microelectronics, Fujitsu, Hitachi, Rohm, Toshiba, Nippon Steel Semiconductor, Samsung, SGS-Thomson, and Asahi Chemical.

Management

L. David Sikes Chairman and Chief Executive Officer Greg B. Jones President and Chief Operating Officer Richard L. Mohr Executive Vice President and Chief Financial Officer Elliot M. Philofsky, Ph.D. Senior Vice President and Chief Technical Officer Donald G. Carrigan Vice President, Sales and Marketing Craig Rhodine Vice President and General Manager, Enhanced Memory Systems, Inc.

Products and Processes

Ramtron first demonstrated a working 256bit FRAM prototype in 1987, and in 1993, began commercial sales of 4K FRAMs. Commercial 16K and prototype 64K devices were introduced in 1994. Ramtron is pursuing the development, through its strategic alliance partners, of new high-density (1M and above) FRAM products. Ramtron's FRAM products are pin compatible with many serial and parallel EEPROMs on the market.

2-373 Ramtron North American Company Profiles

The nonvolatile storage element in Ramtron's FRAMs is a capacitor constructed from two metal electrodes with a thin-film ferroelectric material between the transistor and metallization layers of an industry standard CMOS manufacturing process.

In addition to nonvolatile memories, Ramtron has identified other products in which ferroelectric technology may be integrated, including microcontrollers, programmable logic devices (PLDs), and radio frequency identification devices (RFIDs). Ramtron's joint venture affiliate, Racom Systems, Inc., is engaged in the development of ferroelectric RFID chips and systems.

Enhanced Memory Systems' enhanced-DRAM (EDRAM) products were developed in cooperation with United Memories Inc. (UMI) and Nippon Steel Semiconductor (then NMB Semiconductor). Colorado Springs-based UMI was formed by Ramtron and NMB in 1990 (see Key Agreements). IBM is currently the primary manufacturer of EDRAMs. The company is pursuing additional foundry arrangements.

During 1996, EMS began development of a 133MHz, 16M enhanced synchronous DRAM (ESDRAM) based on the company’s EDRAM technology. Sample shipments of the device are expected to begin in mid-1998. In early 1997, EMS introduced the Enhanced 10ns family of EDRAMs that features upgraded performance speeds up to 10ns. The 10ns family is manufactured by IBM using 0.6µm process technology.

Semiconductor Fabrication Facilities

Ramtron International Corporation 1850 Ramtron Drive Colorado Springs, Colorado 80921 Cleanroom size: 11,500 square feet Capacity (wafers/week): 1,625 Wafer size: 150mm Processes: Ferroelectric CMOS and standard CMOS Products: Specialty memory ICs Feature size: 1.0µm

Ramtron's wafers are also manufactured by Rohm, Nippon Steel Semiconductor, IBM Microelectronics, and Hitachi (see Key Agreements).

Key Agreements

• In December 1997, Ramtron established a relationship with Asahi Chemical. The companies are currently working to develop a prototype FRAM-based RF/ID chip.

• In February 1997, Ramtron established a relationship with SGS-Thomson that will cover FRAM production. The agreement calls for SGS-Thomson to provide CMOS wafers to Ramtron, who will return the wafers to ST as finished 64K FRAMs. The two companies may extend this relationship in the future to include joint foundry or technology licensing agreements.

• Ramtron signed a non-exclusive licensing agreement with Samsung. Under the agreement, Ramtron licensed its FRAM technology to Samsung in exchange for certain licensing and royalty considerations.

2-374 North American Company Profiles Ramtron

• Ramtron signed a manufacturing agreement with IBM Microelectronics in May 1995 for EDRAM production. Under the agreement, IBM is serving as a foundry for the production of Enhanced Memory Systems' EDRAMs, and IBM has a non-exclusive license to sell the devices. The first products manufactured by IBM became available in October 1996. IBM will also build the company’s 16Mbit ESDRAM.

• Ramtron added Fujitsu to the list of companies with which it maintains joint design and licensing deals for ferroelectric memories. The two firms are developing a 1M FRAM device, and in June 1996, Fujitsu completed a feasibility study for 16M FRAMs. In August 1996, the agreement was amended allowing Fujitsu to use FRAM technology in the development and manufacture of embedded memory FRAM products.

• In late 1994, Ramtron signed a cross-licensing deal with ferroelectric memory competitor, Symetrix, also located in Colorado Springs. Both companies are jointly developing a 3-volt 16K FRAM based on Symetrix's Y-1 ferroelectric material technology. In addition, Ramtron's ferroelectric technology is now licensable by Symetrix to its strategic partners, which include Motorola and Matsushita, and Ramtron may license Symetrix's technology to its partners. The deal also called for Ramtron to purchase half of Symetrix for about $6 million.

• Ramtron and Rohm signed a joint manufacturing, development, and marketing deal in 1993 giving Rohm access to Ramtron's line of FRAM products. Under the agreement, Rohm is supplying Ramtron with wafers and is selling completed devices in Japan under both logos. In addition, joint development of new ferroelectric- based circuits, including microcontrollers and custom products will take place. Volume production of FRAM memories by Rohm is expected to begin in the first quarter of 1998.

• A joint program to integrate Ramtron's ferroelectric technology with Hitachi's DRAM manufacturing process was established in 1992. In early 1994, Hitachi indicated it was satisfied with its pilot program of testing and packaging midrange density FRAMs. As a result, Hitachi is working with Ramtron to design and develop 256K, 1M, and 4M FRAMs. Volume production of the 256K FRAM is expected to begin during 1998. Ramtron also agreed to license all its non-standard and standard FRAM products to Hitachi. Ramtron will rely on Hitachi as a foundry for the devices since its own fab is not capable of the feature sizes required for the larger memories.

• Toshiba agreed to jointly develop and second-source Ramtron’s FRAMs in densities of 256K and above.

• In 1988, Ramtron and NMB Semiconductor (now Nippon Steel Semiconductor) entered into a product development and license agreement for conventional 1M and 4M DRAMs. Then, in 1990, the two companies established United Memories, Inc. (UMI) to design and develop advanced memory devices (not involving Ramtron's ferroelectric technology) for both companies. In 1995, Ramtron sold all its remaining interest in UMI to Nippon Steel.

“FRAM” is a registered trademark of Ramtron International Corporation.

2-375 Raytheon North American Company Profiles

RAYTHEON

Raytheon Company 141 Spring Street Lexington, Massachusetts 02173 Telephone: (781) 862-6600 Fax: (781) 860-2520 Web Site: www.raytheon.com

IC Manufacturer

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Corporate Sales 9,122 9,334 10,098 11,804 12,331 13,673 Net Income 635 693 597 793 761 526*

Employees — — — — — 119,200

Semiconductor Sales 105 105 110 110 115 95

Employees — — — — 1,700 725

*Including restructuring and special charges.

Ownership: Publicly held. NYSE: RTNA/RTNB.

Company Overview and Strategy

Founded in 1922, as the American Appliance Company, the company adopted the Raytheon name in 1925. Early expertise was in the field of radio tubes and missile guidance. In 1964, Raytheon launched a diversification program to broaden its business base by adding commercial operations.

Today, Raytheon is focused on three core business segments: defense and commercial electronics, business aviation and special mission aircraft, and engineering and construction.

2-376 North American Company Profiles Raytheon

In electronics, Raytheon’s principal business is the design, manufacture, and servicing of advanced electronic devices, equipment, and systems for governmental and commercial markets. The company has greatly enhanced its defense electronics business through the acquisition of the Defense Systems and Electronic business of Texas Instruments and a subsequent merger with the Hughes Aircraft business of Hughes Electronics. Both of the transactions were completed in 1997. Raytheon estimates that combined 1997 revenues would be on the order of $20.5 billion, more than $15 billion of which will be in defense and commercial electronics.

Raytheon’s commercial electronics business consists of Raytheon Marine Company, a supplier of marine-related electronics and systems; Raytheon Microelectronics, which produces GaAs ICs and T/R Modules for military radar, wireless communications, and satellite applications; and Seiscor Technologies, Inc., a supplier of telephone transmission equipment. In 1997, Raytheon sold its Semiconductor unit to Fairchild Semiconductor Corporation and its Switchcraft unit to a company formed by Cortec Group and Switchcraft management.

Management

Raytheon Company Dennis J. Picard Chairman and Chief Executive Officer Peter R. D’Angelo Executive Vice President and Chief Financial Officer

Microelectronics Philip W. Cheney Vice President and Group Executive, Raytheon Electronics James V. DiLorenzo General Manager, Raytheon Microelectronics Dennis Moraros Controller James Oakes Manager, MMIC Products Jack Schuss Manager, T/R Modules and Wireless Systems John Langley Manager, Wireless Solutions – Raylink™

Products and Processes

GaAs IC

Raytheon Microelectronics manufactures a wide range of RF, microwave, and millimeter-wave GaAs ICs including cellular/PCS circuits, digital broadcast satellite (DBS) devices, Wireless Local Area Network (WLAN) components and wideband circuits. Raytheon Microelectronics also offers custom MMIC solutions and integrated T/R Modules for ground and space-based applications. To date, Raytheon Microelectronics is producing over 500,000 GaAs MMICs per week from a variety of GaAs processes. These processes include 0.5µm MESFET, 0.5µm E/D MESFET, 0.5µm D/MMIC, 0.125 and 0.5µm PHEMT. Additionally, an HBT process is in transition from its 3-inch wafer R&D line into their 4-inch wafer production line.

T/R Modules

In 1992, Raytheon Microelectronics began developing MMICs and T/R Modules for the U.S. Army’s Ground Based Radar (GBR) program — to date, over 68,000 units were built for this system. Since then Raytheon Microelectronics has designed and produced over 35,000 T/R modules for the antennas of the IRIDIUM® and Globalstar™ communications systems.

2-377 Raytheon North American Company Profiles

Raylink™

In 1997, Raytheon Microelectronics launched its own Wireless Local Area Network PC Card based on devices made in its fab and sold previously to other PC Card Manufacturers.

Semiconductor Fabrication Facilities

Raytheon Microelectronics Raytheon Semiconductor 362 Lowell Street Hartwell Road Andover, Massachusetts 01810 Bedford, Massachusetts 01730 Telephone: (978) 470-9000 Telephone: (781) 274-5000 Cleanroom size: 20,000 square feet Cleanroom size: 12,000 square feet Capacity (wafers/week): 1,000,000 Capacity (wafers/week): 1,000 Wafer size: 100mm Wafer size: 100mm Processes: GaAs Processes: NMOS, CMOS, bipolar Products: MMICs, Discretes, and T/R Modules Products: Logic and custom ICs Feature sizes: 0.125µm, 0.25µm, and 0.25µm Feature sizes: 0.5µm-1.0µm

Key Agreements

• In October 1997, Raytheon Company announced that the Department of Justice had approved the merger of Hughes Electronics’ defense operations and Raytheon.

Raytheon announced in January 1997 that it had entered into a definitive agreement with General Motors’ Hughes Electronics Corporation to bring about the merger of the Hughes defense operations (Hughes Aircraft) and Raytheon. The merger, once completed will create a combined company of more than 120,000 employees, with approximately $20 billion in sales, on a 1996 pro-forma basis, of which over $13 billion was in defense electronics.

• Raytheon has recently agreed to supply high volumes of cellular/PCS upconverters and power amplifiers to several large mobile phone manufacturers.

• The Andover, MA facility recently announced a “2X” wafer fabrication plan to double its 4-inch GaAs capacity from 500,000 to 1,000,000 ICs per week and is finalizing plans for a new 6-inch GaAs wafer fab to be completed in late 1999 and operational in the year 2000.

2-378 North American Company Profiles Real 3D

REAL 3D

Real 3D 12506 Lake Underhill Road Orlando, Florida 32825 Telephone: (407) 306-7302 Fax: (407) 306-3358 Web Site: www..com Email: [email protected]

IC Manufacturer Founded: 1996

Employees: 180

Ownership: Jointly owned by Lockheed Martin (80 percent) and Intel (20 percent).

Company Overview and Strategy

Real 3D is a leading provider of advanced computer graphics technology, focused on providing graphics technology solutions to the portable, desktop, workstation, arcade and high-end professional markets. The Company designs and manufactures custom 3D graphics chips and boards, arcade graphics chips and boards for Sega, high-end image generation systems, and other 3D solutions.

The Company was formed in January 1996, by Lockheed Martin, with a mission of bringing proven 3D graphics technology to the commercial marketplace. In December 1997, Intel purchased a 20 percent minority stake in Real 3D with Lockheed Martin maintaining majority ownership. Real 3D technology foundation comes from more than 30 years experience developing advanced 3D combat simulators and astronaut training systems.

Real 3D has an ongoing technology assistance and license agreement in place with Sega Enterprises Ltd. for the development of arcade graphics chips and boards. Real 3D has been working with Sega since 1992, and their ICs have been part of more than 200,000 arcade games chipped by Sega.

Management

Gerald W. Stanley President Joe Mazzarella Vice President, Sales and Marketing Stephen Teicher Vice President, Engineering Ralph Nichols Vice President, Products

2-379 Real 3D North American Company Profiles

Products and Processes

Real 3D’s product line includes graphics boards, high-end image generators, and a 3D laser scanning system called RealScan 3D™. The company also selectively licenses its 3D graphics technology on a royalty-bearing basis to strategic technology partners. Real 3D offers a broad range of products, including:

• Arcade graphics chips / boards for Sega • Graphics chips and boards • PRO-1000 Professional Series image generators • RealScan3D

Key Agreements

• In August 1997, Real 3D and MetaCreations announced an agreement for Real 3D to become a licensee of MetaCreations’ Real Time Geometry technology for the manufacture and distribution of a real-time, three- dimensional scanning device called RealScan 3D™. The scanning hardware and software technology, originally developed by MetaCreations’ Real Time Geometry labs, significantly reduces the cost while speeding up the process of capturing texture mapped models of complex objects such as the human face.

• In April 1997, Real 3D and Sense8® Corporation announced an agreement to provide WorldToolKit support for Real 3D’s PRO-1000 series of graphics engines. WorldToolKit, the industry’s most widely used visual simulation/virtual reality software toolkit, will significantly expand the capability for PRO-1000 users to quickly and efficiently build custom real-time applications. Sense8 Corporation is the world’s leading provider of commercially viable real-time interactive 3D/virtual reality solutions.

• In March 1997, Real 3D and MetaTools, Inc., announced an agreement to develop and license MetaTools’ Real Time Geometry technology into a broad range of Real 3D’s products. Joint development team initiatives will begin immediately with co-located engineering teams working in MetaTools’ Real Time Geometry lab facility in Princeton, NJ, and Real 3D’s Orlando, Florida, development labs. Initial funding for the joint development effort will be provided by Real 3D. MetalTools, is a company that designs develops, publishes, markets and supports software products for the creation, editing and manipulation of computer graphic images, digital art and Internet/on-line content for both professionals and consumer applications.

• In February 1998, Real 3D and Synopsys, Inc., announced an agreement to collaborate together on the development of ASIC design verification tools scheduled for release by Synopsys. As part of the agreement, Real 3D may participate in Alpha/Beta testing of the new tools, providing Synopsys with extensive PowerUser feedback on key features and product performance.

• In May 1996, Real 3D and Intel announced they had formed a technology agreement under which the two companies would co-develop a 2D/3D/video graphics chip using Intel’s Accelerated Graphics Port interface specification. The new chip and AGP interface, which Real 3D also helped design, brings a new level of graphics performance to the PC platform. The new chip, called the debuted in February 1998.

2-380 North American Company Profiles Real 3D

• Real 3D is co-developing with Chips & Technologies, Inc. a 2D/3D/video graphics chip for portable PCs. Chips and Technologies now a division of Intel, is the world’s leading supplier of graphics controllers and accelerators to the portable computer marketplace. The new chip will bring a new level of graphics performance to the portable PC platform. The new chip is set to debut in 1998.

2-381 Rendition, Inc. North American Company Profiles

RENDITION, INC.

Rendition, Inc. 999 East Arques Avenue Sunnyvale, California 94086 Telephone: (408) 822-0100 Fax: (408) 822-0199 Web Site: www.rendition.com

Fabless IC Supplier Founded: 1993

Regional Offices/Representative Locations

Europe: TOPAS Electronic GmbH • Hannover, Germany Telephone: (49) (0) 5-11-9-68-64-20 • Fax: (40) (0) 171-4-10-90-33

Asia: Macnica, Inc. • Yokohama City, Japan Telephone: 81 (45) 939-6130 • Fax: 81 (45) 939-6131

MAXCOM • Seoul, Korea Telephone: (02) 843-6233 • Fax: (02) 843-6336

MaxMega Electronics Pte., Ltd. • Singapore Telephone: (65) 7691118 • Fax: (65) 7692221

Ultima Electronics Corp. • Taipei, Taiwan, R.O.C. Telephone: (02) 843-6233 • Fax: (02) 843-6336

Ownership: Privately held.

Company Overview and Strategy

Rendition Inc. is a leading developer of integrated 2D/3D graphics accelerators for the personal computer market. The company’s products enable PC-based entertainment and multimedia users to enjoy the next generation of 3D graphics.

Management

Mike Boich President and Chief Executive Officer

2-382 North American Company Profiles Rendition, Inc.

Products and Processes

VeriteÔ V1000 is a single chip with 2D/3D graphics engine, GUI accelerator, digital video accelerator and VGA engine. This product has an embedded RISC core with a hard-wired pixel pipeline with a 64-bit EDO DRAM memory interface. The Verite™ is used in the personal computer market for add-in graphics cards and OEM motherboard implementation.

The Rendition Verite V2200, based on the Verite architecture of V1000, integrates a color palette, three DACs, dual PLLs, and a hardware cursor on-chip. It is fabricated in a 0.35 micron 3-metal CMOS process. Verite V2200s RISC processor has a number of new graphics instructions to convert floating point to arbitrary radix integer in a single clock cycle that improves direct 3D performance. Two new features is the triangle engine that is used for rendering triangles asynchronously to the setup and pixel rendering process and fill engine for fast 2D memory products.

The Verite V2100 function is identical to the V2200, but it runs at a slower speed internally, and supports only a 4Mb configuration. The V2100 supports the same 3D features, and is 100 percent software compatible with the V2200.

2-383 RF Micro Devices North American Company Profiles

RF MICRO DEVICES (RFMD)

RF Micro Devices, Inc. (RFMD) 7625 Thorndike Rd. Greensboro, NC 27409-9421 Telephone: (336) 664-1233 Fax: (336) 664-0454 Web Site: www.rfmd.com Email: [email protected]

IC Manufacturer

Financial History ($K), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales Product sales — 574 1,254 8,212 27,852 44,095 Engineering revenue 256 412 434 1,303 950 1,255 Total revenues 256 986 1,688 9,515 28,802 45,350 Net Income (loss) (1,912) (2,846) (4,122) (5,188) 1,652 (523) R&D Expenditures 1,216 1,553 2,836 4,245 6,178 8,761

Employees — — — 67 97 230

Ownership: Publicly held. NASDAQ: RFMD.

Based on shipment sales, RFMD has become a leading commercial supplier of GaAs HBT RF integrated circuits. RFMD currently derives a majority of its revenues from the sale of custom-designed products. However, the Company's strategy is to maintain a balanced product mix between standard and custom-designed products so as to reduce the Company's reliance on individual customers and product orders. TRW owns approximately 30 percent of RFMD’s stock.

RFMD has made a substantial turnaround so far in fiscal 1998. Revenues rose 66 percent over fiscal 1997 to $32.7M for the nine months ended 12/27/97, and net income rose 293 percent to $3.1M. Results were attributed to increased shipments of RFMD's small signal devices used in CDMA handsets and GaAs HBT power amplifiers for cellular and PCS handsets.

Company Overview and Strategy

RF Micro Devices was founded in 1990, to develop IC solutions for the wireless communications industry. The company is a spin-off from electronics leader and signal processing pioneer, Analog Devices, Inc.

2-384 North American Company Profiles RF Micro Devices

RFMD currently designs, develops and markets proprietary radio frequency integrated circuits (RFICs) for wireless communications applications such as cellular and PCS, cordless telephony, wireless LANs, wireless local loop, industrial radios, wireless security and remote meter reading. The company offers a broad array of products, including amplifiers, mixers and modulators/demodulators, that represent a substantial majority of the RFICs required in wireless subscriber equipment.

RFMD’s GaAs HBT power amplifiers and small signal devices have been designed into advanced subscriber equipment manufactured by leading OEMs such as QUALCOMM, Nokia, Hyundai, Samsung, Motorola and LG.

RFMD’s objective is to be the leading worldwide supplier of RFICs for a broad range of both standard and custom- designed RFICs for commercial wireless applications. RFMD’s strategy consists of the following key elements: focus on wireless markets; offer a wide range of RF products in order to position itself as a "one-stop" solution for its customers' RFIC needs; leverage its GaAs HBT capabilities; expand production capacity; and maintain a balanced product mix. However, RFMD shifted its strategy in late 1997, to a diversified technology base away from just GaAs, as evidenced by the IBM agreement in March 1998, noted below under Key Agreements. RFMD expects GaAs sales to be equaled by silicon sales in the future. The shift in strategy was moreover a break from RFMD’s technology-driven approach to a market-driven approach.

Management

William J. Pratt Chairman of the Board and Chief Technical Officer David A. Norbury President, Chief Executive Officer and Director Powell T. Seymour Vice President, Operations and Secretary Jerry D. Neal Vice President, Sales and Marketing William A. Priddy, Jr. Vice President, Finance and Treasurer Arthur E. Geissberger Vice President, Wafer Fabrication Operations

Products and Processes

RFMD’s products include digital quadrature modulators, quadrature demodulators, power amplifiers, LNA/mixers, and attenuators.

Following is a sampling of RFMD’s products.

Product category: Power amplifiers No. of products: 11 Fabrication technology: Silicon, GaAs MESFET, GaAs HBT End user devices: Cellular and PCS handsets, cordless phones, industrial radios, CATV line amplifiers.

Product category: Quadrature modulators/demodulators No. of products: 15 Fabrication technology: Silicon, GaAs MESFET, GaAs HBT End user devices: Cellular and PCS handsets, cellular and PCS base stations, cordless phones, wireless LAN cards.

2-385 RF Micro Devices North American Company Profiles

Product category: Low noise amplifiers/mixers No. of products: 10 Fabrication technology: Silicon, GaAs MESFET, GaAs HBT End user devices: Cellular and PCS handsets, cordless phones, wireless security systems.

Product category: IF components No. of products: 10 Fabrication technology: Silicon End user devices: Cellular and PCS handsets, cordless phones, industrial radios.

Product category: Gain blocks No. of Products: 10 Fabrication technology: Silicon, GaAs MESFET, GaAs HBT End user devices: Cellular and PCS handsets, cordless phones, instruments.

Product category: Transceivers No. of products: 4 Fabrication technology: Silicon End user devices: Wireless meter reading, cordless phones.

Product category: Attenuators No. of products: 3 Fabrication technology: GaAs MESFET End user devices: Cellular and PCS handsets, cellular and PCS base stations, instruments.

RFMD offers products fabricated under three distinct process technologies: GaAs heterojunction bipolar transistor (HBT), GaAs MESFET and silicon bipolar transistor. (See deal with IBM under Key Agreements below for further details on RFMD’s silicon processes). The Company believes that for certain applications, GaAs HBT devices offer advantages in terms of linearity, efficiency, reduced system complexity and size. RFMD offers SOICs in 14-, 16-, and 20-pin configurations, with other packaging options available. The company offers comprehensive simulation, including PSPICE, HSPICE, Touchstone and Harmonica proprietary modeling. IC layout and design rules checking (DRC) are accomplished using ICED. A proprietary layout versus schematic (LVS) provides parametric feedback and 100 percent circuit checking. RFMD also uses auxiliary programs to include filter design, matching section, microstrip design, and thermal analysis.

RF Micro Devices integrated circuits can operate from a single "digital" type power supply and provide digital interfaces for digitally controlled functions.

The RF mixed-signal approach allows RFMD to design ICs that integrate with DSP technology to enable a wide range of wireless products that had previously been impractical because of performance, size, or cost limitations.

2-386 North American Company Profiles RF Micro Devices

RF Micro Devices serves multiple market segments for radio frequency wireless product application. These markets range from cellular telephony (both analog and digital) to wireless security devices including:

• Cellular (digital American and European) • Personal Communication Services (PCS) – Portable Phones (shirt pocket phones) • Digital Cordless Telephony (900MHz) – Residential – Wireless Private Automatic Branch Exchange (WPABX) • Wireless Local Area Networks (WLAN) • Wireless Security Systems • Wireless Computing

Other applications served by RF Micro Devices include private mobile radio (PMR), VSAT, wireless data terminals, wireless locks, global positioning system (GPS), and wide area networks (WAN).

RFMD experienced a major set-back in its development of a Code Division Multiple Access (CDMA) chipset for QUALCOMM, its largest customer prior to May 1997, after low manufacturing, assembly and test yields resulted in high material scrap. RFMD’s inability to meet requested delivery times and quantity requirements, made QUALCOMM decide to internally produce its components and to look to other sources to replace all products purchased from RFMD.

RFMD offers GaAs MESFET and silicon components through a delivery strategy called Optimum Technology Matching (OTM) to complement its GaAs HBT products. OTM allows RFMD to offer RFIC solutions, on a component by component basis, that best fulfill each OEM's performance, cost and time-to-market requirements.

Semiconductor Fabrication Facilities

To meet demand for the RFMD's GaAs HBT products, TRW is expanding its GaAs manufacturing facility and RFMD is constructing an approximately 50,000 square foot facility to fabricate four-inch GaAs HBT wafers. RFMD believes that operating its own GaAs HBT wafer fabrication facility will improve its ability to respond to customer demand for GaAs HBT products and will provide it with greater opportunities to enhance product and process quality and reliability. RFMD expects the full transfer of process know-how and production setup from TRW will take about two years.

RFMD faces particular risks since TRW fabricates three-inch MBE wafer starting material and three-inch GaAs HBT wafers at its facility, while RFMD plans to fabricate four-inch wafers at its facility. Hence, in addition to replicating TRW's complex proprietary manufacturing processes, RFMD must be able to adapt such processes from three- inch wafers to four-inch wafers, which involves a number of technical hurdles including the development of new back-side wafer thinning processes for the larger wafers. RFMD has not yet developed these processes. Nevertheless, RFMD plans to be operating its new facility at commercial levels (i.e., capable of producing approximately 2,500 wafers per year) in the second half of 1998.

2-387 RF Micro Devices North American Company Profiles

Key Agreements

• In June 1998, RF Micro Devices, Inc. opened its Gallium Arsenide Heterojunction Bipolar Transistor (GaAs HBT) fabrication facility. The opening completes the transfer of TRW’s proprietary GaAs HBT process, exclusively licensed to RFMD for commercial wireless applications below 10 GHz. The TRW and RFMD processes are the same with the exception of the wafer size, with TRW’s being three-inch and RFMD’s being four-inch. Commercial production has already begun, with the new fab having produced more than one million RFMD components.

TRW and RFMD have recently agreed to a long-term commitment wherein TRW will continue to supply RFMD fully processed three-inch GaAs HBT wafers and four-inch Molecular Beam Epitaxial (MBE) starting material wafers to augment RFMD’s internal capability.

• TRW is currently manufacturing all of RFMD's GaAs HBT products using TRW's proprietary technologies and has granted RFMD a license to use its GaAs HBT process to design products for commercial wireless applications. TRW is required to deliver certain minimum quantities of GaAs HBT wafers to RFMD until December 31, 2000. Although TRW allocated a substantial portion of its commercial GaAs HBT wafer production, RFMD nevertheless has experienced significant difficulty obtaining sufficient production capacity to meet demand for some its GaAs HBT products. Although RFMD plans to begin fabricating its own GaAs HBT wafers in commercial quantities in the second half of 1998, using technologies licensed from TRW, they expect to remain dependent upon TRW to satisfy GaAs HBT production requirements in the future.

• RFMD has a joint agreement with TRW and Nokia Mobile Phones Ltd. to cooperate to develop and supply Nokia with RFICs that are manufactured using TRW's GaAs HBT processes. The arrangement contemplates that RFMD and Nokia will negotiate separate agreements to address the development and supply of each product. RFMD has also agreed to provide Nokia with access to certain RFIC technologies and to their GaAs HBT foundry and Nokia has agreed to provide RFMD with rights to bid for and supply Nokia's requirements for certain RFICs

• In March 1998, RFMD signed a multi-year Master Purchase Agreement with IBM’s Microelectronics Division that provides for RFMD's expanded development, manufacture and sale of custom RF ICs using IBM's advanced Blue Logic silicon process technology. RFMD has developed more than 40 RFICs using IBM's silicon technology. These products cover three major application groups: CDMA telephones (both 800MHz and PCS applications), transceivers for ISM bands up to 2.5GHz, and general purpose amplifiers. Most of these components operate on 3.0 volts making them compatible with the latest wireless applications. RFMD's silicon chips are typically very small, ranging from 0.5-1.5 square millimeters. The small size of the chip processed on IBM's 8 inch silicon process results in maximum cost efficiency.

• In August 1998, RF Micro Devices expanded their multi-year Master Purchase Agreement with IBM (outlined above). The expansion enables RFMD to develop and manufacture for sale both custom and standard RFICs using IBM’S advanced BI CMOS 5S process.

2-388 North American Company Profiles Rochester Electronics

ROCHESTER ELECTRONICS

Rochester Electronics Inc. 10 Malcolm Hoyt Drive Newburyport, Massachusetts 01950 Telephone: (508) 462-9332 Fax: (508) 462-9512 Email: [email protected] Web Site: www.rocelec.com

Fabless IC Supplier/Distributor Founded: 1981

Ownership: Privately held.

Regional Offices/Representative Locations

Europe: Rochester Electronics, Ltd. • Luton, Bedfordshire, England Telephone: (44) (1582) 488680 • Fax: (44) (1582) 488681

Company Overview and Strategy

Rochester Electronics is a source manufacturer and distributor of discontinued semiconductors. As of 1997, Rochester’s list of authorizations include AMD, Allegro, Altera, Analog Devices, Harris Semiconductor, Intel, International Rectifier, Microchip, National Semiconductor, SMC, Texas Instruments, and . The Company offers entire discontinued lines, both commercial and military, from manufacturers that reduce support for old parts to rationalize scarce manufacturing and service resources.

Management

Curt Gerrish President

Products and Processes

Rochester’s production device list includes over 4,000 part types which are manufactured from the original suppliers’ die and tooling. Its product lines include SRAMs, DRAMs, VRAMs, PROMs, logic chips, and linear devices. The company also stocks unfinished wafers and original mask sets.

Semiconductor Fabrication Facilities

Rochester uses more than 30 foundries to manufacture its product lines. In 1997, the company completed the construction of a 3,600 square foot test and burn-in facility in Newburyport, Massachusetts.

2-389 Rockwell Semiconductor Systems North American Company Profiles

ROCKWELL SEMICONDUCTOR SYSTEMS

Rockwell Semiconductor Systems Rockwell International Corporation 4311 Jamboree Road P.O. Box C Newport Beach, California 92658-8902 Telephone: (714) 221-4600 Fax: (714) 221-6128 Web Site: www.rss.rockwell.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Rockwell International Japan Co., Ltd., Semiconductor Systems • Shibuya-ku, Tokyo, Japan Telephone: (81) (3) 5371-1520 • Fax: (81) (3) 5371-1501

Europe: Rockwell Semiconductor Systems SARL • Valbonne, Sophia Antipolis Cedex, France Telephone: (33) (4) 93-00-33-35 • Fax: (33) (4) 93-00-33-03

Asia-Pacific: Rockwell International Hong Kong, Ltd., Semiconductor Systems • Wanchai, Hong Kong Telephone: (852) 2827-0181 • Fax: (852) 2827-6488

Fiscal Year Ends September 30 Financial History ($B), [except for Net Income/Capital Expenditures ($M)].

1992 1993 1994 1995 1996 1997 Corporate* Sales 5,856 3,657 4,193 5,937 7,228 7,762 Net Income 483 240 285 368 451 644

Semiconductor Systems Sales 431 530 691 875 1,593 1,579 Capital Expenditures — — 151 175 414 350

Employees (Semiconductor Systems) — — 1,695 4,000 4,500 6,000

*Restated to reflect continuing operations. Rockwell sold its Graphics Systems and Aerospace and Defense Businesses in 1996. Rockwell also spun-off their automotive business in 1997.

Ownership: Publicly held. NYSE: ROK.

2-390 North American Company Profiles Rockwell Semiconductor Systems

Company Overview and Strategy

Rockwell International Corporation was incorporated in 1928 and is engaged in the research, development, and manufacture of diversified products, including industrial automation equipment and systems, avionics products and systems and related communications technologies primarily for commercial and military aircraft and defense electronics systems, system-level semiconductor chipsets for personal communication electronics markets, and automotive components and systems.

Management

Rockwell International Corporation Dwight Decker President Moiz Beguwala Vice President and General Manager, Personal Computing Division Anthony C. D’Augustine Vice President and General Manager, Digital Infotainment Division Raouf Halim Vice President and General Manager, Network Access Division Ian Olsen Vice President and General Manager, Personal Imaging Division Vijay Parikh Vice President and General Manager, Wireless Communications Division John Algeo Vice President, Operations Lewis Brewster Vice President, Worldwide Sales Tony Kalas Vice President, Finance James Spoto Vice President, Platform Technologies Bill Tipton Vice President, Human Resources Krish Dharma Executive Director, Supply Chain Management Ashwin Rangan Executive Director, Business Process Re-Engineering and Information Technology Jeffrey Cox Director, Communications Programs

Rockwell Semiconductor Systems Don Davis Chairman and Chief Executive Officer Don Beall Chairman of the Executive Committee Mike Barnes Senior Vice President, Finance and Planning and Chief Financial Officer Bill Calise Senior Vice President, General Counsel and Secretary Bill Fletcher Senior Vice President, Technology and Business Development Earl Washington Senior Vice President, Corporate Marketing and Communications Denny Popovec Vice President and Treasurer Mike Bless Vice President, Corporate Development and Planning Lee Shull Vice President, Investor Relations

2-391 Rockwell Semiconductor Systems North American Company Profiles

Products and Processes

Rockwell Semiconductor Systems focuses on system-level semiconductor solutions primarily in the development and application of mixed-signal computing technologies. Rockwell built its first modem in 1995.

Today, Rockwell is a leading worldwide manufacturer of advanced voice, fax and data communications technology, and purportedly has the world’s largest installed base of data modems at more than 200 million. Rockwell’s share of this market has represented an important beachhead for the company during its rapid and continuing expansion into a number of key personal communications electronics markets.

Personal Computing Division Products

Focus: The PC platform, including products for desktops, notebooks and PDAs.

Through its Personal Computing Division, Rockwell serves the PC market. Modem and speakerphone are seen as key functions of the evolving multimedia PC. Modem functionality continues to converge with video capture/display functionality as modem applications expand into telephony, LAN connectivity, conferencing and audio. Over the last 40 years, Rockwell has shipped more than 200 million modems worldwide.

Rockwell opened the final chapter in its roll-out of 56Kbps modem technology with the International Telecommunications Union’s (ITU’s) February 1998 release of a final set of specifications, V.90, that are expected to be ratified as a worldwide standard later in the year.

An overwhelming majority of the key components contained in the ITU’s V.90 specifications use technologies that were either invented by Rockwell or supported by the company and other backers of Rockwell’s K56flex modem technology. This has simplified Rockwell’s transition to the new specifications, allowing Rockwell to immediately begin shipping to its customers a family of chipsets that include both V.90 and the company’s popular K56flex technology.

Network Access Division Products

Focus: Central site modems, hubs/routers/switches, analog/digital access multiplexors.

Rockwell formed its Network Access Division in April 1997, to focus on tying together all of the company’s other strategic product platforms. Network access systems are used to connect cellphones, facsimile machines, PCs and networks to the Public Switched Telephone Network (PSTN), to the Internet, to Intranets and other high- speed corporate networks, to cellular networks, and to cable networks.

Rockwell’s acquisition of Brooktree Corporation in 1996 immediately established a broad family of high-speed digital data communications products spanning the company’s existing central site modems and Brooktree’s High Bit Rate Digital Subscriber Line (HDSL) and other T1/E1 products, and packet-switched products for Asynchronous Transfer Mode (ATM) and Switched Multi-Megabit Data Services (SMDS).

2-392 North American Company Profiles Rockwell Semiconductor Systems

Personal Imaging Division Products

Focus: Products for facsimiles, printers, multifunction devices and digital imaging systems.

Personal imaging systems represent one of the fastest growing market segments in the personal communications electronics arena. These systems include fax modems and fax machines, which perhaps rank only behind the telephone as the world’s most popular communication device. Rockwell’s low-power chipsets for fax modems frequently are chosen by Japanese and other Pacific Rim manufacturers of fax machines.

Rockwell formed the Personal Imaging Division in October 1997. The division is chartered with strengthening Rockwell’s position in the fax modem chipset marketplace and using it as a springboard for adding new products that integrate Rockwell technology into high-performance multifunctional peripheral solutions for the home and office.

Wireless Communications Division Products

Focus: Complete chipset and component solutions for 900MHz digital spread spectrum cordless telephones, Global Positioning System (GPS) receivers, and PCS and cellular handsets.

Rockwell’s Wireless Communications Division focuses on a market for wireless communications devices that is experiencing unprecedented growth. At the beginning of 1997, there were more than 140 million subscribers to wireless systems throughout the world, increasing by 3.5 million per month. There is a growing demand for wireless consumer products that include cordless phones, cellular/PCS handsets and other wireless communications devices, including GPS receivers.

Rockwell’s goal is to provide complete antenna-to-microphone chipsets for a wide variety of standards and user applications. The Wireless Communications Division currently offers a broad range of full-system semiconductor solutions. They start with a complete product line delivering advanced features for 900Mhz-digital spread spectrum cordless telephones, a complete system solution for GSM, and continue with a PHS chipset which maintains the best-in-class talk and standby times. Rockwell also offers GPS receiver chipsets and modules, and high efficiency power amplifier products for digital cellular and PCS applications. Future offerings will include radio modules and complete chipset solutions for a wide variety of digital cellular and PCS applications, such as the Digital European Cordless Telephones (DECT), and CDMA standards.

Digital Infotainment Division Products

Focus: Digital set-top boxes/games, digital VCR/DVD-HDTV peripherals; Internet terminals.

Rockwell formed its Digital Infotainment Division in April 1997. Digital Infotainment, or the delivery of digital video from a storage device or via satellite or cable transmission, represents a major platform opportunity for Rockwell. The market for digital interactive information and entertainment products, digital TV receiver products and other digital media products is expected to grow rapidly during the balance of this decade and beyond. These products will require a variety of silicon-based functions: MPEG-related circuitry, POTS or xDSL modem technology, broadband wireless and cable demodulation products, tuners and other MCU and video/graphics processing technology, and DVD channel and servo components. This silicon content — excluding RAM and x86 processors — is expected to reach upwards of $50 per system.

2-393 Rockwell Semiconductor Systems North American Company Profiles

Rockwell established its first toehold in the digital infotainment market with a family of video encoder and decoder products and core multimedia processing technology that the company acquired along with Brooktree Corporation in September 1996.

The acquisition of ComStream’s Hi Media Division expanded Rockwell’s product portfolio to include broadband wireless and cable demodulation products and tuners. The Hi Media division has a pioneering record in broadband satellite and cable transmission technologies, and at the time of the acquisition had shipped more than three million demodulation ICs to leading set-top box manufacturers.

Semiconductor Fabrication Facilities

Between 1994 and 1996, Rockwell invested more than $400 million in its Newport Beach fabrication facility to more than double monthly wafer starts. The expansion added approximately 40,000 square feet of cleanroom space and increased capacity to 25,000 eight-inch 0.5 micron wafers per month. The facility handles eight-inch wafers (200mm) using 0.5 micron process technology, and process flow goes from polished silicon wafers through wafer probe test in Newport Beach, to Mexicali package assembly and test of multi-die packages.

On February 8, 1996, Rockwell began work in Colorado Springs, Colorado, on the first phase of a $1.3 billion project to expand a wafer fabrication facility that the company purchased from United Technologies Microelectronics. This facility will ultimately comprise two silicon wafer fabrication modules as part of a planned 450,000 square foot MegaFab capable of handling 30,000 wafers per month using 0.25 micron process technology. The exterior shell is expected to be completed in 1998. Rockwell has delayed the schedule for launching full-volume production here until late 1999.

Rockwell uses a combination of internal manufacturing resources and external foundry resources depending on cost and availability factors. In early 1994, Rockwell executed an agreement to acquire additional 200mm wafer capacity through a minority equity investment in Chartered Semiconductor Manufacturing, Pte. Ltd. of Singapore. Under the agreement, Rockwell is guaranteed capacity in Chartered’s new $1.3 billion Fab 2 facility in Singapore. The new plant began operations in late 1995.

In early 1996, Rockwell and SubMicron Technology announced a long-term technology transfer and wafer supply agreement. Rockwell has transferred its 0.5 micron and 0.35 micron CMOS wafer processes and SubMicron has guaranteed wafer capacity at its new $1.3 billion, 200mm facility near Bangkok, Thailand.

Rockwell Semiconductor Systems Rockwell Semiconductor Systems Digital Communications Division Digital Communications Division 4311 Jamboree Road 4311 Jamboree Road Newport Beach, California 92660 Newport Beach, California 92660 Fab 4 Fabs 5 and 6 Cleanroom size: 15,000 square feet Cleanroom size: 40,000 square feet Capacity (wafers/week): 3,750 Capacity (wafers/week): 6,250 Wafer size: 125mm Wafer size: 200mm Process: CMOS Process: CMOS Products: MPRs, MPUs, DSPs, ASICs, Products: MPRs, DSPs, memory ICs, linear ICs. Feature sizes: 0.35µm-0.65µm Feature sizes: 0.8µm-2.0µm

2-394 North American Company Profiles Rockwell Semiconductor Systems

Rockwell Semiconductor Systems Rockwell Semiconductor Systems 1575 Garden of the Gods Road 1575 Garden of the Gods Road Colorado Springs, Colorado 80907-3486 Colorado Springs, Colorado 80907-3486 Fab 7 Fab 8 Cleanroom size: 25,000 square feet Cleanroom size: 65,000 square feet (Class 1) Capacity (wafers/month): 750 Capacity (wafers/month): 3,750 Wafer size: 125mm Wafer size: 200mm Process: CMOS Process: CMOS Products: Linear ICs, ASICs, MPRs, MPUs Products: MPRs, MPUs, DSPs, ASICs Feature sizes: 0.8µm, 1.0µm Feature size: 0.35µm (future: 0.25µm and 0.18µm) (Purchased from UTMC in 1995). (Operations to start in late 1999).

Rockwell Semiconductor Systems Microelectronic Technology Center 2427 West Hillcrest Drive Newbury Park, California 91320 Telephone: (805) 375-1256 Capacity (wafers/week): 400 Wafer size: 100mm Processes: HBT, MESFET GaAs Products: ASICs, receivers, power amps, high-speed digital circuits. Feature sizes: 0.5µm-2.0µm

Key Agreements

• In March 1998, Rockwell and PairGain Technologies, Inc. announced an agreement whereby Rockwell will license PairGain’s DMT ADSL (Discrete Multi-Tone Asymmetric Digital Subscriber Line) Falcon chip, the industry’s first 8Mbps single-chip DMT ADSL processor. The companies will also jointly develop a family of ADSL and G.lite devices.

Terms of the agreement call for Rockwell to compensate PairGain via licensing and royalty fees for exclusive rights to its DMT ADSL technology over a two year period. The agreement also calls for an intellectual property exchange between the two companies and a close collaboration on the development of future, highly integrated ADSL and G.lite devices.

• In early 1997, Rockwell licensed the ARM810 and the ARM7TDMI “Thumb” 32-bit RISC microprocessor core technologies of Advanced RISC Machines Ltd., as well as a core to be developed in the future. Rockwell will integrate the cores into a variety of communications products.

• In 4Q96, Rockwell and Lucent Technologies jointly announced plans to make the two companies’ 56Kbps modem products interoperable.

2-395 Rockwell Semiconductor Systems North American Company Profiles

• In July 1995, Rockwell signed a five-year foundry agreement with IMP, Inc. for the wafer fabrication of CMOS mixed-signal ICs.

• Rockwell is teamed with McCaw Cellular Communications to develop and provide a Cellular Digital Packet Data (CDPD) chipset that enables portable PCs to send digital data over cellular phone networks.

2-396 North American Company Profiles Ross Technology

ROSS TECHNOLOGY

Ross Technology 5316 Highway 290 West Austin, Texas 78735 Telephone: (512) 349-3108 Fax: (512) 349-3101 Web Site: www.ross.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Ross Europe • La Hulpe, Belgium Telephone: (32) (2) 652-1014 • Fax: (32) (2) 652-1062

Financial History ($M), Fiscal Year Ends March 30

1995 1996 1997 1998 Sales 39 101 83 42 Net Income (11) 18 (87) (38) R&D Expenditures 13 16 25 6 Capital Expenditures — 13 7 6

Employees 75 175 235 236

Ownership: Publicly held. NASDAQ: RTEC.

Company Overview and Strategy

Ross Technology is a majority owned subsidiary of Fujitsu Ltd., which acquired the firm from Cypress Semiconductor in mid-1993 for about $22 million. In November 1995, Ross completed its initial public offering, reducing Fujitsu’s share to 60 percent. A minority position in Ross is also held by (five percent).

Originally established in 1988, Ross is involved in the design, development, and marketing of advanced RISC microprocessors based on the SPARC architecture pioneered by Sun Microsystems. Besides SPARC microprocessors, Ross also offers a complete line of high-end motherboards and systems. Ross Technology is a supplier of SPARC™ microprocessors and SPARC system products to both the OEM and end-user markets. Its stated objective is to drive SPARC, the industry’s highest-volume reduced instruction set computing architecture, to increased performance leadership and market share.

2-397 Ross Technology North American Company Profiles

Management

Jack W. Simpson, Sr. President and Chief Executive Officer Fred T. May Chairman Frank A Baffi Vice President, Sales and Marketing Carter Godwin Chief Accounting Officer and Controller Francis A. “Kit” Webster Chief Financial Officer

Products and Processes

Ross Technology's current family of RISC microprocessors include the 32-bit Colorado™ 2, 3, and 4 hyperSPARC™ lines. The superscaler, superpipelined hyperSPARC processors are based on a 0.4µm triple- level-metal CMOS process and deliver performance of up to 200MHz. The company continues to develop its next-generation Viper microprocessor technology.

To support its hyperSPARC microprocessors, Ross also offers core logic chipsets.

A full line of system building blocks, including hyperSPARC™ microprocessors and SPARC Version 8-compliant motherboards and ASIC chipsets, for OEM system suppliers and for end-user upgrades. The upgrade products significantly increase performance while maintaining compatibility and preserving previous end-user investments in hardware and software.

The new Quad 200 MHz hyperSPARC multiprocessing microprocessor upgrades from Ross fulfill the need for improved performance and multiprocessing by end-users, are compatible with both SunOS® and the Solaris® operating systems, and maintain full Sun/SPARC compatibility.

Semiconductor Fabrication Facilities

The company's devices are manufactured by Fujitsu.

Noteworthy News

• In June 1998, Ross Technology announced the orderly shutdown of its operations and served notice on its employees.

2-398 North American Company Profiles S-MOS Systems

S-MOS SYSTEMS

S-MOS Systems, Inc. 150 River Oaks Parkway San Jose, California 95134 Telephone: (408) 922-0200 Fax: (408) 922-0238 Web Site: www.smos.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Central America: S-MOS Systems, Inc. • Chicago, Illinois Telephone: (847) 517-7667 • Fax: (847) 517-7601

Northeast America: S-MOS Systems Inc. • Wakefield, Massachusetts Telephone: (617) 246-3600 • Fax: (617) 246-5443

Southeast America: S-MOS Systems, Inc. • Raleigh, North Carolina Telephone: (919) 781-7667 • Fax: (919) 781-6778

Financial History ($M)

1992 1993 1994 1995 1996 1997 Sales 152 137 135 190 210 152

Employees 210 210 220 210 215 *117

*R&D Group split off.

Ownership: Privately held.

Company Overview and Strategy

S-MOS Systems Inc., established in 1983, designs, develops, and markets a full line of very-low-power and low- voltage (2V) advanced CMOS integrated circuits for a variety of market applications including desktop, notebook, and palmtop computers, handheld instrumentation, data and telecommunications, and mobile and portable communications devices. The company is divided into five key business units: Semiconductor Manufacturing, Graphics and other ASSP, MCUs, ASICs, and Card Products. The company provides silicon foundry services through its Japanese affiliate, Seiko-Epson Corporation.

2-399 S-MOS Systems North American Company Profiles

Management

Tadakatsu Hayashi Chairman, President, and Chief Executive Officer Eiichi Suda Vice President, Product Creation Kai P. Yiu Vice President, Advanced Systems Division Ian R. Mackintosh Executive Director, ASIC Business Unit Takami Takeuchi Executive Director, Finance Dan Beck Director, Marketing Communications

Products and Processes

Standard Produc ts Business Unit Memories — SRAMs, mask ROMs, EEPROMs. Controllers — VGA-LCD controllers, 3D graphics accelerators. Drivers — LCD drivers. Microcontrollers — low-power 4-bit and 8-bit microcontrollers.

ASIC Business Unit Gate Arrays — SLA40000 Series: 0.45µm CMOS process with two or three layers of metal, 13K to 288K raw gates, and 128 to 400 available I/Os. — SLA30000 Series: 0.6µm CMOS process with two or three layers of metal, 18K to 216K raw gates, and 128 to 376 available I/Os. — SLA20000 Series: 0.65µm CMOS process with two and three layers of metal, 12K to 200K raw gates, and 64 to 368 available I/Os. — SLA9000F Series: 0.6µm CMOS process, 3K to 44K raw gates, and 80 to 256 I/Os. — SLA9000 Series: 1.0µm CMOS process with two layers of metal, 4K to 36K raw gates, and 82 to 240 available I/Os. — SLA100X Series: 2.0µm CMOS process with two layers of metal, 1K to 8K raw gates, and 78 to 178 available I/Os.

2-400 North American Company Profiles S-MOS Systems

Standard Cells — SSC5000 Series: 0.8µm CMOS process, 7K to 107K raw gates, and 112 to 432 available I/Os. — SCC2500 Series: 1.6µm CMOS process, 300 to 16K raw gates, and 44 to 256 I/Os. — SCC2000 Series: 2.0µm CMOS process, 250 to 11K raw gates, and 40 to 192 I/Os. Embedded Arrays — SSL20000-1: RAM-DAC embedded array for PC video and graphics applications. — SSL20000-2: LAN/Ethernet embedded array for LAN controller applications. — SSL20000-3: RAM/ROM embedded array for , cellular phone, and PDA applications.

Card Products Business Unit Subsystem design and assembly. CARD-586 – the newest and smallest PC motherboard with AMD’s 5x86 133MHz CPU. The CARD-586 is 33 percent faster than the CARD-486D4, 100MHz version introduced in 1996.

Contract Manufacturing Services Foundry, test, and packaging services through Japanese affiliate Seiko-Epson.

Semiconductor Fabrication Facilities

Design, engineering, and marketing of S-MOS' products are handled at its San Jose headquarters. Manufacturing is done at Seiko-Epson's fabrication facility in Fujimi, Nagano Prefecture, Japan.

2-401 S3 North American Company Profiles

S3

S3 Incorporated 2801 Mission College Boulevard Santa Clara, California 95052-8058 Telephone: (408) 588-8000 Fax: (408) 980-5444 Web Site: www.s3.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: S3 Japan K.K. • Tokyo, Japan Telephone: (81) (3) 3345-7630 • Fax: (81) (3) 3345-7390

Asia-Pacific: S3 Taiwan • Taipei, Taiwan Telephone: (886) (2) 757-6768 • Fax: (886) (2) 757-6880

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 31 113 140 316 439 436 Net Income 4 19 6 35 42 9 R&D Expenditures 5 12 18 42 63 96 Foundry Fab Investment — — — 36 93 104

Employees 68 141 230 444 678 570

Ownership: Publicly held. NASDAQ: SIII.

Company Overview and Strategy

S3® Incorporated, founded in 1989, pioneered graphics acceleration in 1991 when it introduced the world’s first single-chip graphics accelerator, significantly improving the performance of the personal computer (PC).

Since then, S3 has delivered several generations of firsts — from the first 32-bit and 64-bit graphics accelerator families to the first integrated 2D, 3D and video accelerator to the first full-featured audio accelerator designed for the mainstream PC market. Consistently meeting the needs of the rapidly evolving PC market, S3 combines high- performance with optimized software drivers and content development programs to deliver complete multimedia solutions. S3 also partitions its solutions to work with existing PC hardware to further maximize cost.

2-402 North American Company Profiles S3

Management

Walter Amaral Senior Vice President and Chief Financial Officer Rick Bergman Vice President and General Manager, Mobile Products John Brothers Vice President, Architecture and Software Paul Franklin Senior Vice President, Operations Cecilia Hayes Vice President, Human Resources Terry Holdt Chief Executive Officer, President and Chairman of the Board Daniel Karr Vice President, Worldwide Sales Anoop Khurana Vice President, Engineering and Desktop Products Michael Nell Vice President, Marketing and Desktop Products Werner Stahel Vice President, Central Engineering

Products and Processes

S3 offers a variety of 64-bit and 128-bit graphics and multimedia accelerator ICs, as well as supporting software drivers. In 1996 and 1997, the company significantly expanded its product offerings from 2D graphics acceleration to audio processing, 3D acceleration, and mobile multimedia acceleration. S3’s IC products are listed below.

Desktop The latest addition to its ViRGE® family of 2D, 3D and video accelerators, S3’s ViRGE/GX2 Home PC/TV accelerator is a fully integrated multimedia acceleration solution providing support for TV-out, DuoView™ dual- display capability, Accelerated Graphics Port (AGP) and high-quality Digital Video Disc (DVD).

S3’s Trio3D accelerator delivers the industry’s highest 2D graphics performance, advanced video conferencing/video training capabilities and “business-ready” 3D graphics. Tailored to the needs of the corporate and SOHO PC markets, the Trio3D delivers OEMs with a cost-effective hardware/software compatible upgrade path for both ViRGE and Trio-based products.

2-403 S3 North American Company Profiles

Mobile Combining the same level of 2D, 3D and video capabilities found in S3’s desktop accelerators with advanced power management and flat panel display support, S3’s second-generation mobile product — the ViRGE/MX accelerator — enables the development of a new generation of productivity, entertainment and Internet applications for the mobile PC market. Providing industry-first technologies such as fully integrated TV-out, DuoView dual display capability and AGP support, the ViRGE/MX accelerator exceeds the performance and functionality levels of core features available for the mobile PC platform.

S3’s third generation mobile accelerator — the ViRGE/MXi — is the industry’s first 3D graphics accelerator with Integrated DRAM for mainstream notebook PCs. With two megabytes of S3-designed DRAM (known as S3RAM™), the ViRGE/MXi provides leading 2D/3D performance, improved power management and industry-first technologies such as integrated Macrovision copy protection for DVD and DuoView dual display technology.

Audio S3’s SonicVibes audio accelerator is the industry’s first, full-featured PCI-based audio solution for the mainstream PC market. Integrating the capabilities of a into a single chip, S3’s SonicVibes audio accelerator delivers affordable sound quality previously found only in expensive, high-end studio systems.

Semiconductor Fabrication Facilities

The majority of S3's silicon products are currently manufactured by TSMC and UMC. In 1995, S3 entered into a partnership with UMC and Alliance Semiconductor to establish a new jointly owned wafer foundry company in Taiwan called United Semiconductor Corporation (USC). S3 enjoys 16 percent ownership in USC, which began processing 200mm wafers in 3Q96. S3 has the right to purchase up to about 31 percent of the USC fab’s output. See UMC’s profile for data on USC’s fab facility.

2-404 North American Company Profiles Scenix Semiconductor

SCENIX SEMICONDUCTOR

Scenix Semiconductor, Inc. 3140 De La Cruz Blvd., Suite 200 Santa Clara, California 95054 Telephone: (408) 327-8888 Fax: (408) 327-8880 Web Site: www.scenix.com Email: [email protected]

Fabless IC Supplier

Company Overview and Strategy

Founded in January 1996, by Steve Leung, Scenix Semiconductor, Inc. designs and markets high-performance microcontrollers (MCUs) for embedded system applications. In November 1997, it received $3.85 million as the initial part of its first round of venture capital funding; that round was completed in early 1998, with the receipt of another $3.85 million.

The company announced the SX Series of microcontrollers in August 1997, and shipped its first production units in December 1997. The MCUs are produced by world-class manufacturing partners, under contract to Scenix. The SX is positioned as “the world's fastest and most flexible 8-bit MCU platform.” Designed for high-volume digital electronic systems, including consumer, automotive and industrial products, the SX Series combines high performance with features enabling affordable system costs.

Scenix has a domestic direct sales operation which is supplemented by a full-service distributor for North America, EBV Electronics (San Diego HQ), as well as a Manufacturers Representative channel composed of 14 domestic firms with a total of 23 offices across 18 states. Scenix uses Parallax, Inc. (Rocklin, CA) for distribution into Germany and the U.K., Comfile Technology (Seoul) for Korea, Sumisho Electronic Devices (Tokyo) for Japan, and Ciponic Technology Co., Inc. for Hong Kong.

Management

Steve Leung President and Chief Executive Officer Stephan Thaler Vice President, Marketing

Products and Processes

The company's flagship product is the SX Series microcontroller family. Running at up to 50MHz and able to execute most program instructions in a single clock cycle, the SX Series delivers up to 50 MIPS. The company claims this is 10 to 50 times greater performance than typical 8-bit MCUs. The fast processing speed and jitter-free interrupts, combined with on-chip programmable Flash memory (EEPROM), enable users to create ‘virtual peripherals’ running on the SX.

2-405 Scenix Semiconductor North American Company Profiles

The SX Series MCUs incorporate on-chip CPU, 2K X 12-bits of EEPROM, 136 bytes of SRAM, and commonly used oscillators, timers, power-on and brown-out resets, and multi-input wakeups.

The SX architecture includes 33 instructions designed to be object-code compatible with the PIC16C5X® series of MCUs. The SX is optimized for performance, C-compiler support, and full UL1998 compliance.

2-406 North American Company Profiles Seeq Technology

SEEQ TECHNOLOGY

Seeq Technology, Inc. 47200 Bayside Parkway Fremont, California 94538 Telephone: (510) 226-7400 Fax: (510) 657-2837 Web Site: www.seeq.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends September 30

1992 1993 1994 1995 1996 1997 Sales 37 33 21 23 31 31.4 Net Income (11) (4) (8) 1 3 4.7 R&D Expenditures 5 3 3 3 3 3.5

Employees 190 161 67 67 74 70

Ownership: Publicly held. NASDAQ: SEEQ.

Company Overview and Strategy

Seeq Technology was established in 1981 to develop, produce, and market EEPROMs. Over the years the company has undergone a series of transitions that has created a company that is today much different than it was founded to be. Seeq began developing Ethernet products in 1982 and adopted a strategy to have its products manufactured by outside foundries in 1989. As a result of the foundry alliances that were established, the company shut down its wafer fab facility in 1992 and thus became a fabless IC supplier. In early 1994, the company abandoned the market it had itself created by selling its EEPROM business to competitor Atmel Corporation for $10 million. Additionally, the company's Ethernet adapter board product line was discontinued in early 1994.

Seeq now focuses exclusively on local area network (LAN) communication devices and subsystems. These products are targeted at system manufacturers in the personal computer, workstation, printer, networking, hub, switch, router, NIC, and telecommunications markets. Fast Ethernet devices accounted for 66 percent of total revenues in 1997, up from 31 percent in 1996.

2-407 Seeq Technology North American Company Profiles

Management

Alan V. Gregory Chairman Philip J. Salsbury, Ph.D. President and Chief Executive Officer Stephen Dreyer Director, Engineering Gary Fish Vice President, Finance, Chief Financial Officer Robert C. Frostholm Vice President, Sales and Marketing James Middleton Director, Operations Kent Andres Director, Quality and Reliability

Products and Processes

Seeq supplies Ethernet data communication controllers, encoder/decoders, coaxial and unshielded twisted pair cable CMOS transceivers, and networking modules. The company also sells media signaling ICs for the high- speed ATM (Asynchronous Transfer Mode) LAN market. Its products are designed using proprietary digital and mixed-signal CMOS processes, including submicron technologies (0.8µm, 0.6µm and 0.35µm).

Semiconductor Fabrication Facilities

Seeq has established several agreements with wafer-based and ASIC-based foundry suppliers. Its volume wafer processing partners are AMI, Samsung and TSMC. Ricoh and Samsung are used for turn-key manufacturing using either a standard cell or a gate array approach.

Key Agreements

• Hualon Microelectronics holds a 10 percent stake in Seeq Technology and is providing foundry services for the supplier. The two companies also agreed to jointly develop and market network ICs.

2-408 North American Company Profiles Semicoa Semiconductor

SEMICOA SEMICONDUCTOR

Semicoa Semiconductor 333 McCormick avenue Costa Mesa, CA 92626 Telephone: (714) 979-1900 Fax: (714) 557-4541

Discrete Semiconductor Manufacturer

Ownership: Privately held.

Financial History ($M)

1997 Sales 5-10 (est.)

Company Overview and Strategy

Semicoa, formed in 1968, manufactures small signal transistors, small signal RF transistors, power transistors and photodiodes for the hi-rel military and space markets.

The company also manufactures a broad line of commercial transistors for the industrial markets. Many of these devices were acquired by the purchase of transistor product lines form General Semiconductor Industries and Harris Semiconductor. Typically, the products are packaged in hermetically sealed metal cans or ceramic packages.

The company has automated manufacturing equipment, including wafer fabrication, pre-assembly, assembly, screening and final testing. All transistors are also available as chips for hybrid circuits.

Semicoa is ISO9001 certified.

Semicoa’s headquarters in Costa Mesa, houses all wafer fabrication, assembly, test, screening and support operations.

2-409 Semtech North American Company Profiles

SEMTECH

Semtech Corporation 652 Mitchell Road Newbury Park, California 91320 Telephone: (805) 498-2111 Fax: (805) 498-3804 Web Site: www.semtech.com

IC Manufacturer

Financial History ($M), Fiscal Year Ends January 31

1993 1994 1995 1996 1997 1998 Sales 20 21 36 62 74 103 Net Income 0.4 1 2 7 8 15 R&D Expenditures 1 1 2 3 5 9 Capital Expenditures — — 1 4 4 —

Employees — 340 372 500 505 560

Ownership: Publicly held. NASDAQ: SMTC.

Company Overview and Strategy

Semtech Corporation, founded in 1960, is a leading manufacturer of high quality analog and mixed signal products, dedicated to providing customers with cost effective, innovative solutions for power management, interface and protection.

In October 1997, Semtech acquired Edge Semiconductor located in San Diego, California. This acquisition positioned Semtech as a leading manufacturer of proprietary and commercial IC products for the automated test equipment market.

Semtech continues to focus on supplying high quality analog and mixed signal integrated circuits to end-market applications that include test and measurement, communications, computers and computer peripherals, video and industrial equipment.

2-410 North American Company Profiles Semtech

Management

John D. Poe President and Chief Executive Officer Raymond E. Bregar Executive Vice President, Corporate Operations David I. Anderson Vice President, IC Design and Development David G. Franz, Jr. Vice President, Finance, and Chief Financial Officer Jean Claude Zambelli Vice President, Sales and Marketing Wylie Plummer Vice President, ATE Division

Products and Processes

Semtech offers a wide range of analog and mixed signal integrated circuits, transient voltage suppression devices and ATE components and custom analog circuits designed for solving today’s complex power management, protection and interface issues.

Semiconductor Fabrication Facilities

Semtech Corpus Cristi Semtech Santa Clara 121 International Boulevard 1111 Comstock Street Corpus Christi, Texas 78406 Santa Clara, California 95054 Telephone: (512) 289-0403 Telephone: (408) 727-6562 Wafer size: 4 inch Capacity (wafers/week): 2,000 Process: Bipolar Wafer sizes: 4 inch, 5 inch Products: IC design Processes: CMOS, bipolar Feature size: 3.0µm Products: ASICs, linear ICs, discretes, foundry Feature sizes: 3.0µm, 4.0µm, 5.0µm

Semtech Corporation Semtech - ATE Division (formerly Edge Semiconductor) 652 Mitchell Road 10021 Willow Creek Road Newbury Park, California 91320 San Diego, California 92151 Telephone: (805) 498-2111 Telephone: (619) 695-2633 Products: Discretes

2-411 Sensory North American Company Profiles

SENSORY

Sensory, Inc. 521 East Weddell Drive Sunnyvale, California 94089 Telephone: (408) 744-9000 Fax: (408) 744-1299 Web Site: www.sensoryinc.com

Fabless IC Supplier

Employees: 35

Ownership: Privately held.

Company Overview and Strategy

Sensory develops and markets technologies that enhance communications with products. Sensory offers the Interactive Speech™ product line — a complete offering of integrated circuits and software-only solutions for speech recognition in consumer electronics and telephony handsets. Sensory’s low-cost ICs include the RSC- Series general-purpose microcontrollers featuring a comprehensive suite of speech input and output technologies. Sensory’s software speech recognition technology runs on a range of microcontrollers and DSPs.

Management

Todd Mozer President and Chief Executive Officer Mark Frankel Vice President, Sales Mike Kaskowitz Vice President, Engineering Keith Kitami Vice President, Operations and Services

Products and Processes

Sensory is dedicated to providing the highest accuracy speech recognition solutions at the lowest system cost. Sensory employs a large R&D team working on neural networks, dynamic time warping, time domain speech compression, plus advanced software and IC designs. Sensory’s software speech recognition lowers system costs by substantially reducing processing and memory requirements. Sensory’s IC-based solutions further lower costs by integrating multiple technologies and features on a single chip. RAM, ROM, automatic gain control (AGC), output amplifier, and A/D and D/A converters are all integrated on-chip, reducing the need for external circuitry.

2-412 North American Company Profiles Sensory

The Interactive Speech™ line of products includes both IC and software based speech recognition solutions. Sensory’s Interactive Speech products offer a full range of speech technologies featuring speaker-independent and speaker-dependent discrete word speech recognition, speech and music synthesis, voice record, DTMF generation and speaker verification. Sensory’s Interactive Speech ICs include the RSC series, general purpose microcontrollers with speech I/O, plus a line of easy-to-implement chips which can be pin-configured or controlled by an external host microcontroller. Sensory’s software technologies run on a variety of microcontrollers and DSPs. Sensory’s software technologies include Car Command™ for automotive applications and other noise environments.

2-413 Sigma Designs, Inc. North American Company Profiles

SIGMA DESIGNS, INC.

Sigma Designs, Inc. 46501 Landing Parkway Fremont, California 94538 Telephone: (510) 770-0100 Fax: (510) 770-2640 Web Site: www.sigmadesigns.com Email: [email protected]

IC Manufacturer Founded: 1982

Financial History ($000s), Fiscal Year End January 31

1993 1994 1995 1996 1997 1998 Sales 27,058 34,989 43,700 26,374 41,214 36,982 Net Income (7,166) (29,546) (8,773) (14,708) 1,529 (5,648) R&D Expenditures — — — 4,499 4,688 4,948 Capital Expenditures — — — 38 113 92

Employees 195 151 138 60 86 71

Ownership: Publicly held. NASDAQ: SIGM.

Company Overview and Strategy

Sigma Designs, Inc. makes multimedia chipsets and playback cards for use in PCs. The Company uses Moving Picture Experts Group (MPEG) technology for its REALmagic product line and markets its products to OEMs, VARs (Value Added Resellers), and retail customers throughout the world.

2-414 North American Company Profiles Sigma Designs, Inc.

Management

Thinh Q. Tran Chairman of the Board, President, and Chief Executive Officer Silvio Perich Senior Vice President, Worldwide Sales Dan Chen Senior Vice President, Technology Jacques Martinella Vice President, Engineering Prem Talreja Vice President, Marketing Kit Tsui Director, Finance, Chief Financial Officer, and Secretary James Pio Director, Operations

Products and Processes

Sigma Designs offers chipsets for high performance 2D and 3D graphics acceleration for PC manufacturers and add-on card makers. The Company also offers complete MPEG-1 and MPEG-2 playback solutions for both desktop and notebook computers.

REALmagic add-on cards were the first low cost MPEG multimedia playback controllers for the PC to target the home and corporate PC markets. Product details are as follows.

REALmagic Chipsets • REALmagic PRO chipset features REAL OverlayÔ technology and is capable of supporting video playback at up to 1600 x 1200 resolution in 24-bit colors. • REALmagic PC-MPEG chipset incorporates all the features of the REALmagic PRO chipset, plus Sigma’s own Integrated MPEG video and audio recorder. • REALmagic Explorer chipset provides the new Zoomed Video (ZV) Port technology for notebook computers. This technology gives notebook computers the ability to display full-screen, full-motion video by allowing direct access to the video memory of the graphics controller via the PCMCIA slot. • REALmagic 64/GX is a 2D graphics accelerator chip and incorporates advanced video filtering.

REALmagic Board Products • REALmagic Maxima is a MPEG playback card designed for multimedia capable home PCs. Its REAL OverlayÔ technology makes it compatible with virtually all VGA graphics cards available. • REALmagic Ultra has all the features of REALmagic Maxima, plus Windows PCM sound (WAV files) playback capability and TV signal output for corporate computer-based training applications, kiosks, and multimedia presentations.

Key Agreements

• In mid-1997, Sigma Designs Inc., and the Haitai I & C, subsidiary of the Haitai Group of Companies, signed a distribution and joint product development agreement. Haitai distributed the REALmagic DVD/MPEG-2 multimedia kit using the Sigma Designs DVD/MPEG-2 playback card to over 400 franchised stores in Korea.

• On May 3, 1996, Sigma Designs Inc. acquired Active Design Corporation, a multimedia developer, in a pooling of interests.

2-415 Signal Processing Technologies North American Company Profiles

SIGNAL PROCESSING TECHNOLOGIES (SPT)

Signal Processing Technologies, Inc. 4755 Forge Road Colorado Springs, Colorado 80907 Telephone: (719) 528-2300 Fax: (719) 528-2370 Web Site: www.spt.com

Fabless IC Supplier

Employees: 100

Company Overview and Strategy

Signal Processing Technologies (SPT) is a supplier of high-performance data conversion and signal conditioning integrated circuits. It was formed in 1983 as a business unit of Honeywell's semiconductor group. SPT was then acquired in 1989 by a group of private investors and an employee team and was established as a separate corporation. In June 1990, the company became a wholly-owned subsidiary of Japan's Toko, Inc., a worldwide supplier of electronic components and integrated circuits.

Management

Ben Takada President Richard Mintle Director, Sales and Marketing Alfi Moscovici Director, Engineering Mike Ruebenson Director, Finance and Administration

Products and Processes

SPT offers a portfolio of products that includes high-speed comparators and A/D and D/A converters. The company's primary focus is on developing proprietary, high-performance signal conditioning and data conversion products. It has received funding from its parent to develop new analog products designed for a variety of commercial, industrial, and military applications.

Semiconductor Fabrication Facilities

Toko acts as the foundry for SPT. In late 1992, SPT purchased a former Digital Equipment Corp. R&D facility, which more than doubled the company's engineering and test area. The facility includes a 10,000 square-foot space that SPT may convert into a Class 10 or Class 1 fab in the future.

2-416 North American Company Profiles Silicon Composers

SILICON COMPOSERS

Silicon Composers, Inc. 470 San Antonio Rd., Suite F Palo Alto, California 94306 Telephone: (650) 843-1135 Web Site: www.silcomp.com Email: [email protected]

IC Manufacturer

Company Overview and Strategy

Silicon Composers is an ASIC and printed circuit board designer and manufacturer, as well as a software developer (operating systems, device drivers, algorithms). Additionally, the company offers manufacturing services to companies whose hardware has already been designed in-house. Silicon Composers was founded in 1985. Its first product was the Delta Board. The company serves the independent manufacturer and OEM markets.

Products and Processes

Silicon Composers’ SC32 is a 32-bit high-speed, general purpose microprocessor optimized for subroutine calls and returns, single-cycle instruction execution and multitasking. The dual-stack architecture of the SC32 is similar to the that found in the Forth language. (The company claims its SC/Forth language, a Forth-83 Standard-based version, is the world's fastest 32-bit Forth language). Instruction fetches occur in parallel with the previous instruction's execution resulting in one clock cycle instructions, providing speeds in the 60 MIPS range at 10MHz. The SC32 was developed at Johns Hopkins University.

The company claims the “SC32 combines the speed of DSP hardware with the ease of programming a general- purpose microprocessor in a high-level language to significantly reduce development time.” The SC32 is used for dedicated applications, general computing environments, embedded systems control, multi-tasking systems, data acquisition, image and numerical processing and applications requiring large, non-segmented program, data or memory-mapped I/O capability. Key features include: one clock cycle instruction execution; two clock cycle data memory access; and two 32-bit, 16-deep stacks on chip with the first four registers of each stack (user registers, program counter, zero register and processor status word register) accessible from the instruction set.

2-417 Silicon Composers North American Company Profiles

Silicon Composers’ ASIC design and fabrication services use advanced standard cell design environments. An extensive variety of functional cores is also maintained. The company has particular expertise in the following areas:

• High performance mixed digital and analog system design; • Embedded real-time control applications; • Automotive; • Image processing; • Disk Drives; • Scanners • Printers; • Peripherals; • Scientific-aerospace (including Mil-Spec); • PALs, GALs; and • Gate arrays.

Since its founding, Silicon Composers has built over 100 types of PCBs. Boards produced have been between two and eight layers and have included mixed-signal digital and analog, and mixed through-hole and surface mount.

2-418 North American Company Profiles Siliconix

SILICONIX

Siliconix Incorporated (Member of TEMIC Semiconductors) 2201 Laurelwood Road Santa Clara, California 95056-0951 Telephone: (408) 988-8000 Fax: (408) 970-3950 Web Site: www.siliconix.com

IC Manufacturer

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 155 171 197 250 269 322 IC Sales 43 36 34 64 65 81 Discrete Sales 112 135 163 186 204 241 Net Income 5 7 11 24 26 33 R&D Expenditures 8 13 16 19 21 18 Capital Expenditures 13 18 25 28 40 —

Employees 1,202 1,211 1,172 1,269 1,228 1,320

Company Overview and Strategy

Founded in 1962, Siliconix designs, manufactures, and markets ICs and discrete components for switching, motor control, and power management in computers, automotive, instrumentation, and telecommunications applications. AEG Capital Corporation became a majority shareholder of the company in December 1990, increasing its ownership from 38 percent to 80 percent of the company's outstanding stock. In July 1992, Siliconix was joined with Telefunken Semiconductors, Matra MHS, and Dialog Semiconductor to form the semiconductor division of TEMIC, the microelectronics group of Daimler-Benz AG, a German automotive, electronics, and aerospace conglomerate.

In 1996, Siliconix restructured its business to better reach its target markets. Power MOS, Power IC, and Signal Processing product units were created with profit and loss responsibilities for their respective product lines. The Power MOS and Signal Processing units report jointly to Siliconix and the Discrete Components Division of TEMIC Semiconductors. The Power IC unit reports jointly to Siliconix and the Integrated Circuits Division of TEMIC Semiconductors.

2-419 Siliconix North American Company Profiles

Management

Richard J. Kulle President and Chief Executive Officer King Owyang Executive Vice President, Technology and Silicon Operations Jürgen F. Biehn Senior Vice President and Chief Financial Officer G. Thomas Simmons Vice President, Strategic Marketing and Business Development

Products and Processes

Siliconix's power transistors and integrated circuits are mainly used for power management and motion control in communications, computers, and automotive systems. The company's analog switches, analog multiplexers, and low-power transistors are used to sense, switch, and route signals in video, multimedia, instrumentation, and test equipment in consumer and industrial applications.

In 1997, sales of power MOSFETs, the company’s fastest growing product group, and power ICs accounted for about 75 percent of total sales.

2-420 North American Company Profiles Siliconix

Siliconix provides products and technologies that directly answer the market's demand for smaller, more efficient, and more cost-effective components. The company's Little Foot® discrete power transistors are the industry's most compact solution for motion control in hard disk drives and for load management in portable computers. These miniaturized products can be mounted directly on the printed circuit board, and are the first such power devices small enough to fit in a PCMCIA card. The company's Little Foot® line has been designed into telecom systems, automotive air bag triggers, and numerous other applications where space-savings and efficiency are at a premium. In early 1997, Siliconix announced a family of specialized power MOSFETs as part of its Little Foot® product line. The devices are designed to work with most low-voltage pulse width modulation (PWM) controllers. Each of the new devices is designed to handle a different power level, and thus each targets a different application.

Siliconix's power integrated circuits include a family of high-frequency switchmode regulator and controller ICs designed for use with Lite Foot or Little Foot® discretes and offering the optimal level of integration for DC-to-DC conversion in battery-operated equipment, including laptop and notebook computers. For data storage customers the company offers highly integrated chips for voice coil and spindle motor control. Other IC products include power interface devices for computers equipped with dual battery packs or PCMCIA slots, power ICs for bus control in automobiles, and analog switches and multiplexers for use in signal switching and routing in electronic instruments and industrial equipment.

Siliconix utilizes CMOS, DMOS, BiCMOS, and BiC/DMOS (BCDMOS) technologies in the manufacture of its IC and discrete products. The company's power ICs are manufactured using its proprietary self-isolated BCDMOS technologies, which include the BCD15 process for producing power ICs operating from 2.5V to 15V and the BCD60 process for producing power ICs operating up to 60V.

Semiconductor Fabrication Facilities

Siliconix Incorporated Siliconix Incorporated 2201 Laurelwood Road 2201 Laurelwood Road Santa Clara, California 95056 Santa Clara, California 95056 Fab 2 Fab 3 Capacity (wafers/week): 2,000 Capacity (wafers/week): 1,500 Wafer size: 100mm Wafer size: 150mm Processes: CMOS, DMOS, BiCMOS, BCDMOS Processes: CMOS, DMOS, BiCMOS, BCDMOS Products: Linear and power ICs, discretes Products: Power ICs and discretes Feature size: 3.0µm Feature sizes: 0.8µm-1.5µm

2-421 Siliconix North American Company Profiles

Siliconix/TEMIC Itzehoe, Germany Cleanroom size: 44,000 square feet (Class 1) Wafer sizes: 150mm, 200mm Processes: PowerMOS, BiCMOS Products: Discretes

Siliconix also uses a foundry in Taiwan for the production of some of its cost-sensitive analog switch and low-power discrete product lines.

High-volume assembly and product testing is handled at the company's facilities in Kaohsiung, Taiwan, a joint venture in Shanghai, China, called Simconix, and at subcontractors in the Philippines, India, Taiwan, and China. A limited amount of assembly and product test is performed in Santa Clara.

2-422 North American Company Profiles Simtek

SIMTEK

Simtek Corporation 1465 Kelly Johnson Boulevard Colorado Springs, Colorado 80920 Telephone: (719) 531-9444 Fax: (719) 531-9481 Web Site: www.simtek.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 0.5 3 1 2 5 7 Net Income (6) (6) (4) (3) 0.1 0.8 R&D Expenditures 3 2 2 1 1 2

Employees 25 32 25 17 17 22

Ownership: Publicly held. NASDAQ: SRAM.

Company Overview and Strategy

Simtek Corporation has designed, developed, and marketed non-volatile semiconductor memory products since it commenced business operations in 1987. Its concentration has been on the design and development of fast nvSRAMs (non-volatile SRAMs) and associated products and technologies.

Simtek's products are aimed at avionics subsystems, portable computers and instruments, medical instrumentation, navigation aids, robotics, telecommunications systems, and other high performance applications.

2-423 Simtek North American Company Profiles

Management

Richard L. Petritz Chairman Douglas Mitchell President and Chief Executive Officer Christian Herdt Vice President, Engineering Sheldon A. Taylor Director

Products and Processes

Simtek's nvSRAM product family includes 4K, 16K, 64K, and 256K devices with access speeds ranging from 25ns to 45ns. The nvSRAMs utilize a unique patented memory cell technology called Novcel, which integrates fast SRAM and EEPROM elements in each cell. In late 1993, Simtek introduced its AutoStore™ nvSRAMs, which automatically detect power loss and transfer data from SRAM into EEPROM.

Simtek uses an advanced implementation of silicon-nitride-oxide-semiconductor (SNOS) technology in the design of its products. The company's Novcel technology is compatible with basic CMOS technology, allowing nvSRAM memory cells to be incorporated with other system level semiconductor products.

Simtek’s products are based on 1.2µm and 0.8µm process technologies. In 1997, products based on 1.2µm process technology represented 45 percent of sales, while products based on 0.8µm process technology made up the remaining 55 percent.

Semiconductor Fabrication Facilities

Simtek has foundry agreements with Chartered Semiconductor Manufacturing (CSM) of Singapore and Zentrum Mikroelektronik Dresden of Germany for the manufacture of its wafers.

Key Agreements

• Simtek signed an agreement with Zentrum Mikroelektronik Dresden (ZMD) in mid-1994 to install its 1.2µm process in ZMD's fab in Germany and to jointly develop 0.8µm process technology. The agreement was later modified to bypass the installation of 1.2µm technology and instead install 0.8µm technology. ZMD also received a license to sell Simtek's 64K and 256K nvSRAMs built in the 0.8µm process.

In 1995, the two companies expanded their relationship to include the joint development of additional nvSRAMs using the 0.8µm process. ZMD agreed to finance the development in exchange for shares in Simtek. In the second quarter of 1996, ZMD began supplying Simtek with 64K finished units based on 0.8µm process technology. ZMD is the largest shareholder of Simtek, owning 30 percent.

• Simtek entered into a manufacturing and development agreement with Chartered Semiconductor Manufacturing (CSM) in 1992 for 64K through 1M nvSRAMs. CSM will provide Simtek with wafers at least through 3Q98.

• Simtek established an agreement in 1989 with GEC Plessey Semiconductors under which GEC Plessey has the right to incorporate Simtek's non-volatile memory technology into its ASICs. In 1990, the agreement was extended to grant GEC Plessey a worldwide license to manufacture and market Simtek's nvSRAM devices.

2-424 North American Company Profiles Single Chip Systems

SINGLE CHIP SYSTEMS

Single Chip Systems Corporation 10905 Technology Place San Diego, California 92127 Telephone: (619) 485-9196 Fax: (619) 485-0561 www.scs-corp.com

Fabless IC Supplier

Ownership: Privately held.

Company Overview and Strategy

SCS Corporation (Single Chip Systems) is a venture capital funded company that was founded in technology. Specifically, SCS develops and produces held programmable IC products for the radio frequency identification (RF/ID) market. The company also assembles its ICs into electronic ID tags. SCS announced product in May 1997, and is now the largest volume producer of RF/ID tags.

Management

Jacob S. Jacobsson President and Chief Executive Officer Bruce B. Roesner, Ph.D. Chairman and Chief Technology Officer Gregory A. Bohdan Chief Financial Officer

Products and Processes

The company's first product is i2 system, an electronic ID tag and scanner system that offers a significant increase in performance and decrease in price compared to existing systems.

I2 and the I2 logo are trademarks of SCS Corporation.

Semiconductor Fabrication Facilities

SCS's ICs are manufactured at independent foundries.

2-425 Sipex North American Company Profiles

SIPEX

Sipex Corporation 22 Linnell Circle Billerica, Massachusetts 01821 Telephone: (508) 667-8700 Fax: (508) 667-8310 Web Site: www.sipex.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Nippon Sipex Corporation • Chiyoda-ku, Tokyo, Japan Telephone: (81) (3) 3254-5822 • Fax: (81) (3) 3254-5824

Europe: Sipex SARL • Rungis Cedex, France Telephone: (33) (1) 4687-8336 • Fax: (33) (1) 4560-0784

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 29 28 23 30 37 51 Net Income (4) (4) (5) (2) 4 13 R&D Expenditures 2 2 3 4 5 5 Capital Expenditures — 1 1 1 2 6.5

Employees — — — 220 247 277

Company Overview and Strategy

Sipex Corporation (NASDAQ: SIPX) is a leading designer and manufacturer of high-performance, high valued- added analog integrated circuits. The company is focused on three market areas: data communications and telecommunications; battery powered/portable products; and industrial controls/instrumentation. Sipex serves these market sectors with three primary product lines: interface circuits, low power application-specific analog circuits, and data converter products. The company pioneered the design, development, and manufacture of electroluminescent lamp (EL) driver circuits.

2-426 North American Company Profiles Sipex

Sipex was established in 1965 under the name Hybrid Systems Inc. and until the late 1980’s focused on the design and manufacture of data conversion products utilizing hybrid technology, primarily for the military market. The company merged with DataLinear Corporation in 1986 and then with Dielectric Semiconductor Inc. in 1987, at which time the company name was changed to Sipex Corporation. Then in 1988, the company acquired Barvon BiCMOS Technology, Inc., a designer and manufacturer of custom and standard monolithic products for commercial markets. The development of new standard hybrid products was discontinued in 1989, and while the company continues to support the military markets with existing hybrid products, its focus today is on commercial products.

International sales accounted for approximately 38 percent of the company’s net sales in 1997.

Management

James E. Donegan Chairman, President, and Chief Executive Officer Frank R. DiPietro Executive Vice President and Chief Financial Officer Raymond W.B. Chow Senior Vice President Sanford Cohen Senior Vice President, Technology Tim Dhuyvetter Senior Vice President

Products and Processes

Sipex offers both standard and custom products. The standard products include interface (line drivers/receivers), electroluminescent lamp driver circuits, data conversion products, and other linear products, while the custom products include full-custom monolithic ICs and custom multichip products. The company also provides dielectrically isolated silicon substrates to a broad spectrum of semiconductor manufacturers.

For interface products, Sipex offers a full line of products, including low-power single interface products supporting RS-232 and RS-485 standards and programmable multi-mode serial interface transceivers allowing single chips to communicate in up to eight different standards. These products are fabricated in a high-voltage BiCMOS process technology and specialize in low-power 5V-only operation.

The low-power application-specific products utilize a proprietary dielectrically isolated (DI) BiCMOS process technology that allows both very low voltages (1V) and very high voltages (100V) to be used simultaneously on the same IC. The company’s EL driver circuits are based on this specialized process.

For data converter products, Sipex specializes in high-accuracy 12-bit A/D and D/A converters.

2-427 Sipex North American Company Profiles

The broad base of semiconductor processes and technologies used by Sipex enable it to design products optimized for each application. Sipex focuses on leveraging its specialized dielectrically isolated BiCMOS technology, which the company believes is particularly well suited to the low-power, low-voltage requirements of battery powered/portable products.

The company utilizes its own fabrication facility for producing 3.0µm to 5.0µm dielectrically isolated complementary bipolar and BiCMOS linear devices, and has strategic foundry relationships for producing 0.8µm to 4.0µm BiCMOS and CMOS linear devices.

Semiconductor Fabrication Facilities

As already mentioned, the company’s own wafer fabrication facility produces products utilizing the company’s DI complementary bipolar and BiCMOS processes. The company’s BiCMOS and CMOS products are manufactured using fully processed wafers supplied primarily by UMC, Orbit Semiconductor, and Calogic Corporation.

Sipex Corporation 491 Fairview Way Milpitas, California 95035 Telephone: (408) 945-9080 Fax: (408) 946-6191 Capacity (wafers/week): 500 Wafer size: 100mm Processes: Bipolar, BiCMOS Products: Linear ICs Feature sizes: 3.0µm-5.0µm

2-428 North American Company Profiles Solitron Devices, Inc.

SOLITRON DEVICES, INC.

Solitron Devices, Inc. 3301 Electronics Way West Palm Beach, Florida 33407 Telephone: (561) 868-4311 Fax: (561) 863-5946 Web Site: www.solitrondevices.com Email: [email protected]

IC Manufacturer Founded: 1959

Financial History ($000s), Fiscal Year Ends February

1996 1997 1998

Sales $6.7 $7.2 $7.9 Net Income — 139 194 R&D Expenditures 0 0 0 Capital Expenditures — 121 114

Employees — 105 116

Ownership: Publicly held. NASDAQ: SODI.

Company Overview and Strategy

Solitron Devices, Inc. designs and manufactures more than 1500 standard semiconductor types including Darlingtons, IGBTs, JETs, MOSFETs, Rectifiers, Voltage Rectifiers, Voltage Regulators, and Rad-Hard components for various satellite and space exploration programs.

Solitron Devices, Inc. is well known for producing custom and standard power solid-state components for the aerospace, defense, industrial, medical, and commercial industries worldwide.

Solitron pioneered the combining of small signal circuitry with power semiconductors to create hybrid circuits for high-end industrial and military/aerospace applications. Solitron was one of the first companies to integrate MOSFETs and IGBTs into power hybrid circuits, and has the capability to incorporate Rad-Hard, Single Event Gate Rupture (SEGR) resistant MOSFETs into its products. In 1968, Solitron Devices, Inc. developed the first quad power transistor module packaged in a copper package with ceramic eyelets, which were used to drive the wheels of the Lunar Rover vehicle on the moon.

2-429 Solitron Devices, Inc. North American Company Profiles

Management

Shevach Saraf Chairman, President, and Chief Executive Officer Tom Ruth Vice President, Finance, and Chief Financial Officer Dave Harrison Vice President, Sales and Marketing

Products and Processes

MOS MEMORY ANALOG DRAM ✔ Amplifier SRAM ✔ Interface Flash Memory ✔ Consumer/Automotive EPROM ✔ Voltage Regulator/Reference ROM Data Conversion EEPROM ✔ Comparator Other (Including Non-Volatile RAM) ✔ Other (Includes Telecom)

MOS LOGIC DIGITAL BIPOLAR General Purpose Logic Bipolar Memory Gate Array General Purpose Logic Standard Cell Gate Array/Standard Cell Field Programmable Logic Field Programmable Logic Other Special Purpose Logic Other Special Purpose Logic MPU/MCU/MPR MOS MICROCOMPONENT MPU OTHER MCU Full Custom IC MPR ✔ Discrete DSP Optoelectronic

Semiconductor Devices • More than 1,500 standard transistor and rectifier part types. • Planar transistors with currents ranging form 1 to 200A and voltage ranging from 40 to 1600V. • Rad-Hard Semiconductors and Hybrids.

Power Transistors • Power MOSFETs, N- and P- Channel. • IGBTs. • Power Bipolar, NPN and PNP including Darlingtons.

2-430 North American Company Profiles Solitron Devices, Inc.

Semiconductor Fabrication Facilities

Solitron Devices, Inc. 3301 Electronics Way West Palm Beach, Florida 33407 Telephone: (561) 868-4311 Fax: (561) 863-5946 Cleanroom size: 30,000 square feet Processes: Bipolar, MOS

2-431 Space Electronics North American Company Profiles

SPACE ELECTRONICS (SEI)

Space Electronics, Inc. 4031 Sorrento Valley Boulevard San Diego, California 92121 Telephone: (619) 452-4167 Fax: (619) 452-5499 Web Site: www.spaceelectronics.com

Fabless IC Supplier

Financial History ($M)

1995 1996 1997 Sales 4 10 11.2

Employees — — 75

Ownership: Private-employee owned.

Company Overview and Strategy

Space Electronics, Inc. (SEI) was established in 1992 as a spin-off of Science Applications International Corporation (SAIC) Microelectronics Technology Center. The focus of Space Electronics is to address the niche market of spacecraft microcircuits. The company’s proprietary Rad-Pak™, Rad-Coat™, and LPT™ technologies enable off-the-shelf commercial microelectronic components to survive the typical radiation levels encountered in space.

Space Electronics Inc. has grown to an internationally recognized supplier of microelectronics for space applications. They sell to every major space contractor including NASA, Lockheed Martin, Orbital Sciences, Space Systems Loral, Boeing, TRW and Hughes. Their foreign customers include Mitsubishi, SAAB/Ericsson Space and the European Space Agency. Their microcircuits are currently in orbit aboard many spacecrafts including Mars Surveyor, Iridium, Globalstar, and Cassini.

In 1996, they purchased from Megatek Corp. their 2D graphics product line, inventory and capital assets. This business unit is called Megatek Graphics™ and is currently manufacturing PMC, VME and SBus graphics accelerator boards for the industrial and military markets.

SEI’s third business unit is Hi-Rel Components and Services which encompasses high reliability components, upscreening services, and analytical services.

2-432 North American Company Profiles Space Electronics

Management

Robert Czajkowski Chief Executive Officer David J. Strobel President Paul Blevins Chief Financial Officer

Products and Processes

Key space IC product lines include memory chips (EEPROMs, SRAMs, DRAMs, FIFOs), Analog ICs (DACs, Op Amps, ADCs, voltage regulators), Logic (PLDs, CPUs, FPGAs, I/O-fiber channel, MCMs and hybrids and power MOSFETs). Megatek Graphics’ line manufactures PMC, VME and SBus graphics accelerator boards.

Key Agreements

• In March 1998, Space Electronics Inc. announced that it had signed a memorandum of understanding with Actel Corporation to develop and market a new line of high-reliability, radiation-tolerant Field Programmable Gate Array (FPGA) products. The agreement calls for the two companies to combine Space Electronics’ patented RAD-PAK package shielding technology with Actel’s commercial FPGA products. The first products are expected by the second quarter of 1998.

2-433 SST North American Company Profiles

SILICON STORAGE TECHNOLOGY (SST)

Silicon Storage Technology, Inc. 1171 Sonora Court Sunnyvale, California 94086 Telephone: (408) 735-9110 Fax: (408) 735-9036 Web Site: www.ssti.com

Fabless IC Supplier Founded: 1989

Regional Offices/Representative Locations

Europe: Silicon Storage Technology Europe • Staines Middlesex, U.K. Telephone: (44) (17) 8 449 0455 • Fax: (44) (17) 8 449 0512

Japan: Silicon Storage Technology Asia • Yokohama, Japan Telephone: (81) (45) 471-1851 • Fax: (81) (45) 471-3285

U.S. Central: Silicon Storage Technology • Clearwater, FL Telephone: (813) 771-8819 • Fax: (813) 771-8719

U.S. East: Silicon Storage Technology • Ipswich, MA Telephone: (978) 356-3845 • Fax: (978) 356-6286

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 1* 4* 4 40 93 75 Net Income 1 0.2 (5) 6 12 (7) R&D Expenditures 1 2 3 4 7 9

Employees — — — — 130 180

*Primarily license revenues.

Ownership: Publicly held since 1995. NASDAQ: SSTI.

2-434 North American Company Profiles SST

Company Overview and Strategy

Silicon Storage Technology (SST) designs, manufactures and markets flash memory components for the computer, communications, and consumer markets. The company currently offers medium density devices ranging from 512K to 4M, for a range of applications in the computer, communications, multimedia, and video game markets.

Product development at SST is focused on developing new memory products featuring higher densities, such as 16M and 32M flash memories, for use in digital cameras, memory cards, and digital cellular phones. For the company’s higher density products, the company is also developing advanced process technologies. SST’s near-term strategy is to focus on the flash memory market as it continues to replace traditional nonvolatile memories. SST’s longer term plans are to expand into the mass storage and flash embedded controller markets.

Management

Bing Yeh President and Chief Executive Officer Jeffrey L. Garon Vice President, Finance and Administration and Chief Financial Officer Isao Nojima Vice President, Memory Design and Product Engineering Yaw Wen Hu Vice President, Technology Development and Wafer Manufacturing David Sweetman Vice President, Quality and Customer Support Joel J. Camarda Vice President, Operations Derek Best Vice President, Sales and Marketing Mike Briner Vice President, Design Engineering

Products and Processes

Page Mode Flash Memories — 512K Page Mode Flash Memory — 2.7V-, 3V-, and 5V-only 1M Page Mode Flash Memory — 2.7V-, 3V-, and 5V-only 2M Page Mode Flash Memory — 2.7V-, 3V-, and 5V-only

2-435 SST North American Company Profiles

Page Erase, Byte Program Flash Memories 4M SuperFlash Flash Memory — 2.7V-, 3V-, and 5V-only 4M PCMCIA Interface Flash Memory — 3V- and 5V-only 1M Many-Times-Programmable (MTP) Flash — 5.0V or 2.7V (2.7-3.6V)

The company’s products are designed and manufactured using the company proprietary SuperFlash™ CMOS technology.

Semiconductor Fabrication Facilities

SST is a fabless company, therefore, it uses independent foundry companies for the manufacturing of its devices. The company’s primary foundry partners are Sanyo and Winbond, but SST also has foundry and licensing agreements with TSMC and Seiko-Epson. Winbond’s foundry agreement expires in 2008.

Key Agreements

• In October of 1997, SST and Analog Devices, Inc. (ADI) announced a licensing agreement to use SST’s SuperFlash™ technology in a variety of ADI products.

• In July of 1997, SST and Information Storage Devices (ISD), Inc. announced a licensing agreement to use SST’s SuperFlash™ technology in ISD’s new long duration record and playback voice circuits.

• In March of 1997, SST and Taiwan Semiconductor Manufacturing Corporation (TSMC) announced a licensing agreement to pursue embedded flash applications. The agreement covers 0.35 and 0.5 micron processes.

• In March of 1997, SST and Sanyo Electric Co. Ltd., announced plans to jointly develop 0.35 micron SuperFlash™ process in Sanyo’s first 8” wafer fab in Niigata, Japan. First production shipments are expected in the second half of 1998. This foundry agreement provides wafer production capacity to SST through 2009.

• In February of 1997, SST and Seiko-Epson announced a licensing and supply agreement with Seiko-Epson Corp. for flash memory products.

• In February 1997, SST signed an agreement with foundry partner TSMC for the production of its 2M products. As part of the agreement, SST licensed its SuperFlash™ technology to TSMC in exchange for manufactured wafers.

• In 1996, SST licensed its SuperFlash™ technology to Seiko-Epson and established a foundry agreement for production capacity.

• SST licensed Rockwell the right to use its technology to produce and market 0.8µm embedded modem chips. The company has similar agreements with ISD and Analog Devices.

2-436 North American Company Profiles Standard Microsystems

STANDARD MICROSYSTEMS (SMSC)

Standard Microsystems Corporation 80 Arkay Drive Hauppauge, New York 11788 Telephone: (516) 435-6000 Fax: (516) 273-5550 Web Site: www.smsc.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Toyo Microsystems Corporation (SMSC Subsidiary) • Tokyo, Japan Telephone: (81) (3) 5721-2271 • Fax: (81) (3) 5721-2270

Europe: Standard Microsystems GmbH • Munich, Germany Telephone: (49) (89) 92861170 • Fax: (49) (89) 92861190

Asia-Pacific: Standard Microsystems Corporation • Taipei, Taiwan Telephone: (886) (2) 578-7118 • Fax: (886) (2) 579-1737

Financial History ($M), Fiscal Year Ends February 28 (Includes former System Products Division, now discontinued).

1993 1994 1995 1996 1997 1998 * Corporate Sales 251 323 379 342 354 155 Net Income 16 20 24 12 (21) (19)

Semiconductor Sales 25 57 117 139 179 —

Employees — — — — 430 400

*Reflects System Products Division as a discontinued operation.

Ownership: Publicly held. NASDAQ: SMSC.

2-437 Standard Microsystems North American Company Profiles

Company Overview and Strategy

Standard Microsystems Corporation is a worldwide supplier of MOS/VLSI integrated circuits for the personal computer industry. SMSC has a leading position in input/output (I/O) circuits for PCs with over 80 million units shipped and, additionally, supplies circuits for local area networks and embedded control systems. The company also operates a wafer foundry that specializes in MicroElectroMechanical Systems (MEMS) devices. SMSC is a leading supplier of MEMS, with more than 20 million devices delivered to date.

Standard Microsystems is based in Hauppauge, New York and maintains offices worldwide, including locations in North America, Asia, Europe, and Japan. SMSC operates engineering design centers in San Jose, CA; Westborough, MA; Hauppauge, NY; and Austin TX.

Since its establishment in 1971, Standard Microsystems Corporation has had a long history of product and technology innovation. Some industry firsts include the UART, digital data separator, floppy disk controller with on-board digital data separator, CRT controller, and single-chip local area network (LAN) solutions.

In the early seventies, SMSC developed a patented semiconductor manufacturing technology, COPLAMOS®, that provided a better way to isolate active devices on a silicon substrate. This process was essential to the development of advanced metal-oxide-silicon (MOS) integrated circuits. Through the years, the company has strengthened its patent portfolio with additional patents in semiconductor, communications and computer technologies.

SMSC has leveraged its patented technology by incorporating it into the company’s own products and by licensing it to over two dozen companies, including other semiconductor manufacturers, such as Texas Instruments Incorporated, Intel Corporation, NEC Corporation, IBM Corporation, Hitachi, Ltd., and AT&T Corporation.

Management

Paul Richman Chairman and Chief Executive Officer Eric M. Nowling Chief Financial Officer Arthur Sidorsky President George W. Houseweart Senior Vice President, Law and Intellectual Property John E. Burgess Vice President, Sales Douglas L. Finke Vice President and GM, Wafer Foundry Business Unit Lawrence H. Goldstein Vice President, Engineering R. Hollingsworth Vice President, Marketing Peter Ju Vice President, Personal Computer Systems Logic Business Unit Di Ma Vice President, Operations

2-438 North American Company Profiles Standard Microsystems

Products and Processes

SMSC's IC product and service offerings include the following.

• Personal computer I/O devices that perform many of the basic input/output functions required in every PC, including floppy disk control, IDE hard disk interface, parallel port control, and serial port control. Included is a family of Super and Ultra I/O devices that integrate all of the above functions on a single IC. The Super and Ultra I/O family includes other new features, such as power management and Fast IR communications.

• Highly integrated Fast Ethernet and single-chip Ethernet products such as an IC that incorporates an encoder/decoder, 10Base-T transceiver, AT bus interface, and memory management unit (MMU) on a single chip.

• ARCNET LAN devices for use in PCs and in industrial networking environments.

• Foundry services for customers desiring wafer fabrication capacity for 1.6µm geometries and above or for specialized semiconductor processing requirements that require unique thin-film expertise. In early 1997, SMSC announced plans to fully convert its fab to a foundry for the production of micro-electro-mechanical systems (MEMS), which are tiny systems such as sensors, motors, and valves used in a variety of applications. SMSC has been producing MEMS for several years.

SMSC is certified as an ISO 9002 supplier.

Semiconductor Fabrication Facilities

SMSC utilizes a mix of internal and external wafer fabrication sources to manufacture its products. Its more mature products are produced at its fab in New York, while newer products, utilizing 0.6µm and 0.5µm and smaller technologies are produced by external wafer foundries in Europe and Asia

In 1995, SMSC made a $16 million investment in Lucent Technologies’ Madrid fab and a $20 million investment in Chartered Semiconductor to enhance its external wafer supply (see Key Agreements).

Standard Microsystems Corporation 35 Marcus Boulevard Hauppauge, New York 11788 Capacity (wafers/week): 2,500 Wafer size: 100mm Processes: MEMS, 2µm CMOS, 3µm CMOS and NMOS Products: Foundry services Feature sizes: 1.6µm-3.0µm (This fab is being fully converted to a dedicated MEMS foundry).

2-439 Standard Microsystems North American Company Profiles

Key Agreements

• As of October 7, 1997, SMSC sold 80.1 percent of their former Systems Products Division to Accton Technology Corporation. SMSC’s continuing operations will now almost entirely consist of its Component Products Division.

• SMSC and Intel agreed to work together to integrate new semiconductor I/O chips into selected Intel PC motherboard designs through the end of 1997. SMSC will provide Intel with the I/O devices, which have been specifically designed to work with Intel’s newer microprocessors and core logic chipsets. Intel holds a 10 percent equity interest in SMSC.

• In 1995, SMSC made a $20 million investment in Singapore-based foundry Chartered Semiconductor Manufacturing (CSM) in return for guaranteed capacity from CSM's new 200mm wafer fab that came on-line in 2H95.

• SMSC struck a foundry deal with Lucent Technologies in 1994 under which SMSC agreed to boost the capacity of Lucent's fab facility in Madrid, Spain, in return for a guaranteed portion of the fab output over a five- year period. The new equipment has the capability to produce devices with 0.9µm to 0.45µm feature sizes. SMSC received its first wafers in 1996.

2-440 North American Company Profiles Stanford Telecommunications

STANFORD TELECOMMUNICATIONS, INC. (STI)

Stanford Telecommunications, Inc. (STI) 1221 Crossman Ave. Sunnyvale, CA 94089 Telephone: (408) 745-0818 Fax: (408) 745-7756 Web Site: www.stelhq.com and www.stel.com

Financial History ($), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Revenues 92,821 98,055 114,384 145,100 167,002 153,260 R&D Expenditures — — 7,723 8,429 11,868 13,647 Net income 1,159 3,536 131 6,173 8,011 5,216 Property/Capital Equipment Expenses — — 6,210 4,482 5,501 —

Employees — — — — 967 1,000

Ownership: Publicly held. NASDAQ: STII.

Revenues for the Company's contract manufacturing business amounted to approximately 20 percent of total revenues for fiscal 1996 and 1997, an increase from approximately 10 percent of revenues for fiscal 1995.

Company Overview and Strategy

Founded in 1973, Stanford Telecom (STI) designs, assembles, and markets advanced digital communications products and systems to establish or enhance communications via satellites, terrestrial wireless and cable. STI also provides communication systems networking solutions and Global Positioning System (GPS) navigation products. STI’s expertise encompasses all the technologies required for these systems, including radio frequency (RF), digital, Application Specific Integrated Circuits (ASIC), software, and system design. STI maintains a low cost, high volume commercial assembly capability and offers cost effective engineering services.

STI’s principal base business areas and products include:

• Advanced Communications for Government Agencies; • Transportable Milstar Terminal; • Tri-band Terminals; • Communication Satellite Performance Monitoring; • Air Traffic Control Systems Modernization; • Satellite Based Air Traffic Control System; • Commercial Telecommunications Chip and Board Level Products; • Commercial Electronic Contract Manufacturing.

2-441 Stanford Telecommunications North American Company Profiles

After reviewing STI overall, this profile will focus on STI’s Commercial Telecommunications Chip and Board Level Products business below in the Products and Processes section.

STI has over 60 patents granted or applied for in communications technologies such as Code Division Multiple Access (CDMA) and Orthogonal CDMA (OCDMA), Asynchronous Transfer Mode (ATM) network management, Time Division Multiple Access (TDMA), high speed adaptive equalizers, and error correction decoders, as well as ASIC semiconductor chips to implement these technologies.

STI initiated efforts in 1994 to expand its business by exploiting its technology base and intellectual property in pursuit of high-growth potential commercial products. STI anticipated those market opportunities should begin to yield revenue and earnings for the company in the later part of fiscal year 1998. These markets include satellite personal communications, via STI’s key role in TRW’s $2.8 billion Odyssey satellite communication system. Odyssey is an intermediate circular orbit constellation for global personal mobile communication which uses STI’s patented OCDMA technology. STI expects this large program to begin during the first half of fiscal year 1998. STI also has a development role for a future satellite system to provide Ka-band worldwide high-speed data service.

STI is developing subscriber and head-end equipment to support worldwide demand for Local Multipoint Distribution System (LMDS) and Multichannel Multipoint Distribution System (MMDS). STI expects to participate in a significant number of field and market trials during fiscal year 1998.

As a result of 1994 strategic investments, STI has developed and is currently selling in high quantities, modulation and demodulation chip and board products to support two-way communications over cable networks for telephony and high-speed Internet access. STI feels the development investments have progressed well and it anticipates business volume to increase during the second half of fiscal year 1998.

Management

Dr. James J. Spilker, Jr. Founder, Chairman and Principal Scientist Dr. Val P. Peline President and Chief Executive Officer Gary S. Wolf Executive Vice President Jerome F. Klajbor Vice President and Chief Financial Officer George Hendry Vice President, Wireless Broadband Products Operation Ernest L. Dickens, Jr. Vice President, Satcom Ground Systems Operation Bronic C. Knarr Vice President, Manufacturing and Quality Assurance Hatch Graham Vice President, ASIC and Custom Products Division Chuck Frank Vice President, Telecom Component Products Group (a unit of ASIC and Custom Products Division) Leonard Schuchman Director, Comms. and Nav Systems Operation Dr. John E. Ohlson Director, Satellite Personal Comms. Operation Wayne Fuller Director of Network Management Products Bruce Currivan Systems Energy Manager, ASIC and Custom Products Division Brian Davis Energy Manager, Digital Frequency Synthesizers

2-442 North American Company Profiles Stanford Telecommunications

Products and Processes

STI’s Commercial Telecommunications Chip and Board Level Products business is composed largely of two Sunnyvale headquarters units, the ASIC & Custom Products Division and the Manufacturing and Quality Assurance Group. These units design, assemble and market a wide range of Application Specific Integrated Circuits (ASIC) and board level assemblies for a variety of commercial telecommunication applications. These products provide the digital signal processing required to transmit and receive information. The units offer products for PSK (Phase Shift Key) modulation and demodulation, digital down conversion, the reception and transmission of spread spectrum information, forward error correction, adaptive equalization and direct digital frequency synthesis.

Key market areas addressed by the Chip and Board Level Products units include cable/Internet communications, VSAT receiver assemblies, and a catalog of ASIC and digital communications-related board level products. The ASIC and Custom Products Division is organized into the Telecom Component Products Group and the Catalog Products Group.

STI was among initial vendors offering modulation and demodulation devices cable applications. Its cable/Internet products include the STEL-1109, a single-chip complete BPSK/QPSK (QAM/Bi-Phase Shift Key/Quadra-Phase Shift Key) modulator ASIC, (including DAC and Reed-Solomon encoder/scrambler), specifically designed for the transmission of data from the subscriber to the headend and the STEL-9257. The chip is compliant with all 802.14, MCNS and Davic standards and is fabricated in 0.35 micron, 3-V CMOS technology. A Burst Demodulator board level assembly is also offered, providing demodulation of burst QPSK signals in the upstream environment. The STEL-1108 PQFP-only predecessor introduced in February 1996 was an 80-pin single-chip using SMT packaging and 3.3V CMOS technology. An example of another ASIC is 22,000-gate adaptive equalizer.

STI’s VSAT digital demodulator receiver assemblies used for rural telephony, background music services and business data transmissions. The STEL-9236 product family and the recently introduced STEL-9258 Variable Bit Rate product can provide signal timing recovery, demodulation, down conversion, carrier tracking and forward error correction functions. Since product introduction, STI has received orders for approximately 17,000 VSAT receiver assemblies.

STI’s catalog of ASIC and board level products are designed for various digital communications functions including ASICs for spread spectrum wireless data links, a family of ASICs for forward error correction in communication links, and a series of numerically controlled oscillators and direct digital synthesizers for precise signal generation and control.

In fiscal 1993, STI launched its Commercial Electronic Contract Manufacturing business unit, the Manufacturing and Quality Assurance Group. In addition to producing its own products, the unit offers its contract manufacturing services to commercial customers, principally producers of electronics and medical products, on either an inventory consignment or turnkey basis. STI’s Sunnyvale, California manufacturing facilities received ISO-9001 certification during fiscal 1996. During fiscal 1997, approximately 16 percent of the unit’s activities were associated with STI’s own products.

2-443 Stanford Telecommunications North American Company Profiles

Semiconductor Fabrication Facilities

The production of STI’s ASICs are fabricated by several suppliers including Zilog, American Microsystems Inc., Lucent Technologies, and LSI. Some of the products are fabricated on a sole-source basis.

Key Agreements

• Zilog licensed STI’s DSSS baseband chip technology, but details of the agreement are unavailable.

• In July 1997, the Radiocommunications unit of Alcatel Alsthom’s (France) Alcatel Radio, Space and Defense Division, (a Telecom sector Division), agreed to jointly develop and market the Alcatel 9900 WW product family, a system which applies wideband technologies to radio access solutions, to operators of multi-service networks in densely-populated locations. The point-to-multipoint radio technology will be used in small and medium- sized enterprises networks and in mobile networks providing a more economical transmission means than point-to-point connections in densely-populated areas. The system incorporates a central station and up to several hundred terminal stations: these in turn are connected to one or more networks — usually a voice network and a broadband data network. In order to meet the ANSI standard in the U.S., as well as the ETSI standard for the rest of the world, development is being carried out in Alcatel facilities in both Europe and the U.S. Information on STI chip/technology content was unavailable.

• In November 1996, STI signed an OEM agreement to use Gensym Corporation’s (Cambridge; NASDAQ: GNSM), flagship G2 software and other Gensym products to develop and deploy NetCoach, STI’s network management product for heterogeneous Asynchronous Transfer Mode (ATM) networks. STI used G2 to build the NetCoach inference engine and expert management capabilities. The new agreement enables STI to integrate the intelligent fault and performance management capabilities of Gensym's new Fault Expert to address quality of service and large message traffic volumes issues inherent in ATM networks.

2-444 North American Company Profiles Suni Imaging Microsystems

SUNI IMAGING MICROSYSTEMS

Suni Imaging Microsystems, Inc. 185 E. Dana St. Mountain View, CA 94041 Telephone: (650) 237-1060 Fax: (650) 968-6721

Fabless IC Supplier

Ownership: Privately held.

Company Overview and Strategy

Suni Imaging Microsystems, founded in 1995, develops low cost digital imaging designs which utilize both CCD and CMOS technologies. The company has a proprietary CMOS-CCD process. Typical applications are for high speed CD-ROMs and DVD pickups.

Management

Mr. Paul Suni President and Chief Executive Officer

2-445 Supertex North American Company Profiles

SUPERTEX

Supertex, Inc. 1235 Bordeaux Drive Sunnyvale, California 94089 Telephone: (408) 744-0100 Fax: (408) 745-4800 Web Site: www.supertex.com

IC Manufacturer

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 24 26 32 43 49 53 Net Income 2 3 5 7 9 9 R&D Expenditures 4 4 4 6 5 6 Capital Expenditures 1 1 2 5 7 —

Employees 240 235 265 274 318 —

Ownership: Publicly held. NASDAQ: SUPX.

Company Overview and Strategy

Established in 1976, Supertex is a niche-oriented company that designs, develops, manufactures, and markets high voltage semiconductor products utilizing advanced DMOS and HVCMOS process technologies. Supertex merged CMOS and DMOS processes creating its proprietary HVCMOS® technology. The company originally conducted business as a foundry. However, starting in fiscal 1990, and through fiscal 1992, the company's foundry business was phased out as sales of proprietary products steadily increased.

Supertex's proprietary products are sold to electronic equipment manufacturers in the computer, telecommunications, instrumentation, defense, medical, and consumer products industries. More specifically, Supertex's products are targeted at applications in ultrasound imaging and medical electronics, flat panel displays, LCD backlighting, non-impact printers and plotters, telecommunications, and high-reliability military and commercial aerospace systems.

2-446 North American Company Profiles Supertex

Management

Henry C. Pao, Ph.D. President and Chief Executive Officer Richard E. Siegel Executive Vice President Benedict C.K. Choy Senior Vice President, Technology Development and IC Products Bill Numann Vice President, DMOS Products Dennis Kramer Vice President, Materials

Products and Processes

Supertex has developed advanced technologies using CMOS and DMOS (Double-diffused MOS) processes. It pioneered the merging of CMOS and DMOS processes into its proprietary HVCMOS® (high-voltage CMOS) technology. This process allows for the combination of the high speed and low power logic circuit of CMOS and the high voltage output drive of DMOS on the same chip, thus creating the high voltage IC, or HVIC. Supertex intends to maintain a leadership position in the HVIC segment of the .

• The DMOS product line includes depletion-mode and low-threshold enhancement-mode transistors and arrays.

• There are three distinct categories of HVIC products available, digital products, analog products, and BiCMOS mixed-signal products.

• The digital product family includes driver/interface ICs for flat panel displays and non-impact printers and plotters.

• The analog product family includes high voltage analog switches and multiplexers, which are used in the medical ultrasound imaging industry.

• The BiCMOS product family consists of DC/DC converters and power supply and backlighting inverter ICs.

2-447 Supertex North American Company Profiles

Semiconductor Fabrication Facilities

Supertex, Inc. 1235 Bordeaux Drive Sunnyvale, California 94088-3607 Cleanroom size: 13,000 square feet Capacity (wafers/week): 1,700 Wafer size: 100mm Processes: CMOS, DMOS, HVCMOS, BiCMOS Products: High-voltage ICs, discretes Feature size: 1.0µm and 3.0µm

Key Agreements

• Supertex made an agreement with Texas Instruments in 1991 that provided TI the rights to use Supertex's HVCMOS process technologies in return for license fees and royalties, as well as access to TI's foundry and assembly services.

• Supertex has received funding from the U.S. Government's ARPA agency to research and develop dielectric- isolation (DI) technology. The goal of the project is to further raise the voltage and operating speed of ICs.

2-448 North American Company Profiles Symbios, Inc.

SYMBIOS, INC.

Symbios, Inc. 2001 Danfield Court Fort Collins, Colorado 80525-2998 Telephone: (970) 226-9550 Fax: (970) 226-9660 Web Site: www.symbios.com

IC Manufacturer

Regional Headquarters/Representative Locations

World Sales Headquarters: Symbios, Inc. Telephone: (408) 452-0303 • Fax: (408) 453-0309

Europe: Symbios, Inc. • Munich, Germany Telephone: (49) (89) 547470-0 • Fax: (49) (89) 547470-20

Asia-Pacific: Symbios, Inc. • Singapore Telephone: (65) 337-6323 • Fax: (65) 337-6313

Financial History ($M)

1992 1993 1994 1995 1996 1997 Sales 228 274 354 520 600 620

Employees — 1,950 2,010 2,200 2,300 2,200

Company Overview and Strategy

Symbios, Inc. was established in February 1995, when Hyundai completed the purchase of the NCR Microelectronic Products Division from AT&T Global Information Solutions Co., a wholly owned subsidiary of AT&T Corporation. Originally established in 1972, NCR Microelectronic Products Division was acquired as part of NCR Corporation in 1991 by AT&T Corporation (NCR Corporation was later named AT&T Global Information Solutions). Hyundai renamed the company Symbios Logic. Symbios being a derivative from the word symbiosis, meaning a mutually beneficial relationship.

2-449 Symbios, Inc. North American Company Profiles

Symbios, Inc., now a wholly owned, independently operated subsidiary of Hyundai Electronics America, manufactures semicustom ICs including cell-based ASICs and a family of application-specific standard products (ASSPs). Its cell library includes extensive analog functions for cell-based mixed-signal ASICs and complex standard function macrocells (cores) for embedded SCSI, Ethernet, disk drive electronics, and serial communications. Symbios is a leader in bus interface technology, offering high-performance application-specific SCSI (including an extensive family of PCI-SCSI I/O controllers), Ethernet cores, 1,394 devices and host adapters, USB host adapters, fibre channel devices, host adapters and RAID systems and controllers.

Several firsts claimed by the company include the first SCSI protocol chip, the first OEM RAID chipset, and the first Fibre Channel RAID controller board. The company believes it holds 33 percent of the worldwide SCSI chip market, and 10 percent of the worldwide market for disk and tape drive electronics. It is one of the three top suppliers of OEM RAID products.

Management

Charles F. Christ President and Chief Executive Officer Jeff Dumas Vice President, General Counsel, and Secretary Dan Ellsworth Vice President, Technology Tom Lagatta Vice President, Marketing and Business Development Al Lofthus Vice President, Strategic Initiatives Tim McCarthy Vice President, Symbios Semiconductor Division Darrell Jones Vice President, Manufacturing Lynn Turner Chief Financial Officer Tom Georgens Vice President, Storage Solutions Division

Products and Processes

Symbios is comprised of four business units: Client/Server, OEM RAID, MetaStor™, and ASIC and Peripheral Solutions. Listed below are the major products of each business group.

Client/Server Products • Client and server I/O products including SCSI devices. • Communications products including LAN communications devices. • SCSI host adapter boards.

OEM RAID • RAID storage systems and controller boards.

MetaStor™ • Scalable enterprise level server and network-attached storage systems for the end-user market.

2-450 North American Company Profiles Symbios, Inc.

ASIC and Peripheral Solutions • ASIC products include CMOS cell-based ASICs, both digital and mixed-signal, and complex core-related products as well as disk, tape, and CD-ROM drive electronic products, including data controllers, servo subsystems, and peripheral interfaces. In November 1996, Symbios unveiled its 0.35µm, five-layer-metal, one-million-gate, cell-based ASIC family. The company’s cell and core libraries support a wide range of ASIC applications, including set-top boxes, cellular phones, PCs, workstations, telecommunications, LAN and wireless communications, and electronic data processing. Submicron mixed-signal CMOS ASICs account for more than one-third of Symbios’ cell-based ASIC sales.

Semiconductor Fabrication Facilities

The plant in Fort Collins, Colorado will be phased out by the end of 1997.

Symbios Logic Inc. 1635 Aeroplaza Drive Colorado Springs, Colorado 80916 Telephone: (719) 596-5795 Cleanroom size: 24,500 square feet Capacity (wafers/week): 5,000 Wafer size: 200mm Process: CMOS Products: ASICs, ASSPs, logic ICs Feature sizes: 0.35µm-2.0µm

Symbios has a manufacturing and library development agreement with Hyundai.

Key Agreements

• In February 1998, Adaptec, Inc. announced that it had signed an agreement to acquire Symbios, in a cash transaction valued at $775 million, including assumed liabilities. Completion of the transaction is subject to regulatory approval under the Hart-Scott-Rodino Act.

• Symbios Inc. formed an alliance with Hyundai Electronics Industries (HEI) to develop a new deep sub-micron 0.35µm five-layer metal CMOS technology. The program was successfully completed in early 1997. The partnership will be extended to the 0.25µm level.

• Symbios also has a manufacturing agreement with HEI.

• In 1995, Symbios licensed Advanced RISC Machines Ltd.’s “Thumb” 32-bit RISC processor core for use in I/O channel controllers and other intelligent peripheral products.

2-451 Synergy Semiconductor North American Company Profiles

SYNERGY SEMICONDUCTOR

Synergy Semiconductor Corporation 3450 Central Expressway Santa Clara, California 95051 Telephone: (408) 980-9191 Fax: (408) 567-7878 Web Site: www.synergysemi.com

IC Manufacturer

Financial History ($M)

1993 1994 1995 1996 1997 Sales 14 19 26 30 38

Employees — 110 175 180 211

Ownership: Privately held.

Company Overview and Strategy

Founded in 1987, Synergy Semiconductor Corporation designs, develops, manufactures, and markets high- performance digital and mixed-signal integrated circuits using bipolar and BiCMOS processes. Synergy’s products include precision time-clock generators for computers and workstations, and communications circuits for local and wide area networks. Synergy’s products employ proprietary design and process technology, resulting in high-performance ICs. The company’s products are designed by an internal design team, and built in the company’s in-house wafer fabrication facility.

Management

Thomas D. Mino President and Chief Executive Officer T. Olin Nichols Chief Financial Officer George W. Brown Vice President, German Operations Tom Lauer Vice President, Sales Larry J. Pollock Vice President, Technology Luke Smith Vice President, Operations E. Marshall Wilder Vice President, Quality and Administration Thomas S. Wong Vice President, Engineering Mike Economy Director, Marketing, Clocking, Logic and RAM Products Dona Flamme Director, Marketing, Communications Products

2-452 North American Company Profiles Synergy Semiconductor

Products and Processes

Synergy supplies high-speed ICs to a range of systems vendors of public network equipment, such as multiplexers and digital access cross-connect systems (DACS); LAN and WAN private network equipment, such as adapter cards and hubs; high-performance workstations and superservers; and automatic test equipment (ATE).

Synergy’s products encompass three families: the ECLinPS and Super300K family of ultra-high-speed ECL logic products, the ClockWorks family of clock generation and distribution devices, and the SuperCOM family of transceivers, copper wire transceivers, and clock recovery devices. Synergy recently introduced a family of network and communication products for Fast Ethernet, FDDI, ATM, SONET, and SDH applications utilizing its proprietary bipolar ASSET™ (All Spacer Separated Element Transistor) technology.

Semiconductor Fabrication Facilities

Synergy Semiconductor Silicium Microelectronic Integration (SMI) 3250 Scott Boulevard (Formerly System Microelectronic Innovation) Santa Clara, California 95054 Wildbahn, Markendorf Telephone: (408) 980-9191 O-15203 Frankfurt (Oder), Germany Cleanroom size: 10,000 square feet Telephone: (49) 335-46-2200 Capacity (wafers/week): 500 Capacity (wafers/week): 2,400 (10,500 max.) Wafer size: 100mm Wafer size: 100mm Processes: Bipolar, BiCMOS Processes: Bipolar, BiCMOS Products: Transceivers, SRAMs, logic products, Products: Logic, memory, and linear ICs, ASICs clock control circuits, FIFOs, translators. Feature sizes: ³ 1.2µm Feature sizes: 1.2µm, 1.5µm (bipolar); (Joint venture between Synergy and the German 1.0µm (BiCMOS); government. Synergy holds a 49 percent stake). submicron in development.

Wafer probing and packaged product test capabilities are performed in-house.

Key Agreements

• In April 1995, Synergy entered into a technology license agreement with Linear Technology Corporation. Under the agreement, Synergy gave LTC the right to use its bipolar ASSET technology to develop non- competitive products.

• In March of 1993, Synergy entered into an agreement with the German government to form System Microelectronic Innovation (SMI). This is a joint venture which is currently 49 percent owned by Synergy and 51 percent owned by the German government. As part of this agreement, Synergy transferred its ASSET technology to SMI, enabling it to produce Synergy's family of ECL SRAMs, logic ICs, clock control circuits, translators, and semicustom products and market them throughout Europe.

2-453 Synergy Semiconductor North American Company Profiles

• Synergy entered into a comprehensive strategic alliance with Toshiba Corporation in November 1990. The alliance covers foundry, joint R&D and manufacturing, technology licensing, and an equity investment in Synergy by Toshiba. Under terms of the manufacturing agreement, Toshiba is providing Synergy with the use of a high-volume (150mm, submicron) IC fabrication line, which is running Synergy's high-performance ASSET and BiCMOS technologies. This fab allows Synergy to produce its current SRAM and logic products, as well as future products.

2-454 North American Company Profiles TelCom Semiconductor

TELCOM SEMICONDUCTOR

TelCom Semiconductor, Inc. 1300 Bella Avenue P.O. Box 7267 Mountain View, California 94039-7267 Telephone: (650) 968-9252 Fax: (650) 967-1590 Web Site: www.telcom-semi.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: TelCom Semiconductor GmbH • Martinsried, Germany Telephone: (49) (89) 89-56-500 • Fax: (49) (89) 89-56-5002

Asia-Pacific: TelCom Semiconductor H.K. Ltd. • Kowloon, Hong Kong Telephone: (852) 2350-7380 • Fax: (852) 2354-9957

Financial History ($M), Fiscal Year Ends December 31

1994 1995 1996 1997 Sales 25 39 38 55.4 Net Income 1 4 (1) (1.7) R&D Expenditures 1 3 4 5.4 Capital Expenditures 2 10 4 8

Employees 263 327 302 296

Ownership: Publicly held. NASDAQ: TLCM.

Company Overview and Strategy

TelCom Semiconductor, Inc. is a worldwide manufacturer of linear and mixed-signal products dedicated to solving problems over a broad spectrum of customer applications. TelCom’s product line includes data acquisition, power management, interface, and thermal sensing devices. The company is headquartered in Mountain View, California, where it owns and operates a dedicated wafer manufacturing facility, producing proprietary products. Testing is performed at their Hong Kong facility, and products are sold through a network of worldwide sales offices, sales representatives, and distributors.

2-455 TelCom Semiconductor North American Company Profiles

Management

Philip M. Drayer President and Chief Executive Officer Edward D. Mitchell Vice President, Engineering and Chief Technical Officer R. Michael O'Malley Vice President, Chief Operating Officer, and Chief Financial Officer Naresh Barta Vice President, Strategic Marketing Dan Riordan Vice President, Business Development and Worldwide Sales Don Herman Vice President, Human Resources Allan I. Resnick Vice President, Assembly and Test Operations

Products and Processes

TelCom's main products are divided into three areas of focus.

• Mixed-signal ICs: includes A/D converters, V/F and F/V converters, and voltage references. • Power management ICs: includes MOSFET power drivers, PWM controllers, DC/DC converters, switching regulators, CMOS voltage detectors, microprocessor supervisor circuits, and charge pumps. • Smart sensors: includes solid-state thermal management and fan controllers.

Semiconductor Fabrication Facilities

TelCom Semiconductor, Inc. 1300 Terra Bella Avenue Mountain View, California 94043 Cleanroom size: 9,000 square feet Capacity (wafers/week): 1,000 Wafer size: 125mm Processes: Silicon- and metal-gate CMOS, BiCMOS, CMOS/DMOS, DMOS, bipolar. Feature size: 3.0µm

2-456 North American Company Profiles Teltone Corporation

TELTONE CORPORATION

Teltone Corporation 22121 - 20th Avenue SE Bothell, Washington 98021 Telephone: (425) 487-1515 Fax: (425) 487-2288 Web Site: www.teltone.com Email: info@teltone

Fabless IC Supplier

Financial History (000s), Fiscal Year Ends June 30

1993 1994 1995 1996 1997 1998 Sales 9,679 7,600 9,176 9,471 10,053 9,049 Engineering and Development Expenses — — — 819 962 1,147 Net (Loss) Income 932 907 405 377 (42) (155) Capital Equipment Expenses — — — 62 130 —

Employees — — — — 62 58

Ownership: Publicly held. OTC BB: TTNC.

Fiscal 1997’s sales increase was driven in part by an 11 percent increase in the sale of integrated circuits, following 1996’s decline over 1995. However, margins on ICs declined for a second consecutive year.

Sales in the first half of fiscal 1998 ending 31 December, 1997, were $4.362 million, down 13 percent from the same period in fiscal 1996. The decrease was attributed partly to a 27 percent decrease in IC sales during the period compared to fiscal 1997.

Teltone noted that the most significant change in 1H fiscal 1998 versus 1H fiscal 1997 was an increase in engineering and development expenses by 87 percent to $748,000 for the period, reflecting increased development and design work on the OfficeLink 2000 product and on newer lower cost IC chip families planned to be introduced later in fiscal 1998.

Company Overview and Strategy

Founded in July 1968, Teltone sells specialized telecommunications software, equipment and components. Teltone's customers include business end-users, original equipment manufacturers (OEMs), telephone call centers, and utilities.

2-457 Teltone Corporation North American Company Profiles

Teltone's component business is fabless, but has been able to compete successfully in the marketplace because of the value added by the company's proprietary products, customer service and applications support for its component products. The most significant competition for Teltone's components comes from integrated circuit manufacturers, some of them Teltone's suppliers, that also sell to Teltone's customer base.

Teltone’s IC products are distributed by nine U.S. companies (with 83 total sales offices), two companies in Canada and 44 companies in more than 38 other countries.

Management

Richard W. Soshea President and Chief Executive Officer Richard G. Johnson Vice President, Operations Ray Ma Vice President, Engineering Jeffrey B. deCillia Vice President, Finance and Chief Financial Officer Mark Blazek Vice President, Sales and Marketing Peter C. Spratt Secretary and General Counsel Don Andresen Manager, Quality Jay Zeman Manager, OEM Market Group

Products and Processes

Teltone’s IC product lines include MF Trunk Signaling ICs (for PBX systems, test equipment, trunk adapters, paging terminals, and traffic recorders); Call Progress Tone Receivers and Transmitters (for automatic dialers, dialing modems, traffic measurement equipment, callback security systems, test equipment, service evaluation and billing systems, central office, wireless, and PBX switches, test equipment); DTMF Receivers (for applications in telephone switching, PBX and intercom systems, answering and recording devices, radio communication switching, remote control, monitoring and alarm devices, and data entry systems); DTMF Transceivers w/Call Progress Detection Industry-standard DTMF transceivers plus call progress (Motorola and Intel microprocessor-compatible); DC Signaling Components (line sensing relays and other products for central office products, PBX and key systems, and rotary dial monitoring devices). Most of Teltone’s IC products are available in regionalized versions as necessitated by telephony regulatory requirements (i.e., CCITT R2 MF compliant version for single channel multifrequency trunk receivers outside of North America).

Teltone’s custom microcircuitry components are normally purchased from single sources but, because the company owns the tooling for these components, other electronics manufacturers could take over if an existing vendor ceased production. Teltone believes its expertise and value-adding processes involving digital signal processing make its ICs more competitive on a price-performance basis.

Teltone achieved ISO 9001 certification February 4, 1997.

2-458 North American Company Profiles Teltone Corporation

Key Agreements

• In April 1996, Teltone announced that after expiring in March 1996, it had revitalized a 13 year strategic relationship with Silicon Systems Inc. (SSi) of Tustin, CA. The agreement consisted of three parts:

– A long-term supply agreement whereby SSi agreed to continue to act as foundry for a number of DTMF (M- 957) and Call Progress lines (M-981, M-982, M-984) that Teltone sells to telecom OEMs; – A second-sourcing agreement whereby SSi agrees to second-source Teltone Call Progress products (M- 980); and – A joint development agreement by which SSi and Teltone will develop new products for telecom OEMs that Teltone will define and market and SSi will design and manufacture.

2-459 Texas Instruments North American Company Profiles

TEXAS INSTRUMENTS (TI)

Texas Instruments Incorporated Semiconductor Group P.O. Box 655303 Dallas, Texas 75265 Telephone: (214) 995-2011 Fax: (214) 997-5250 Web Site: www.ti.com/sc

IC Manufacturer Founded: 1930

(See Top Ten)

2-460 North American Company Profiles TLSI

TLSI

TLSI, Incorporated 815 Broadhollow Road Farmingdale, New York 11735 Telephone: (516) 755-7005 Fax: (516) 755-7626 Web Site: www.tlsi.com

Fabless IC Supplier

Company Overview and Strategy

TLSI designs and markets analog, digital, and mixed-signal ICs for the automotive, telecommunications, industrial process control, security, home appliance, and military/aerospace markets. TLSI was formed as a division of Telephonics Corporation in 1977, to provide Telephonics with ICs needed for its military and commercial airline communication systems. Today, TLSI remains a wholly owned subsidiary of Telephonics and provides ICs to the general marketplace.

Management

Mort Pullman President R. Hartig Vice President, Business Management Jerry Powder Director, Sales and Marketing

Products and Processes

TLSI offers a wide range of solutions in the area of full custom MOS, cell-based, and gate array configurations. Broken down into categories, these alternatives include the following.

Full Custom: Includes transistor-level designs. Standard Cell Library: Characterized functions with auto place-and-route using standard height and variable width cells. Standard Cell Library with Custom Interconnect: Characterized functions with Calma operator place-and-route using standard height and variable width cells. Minimum Area Cell Libraries with Custom Interconnect: Custom interconnect with minimum sized cells to reduce die area and development time/cost for higher- volume requirements where a full custom configuration may not be required. Analog and Digital Functions Combined on the Same Chip: Maximizes system integration and minimizes printed circuit board area.

When TLSI designs its chips, it selects any of the following process technologies that best fits the customer’s specific application: 0.6µm to 3µm CMOS, EEPROM, 1.5µm BiCMOS, or bipolar.

2-461 TranSwitch North American Company Profiles

TRANSWITCH

TranSwitch Corporation 3 Enterprise Drive Shelton, Connecticut 06484 Telephone: (203) 929-8810 Fax: (203) 926-9453 Web Site: www.transwitch.com

Fabless IC Supplier

Financial History ($000s), Fiscal Year Ends December 31

1995 1996 1997 Sales 17.5 19.7 27.1 Net Income (1.8) (10.1) (1.9) R&D Expenditures 1 2 3 Capital Expenditures 7 9 9

Employees: — — 115

Ownership: Publicly held. NASDAQ: TXCC.

Company Overview and Strategy

TranSwitch Corporation designs, develops, and markets highly integrated digital and mixed-signal semiconductor products for broadband telecommunications and data communications applications.

The company’s product line includes very large scale integration (VLSI) devices that serve three markets: worldwide public telephone networks, Internet, and wide area networks (WAN).

Management

Santanu Das, Ph.D. President and Chief Executive Officer Michael F. Stauff Senior Vice President, Chief Financial Officer Moshe Mazin Vice President, Engineering Watson Coverdale Vice President, Sales Mike McCoy Vice President, Controller Frank Middleton Vice President, Strategic Sales Robert G. Pico Vice President, Business Development Kandaswamy Thangamuthu Vice President, Operations Daniel C. Upp Vice President, Technology Development Jitender K. Vij Vice President, Systems Engineering William Bartholomay Vice President, Product Definition

2-462 North American Company Profiles TranSwitch

Products and Processes

TranSwitch’s IC devices include asynchronous (PDH), synchronous (SONET/SDH), and asynchronous transfer mode (ATM) communications circuits. The asynchronous products include line interface, multiplexer/demultiplexer, framer, and data communications devices. The synchronous product line includes line termination, overhead processor, mapper, and multiplexer/demultiplexer devices. The ATM products include physical layer, ATM layer, and ATM adaptation layer devices that implement a variety of public and private switching and multiplexing products.

2-463 North American Company Profiles

TRIDENT MICROSYSTEMS

Trident Microsystems, Inc. 189 North Bernardo Avenue Mountain View, California 94043-5203 Telephone: (650) 691-9211 Fax: (650) 691-9260 Web Site: www.tridentmicro.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Asia-Pacific: Trident Microsystems (Far East) Ltd. • Kowloon, Hong Kong Telephone: (852) 2756-9666

Trident Microsystems (Far East) Ltd. • Taipei, Taiwan Telephone: (886) 2550-6616

Financial History ($M), Fiscal Year Ends June 30

1993 1994 1995 1996 1997 Sales 78 69 107 168 178 Net Income 10 1 8 17 15 R&D Expenditures 7 10 13 11 12 Foundry Fab Investment — — — 14 26

Employees 130 150 268 308 385

Ownership: Publicly held. NASDAQ: TRID.

Company Overview and Strategy

Founded in 1987, Trident Microsystems designs, develops, and markets very large scale integrated circuit graphical user interface (GUI) accelerators, graphics controllers, and multimedia video processors targeting the mainstream PC desktop, notebook, and multimedia markets.

Trident’s initial product offerings began with SVGA controllers in 1989 and moved toward mixed-signal controllers in 1993. The year 1994 marked a year of transition for Trident that included its entrance into the GUI accelerator market. Although its revenues declined in 1994, the transition to the GUI accelerator market proved successful in the following years. Another shift in Trident’s market strategy occurred during this time period. In 1994, 95 percent of Trident’s sales came from non-OEMs. In a strategic move, Trident began targeting the OEM market and currently derives about 30 percent of its sales from OEMs such as IBM, Hewlett-Packard, NEC, and Philips.

2-464 North American Company Profiles Trident Microsystems

Trident’s product line includes a complete line of 32-bit and 64-bit integrated circuits, video accelerators, and multimedia video processing chips that provide cost-effective easy-to-use graphics solutions based on advanced technology. Trident was among the first to deliver chips for the new Unified Memory Architecture (UMA), which reduces system memory costs by efficiently using existing PC memory for the graphics frame buffer. Additionally, several of Trident’s GUI and video acceleration products include the company’s proprietary TrueVideo algorithm, the first technology to deliver horizontal/vertical interpolation and diagonal edge recovery for clearer, sharper full- motion images.

Future product development will focus on products in the high-end of the graphics market as well as the PC notebook market. In early 1997, Trident began sampling its first 3D notebook device.

Management

Frank C. Lin Chairman, President, and Chief Executive Officer Jung-Herng Chang Senior Vice President, Graphics Engineering Peter Jen Senior Vice President, Asia Operations W. Steven Rowe Vice President, Human Resources, Finance and Accounting, and Acting Chief Financial Officer Amir Mashkoori Senior Vice President, Operations and Business Development Gerry Liu Senior Vice President, Product Marketing Richard Silverman Vice President, Advanced Graphics Product Planning Richard F. Haas Director, Marketing Communications

Products and Processes

Trident designs its products using 1.0µm, 0.8µm, and 0.6µm CMOS process technologies. The company's product line includes: 3D and MPEG ICs, advanced mixed-signal GUI accelerators, high-performance SVGA controllers, multimedia video processing devices, and LCD/CRT controllers.

In 1Q97, Trident introduced two 3D graphics controllers dubbed the 3DImage™ 975™ and 3DImage™ 975DVD™. Both devices are designed for 3D applications and feature 3D and 2D graphics acceleration, TV output technology, VGA imaging, and high-quality video. The 3DImage 975DVD also provides DVD playback functions for use with MMX-enabled Pentium 166MHz and higher MPUs.

2-465 Trident Microsystems North American Company Profiles

Semiconductor Fabrication Facilities

Trident uses a fabless manufacturing strategy where it meets its manufacturing needs by using foundries. Prior to 1996, Trident received the majority of its wafer capacity from TSMC. In 1996, in an effort to decrease its dependence upon one foundry supplier, Trident secured additional capacity through foundry agreements with UMC and Winbond in Taiwan, and Samsung in Korea. In its agreement with UMC, Trident has purchased an equity interest in UICC, a UMC joint venture fab facility located in Taiwan. The facility was expected to begin production in mid-1997.

Key Agreements

• In May 1996, Trident and Samsung announced a long-term partnership. Samsung will provide manufacturing capacity to Trident in exchange for mixed-signal ASIC designs. In late 1996, the two companies announced the joint development of a next-generation notebook multimedia accelerator that will feature Samsung’s embedded SDRAM.

• In August 1995, Trident entered into a joint venture agreement with UMC. Under the agreement, Trident agreed to invest $60 million for a 10 percent equity interest in a new 200mm fab facility, called United Integrated Circuits Corporation (UICC). The 200mm wafer fab began production in mid-1997.

• In June 1995, Trident expanded its relationship with TSMC by signing a five-year foundry agreement. Under the agreement, Trident will purchase a certain number of wafers each year from TSMC through 1999.

2-466 North American Company Profiles TriQuint Semiconductor

TRIQUINT SEMICONDUCTOR

TriQuint Semiconductor, Inc. 2300 NE Brookwood Parkway Hillsboro, Oregon 97124 Telephone: (503) 615-9000 Fax: (503) 615-8900 Web Site: www.triquint.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: TriQuint GmbH • Eiselfing, Germany Telephone: (49) (80) 719-3504 • Fax: (49) (80) 719-3505

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 29 33 30 46 60 71 Net Income 1 1 (10) 3 6 7 R&D Expenditures 7 9 10 9 11 12 Capital Expenditures 1 1 1 1 4 6 (est.)

Employees 190 195 222 285 361 694

Company Overview and Strategy

TriQuint Semiconductor (NASDAQ: TQNT) designs, develops, manufactures, and markets a broad range of high- performance analog and mixed-signal gallium-arsenide (GaAs) ICs for the wireless communications, telecommunications, and computing markets. TriQuint's mission is to commercialize GaAs ICs for communications and computing. The company’s continued focus is on achieving new designs and introducing new products in all three market areas.

2-467 TriQuint Semiconductor North American Company Profiles

TriQuint's origin can be traced back to 1978, when researchers at Tektronix Laboratories began investigating GaAs IC technology. Established as a majority-owned subsidiary in 1985, TriQuint Semiconductor was charged with developing application-specific integrated circuits (ASICs) for high-performance microwave, linear, and digital systems.

TriQuint became independent from Tektronix in 1991 when it completed a successful merger with GigaBit Logic and Gazelle Microcircuits to form a new privately-held TriQuint. In 1993, TriQuint became a public company.

Management

Steven J. Sharp President and Chief Executive Officer Edward C.V. Winn Executive Vice President, Finance and Administration, Chief Financial Officer, and Secretary Bruce R. Fournier Vice President, Sales Donald Mohn Vice President and General Manager, Telecommunications and Computing David Pye Vice President, Manufacturing Operations Ron Ruebusch Vice President and General Manager, Wireless Communications

Products and Processes

TriQuint Semiconductor's standard and customer-specific products are structured into three end-market groups: wireless communications, telecommunications, and computing.

Wireless Communications — Standard products for this market are used as building blocks for multipurpose applications in radio frequency (RF) and microwave systems. These systems include personal communications networks, cellular telephones, satellite communications and navigation equipment, and wireless computer networks. In 1996, TriQuint continued to add devices to its relatively new family of high-power RF amplifier ICs for the voice and data wireless communications market.

Telecommunications — Most the company's telecommunications ICs are customer-specific, but its does offer some standard products, such as SONET and SDH multiplexers/demultiplexers and transceivers, ATM framers, and high-performance crosspoint switches.

Computing — Standard products for this market are concentrated on solving system timing and data communications performance bottlenecks in high-performance PCs, workstations, servers, and storage systems.

The company utilizes its proprietary GaAs technology for the production of its ICs. Its GaAs process features 0.5µm to 0.7µm geometries, 4.0µm metal pitch, and a cutoff frequency of up to 21GHz.

TriQuint’s services include GaAs IC design, wafer fabrication, test engineering, package engineering, assembly, and testing.

2-468 North American Company Profiles TriQuint Semiconductor

Semiconductor Fabrication Facilities

TriQuint Semiconductor, Inc. 2300 NE Brookwood Parkway Hillsboro, Oregon 97124 Cleanroom size: 16,000 square feet (Class 10) Capacity (wafers/week): 1,000 Wafer size: 100mm Process: GaAs Products: ASICs, standard components, foundry services Feature sizes: 0.5µm-0.7µm

In early 1997, TriQuint moved into its new GaAs semiconductor manufacturing facility and office complex in Hillsboro, Oregon. The 165,000 square-foot site houses all of the company’s manufacturing, engineering, marketing, and administrative functions that were located in Beaverton, Oregon, with 45,000 square-feet used for the manufacturing facility.

Key Agreements

• In January 1998, TriQuint purchased Texas Instruments MMIC operations from Raytheon. This operation specializes in high performance GaAs technologies such as HBTs, PHEMTs, and HFETs for applications above 5GHz.

• In April 1996, TriQuint and Philips announced a wafer sourcing agreement. Under the pact, Philips will develop GaAs ICs for TriQuint to produce according to Philips’ specifications. Assembly and test will be done by Philips at a facility in Limeil, France.

• In August 1993, TriQuint and AT&T Microelectronics (now Lucent Technologies) announced a set of agreements involving the development, manufacture, and marketing of GaAs ICs for high-performance wireless and telecommunications systems. As part of the deal, Lucent discontinued its production of GaAs wafers and is instead relying on TriQuint for the manufacture of its GaAs wafers. Lucent also became a minority stockholder in TriQuint. Lucent increased its stake in TriQuint to 8.2 percent in early 1995.

2-469 TRW North American Company Profiles

TRW – GAAS TELECOM PRODUCTS

TRW – GaAs Telecom Products Division One Space Park Redondo Beach, CA 90278 Telephone: (310) 812-5749 Fax: (310) 812-7011 Web Site: www.trw.com/mmic

IC Manufacturer Founded: 1991

Financial History ($M)

1994 1995 1996 1997 Corporate Sales 8,491 9,568 9,857 10,800 Net Income 333 446 480 499

Employees 64,175 66,518 65,218 71,480

Ownership Publicly held. TSE () and TSM (New York Stock Exchange).

Company Overview and Strategy

TRW’s GaAs Telecom Products (GTP) Division is a leading supplier of commercial GaAs products, focused on high volume telecommunications market segments such as Point-to-Point, Point-to-Multipoint, Digital Radio, and Ka Band VSAT. This division, established in the early 90’s, has been chartered to bring GaAs products from Internal government-based applications to the rapidly-expanding worldwide commercial telecommuncations market.

TRW’s mother company, founded in 1901, is based in Cleveland, Ohio. The corporation is a manufacturing and service company focused on supplying advanced technology products and services to the automotive, space, defense and information systems markets. The GaAs Telecom Products Division is part of TRW’s Space & Electronics Group, based in Redondo Beach.

TRW’s GaAs products are sold through distributors throughout the U.S. and Canada. Asia-Pacific sales distribution is planned for fourth quarter 1998.

2-470 North American Company Profiles TRW

Management

GaAs Telecom Products:

Robert Van Buskirk Executive Director Rober Pinato Marketing and Sales Manager Tom Joseph, Ph.D. Foundry and Production Services Manager Michael Justis Finance and Business Manager Jim Nadeau MMW Module Products Manager Manny Quijije MMIC Product Development Manager Brad Evans Director of Marketing

Products and Processes

TRW’s MMICs and modules product strategy is focused on the design, development and manufacture of GaAs products for standard and custom commercial telecommunication applications. As such, these products typically are inserted into a broad array of cellular, PCS, microwave and millimeter wave wireless and high rate fiber optic wired electronics systems. Product details are as follows.

TRW’s family of GaAs MMIC products to cover frequencies from 18-77GHz. Products include low noise amplifiers, medium power amplifiers, and high power amplifiers. Future products include multipliers, VCOs and mixers in both HEMT and HBT technologies

The Module Product Family consists of MMIC-based modules and innovative packaging techniques that are cost- effective products in high-capacity wireless telecommunication systems. These modules create seamless designs between MMICs and modules to ensure reliability and compatibility. MilliWave, a subsidiary of TRW, is responsible for volume production of these products.

Foundry Product Services – Foundry services are offered for prototyping and volume manufacturing of HBT and HEMT technologies. The TRW facility has PHEMT capabilities using 0.2 micron and 0.15 micron processes for prototyping and production. GaAs HBT capabilities are also available using 2 micron technology for prototyping.

Indium Phosphide products are currently in development and are scheduled for introduction during the fourth quarter 1998. 1 micron HBT and 0.1 micron HEMT technologies are also in development.

Semiconductor Fabrication Facilities

TRW GTP has a fully functional three inch GaAs wafer fabrication facility on-site as well as access to other facilities as consumer demand warrants.

2-471 TRW North American Company Profiles

TRW - GTP One Space Park Redondo Beach, California Cleanroom size: 4,850 square feet - Class 10 Cleanroom size: 9,890 square feet - Class 1,000 Cleanroom size: 7,470 square feet - Class 10,000 Capacity (wafers/week): 360 Wafer size: 80mm Process: HBT, HEMT Products: GaAs / Foundry services Feature sizes: 2µm, 0.2µm, 0.15µm

Key Agreements

• In 1997, TRW and Multilink Technology Corporation formed an alliance to develop and manufacture on/off ramp electronics for high rate data and telcom fiber optic transmission systems. Products developed from this teaming arrangement include Clock-data recovery, Trans-impediance amplifiers, and laser drivers.

• In 1997, TRW acquired MilliWave Technologies Corporation, a manufacturer of multi-chip RF modules for high capacity wireless communication systems. MilliWave products include point-to-point and point-to-multipoint communication links to 77GHz for transmitters, receivers, and transceivers. This new subsidiary is now called TRW MilliWave Inc.

• In 1996, TRW established a strategic alliance with RF Micro Devices to develop and market cellular and PCS chipsets using TRW HBT technology. The purpose of the agreement is to provide chipsets with a large selection of CDMA MMICs at the lowest cost and highest performance of any available process. The devices are manufactured at RF Micro Devices new four inch facility which has a throughput capability of 25K wafers per year.

2-472 North American Company Profiles Tundra Semiconductor

TUNDRA SEMICONDUCTOR

Tundra Semiconductor Corporation 603 March Road Ontario, Canada K2K 2M5 Telephone: (613) 592-0714 Fax: (613) 592-1320 Web Site: www.tundra.com

Fabless IC Supplier

Employees: 84

Company Overview and Strategy

Located in Canada, Tundra Semiconductor is a privately-held company that designs, develops, and markets PCI and VME bus-bridging components for embedded datacommunications and telecommunications applications. Tundra was established originally as Newbridge Microsystems; a division of Newbridge Networks Corporation, a leader in local and wide area networking and communications equipment, but became an independent company in December 1995.

Tundra’s product strategy is to focus on the niche market of bus-bridging ICs, which control the flow of data between different bus architectures used in computer systems. Tundra develops these products in conjunction with leading microprocessor and digital signal processor companies. It uses a lead customer model for further product definition. The company also designs and markets a broad line of industry standard encryption components for data security in communications networks. To address the office equipment, consumer electronics, and automotive markets, Tundra offers a line of Intel-compatible 8-bit microperipheral (MPR) devices.

Management

Adam Chowenaniec President and Chief Executive Officer Jim Roche Executive Vice President and General Manager Michael Krause Vice President, Research and Development Norm Paquette Vice President, Finance Ed Hacker Vice President, Sales David Lisk Vice President, Operations Richard O’Connor Vice President, Marketing and Business Development

2-473 Tundra Semiconductor North American Company Profiles

Products and Processes

Tundra offers a family of embedded PCI bus bridges, the leading family of VMEbus bridges, DES-based encryption components, and standard 8-bit microperipheral ICs.

PCI Bus Bridges Qspan™ — PCI interface for Motorola embedded processors (e.g., 68K, PowerPC).

VMEbus Bridges Universe II™ — VME-to-PCI bus bridge. SCV64™ — High-performance VME64-to-local bus bridge. Trooper™ II — Slave only VMEbus-to-local bus bridge.

Data Security Produc ts Wide array of encryption chips based on the Data Encryption Standard (DES). These products are designed for a broad range of networking and communications systems such as cable modems, ATMs, fax machines, and satellite base solutions.

8000 Microperipheral Series Six industry standard 8-bit MPRs that support the Intel x86 microprocessor family.

Key Agreements

• Tundra has strategic technology partnerships with Motorola, Texas Instruments, and Cadence Design Systems.

2-474 North American Company Profiles Unitrode

UNITRODE

Unitrode Corporation 7 Continental Boulevard Merrimack, New Hampshire 03054-0399 Telephone: (603) 424-2410 Fax: (603) 424-3460 Web Site: www.unitrode.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Unitrode (U.K.) Limited • London, England Telephone: (44) (181) 3181431 • Fax: (44) (181) 3182548

Asia-Pacific: Unitrode Electronics Asia Ltd. • Kowloon, Hong Kong Telephone: (852) 2722-1101 • Fax: (852) 2369-7596

Financial History ($M), Fiscal Year Ends January 31*

1993 1994 1995 1996 1997 1998 Sales 50 65 87 116 134 178 Net Income 6 9 12 18 21 30 R&D Expenditures 4 6 9 15 18 17 Capital Expenditures — — 16 12 18 46

Employees 300 425 514 620 562 665

*Results excluding disposed operations.

Ownership: Publicly held. NASDAQ: UTR.

Company Overview and Strategy

Unitrode Corporation was founded in 1960 as a manufacturer of electronic components and subsystems. By 1994, the company had divested all its non-strategic businesses and focused on its linear/analog and mixed- signal IC business, which was established in 1981. The company's ICs are used in a variety of applications for power management and as interface devices. For the most part, the chips are used to control switching power supplies and small electronic motors, or as high-speed interface and communication circuits between various pieces of electronic equipment.

Unitrode's customers are primarily in the EDP/computer and telecommunications markets, but also in the industrial control and instrumentation, defense/aerospace, automotive, and consumer markets. The company plans to focus its new product development efforts on the communications and industrial markets.

2-475 Unitrode North American Company Profiles

In fiscal 1998, about 65 percent of the company's integrated circuit sales were to international customers.

Management

Robert L. Gable Chairman of the Board Robert J. Richardson President and Chief Executive Officer Cosmo S. Trapani Executive Vice President and Chief Financial Officer Allan R. Campbell Senior Vice President and General Counsel S. Kelley MacDonald Vice President, Corporate Communications Patrick Moquin Vice President, Human Resources Frederick J. Myers Vice President, International Sales

Products and Processes

Unitrode's product offering is comprised of analog ICs for power supply control, motor control, lighting, power driving, power quality, and power factoring, as well as for high-speed and high-power interface applications. Most of the products are based upon proprietary designs utilizing enhanced bipolar, BiCMOS, and BCDMOS semiconductor technologies and are considered application-specific standard products (ASSPs).

Semiconductor Fabrication Facilities

In mid-1997, the company expected to complete the first phase of construction of a new 150mm BiCMOS wafer facility. The facility is expected to begin production in fiscal year 1999.

Unitrode Corporation 7 Continental Boulevard Merrimack, New Hampshire 03054 Capacity (wafers/week): 2,000 Wafer size: 100mm, 150mm Processes: Bipolar, BiCMOS, BCDMOS Feature sizes: 1.0µm-5.0µm

2-476 North American Company Profiles Unitrode

Unitrode has agreements with four foundries to supply additional wafers, as required. In January 1995, the company signed an agreement with GMT Microelectronics Corporation (former Commodore Semiconductor fab in Norristown, Pennsylvania) for additional wafer capacity. Under the agreement, Unitrode made a $2 million equity investment in GMT, in return for up to 30 percent of GMT's capacity. In February 1996, the company made an additional $1.5 million investment in GMT which entitles the company to favorable pricing on certain products. During fiscal year 1998, Unitrode received about 50 percent of its output from outside foundries.

Key Agreements

• In March 1998, Unitrode announced that it had signed a definitive agreement to merge with Benchmarq Microelectronics, Inc., a $45 million, Dallas-based manufacturer of battery management ICs and certain non- volatile products. On April 17, 1998 - Unitrode and Benchmarq jointly announced that on April 15, 1998, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired. The merger remains subject to the approval of the shareholders of both companies and the satisfaction of other customary closing conditions.

• Unitrode entered into an alliance with Irvine Sensors. Under the agreement, Unitrode became a licensee and exclusive second-source for Irvine Sensors’ wireless infrared communication ICs.

• Unitrode entered into an agreement with GMT Microelectronics Corporation in early 1995 to supply wafers to Unitrode. As part of the agreement, Unitrode invested $2 million in GMT. The company made an additional investment of $1.5 million in GMT which entitles the company to favorable pricing on certain products.

2-477 Universal Semiconductor North American Company Profiles

UNIVERSAL SEMICONDUCTOR

Universal Semiconductor, Inc. 1925 Zanker Road San Jose, California 95112 Telephone: (408) 436-1906 Fax: (408) 436-1125 Web Site: www.unisemi.com

IC Manufacturer

Employees: 30

Ownership: Privately held.

Company Overview and Strategy

Universal Semiconductor was established in 1978 to serve as a CMOS foundry offering design and manufacturing of customers' custom/semicustom devices, gate arrays (digital and mixed-signal), dielectrically isolated (DI) high- voltage ICs, linear arrays, DMOS FETs, and thin-film RC/RCD networks.

Management

Vic Hejmadi President and Chief Executive Officer Tony Telesca Director, Marketing and Sales

Products and Processes

Universal Semiconductor uses CMOS processing for all devices and offers gate arrays with up to 2,400 gates, mixed-signal arrays (18V breakdown), and 300V and 500V dielectrically isolated high-voltage ICs, as well as radiation-hardened devices and bipolar process.

Semiconductor Fabrication Facilities

Universal Semiconductor, Inc. 1925 Zanker Road San Jose, California 95112 Cleanroom size: 10,000 square feet Capacity (wafers/week): 2,500 Wafer size: 100mm Process: CMOS Products: ASICs, linear devices, discretes, foundry services, linear bipolar. Feature sizes: 1.5µm, 2.0µm, 3.0µm, 4.0µm, 5.0µm

2-478 North American Company Profiles UTMC Microelectronic Systems

UTMC MICROELECTRONIC SYSTEMS

UTMC Microelectronic Systems 4350 Centennial Boulevard Colorado Springs, Colorado 80907 Telephone: (719) 594-8000 Fax: (719) 594-8032 Web Site: www.utmc.com

Fabless IC Supplier

Financial History ($M)

1992 1993 1994 1995 1996 1997 Sales 20 27 30 30 38 76*

Employees 350 300 300 180 170 350

*Includes CCA revenue of $35M.

Company Overview and Strategy

UTMC Microelectronic Systems is a business unit of Hamilton Standard, part of the United Technologies family of companies.

Established in 1980, UTMC is dedicated to aerospace and defense. It was originally established to assist other UTC divisions with the integration of custom and semicustom microelectronics into their systems. In 1985, UTMC began supplying semicustom Standard VLSI circuits to external companies in the aerospace and defense industries. Today, the majority of UTMC’s business is with external companies. The company also engages in government- and customer-funded R&D.

Up to about mid-1995, UTMC manufactured its IC products in its own fab in Colorado Springs. However, the company took on a fabless strategy with the sale of its fab to Rockwell Semiconductor.

In 1996, UTMC underwent another strategic change. UTMC combined its IC business with the former Commercial Aircraft Electronics (CAE) division of Hamilton Standard, moved into a former Hamilton Standard facility, and changed its name to UTMC Microelectronic Systems. The newly acquired 104,000 square-foot facility houses the company’s research and development, engineering, IC assembly, test, sales and marketing, as well as the newly acquired circuit card assembly operation (CCA). The circuit card operation is a high-mix, low-volume operation focusing on high reliability for the aerospace market.

2-479 UTMC Microelectronic Systems North American Company Profiles

Management

Charles "Nick" H. Ide President Mike Dansby Chief Financial Officer Chuck Gregory Director, Business Development and Engineering Dwight Deem Director, Marketing and Sales James Hudspeth Director, Circuit Card Assembly Operations

Products and Processes

UTMC offers semicustom and military-standard products. Its semicustom products include CMOS gate arrays with densities from 3,400 to 600,000 usable gates, and CMOS cell-based ASICs. The process used for the gate arrays and standard cells is a Jan-qualified low-temperature double- or triple-metal rad-hard process with 0.5µm, 0.6µm, and 0.8µm.

The company also offers a large selection of radiation-hardened monolithic, MIL-STD-1553 products. These include bus interface and control devices, bipolar bus transceivers, 16-bit RISC MPUs and 8-bit MCUs in both rad- hard and non-rad-hard versions, PROMs, dual-port RAMs, SRAMs and PLD and MSI logic devices.

Radiation-hardened products accounted for about 50 percent of UTMC’s IC sales in 1997.

From its newly acquired circuit card assembly and test division, UTMC offers circuit board assembly and test services for low volume production runs of complex board requirements. Typical applications are commercial and military aircraft and environmental controls.

Semiconductor Fabrication Facilities

UTMC sold its fabrication facility to Rockwell Semiconductor in mid-1995. As part of the agreement, Rockwell supplied UTMC with wafers through 1997, as it made its transition to a fabless operation. In March 1996, UTMC announced a foundry agreement with Lockheed-Martin Federal Systems to obtain production capacity for strategic rad-hard products from Lockheed-Martin’s fab in Manassas, Virginia. American Microsystems Incorporated (AMI) was added in 1997 to support new Commercial RadHard™ and standard products with 0.6µm and 0.5µm geometries (see Key Agreements).

Key Agreements

• UTMC established a five-year foundry supply agreement with American Microsystems Incorporated (AMI) in July 1997. This agreement makes AMI the main source for Commercial RadHard™ foundry for commercial space (100K RAD) CMOS devices.

2-480 North American Company Profiles Vadem

VADEM

Vadem 1960 Zanker Road San Jose, California 95112 Telephone: (408) 467-2100 Fax: (408) 467-2199 Web Site: www.vadem.com

Fabless IC Manufacturer Founded: 1983

Regional Offices/Representative Locations

North America: TSMC, USA • San Jose, California Telephone: (408) 437-8762 • Fax: (408) 441-7713

Europe: TSMC, Europe • Amsterdam, The Netherlands Telephone: (31) (20) 305-9900 • Fax: (31) (20) 305-9911

Employees: 85

Ownership: Publicly held. TSE (Taiwan Stock Exchange) and TSM (New York Stock Exchange).

Company Overview and Strategy

Vadem develops and markets semiconductors, boards and system level products for the portable information appliance markets. The Company specializes in products and services where portability (long battery life, light weight, and small form factor and connectivity (wired or wireless messaging) are critical to market acceptance (i.e., internet capable appliances and turnkey portable systems).

Since its founding in 1983, Vadem has designed and developed technology to advance mobile computing. The Company began as an engineering consulting company specializing in intelligent portable devices. Vadem has played a central part of every major turning point in this new industry, designing the world’s first production laptop and developing a broad line of integrated circuits optimized for mobile computing.

Vadem’s annual sales are in the $10M to $25M range. The Company’s products are primarily sold via sales representatives and distributors throughout North America.

2-481 Vadem North American Company Profiles

Management

John Zhao Chief Executive Officer and President Henry Fung Chief Technology Officer Leslie Horton Vice President, Finance and Chief Financial Officer Ahmet Alpdemir Vice President, ForCE Michael Yam Vice President, Marketing and Sales Jim Stair Vice President, Engineering Dan Epel Vice President, Business Development

Products and Processes

Vadem provides embedded products for mobile and internet capable information appliances, and turnkey portable systems. In addition, Vadem is leveraging its expertise in Windows CE to offer a broad suite of products and services related to Microsoft’s embedded operating system.

The majority of Vadem’s revenues are derived from the sales of its single-chip products to the embedded market. Vadem’s single-chip products comprise two product families: x86 compatible embedded processors and PCMCIA controllers.

The embedded controller product line consists of two platforms – the VG330 and the VG230. These highly integrated single-chip GUI platforms combine high functionality with minimal power consumption for cost-sensitive mobile applications.

The VG330, running at 3.3V, integrates NEC’s 8086-compatible V30MX CPU core with core logic, memory management, a memory controller, extensive power management, a PCMCIA 2.1/ExCA/JEIDEA 4.2 controller, 34 GPIO line, a VGA LCD controller and serial port with HP IR compatibility, an AT-style bus controller and a serial keyboard interface or scanned keyboard matrix. For lower-cost mainstream hand-held applications Vadem’s VG230 combines a 16MHz Intel 8x86-compatible processor with highly integrated peripherals. It incorporates an LCD controller, a keyboard scanner, and a PCMCIA controller in addition to a CPU and core logic.

Vadem also supplies a broad family of PCMCIA host adapters that are compatible with Intel’s “B” step register set and software. Designed to offer OEMs a simple upgrade path for meeting evolving system requirements in mixed- voltage and plug-and-play systems, these products help users cope with evolving standards with minimal difficulties. Typical applications are desktop docking systems for portables, conventional desktop, information appliances sub-notebook computers, and portable peripherals.

2-482 North American Company Profiles Vadem

Key Agreements

• In November 1996, Vadem entered into a strategic partnership with NEC’s semiconductor group. Vadem will design and market NEC’s RISC microprocessors with particular emphasis on Windows CE portable applications. Vadem’s systems expertise and knowledge of the handheld market will help establish NEC RISC CPUs as the engines of choice for Windows CE applications.

• Vadem is one of only four authorized Microsoft Windows CE global distributors. It is also a certified Windows CE Developer and integrator. With this strategic relationship, Vadem will develop new targeted Windows CE application platforms. As a Windows CE distributor, Vadem will be exposed to a variety of applications and will focus on major growth markets.

2-483 Vantis North American Company Profiles

VANTIS

Vantis Corporation 995 Stewart Drive P.O. Box 3755 Sunnyvale, California 94088 Telephone: (408) 616-8000 Fax: (408) 774-7216 Web Site: www.vantis.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Advanced Micro Devices (UK) Ltd. • Firmley, England, United Kingdom Telephone: (44) (1276) 803100 • Fax: (44) (1276) 803102

Japan: Advanced Micro Devices • Shinjuku-ku, Tokyo, Japan Telephone: (81) (3) 3346-7570 • Fax: (81) (3) 3342-7606

Asia-Pacific: Advanced Micro Devices Far East Ltd. • Kowloon, Hong Kong Telephone: (852) 2956-5322 • Fax: (852) 2956-0588

Financial History ($M), Fiscal Year Ends December 31

1994 1995 1996 1997 Sales 187 256 248 243

Employees — — 300 300

Company Overview and Strategy

Vantis Corporation was spun-off from AMD in 1997 to form a wholly-owned programmable logic subsidiary of AMD. The company’s roots in programmable logic devices (PLDs) date back to 1978 when Monolithic Memories, Inc. announced the development of the PAL® device. MMI merged with AMD in 1987. Today, Vantis is the dominant supplier of simple PLDs and the world’s third largest supplier of all PLDs.

There are six basic areas addressed by Vantis’ PLDs: high-speed PAL devices, universal PAL devices, industry- standard PAL devices, low-power PAL devices, asynchronous PAL devices, and high-density PLDs. Vantis is now a full range supplier with the latest announcement of its entrance into the FPGA market with its new VFI family of FPGAs.

2-484 North American Company Profiles Vantis

Vantis’ roadmap calls for CPLDs with up to 1,000 macrocells by 1998, and CPLDs with high-density macrocells and integrated cores by 1999. The company will utilize AMD’s core library including its digital signal processing, PCI, and microprocessor cores. Vantis’ FPGA products will move into the 250,000-gate range by the year 2000. Also by 2000, Vantis wants to become an independent, publicly held company.

Management

Richard Previte Chairman Richard H. Forte President and Chief Executive Officer Frank Barone Vice President and Chief Operating Officer Om Agrawal Vice President and Chief Technical Officer Al F. Frugaletti Vice President, Worldwide Distribution Andy Robin Vice President, Marketing Andy Pease Vice President, North American Sales

Products and Processes

For high-performance applications in the networking, telecommunications, computing, and industrial markets, Vantis offers its MACH families of high-density EECMOS PLDs. There are five MACH families, each addressing a specific market need and all include features such as guaranteed fixed timing, PCI compliancy, power management, and 3.3V options. The MACH 5, MACH Superset, and MACH Performance Plus CPLDs come with JTAG in-system programming (ISP) support for no additional cost.

• MACH 1 and 2 Families — These families (including the MACH Performance Plus CPLD products) consist primarily of synchronous devices for synchronous subsystem applications like memory controllers and peripheral controllers and an asynchronous device for applications having asynchronous inputs and for collecting random glue logic. Characteristics include 900 to 3,600 PLD gates, 44 to 84 pins, and 32 to 128 macrocells.

• MACH 3 and 4 Families — These MACH Superset CPLDs provide approximately three times the density (up to 10,000 PLD gates), two times the number of macrocells (up to 256), and two times the amount of I/O (up to 208 pins) of the original MACH 1 and 2 families.

• MACH 5 Family — This CPLD product family has speeds as fast as 7.5ns at 512 macrocells. The MACH 5 devices feature a new hierarchical switch-matrix architecture that allows shorter design times. While a 0.35µm (effective gate length) CMOS process is currently used to manufacture the MACH 5 PLDs, a 0.25µm six-layer- metal process is under development and expected to be implemented by 2000.

• FPGAs — The VF1 family of FPGAs, introduced in January of 1998, is Vantis’ newest programmable . First family members include the 25,000 gate devices available in production quantities in 2Q98. Based on a variable grain architecture, the VF1 devices provide 250MHz pipeline performance providing an increase in system speed by 50 to 100 percent over competing solutions. VF1 will span up to 250,000 gates by mid- 1998.

2-485 Vantis North American Company Profiles

Vantis also offers one of the industry’s widest variety of PAL devices.

• High-Speed PALs — Electronically erasable (EE) CMOS and bipolar PALs with delay times as low as 5ns and 4.5ns, respectively. • Universal PALs — EECMOS PALs with user-programmable output logic macrocells. • Industry-Standard PALs — Bipolar TTL PALs in a variety of speed and power grades. • Low-Power PALs — Zero-power CMOS PALs for portable or battery-operated systems (stand-by current of less than 15µA) and quarter-power CMOS PALs that can cut system power consumption 50 percent by replacing equivalent CMOS PALs. • Asynchronous PALs — CMOS PALs that are optimized for asynchronous and bus interface applications.

Semiconductor Fabrication Facilities

All of the company’s products are manufactured in AMD’s wafer fabrication facilities in Austin, Texas, on processes dedicated to programmable logic. AMD’s Fab 25, where much of Vantis’ devices are manufactured, is a 200mm fab with 0.35µm line geometries.

2-486 North American Company Profiles Vitesse Semiconductor

VITESSE SEMICONDUCTOR

Vitesse Semiconductor Corporation 741 Calle Plano Camarillo, California 93012 Telephone: (805) 388-3700 Fax: (805) 987-5896 Web Site: www.vitesse.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Vitesse Semiconductor Corp. • Lagerlechfeld, F.R. Germany Telephone: (49) 8232-78-626 • Fax: (49) 8232-78-627

North America:Vitesse Semiconductor Corp. • Santa Clara, California Telephone: (408) 696-0414 • Fax: (408) 696-0270

Other representative locations in Western, Northwestern, South Central, Northeast, Southwestern, Eastern, and North Central regions.

Financial History ($M), Fiscal Year Ends September 30

1992 1993 1994 1995 1996 1997 Sales 37 26 36 43 66 105 Net Income 1 (19) (4) 2 13 33 R&D Expenditures 9 10 9 9 11 17 Capital Expenditures 3 6 2 3 11 31

Employees 300 238 201 235 320 467

Company Overview and Strategy

Vitesse Semiconductor (NASDAQ: VTSS), founded in 1984, is a leader in the design, development, manufacturing, and marketing of digital gallium arsenide (GaAs) ICs suitable for commercial, industrial, and military customers. The company's custom, semicustom, and standard products are used in a wide variety of industries including telecommunications, data communications, computers, defense and aerospace systems, automatic test equipment (ATE), and instrumentation.

Vitesse's mission is to be the dominant supplier of the highest performance IC solutions for communications and ATE applications. As the communications market shifts from wire to optical channels, and computers undergo a shift from large proprietary central processors to open distributed processors, Vitesse is positioning itself to provide leading high-performance digital, analog, and mixed-signal IC solutions.

2-487 Vitesse Semiconductor North American Company Profiles

Management

James A. Cole Chairman Louis R. Tomasetta President and Chief Executive Officer Ian Burrows Vice President, Fab Operations Robert Cutter Vice President and General Manager, Colorado Springs Ira Deyhimy Vice President, Product Development Chris F. Gardner Vice President and General Manager, ATE Products Eugene F. Hovanec Vice President, Finance and Chief Financial Officer James Mikkelson Vice President, Technology Development and Chief Technical Officer Michael Millhollan Vice President and General Manager, Standard Products Robert Nunn Vice President and General Manager, ASIC Products Neil Rappaport Vice President, Sales Ram Venkataraman Vice President, Quality Jeanne Johnson Vice President, Human Resources

Products and Processes

Vitesse's products are fabricated using its proprietary H-GaAs™ (high integration gallium arsenide) process technology. The current generation is the five-level metal, 0.5µm H-GaAs IV process, capable of integration levels of over one million transistors. ASIC design and simulation is supported on industry standard tools from Mentor, Cadence, Viewlogic, Synopsys, and Teradyne.

Vitesse's standard products include telecommunications and data communications ICs. Its communications products address the high-speed data transmission marketplace. Most are designed to be compatible with the SONET (synchronous optical network), ATM, and Fibre Channel standards. The operating frequency of these devices is from 155MHz to 10GHz and they are aimed at providing physical layer solutions for copper or fiber optics communication lines.

2-488 North American Company Profiles Vitesse Semiconductor

Vitesse's gate array product line consists of five families: GLX, FX, Viper, SCFX, and Fury™. Aimed at the com- munication, ATE/instrumental, and computer markets, GLX arrays are suited to switching networks, serial links, high- speed data bus transfers, DSP functions, and critical timing blocks. GLX utilizes a sea-of-gates architecture and can be powered from either a single or dual power supply, depending on I/O requirements. These gate arrays can accommodate virtually any digital application requiring up to 175,000 gates. The FX series provides solutions in super minicomputers, high-end workstations, telecommunications systems, and high-performance ATE/instrumentation. The Viper family provides solutions in computer peripherals, medical instrumentation, and communications. The SCFX family is targeted at telecommunications and data communications applications, offering maximum operating frequencies beyond 3GHz. The Fury series addresses the conventional silicon ECL user.

In early 1997, Vitesse introduced its first family of GaAs standard cell arrays targeting telecommunications and high-speed switching applications. Dubbed the SLX line, the family consists of five devices with gate densities ranging from 10K to 220K gates while operating from a single 3.3V power supply. The SLX family is based on a 0.4µm four-layer metal HGaAs-IV process and utilizes a standard cell architecture.

Semiconductor Fabrication Facilities

In late 1996, Vitesse began construction of what it claims will be the first 150mm GaAs VLSI fabrication facility in the industry. The 100,000 square-foot facility will support manufacturing and test, as well as a design center for research and development. Initial production is expected to begin in mid-1998.

Vitesse Semiconductor Vitesse Semiconductor 741 Calle Plano 4323 ArrowsWest Drive Camarillo, California 93012 Colorado Springs, Colorado 80907 Cleanroom size: 5,500 square feet (Class 10) Cleanroom size: 10,000 square feet (Class 1) 6,500 square feet (Class 100) Wafer size: 150mm Capacity (wafers/week): 1,700 Process: H-GaAs E/D MESFET Wafer size: 100mm Products: Gate arrays, telecom and datacom Process: H-GaAs E/D MESFET devices, microperipherals, foundry services. Products: Gate arrays, telecom and datacom devices, microperipherals, foundry services. Feature sizes: 0.4µm, 0.5µm

2-489 Vivid Semiconductor North American Company Profiles

VIVID SEMICONDUCTOR

Vivid Semiconductor, Inc. 7400 West Detroit Street Suite 100 Chandler, Arizona 85226 Telephone: (602) 961-3200 Fax: (602) 961-1135 Web Site: www.vividsemi.com

Fabless IC Supplier Founded: 1993

Employees: 70

Ownership: Privately held.

Regional Headquarters/Representative Locations

Asia-Pacific: Vivid Semiconductor Korea Inc. • Seoul, Korea Telephone: (82) (2) 522-3175 • Fax: (82) (2) 552-3177

Vivid Semiconductor KK • Tokyo 105 Japan Telephone: (03) 3432-1581

Company Overview and Strategy

Vivid Semiconductor was formed in 1993 to design and market mixed-signal and analog integrated circuits for applications requiring high voltage operation at a low cost. Currently, the company is focused on providing drive electronics to manufacturers of flat panel displays (FPDs).

Using patented extended voltage-range CMOS technology, Vivid has developed technology that allows designers to build enhanced performance flat panel displays with 24-bit color and full-motion video. The key to this technology is that it can be fabricated on standard CMOS processes. Vivid’s process technology can be applied not only to FPDs but also to a broad range of other markets, from automotive to telecommunications, where extended voltage-range CMOS can make a difference in product capability, power consumption, cost, and reliability.

2-490 North American Company Profiles Vivid Semiconductor

Management

Alex Erhart President and Chief Executive Officer Dan Clarke Vice President, Marketing and Sales Gerry Harder Vice President, Research and Development Tim Vatuone Vice President and Chief Financial Officer James Hanshew Vice President, Operations Ed Fullman Director, Marketing

Products and Processes

Vivid Semiconductor offers three families of direct drive flat panel display column drivers — CRT replacement products, low power notebook TFT display products, and MLS/AA STN display products. Vivid’s direct drive LCD column drivers are available for a wide range of panel resolutions from VGA to UXGA.

Vivid’s column drivers are based on its patented "Dual Range" design architecture, which allows high-voltage devices to be achieved on standard, low-voltage CMOS processes. For example, 10V operation on a 0.8µm process and 7V operation on a 0.5µm process can be easily achieved, and higher voltages are possible.

Semiconductor Fabrication Facilities

Unlike leading edge microprocessors and memories, Vivid’s silicon requirements can be fabricated in plants that are three process generations old. Vivid’s wafer processing, packaging, and testing functions are contracted to well-established manufacturers.

2-491 VLSI Technology North American Company Profiles

VLSI TECHNOLOGY

VLSI Technology, Inc. 1109 McKay Drive San Jose, California 95131 Telephone: (408) 434-3100 Fax: (408) 263-2511 Web Site: www.vlsi.com

IC Manufacturer Founded: 1979

Regional Offices/Representative Locations

Japan: VLSI Technology, Inc. • Tokyo, Japan Telephone: (81) (3) 5454-3800 • Fax: (81) (3) 5454-3801

Europe: VLSI Technology, Inc. • Palaiseau Cedex, France Telephone: (33) (1) 69-19-71-00 • Fax: Fax: (33) (1) 69-19-71-01

Asia-Pacific: VLSI Technology, Inc. • Taipei, Taiwan Telephone: (886) (2) 719-5466 • Fax: (886) (2) 718-3204

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 * Sales 429 516 587 720 717 713 Net Income (32) 16 32 46 (50) 67 R&D Expenditures 50 65 79 90 105 98

Capital Expenditures 40 72 94 204 245 137

Employees 2,379 2,659 2,728 2,986 2,948 2,600

Ownership: Publicly held. NASDAQ: VLSI.

*Excludes revenues of COMPASS Design Automation which was sold to Avant! Corp., September 1997.

2-492 North American Company Profiles VLSI Technology

Company Overview and Strategy

VLSI Technology, Inc. designs and manufactures System-Level Siliconä integrated circuits based on its FSBä , functional systems blocksä library. Targeting its offerings toward the wireless communications, networking, consumer digital entertainment and computing markets, the company offers its customers advanced system-level integration capabilities. VLSI Technology is a leader in the design, manufacture, and sale of complex high- performance ASICs and ASSPs.

Founded in 1979, the company has been a pioneer in the cell-based ASIC business. VLSI targets high-growth markets namely communications, computing and consumer digital entertainment markets. It has built expertise in these areas and can use its library of proprietary cells and FSB library to assist customers in designing products and bringing them to market rapidly.

VLSI’s integrated circuit business is organized in three main groups — Computing Products, Communications Products, and Consumer Digital Entertainment Products.

The Computing Product group offers devices for the computer market, including high-end computing applications such as graphics workstations and high-end storage systems. Sales from this product group declined from representing 46 percent of total revenues in 1995 to fifteen percent in 1996 due to Intel’s strengthened dominance in the core logic business and a decrease in sales for Apple Computer architecture systems. The Computing Products group is shifting its focus away from standard core logic chipsets and toward custom products for high-end applications.

The Communications Products group offers devices for wireless and network communications applications. Within the communications area, the company continues to develop technologies supporting GSM, PHS, and DECT standards. VLSI is also developing products targeting CDMA digital cellular applications. In 1Q96, VLSI created a European subsidiary called Creative Systems Solutions. Based in Munich, Germany, Creative Systems Solutions will focus on the wireless data communications marketplace.

The Consumer Digital Entertainment Products group supplies devices for secure communications and home entertainment applications such as interactive television, satellite and cable technology, and electronic video game systems. Data encryption is one key area of focus due to increased security concerns as products become more advanced.

2-493 VLSI Technology North American Company Profiles

Future product development will include a focus on the wireless, networking, set-top box, and advanced computing markets.

Management

Alfred J. Stein Chairman and Chief Executive Officer Richard M. Beyer President and Chief Operating Officer Thierry Laurent Senior Vice President and GM, Communications Product Group Douglas M. McBurnie Senior Vice President, Computer and Consumer Products Group Balakrishnan S. Iyer Senior Vice President, Finance and Chief Financial Officer Ted Malanczuk Senior Vice President, Operations John Hodgson Senior Vice President, Sales Sunil Mehta Vice President and Treasurer Nobuo Sugawara President, VLSI Technology KK, Japanese Subsidiary

Products and Processes

Using advanced design capabilities, a vast cell library of predefined cells, and advanced manufacturing processes, VLSI Technology offers highly customized, highly integrated standard cell, embedded array (FlexArray), and gate array ASICs and ASSPs for applications such as computers, wireless communications equipment, electronic games, and digital set-top boxes.

The VLSI Cell Library provides an extensive and growing variety of pre-designed and characterized cells, macrocells, and large functional system blocks. The company’s specialized system blocks include: UART, parallel port, SCC, SCSI, PCMCIA, PCI, SSA, Fibre Channel, and graphics functions for computing applications; T1/E1, SONET/SDH, and ATM functions for network communications applications; GSM/DCS, DECT, CT2, PHS, CDPD, and Ruby II functions for wireless communications applications; and digital demodulation, forward error correction (FEC), MPEG-2 video and MPEG audio, microcontroller, and transport for digital entertainment applications. VLSI’s cell library also includes general-purpose system blocks such as 32-bit ARM RISC processor cores, data encryption devices, and programmable DSP cores.

In a second attempt to penetrate the data security market, VLSI has developed the GhostRider security chip for PCI-based computers, modems, web-browsers, and set-top boxes. The device is designed to protect the electronic transfer of intellectual property by integrating an on-chip RISC processor with encryption/decryption engine-functional system blocks.

In April 1997, VLSI introduced a gigabit MAC controller device, the VNS67500. The device is available as a standard product, operating at 3.3V, or may be embedded in a submicron CMOS ASIC. The device is designed for high-speed networking applications.

Two new processes were announced in April 1997, for mixed signal devices – VSC9 SRAM, and VSC10 SRAM, 0.25 micron and 0.20 micron processes, respectively. A five layer metal interconnect process is planned for introduction in 1998.

2-494 North American Company Profiles VLSI Technology

Semiconductor Fabrication Facilities

VLSI has a three level manufacturing strategy – one level of support comes from their partner, Wafer Technology Malaysia (WTM) located in San Jose, where R&D prototyping for advance technologies takes place. The second level is from their production fab in San Antonio, where the 0.25 and 0.20 micron processes are utilized. Finally, the third tier of support will be coming from their new fab, joint ventured with WTM, located in Penang, planned for completion by the year 2000.

In previous years, VLSI Technology enhanced its manufacturing capacity through wafer manufacturing relationships, primarily with Chartered Semiconductor. However, by the end of 1996, VLSI shifted substantially all its wafer manufacturing to its own facilities.

During 1996, VLSI completed the majority of its expansion plans of its San Antonio fab, including the conversion to 0.6µm and smaller processes. In late 1996, VLSI announced plans to close its San Jose facility, citing its technology limitations as a contributing factor in the decision.

VLSI Technology, Inc. VLSI Technology, Inc. 1109 McKay Drive 9641 Westover Hills Boulevard San Jose, California 95131 San Antonio, Texas 78251 Telephone: (408) 434-3000 Telephone: (210) 522-7000 Fab 1 Fab 2 Cleanroom size: 47,000 square feet Cleanroom size: 50,000 square feet (Class 1) Capacity (wafers/week): 3,400 Capacity (wafers/week): 7,400 Wafer size: 150mm Wafer size: 150mm Process: CMOS Process: CMOS Products: ASICs, ASSPs Products: ASICs, ASSPs Feature sizes: 0.6µm, 0.8µm, 1.0µm Feature sizes: 0.35µm, 0.5µm, 0.6µm

VLSI subcontracts all of its IC packaging and approximately half of its final test needs. Its in-house final test functions are performed at its factories in California and Tempe, Arizona.

Key Agreements

• In October 1997, VLSI signed an agreement to invest in a new state-of-the-art, deep submicron semiconductor manufacturing plant with Wafer Technology (Malaysia) Sendiran Berhad (WTM), a consortium of Malaysian and foreign investors organized under the sponsorship of Malaysian government agencies. In addition, as part of the agreement, WTM will take ownership, manage and upgrade VLSI’s current San Jose fabrication facility, operating as a semiconductor process development and prototyping line. This will provide WTM with an immediate base of operations in the Silicon Valley. The fab will employ about 65 staff.

2-495 VLSI Technology North American Company Profiles

• In October 1997, VLSI and The Athena Group, Inc., announced a strategic partnership to develop advanced digital signal processing (DSP) technologies under terms of an award announced by the U.S. Department of Commerce National Institute of Standards and Technology (NIST) Advanced Technology Program (ATP). For the project, The Athena Group will work with VLSI to develop integrated circuit elements and support software implementing advanced DSP techniques that could result in cost/performance gains up to ten times over those of current generation DSP chips.

• In July 1997, VLSI announced the signing of a definitive agreement to sell its COMPASS Design Automation subsidiary to Avant! Corporation. COMPASS provides electronic design automation (EDA) tools and libraries for deep submicron application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs). Under the agreement, Avant! purchased all of the outstanding equity in COMPASS for a combination of cash and common stock totaling approximately $44 million.

The agreement allows VLSI to put its full focus on expanding their semiconductor business, targeted at communications, consumer digital entertainment and advanced computer workstations. The acquisition was completed in September of 1997.

• In November 1996, VLSI signed a memorandum of understanding with the Government of Malaysia. The memo covers the construction of a 200mm wafer fabrication facility in Malaysia. To date, the company has not announced any decision or timeframe for the facility.

• In 1996, VLSI entered into an agreement with Digital Semiconductor that covers the design and manufacture of system logic devices. The devices are for use in future Alpha-based systems.

• VLSI and Hitachi renewed and expanded their 1988 standard cell and process technology exchange agreement. The new pact added gate array technology, and the two companies will develop compatible gate array families. In July 1996, Hitachi licensed its SuperH-3 RISC MPU core to VLSI, who plans to offer it as a CPU core in ASICs and ASSPs for applications such as handheld computing devices, navigation systems, digital entertainment, and multimedia peripherals.

2-496 North American Company Profiles Voltage Multipliers, Inc.

VOLTAGE MULTIPLIERS, INC. (VMI)

Voltage Multipliers, Inc. 8711 West Roosevelt Avenue Visalia, California 43291 Telephone: (209) 651-1402 Fax: (209) 651-0740 Web Site: www.voltagemultipliers.com

IC Manufacturer Founded: 1980

Employees: 145

Ownership: Privately held.

Company Overview and Strategy

Voltage Multipliers Inc. was incorporated in December 1980 to design, manufacture and market high voltage semiconductor products. VMI has also developed some of the world’s fastest switching rectifiers for both high and low voltage applications.

VMI currently sells to more than 1,000 customers in a variety of industries. The majority of the customers are manufacturers of high voltage power supplies or users of high voltage power supplies in their products. With more than 50 years of combined experience in High Voltage electronics, approximately 20 percent of VMI’s business is for military use and the balance is for industrial, medical, aircraft or other high reliability applications.

Management

Dennis J. Kemp President and Chief Executive Officer John Yakura Vice President, Director of Research and Development Kenneth Haag Vice President of Marketing

Products and Processes

Discrete Diodes Diodes are available in a wide variety of voltage ranges and are available in axial-leaded, SMD TAB, and some types as glass-passivated chips.

Transient Voltage Suppressers TVS are currently in development as catalog items and are available in limited voltage ranges. Current emphasis is on higher voltage TVS.

2-497 Voltage Multipliers, Inc. North American Company Profiles

High Voltage Power Supplies These products consist of VMI diodes along with other components (transformers, resistors, capacitors, etc.) assembled in a variety of configurations to provide power conversion from low voltage DC or AC to high voltage DC. These devices are custom designed and are high quality, high reliability devices.

2-498 North American Company Profiles VSIS, Inc.

VSIS, INC.

VSIS, Inc. 1050 East Arques Ave. Sunnyvale, CA 94086 Telephone: (408) 730-5900 Fax: (408) 732-8037 Web Site: www.vsisinc.com

Fabless IC Supplier

Company Overview and Strategy

VSIS, Inc., founded in 1996, (as a semiconductor systems design spin-off of Mitsubishi Electric) is a design company which was formed to address the emerging systems-level applications requirements of North American customers. The company handles leading-edge “system-on-a-chip” designs, using Mitsubishi fabrication facilities.

Products and Processes

Current products:

•Advanced 3D graphics; •Java solutions in silicon; •System-on-a-chip (SOC); and •Network computing.

Mitsubishi Electronics America provided 100 percent of the venture capital funding for the company. VSIS is an autonomous entrepreneurial company.

Management

Dr. Osamu Tomisawa President and Chief Executive Officer Stephen Hester Executive Vice President Kenji Baba Vice President, Engineering Joe Eschbach Assistant Vice President, New Computing Markets

2-499 VTC North American Company Profiles

VTC

VTC Inc. 2800 East Old Shakopee Road Bloomington, Minnesota 55425-1350 Telephone: (612) 853-5100 Fax: (612) 853-3355 Web Site: www.vtc.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: VTC Japan • Tokyo, Japan Telephone: (81) (3) 3389-6016

Europe: VTC Deutschland • Germany Telephone: (49) (8071) 95304

Financial History ($M)

1992 1993 1994 1995 1996 Sales 50 75 108 166 178

Employees 300 375 480 540 600

Company Overview and Strategy

VTC was founded in 1984 to design and manufacture VHSIC products for government markets. Within the first year, VTC acquired Control Data Corporation's microcircuits division (a captive chip manufacturing operation for CDC's disk drive business that had operated since 1969). VTC was privately held, but Control Data was a major investor.

Control Data purchased all of VTC in 1987, making it a wholly-owned subsidiary. In 1988, the two original founders left CDC and the company was put up for sale. In October 1990, CDC sold the bipolar portion to a management buyout led by VTC's current CEO, Larry Jodsaas. Before the end of the year, CDC also sold the CMOS fab to Cypress.

Today, VTC's strategy is to offer quality, high-performance ICs to the data storage (disk and optical drive) industry. The company's revenues come from bipolar read/write preamplifiers and channel electronics found in disk drives worldwide.

2-500 North American Company Profiles VTC

Management

Larry Jodsaas President and Chief Executive Officer Cliff Boler Vice President, Engineering John Doyle Vice President, Quality Dan Griffith Vice President, Sales and Marketing Greg Peterson Vice President and Chief Financial Officer Robert Rousseau Vice President, Human Resources Ed Schnable Vice President, Manufacturing

Products and Processes

VTC offers a broad line of read/write preamplifier standard products and channel ASICs for use in rigid disk drives. Processes used by the company are complementary bipolar (CBP), ECL, and BiCMOS (called PolarMOS).

Semiconductor Fabrication Facilities

VTC Inc. 2800 East Old Shakopee Road Bloomington, Minnesota 55425-1350 Cleanroom size: 32,000 square feet Capacity (wafers/week): 5,000 Wafer size: 150mm Processes: Bipolar, complementary bipolar, BiCMOS Products: Standard and ASIC read/write preamplifiers, servo preamplifiers, and channel electronics Feature sizes: 1.2µm, 2.0µm, 3.0µm

2-501 Western Design Center North American Company Profiles

WESTERN DESIGN CENTER

Western Design Center, Inc. (THE) 2166 East Brown Road Mesa, Arizona 85213 Telephone: (602) 962-4545 Fax: (602) 835-6442 Web Site: www.wdesignc.com

Fabless IC Supplier

Financial History ($M), Fiscal Year Ends December 31

1997 Sales 1-2.5 (est.)

Employees 7

Company Overview and Strategy

A privately-held company founded in 1978, Western Design Center (WDC) designs, assembles and sells microprocessor Intellectual Property (IP) to the electronics industry worldwide. WDC licenses its IP portfolio (65C02 microprocessor and microcontroller cores and a modules library) to end-user companies and foundries, provides design services, and assembles ASIC and ASSP cores for low-volume-production applications. WDC is the original source and remains the IP owner of the patented CMOS 65C02 8-bit and 65C816 16-bit microprocessors. In mid-1994, WDC introduced the Mensch Computer, a developer and educational system for data capture, communications and control applications.

The founder, William D. Mensch, Jr., was one of the inventors of the microprocessors and he helped invent and develop the 6502 chip used in Apple, Commodore, Atari and other computers.

WDC customers include Franklin Electronic Publishers, ITT Semiconductors, Sanyo and General Instruments.

WDC also resells third party software development tools from six vendors and hardware development tools from another eleven vendors. Most vendors are U.S., but a few are from the UK. Additionally, WDC has a network of Field Representatives; three in the U.S. and one each in Israel and Taiwan.

Management

William D. Mensch, Jr. Founder, Chairman, President Mike Grennan Chief Financial Officer Nick Dazio Vice President, Business Development Michael Thompson QA/QC Manager

2-502 North American Company Profiles Western Design Center

Products and Processes

WDC offers five microprocessors. The W65C02S is a single-chip, 8-bit microcontroller ASIC which runs up to 20MHz, has a single-phase clock and is available in 40 DIP, 44 PLCC and 44 QFP packages. Applications for this 0.8µm chip include video games, set-top converters, pagers, and medical equipment.

WDC’s W65C816S is a fully static CMOS 16-bit microprocessor with backward software compatibility to its predecessor series. Addressing is extended to a full 16Mb and the chip is software-switchable to 8-bit emulation mode or native 16-bit mode. The 0.8µm chip also features abort and interrupt capability.

WDC’s W65C134S 8-bit microcontroller is a fully static 8-bit system-on-a-chip fabricated in 0.8µm CMOS for microcomputer and low power (2.8V @ 3mA/MHz and 5.5V @ 6mA/MHz) applications including hi-rel. The chip is also available as a monitor ROM ASSP. It is packaged in either 68 PLCC or 80 QFP and has 56 I/O ports. Low power modes are WAI, STP, and fast oscillating start and stop. WDC also offers the W65C265S 16-bit version specifically designed for low power hi-rel applications. It is also 0.8µm and features 64 I/O ports and is packaged in 84 PLCC or 100 QFP.

WDC’s 265C22S Versatile Interface Adapter (VIA) is a program-controlled 8-bit serial bi-directional peripheral I/O device used with the 265C series microprocessors. The device is fabricated in a 1.2µm process using proprietary “foundry-independent design rules.” Key features include NMOS 6522 device compatibility, two 16-bit programmable interval timers/counters and an enhanced handshake feature. Several control registers also provide application flexibility.

WDC offers four developer boards for embedded systems development, WDC chip-based system development and system or chip development using WDC’s IP. The W65C02S is an 8-bit MPU with a Versatile Interface Adapter (VIA) peripheral chip and a memory map decoder PLD. The board also features an ASIC header, ten I/O lines, a low-power detector, easy crystal changing, a 32K SRAM, a 32K EPROM, and access to all control lines. The glue chip is an AMD MACH211. The W65C816S MPU is a 16-bit version with twenty I/O lines and its bank address and data buses extracted and placed on the header for easier use. It uses AMD’s MACH210 glue chip.

WDC’s W65C265S is an 8-bit MCU with four serial ports, full networking capability, a monitor program, twenty I/O lines, the VIA peripheral chips, and Flash and battery-backed SRAM PCMCIA cards. The W65C134SPCB developer board is a 0.8µm, 4MHz, 8-bit MCU. It has one serial port, full networking capability, a monitor program, twenty I/O lines, 32K SRAM, 32K EPROM, and includes the VIA peripheral chip.

WDC made a wise, bold move in its 1994 launch of the Mensch Computer; a move the company positions as a “peripheralization” and “embedded system use” of its W265C265S developer board. Base peripherals include the keyboard and display and options include a modem, printer, and game controller. This product is targeted as a “trainer” for college engineering laboratories. The Mensch Computer enables students to learn assembly language and C programming and learn about libraries and all the system and peripheral hardware. WDC notes the ASIC header allows teaching of HDL FPGA applications and soft cores. WDC has a University Relations program from which the product appears to have its genesis and is sure to benefit from student interactions which include fellowships at WDC.

2-503 Western Design Center North American Company Profiles

WDC licenses two 8-bit and two 16-bit chip level cores, the VIA core, a static RAM module and a mask ROM module.

WDC states its IP has been licensed into the full spectrum of applications including commercial, industrial, hi-rel, medical, MIL-SPEC and rad-hard. WDC IP has been used in 0.6µm through 1.5µm processing geometries. WDC’s licensing approach is to charge a low-cost, one-time initial fee with low quarterly maintenance fees.

2-504 North American Company Profiles WSI

WSI

WSI, Inc. 47280 Kato Road Fremont, California 94538 Telephone: (510) 656-5400 Fax: (510) 657-5916 Web site: www.wsipsd.com

Fabless IC Supplier Founded: 1983

Financial History ($M)

1992 1993 1994 1995 1996 1997 Sales 28 27 28 38 44 43

Employees 137 125 125 125 100 146

Ownership: Privately held.

Company Overview and Strategy

WSI, Inc. (formerly WaferScale Integration, Inc.) was founded in 1983, as a supplier of high-performance programmable ICs. It serves embedded system designers who need to achieve higher system performance, reduce system size and power consumption, shorten product development cycles to achieve faster market entry, and reduce manufacturing costs. It offers field-programmable microcontroller peripherals as well as high- performance non-volatile EPROM products.

Management

Michael Callahan Chairman, President, and Chief Executive Officer Yoram Cedar Vice President, New Business Development Howard Gopen Vice President, Operations Robert Hoard Vice President, Worldwide Sales Reza Kazerounian Vice President, Research and Development Carl Mills Vice President, Finance David Raun Vice President, PSD and Memory Products

2-505 WSI North American Company Profiles

Products and Processes

WSI supplies several families of programmable microcontroller peripherals as well as a broad line of high performance non-volatile PROM and EPROM devices. These products are based on the company's patented self-aligned split-gate CMOS EPROM technology. WSI's fast Flash, EEPROM, and EPROMs are available in densities ranging from 16K to 1M. The programmable peripherals integrate EPROM, SRAM, PLD, and user- configurable logic.

Semiconductor Fabrication Facilities

WSI does not have its own fabrication facility. It has foundry agreements with Sharp, National Semiconductor, AMI, SGS-Thomson, and Tower Semiconductor.

Key Agreements

• In December 1997, WSI announced an agreement to jointly develop Flash memory versions of its PSD peripherals for MCUs using SGS-Thomson’s FLASH+™ technology. Under the agreement, ST will provide WSI with full access to its NVM design rules and wafer fab capacity to meet projected demand for Flash PSDs. WSI is licensing ST for manufacturing and marketing Flash PSDs as well as use of WSI’s advanced NVM technologies. ST also acquired a fifteen percent equity stake in WSI as part of the transaction.

• In January 1997, WSI signed a long-term technology exchange and foundry agreement with Tower Semiconductor. Under the agreement, the two companies will jointly develop manufacturing process technologies such as WSI’s AMG EPROM architecture using Tower’s 0.6µm technology. The agreement also guarantees WSI access to Tower’s wafer capacity.

• National took a 10 percent stake in WSI as part of a five-year foundry and technology exchange agreement.

• WSI formed an alliance with American Microsystems to jointly develop mask-programmable versions of WSI's line of microcontroller peripherals. AMI is manufacturing the parts and the companies are marketing them separately.

2-506 North American Company Profiles White Microelectronics

WHITE MICROELECTRONICS / BOWMAR INSTRUMENT CORP.

White Microelectronics 3601 East University Drive Phoenix, Arizona 85034-7217 Telephone: (602) 437-1520 Fax: (602) 437-9120 Web Site: www.whitecmicro.com

IC Manufacturer Founded: 1980

Regional Offices/Representative Locations

North America:White Microelectronics • Huntington Beach, CA Phone: (562) 592-2793 • Fax: (562) 592-3046

White Microelectronics • Nutley, NJ 07110 Phone: (973) 284-1228 • Fax: (973) 284-0843

Europe: White Microelectronics • Northumberland, England Telephone: (44) (0) 1661-853777 • Fax: (44) (0) 1661-854111

Financial History ($K), Fiscal Year Ends September 27

1997 1996 1997 Corporate Sales 18,067 18,840 22,189 Net Income 522 1,290 3,903

Microelectronics Division Net Income 1,344 1,272 4,110

Ownership: Publicly held. AMEX: BOM

Company Overview and Strategy

White Microelectronics, a division of Bowmar Instrument Corporation, designs and manufactures custom and standard multichip modules and microcircuits for commercial, industrial and military applications worldwide. The Company is a world leader in the production of memory products. White’s products include a wide range of SRAM, Flash, EEPROM, and SRAM memory products. High-density memories are available in PLCC, SIMM, ZIP and BGA for commercial applications. There is also a diverse selection of processor-based products for military environments.

2-507 White Microelectronics North American Company Profiles

The Board of Directors of Bowmar Instrument Corporation has realigned the Company to be a pure microelectronics company to position it for the greatest possibility of long-term success. The Company’s Technologies division based in Fort Wayne, Indiana. The Company’s non-semiconductor division, the Technologies division, designs and manufactures a variety of electromechanical components, electromechanical display devices and keyboard assemblies for military and commercial applications. As an added measure to reduce overhead expense, the Company's corporate headquarter’s facility in Phoenix, Arizona, was closed in January 1998. Bowmar corporate functions will now operate out of the new microelectronics facility, a modern 53,000 square foot facility, located in Phoenix.

Bowmar’s Microelectronics division has continued to grow and the division’s sales for fiscal 1997 were almost 18% over sales for fiscal 1996. The percentage of sales in gross margin increased from 37.6% (1996) to 38.5% (1997). Pre-tax income at this division in 1997 was $2,608,000, an increase of over $400,00 from 1996.

Management

Hamid Shokrogozar President and Chief Executive Officer Dan Tarantine Vice President, Sales and Marketing

Products and Processes

White Microelectronics has four divisions of product lines: commercial memory products, Plastic Plusâ memory products, Atlas peripheral-processor, and memory and microprocessor products. Product details are as follows:

Commercial Memory Products • SRAM, Flash, and DRAM PLCCs, SIMMs (Single In-line Memory Modules), ZIPs, and BGAs. • White Microelectronics is the first to introduce on the market the 16Mbyte SRAM SIMM. • Flash SIMMs from 2Mbytes to 64Mbytes. • SRAM SIMMs in 16, 32, 36, 36, and 64Mbit. • 4Mbit SRAM MCMs with 3.3V, and 16Mbit SRAM MCMs with 3.3V. • 16Mbit SRAM. • High-density DRAM Mega DIMMs (Dual In-Line Memory Modules).

Plastic Plus â Memory Products • SRAM, Flash, and DRAM memory products in a variety of monolithic plastic packages.

Memory and Microprocessor Products • 8Mbyte and 16Mbyte Flash. • 3.3V SRAM. • Military-grade monolithic processors. • 4Mbit monolithic SRAM. • 8Mbyte Multichip Flash Modules and 16Mbyte Multichip Flash Modules. • 256Kx16CMOS EEPROM Module. • Military Grade 128Kx8CMOS monolithic EEPROM. • SRAM, Flash, EEPROM, and Mixed memory in ceramic, hermetic monolithic and multichip module packages. • Monolithic processors and processor MCMs. • 16Mbit monolithic DRAM. • 5V Flash 16Mbit monolithic, 5V Flash 32Mbit module, and 5V Flash 64Mbit module.

2-508 North American Company Profiles White Microelectronics

Memory and Processors (continued) • Military version of 603e Microprocessor: 32-bit of the PowerPCÔ RISC architecture. • SRAM/EEPROM Mixed Modules. • SRAM/Flash Mixed Modules. • Modular X multi-chip module (MCM) incorporate peripheral functions and memory with the processor core. • SRAM/EEPROM Mixed Modules.

Atlas Peripheral Processors • Contains the functions of 16 individual components in one chip: a processor interface and memory decorder, five UARTs, a watchdog timer, an interrupt controller, 32 programmable I/Os, both reset and configuration logic, and four 48-bit timers.

2-509 Xicor North American Company Profiles

XICOR

Xicor, Inc. 1511 Buckeye Drive Milpitas, California 95035-7493 Telephone: (408) 432-8888 Fax: (408) 432-0640 Web Site: www.xicor.com

IC Manufacturer Founded: 1978

Regional Headquarters/Representative Locations

Japan: Xicor Japan K.K. • Shinjuku-ku, Tokyo, Japan Telephone: (81) (3) 3225-2004 • Fax: (81) (3) 3225-2319

Europe: Xicor Ltd. • Witney, Oxford, United Kingdom Telephone: (44) (1993) 700544 • Fax: (44) (1993) 700533

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 93 104 104 114 124 122 Net Income (30) (6) 2 10 14 (3) R&D Expenditures 22 13 14 15 15 18 Capital Expenditures 6 2 5 9 25 —

Employees 840 800 691 641 680 730

Company Overview and Strategy

Xicor, Inc. (NASDAQ: XICO), founded in 1978, designs and manufactures a broad line of non-volatile in-the- system programmable semiconductor ICs. In-the-system programmability enables telecommunications, consumer, computer, industrial, automotive, and military products to adapt to changing software and operating environments, and to be personalized by the user. Many of Xicor’s products consume little power and operate well from a battery powered source, making them well suited for hand-held and portable applications.

2-510 North American Company Profiles Xicor

Xicor emphasizes the development of proprietary products that incorporate its programmable technology, enabling customers to rapidly bring to market products with improved features, efficiency and maintainability. In 1995, Xicor introduced its first SerialFlash™ memory product family, which operates from low voltage power sources. Xicor is a leading supplier of EEPROM memory products and EEPOT® digitally controlled potentiometers.

Management

Raphael Klein Chairman, President, and Chief Executive Officer Joseph Drori Vice President, Products Design, Engineering, Quality, and Reliability Bruce Gray Vice President, Wafer Operations Geraldine N. Hench Vice President and Corporate Controller Klaus G. Hendig Vice President, Finance and Administration Timothy D. Kanemoto Vice President, Product Operations Dennis E. Krueger Vice President, North America Sales Madga M. Madriz Vice President, Human Resources Michael Levis Vice President, Marketing William H. Owen III Vice President, Technology Development and Intellectual Properties

2-511 Xicor North American Company Profiles

Products and Processes

Xicor offers serial EEPROMs in 128-bit to 128K densities, parallel EEPROMs in 16K to 1M densities, Serial Flash memories in 8K to 128K densities, Secure SerialFlash devices for data security applications, NOVRAMs (nonvolatile SRAMs), NOVRAMs with Autostore™ power-loss data protection, EEPOT® digitally controlled potentiometers, EEPROMs that interface directly with microcontrollers or microprocessor bus-based systems, and memory subsystems.

Xicor is also a licensee of the Pine 16-bit fixed-point DSP core and related development tools from DSP Group. The firm is developing products that integrate the Pine DSP core with its EEPROM technology.

Xicor is ISO 9001 and QS 9000 quality standard certified.

Semiconductor Fabrication Facilities

Xicor, Inc. 1511 Buckeye Drive Milpitas, California 95035-7493 Capacity (wafers/week): 2,000 Wafer size: 150mm Processes: CMOS Products: EEPROM-based ICs Feature sizes: 0.6µm-1.0µm

Key Agreements

• In early 1997, Yamaha teamed up with Xicor in the EEPROM business. The partnership calls for Yamaha to produce Xicor’s EEPROMs and supply them to cellular phone makers under the Xicor name beginning in May 1998. The two companies also agreed to jointly develop process technology.

2-512 North American Company Profiles Xilinx

XILINX

Xilinx, Inc. 2100 Logic Drive San Jose, California 95124-3400 Telephone: (408) 559-7778 Fax: (408) 559-7114 Web Site: www.xilinx.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

In February 1998, Xilinx broke ground for a new $31 million, 180,000 square foot corporate headquarters in San Jose. The new building will accommodate about 600 new employees and is scheduled for completion this fall.

Japan: Xilinx K.K. • Tokyo, Japan Telephone: (81) (3) 3297-9191

Europe: Xilinx Ltd. • Surrey, United Kingdom Telephone: (44) (1932) 349401

Asia-Pacific: Xilinx Asia-Pacific Ltd. • Kwai Fong, Hong Kong Telephone: (852) 2424-5200

Financial History ($M), Fiscal Year Ends March 31

1993 1994 1995 1996 1997 1998 Sales 178 256 355 561 568 614 Net Income 27 41 59 102 110 127 R&D Expenditures 24 34 45 65 71 80 Foundry Fab Investment — — — 34 35 91

Employees 544 689 868 1,201 1,500 1,393

Company Overview and Strategy

Founded in 1984, Xilinx (NASDAQ: XLNX) is the leading innovator of complete programmable logic solutions. Xilinx develops, manufactures and markets a broad line of advanced integrated circuits, including field programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs). Xilinx is currently the world’s largest supplier of FPGAs.

2-513 Xilinx North American Company Profiles

The company also offers software design tools, predefined system-level functions delivered as cores, and masked programmed HardWire™ devices that are functionally equivalent and pin compatible with programmed FPGAs. Markets for Xilinx products include data processing, telecommunications, networking, industrial control, instrumentation, consumer, military and aerospace.

In February 1997, Xilinx unveiled its five year product roadmap that called for an aggressive adoption of the most advanced semiconductor manufacturing processes. By mid-1997, Xilinx began shipping the industry’s first family 0.35 micron 3.3 volt FPGAs — the 10-member XC4000XL family — offering densities ranging from 5,000 to 180,000 system gates. Later the same year, Xilinx began sampling the XC40125XV, first 0.25 micron 2.5 volt FPGA with 250,000 system gates of logic. The XC4000XV family consists of four devices offering up to 500,000 system gates of logic.

Also in 1997, Xilinx announced the architecture of its new Virtex series of FPGAs, which will offer up to 1 million gates of system logic and begin sampling in the second half of 1998. Virtex, with a 2.5 volt supply of voltage, features the SelectI/O that can simultaneously support low-voltage standards such as LVTTL, LVCMOS, GTL+, and SSTL3. Virtex also offers a hierarchy of RAM — on chip distributed and block memory and high speed access to off-chip RAM. Virtex will begin sampling in 2H98.

In January 1998, Xilinx introduced the Spartan Series of FPGAs. These devices are targeted as gate array replacements for low-cost designs under 40,000 system gates which require on-chip RAM and can benefit from pre-defined software cores.

Management

Bernard V. Vonderschmitt Chairman Willem P. Roelandts President and Chief Executive Officer R. Scott Brown Senior Vice President, Worldwide Sales Gordon M. Steel Senior Vice President, Finance, and Chief Financial Officer Richard W. Sevcik Senior Vice President, Software William S. Carter Vice President and Chief Technical Officer Charles A. Fox Vice President and GM, HardWire Business Unit Steve Haynes Vice President, North American Sales Robert C. Hinckley Vice President, Strategic Plans and Programs, and Secretary

2-514 North American Company Profiles Xilinx

Randy Ong Vice President, Operations Dennis L. Segers Vice President, FPGA Product Development Sandra L. Sully Vice President and Chief Information Officer Christine C. Taylor Vice President, Human Resources Roland Triffaux Vice President, European Sales and Marketing Sandeep Vij Vice President, Marketing Evert A. Wolsheimer Vice President and GM, CPLD Business Unit Roman Iwanczuk Director, Cores Solutions Group Scott Lewis Director, CPLD Marketing

Products and Processes

Xilinx’s product line consists of FPGAs, HardWire Array products, EPROMs for external storage of FPGA configuration programs, CPLDs, design and implementation software tools and cores. Its FPGA products are manufactured using CMOS technology, with the most advanced chips utilizing 0.35µm and 0.25µm processes.

FPGA Products XC2000 family — Being discontinued. XC3000 family — General-purpose architecture with usable gate densities ranging from 1,500 to 7,500 gates. The older XC3000-70 and XC3000A products are being discontinued. XC4000 family — The company’s most successful FPGA architecture. The family consists of 15 SRAM-based members ranging in density from 3,000 to 500,000 logic gates. The older XC4000A and XC4000H sub-families are being discontinued. At the high end, Xilinx offers the XC4000EX, XC4000XL sub-families and XC4000XV. Introduced in early 1997, the XC4000XL series features high-performance 3.3V operation through the use of a 0.35µm CMOS process. The XC4000XV, offering up to 500,000 logic gates, began sampling in late 1997. XC5200 family — With a process-optimized architecture, the XC5200 parts are the first FPGAs specifically developed as a cost effective, high volume production alternative to gate arrays. Spartan family — Low-cost FPGAs featuring on-chip RAM and support for a wide variety of cores. Versions operating at 5 volts began shipping in volume in January 1998; 3.3 versions go into production in 3Q98.

HardWire Array Products The company’s HardWire process converts a Xilinx FPGA into a HardWire mask-programmed array offering quick time-to-market and a reduction in cost. For every Xilinx FPGA family, there is a corresponding HardWire family. In 1997, Xilinx expanded its HardWire product offerings with the addition of a PCI+ conversion device featuring full PCI compliance and up to 10,000 gates of customer specific logic.

CPLD Products XC9500 family — Volume production of these flash memory-based CPLDs began in January 1997. The XC9500 devices features in-system programmability with more than 10,000 program/erase cycles, 36 to 288 macrocells with 800 to 12,800 usable gates, and pin-to-pin delays as low as 5ns. Xilinx expects to migrate the family from a 5V 0.6µm process to a 3.3V 0.5µm process in 3Q98.

2-515 Xilinx North American Company Profiles

New Software In 1997, Xilinx introduced new versions of its two lines of design and implementation software. Alliance Series integrated with leading third-party front end EDA tools from vendors such as Cadence, Exemplar, , Model Technology, Synopsys and Synplicity. Foundation Series is a family of a fully integrated, ready- to-use Windows NT and Window 95 PC tools with built-in synthesis support that support FPGAs and CPLDs. Available at low price points and targeted at entry-level users, Foundation Series products leverage industry standard hardware description languages.

Xilinx also offers more than 75 different predefined cores to implement system-level functions — DSP algorithms, bus interfaces, processors and peripheral interfaces — directly in Xilinx devices. These cores, available from Xilinx and third-party partners, allow designers to cut design time and reduce risk while having access to the best performing and lowest cost components available. In March 1998, Xilinx announced the CORE Generator, an easy to use tool that delivers parameter-based cores and features an interface third-party system level DSP design tool.

Semiconductor Fabrication Facilities

Xilinx does not fabricate its own ICs, but has foundry agreements with Seiko Epson, Yamaha, and UMC.

Key Agreements

• In June 1997, Xilinx and Synopsys established an exclusive partnership enabling Xilinx to incorporate Synopsys’ FPGA Express technology into the Xilinx Foundation Series.

2-516 North American Company Profiles Zilog

ZILOG

Zilog, Inc. 210 East Hacienda Avenue Campbell, California 95008-6600 Telephone: (408) 370-8000 Fax: (408) 370-8056 Web Site: www.zilog.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Zilog, Inc. • Tokyo, Japan Telephone: (81) (3) 5272-0230

Europe: Zilog, Inc. • Maidenhead, United Kingdom Telephone: (44) (1628) 392-00

Asia-Pacific: Zilog, Inc. • Taipei, Taiwan Telephone: (886) (2) 741-3125

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 146 203 223 265 298 261 Net Income 16 27 35 43 30 12 R&D Expenditures 16 21 23 25 31 30 Capital Expenditures 27 40 69 79 117 38

Employees 1,400 1,500 1,500 1,575 1,650 1,650

Company Overview and Strategy

Zilog was founded in 1974 and became a wholly owned subsidiary of Exxon by 1981. In 1985, the company rechartered its course to focus on application-specific market segments. In 1989, Zilog's management, employees, and a venture capitalist purchased the company from Exxon. Zilog became a public company in February 1991. In 1998, the company was purchased by Texas Pacific Group and taken private.

Zilog is a leader in the development, design, and manufacture of application specific standard products (ASSPs) for the consumer electronics, data communications, and computer peripheral markets. The company utilizes its Superintegration™ design methodology to combine cores and cells from its extensive library of microprocessors and controllers, DSPs, and memory and logic circuits.

2-517 Zilog North American Company Profiles

Zilog maintains its strategy of addressing the needs of specific applications by utilizing its proprietary core and cell designs, which are optimized for particular applications, to design and develop new products within its target markets. During 1997, Zilog introduced 36 new products.

Management

Curtis J. Crawford President and Chief Executive Officer Michael J. Bradshaw Senior Vice President, Worldwide Operations Thomas C. Carson Senior Vice President, Worldwide Sales Richard L. Moore Senior Vice President, Technology Sally M. Baumwell Vice President, Human Resources Robert E. Collins Vice President and Chief Financial Officer James J. Magill Vice President and General Manager, Data Communications Richard R. Pickard Vice President, General Counsel Alan Secor Vice President, Consumer/Peripherals

Products and Processes

Zilog's core library includes 8-bit microcontrollers, 8-bit, 16-bit, and 32-bit microprocessors, 16-bit digital signal processors, serial communications controllers, and peripheral circuits. These cores are available as stand-alone devices or may be combined in Superintegration products. The company’s cell library consists of logic and memory circuits that are generally combined in Superintegration products.

The Superintegration library and diverse product portfolio of over 700 items serve three distinct markets: data communications, consumer electronics, and computer peripheral products.

• For data communications applications, Zilog offers ASSPs based on its Z80 microprocessor family and serial communications controllers. These ASSPs are optimized for Ethernet routers, bridges, data switches, modems, terminals, printers, workstations, local area networks, and wide area networks. The company holds a leadership position in general purpose, multiprotocol controllers for the LAN and WAN markets.

2-518 North American Company Profiles Zilog

• Based on the Z8® 8-bit microcontroller, Zilog offers a family of controllers for use in consumer electronics products such as cellular phones, audiovisual equipment, automobiles, telephone answering machines, household appliances, battery chargers, garage door openers, security systems, set-top boxes, interactive TVs, and infrared remote controls.

• Zilog is an innovator in the addition of intelligence to computer peripheral chips using its line of Z80® 8-bit, Z180® 16-bit, and Z380® 32-bit microprocessors, and peripheral circuits. Adding intelligence to computer peripherals frees the central processor from micro-management tasks and upgrades the performance of the system. Common peripherals are printers, keyboards, monitors, pointing devices, hard disk and floppy disk controllers, modems, and PCMCIA bus interface products.

Semiconductor Fabrication Facilities

Zilog, Inc. Zilog, Inc. 2601 11th Avenue, North Extension 1401 North King Road Nampa, Idaho 83651 Nampa, Idaho 83651 Telephone: (208) 466-4551 Module III Fax: (208) 467-9765 Cleanroom size: 30,000 square-feet (Class 1) Modules I and II Capacity (wafers/week): 2,500 Cleanroom size: 77,000 square feet (Class 10) Wafer size: 200mm Capacity (wafers/week): 7,000 Process: CMOS Wafer sizes: 100mm, 125mm Products: ASSPs, MCUs, MPUs, DSPs Processes: NMOS, CMOS, BiCMOS Feature sizes: 0.35µm 0.6µm, 0.8µm Products: ASSPs, MCUs, MPUs, DSPs Feature sizes: 0.6µm, 0.8µm, 1.0µm, 1.2µm

2-519 Zoran North American Company Profiles

ZORAN

Zoran Corporation 3112 Scott Boulevard Santa Clara, California 95054 Telephone: (408) 919-4111 Fax: (408) 919-4122 Web Site: www.zoran.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Israel: Zoran Microelectronics Ltd. • Haifa, Israel Telephone: (972) (4) 854-5777 • Fax: (972) (4) 855-1550

Canada: Zoran Toronto Lab • Toronto, Ontario, Canada Telephone: (416) 690-3356 • Fax : (416) 690-3363

Japan: Zoran Japan • Tokyo, Japan Telephone: (81) (03) 5352-0971 • Fax: (81) (03) 5352-0972

Financial History ($M), Fiscal Year Ends December 31

1992 1993 1994 1995 1996 1997 Sales 7 5 8 23 44 45 Net Income (3) (8) (5) 1 2 4.2 R&D Expenditures 5 5 4 6 9 14

Employees — — — 75 135 150

Company Overview and Strategy

Zoran Corporation (NASDAQ: ZRAN), first incorporated in 1981, and reincorporated in 1986, develops and markets integrated circuits and software for digital video and audio compression and decompression applications. The company’s ICs are used in a wide variety of products, such as professional and consumer video editing systems, PC-based and stand-alone video CD systems, DVD players, digital audio systems, filmless digital cameras, and printers/scanners.

Prior to 1991, Zoran derived the substantial majority of its revenues from digital filter processors (DFPs) and vector signal processors (VSPs), which are DSP-based ICs used for image enhancement and processing, principally in military, industrial, and medical applications. In 1989, the company repositioned its business to utilize its expertise in DSP technology to develop and market video and audio compression circuits. In mid-1994, Zoran discontinued DFP and VSP product lines.

2-520 North American Company Profiles Zoran

Zoran has a strong core expertise in DSP technology, including digital filtering and frequency domain processing. Its strategy centers on building partnerships with innovative marketing and manufacturing companies and targeting high-volume, high-performance applications, such as multimedia computing and consumer video and audio systems.

In October 1996, Zoran entered the software compression market through its acquisition of CompCore Multimedia, Inc., a leading provider of digital audio and video MPEG-1 and MPEG-2 decoding technologies and products. The acquisition has broadened Zoran’s product offering to include MPEG cores and software compression products particularly for the PC-based DVD market.

Management

Uzia Galill Chairman Levy Gerzberg, Ph.D. President and Chief Executive Officer, and acting Chief Financial Officer Paul Goldberg Vice President, Business Solutions Isaac Shenberg Vice President, Sales and Marketing Alexander Sinar Vice President, Operations Aharon Aharon Vice President, Engineering Sorin Cismas Chief Scientist

Products and Processes

Zoran’s IC products include JPEG codecs, MPEG video decoders, Dolby AC-3 and MPEG audio decoders, and PCI multimedia controllers. The company is the leading supplier of JPEG ICs and support devices for the consumer and PC markets.

Additionally, Zoran is the leading supplier of Dolby Digital (AC-3) devices. Its third-generation Dolby AC-3/MPEG-2 digital audio processor was introduced in late 1996. The ZR38600 processor uses only 75 percent of the processor’s power for audio decoding, leaving the remaining 25 percent available for product differentiation. The device is targeted at home theater, DVD, and consumer multimedia applications. In 1998, Zoran announced the industry’s first virtual 3-D Audio Reference design using their ZR38600 digital audio processor.

Most of Zoran’s devices are fabricated using 0.6µm and 0.8µm CMOS technologies.

2-521 Zoran North American Company Profiles

Semiconductor Fabrication Facilities

For the fabrication of its wafers, Zoran has foundry agreements with Fujifilm Microdevices, Motorola, TSMC, and Tower Semiconductor.

Key Agreements

• In February 1998, Zoran Corporation announced licensing agreements with ten industry-leading graphic accelerator companies to deliver high-performance DVD software decoding for the multimedia PC. The ten companies have licensed the motion compensation VLSI core from Zoran and are in the process of integrating it into their future graphics accelerator products. In addition, Zoran is collaborating with several VGA chip manufacturers to adapt SoftDVD to the VGA companies’ independently-developed motion compensation designs. (Some participants of the agreement are: IX Micro, NVIDIA, Silicon Motion, ATI Technologies, Fujitsu, Rendition, and S3).

• In February 1998, Zoran Corporation announced a new daughter card reference design. The new Vaddis4VMI™ daughter card reference design adds Plug-in DVD capabilities to Intel’s new Intel740 graphics chip.

• In January 1998, Zoran Corporation and Altec Lansing Technologies, Inc. announced a strategic alliance combining their resources to develop audio products incorporating the Zoran ZR38600 Digital Audio Signal Processor. Altec Lansing will apply this technology in the development of a new family of products featuring affordable Dolby® Digital AC3 surround sound audio reproduction systems.

• In December 1997, Zoran announced that its Vaddis, DVD decoder IC was shipping to Sharp Corporation for its new line of compact DVD players.

• In November 1997, Zoran announced an alliance with Iomega Corporation to deliver revolutionary, low-cost, portable digital photography solutions.

• IBM Corporation chose Zoran’s Soft DVD Navigator to be included in their “Extreme Performance” ThinkPad 770 notebook computers.

• In late 1996, Zoran announced an agreement with Toshiba which stated that Toshiba would use Zoran’s Dolby digital two-channel AC-3/MPEG audio processor in a DVD chipset.

• In 1995, Zoran signed a four-year agreement with Tower Semiconductor under which Tower will supply specified quantities of wafers to Zoran.

• Siemens and Zoran announced in 1995 they would collaborate on the development and marketing of multimedia ICs for PC and consumer electronics applications.

• Dolby Laboratories formed a long-term joint technology partnership with Zoran in August 1992. The partnership involves the development of low-cost ICs for multi-channel digital audio for motion-picture soundtracks and consumer media.

2-522 North American Company Profiles Zoran

• Zoran has the marketing rights to JPEG chips produced by the company’s Japanese partner, Fujifilm.

• Zoran and Intel Corporation announced, in October 1997, a licensing agreement which includes software which Intel has optimized for MMX technology.

2-523