Company Profiles, 1987-1990
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Semiconductor User Inforaiation Service Company Profiles Dataquest a company of M The Dun & Bradstieet Corporation 1290 RJddo- Park Drive San Jose, Califorma 95131-2398 (408) 437-8000 Telex: 171973 Fax: (408) 437-0292 Sales/Service OfBces: XJNITED KINGDOM FRANCE EASTERN U.S. Dataquest UK Lunited Dataquest SARL Dataquest Boston Roussel House, Tour Gallieni 2 1740 Massachusetts Ave. Broadwater Park 36, avenue Gallieni Boxborough, MA 01719-2209 Denham, Uxbridge, Middx UB9 5HP 93175 Bagnolet Cedex (508) 264-4373 England France Ifelex: 171973 0895-835050 (1)48 97 31 00 Fax: (508) 635-0183 Tfeles: 266195 Ifelex: 233 263 Fax: 0895 835260-1-2 Fax: (1)48 97 34 00 GERMANY JAPAN KOREA Dataquest GmbH Dataquest J^an, Ltd. Dataquest Korea Rosenkavalierplatz 17 Ikiyo Ginza Building/2nd Floor Daeheung Bldg. 505 D-8000 Munich 81 7-14-16 Ginza, Clwo-ku 648-23 Yeoksam-dong ^^fest GermaiQr Tbkyo 104 Japan Kangnam-gu, Seoul 135 Korea (089)91 10 64 (03)546-3191 011-82-2-552-2332 Ifelex: 5218070 Ifelex: 32768 Fax: 011-82-2-552-2661 Fax: (089)91 21 89 Fax: (03)546-3198 The content of this report repr^ents our interpretation and analysis of information generally avail able to the public or released by responsible individuals in the subject companies, but is not guaranteed as to accuracy or conq)leteness. It does not contain mat^ial provided to us in confidence by our clients. This information is not furnished in connectiai with a sale or offer to sell securities, or in coimec- tion with the solidtaticm of an offer to buy securities. This firm and its parent and/or their officers, stockholders, or members of their femilies may, from time to time, have a long or short position in the securities mentioned and may sell or buy such securities. Printed in the United States of America. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems, or transmitted, in ai^ form or by aiiy means—mechanical, electronic, photocqjying, duplicating, microfilming, videotape, or otherwise—without the prior written permission of the {nibli^ier. © 1990 Dataquest Incorporated Company Profiles IHTRODUCTION This section of Volume II contains specific information on individual semiconductor manufacturers. The company profiles that form the main part of the volume are filed alphabetically by company name behind the appropriate tabs. COMPANY PROFILES Each company profile in the main body of the volume discusses the following kinds of information: • Overview—General description of the company; number of employees; highlights of the company for the year; major shareholders • Operations—The divisions of the company; revenue by lines of business; semiconductor revenue as a percent of total revenue; international activities; the company's facilities and their locations • Capital spending and research and development spending—Capital and RSD spending as a percent of revenue; recent developments; special focus of efforts • Semiconductor activities—Main product areas, main product families; recent product introductions; cross licensing and second-source agreements • Nonsemiconductor products summary—Brief description of the other divisions of the company; impact, if any, of the other divisions on the semiconductor division (e.g., in-house use of products) Wherever possible, we include a financial synopsis for publicly held companies, as well as our estimates of the company's revenue from major categories of semiconductor sales. SUIS Companies © 1987 Dataguest Incorporated August Altera Corporation Altera Corporation 3525 Monroe Street Santa Clara, California 95051 Telephone: (408) 984-2800 (Altera Corporation is a privately held company; therefore, balance sheet and income statement data are unavailable.) SUIS Companies © 1987 Dataquest Incorporated October Altera Corporation THE COMPAHY Overview Altera Corporation was founded in June 1983 to design, manufacture, and market user-configurable CMOS electrically programmable logic devices (EPLDs) and computer-aided development tools. It was founded by Robert Hartmann, Michael Magranet, and Paul Newhagen, all formerly with Source III, Inc., and by Dr. James Sansbury, formerly with Hewlett-Packard Company. Altera Corporation was the first company to introduce EPLDs and intends to design and produce a wide variety of user-configurable integrated circuits. The Company develops EPLDs to provide an alternative to gate arrays for the replacement of TTL and CMOS SSI/MSI devices. EPLDs are distinguished from such devices by their ability to be programmed by the user at the user's facility. EPLDs offer benefits of reprogrammability, low power consumption, and significantly higher density over older bipolar PLDs. Long-Term Outlook Altera Corporation has thus far been a successful CMOS PLD supplier and is positioned as the number one CMOS supplier. As a result of its recent agreement with WaferScale Integration, Altera expects to develop more PLD products in order to sustain market leadership. Altera and other PLD suppliers face several critical issues. One such issue is the rumblings of emerging Japanese suppliers. With their wide experience in EPROM technology and EEPROM technology and with superb business skills, the Japanese could pose a threat to today's North American PLD suppliers. Monolithic Memories (MMI) is aggressively struggling to maintain its market position. In December 1986, it brought suit against two CMOS suppliers—Altera Corporation and Lattice Semiconductor. MMI charged Altera with patent infringement. In April 1987, Altera and MMI settled the patent infringement suit and agreed to license each other under certain patents in the programmable logic arena. SUIS Companies © 1987 Dataquest Incorporated October Altera Corporation Management and Employees Altera currently employs 110 people. The Company's executives are listed in Table 1. Table 1 Altera Corporation COMPANY EXECUTIVES Position Name Prior Company Prior Position President Rodney Smith Fairchild GM/Linear Div. VP Marketing David A. Laws AMD VP Bus. Dev. VP Finance Paul Newhagen Source III Controller/CFO VP Sales John Duffy Fairchild VP Sales/Mktg. VP Technology James Sansbury Hewlett-Packard Producton Mgr. VP/IC Engr. Robert F. Hartmann Source III President VP Software Engr. Clive McCarthy Fairchild Mktg. Mgr./Linear Div. Bipin Shah VP Operations Fairchild Analog Prod. Line Mgr. Source: Altera Corporation October 1987 1987 Dataquest Incorporated October SUIS Companies Altera Corporation Financial Information Altera Corporation has received four rounds of funding totaling $27.9 million, as shown in Table 2. Table 2 Altera Corporation SOURCES OF FUNDING AS OF JANUARY 1987 (Millions of Dollars) Date E&und Sources Amount June 1983 Sound 1 Alpha Partners $ 1.3 April 1984 Sound 2 Allstate Investments; Cable 6.0 and Howse; F. Eberstadt & Fleming; John F. Shea; Technology Venture Investors; Welsh, Carson, Anderson & Stowe Venture Growth Associates Lease Bank of America 2.0 March 1985 Sound 3 Original investors; Analog 9.9 Devices Ent.; Citibank N.A.; Demuth, Folger, & Terhune Venture Capital; Institutional Venture Partners; Parker Drilling Company Lease Bank of America 2.0 May 1986 Sound 4 European Investors 5.0 Lease Bank of America 1.7 $27.9 Source: Dataquest October 1987 SUIS Companies © 1987 Dataguest Incorporated October Altera Corporation PRODUCTS AMD MARKETS Semiconductor Product Markets Altera developed the first complementary metal oxide semiconductor (CMOS), ultraviolet erasable (UV-erasable), reprogrammable logic device. It also developed engineering development tools that are easy to use and understand. By combining CMOS and EPROM technology to implement logic, user programmability and low power consumption are achieved. With Altera EPLDs and advanced development tools based on IBM PCs, system designers can have the best of both worlds: a standard, off-the-shelf product and a custom LSI. Table 3 shows the estimated revenue for Altera Corporation. Table 3 Altera Corporation ESTIMATED REVENUE (Millions of Dollars) 1984 1985 1986 Total CMOS 0.2 3.9 12.0 EPLD 0.2 3.9 12.0 Source: Dataguest October 1987 Altera's approach is to target the semicustom IC market by offering a product that solves many of the existing problems associated with current application-specific integrated circuit (ASIC) techniques. The Company intends to eliminate a portion of the cost element associated with existing semicustom alternatives. Altera is taking advantage of its ability to improve CAD tools and is offering a device that eliminates considerable engineering interface, long development cycles, nonrecurring engineering costs, and dedicated inventory. Competition Figure 1 shows the top five 1986 competitors in the CMOS PLD market. Note that two of these suppliers are young start-up companies. In the future, market share per company could change dramatically. © 1987 Dataquest Incorporated October SUIS Companies Altera Corporation Figure 1 ESTIMATED 1986 WORLDWIDE PROGHAMMi^LE LOGIC DEVICE SHIPMENTS—CMOS Altera BSS^^S^^S^S^^^^^ S12.0 Monolithic Memories fci<^M»S&Sa «.o Xilinx i^::^:SS5S^ $4.0 Harris Semiconductor ^^^- 5 Intel Corporation v^S^-^:^^ $3.0 6 8 10 12 14 Millions of Dollars Source; Dalaquesc Ociober 19S7 Application and End-Use Markets EPLDs are purchased for five market segments: electronic data processing, communication, industrial, military, and constimer. The customers for these devices require low power consumption and quick turnaround time. Semiconductor Products and Technologies Technolocry and Manufacturing Altera's facility now occupies