European Semiconductor Industry Service (ESIS) Have Received This Data As a Loose-Leaf Service Section to Be Filed in Their Binder Set

DataQuest a company of MThe Dun & Bradstreet Corporation

7th April

Dear Client, NEW FORMAT—MARKET SHARE DATA Dataquest's Eviropean Components Group completed preliminary 1988 European semiconductor market share estimates, which are enclosed herein. In the past, clients of the European Semiconductor Industry Service (ESIS) have received this data as a loose-leaf service section to be filed in their binder set. For your convenience we are now publishing this data in the form of a booklet. This booklet can still be filed as before, but offers much greater ease of use "on the move". We have also presented the market share estimates in a ranked format, rather than in alphabetical format, for your ease in comparing of vendors' market positions in different products and technologies. The previous year's rank is also shown for reference. Extra analysis is given, such as percentage market share for each vendor, for further ease in interpreting the estimates. We hope this helps make our estimates more usefuL to you. We would be interested in your comments regarding this new format.

Yours sincerely %Y^^ • Bypon Harding Research Analyst European Components Group.

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The content of this report represents 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 completeness. It does not contain material provided to us in confidence by our clients.

This information is not fiimished in connection with a sale or offer to sell securities, or in connec tion with the solicitation of an offer to buy securities. This firm and its parent and/or their officers, stockholders, or mdinbers of their families may, from time to time, have a long or short position in the securities mentioned and may sell or buy such securities.

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Introduction to the Service

EUROPEAN SEMICONDUCTOR INDUSTRY SERVICE Dataquest's European Semiconductor Industry Service (ESIS) is a comprehensive information service covering the European semiconductor industry. It is a product-oriented, executive-level perspective intended to assist with strategic decisions of key executives and product managers of semiconductor manufacturing companies, suppliers to the semiconductor industry, semiconductor users, and other businesses or institutions interested in the semiconductor industry. The service consists of the following: • Data-base reference notebooks containing sections that are continually revised and updated as developments occur or additional information becomes available Research newsletters and bulletins on current industry issues and events An inquiry service providing access to Dataquest's European Components Group Client Inquiry Center and access to the European Components Group Research Staff The IC Europe monthly report, providing timely information on European high-technology industries and 1992 An annual conference in Europe, with industry experts discussing developments of current interest and importance Access to Dataquest's semiconductor on-line information service and The PQ Monday Report, providing pricing and lead-time updates Access to Dataquest's European semiconductor library resources

SERVICE STRUCTURE The service analyzes and reports on the products, markets, and major companies in the semiconductor industry in Europe as a whole and in individual countries. The service does the following: • Provides semiconductor consumption forecasts in the following ways: By product technology By product function By application market—includes data processing, communications, industrial, military, consumer, and transportation

• Analyzes European semiconductor markets for the following regions: Benelux—includes Belgium, Luxembourg, and the Netherlands France Italy Scandinavia—includes Denmark, Finland, Norway, and Sweden United Kingdom and Ireland West Germany Rest of Europe—includes Austria, Portugal, Spain, and Switzerland • Identifies services and suppliers to the European semiconductor industry • Analyzes the forces affecting the European semiconductor market, such as: Supply and demand Technological developments - Economic issues Government policies Distribution

SERVICE ORGANIZATION

Volume I Volume I contains separate sections for each of the European geographical regions covered by the service, and each regional section covers the following topics: • Overview—discussion of the economic environment • Semiconductor Device Markets—analysis of the local markets by technology and function

• Application Markets—analysis of local application markets for semiconductors in data processing, communications, industrial, consumer, military, and transportation sectors • Plant Locations—manufacturing locations by company within the region • Design Center Locations—semiconductor design center locations by company for the region

Volume n Volume n, which discusses Europe as a whole, is divided into the following topics: European Overview—covers analysis of trends in capital and research and development expenditures, venture capital, and government and private investment; discusses the European economic environment and channels of distribution Semiconductor Device Markets—analyzes the European market for integrated circuits, discrete devices, and optoelectronics, by technology and function Semiconductor Application Markets—analyzes the European application markets for semiconductors in data processing, communications, industrial, consumer, military, and transportation sectors Major Users—analyzes the major semiconductor users in Europe Services and Suppliers to the Semiconductor Industry—identifies the key services and suppliers to the European semiconductor industry: assembly services, capital equipment suppliers, design services, materials suppliers, testing services, and wafer fabrication services Memory—analyzes the European memory semiconductor markets Microcomponents—analyzes the European microcontroller, microprocessor, and microperipheral markets

Volume m Volume ni, which contains the company-related data, is divided into the following topics: • European Plant Locations—lists the plant locations for all major semiconductor manufacturers

• European Design Center Locations—lists the design center locations for worldwide semiconductor companies in Europe • European Semiconductor Production—analyzes wafer fabrication in Europe • Company Profiles—profiles selected companies active in Europe Also included in Volume III are Dataquest's Market Share Estimates, which consist of the following: • Worldwide market shares of European companies • European market shares of: European companies U.S. companies Japanese companies Rest of World companies

Other Components The ASIC binder contains quantitative and qualitative analyses of the European gate array, cell-based IC, programmable logic, and full-custom businesses. IC Europe is a monthly report on European high-technology industry. It covers a monthly update to the status of the industry, industry highlights, research update, semiconductor pricing and analysis, a thought for the month, and a monthly update on events leading up to 1992. The Newsletters 1988-89 binder contains industry newsletters and bulletins devoted to current topics of specific European interest. In addition, Volumes I, II, and III contain yearly exchange rate tables. The quarterly exchange rate newsletter may be found in the newsletter volume.

SERVICE FEATURES AND PROCEDURES Service Sections The document preparation date is shown at the bottom of each page. Sections are updated on a regular basis, and filing instructions are sent with the new updates.

Newsletters Newsletters are published regularly throughout the year and should be filed in the latest newsletter volume. The newsletters provide executive summaries of key industry events and serve to underscore significant changes in the reference material presented in the data-base notebooks. In addition, newsletters of an analytical nature are published periodically on a variety of topics not regularly covered in the service. Inquiry Privilege There are two forms of inquiry available to the client: access to Dataquest's European Semiconductor Inquiry Center and access to the ESIS semiconductor staff. The registered binderholder has the privilege of direct access to the Inquiry Center, where the staff provides assistance in finding and interpreting material in the data notebooks or other Dataquest-published material. In addition, binderholders have access to the European Semiconductor Industry Service research staff; this privilege allows the client to seek additional commentary on or clarification of the published material, although it is not intended to provide individualized custom research. Using this feature of the service, clients may interact with industry experts on a one-to-one basis to discuss attitudes and opinions about topics covered in the service.

Annual Conference Each year Dataquest's European Semiconductor Industry Service hosts a two-day conference. In this forum, leading experts and decision makers throughout the industry share their views on the future and on critical external issues affecting the growth of the European semiconductor business. The conference allows executive-to-executive communication about important topics through formal presentations, workshops, and informal discussion periods.

Dataquest's Library Services Dataquest's library services offer comprehensive secondary research materials covering the full spectrum of high-technology companies, markets, and industries tracked by Dataquest.

Semiconductor On-Line Information All our clients receive ESIS On-line and the DO Mondav Report as part of the service. The ESIS On-line service holds the ESIS data base, enabling clients receive immediate updates to the data base. The DO Mondav Report gives updates of prices and lead times for 25 selected semiconductor devices. Prices are reported for the United States, Europe, Japan, Taiwan, Hong Kong, and Korea for IK, lOK, and contract quantities.

PRODUCT TECHNOLOGY DEFINITIONS Dataquest divides the total semiconductor market into integrated circuits, discrete devices, and optoelectronic devices. These categories are further segmented as shown on the following pages.

Integrated Circuits (ICs) ICs include bipolar devices, MOS devices, and analog devices, broken down as follows: • Bipolar—bipolar memory, bipolar logic Bipolar Memory—ECL RAM, ROM, PROM, flip-flops, latches, register files, shift registers Bipolar Logic—bipolar ASIC, bipolar standard logic, bipolar other logic Bipolar ASIC—includes gate arrays, PLDs (programmable logic devices), CBICs (cell-based ICs) and full-custom Bipolar standard logic—includes TTL, ECL, and other family logic, as well as TTL-compatible SSI, MSI, LSI; CML, ECL. I2L, ISL, STL with TTL levels; standard, AS, FAST, LS, ALS lines; ECL-compatible SSI, MSI, LSI; RTL and DTL Bipolar other logic—includes ASSPs (application-specific standard products), bipolar bit-slice (e.g., 2900, 29300 families), ALU, control unit, multiplier, floating point, digital filters; also includes bipolar support chips and chip sets for MPUs • MOS—MOS memory, MOS microcomponents, MOS logic MOS Memory—DRAM, SRAM, ROM/other DRAM—Dynamic RAM SRAM—Static RAM ROM/other—includes ROM, PROM, EPROM, EEPROM, flip-flops, latches, register files, shift registers MOS Microcomponents—MOS microprocessor, MOS microcontroller, MOS microperipheral, DSP

Microprocessor (MPU)—includes all microprocessors such as Intel X86 family, Motorola 68XXX family, RISC Microcontroller (MCU)—includes single-chip controllers such as Intel 8051 and Motorola 68HC05 Microperipheral (MPR)—includes MPU support chips used in system support (e.g., timer, intemipt control, DMA, MMU), peripheral controllers (e.g., disk, graphics display, CRT, keyboard), communications controllers (e.g., UART); also includes MOS chip sets for MPU support, LAN coprocessors, accelerator coprocessors (e.g., floating-point unit, graphics coprocessor, image processor) Digital signal processor (DSP)—includes single-chip DSPs, MOS bit-slice, ALC, mulipliers, accumulators, and digital filters MOS Logic—MOS ASIC, MOS standard logic, MOS other logic MOS ASIC—includes gate arrays, PLDs (programmable logic devices), CBICs (cell-based ICs), and full-custom MOS standard logic—includes MOS family logic such as HC, HCT, and FACT lines MOS other logic—includes application-specific standard products (ASSPs) (e.g., motor control ICs); also MOS ALC, MAC, digital filters, and other building blocks Analog (linear)—monolithic, general-purpose, specialty-purpose, analog ASIC, hybrid Monolithic—includes bipolar and MOS monolithic linear ICs with more than 50 percent analog circuits by area on the die General-purpose—includes input/ouput and power applications Specialty-purpose—includes telecommimications and consumer applications Analog ASIC—includes linear arrays, linear CBIC, and linear full-custom Hybrid—includes hybrid packages sold by semiconductor vendors, used mostly in linear applications

Discrete Devices Discrete devices include transistor, diode, thyristor, and other discrete devices, as follows: • Transistor—includes small signal and power transistors, and field effect transistors (FET) • Diode—includes small signal and power diodes, Zener diodes, and rectifiers • Thyristors—includes all unidirectional and bidirectional thyristors • Other discrete—includes tunnel and varactor diodes, microwave diodes, and other polycrystalline devices optoelectronic Devices Optoelectronic devices include light-emitting diodes (LEDs), infrared lamps, LED displays, laser devices, optoelectronic couplers, and sensors (photo diodes, selenium rectifiers, solar cells). They exclude LCD displays and incandescent and fluorescent lamps and displays.

APPLICATION MARKET DEFINTTIONS Dataquest segments and defines the semiconductor application markets as follows: • Data Processing—This includes all equipment whose main function is flexible information processing. Included in this segment are all personal computers, regardless of price, distribution, or use in the office, education, or home environment. • Communications—Within the communications market, Dataquest classifies telecommunications as a subsegment that consists of customer premises and public telecommunications equipment. The other communications categories include radio, studio, and broadcast equipment. • Industrial—The industrial segment includes all manufacturing-related equipment, including scientific, medical, and dedicated systems. • Consumer—This is equipment that is designed primarily for home or personal use, the primary function of which is not flexible information processing. Audio and video equipment and appliances are typical examples of equipment that is classified in the consumer application market.

• Military—Military electronic equipment is primarily defense-oriented electronic equipment and is classified by major budget area. It does not include all electronic equipment procured by the government because such a breakout would double-count equipment that logically belongs in other market segments. • Transportation—This segment consists mainly of automotive and light truck electronics. This designation leaves room to analyze other markets, such as off-highway equipment, that are potentially large users of semiconductors. Further definitions of these segments are included in the European Semiconductor Applications Market (ESAM) binder.

ABOUT DATAQUEST Dataquest's research covers an entire generation of high-technology industries, with a primary focus on the following six broad areas: Semiconductors Information systems Peripherals Office equipment Industrial automation Telecommunications Within these primary areas, Dataquest tracks and serves more than 25 separate industries. Dataquest provides a comprehensive line of products and services designed to meet the varying research and analysis needs of corporate decision makers. The products include the following: • Industry services similar in nature to the European Semiconductor Industry Service • Executive and Financial Programs—A series of business opportunity and technology advisory programs specifically designed for senior executives involved in high technology • Focus Reports—Highly detailed landmark publications on specific issues of topical interest

Newsletters—General overviews and analyses of specific industries or markets Product Specification Guides Who's Who Industry Guides Consultancy

DATAQUEST LOCATIONS The European Components Group (ECG) has its headquarters in our London office, and clients in Europe should address their inquiries to that office. ECG also maintains staff in our San Jose office, and inquiries from subscribers in the United States can be addressed there.

Dataquest Incorporated Dataquest Japan, Ltd. 1290 Ridder Park Drive Taiyo Ginza Building/2nd Fir San Jose, California 95131-2398 7-14-16 Ginza, Chou-ku USA Tokyo 104 Telephone: (408) 437-8000 Japan Telex: 171973 Telephone: (03)546 3191 Fax: (408)437-0292 Telex: J32768 Dataquest UK Ltd. Fax: (03)546 3198 103 New Oxford Street Dataquest SARL 13th Floor, Centrepoint Dataquest Intelligent Electronics London WCl AIDD Tour Gallieni United Kingdom Telephone: (01)379 6257 36, Avenue Gallieni Telex: 266195 93175 Bagnolet Cedex Fax: (01)240 3653 Y'TSXIOG Telephone: (1) 48 97 31 00 Telex: 233263 Dataquest GmbH Fax: (1)48 97 34 00 Roseiikavalierplatz D-8000 Munich 81 West Germany Telephone: (089) 91 1064 Telex: 5218070 Fax: (089) 91 2189

Table of Contents

Volume I

Tide Page INTRODUCTION' Introduction to the Service TABLE OF CONTENTS Table of Contents Newsletter Index 1. BENELUX 1.1 Benelux Overview 1.2 Benelux Semiconductor Device Markets 1.5 Benelux Plant Locations 1.6 Benelux Design Center Locations 2. FRANCE 2.1 France Overview 2.2 French Semiconductor Device Markets 2.5 French Plant Locations 2.6 French Design Center Locations 3. ITALY 3.1 Italy Overview 3.2 Italian Semiconductor Device Markets 3.5 Italian Plant Locations 3.6 Italian Design Center Locations 4. SCANDINAVIA 4.1 Scandinavia Overview 4.2 Scandinavian Semiconductor Device Markets 4.5 Scandinavian Plant Locations 4.6 Scandinavian Design Center Locations

'Titles in capital letters signify tabs.

Volume I (Continued)

5. UNITED KINGDOM AND IRELAND' 5.1 U.K. and Ireland Overview 5.2 U.K. and Irish Semiconductor Device Markets 5.5 U.K. and Irish Plant Locations 5.6 U.K. and Irish Design Center Locations 6. WEST GERMANY 6.1 West Germany Overview 6.2 West German Semiconductor Device Markets 6.5 West German Plant Locations 6.6 West German Design Center Locations 7. REST OF EUROPE 7.1 Rest of Europe Overview 7.2 Rest of Europe Semiconductor Device Markets 7.5 Rest of Europe Plant Locations 7.6 Rest of Europe Design Center Locations EXCHANGE RATE TABLES Exchange Rate Tables

Volume II

Title Page INTRODUCTION Introduction to the Service TABLE OF CONTENTS Table of Contents Newsletter Index

'Titles in u^tal letten rigniiy tabs.

Volume II (Continued)

1. EUROPEAN OVERVIEW 1.0 Capital Investment 1.1 R&D Investment 1.2 Venture Capital 1.3 Government and Private Investment 1.4 The European Economic Environment 1.5 Channel of Distribution 2. SEMICONDUCTOR DEVICE MARKETS European Semiconductor Consumption Estimates 1984-1994 by Product and Technology^ - Benelux - France - Italy - Scandinavia - U.K. and Ireland - West Germany - Rest of Europe 3. SEMICONDUCTOR END-USER MARKETS 3.0 Semiconductor End-User Markets 4. MAJOR USERS 4 Major Users 4.1 Electronic Equipment Company Revenue 4.2 User Company Profiles 5. SERVICES AND SUPPLIERS 5.0 Services and Suppliers to the Semiconductor Industry -Air Products and Chemicals, Inc. -Balzers -The BOC Group PLC -Compugraphic International -General Signal -LTX Corporation -MEMC Electronic Materials S.p.A. -Merck Group •'

'Titles in capital letten signify tabs. In bocddet format

Volume II (Continued)

5. SERVICES AND SUPPLIERS' (Continued) -Micro-Image Technology Ltd. -Monsanto Company -Olin Corporation -The Perkin-Elmer Corporation -Plasma Technology Ltd. -Teradyne Inc. -VG Instruments PLC -Wacker-Chemitronic GmbH 6.'

1.'

8.' 9. MEMORY European MOS Memory Market— Consumption Forecast 1988-1994, Market Share Rankings 1988' 10. MICROPROCESSOR 10.1 Microcomponent Device Market 10.2 Microcomponent Device Supply ECONOMIC DATA AND OUTLOOK Economic Outlook Update 1988-1990' Economic Data and Outlook 1988-1989' EXCHANGE RATE TABLES Exchange Rate Tables

'Titles in ciqntal letters sigmiy tabs. lo booklet fonuat In bSDSltlOQ

Volume III

Title Page

INTRODUCTION'

Introduction to the Service

TABLE OF CONTENTS

Table of Contents Newsletter Index

1. EUROPEAN PLANT LOCATIONS

1. European Plant Locations

2. EUROPEAN DESIGN CENTER LOCATIONS

2. European Design Service Locations

3. EUROPEAN SEMICONDUCTOR PRODUCTION

3. European Semiconductor Production 3.1 Wafer Fabrication

4. COMPANY PROFILES 4. Company Profiles A-B Advanced Micro Devices, Inc. Analog Devices, Inc. ASEA Brown Boveri • Austria Mikro Systeme International GmbH C-D E-F Ericsson Components AB European Silicon Structures Eurosil Electronic GmbH Fujitsu Limited

Titles in cs^ntal letteis sigmfy tabs.

Volume III (Continued)

4. COMPANY PROFILES' (Continued)

G-H General Instrument Corporation Harris Corporation Hewlett-Packard Company Hitachi ltd. I-J Intel Corporation ITT Corporation K-L LSI Logic Corporation M-N Marconi Electronic Devices Ltd. Matra-Harris Semiconducteurs Mitsubishi Electric Corporation Motorola, Inc. National Semiconductor Corporation NEC Corporation O-P N.V. Philips Gloeilampenfabrieken The Plessey Company PLC Q-R S-T Semikron International SGS-Thomson Microelectronics Siemens AG Telefunken Electronic GmbH Texas Instruments, Inc. Toshiba Corporation TRW, Inc. U-V w-x Y-Z Zilog, Inc.

'Titles in c^tal letters signify tabs.

Volume ni (Continued)

MARKET SHARE DATA' European Semiconductor Market Share Estimates—^Final 1988* Worldwide Semiconductor Market Shares by Vendor Base European Semiconductor Market Shares by Vendor Base Worldwide Semiconductor Market Share Rankings European Semiconductor Market Share Rankings EXCHANGE RATE TABLES Exchange Rate Tables

'Htles in c^rital letters signify tabs. ID booklet formal

ASIC

Title Page INTRODUCTION' Introduction to the Binder TABLE OF CONTENTS Table of Contents ASIC OVERVIEW ASIC—Executive Summary ASIC—^Family Tree and Definitions ASIC—^Forecast Summary ASIC—Market ASIC—^Historical Shipment Data GATE ARRAYS Gate Arrays—Executive Summary Gate Arrays—Forecast Gate Arrays—Product Analysis Gate Arrays—Competitive Analysis Gate Arrays—Emerging Technologies and Trends Gate Arrays—Historical Shipment Data PROGRAMMABLE LOGIC DEVICES PLD—Êxecutive Summary PLD—^Forecast PLD—^Product Analysis PLD—Competitive Analysis PLD—Êmerging Technology and Trends PLD—Âpplication and User Issues PLD—^Historical Shipment Data

^Uties in c^tal letters signiiy tabs.

ASIC (Continued)

CELL-BASED ICs' CBICs—Êxecutive Summary CBICs—Forecast CBICs—^Product Analysis CBICs—Êmerging Technologies and Trends CBICs—^Historical Shipment Data FULL-CUSTOM DEVICES Full-Custom Devices—Êxecutive Summary Full-Custom Devices—^Forecast Full-Custom Devices—^Historical Shipment Data EUROPEAN DESIGN CENTERS European Design Service Locations—Êxecutive Sunrmiary European Design Service Locations European Full-Custom IC Design Service Locations European CBIC Design Service Locations European Gate Array Design Service Locations EXCHANGE RATE TABLES European Cvurency Exchange Rates

'Htles in ci^nlal letteis signify tabs.

Volume IV Newsletters 1988-1989 1989-29 European MOS Gate Array and CBIC Design Starts Analysis November 1989-28 European Semiconductor Procurement Survey October 1989-27 European Quarterly Industry Forecast Third Quarter Update October 1989-26 GaAs PLDs Attack the Silicon TTL PLD Market September 1989-25 Exchange Rate Quarterly Newsletter September 1989-24 Closing the Gap: Will Japan Become the World's Largest September Producer of Fab Equipment? 1989-23 Less Buoyancy Expected in the U.K Economy; More Confidence August in the Irish Economy 1989-22 Mixed Analog/Digital ASIC—An Embryonic Market September 1989-21 The PLD Evolution July 1989-20 Dataquest European Semiconductor Industry Conference: "The July European Renaissance" 1989-19 The ASIC Package Proliferation July 1989-18 International Semiconductor Trade Issues—Dominance, July Dependence, and Future Strategies June 1989-17 The Shape of Post-1992 Distribution in Europe 1989-16 Exchange Rate Quarterly Newsletter June 1989-15 Final 1988 Market Share Estimates—^European Semiconductor June Market May 1989-14 European DRAM Market Update April 1989-13 European Quarterly Forecast Update April 1989-12 Unexpected Buoyancy of the French Economy 1989-11 European Personal Computer Production and Its Impact on the March Semiconductor Market March 1989-10 Preliminary European MOS Gate Array and CBIC Market Share Rankings March 1989-09 Regional Review 1989—A Year of Consolidation March 1989-08 EISA—Will It Be an Alternative to MCA? March 1989-07 Understanding the NEC/Intel Decision March 1989-06 Europe—A Healthy Marketplace for UNIX March 1989-05 ASICs Surpass $7.4 BUlion in 1988 March 1989-04 Exchange Rate Quarteriy Newsletter March 1989-03 Hitachi and TI Share the Risk: The 16Mb DRAM Agreement March 1989-02 The EEC Rules on "Made in Europe"—Article 5 No. 802/68 Analyzed January 1989-01 Preliminary 1988 Market Share Estimates—^European Semiconductor Marketplace November 1988-29 Europe Refreshes Its Stagnant White Goods Market November 1988-28 The Semiconductor Chip Protection Act Is Finalized

Volume IV (Continued) Newsletters 1988-1989 1988-27 GEC-Siemens' Joint Bid for Plessey November 1988-26 European Quarterly Forecast Update October 1988-25 Exchange Rate Quarterly Newsletter November 1988-24 Straw Poll of 1992: Regional Attitudes October 1988-23 DRAM Alliance: The United States Talks, The British Act October 1988-22 West Germany: Facing Up to the Economic Challenge October 1988-21 Component Distribution in 1992 September 1988-20 Can CaUfomia Micro Devices Inject New Life into AMI? September 1988-19 Harris Corporation to Acquire GE Solid State September 1988-18 ASIC Midyear Update September 1988-17 European Quarterly Forecast Update August 1988-16 Exchange Rate Quarterly Newsletter September 1988-15 Standard Logic Is at Life's Crossroads August 1988-14 Dataquest European Semiconductor Industry Conference: "Plan- July ning and Positioning for the '90s" 1988-13 1992—What's in a Number? July 1988-11 Semiconductor Recovery Gathers Momentum June 1988-10 U.K. Semiconductor Distributors' 1987 Revenue May 1988-9 "Intelligent" ICs Power Their Way mto $1.1 Million May Semiconductor Application Market 1988-8 Semicon Europa: A Slow Show for a Year of Slow European March Equipment Sales 1988-7 An Introduction to 1992 March 1988-6 DRAM Deja Vu March 1988-5 1988 European Regional Semiconductor Outlook March 1988-4 Ericsson Gets Leaner while Nokia Continues Acquisitions February 1988-3 Exchange Rate Quarterly Newsletter February 1988-2 Exchange Rate Quarterly Newsletter January 1988-1 1987 Preliminary Market Share Broad-Based Recovery in January Semiconductors

I.C. EUROPE Monthly reports containing: State of the Industry Industry Highlights Research Update Semiconductor Pricing and Analysis Thought for the Month 1992

BY SUBJECT

Subject Newsletter Date 1992 Introduction to 1992 1988-07 1922—What's in a Number? 1988-13 Component Distribution in 1992 1988-22 I.e. Europe Thought for the Month— Japanese Perception of Europe September 1988 The Shape of Post-1992 Distribution in Europe 1989-17 The EEC Rules on "Made in Europe"—Article 5 No. 802/68 Analyzed 1989-02 I.e. Europe Thought for the Month— European Semiconductor Supply July 1989 Note: Also see 1992 Section in I.C. Europe each month.

Acquisitions Ericsson Gets Leaner while Nokia Continues Acquisitions 1988-04 Harris Corporation to Acquire GE Solid State 1988-19 Can CaUfomia Micro Devices Inject New Life into AMI? 1988-20

AMI Can California Micro Devices Inject New Life into AMI? 1988-20

Analog I.e. Europe Research Update—Analog Market Analysis March 1989 Application Markets I.e. Europe Research Update— Quarterly Electronics Industry Update August 1988 European Personal Computer Production and Its Impact on the Semiconductor Market 1989-11 EISA—^Will It Be an Alternative to MCA? 1989-08 Europe—A Healthy Marketplace for UNIX 1989-06

Subject Newsletter Date Application Markets Europe Refreshes Its Stagnant White (Continued) Goods Market 1988-29 I.e. Europe Thought for the Month— Workstation Market Opportunities February 1989 I.e. Europe Thought for the Month— Cordless Telephones October 1988 I.e. Europe Research Update— European Military Market November 1988 I.e. Europe Thought for the Month— December 1988/ ISDN: Aging before Birth? January 1989 I.e. Europe Research Update— European Laptop Market Analysis April 1989 I.e. Europe Research Update— CT2: A Rising Star in Europe June 1989 I.e. Europe Research Update—U.K. V32 Modem Race July 1989 I.e. Europe Research Update—^The Next Graphics Standard August 1989 I.e. Europe Research Update—Dynamic European CAD/CAM Market September 1989 I.e. Europe Research Update—^Military/ Aerospace Semiconductor Demand November 1989 I.e. Europe Thought for the Month— EC's Green Paper on Telecommuni cations November 1989

Asia I.e. Europe Research Update—^The Tigers Prepare for Graduation March 1988

ASICs ASIC Midyear Update 1988-18 European MOS Gate Array and CBIC Design Starts Analysis 1989-29 Mixed Analog/Digital ASIC—An Embryonic Market 1989-22 The ASIC Package Proliferation 1989-19 Preliminary European MOS Gate Array and CBIC Market Share Rankings 1989-10 ASICs Surpass $7.4 BiUion in 1988 1989-05

Subject Newsletter Date

ASICs (Continued) I.e. Europe Research Update—Gate Array Design Start Forecast Slashed December 1989

CAD/CAM I.e. Europe Research Update—^Dynamic European CAD/CAM Market September 1989

California Micro Devices Can California Micro Devices Inject New Life into AMI? 1988-20

Capital Spending I.e. Europe Research Update— Quarterly Electronics Industry Update August 1988

Cellular Radio I.e. Europe Research Update— European Cellular Market September 1988

Chip Protection Act The Semicoductor Chip Protection Act is Finalized 1988-28

Communications I.e. Europe Research Update—^The Final Frontier in Voiceband Modems July 1988 I.e. Europe Thought for the Month— Satellites August 1988 I.e. Europe Research Update— European Cellular Market September 1988 I.e. Europe Thought for the Month— Cordless Telephones October 1988 I.e. Europe Thought for the Month— ISDN: Aging before Birth? Dec/Jan 1989 I.e. Europe Research Update— CT2: A Rising Star in Europe June 1989 I.e. Europe Research Update—^U.K. V32 Modem Race July 1989 I.C. Europe Thought for the Month- EC's Green Paper on Telecommmuni- cations November 1989

Companies I.e. Europe Thought for the Month- Company Results January 1988 I.e. Europe Research Update—South Korean Companies October 1988 I.e. Europe Thought for the Month— Cordless Telephones October 1988

Subject Newsletter Date Computers European Personal Computer Production and Its Impact on the Semiconductor Market 1989-11 Europe—^A Healthy Marketplace for UNIX 1989-06 I.e. Europe Thought for the Month— Workstation Market Opportunities February 1989 I.e. Europe Research Update— European Laptop Market Analysis April 1989 I.e. Europe Research Update—^The Next Graphics Standard August 1989 Conferences Semicon Europa: A Slow Show for a Year of Slow European Equipment Sales 1988-08 Dataquest's 1988 European Semicon ductor Industry Conference: Planning and Positioning for the '908 1988-14 1992—What's in a Number? 1988-13 Dataquest's 1989 European Semicon ductor Industry Conference: "The European Renaissance"

Consumer Europe Refreshes Its Stagnant White Goods Market 1988-29

Consumption Data 1988 European Regional Semiconductor Outlook 1988-05 Semiconductor Recovery Gathers Momentum 1988-11 European Quarterly Forecast Update 1988-17 European Quarterly Industry Forecast— Third Quarter Update 1989-27 European Quarterly Forecast Update 1989-13 Regional Review 1989—A Year of ConsoUdation 1989-09 ASICs Surpass $7.4 Billion in 1988 1989-05 I.e. Europe Research Update— Worldwide Semiconductor Forecast Low October 1989

Subject Newsletter Date Consumption Data I.e. Europe Research Update—Gate (Continued) Array Design Start Forecast Slashed December 1989 Deregulation I.e. Europe Thought for the Month— Government Policies May 1988 I.e. Europe Research Update—^EC's Green Paper on Telecommunications November 1989 Design Starts European MOS Gate Array and CBIC Design Starts Analysis 1989-29

Distribution U.K. Semiconductor Distributors' 1987 Revenue 1988-10 Component Distribution in 1992 1988-21 The Shape of Post-1992 Distribution in Europe 1989-17 I.e. Europe Thought for the Month— Distribution in Europe November 1988

EC I.e. Europe Thought for the Month— European Community Not a Techno logical Backwater June 1989

Economy I.e. Europe Thought for the Month— Business Prospects February 1988 I.e. Europe Thought for the Month— Government PoUcies May 1988 Less Buoyancy Expected in the U.K. Economy; More Confidence in the Irish Economy 1989-23 Unexpected Buoyancy of the French Economy 1989-12

Equipment and Materials Semicon Europa: A Slow Show for a Year of Slow European Equipment Sales 1988-08 I.e. Europe Research Update—General Signal Acquires GCA May 1988

Ericsson Ericsson Gets Leaner while Nokia Continues Acquisitions 1988-04

Subject Newsletter Date Exchange Rates Exchange Rate Quarterly Newsletter 1988-16 Exchange Rate Quarterly Newsletter 1988-02 Exchange Rate Quarterly Newsletter 1989-25 Exchange Rate Quarterly Newsletter 1989-16 Exchange Rate Quarterly Newsletter 1989-04 GaAs GaAs PLDs Attack the Silicon TTL PLD Market 1989-26 GCA I.e. Europe Research Update—General Signal Acquires GCA May 1988 GEC GEC-Siemens' Joint Bid for Plessey 1988-27 General Signal I.e. Europe Research Update—General Signal Acquires GCA May 1988 Harris Harris Corporation to Acquire GE Sohd State 1988-19

Hitachi Hitachi and Tl Share the Risk: The 16Mb DRAM Agreement 1989-03 I.e. Europe Research Update—Hitachi/ TI DRAM Deal February 1989

Industry Trends 1988 European Regional Semiconductor Outlook 1988-05 DRAM D6ja Vu 1988-06 Semiconductor Recovery Gathers Momentum 1988-11 Standard Logic Is at Life's Crossroads 1988-15 ASIC Midyear European Quarterly Forecast Update 1988-18 European Quarterly Forecast Update 1988-17 I.e. Europe Research Update—^RISC Architecture April 1988 I.e. Europe Thought for the Month— DRAMs July 1988 I.e. Europe Research Update— Quarterly Electronics Industry Update August 1988

Subject Newsletter Date Industry Trends European DRAM Market Update 1989-14 (Continued) European Quarterly Forecast Update 1989-13 Regional Review 1989—A Year of Consolidation 1989-09 I.e. Europe Research Update- Worldwide Semiconductor Forecast Low October 1989 European Quarterly Industry Forecast— Third Quarter Update 1989-27 Intel Intel Turns Twenty: Is There Life after DOS? 1988-12 Understanding the NEC/Intel Decision 1989-07

Investment I.e. Europe Thought for the Month— European Community not a Techno logical Backwater June 1989 Japan I.e. Europe Thought for the Month— Japanese Perception of Europe September 1988 Market Shares . PreUminary 1987 Market Share Estimates 1988-01 Final 1988 Market Share Estimates— European Semiconductor Market 1989-15 Preliminary European MOS Gate Array and CBIC Market Share Rankings 1989-10 Preliminary 1988 Market Share Estimates—^European Semiconductor Marketplace 1989-01 I.e. Europe Research Update— Worldwide Market Share Analysis Dec/Jan 1989 I.e. Europe Research Update—Analog Market Analysis February 1989

Memory DRAM D6}h Vu 1988-06 . European DRAM Market Update 1989-14 Hitachi and TI Share the Risk: The 16Mb DRAM Agreement 1989-03

Subject Newsletter Date Memory (Continued) I.e. Europe Thought for the Month— Business Prospects February 1988 I.e. Europe Thought for the Month— DRAMs July 1988 I.e. Europe Research Update—^Hitachi/ TI DRAM Deal February 1989 I.e. Europe Thought for the Month— Users Erupt Against DRAM Proposals September 1989 Mergers I.e. Europe Research Update— Managing the Mergers June 1988 Microcomponents Intel Turns Twenty: Is There Life after DOS? 1988-12 Understanding the NEC/Intel Decision 1989-07 I.e. Europe Research Update—A RISe-less Approach April 1989 Microelectronic Tube I.e. Europe Thought for the Month— Return of the Tube December 1989 Military I.e. Europe Research Update— European MiUtary Market November 1988 I.e. Europe Research Update—Military/ Aerospace Semiconductor Demand November 1989

Modems I.e. Europe Research Update—^The Final Frontier in Voiceband Modems July 1988 NEC Understanding the NEC Intel Decision 1988-07

Nokia Ericsson Gets Leaner while Nokia Continues Acquisitions 1988-04

Offshore Manufacturing I.e. Europe Thought for the Month— Japanese Printer Manufacturers June 1988 Plessey GEC-Siemens' Joint Bid for Plessey 1988-27

PLDs GaAs PLDs Attack the Silicon TTL PLD Market 1989-26 The PLD Evolution 1989-21

Subject Newsletter Date Power ICs Intelligent ICs Power Their Way into $1.1 Billion Semiconductor Application Market 1988-09 Printers I.e. Europe Thought for the Month— Japanese Printer Manufacturers June 1988 Procvuement European Semicoductor Procurement Survey 1989-28 Quality I.e. Europe Thought for the Month— Perception versus Measurement March 1988

RISC I.e. Europe Research Update—^RISC Architecture April 1988 I.e. Europe Research Update—^A RISC-less Approach April 1989 SateUites I.e. Europe Thought for the Month— Satellites August 1988 SOS-Thomson I.e. Europe Research Update— Managing the Mergers June 1988

Siemens GEC-Siemens' Joint Bid for Plessey 1988-27 South Korea I.e. Europe Research Update—South Korean Companies October 1989 I.e. Europe Thought for the Month— Cordless Telephones October 1988 Standard Logic Standard Logic Is at Life's Crossroads 1988-15

Takeovers GEC-Siemens' Joint Bid for Plessey 1988-27 Tariffs I.e. Europe Research Update—^The Tigers Prepare for Graduation March 1988 The EEC Rules on "Made in Europe"—Article 5 No. 802/68 Analyzed 1989-02 I.e. Europe Thought for the Month— Regional Aid Policy April 1989 .

Subject Newsletter Date

Tariffs (Continued) I.e. Europe Thought for the Month— European Semiconductor Supply July 1989

TI Hitachi and TI Share the Risk: The 16Mb DRAM Agreement 1989-03 I.e. Europe Research Update—Hitachi/ TI DRAM Deal February 1989

Trade Issues International Semiconductor Trade Issues—^Dominance, Dependence, and Future Issues 1989-18 The EEC Rules on "Made in Europe"—Article 5 No. 802/68 Analyzed 1989-02

U.K. Markets U.K. Semiconductor Distributors' 1987 Revenue 1988-10 UNIX Europe—A Healthy Marketplace for UNIX 1989-06

Users I.e. Europe Thought for the Month— Users Erupt against DRAM Proposals September 1989

USSR I.e. Europe Thought for the Month— An Era of Glasnost and Perestroika March 1989

Venture Capital I.e. Europe Thought for the Month— Changing Role of Equity in Europe October 1989

Vertical Integration I.e. Europe Thought for the Month— Forward Vertical Integration August 1989

Wafer Fabrication Closing the Gap: Will Japan Become the World's Largest Producer of Fab Equipment? 1989-24

Dataquest

DataQuest Semiconductors Europe European Fab Database November 1991

Source: Dataquest

Dataquest Semiconductors Europe i

Published by Dataquest Incorporated The content of this report represents our interpretation and analysis of information generally available to the public or released by knowledgeable individuals in the subjea industry, but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in confidence by our clients. Printed in the United States of America. All rightsreserved . No part of this publication may be reproduced, stored in retrieval systems, or transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or otherwise—widiout the prior permission of the publisher.

Background - AUTOMOTIVE—^Dedicated to automobile applications The material in this booklet applies to the - CODEC—Coder/decoder European portions of Dataquest's Semiconduc - DSriERFACE—Interface IC tors Europe service Wafer Fab Database. The - MESFET (GaAs)—Metal Schottky field- Wafer Fab Database is updated on an ongoing effect transistor basis, employing both primary and secondary - MODFET (GaAs) research methodologies. The tables included in this booklet highlight both production and - MDIODE (GaAs)—Microwave diode pilot line wafer fabs. - MFET (GaAs)—Microwave field-effect transistor - MODEM—Modulator/demodulator General Definitions - MMIC—^Monolithic microwave IC - OP AMP—Operational amplifier A fab line is a processing line in a clean room that is equipped to do all front-end wafer - PWR IC—^Power IC processing. Occasionally there are two separate - REG—Voltage regulator product-specific fab lines or two different - SMART PWR—Smart power wafer sizes in a clean room. In this situation, - SWITCHES—Switching device a clean room will be documented as two fab - TELECOM—^Telecommunications chips lines if the equipment is dedicated to each wafer size or product line. There can be many Memory fab lines at one location. - MEM—Memory Front-end wafer processing is defined as all steps involved with semiconductor processing, - RAM—Random-access memory beginning with initial oxide and ending at - DRAM—Dynamic RAM wjifer probe. - SRAM 4 TR.—Static RAM uses a 4-transistor cell design A production fab is defined as a wafer fab - SRAM 6 TR.—Static RAM uses a capable of front-end processing more than 6-transistor cell design 1,250 wafers per week (type = F). - VRAM—Video RAM - ROM—^Read-only memory A pilot fab is defined as a wafer fab capable - PROM—^Programmable ROM of front-end processing 1,250 wafers or less per week (type = P). - EPROM—^Ultraviolet erasable PROM - EEPROM or E2—^Electrically erasable PROM Definitions of Table Columns - FERRAM—^Ferroelectric RAM - NVMEM—^Nonvolatile memory (ROM, The Products Produced column contains prod PROM, EPROM, EEPROM, FEREIAM) uct information for seven produa categories. - FIFO—^First-in, first-out memory The information in this column can be very detailed, depending on the information's avail - SPMEM—Other specialty memory (dual ability. The nomenclature used within the port, shift-register, color look-up, etc.) seven product groups of the fab database is as follows, with definitions where warranted: Micrologic

• Analog - ASSP—Application-specific standard product - UN—^Linear/analog devices - BIT—^Bit slice (subset of MPU functions) - A/D D/A—Analog-to-digital, digital-to- - DSP—^Digital signal processor analog converters - MCU—Microcontroller unit European Fab Database

- MPR—^Microperipheral - PTRAN—^Photo transistor - MPRCOM—MPR digital communications - SAW—Surface acoustic wave device (ISDN, LAN, UART, modem) - Srr IMAGE SENSOR—Static induction tran - MPU—Microprocessor unit sistor image sensor - LISP—^32-bit list instruction set processor The Process Technology column lists four major for AI applications types of technologies. This column also lists a - RISC—^Reduced-instruction-set computation few uncommon technologies along with infor 32-bit MPU mation on levels of met^ type of well, and logic structure, when available. Definitions of • Standard logic the nomenclature used in the Process Technol ogy column are as foUows: - LOG—Standard logic • MOS (silicon-based) • ASIC logic - CMOS—Complementary metal-oxide semi - ASIC—Âpplication-specific IC conductor - ARRAYS—Gate arrays - MOS—^n-channel metal-oxide semiconduc tor (NMOS) and p-channel metal-oxide - CBIC—Cell-based IC semiconductor (PMOS) (More than - CUSTOM—Full-custom IC (single user) 90 percent of the MOS fabs use - PLD—^Programmable logic device n-channel MOS.) - Ml—Single-level metal • Discrete - M2—^Double-level metal - M3—Triple-level metal - DIS—Discrete - N-WELL - DIODE - P-WELL - PET—^Field-effect transistor - POLYl—Single-level polysilicon - GTO—Gate turn-off thyristor - POLY2—Double-level polysilicon - HEMT (GaAs)—^High-electron-mobility - POLY3—Triple-level polysilicon transistor - MOSFET—MOS-based field-effect transistor • BiCMOS (silicon-based) - PWR TRAN—Power transistor - RECTIFIER - BICMOS—Bipolar and CMOS combined - RF—^Radio frequency on a chip - SCR—Schottky rectifier - BIMOS—^Bipolar and MOS combined on a chip - SENSORS - ECL I/O—ÊCL input/output - SST—^SmaU-signal transistor - TTL I/O—^m input/output - THYRISTOR - TRAN—^Transistor • Bipolar (silicon-based) - ZENER DIODE - BIP—Bipolar • Optoelectronic - ECL—Emitter-coupled logic - TTL—^Transistor-transistor logic - OPTO—Optoelectronic - STTL—Schottky TTL - CCD—Charge-coupled device (imaging) - COUPLERS—^Photocouplers • Gallium arsenide and other compound semi - lED—Înfrared-emitting diode conductor materials - IMAGE SENSOR - GaAs—Gallium arsenide - LASER (GaP)—Semiconductor laser or laser IC - GaAlAs—Gallium aluminum arsenide - LED—Light-emitting diode - GaAs on Si—Gallium arsenide on silicon - PDIODE—Photo diode - GaP—Gallium phosphide

- HgCdTe—Mercuric cadmium telluride shifts operating; it is limited only by the installed equipment in the fab and the com - InAs—^Indium arsenide plexity of the process it runs. Start capacity in - InP—^Indium phosphide square inches is calculated using the approxi mate diameter and the wafer-start capacity. - InSb—Indium antimony - LiNb03—^Lithium niobate The Clean Room Class column represents the level of cleanliness in the cleanest part of the - SOS—Silicon on sapphire clean room. This area represents the true The number in the Minimum lAnewidth column environment to which the wafer is exposed. represents the minimum linewidth at the criti cal mask layers as drawn. This number is The Origin of Oumer column represents stated in microns and is defined in Dataquest's the country where the parent company is fab survey as being available in production headquartered. volumes. The Merchant or Captive column categorizes The Wafer Size column represents the wafer each fab line on the tables as one of these diameter expressed colloquially in inches. two types. Definitions of the various categories However, for wafers greater than 3 inches in are as follows: diameter, the colloquial expression is inac curate. When calculating square inches, the • A Merchant fab line is a fab line that following approximations are used: produces devices that end up available on the merchant market Wafer-Start Capacity is defined in the fab sur • A Captive fab line does not sell any of its vey as the equipment-limited wafer-start capa devices on the merchant market. All produc city per four-week period. Start capacity is not tion is consumed by the owner of the fab limited by current staffing or the number of line.

Max. S

ABB-BAFO AB JABTALLA SHEDEH K/A DIS OBIO BIF CMOS SOS 1.50 5,000 60,850 6,000

LAHPERTHEIM H/A PHR DIS 16,000 113,120 LIN

A£Q AS (DAIMLER BENZ) 4SW 3D ICs 0.00 0 mn-HAVE OPTO

AHALOO DEVICES LIN AD/DA CMOS BICMOS 1.00 15,000 182,550 10,000 mx- TELECOM

ANALOe DEVICES K/X LIN AD/DA BIP BICMOS 1.20 20,000 547,600 0 TELECOM

ANSALDO IRASPORTI CKNOA II9UiX.; 6,000 73,020

ASCOM FAVAS SWITZEBUNC N/A ARRAYS 3.00 1,000 12,170 CUSTOM Table 1 (Continued) European Existing Pilot and Production Fab Lines (Including Fabs Going into Production During 1992) Max. Sq. In. Clean Mln. n/Start Start Room Fab Products Process Line- naf. Capacity Capacity (square Company City Country Name Produced Technology width Size (4 vks.) (4 »ks.) feet)

ATtT HICROELECTBONICS SPAIN H/A CBIC CMOS M2 1.25 6 14,000 383,320 25,00 CUSTOM

#/A SM EPROM O.ni •' 5,000 243,350 I EEPROM ARRAYS

AOSTRIA HIKROSXSIEME GMBH if ft ABRnys NHOS CMOS 1.00 .:f 25,000 304,250 10,0 I BICMOS

DIGITAL EQUIPMENT SOUTH QUEENSFERRY SCOTLAND mA HPD FPU CMOS 0.70 e. 3,000 62,140 28,0 i LOO I EUK>S GMBH DORTMUND GERMANY H/A LIN CUSTOM CMOS 1.50 4 4,166 50,700 I

N/A H/A l.GO 9

ES2 EUROPEAN SILICON STRUCTURES ROUSSET CEDEX CBIC CMOS M2 0.80 :& 1,000 19,020 ARRAYS CUSTOM MIL Table 1 (Continued) European Existing PUot and Production Fab lines (Including Fabs Galas Into Production During 1992) Kax. Sq. In, Clean Min. n/Start Start Room fab Products Proceaa Line- ffaf. Capacity Capacity (square Company City Country Name Produced Technology width Size (4 wks.) (4 wks.) feet)

rpjiwo NEWIOH AYCLIFFE BNeUUn} PHASE 1 4Mb DRAM 1.00 6 25,000 684,500 ASIC •s

O SEC PLESSEY S/C LINCOLN j«G£»tt' n/& LIN HPD 1.50 4. 13,000 158,210 12,000 i ABBAYS fi SBAH COST a I esc PLESSEX S/C •^ifm^ Mm KM '3^(K^ 15,000 182,550

n GEC PLESSEY S/C N/A ASIC DSP CMOS MHOS H3 0.70 6,000 164,280 1», 906 O, TELECOM § 3I' S. GEC PLESSEY S/C SWINDON H/A. DIODES DIS S;M 5 12,000 228,240 29,000 LIN

GEC PLESSEY S/C flK^^Sp: V/K VXf' 3.00 4 14,000 170,380 Table 1 (Continued) European Existing Pilot and Production Fab lines (Including Fabs Going Into Pfoducdon During 1992) Max. Sq. In. Clean Min. N/Start Start Room Fab Products Process Line- Waf. Capacity Capacity (square Company city Country Name Produced Technology width Size <4 vks.) (4 vks.) feet)

HHT BRDGG SniTZERIAND N/A CONSUMER 0.00 3 15,000 106,050 15,00 ICs

HDGHES HICROELECT. GLENROTHES SCOTLAND ilflfh ARRAYS CMOS HOS 3;0II < «,400 77,688 28,00 CBIC EPROH COSIOM

BOEBLIHCEN GEBHANX J|^ PHR DIS 0.00 ^ 20,000 243,400 BYBRID I

COBBEIL-ESSONNES FBUICE N/A ARRAYS LIN BIP 2.00 )»> 40,000 760,600 50,00 m- CUSTOM

I COBBEIL-ESSOHHES FRANCE K/A 25eK DRAM CMOS MOS Xim 9 25,000 475,500 25,00 I 64K SRAM I ifr/* IHb DRAM CMOS 7,000 340,690

H/A IKf gi^p; t 20,000 243,400 Table 1 (Continued) European Existing Pilot anij Ptoducdon Fab IJnediictlon Dutlng 1992) Max. Sq. In. Clean Min. n/Start Start Room Fab ProductB Proceas Line- ffaf. Capacity Capacity (square Company city Country Name Produced Technology width Size (4 vtks.) (4 wks.) feet)

SimiELFINQEN GEBHAinC SM ARRAYS BIP 2.00 5 15,000 285,300 20,000 © l-J

mi SINDELflNGEN N/A 1Mb DEUU4 O.SO 8 20,000 973,400 45,000 4Mb DRAM

I SIHDELFINGEN GEBMANX tl/fk, 25eK DRAM 1.50 i 25,000 475,500 20,000 g SBAH DSP a HPD I SIHDELFINGEN V/k-: CDSTCM Bit 1.50 S 15,000 285,300 20,000

a SINDELFINGEN 4Hb DRAM CHOS 0.80 B 30,000 1,460,100 45,000 O IBM vm

VA B0I,GARIA N/A 1«K DRAM, 0.00 ff I 64K DRAM

INST. SCIENCE i TECB. J^X 0.00 4 10,000 121,700 Table 1 [Continued) European Existing PUot and Production Fab lines (Including Fabs Going Into Production During 1991) Max. Sq. In. Clean Hln. W/Start Start Room Fab Products Procesa Line- Waf. Capacity Capacity (square Conrpany City Country Name Produced Technology width Size (4 vks.) (4 Hks.) feet)

INTL. BECTIFIER IDKIN IIAilt BORGARO BECTIFIER N/A 0.00 4 15,000 182,550 13,00 TBIRISIOR 1 ttlTL. RECTIFIER BECTIFIER N/A 0.00 4 10,000 121,700 THYRISTOR •§

YUGOSLAVIA N/A 9,49 -A 5,000 35,350

I BARTLEPOOL ENGLAND H/A 0.00 0

I N/A H/A 0.00 0 ^I IXALTEL •8

I GERHANX mfit. PtlR TRAN BIP HOS ^^t^S < 42,000 511,140 I DIS

GEEJOlWf H/A DSP NVHEH CMOS HOS 1.20 5 21,500 408,930 CDSTOH Table 1 (Continued) European Existing Pilot and Production Fab Lines (Indudii^ Fabs Going into Production During 1992) Max. Sq. In. Clean Mln. W/Start Start Room Fab Products Process Line- Haf. Capacity Capacity (square Company City Country Name Produced Technology width Size (4 wka.) (4 wka.) feet)

IVT FREIBDKG GEBHANY N/A DIS CUSTOM BIP 5.00 4 16,500 200,805 0

SDTTON COLDFIELD ENGLAND H/A PHR DIS SaAi 0 54,000

N/A 256K SRAM CMOS BICHOS 0.70 :» 10,000 190,200 21,500 MCO ASIC H2 LIN

MATRA HHS/CYPRESS t/* TRAMCB H/A S/A H/A

HICOBELECT. -MARIN ..ptKW SniTZERLAND H/A CDSKW H/A 0.00 4 10,000 121,700

(QCROELECT. -MARIN SWIIZERUmD N/A ARRAYS LIN CMOS 3.00 i 10,000 121,700 COSIOH

HICRONAS, INC. FINLAND K/A LIN CBIC CMOS M2 2.00 4,000 48,680 12,912 COSTOM Table 1 (Continued) European Existing Pilot and Production Fab lines (Including Pabs Going Into Production During 1992) Max. Sq. In. Clean Min. N/Start Start Room Fab Products Process Line- Waf. Capacity Capacity (square Company City Country Name Produced Technology width Size (4 vks.) (4 vks.) feet)

HtETEC ALCATEL OODENAARDE BELOIOM CUSTOM MOS CMOS 1.00 4 15,000 182,550 21,5 CBIC ANA BICMOS

»-* D MOTOROLA EAST KILBRIDE SCOTLAND HOS-1 HCt; MEM CMOS MOS Ml 3,00 4 20,000 243,400 25,6 C LOG

BAST KILBRIDE SCOTLAND WH"^ '^^ ''^ '^'^'^ ^^ 2-M: t: 45,000 855,900 35,0 II LOG I I EAST KILBRIDE SCOTLAND XKlS-tf SRAM 1Mb CMOS TOSHIBA 1.00 6 25,000 684,500 34,0 DRAM 68040 1 MPO ^ MOTOROLA BIP PHR PHR TRAH BIP 10.00 9 12,000 228,240 8,7

I 'i^llJii« TELECOM OP BIP 2.00 4 25,000 304,250 22,0 AMP RES AOTO

v/x UES 0.00 4 14,000 170,380 5,8 Table 1 (Continued) Suropean Existing Pilot tnt^ ncpdocOsa Fab lines (InchifUng Fabs Going Ini^ Stojilte^otl I>uring 1992) Max, Sq. In. Clean Mln. H/Stai± Start Room Fab Products Process Line- Waf. Capacity Capacity {square Company Country Name Produced Technology width Sise (4 wka.) (4 wks.) feet)

NATIONAL 5/C SCOTLAND BIP 4 LOG BIP 5.00 4 40,000 486,800 10,000 @

i-»

D NATIONAI. S/C SCOTLAND tmxe VM 'SI* 0.00 5 15,000 285,300 15,000 i (b

SCOTLAND OK 6" LOG COSIOM BIP a.50 « 7,000 191,660 10,000 I ARRAYS 3 NATIONAL S/C I LIVINGSTON, WEST SCOTLAND PBASE 1 IHb DRAM CMOS M2 H3 0.70 $ 9,000 171,180 19,500 I LOTHIAN 4Mb DRAM

LIVINGSTON, REST SCOTIiAND 4Hb DRAM CMOS 0.00 6 9,000 246,420 19,500 LOTHIAN 2S6K SRAM I MPn

NEmOSKET MICBOSYS. w&m :W^ 0.00 4 10,000 121,700

NDOVA HISTRAL S.P.A. SEBHONETA il^ R/A ZENER N/A 3.00 3 15,000 106,050 10,76 DIODE DIODES Table 1 (Continued) European Existing iHlgl ^0A IPnilliinctla^ (Including Fabs Goii^ J^tHk ^^^llUi^ia^ tkHitis 1992)

Max. Sq. In. Clean Mln. W/Start Start Room Fab Products Process Line- Waf. Capacity Capacity

K/A CONSUMER BIPOLAR H2 M3 1.50 £ 18,000 342,360 ICS

§ PHILIPS HAMBURG CONSDHER CON 1.20 5 18,000 342,360 16,14 •2

DISCBEIS DIS W* 1ft 22,000 267,740

%^ 8-BIT HCD CMOS HOS HI 1.00 5 12,500 237,750 32,28 16-BIT HCD H2 EEPROM ASIC

BAZELGROVE, ENGLAND IRAN DIODE BIP 10.00 t 45,000 547,650 19,36 STOCKPORT CHESHIRE RECTIFIER

Kt^Cfep: BAZELGROVE, ENGLAND POnERHOS DIODE HOS IM 3.00 4. 10,000 121,700 11,83 STOCKPORT CHESHIRE SMART PWR

'^MEJUili' »/A S/A iii»M 3.00 1 26,000 316,420 23,45 Table 1 (ContlQued) European Existing PJIot and Production Fab lines (Inchidlng Fabs Going Into Production During 1992) Max. Sq. In. Clean Hin. W/Start Start Room Fab Products Proceaa Line- Naf. Capacity Capacity (square Company City Country Hame Produced Technology width Size (4 wka.) (4 wks.) feet)

NETREKLANDS H/A SRAM COD CMOS NHOS H2 0.80 6 8,400 229,992 @

NETHEBLAHDS H/A t^ MOS BICMOS 1.50 jl: 20,000 380,400 39,338 BIS I PHILIPS NEIHERLANDS K/A Pmt DIS R/lk 0.70 4 Q 12,912 I DIODES f I STAOSKANAAL NEISEBLANDS N/A KECTIFIER BIP H3 0.00 3 70,000 494,900 0

PBILIPS BTC '^euir iliat^^ ;;K^. intig «.«0 S 12,000 228,240 12,58 I PBILIPS/FASELEC SniTZEBLAND N/A 1^ CMOS IH 2.00 f 12,000 146,040 21,52

?ml»: OBANOLLEKS M/*. J»3$;Kiii s^ Q.OO 3 10,000 70,700 13,00 Table 1 (Contiiiiied) European Existing Pilot and Production Fab lines (Including Fabs Going Into Production During 19?2) Max, Sq. In. Clean Min. n/Start Start Room Fab ProductB Proceaa Line- Waf. Capacity Capacity (square Cc»npany City Country Name Produced Technology width Size (4 wks.) <4 wks.) feet)

EHCXAND H/A N/A 0.00 3 10,000 70,700

S RIFA AB StlEDEH H/A WR DJS BIS 0.00 4 25,000 304,250 92,00

I :'W(stK n/t,. $/ji,. :iB5Kji!iesr 0.00 ^ 10,000 121,700 a

BEDILINGEN GEBHAm RtW/FAK LIN DIS BIP BICHOS 3^'lSfa 4 20,000 243,400 CDSTOM

5" SEAGATE KECROELBCI. LIVIMGSrON SCOTLAND »/& LIN MP H2 3.00 4 5,000 60,850 16,1 !3

I GLENROTHES SCOTLAND N/A LIN DIS BIP CMOS MOS 4.00 -4' 2,000 24,340 OPTO

CRICKLADE ttfk vti «i» 0.00 4 10,000 121,700 Table 1 (Continued) European Existing Pilot and Production Fab lines (Including Fabs Going Into Production During 1992) Max. Sq. In. Clean Hin, W/Start Start Room Fab Products Process Line- Waf. Capacity Capacity (square Company City Country Name Produced Technology width Size (4 HICS.) (4 wka.) feet)

SEHITRON S/A »IS JtlB 0.00 4 10,000 121,700

g SGS-THOMSON 35041 SENNES N/A ^ 5.00 S ie,000 304,320 m I

SGS-TBOMSON Wfft' LIN ARRAYS BIP BICHOS 4.00 S 16,000 304,320 22,000 I LOGIC

SGS-THOMSON AGR&TE (MILAN) :XMtS 64K 2S6K 0.70 S 28,000 766,640 22,000 1Mb EPROH PLD LIN ARRAYS I '0 W^ i^ H/A $.99: 5 34,000 646,680 a SGS-THOMSON aw I&

SGS-IHOHSON '^ifXjfjiifi]^ n/k LOO LIN 3.00 4: 21,000 255,570 COSTOM

SSS-IHOHSON COSTALEITO H/A O.OO T^le 1 (Continued) European Existing Pilot and Production Fab IJnes (Including Fabs Going Into Production Duiing 1992) Max. Sq. In. Clean Mln. W/Start Start Room Fab Products Process Line- Waf. Capacity Capacity (square Conp&Ay City Country Name Produced Technology width Size (4 wks.) (4 wks.) feet)

SQS-IHOHSON FSUICE N/A LIN PHR IC BIP CMOS 1.50 4 20,000 243,400 14,00 CDSTOM «

•g SGS-THOMSON MODDLE 4 MPD LIB CMOS MOS 2.00 * 22,000 267,740 8!

I SSS-THOHSOH XRANCE MODOLE 5 NVHEH HPO CMOS MOS 1.50 S 16,000 304,320 I

SQS-TBOHSON rSAHCK tIESA K/A 5.00 3 70,000 494,900

^^fib ill 20,000 243,400 S6S-TH0HS0N ^idA^' ^lii^si" IHT^ •»*;

I 2.00 S 15,000 285,300 tfDNICH BALANSTRAS ASIC BIP CDSIOH LIN

BALANSTRAS ASIC CMOS MOS t>:W ;S. 15,000 285,300 COSTOH Table 1 fContinucd) European Existing Pilot and Production Fab Lines (Including Fabs Going into Production During 1992) Max. Sq. In. Clean Min. W/Start Start Room Fab Products Process Line- ffaf. Capacity Capacity (square CoK^any City Country Name Produced Technology width Size (4 wks.) (4 vks.) feet)

BEGENSBDHG e&RHAinr MEGA 1 IHb DRAM 0.80 e 20,800 569,504 ^ 4Mb DRAH -g§

8 SIEMENS KEOENSBDRG MEGA 2 4Hb DRAM CMOS 0.80 « 16,000 438,080

f BEGENSBOBG GEBHMiy R^ •ixm- WHi- d;,;Oq; 4. 10,000 121,700

i^i|^ippk' p» i, 64K DRAM 2.00 4 40,000 486,800 LOG I g' SIEMENS AOSTRIA FAB 2 25 6K DRAH MOS 1,20 5 40,000 760,800 g.

SHIIZEBLAND N/A -•«* 0.00 A 10,000 121,700

TELEFDNKEH SCBIHG GEBMAHX N/A LOG HPD :3.«ll j^ 24,000 292,080 3,000 HCU ARRAYS Table 1 CCoatlnued.) European Existing Pilot and Producdon Pab lines (Including Fabs Going Into Production During 1992) Max. Sq. In. Clean Min. W/Start Start Room Tab Products Froceaa Line- Waf. Capacity Capacity (square Company City Country Name Produced Technology width Size (4 wka.) (4 wks.) feet)

COST

^ TELEFDNKEN ELECT. amwMre H/A CDSTOM LIN BIP MOS CMOS i.oo A 20,000 243,400 DIS HCV I B •g lELEFUNKEN ELECT. GESHANY 'll/A OPTO HIGH BIP 1.00 ia 5,000 35,350 I FBEQOEHCY N/A 1.00 :ti 3,000 9,420 8. BEILBRONN Z lELEFDHKEN ELECT.

raiwcE n/A DI» M/X 0.00 4 10,000 121,700 25,00 I txiait- PHASE 1 4Hb DRAM CHOS 0.80 S 23,740 650,001 46,00 I ASSP CBIC I

ENStAHD PHR FAB PWR DIS BIP 0.00 il 14,379 174,992 9,0

GEBHKHy H/A LIH ASSP BIP CMOS 0.80 i 9,463 179,986 10,0 BICMOS Table 1 (Continued) European Existing Pilot and Production Fab Lines (Includli^ FatM Going into Production During 1992) Max. Sq. In. Clean Min, W/Start Start Room Fab Products Frocesa Line- Waf. Capacity Capacity (square Company City Country Name Produced Technology width Size (4 wks.) (4 wks.) feet)

N/A CBIC LIN CMOS BICMOS 0,80 5 10,515 199,995 17,000 ASSP

VAISAUV FINLAND |(/JL njt £H^: 5.00 3 290; 1,414 I f VEB GLEICBRICHTERDERK STABNSDORF GERHMHy H/A FHR DIS N/A 0.00 0'

VEB HALBLEIIERHERK FBAHKFORT (ODER) GERHANX It/K li^ fM 0.00 0 I I VEB KOMBINAT HIKROELEKTRONIK GERHMn- ,iJEA:: D/A c^K>s MOS O.OO O

VEB ROEHRENDERK NEOBADS AH RENtmEG GERMANY MM RHW WM 0.00 «(

VEB NERK FDER FEBNSEEELEKTRONIK BERLIN-OBERSCBOENE 6ERHANX 11/K. SENSOR CCD N/A 0.00 0 WEIDE Table 1 (Continued) European Existing Wlot and Production Fab lines (Inctudins Fabs Going into Prodiictlon During 1992) Max. Sq. In. Clean Hin. W/Start Start Room Fab Products ProceSB Line- Haf. Capacity Capacity (square Company City Cmmtry Name Produced Technology width Size (4 vks.) (4 wks.) feet)

NESTCODE S/C CRIPPEH8AH H/A H/A 0.00 4 10,000 121,700 H'

IB •§ 9! Wh l.SO 5 10,000 190,200 26,000

I MA - Not Available I Source: Dataquest (November 1991)

I Table 2 Buropean Future Pilot and Production Fab lines (Planned Facilities Going Into Production by Yeaf) Target Wafer Sq. In. Clean Date Mln. Start Start Room Fab Process Fab Prod. Line- Waf. Capacity Capacity (Square Company City Country Name Products Technology Type Begins width Size (4 wka.) (4 wks.) Feet)

Production Begins; 1992 HITACHI LANOSHDT GEttMAHY N/A 4Hb DRAH 25eK N/A » 01/01/92 0.80 e 16,000 778,720 IHb SRAM s- HITSOBISHI KLSDOBF GERMANY N/A 4Hb DRAM HPU CMOS FAT 03/01/92 0.80 6 22,000 602,360 25,0 IHb DRAH

5" TI AVEZZANO ITAIiY PHASE 2 16Hb DRAH CMOS T 02/01/92 0.60 8 20,000 973,400 30,0

I / / 0.80 6 45,000 1,232,100 9 Production Begins: 1993 „ FOJITSn NEWTON AYCLIFFE ENGLAND PHASE 2 4Mb DBAM ASIC CMOS

INTEIi LEIXLIP, KILDARE IRELAND FAB 10 386 486 586 CMOS F 06/01/93 0.80 S 18,000 876,060 30,0 f MPU LOG

HIETEC ALCATEL OODENAARDE BELGIDM FAB 2 ASIC CMOS M2 FAT 07/01/93 0.50 6 5,000 136,900 12,9 P0Ly2 I g Production Begins! 1994 S FtJJITSD NEWTON AYCLIFFE ENGLAND PHASE 3 16Mb DRAM CMOS / / 0.60 a 30,000 1,460,100 g- I Dataquest (October 1990 DataQuest

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( 1 European Plant Locations

The following list gives plant locations for all major semiconductor manufacturing operations in Western Europe. For each company entry, data are provided listing the primary manufacturing activities conducted at each site by major product category. Not all manufacturing steps are performed at every site for every product category shown, but applicable combinations of design, wafer fabrication, assembly, and test are shown for each product category and location. No design activity appears on the matrix unless another manufacturing step also occurs.

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v<0 oo 00 Wwiutaotwrtw) Act o Country Produeta-: 0) Company Tow JNife -Ti&it Asa'y r+ Dc ) Silieoniit Swanaea Wales Discretes, ms LSI n> Standard Electrics Cascala Portugal Discretes CA TAG Zurich Switzerland Discretes Teiefunltan Electronic Braunau Austria Discretes, Opto 3 Teiefunken Electronic Heilbronn O West Germany BPD, Dis, Linear, »03 UI, Opto Telefunken Electronic Vbcklabruqh Austria Discretes, Opto Texas Instrumenta Bedford England Discretes, MOS I£I, Senicuatom Texas Inatrumanta Fraislnq West Germany BPD, Linear, HOS LSI Texas Inatruntents Hoceira Portugal BPD, Linear 0> <-• Tftxas Inatrunenta Rlstl Italy Discretes, HOS LSI Texas Instrunenta VilleneuvB-Loubet France Custom LSI, HOS LSI Texas Instrunents Avezzano Italy Production starts 1992 s. Texat Nice Prance Discretes Toahib*

Source: Da Ma

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European Semiconductor Design Locations

Dataquest Semiconductors Europe > European Semiconductor Design Locations

Source: Dataquest

I Semiconductors Europe i

Published by Dataquest Eurcpe Limited

The content of this report represents our interpretation and analysis of information generally available to the public or released by knowledgeable individuals in the subject industry, but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in confidence by our clients.

Printed in the United Kingdom. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems, or transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or

0009926 >

Table of Contents List of Tables

Page Table Pi^

INTRODUCTION 1 European Semiconductor Design Locations ... 3 DEFINITIONS 2 European Standard Product Design Design Center Locations 10 Design Service 3 European Custom ASIC Design Locations.... 12 Independent Design Service Locations 4 European Cell-Based ASIC Design Standard Products 2 Locations 15 Custom ASIC 2 5 European Gate Array ASIC Design CeU-Based ASIC 2 Locations 21 Gate Array ASIC 2 6 European Discrete and Optoelectronic Discrete or Optoelearonic Produas 2 Design Locations 26

ill European Semiconductor Design Locations i

Introduction development of design tools is such that some design centers are not located with the semicon Currendy 258 semiconductor design locations are ductor manufacturer, and may be with the larger established or under development in Western user of semiconductor products. Design centers Europe. This is a small decrease over the number will have schematic capture, simulation and layout of locations in 1990, when there were 264 design software, and normally have the software for locations. This booklet lists the semiconductor checking the manufacturability of the product in design locations in Tables 1 to 6, and identifies the the design center. locations on the basis of the products designed there. Design Service A design service location has the hardware and Definitions software required to take a design from the initial concept to functional simulation. This site nor The design locations are divided into merchant or mally designs ASICs only, and is usually a work captive locations. Merchant locations are those station and applications engineer providing which design semiconductors for sale to any com design support. The final layout of the device is pany. Captive locations are those which design performed by the semiconductor manufacmrer at semiconductors for use by the parent company his main design center. The semiconductor only, and will not be re-sold as semiconductor manufacturer usually performs the post-layout products to another company. simulation, but he can often provide the post- layout data to allow the engineer to perform post- The design services offered by these locations are layout simulation at his own site. categorized as: Many design service locations are owned by the • Category A: Design Center semiconductor vendors, and they rent w^orkstation time to their customers. However, some of the • Category B: Design Service larger OEMs have invested in their own facilities • Category C: Independent for internal design groups.

The products designed by these locations are categorized as: Independent Design Service Locations An independent design service location is • Category 1: Standard Products equipped with all the hardware and software • Category 2: Custom ASIC required to take a design from the initial concept to functional simulation. The final layout of the • Category 3: Cell-Based ASIC device is normally performed by the semiconduc • Category 4: Gate Array ASIC tor manufacturer, but often the independent centers will have the layout and manufacturability • Category 5: Discrete or Optoelectronic software themselves. The independent locations normally design ASIC products only. These centers are third-party locations, and are not tied Design Center to a single semiconductor vendor. Independent A design center has all the hardware and software centers usually have similar facilities to design design tools required, in addition to the engineer service locations, but can provide additional sys ing resources needed to design standard products tem expertise in product and circuit board design, and ASICs, Design centers are normally the which may not be available at the semiconductor domain of semiconductor manufacturers, but tJie vendor's site. European Semiconductor Design Locations

Standard Products Gate Array ASIC Standard products are those which are sold to Gate array ASICs are devices which are cus i more than one customer by the semiconductor tomized using the final layers of interconnect. manufacturer. Standard products are normally Base wafers with embedded functions such as only designed in major design centers, and these static random access memory are included in this centers are owned by the semiconductor category. Gate array ASICs are sold to a single manufacturer. user only. Products sold to more than one user are standard products. Custom ASIC Discrete or Optoelectronic Products Custom ASICs are products which are manufac tured using a full set of masks, and require man Discrete products are devices which are unit ual placement and routing of the cells during building blocks and perform a fundamental semi design. Custom ASICs are sold to a single user conductor function. Optoelectronic products are only. Products sold to more than one user are semiconductor products in which photons induce standard products. the flow of electrons, or vice versa.

CeU-Based ASIC Cell-based ASICs are devices which are manufac tured using a single set of masks, and use auto matic cell placement and automatic cell routing. Cell-based ASICs are sold to a single user only. Products sold to more than one user are standard products. I

Table 1

European Semiconductor Design Locations—All Center?

Company Location Country Code* 1 4 5 ABB Baden Germany M / • ABB Guildford England M / • • ABB Paris France M • / • ABB Stockholm Sweden M / • Alcatel Norkrets Oslo Norway M • / Analog Devices Cork Eire M • • / / Analog Devices Limerick Eire M • / • Analog Devices Newbury England M / • Ansaldo Genoa Italy M • Anzac Slough England M / • / Ascom—Favag Bevais Switzerland M • / ATAC Diffusion Sevres France M / • / AT&T Bracknell England M / / • / • AT&T Madrid Spain M • • • AT&T Munich Germany M • • Auris Grenoble France M / / • Austria Mikro Systeme Camberley England M • / Austria Mikro Systeme Dresden Germany M / • • • Austria Mikro Systeme Graz Austria M • • • / Britcomp Sales Leatherhead England M / • British Aerospace Bristol England C / • • British Telecom Martlesham England C • / • • Bull SA Clayes-sous-Bois France C • • / Burr-Brown Livingstone Scotland C Bytech Slough England M • • California Devices Paris France M • / Cetehor Besanfon France M • • Compugraph Trappes France M • • • Dectrosuisse Neuchatel Switzerland M • / • • Dectrosuisse Zurich Switzerland M / • • Denyer Walmley Micro Loanhead Scotland M • • • • Dialog Swindon England M • / Dolphin Integration Grenoble France M / • • • DSP Group Givat Shmuel Israel M / Electronique Lyonnaise Lyon France M • • / Elgaplex Waldshut Germany M • • / Elgaplex Wettringen Switzerland M / / • EM Microelectronics Marin Switzerland M / • • • Enatechnic Hamburg Germany M • • Ericsson Components Kista Sweden M • • • • Euridice NA Belgium M • • European Silicon Structures Bracknell England M • • • European Silicon Structures 's-Hertogenbosh Netherlands M • • • European Silicon Structures Milan Italy M / • (Continued)

Table 1 (Continued)

European Semiconductor Design Locations—All Centers

Company Location Country Code' 1 2 3 4 5 A B C European Silicon Structures Munich Germany M • / • Europ>ean Silicon Structures Paris France M / / • Eurosil Eching Germany M • • / • Fujitsu Frankfurt Germany M • / • Fujitsu Maidenhead England M / • • Fujitsu Paris France M • • • Fujitsu West Gorton England M • • • GEC Marconi Chelmsford England M • • GEC Plessey Semiconduaors Brussels Belgium M • / • GEC Plessey Semiconductors Lincoln England M • • / / • • GEC Plessey Semiconductors Milan Italy M • • • GEC Plessey Semiconductors Munich Germany M • / • GEC Plessey Semiconductors Oldham England M • • • • • GEC Plessey Semiconductors Paris France M • • • GEC Plessey Semiconductors Swindon England M • • • / • • GEC Plessey Semiconductors Wembley England M • • Giltspur Micro Newbury England M • / • Goldstar Dublin Eire M • • Gothic Crellon Reading England M • • • Harris Semiconduaor Brussels Belgium M / • • • Harris Semiconductor Camberley England M / • • Harris Semiconduaor Hamburg Germany M / • • Harris Semiconduaor Milan Italy M / • • Harris Semiconduaor Munich Germany M / • • Harris Semiconduaor Paris France M / • • Hitachi Maidenhead England M / • • HMT Brugg Switzerland M • • • • Honeywell Bracknell England M / • • Hughes Glenrothes Scodand M • / • Inmos Bristol England C • • Inmos Newport Wales M • • Intel Haifa Israel M • / • Intel Paris France M • / • International Rectifier Borgaro Torinese Italy M • / ITT Intermetall Freiburg Germany M • • • ITT (BTM) Antwerp Belgium C / • ITT (FACE) Solamo Italy c • • ITT (ITTA) Vienna Austria c • • ITT (SESA) Madrid Spain c • • ITT (SRT) Oslo Norway c • • irr (SRT) Zurich Switzerland c • • Logical Integration Thame England M • / • • LSI Logic Agrate Italy M / • • LSI Logic Biel Switzerland M • • • (Continued)

Table 1 (Continued)

; European Semiconductor Design Ijocations—All Centers

Company Location Cotmtry Code* 1 B LSI Logic Boulogne France M • • LSI Logic Bracknell England M • • LSI Logic Dflsseldorf Germany M • • • LSI Logic Livingstone Scodand M / / LSI Logic Munich Germany M • • • LSI Logic Oslo Norway M • / LSI Logic Oss Netherlands M • / • LSI Logic Stuttgart Germany M • • • LSI Logic Tel Aviv Israel M • / / Lucas Sutton Coldfield England C • • • / Macro Marketing Slough England M • • / • Mastair NA France M / / Matra-MHS Bracknell England M • • / • Matra-MHS Milan Italy M / / Matra-MHS Munich Germany M • / Matra-MHS Nantes France M • • Matra-MHS Paris France M • • Matra-MHS Stockholm Sweden M • • MBB Stuttgart Germany C • • • • • MCE Tewksbury England M • • / • Merlin Gerin Grenoble France C • Micronas Espoo Finland M • • • / • Mietec Brussels Belgium M • • • • Migration Technology Pincheim Germany M • • Mikron Munich Germany M • • Missil Paris France M • • • • Mistral Sermoneta Italy M • Mitel Caldicot Wales C • Mitsubishi Ratingen Germany M • • / Morari Montpelier France M / • • Motorola Aylesbury England M • • Motorola East Kilbride Scodand M • / • / • Motorola Geneva Switzerland M • / • • Motorola Haifa Israel M / • • • Motorola Milan Italy M • • Motorola Munich Germany M • • • Motorola Paris France M • • • Motorola Stockholm Sweden M • • Motorola Toulouse France M • • • • Motorola Eindhoven Netherlands M • / National Semiconduaor Greenock Scotland M • • • • National Semiconductor Milan Italy M • • • National Semiconductor Munich Germany M • • • • National Semiconduaor Paris France M / • • (Continued)

Table 1 (Continued)

European Semiconductor Design Locations—All Centers

Company Location Coiuitry Code* 1 2 3 4 5 A B C National Semiconductor Stockholm Sweden M • / • National Semiconduaor Swindon England M • • • National Semiconduaor Tel Aviv Israel M • / • NCR Maidenhead England M • • NEC Diisseldorf Germany M • / • NEC Eindhoven Germany M • / • NEC Milan Germany M • • / NEC Milton Keynes England M • • / NEC Munich Germany M • / • NEC Paris France M • • / NEC Stockholm Germany M / • • NEC Stuttgan Germany M / / • Newmarket Micro Newmarket England M • / / • Newtek Bordeaux France M / • • Nordic VLSI Trondheim Norway M • • • Norsk Data Oslo Norway C / • / Oki Neuss Germany M • • Olivetti Ivrea Italy C • • • • Panasonic (Matsushita) Bracknell England M • / • Panasonic (Matsushita) Grassbrunn Germany C / • • / PDT-Pynenburg Vught Netherlands M • / • • Philips Eindhoven Netherlands M • • • • • • Philips Milan Italy M / • • Philips Stockholm Sweden M • • • Philips—Fasalec Zurich Switzerland M • • • • Philips (Mullard) Mitcham England M • • • Philips (RTC) Caen France M • • • • • / PhUips (RTC) Paris France M • • • Philips (Valvo) Hamburg Germany M / / • • / Quarndorn Derby England M • • • Qudos Cambridge England M • • • Racal Microelectronics Reading England M • • • Racal Redac Munich Germany M • • • Racal Redac Tewksbury England M • • • Rapid Silicon Reading England M • • • Robert Bosch Reutlingen Germany C • • • • • • S2PI Palaiseau France M • • SAAB Trollattan Sweden M • • • / Sagem Paris France M • • • SDM NA Belgium M • • • • Seiko-Epson Munich Germany M • • • Seiko-Epson Milton Keynes England C • • • Semiconductores NA Spain M • • Semikron Niimbuig Germany M / • (Continued)

Table 1 (Continued)

European Semiconductor Design Locations-^All Centers

Company Location Country (Code * 1 2 3 4 5 A B C Semitron Cricklade England M / • SES Nordlingen Germany M / / SGS-Thomson Agrate Italy M / / • / SGS-Thomson Castelleto Italy M • • • / SGS-Thomson Catania Italy M / / • / SGS-Thomson Grenoble France M • • • • SGS-Thomson Marlow England M • / • • • SGS-Thomson Rennes France M / / / • SGS-Thomson-IST Agrate Italy M / / / SGS-Thomson-IST Grafing Germany M • • / SGS-Thomson-IST Madrid Spain M / • / • SGS-Thomson-IST Paris France M • / / SGS-Thomson-IST Stockholm Sweden M • • / Sharp Hamburg Germany M / • SiCon Linkoping Sweden M • • • Siemens DOsseldorf Germany M / • • / / Siemens Hannover Germany M • / / Siemens Milan Italy M • / / Siemens Munich Germany M / / / / • / Siemens Stuttgart Germany M • / / Siemens Villach Austria M • • • / / Siemens Zurich Switzerland M / / / Sierra Semiconductor 's-Hertogenbosh Netherlands M / • • / Sierra Semiconductor Milan Italy M • • / Sierra Semiconductor Munich Germany M / / / Sigrid Toulon France M • • Silicon and Software Systems Dublin Eire M • / • / Silicon Microsystems Malmesbury England M • / • / Siliconix Swansea Wales M / • / Smartech Oy Tamjjere Finland M • • / Sorep Grenoble France M • / • • Sorep Les Ulis France M • • • / Sorep Rennes France M • • • / STC (Stantel) Sidcup England M / / • / STC (STL) Harlow England C / / • / Swindon Silicon Systems Swindon England M • / • / Symbionics Cambridge England M • • / Sysraic Aix-en^Provence France M • / • System Electronic Vertriebs Braunschweig Germany M / / • / Systems Sud Toulouse France M • / / Tadiran NA Israel M ^ • / Tektronix Marlow England M • • Telefunken Eching Germany M • • • Telic Alcatel Strasbourg France C / / / / (Continued)

Table 1 (Continued)

European Semiconductor Design Locations—All Centers

Company Location Country Code* 1 2 3 4 5 A B C Teimos Munich Germany M • • • Texas Instmmenis Bedford England M • • • • • Texas Instruments Freisiag Germany M • • • • Texas Instruments Hannover Germany M • • • • Texas Instruments Milan Italy M • • • Texas Instruments Villeneuve-Loubet France M • • • Texet Nice France M • • Thomson CSF Aix-en-Provence France M • • / Thomson CSF Grenoble France M / • / • • • Thomson CSF Milan Italy M • / / Thomson CSF Munich Germany M / • Thomson CSF Rousset France M • • • Thomson CSF Tours France M / • Thomson CSF Velizy France M • • • Thomson CSF—-Cetia Toulon France M • • • • • Thomson Electronic Components Basingstoke England M • / TMS Corbevoie France M • TMS Saint-Egrdve France M • • • • • Toshiba Camberley England M • • • Toshiba DOsseldorf Germany M • • • Toshiba Milan Italy M • • • i•^• . Toshiba Munich Germany M • • • Toshiba Paris France M • / • Toshiba Stockholm Sweden M • • • Toshiba Stuttgart Germany M • • • TRW Bordeaux-Lac France M • • Ua-Alcatel Les Ulis France M • • • • t Vaisala Helsinki Finland M • • VDI-Zentrum Berlin Germany M • • • • VLSI Technology Milan Italy M • • • VLSI Technology Milton Keynes England M • • • • • VLSI Technology Munich Germany M • • • • VLSI Technology Paris France M • • • Wolfeon Microelectronics Edinburgh Scotland M • • • • • Zeltron Campformido Italy M • • • • Zymos Offenbach Germany M • Zymos Stockholm Sweden M • • Zymos Welwyn England M • • Garden City • Merchant (M) or Captive (O NA - Not Available Source: Oataquest (October 1991)

Table 2

Eiu-opean Standard Product Design Location

Design Design Independent Company Location Country Code* Center Service Center Analog Devices Cork Eire M AT&T Bracknell England M • Austria Mikro Systeme Graz Austria M • Dolphin Integration Grenoble France M DSP Group Givat Shmuel Israel M • EM Microelectronics Marin Switzerland M / Ericsson Components Kista Sweden M • Eurosil Eching Germany M • GEC Plessey Semiconductors Lincoln England M • GEC Plessey Semiconduaors Oldham England M / GEC Plessey Semiconduaors Swindon England M • Goldstar Dublin Eire M • HMT Brugg Switzerland M Inmos Bristol England C / Inmos Newp)ort Wales M • Intel Paris France M • Intel Haifa Israel M • IVIatra-MHS Nantes France M • MBB Stuttgart Germany C MCE Tewksbury England M • Micronas Espoo Finland M • Mitsubishi Ratingen Germany M Motorola Toulouse France M • Motorola Haifa Israel M • Motorola East Kilbride Scotland M • Motorola Geneva Switzerland M • National Semiconductor Greenock Scotiand M • Nordic VLSI Trondheim Norway M Panasonic (Matsushita) Grassbrunn Germany C • Philips Eindhoven Netherlands M • Philips—^Fasalec Zurich Switzerland M • PhUips (RTC) Caen France M • Philips CValvo) Hamburg Germany M • Robert Bosch Reutlingen Germany C • SGS-Thomson Marlow England M • Siemens Villach Austria M • Siemens DOsseldorf Germany M Siemens Munich Germany M • Sierra Semiconductor 's-Hertogenbosh Netherlands M / Silicon and Software Systems Dublin Eire M / (Continued)

Table 2 (Continued)

European Standard Product Design Location i

Design Design Independent Company Location Country Code* Center Service Center Siliconix Swansea Wales M • Telefunken Eching Germany M • Texas Instruments Bedford England M • Texas Instruments Villeneu ve-Lou bet France M / Thomson CSF Aix-en-Provence France M / Thomson CSF Grenoble France M • Thomson CSF Rousset France M • Thomson CSF—Cetia Toulon France M / TMS Saint Egrdve France M • Vaisala Helsinki Finland M / VLSI Technology Milton Keynes England M • Wolfson Microelearonics Edinburgh Scotland M / Merchant (M) or Captive (C) Source: Dauquest (October 1991)

Table 3

European Ciistom ASIC Design Locations

Design I>esign Independent Company Location Country Code* Center Service Center ABB Baden Germany M • ABB Guildford England M • ABB Paris France M ABB Stockholm Sweden M • Analog Devices Cork Eire M Analog Devices Limerick Eire M • Analog Devices Newbury England M • Ascom—^Favag Bevais Switzerland M AT&T Bracknell England M AT&T Madrid Spain M • AT&T Munich Germany M Auris Grenoble France M Austria Mikro Systeme Camberley England M • Austria Mikro Systeme Dresden Germany M • Austria Mikro Systeme Graz Austria M • British Telecom Martlesham England C Bull SA Clayes-sous-Bois France C Compugraph Trapf)es France M • Dectrosuisse NeuchStel Switzerland M Dectrosuisse Zurich Switzerland M • Denyer Walmley Micro Loanhead Scotland M Dialog Swindon England M Dolphin Integration Grenoble France M EM Microelectronics Marin Switzerland M Ericsson Components Kista Sweden M • Eurosil Eching Germany M • Fujitsu Maidenhead England M Fujitsu Paris France M • Fujitsu West Gorton England M • GEO Plessey Semiconductors Brussels Belgium M • GEC Plessey Semiconduaors Lincoln England M • GEC Plessey Semiconductors Oldham England M • GEC Plessey Semiconductors Paris France M GEC Plessey Semiconductors Swindon England M • HMT Brugg Switzerland M Hughes Glenrothes Scotland M • ITT Intermetall Freiburg Germany M ITT CBTM) Antwerp Belgium C • m* (FACE) Solamo Italy C • ITT aTTA) Vienna Austria c • (Continued)

Table 3 (Continued) European Custom ASIC Design Locations I Design Design Independent Company Location Coimtry Code* Center Service Center ITT (SESA) Madrid Spain C • ITT (SRT) Oslo Norway C • ITT (SRT) Zurich Switzerland C • Logical Integration Thame England M • Lucas Sutton Coldfield England C • Macro Marketing Slough England M • Matra-MHS Bracknell England M / Matra-iVIHS Nantes France M / MBB Stuttgart Germany C • MCE Tewksbury England M • Micronas Espoo Finland M • Mietec Brussels Belgium M • Missil Paris France M • Mitel Caldicot Wales C • Morari Montpelier France M / Motorola East Kilbride Scotland M • Motorola Geneva Switzerland M • Motorola Toulouse France M • National Semiconductor Greenock Scotland M • I National SemiconduCTor Munich Germany M • National Semiconduaor Swindon England M / Newmarket Micro Newmarket England M • Olivetti Ivrea Italy C • Panasonic (Matsushita) Bracknell England M • Panasonic (Matsushita) Grassbrunn Germany C • PDT-Pynenburg Vught Netherlands M • Philips Eindhoven Netherlands M • Philips—^Fasalec Zurich Switzerland M • Philips (RTC) Caen France M • Philips (Valvo) Hamburg Germany M • Robert Bosch Reutlingen Germany C • SAAB TroUattan Sweden M • SDM NA Belgium M • SGS-Thomson Agrate Italy M • SGS-Thomson Castelleto Italy M • SGS-Thomson Catania Italy M • SGS-Thomson Grenoble France M • SGS-Thomson Marlow England M • SGS-Thomson Rennes France M • SGS-Thomson-IST Madrid Spain M • (Continued) i

Table 3 (Continued)

European Custom ASIC Design Locations

Design Design Independent Company Location Country Code' Center Service Center Siemens Dasseldorf Germany M / Siemens Munich Germany M • Siemens Villach Austria M • Sierra Semiconduaor 's-Hertogenbosh Netherlands M / Sierra Semiconduaor Milan Italy M • Sierra Semiconductor Munich Germany M • Sigrid Toulon France M • Silicon and Software Systems Dublin Eire M • Silicon Microsystems Malmesbury England M • Siliconix Swansea Wales M • Sorep Grenoble France M • Sorep Les Ulis France M • Sorep Rennes France M • STC (Stantel) Sidcup England M / STC (STL) Harlow England C • Swindon Silicon Systems Swindon England M • Symbionics Cambridge England M • System Electronic Vertriebs Braunschweig Germany M • Telefunken Eching Germany M • Telic Alcatel Strasbourg France C • Telmos Munich Germany M • Texas Instruments Bedford England M • Texas Instruments Freising Germany M / Texas Instruments Hannover Germany M • Texas Instruments Villeneuve-Loubet France M / Thomson CSF Grenoble France M / Thomson CSF Rousset France M / Thomson CSF—Cetia Toulon France M • TMS Saint Egrdve France M / Toshiba Diisseldorf Germany M • UCI-Alcatel Les Ulis France M • VLSI Technology Milton Keynes England M / VLSI Technology Munich Germany M • VLSI Technology Paris France M • Wolfson Microelectronics Edinburgh Scotland M y Zeltron Campformido Italy M • Merchaiu OD or CapUve (C) NA - Not Available Source: E>aCaquest (October 1991)

Table 4

European Cell-Based ASIC Design Locations

Design Design Independent Company Location Country Code* Center Service Center ABB Guildford England M • ABB Paris France M • Alcatel Norkrets Oslo Norway M Analog Devices Cork Eire M • Analog Devices Limerick Eire M • Analog Devices Newbury England M Anzac Slough England M • ATAC Diffusion Sevres France M AT&T Bracknell England M • AT&T Madrid Spain M • AT&T Munich Germany M Auris Grenoble France M Austria Mikro Systeme Camberley England M • Austria Mikro Systeme Dresden Germany M • Austria Mikro Systeme Graz Austria M • Britcomp Sales Leatherhead England M British Aerospace Bristol England C British Telecom Martlesham England C • Bull SA Clayes-sous-Bois France C Bytech Slough England M California Devices Paris France M • Cetehor Besanfon France M • Compugraph Trapfjes France M • Dectrosuisse Neuchatel Switzerland M / Dectrosuisse Zurich Switzerland M / Denyer Walmley Micro Loanhead Scotland M / Dialog Swindon England M Dolphin Integration Grenoble France M • Electronique Lyonnaise Lyon France M • Elgaplex Waldshut Germany M • Sgaplex Wettringen Switzerland M • EM Microelectronics Marin Switzerland M Enatechnic Hamburg Germany M Ericsson Components Kista Sweden M Euridice NA Belgium M European Silicon Structures Bracknell England M / European Silicon Structures 's-Hertogenbosh Netherlands M / European Silicon Structures Milan Italy M • Eurojjean Silicon Structures Munich Germany M Eurofjean Silicon Structures Paris France M • Fujitsu Frankfurt Germany M • Fujitsu Maidenhead England M • Fujitsu Paris France M • (Continued)

Table 4 (Continued)

European Cell-Based ASIC Design Locations

Design Design Independent Company Location Country Code* Center Service Center Fujitsu West Gorton England M • GEC Marconi Chelmsford England M • GEO Plessey Semiconductors Brussels Belgium M • GEC Plessey Semiconductors Lincoln England M / GEC Plessey Semiconductors MUan Italy M • GEC Plessey Semiconductors Munich Germany M / GEC Plessey Semiconductors Oldham England M / GEC Plessey Semiconductors Paris France M / GEC Plessey Semiconduaors Swindon England M / GEC Plessey Semiconduaors Wembley England M / Giltspur Micro Newbury England M • Gothic Crellon Reading England M • Harris Semiconductor Brussels Belgium M • Harris Semiconductor Camberley England M • Harris Semiconduaor Hamburg Germany M / Harris Semiconduaor Milan Italy M • Harris Semiconduaor Munich Germany M • Harris Semiconduaor Paris France M • Hitachi Maidenhead England M • Honeywell Bracknell England M • Hughes Glenrothes Scotland M • Intel Haifa Israel M • Intel Paris France M • Logical Integration Thame England M • LSI Logic Agrate Italy M / LSI Logic Biel Switzerland M • LSI Logic Boulogne France M • LSI Logic Bracknell England M • LSI Logic DOsseldorf Germany M • LSI Logic Livingstone Scotland M • LSI Logic Munich Germany M • LSI Logic Oslo Norway M • LSI Logic Oss Netherlands M • LSI Logic Stuttgart Germany M • LSI Logic Tel Aviv Israel M • Lucas Sutton Coldfield England C • Macro Marketing Slough England M • Mastair NA France M • Matra-MHS Bracknell England M • MBB Stuttgart Germany C • MCE Tewksbury England M • Meriin Gerin Grenoble France C • Microtias Espoo Finland M / (Continued)

Table 4 (Continued)

European Cell-Based ASIC Design Locations

Design Design Independent Company Location Country Code* Center Service Center Mietec Brussels Belgium M • Migration Technology Pincheim Germany M Mikron Munich Germany M • Missil Paris France M • Mitsubishi Ratingen Germany M • Morari Montpelier France M Motorola Aylesbury England M Motorola East Kilbride Scotland M • Motorola Geneva Switzerland M Motorola Haifa Israel M • Motorola Milan Italy M Motorola Munich Germany M • Motorola Paris France M Motorola Stockholm Sweden M • Motorola Toulouse France M • Motorola Eindhoven Netherlands M National Semiconductor Greenock Scotland M • National Semiconductor Milan Italy M • National Semiconductor Munich Germany M / National Semiconductor Paris France M / National Semiconductor Stockholm Sweden M • I National Semiconductor Swindon England M • National Semiconductor Tel Aviv Israel M • NCR Maidenhead England M NEC DOsseldorf Germany M NEC Eindhoven Germany M • NEC Milan Germany M • NEC Milton Keynes England M • NEC Munich Germany M • NEC Paris France M • NEC Stockholm Germany M • NEC Stuttgart Germany M • Newmarket Micro Newmarket England M • Newtek Bordeaux France M • Nordic VLSI Trondheim Norway M • Norsk Data Oslo Norway C • Olivetti Ivrea Italy C • Panasonic (Matsushita) Bracknell England M Panasonic (Matsushita) Grassbrunn Germany C • PDT-Pynenburg Vught Netherlands M Philips Eindhoven Netherlands M Philips Milan Italy M • Philips Stockholm Sweden M (Continued) i

Table 4 (Continued)

European Cell-Based ASIC Design Locations

Design Design Independent Company Location Country Code' Center Service Center Philips—^Fasalec Zurich Switzerland M • Philips (MuUard) Mitcham England M • Philips (RTC) Caen France M • Philips (RTC) Paris France M • Philips (Valvo) Hamburg Germany M • Quarndom Derby England M / Qudos Cambridge England M • Racal Microelectronics Reading England M • Racal Redac Munich Germany M • Racal Redac Tewksbury England M / Rapid Silicon Reading England M / Robert Bosch Reutlingen Germany C / SAAB TroUattan Sweden M / Sagem Paris France M • SDM NA Belgium M • Seiko-Epson Munich Germany M / Seiko-Epson Milton Keynes England C • Semiconduaores NA Spain M • SES Nordlingen Germany M • SGS-Thomson Agrate Italy M • SGS-Thomson Castelleto Italy M / SGS-Thomson Catania Italy M • SGS-Thomson Grenoble France M • SGS-Thomson Marlow England M • SGS-Thomson Rennes France M • SGS-Thomson-IST Agrate Italy M • SGS-Thomson-IST Grafing Germany M • SGS-Thomson-IST Madrid Spain M • SGS-Thomson-IST Paris France M • SGS-Thomson-IST Stockholm Sweden M / SiCon Linkoping Sweden M ^ Siemens Dusseldorf Germany M • Siemens Hannover Germany M • Siemens Milan Italy M • Siemens Munich Germany M / Siemens Stuttgart Germany M / Siemens Villach Austria M • Siemens Zurich Switzerland M • Sierra Semiconduaor 's-Hertogenbosh Netherlands M / Sierra Semiconduaor Milan Italy M • Sierra Semiconductor Munich Germany M / Silicon and Software Systems Dublin Eire M • Silicon Microsystems Malmesbury England M / (Continued)

Table 4 (Continued)

European Cell-Based ASIC Design Locations

Design Design Independent Company Location Country Code* Center Service Center Smartech Oy Tampere Finland M • Sorep Grenoble France M • Sorep Les Ulis France M / Sorep Rennes France M • STC (Stantel) Sidcup England M • STC (STL) Harlow England C • Swindon Silicon Systems Swindon England M • Symbionics Cambridge England M • Sysmic Aix-en-Provence France M / System Electronic Vertriebs Braunschweig Germany M / Systems Sud Toulouse France M • Tadiran NA Israel M • Telic Alcatel Strasbourg France c • Texas Instruments Bedford England M / Texas Instruments Freising Germany M • Texas Instruments Hannover Germany M • Texas Instruments Milan Italy M • Thomson CSF Grenoble France M • Thomson CSF Milan Italy M • Thomson CSF Velizy France M • Thomson CSF—Cetia Toulon France M • TMS Corbevoie France M • TMS Saint Egrdve France M • Toshiba Camberley England M • Toshiba Dusseldorf Germany M • Toshiba Milan Italy M • Toshiba Munich Germany M / Toshiba Paris France M • Toshiba Stockholm Sweden M • Toshiba Stuttgart Germany M • Ua-Alcatel Les Ulis France M • A'DI-Zentrum Berlin Germany M • VLSI Technology Milan Italy M • VLSI Technology Milton Keynes England M • VLSI Technology Munich Germany M • VLSI Technology Paris France M / Wolfson Microelectronics Edinburgh Scotland M • Zeltron Campformido Italy M • Zymos Offenbach Germany M • Zymos Stockholm Sweden M / Zymos Welwyn England M • Garden City • Merchant (M) or Captive (O NA - Not Available Source: Dataquest (October 1991)

Table 5

European Gate Array ASIC Design Locations

Design Design Independent Company Location Country Code* Center Service Center Anzac Slough England M • ATAC Diffusion Sevres France M • AT&T Bracknell England M • Auris Grenoble France M • Austria Mikro Systeme Dresden Germany M • Austria Mikro Systeme Graz Austria M • Britcomp Sales Leatherhead England M • British Aerospace Bristol England C • British Telecom Martiesham England C • Bull SA Clayes-sous-Bois France C • Bytech Slough England M • California Devices Paris France M • Compugraph Trapp>es France M • Dectrosuisse Neuchatel Switzerland M • Dectrosuisse Zurich Switzerland M / Denyer Walmley Micro Loanhead Scotland M • Dolphin Integration Grenoble France M • Electronique Lyonnaise Lyon France M • Elgaplex Waldshut Germany M • Elgaplex "Wettringen Switzerland M • EM Microelectronics Marin Switzerland M • Enatechnic Hamburg Germany M • Ericsson Components Kista Sweden M • Euridice NA Belgium M • European Silicon Structures Bracknell England M • European Silicon Structures 's-Hertogenbosh Netherlands M • Europ)ean Silicon Structures Milan Italy M • European Silicon Structures Munich Germany M • European Silicon Structures Paris France M • Eurosil Eching Germany M • Fujitsu Frankfurt Germany M • GEC Plessey Semiconduaors Lincoln England M • GEC Plessey Semiconductors Milan Italy M • GEC Plessey Semiconduaors Munich Germany M • GEC Plessey Semiconductors Oldham England M • GEC Plessey Semiconduaors Swindon England M • Giltspur Micro Newbury England M / Gothic Crellon Reading England M / Harris Semiconduaor Brussels Belgium M • Harris Semiconduaor Camberley England M / (Continued)

Design Des^n Independent Company Location Coimtry Code* Center Service Center Harris Semiconductor Hamburg Germany M • Harris Semiconductor Milan Italy M • Harris Semiconductor Munich Germany M • Harris Semiconductor Paris France M • Hitachi Maidenhead England M • HMT Brugg Switzerland M • Honeywell Bracknell England M Logical Integration Thame England M LSI Logic Agrate Italy M • LSI Logic Biel Switzerland M • LSI Logic Boulogne France M • LSI Logic Bracknell England M LSI Logic Dusseldorf Germany M • LSI Logic Livingstone Scotland M • LSI Logic Munich Germany M LSI Logic Oslo Norway M • LSI Logic Oss Netherlands M • LSI Logic Stuttgart Germany M • LSI Logic Tel Aviv Israel M • I Lucas Sutton Coldfield England C • Macro Marketing Slough England M • Mastair NA France M • Matra-MHS Bracknell England M • Matra-MHS Milan Italy M • Matra-MHS Munich Germany M • Matra-MHS Paris France M • Matra-MHS Stockholm Sweden M • MBB Stuttgart Germany C • MCE Tewksbury England M • Microtias Espoo Finland M • Mietec Brussels Belgium M • Migration Technology Pincheim Germany M • Mikron Munich Germany M • Missil Paris France M • Mitsubishi Ratingen Germany M • Morari Montpelier France M Motorola Aylesbury England M • Motorola East Kilbride Scotland M • Motoitjla Geneva Switzerland M • Motorola Haifa Israel M • € (Continued)

Table 5 (Continued)

European Gate Array ASIC Design Locations

Design Design Independent Company Location Country Code* Center Service Center Motorola Milan Italy M • Motorola Munich Germany M / Motorola Paris France M • Motorola Stockholm Sweden M • Motorola Toulouse France M / Motorola Eindhoven Netherlands M / National Semiconductor Greenock Scotland M • National Semiconductor Milan Italy M / National Semiconduaor Munich Germany M / National Semiconductor Paris France M / National Semiconductor Stockholm Sweden M / National Semiconduaor Tel Aviv Israel M • NEC Diisseldorf Germany M / NEC Eindhoven Germany M • NEC Milan Germany M / NEC Milton Keynes England M • NEC Munich Germany M • NEC Paris France M • NEC Stockholm Germany M • NEC Stuttgart Germany M • Newmarket Micro Newmarket England M • Newtek Bordeaux France M / Norsk Data Oslo Norway C • Oki Neuss Germany M • Olivetti Ivrea Italy C • PDT-Pynenburg Vught Netherlands M • Philips Eindhoven Netherlands M • Philips Milan Italy M • Philips Stockholm Sweden M • Philips (MuUard) Mitcham England M • Philips (RTC) Caen France M • Philips (RTC) Paris France M • Philips (Valvo) Hamburg Germany M • Quamdom Derby England M • Qudos Cambridge England M • Racal Microelectronics Reading England M • Racal Redac Munich Germany M • Racal Redac Tewksbury England M / Rapid Silicon Reading England M / Robert Bosch Reutlingen Germany C • (Continued)

Table 5 (Continued)

European Gate Array ASIC Design Locations

Design Design Independent Company Location Country Code* Center Service Center S2PI Palaiseau France M • SAAB TroUattan Sweden M • Sagem Paris France M / SDM NA Belgium M • Seiko-Epson Munich Germany M / Seiko-Epson Milton Keynes England C • SGS-Thomson Agrate Italy M • SGS-Thomson Castelleto Italy M • SGS-Thomson Catania Italy M • SGS-Thomson Grenoble France M • SGS-Thomson Marlow England M • SGS-Thomson Rennes France M • SGS-Thomson-IST Agrate Italy M • SGS-Thomson-IST Grafing Germany M • SGS-Thomson-IST Madrid Spain M • SGS-Thomson-IST Paris France M • SGS-Thomson-IST Stockholm Sweden M • Sharp Hamburg Germany M • SiCon Linkoping Sweden M • Siemens Diisseldorf Germany M • Siemens Hannover Germany M • Siemens Milan Italy M / Siemens Munich Germany M • Siemens Stuttgart Germany M • Siemens Villach Austria M • Siemens Zurich Switzerland M • Silicon Microsystems Malmesbury England M • Smartech Oy Tamjjere Finland M • Sorep Grenoble France M • Sorep Les Ulis France M • Sorep Rennes France M • STC (Stantel) Sidcup England M • STC (STL) Harlow England C • Swindon Silicon Systems Swindon England M • Sysmic Aix-en-Provence France M • System Electronic Vertriebs Braunschweig Germany M • Systems Sud Toulouse France M • Tadiran NA Israel M • Tekoronix Marlow England M / Telic Alcatel Strasbourg France C • (Continued)

Table 5 (Continued)

European Gate Array ASIC Design Locations

Design Design Independent Company Location Country Code* Center Service Center Telmos Munich Germany M / Texas Instalments Bedford England M • Texas Instruments Freising Germany M • Texas Instruments Hannover Germany M • Texas Instruments Milan Italy M • Thomson CSF Grenoble France M • Thomson CSF Milan Italy M • Thomson CSF Munich Germany M / Thomson CSF Velizy France M / Thomson CSF—Cetia Toulon France M • Thomson Electronic Components Basingstoke England M • TMS Saint Egrdve France M • Toshiba Camberley England M / Toshiba Dtisseldorf Germany M • Toshiba Milan Italy M • Toshiba Munich Germany M / Toshiba Paris France M • Toshiba Stockholm Sweden M / Toshiba Stuttgan Germany M / ua-Alcatel Les Ulis France M • VDI-Zentrum Berlin Germany M • VLSI Technology Milan Italy M • VLSI Technology Milton Keynes England M • VLSI Technology Munich Germany M / VLSI Technology Paris France M • Wolfson Microelectronics Edinburgh Scotland M / Zeltron Campformido Italy M / Meidiani or Captive (O NA - Not Available Source: Dataquest (October 1991)

Design Design Independent Company Location Country Code' Center Service Center ABB Baden Germany M • ABB Stockholm Sweden M / Ansaldo Genoa Italy M • British Telecom Martlesham England C / Burr-Brown Livingstone Scotland C • GEC Plessey Semiconductors Lincoln England M • GEC Plessey Semiconductors Swindon England M / Harris Semiconductor Brussels Belgium M • International Rectifier Borgaro Torinese Italy M ITT Intermetall Freiburg Germany M / Mistral Sermoneta Italy M Motorola Toulouse France M • Philips Eindhoven Netherlands M • Philips (RTC) Caen France M / Robert Bosch Reutlingen Germany C • Semikron NOmburg Germany M • Semitron Cricklade England M • Siemens Munich Germany M / i Texet Nice France M • Thomson CSF Aix-en-Provence France M Thomson CSF Grenoble France M • Thomson CSF Tours France M • TRW Bordeaux-Lac France M VDI-Zentrum Berlin Germany M • Merchant (M) or Captive (C) Source: Dataquest (October 1991)

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i (WC»»26 2 European Design Service Locations

Currently, 264 semiconductor design service locations are established or under development in Western Europe; of these locations, 22 are captive and 242 are merchant The locations can be divided into three categories, which Dataquest identifies as follows: • Category A: Design Center - A full design center has all the hardware and software design tools, in addition to engineering resources, necessary to design standard products as well as ASICs. - Design centers are the domain of semiconductor manufacturers, although the semiconductors produced may be for merchant or captive consumption. - There are 78 design centers in Europe. • Category B: Design Service Locations - A design service location is equipped with workstations capable of performing design, schematic capture, and functional simulation of a device. By far the majority of design service locations are used for designing ASIC gate arrays for cell-based ICs (CBICs). - Most design service locations are owned by semiconductor vendors that rent workstation time to customers for a fee; however, some of the larger OEMs have invested in their own facilities for internal design groups (e.g.. Bull, Lucas, MBB, and Olivetti). Essentially, these are captive design service locations. - There are 147 design service locations in Europe. • Category C: Independent Design Service Locations - An independent design service location is equipped with workstations capable of performing design, schematic capture, and functional simulation of a device. However, the location is owned by a third party independent of semiconductor vendors and is not dedicated to a specific OEM. - Third-party design services provide training and rent workstation time for ASIC gate array and cell-based IC (CBIC) design. They tend to support several vendors' ASIC products. - There are 39 independent design service locations in Europe. Table 2-1 lists European design service locations for worldwide semiconductor companies. Each company listing shows the major products designed and type of design performed at each site for both merchant and captive manufacturers.

Table 2-1 European Semiconductor Design Service Locations Type of Product Design Category Service Company Location Country Code* 1 2 3 4 5 A B C

ABB Baden West Germany M X X ABB Stockholm Sweden R! ' X X X AMCC Basingstoke England M X X X AMCC Milan Italy M X X X AMCC Munich West Germany M X X X AMCC Orsay France M X X X AMCC Stockholm Sweden M X X X AMCC Tel Aviv Israel M X X X Analog Devices Limerick Ireland M X X X X Analog Devices Newbury England M X X X Ansaldo Goioa Italy M X X ATAC Diffusion Sevres France M X X X AT&T Bracknell England M X X X AT&T Madrid Spain M X X X AT&T Munich West Germany M X X X Auris Grenoble France M X X X X Austria Mikro Systeme Graz Austria M X X X X X Austria Mikro Systeme Milan Italy M X X X X Austria Mikro Systeme Munich West Germany M X X X X Austria Mikro Systeme Paris France M X X X X Austria Mikro Systeme Stockholm Sweden M X X X X Austria Mikro Systeme Swindon England M X X X X British Telecom Martlesham England C X X X X X Bull SA Clayes-Sous-Bois France C X X X X Burr-Brown Livingstone Scotland C X X Califoniia Devices Paris France M X X X Cetehor Besancon France M X X Cetia Les-Ullis Toulon France M X X X X Compugraph Trappes France M X X X X Cotec Bordeaux France M X X Dectrosuisse Neuchatel Switzerland M X X X Denyer Walmsley Micro Loanhead Scotland M X X X X Dolphin Integration Grenoble France M X X X Electr(»uque Lycsmaise Lyon France M X X X Ericsson Components Kista Sweden M X X X X X European Silicon Structures Amsterdam Netherlands M X X X X European Silicon Structures Bracknell England M X X X X European Silicon Structures Gothenbeig Sweden M X X X X European Silicon Structures Milan Italy M X X X X European Silicon Structures Munich West Germany M X X X X European Silicon Structures Paris France M X X X X Eurosil Eching West Germany M X X X X (Continued)

Table 2-1 (Continued)

European Semiconductor Design Service Locations

Type of Product. Design Category Service Company Location Country Code' 1 2 3 4 5 A B C Faselec Zurich Switzerland M X :t. Favag Bevaix Switzerland M • X X Fujitsu Frankfurt West Germany M X X X Fujitsu Maidenhead England M X X X Fujitsu Paris France ^ M X X X Fujitsu West Gorton England M X X X X Giltspur Micro Newbury England M X X Hands Semiconductor Brussels Belgium M X X X X Hairis Semiconductor Camberley England M X X X Hanis Semiccmductor Hamburg West Germany M X X X Harris Semiconductor Milan Italy M X X X Harris Semiconductor Munich West Germsmy M X X X Harris Semiconductor Paris France M X X X Hitachi Munich West Germany M X X X Hitachi Watford England M X X X HMT Brugg Switzerland M X X X X Honeywell Bracknell England M X X X HonejrweU Newh(»ise Scodand M X X X Hughes Glenrothes Scotland M X X X Hu^es Weybridge England M X X X IBM Bordeaux France C X X X roM Stuttgart West Germany C X X X X X IMI Basingstoke England M X X X Bvn Munich West Germany M X X X IMI Paris France M X X X IMI Tel Aviv Israel M X X X IMI Trieste Italy M X X X IMP Munich West Germany M X X X X IMP Swindon England M X X X X Inmos Bristol &igland M X X X X Inmos Newport Wales M X X X X Intel Haifa Israel M X X Intel Paris France M X X X X Intel Swindon England M X X X X International Rectifier Boigaro Torinese Italy M X X International Rectifier Oxted England M X X m Semiconductors Freiberg West Germany M X X X X nr (BTM) Antwerp Belgium C X X ITT (FACE) Solamo Italy C X X nr (ITTA) Vienna Austria C X X rrr (SESA) Madrid Spain C X X m (SRT) Oslo Norway C X X (CoQtmued)

Table 2-1 (Continued)

European Semiconductor Design Service Locations

Type of Product Design Category* Service Company Location Country Code* 1 2 3 4 5 A B C

nr (SRT) Zurich Switzerland C X X LSI Logic Agrate Italy M ' X X X LSI Logic Biel Switzerland M X X X LSI Logic Boulogne France M X X X LSI Logic Bracknell England M X X X LSI Logic Dusseldorf West Gemiany M X X X LSI Logic Livingstone - Scotland M X X X LSI Logic Munich West Germany M X X X LSI Logic Oslo Norway M X X X LSI Logic Oss Netherlands M X X X LSI Logic Sidcup England M X X X LSI Logic Stuttgart West Germany M X X X LSI Logic Tel Aviv Israel M X X X LTC Paris France C X X Lucas Sutton Coldfield England C X X Marco Marketing Slough England M X X X Mastair To Be Announced France M X X X Matra-MHS Bracknell England M X X X X Matra-MHS Milan Italy M X X Matra-MHS Munich West Germany M X X Matra-MHS Nantes France M X X X Matra-MHS Paris France M X X Matra-MHS Stockholm Sweden M X X MBB Smttgart West Germany C X X X X X MCE Tewkesbury England M X X X X MEDL Lincoln England M X X X X X X MEDL Wembley England M X X X X X X MEM Marin Switzerland M X X X X X Mexlin Gerin Grenoble France M X X X Micronas Helsinki Finland M/C X X X X X Mietec Bracknell England M X X X Mietec Brussels Belgium M X X X X Mietec Munich West Germany M X X X Mietec Paris France M X X X Mikron Mimich West Germany M X X X MUU Rungis France M X X X X Mistral Sermoneta Italy M X X Mitel Caldicot Wales M X X Mitsubishi Ratingen West Germany M X X X X Morari Montpellier France M X X X X Motorola Aylesbury England M X X X Motorola East Kilbride Scotland M X X X X X (Contiaued)

Table 2-1 (Continued)

European Semiconductor Design Service Locations

Type of Product Design Category Service Company Location Country Code* 1 2 3 4 5 A B C

Motorola Geneva Switzerland M X X X X X Motorola Haifa Israel M ' * X X X X Motorola Milan Italy M X X X Motorola Munich Wea Germany M X X X Motorola Paris France M X X X Motorola Stocldiolm Sweden M X X X Mc^rola Toulouse France M X X X X X X National Semiconductor Greenock Scotland M/C X X X X X National SemiconductOT Milan Italy M X X X N^onal SemiconductcH' Munich West Germany M X X X X N^onal SoniconductOT Paris France M X X X National S^niconductor Stockholm Sweden M X X X Natiimal Semiconductor Swindon England M X X X National Semiconductor Tel Aviv Israel M X X X NCR Maidenhead &igland M X X NEC Dusseldoif West Germany M X X X NEC Eindhoven Netherlands M X X X NEC Milan Italy M X X X NEC Milton Keynes England M X X X NEC Munich West Germany M X X X NEC Paris France M X X X NEC Stockholm Sweden M X X X NEC Stuttgart West G^many M X X X Neohm Turin Italy M X X Newmarket Micro Newmarket England M X X Newtek Bordeaux France M X X X Norsk Data Oslo Norway C X X X Olivetti Ivrea Italy C X X X X Panasonic (Matsushita) Bracknell Bigland M X X X X Philips Eindhoven Netherlands M X X X X X X Hulips Milan Italy M X X X Philips Stockholm Sweden M X X X Philips (Mullard) Mitcham England M X X X Philips (RTQ Caen Cedex France M X X X X X X Philips (RTQ Paris France M X X X Philips (Volvo) Hamburg West Germany M X X X X X Plessey Brussels Belgium M X X X Plessey Caswell England M X X X X X X Plessey Leini Italy M X X X Plessey Munich West Gnmany M X X X Plessey Swindon England M X X X X X X Plessey/Ferranti Oldham England M X X X X X (Cootmued)

Table 2-1 (Continued)

European Semiconductor Design Service Locations Type of Product Design Category Service Company Location Country Code* 1 2 3 4 5 A B C

Plessey/Fetranti Paris France M X X Precisi.'-n Monolithics Cork Ireland M X: X PDT-Pynenburg To Be Announced Netherlands M X X X PYE TMC Malmesbury England M X X X X Quamdon Derby England M . X X X Qudos Cambridge England M X X X Racal Microelectronics Reading England M X X X Racal Redac Munich West Germany M X X X Racal Redac Tewkesbury England M X X X Rapid Silicon High 'SN^ccMnbe England M X X X Robot Bosch Reutlingen West Germany C X X X X X X S2PI Palaiseau France M X X SAAB Trollattan Sweden M X X X X Sagem Paris France M X X X SDMF Rungis France M X X X X Semikron Cricklade England M X X Semikron Nuremburg West Germany M X X SGS-Thomson Agrate Italy M X X X X SGS-Thomson Castelletto Italy M X X X X SGS-Thomson Catania Italy M X X X SGS-Thomson Grenoble France M X X X X SGS-Thomson Marlow England M X X X X SGS-Thomson Rennes France M X X X X SGS-Thomson—1ST Agrate Italy M X X X SGS-Thomson—1ST Grafing West Germany M X X X SGS-Thomsoit—1ST Paris France M X X X SGS-Thomson—1ST Madrid Spain M X X X X X SGS ThomscMi—1ST Stockholm Sweden M X X X Seiko-EpscHi Milt<»i Keynes &igland C X X X Siemens Dusseldorf West Germany M X X X X X Si^nens Hannover West Germany M X X X Siemens Milan Italy M X X X Siemens Munich West Germany M X X X X X X Siem

Table 2-1 (Continued)

European Semiconductor Design Service Locations Type of Product Design Category Service Company Location Country Code* 1 2 3 4 5 A B c Siliconix Swansea Wales M X X X S(H^ Grenotde France M ' X X X X Sorep Les mils France M X X X X Sorep Rennes France M X X X X STC (Stantel) Sidcup Sweden M X X X X STC (STL) Hariow England C X X X X Swindon Siliccm Systems Swindon England M X X X X Sysmic Aix-En-Provence France M X X X Systons Sud Toulouse France M X X X Tadiran To Be Announced Israel M X X X TAG Zurich Switzerland M X X Tektronix Marlow England M X X TddCunken Elching West Germany M X X X Telefuiyeoi Heilbroim West Gomany M X X X X Telle Alcatel Strasbourg France C X X X X Telmos Munich West Germany M X X X Texas Instruments Bedford England M X X X X X X Texas Instruments Rieti Italy M X X X X X Texas Instiuments Franldurt West Germany M X X X Texas Instniments Freising West Gramaiy M X X X X X Texas Instruments Hannover West Germany M X X X Texas Instrumraits Milan Italy M X X X Texas Instruments Stockholm Swedoi M X X X Texas bistruments Velizy France -M X X X Texas Instruments Villeneuve-Loubet France M X X X X X Texet Nice France M X X TTiomson-CSF Aix-En-Provence France M X X X Thomson-CSF Basingstoke &igland M X X X Thomson-CSF Grenoble France M X X X X X X Thomson-CSF Milan Italy M X X X Thomson-CSF Munich West Germany M X X X Thomson-CSF Rousset Frsmce M X X X Thomson-CSF Saint Egreve France M X X X Thomson-CSF Toure France M X X Thomson-CSF Velizy France M X X X Toshiba Camberley England M X X X Toshiba Dusseldorf West Germany M X X X Toshiba Milan Italy M X X X Toshiba Munich West Germany M X X X Toshiba Paris France M X X X Toshiba Stockholm Sweden M X X X TRW Bordeaux-Lac France M X X (Cootinued)

Table 2-1 (Continued)

European Semiconductor Design Service Locations

Type of Product Design Category Service Company Location Country Code* 1 2 3 4 5 ABC

Ua-Alcatel Les Ullis France M X X X X Vaisala Helsinki Finland M X- X VDI Zentrum Berlin West Germany M X X X X VLSI Technology Milan Italy M X X X VLSI Tecbnology Milton Keynes England M X X X X VLSI Technology Munich West Germany M X X X X VLSI Technology Paris France M X X X X Westcode Chippenham England M X X Wolfson Microelectronics Edinbuigh Scotland M X X X X Zeltron Campformido Italy M X X X X ZyMOS Offenbach West Gennany M X X ZyMOS StocJdiolm Sweden M X X ZyMOS Welwyn Gdn. City England M X X

'Code ^Product Category *iype of Design Service

M = Merchant 1 = Standard integrated circuits A ••B Design center C = Captive 2 s Custom circuits B =B Design service

3 = Standard cells C ••= Independoit: design service 4 = Gate arrays locations 5 3s Discretes and optoelectronics Soiuce: Dataquest (June 1990)

4 Company Profiles

This section provides an overview of major semiconductor suppliers' activities in Europe. Profiles of European suppliers provide an in-depth analysis of corporate and semiconductor operations in Europe and worldwide. Briefs on U.S. and Japanese suppliers comprise introductory corporate data and in-depth discussions of their European semiconductor operations. In most cases, European company profiles include information under the following headings: • Background Discusses the company's background and the nature of its business activities. • Operations Discusses the major industry segments of the company. Significant changes or trends are noted. • International Operations Detailed discussions of the European and worldwide operations of the company. Significant international manufacturing operations, subsidiaries, and distributors are noted. • Research and Development Discussion of the research and development activities in the company with emphasis on semiconductor development work. • Company Structure Discussion of any structural changes, number of employees, and marketing, sales, and distribution organization. • Facilities Brief discussion of the major semiconductor-related facilities of the company, year established, capacity, products, and processes. • Prior Year Highlights Brief discussion of the developments and critical events for the company during the past year.

• Outlook Comments on the near-term future for the company—markets, strategy, and financial prospects—with emphasis on semiconductor products. • Major Activities A brief discussion of each major group's or division's activities. • Semiconductor Activities Discusses the company's European semiconductor operations, activities, products, and business strategies and includes worldwide and European semiconductor revenue tables by product line, by region, and by end use. • Corporate Financial and Market Data Financial data (except for semiconductor revenue tables) are derived from publicly available corporate sources. Since Company Law may differ in various countries, the information Dataquest requires for general corporate financial reporting may not always be available. In most cases, the Japanese and U.S. company profiles include information under the following headings: • Overview Discusses the company's background and European operations including origin, key milestones, size, number of employees, main business lines, and profitability. • European Semiconductor Facilities Briefly discusses the major European semiconductor-related facilities of the company, year established, capacity, products, and processes. • European Semiconductor Activities and Market Data Discusses the company's European semiconductor operations, activities, products, and business strategies and includes European semiconductor revenue tables by product line, by region, and by end use.

The European, Japanese, and U.S. company briefs include information under the following headings: • Background and Overview Discusses the company's background and European operations, including origin and key milestones, and includes European semiconductor revenue tables by product line. For European companies only, also included are worldwide semiconductor revenue tables by product line. • Products and Markets Served Discusses the company's semiconductor products and business strategies. • Outlook Discusses the near-term outlook for the company.

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© 1988 Dataquest Incorporated April ESIS Volume III tD Advanced Micro Devices Inc. 901 Thompson Place Sunnyvale, California 94086 Telephone: (408) 732-2400 Fax: (408) 982-6161 Dun's Number: 04-863-4059 Date Founded: May 1, 1969

CORPORATE STRATEGIC DIRECTION share with $291.0 miUion in 1990. AMD also ranks second in 16-bit microprocessors with a 23.8 percent market share in 1990. Advanced Micro Devices Inc. (AMD) was founded in 1969 by former Fairchild Semiconductor employees with a new business idea—to build a semiconductor Nineteen-ninety was a year of important transforma company that produced pin-compatible devices with tions for AMD. Over ^e last four years, AMD has high-performance upgrades of existing products. gradually been making the transition from bipolar to Thus, initially, AMD's reputation was built not as a CMOS technology. In the fourth quarter of 1990, second source but as an alternate sotu°ce. In recent sales of CMOS products surpassed sales of bipolar years, the company has vigorously forged ahead with products for the first time, bringing in $113 million in development of new proprietaiy products, which in quarterly revenue and representing 43 percent of 1990 accounted for over half of total sales. AMD sales. For 1990 as a vi)xA&, CMOS sales increased designs, manufactures, and markets microprocessors 47 percent. The company will continue to emphasize and related peripherals, memories, and programmable CMOS technology in the coming years, eventually logic devices (PLDs) for telcommunications, office phasing bipolar products into a minor role. The automation, and netwoiking appUcadons. The com primary goal of AMD today is to supply sub- pany's products are based on CMOS, NMOS, and micron CMOS solutions to the manufacturers of bipolar process technologies. equipment for personal and network computation and communications.

According to Dataquest, AMD held a 1.8 percent In the fourth quarter of 1990, AMD started operations market share of the 1990 worldwide semiconductor in the new Submicron Development Center (SDC) in market, ranking the company nineteenth. These Sunnjrvale, California. AMD's management views the figures are similar to AMD's numbers of 1989, when SDC as instrumental to the company's success the company held a 1.9 percent market share and throughout the 1990s, as they believe that the ability ranked eighteenth. Dataquest also estimates that to manufacture ICs at the submicron level wiU repre AMD is the eighth largest Nordi American manu sent the difference between successful and unsuccess- facturer of semiconductors with $516.0 milhon* in fiil IC companies. AMD expects the process technol factory revenue in 1990. ogy developed at the SDC to lead to 0.5-micron feature devices by 1992 and 0.35-micron devices by The company is currendy focused around three core 1994. If successful, these technologies will provide a businesses: memory devices such as programmable substantial growth opportunity for AMD to be on the logic devices (PLDs), erasable programmable read leading edge of submicron technology. The SDC only memories (EPROMs), and microcomponents. represents a substantial $200 million investment for AMD also classifies two emerging areas of AMD. At the time of initial wafer production at the business—^network products and communication. SDC, the facility boasted the world's cleanest facUity, Dataquest estimates that AMD ranks first in the PLD with the clean room possessing only one particle per worldwide market, garnering a 35.1 percent market cubic foot no larger than 0.1 micron, substantially under the Class 1 standard level of one particle per *A11 dollar amounts are in U.S. dollars. cubic foot no larger than 0.5 micron.

The transformations of 1990 were also quite evident reductions, and a substantial increase in investments in changes in AMD's manufacturing facilities. Recog in capital equipment. The decision with Brooktree nizing die shift toward submicron CMOS technology, Corporation is currentiy under appeal, and a ruling in AMD has closed 10 aged wafer fabrication areas in ANflD's favor could significantiy affect net income in the past four years. AMD also sold its Manila assem fiscal 1991. bly plant in January 1989 and subsequendy com menced assembly operations in a new automated R&D expenditure was $203.7 million in fiscal 1990, facility in Bangkok in 1989. These manufacturing or 19.2 percent of revenue. AMD reported capital changes further reflect AMD's shift toward CMOS expenditure of $313.4 million in fiscal 1990, products, which the company expects to compose the representing 29.6 percent of total revenue. This figure bulk of sales by die end of 1991. for capital expenditure nearly doubled the 1989 figure of $158 million, primarily as a result of investment in AMD markets and distributes its products through the SDC facility. company headquarters in Sunnjrvale, California, and through a network of U.S. field sales offices, independent representatives and distributors, and for Intemational sales represented 51.2 percent of total eign subsidiaries. The overseas sales subsidiaries revenue for AMD in 1990, totaling $538 million. have offices in Belgium, Canada, France, Italy, Japan, North American revenue represented 48.8 percent, Sweden, the United Kingdom, and Germany. A mar European revenue 26.1 percent, Japanese revenue keting and distribution agreement with Siemens AG 13.2 percent, and revenue from the rest of the world also provides for worldwide distribution of AMD's 11.9 percent of total revenue. At the end of 1990, products, with primary efforts in the West European, AMD employed 11,997 people worldwide. South African, and South American markets. More detailed iofonnation is available in Tables 1 and 2, which appear after "Business Segment Strate AMD has been involved in one of the most bitter gic Direction" and present corporate highlights and litigation batties in semiconductor history with Intel revenue by region. Information on revenue by distri Corporation. The integrated circuit in question was bution channel is not available. Tables 3 through 5 at Intel's 80386 32-bit microprocessor, the microproces the end of this backgrounder provide comprehensive sor behind a generation of IBM-compatible com financial information. puters. Intel and AMD had signed a technology exchange agreement in 1982. When Intel introduced its 80386 in 1985, AMD expected Intel to transfer the technology as part of the 1982 agreement Intel did not transfer the technology, and AMD took the matter to arbitration in 1987. In October 1990, after tiiree BUSINESS SEGMENT STRATEGIC years of exhaustive litigation, an arbitrator ruled that DIRECTION Intel had breached the terms of the 1982 contract and owed AMD damages. The amount has not been setded, but AMD is seeking over $500 million in Progranunable Logic Products monetary damages, as well as equitable relief for As previously mentioned, AMD is die industry leader other damages, which would include the technology in high-speed, field-programmable integrated circuits and manufacturing rights to Intel's 386 microproces known as PLDs. These PLDs are used in PC-based sor. The matter is scheduled to be resolved in systems to connect microprocessors widi other cir mid-1991. cuitry, with applications including digital switches, phone systems, and test and medical equipment The AMD reported consolidated revenue for fiscal 1990 conq>any's HJDs combine the off-lhe-shelf availabil of $1.1 billion, a 4.1 percent decrease from fiscal ity, ease of use, and low cost of standard products, 1989. AMD's net income decreased 216.3 percent to while adding the capability for semicustom design. a net loss of $53.6 million, down from a net gain of The initial design time and cost in customizing a PLD $46.0 mUlion in 1989. Numerous factors contributed is less than designing a traditional custom IC or gate to this loss, including a $28 million adverse decision array. AMD began shipping its MACH family of in litigation with Brooktree Corporation, a $10 mil mid-density PLDs in 1990, offering an alternative to lion one-time charge associated with work force low-density gate arrays.

With $291 million in total PLD factory revenue, first alternative to Intel's 386 microprocessor, which AMD has more than double the factory revenue of its has been an industty standaid since its introduction in nearest competitor, Texas Instruments. AMD has held 1985. a soUd leadership position in the bipolar PLD market and continued to do so in 1990, owning a leading 58.9 percent share of the market The company has AMD also has targeted the vast embedded processor pledged to strengdien its market ^laie in the emeig- market with the Am29000 processor. The Am29000 ing field of CMOS PLDs. CMOS PLDs represent is a 32-bit reduced-instruction-set computing (RISC) the fastest-growing segment of the market, and AMD device, whose applications include laser printers, increased its factory revenue by 56 percent to $42.0 high-performance graphics and network controllers, million in 1990, ranking the company fourth in the and accelerator cards. Hewlett-Packard Company market. recendy introduced the LaserJet nisi, a 17 pages-per- minute laser-beam printer based on the Am29000. The HP LaserJet joins a list of more than 300 designs based on the Ajn29000, which continues to gain High-Performance Memories acceptance as the leader in the RISC microprocessor A significant portion of AMD's revenue is generated market for embedded control applications. from the sale of EPROMs. EPROMs are used to store data when a system's power is off and are used in personal computers, laser printers, automobile engine Networks and Communications Systems controllers, video games, and other eqtiipment where programmed data storage is needed. AMD offers a AMD supplies a wide range of solutions for a broad family of CMOS EPROM devices that range from spectrum of connectivity problems. These include 64K to 4Mb in density. The company has completed applications in central office switches, PBX equip its transition from NMOS to CMOS technology in its ment voice/data terminals, and different performance EPROMs, with all EPROMs now using CMOS tech classes of LANs used in connecting workstations and nology. The company also offers a family of specialty personal computers. The company not only offers the memory devices consisting of first in/first out (FIFO) integrated circuits for these applications but also pro buffer memories, dual-port memories, content vides a number of hardware evaluation tools, addressable memories (CAMs), and static random- development software, and interface software. access memories (SRAMs). AMD is one of the leading suppliers of subscriber AMD estimates that it is the second-largest supplier line interface circuit (SLIC) and subscriber line of EPROMs in the worldwide market. audio-processing ciiruit (SLAC) devices that are a fundamental part of digital telephone switching equipment The SLIC connects the user's telephone Microprocessors and Related Peripherals wire to the telephone company's digital switching equipment the SLAC is a coder/decoder that converts Through a 1982 technology exchange agreement with analog voice signals to a digital format and back. Intel Corporation, AMD manufactures certain iAPX products, including the 8051 single-chip microcon AMD's agreement with Siemens calls for alternative troller and the 8086, 8088, 80186, and 80286 sourcing of existing devices and joint development of microprocessors. Dataquest estimates that, on the future products for the Integrated Services Digital strength of its 80286 microprocessor, AMD holds Network (ISDN), an emerging network that is digi 23.8 percent of the 1990 worldwide 16-bit tally linking telephones and computers internationally. microprocessor market, second only to Intel. The network is unique in that it was formed out of a set of standards developed by the Consultative Com In 1990, AMD finally completed "Project Longhom," mittee for International Telegraph and Telephone the company's venture to develop a 32-bit 80386 (CCTTT), a branch of the United Nations. ISDN microprocessor. The result was the 32-bit Am386 allows a user to commurucate digitally on three sepa microprocessor, designed to enter the 386-driven IBM rate charmels simultaneously over a single analog PC market The first shipments of the Am386 com telephone line. This gives the user the capability of menced in the first quarter of 1991 and were immedi simultaneously communicating by telephone, com ately profitable, bringing in more than $10 million in puter, and video equipment ISDN is especially quarterly factory revenue. The Am386 provides the powerful in that it requires no modification to the

0011020 ©1991 Dataquest Incorporated October—^Reproduction Prohibited Advanced Micro Devices Inc. wiring and cabling of the telephone systems in effect moved at faster speeds and for longer distances than today. ISDN is functional with only the purchase of a had been possible in the past new phone-line interface and management software. Apphcations currently include mail order services, stock brokerages, computer services, and medicine, Office Automation with significant potential for future expansion. ISDN has signed on such customers as AMD, Bally Inc., AMD, having identified specific high-volume apph Hayes Microcomputer Products Inc., Massachusetts cations in office automation equipment, developed Institute of Technology, McDonald's Corporation, proprietary circuits that add functionality, improved Sandia Laboratories, Shell Oil, 3M Company, and Tenneco. performance, and reduced cost to the equipment These apphcations include graphics, compression/ expansion processing for storing images, dedicated AMD is also active in the fiber-distributed data inter devices for laser printers, and magnetic and optical face (FDDI) information exchange network. AMD disk control. provides the SUPERNET integrated chip set for the FDDI system, which uses LANs to connect com puters, workstations, data storage imits and other systems that need to exchange information rapidly. Further Information FDDI uses fiber-optic cables as the conduit thix>ugh which information passes, instead of the traditional For further information about the company's business metal coaxial or twisted-pair cables. This use of fiber segments, please contact the appropriate Dataquest optics allows larger blocks of information to be industry service.

Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars)

1986 1987 1988 1989 1990 Kve-Year Revenue 576.1 997.1 1,125.9 1,104.6 1.059.2 Percent Change (38.13) 73.08 12.92 (1.89) (4.11)

Capital Expenditure 136.9 137.9 ' 133.1 158.8 313.4 Percent of Revenue 23.76 13.83 11.82 14.38 29.59

R&D Expenditure 183.9 247.8 208.3 201.8 203.7 Percent of Revenue 31.92 24.85 18.50 18.27 19.23

Number of Employees 13,689 18,015 14,817 13,072 11,997 Revenue ($K)/Employee 42.08 55.35 75.99 84.50 88.29

Net Income (36.6) (64.0) 19.3 46.1 (53.6) Percent Change (127.03) (74.86) 130.16 138.86 (216.27)

1989 Calendar Year Qi Q2 Q3 Q4 Quarterly Revenue 271.4 267.7 254.2 265.9 Quarterly Profit 13.2 (5.9) (:17.8 ) (43.0)

Sonice:: Advanced Micro Devices Inc. Annual Repoits Dataquest (October 1991)

Table 2 Revenue by Geographic Region (Percent)

Region 1986 1987 1988 1989 1990 North America 76.00 73.00 69.00 67.20 64.35 Europe 21.00 19.00 19.00 20.20 21.20 Asia/Pacific 3.00 8.00 12.00 12.60 14.45 Source: Advanced Micro Devices Inc. Annual Reports Dataquest (October 1991)

Advanced Micro Devices Export Corp. (United States) 1990 SALES OFFICE LOCATIONS Advanced Micro Devices Overseas Corp. (United States) North America—40 Advanced Micro Devices Overseas (Delaware Corp.) Europe—10 (United States) Japan—1 Advanced Micro Ltd. (United States) ROW—3 AMD Corp. (United States) AMD Far East Inc. (United States) AMD International Sales and Service Ltd. (United States) AMD Properties (United States) MANUFACTURING LOCATIONS Europe North America Advanced Micro Devices AB (Sweden) Advanced Micro Devices Belgium S.A.N.V. Austin, Texas (3) (Belgium) MOS, MPUs, PLDs, communications ICs, Advanced Micro Devices GmbH (Germany) SRAMs, CMOS/MOS, EPROMs, BiCMOS, logic, Advanced Micro Devices Overseas Corp. (Belgium) RISC MPUs Advanced Micro Devices S.A. (France) Santa Clara, California (2) Advanced Micro Devices S.A. (Switzerland) Bipolar, PROMs, PLDs, CMOS Advanced Micro Devices S.p.A. (Italy) Sunnyvale, California (2) Advanced Micro Devices (U.K.) Ltd. (United CMOS/BiCMOS, RISC MPUs, EPROMs, bipolar, Kingdom) interface logic Monolithic Memories (France) S.A.R.L. (France) Monolithic Memories GmbH (Germany) Europe Monolithic Memories Inc. Ltd. (United Kingdom) Monolithic Memories Ltd. (United Kingdom) Basingstoke, England Test and assembly Japan AsialPacific Advanced Micro Devices K.K. (Japan) MMI-Japan K.K. (Japan) Atsugi, Japan Product testing Bangkok, Thailand ROW Test and assembly Advanced Micro Devices Export Sdn. Bhd (Malaysia) Penang, Malaysia Advanced Micro Devices (Philippines) Inc. Test and assembly Advanced Micro Devices Sdn. Bhd. (Malaysia) Singapore Advanced Micro Devices Products Sdn. Bhd. Test and assembly (Malaysia) Advanced Micro Devices (Singapore) Pte. Ltd. Advanced Micro Devices Technology Sdn. Bhd. (Malaysia) AMD Atlantic Ltd. SUBSIDIARIES AMD Foreign Sales Corp. AMD (International) Ltd. (Bermuda) North America AMD Overseas Financial Ltd. AMD (Overseas Financial) Ltd. (Bermuda) Advanced Micro Computers Export Corporation Inc. AMD (Thailand) Ltd. (United States) MMI Integrated Circuits (Singapore) Pte Ltd. Advanced Micro Devices (Canada) Ltd. (Canada) Monolithic Memories Foreign Sales Corp.

ALLIANCES, JOINT VENTURES, AND MERGERS AND ACQUISITIONS LICENSING AGREEMENTS Information is not available.

1991 Sony Corporation AMD and Sony agreed to a broad patent and KEY OFFICERS copyright cross-licensing agreement covering wafer processes, design, and architecture for W. J. Sanders in integrated circuits. The agreement is designed to Chief executive officer, chairman of the board facilitate the development of 0.5-micron CMOS Anthony B. Holbrook process technology. Vice chairman and chief technical officer Taiwan Semiconductor Manufacturing Corp. Richard Previte (TSMC) President and chief operating officer AMD and TSMC signed an agreement under which TSMC will act as a foundry for some of Marvin Burkett AMD's EPROMs. Senior vice president and chief financial officer Stephen Zelencik 1990 Senior vice president and chief marketing execu tive Oak Technology Corp. Gene Conner AMD granted manufacturing and marketing rights Senior vice president. Memory Manufacturing and to Oak Technology for AMD's Am95C71 Video Technology Compression and Expansion Processor. Thomas W. Armstrong \^ce president and general counsel 1989 W. Curtis Francis Scorpion Technologies Vvx president. Corporate Operations Plaiming Scorpion purchased the proprietary rights to the Stanley Winvick P-Channel silicon gate MOS technology from Vice president. Human Resources AMD.

1988 PRINCIPAL INVESTORS Communication Machinery Corp. (CMC) The two companies agreed to jointly develop and Information is not available. market intelligent FDDI VMEbus processors. CMC will integrate its TCP/IP and ISO software and CMC's expertise in building high-performance Ethernet processors with AMD's SUPERNET chip set. FOUNDERS

Siemens AG W. J. Sanders m The two companies announced a technology agree Jack Gifford ment under which they will jointly develop, Larry Stenger manufacture, and market chips for data communi James Giles cations and telecommunications with emphasis on Frank Botte ISDN. Both companies will manufacture and mar John Carey ket the chip sets and jointly develop future ISDN Sven Simsonsen products. Ed Tumey

Table 3 Comprehensive Financial Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data)

Balance Sheet 1986* 1987' 1988* 1989 1990 Cash 15.4 235.2 286.8 278.8 115.1 Receivables 109.0 176.5 167.4 183.6 153.5 Inventory 42.5 81.9 90.5 90.5 90.0 Other Current Assets 76.2 21.3 27.7 40.8 37.9 Total Current Assets 243.1 514.9 572.4 593.7 396.5 Net Property, Plants 486.5 524.3 495.5 505.9 647.0 Other Assets 1.9 17.9 13.5 22.9 68.2 Total Assets 731.5 1,057.1 1,081.4 1,122.5 1,111.7 Total Current Liabilities 142.5 254.6 266.2 275.8 317.5 Long-Term Debt 151.6 135.9 130.4 126.4 131.3 Other Liabilities 48.2 43.1 40.0 29.3 26.6 Total Liabilities 342.3 433.6 436.6 431.8 475.4 Converted Preferred Stock 0 0.1 0.1 0.1 0.1 Common Stock 0.6 0.8 0.8 0.8 0.8 Other Equity 119.4 459.8 472.3 482.6 491.9 Retained Earnings 269.2 162.8 171.7 207.5 143.5 Total Shareholders' Equity 389.2 623.5 644.9 691.0 636.3 Total Liabilities and Shareholders' Equi^ 731.5 1,057.1 1.081.5 1,122.5 1,111.7

Fiscal years ending March Source: Advanced Micro Devices Inc. 1987 and 1988 have been restated to reflect consolidation of AMD and Monolithic Annual Reports and FWms 10-K Memories as detailed in the 1988 Annual Report Additionally, in 1987, AMD Dataquest (October 1991) changed its fiscal year to end the last Suiday in December. 1987 and 1988 are restated to sliow these changes.

Table 4 Consolidated Income Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data)

Income Statement 1986* 1987' 1988* 1989 1990 Revenue 576.1 997.1 1,125.9 1,104.6 1,059.2 U.S. Revenue 438.6 725.4 777.6 742.2 681.6 Non-U.S. Revenue 137.5 271.7 348.3 362.4 377.6 Cost of Sales 347.8 562.3 661.9 643.4 678.5 R&D Expense 183.9 247.8 208.3 201.8 203.7 SG&A Expense 122.3 203.2 224.2 221.0 228.4 Capital Expense 136.9 137.9 133.1 158.8 313.4 Pretax Income (84.7) (45.6) 19.3 49.9 (53.6) Pretax Margin (%) (14.70) (4.57) 1.71 4.52 (5.06) Effective Tax Rate (%) (46.00) 40.00 34.00 34.00 (34.00) Net Income (36.6) (64.0) 19.3 46.1 (53.6) Shares Outstanding, Millions 56.3 77.8 80.8 82.0 81.9 Per Share Data Earnings (0.65) (0.92) 0.11 0.44 (0.78) Dividend NA NA NA NA NA Book Value 6.91 8.01 7.98 8.43 7.77

Fiscal yeais ending March Somce: Advanced Micro Devices Inc. 1987 and 1988 have been restated to reflect consolidation of AMD and Monolithic Annual Reports and Fbrms 10-K Memories as detailed in the 1988 Ammal Report Additionally, in 1987, AMD Dataquest (October 1991) changed its fiscal year to end the last Sunday in December. 1987 and 1988 are restated to show these changes. NA = Not available

Table 5 Key Financial Ratios Fiscal Year Ending in December

Key Financial Ratios 1986' 1987' 1988' 1989 1990 Liquidity Current (Times) 1.71 2.02 2.15 2.15 1.25 Total Assets/Equity (%) 187.95 169.54 167.68 162.45 174.71 Current Liabilities/Equity (%) 36.61 40.83 41.28 39.91 49.90 Total Liabilities/Equity (%) 87.95 69.54 67.68 62.45 74.71 Profitability (%) Return on Assets (5.00) (6.05) 1.78 4.11 (4.82) Return on Equity (9.40) (10.26) 2.99 6.67 (8.42) Profit Margin (6.35) (6.42) 1.71 4.17 (5.06) Other Key Ratios R&D Spending % of Revenue 31.92 24.85 18.50 18.27 19.23 Capital Spending % of Revenue 23.76 13.83 11.82 14.38 29,.59 Employees 13,689 18,015 14,817 13,072 11,997 Revenue ($K)/Employee 42.08 55.35 75.99 84.50 88.29 Capital Spending % of Assets 18.71 13.05 12.31 14.15 27.36

Fiscal years endiiig March Source: Advanced Micro Devices Inc. 1987 and 1988 have been restated to reflect consolidation of AMD and Monolithic Ar.r'ri! Reports Memories as detailed in the 1988 Annual Repent Additionally, in 1987, AMD r est (October 1991) cfaan^ its fiscal year to end die last Sunday in December. 1987 and 1988 are restated to show these changes.

Analog Devices Inc. One Technology Way Norwood, Massachusetts 02062 Telephone: (617) 329-4700 Fax: (617) 326-8703 Dun's Number: 00-141-8417 Date Founded: 1965

CORPORATE STRATEGIC DIRECTION associated with organizational changes in the com pany as well as costs associated with the integration Analog Devices Inc. is a leading manufacturer of of PMI. Analog Devices also took a $12 miUion precision linear, digital, and mixed-signal integrated reserve against the Analog Devices Enterprises circuits used in analog and digital signal-processing (ADE) portfolio. appUcations, as well as modular and board-level products used in data acquisition and measurement Research and development expenditure for fiscal and control systems and subsystems. Analog Devices 1990 totaled $80.3 million, or 16.6 percent of reve also manufactures a broad range of products that nue. Capital expenditure totaled $39.0 million, or employ assembled product technology, including 8.0 percent of revenue, for the same period. modules and board-level systems and subsystems. The company's products are used primarily in com Analog Devices has a fairly even mix of domestic puterized equipment and systems that involve and intemational sales. In 1990, 53.2 percent of sales processing information obtained from real-world sen came from domestic operations and 46.8 percent frani sors measuring such phenomena as temperature, pres intemational operations, with a further breakdown of sure, and light intensity. The major application 31.5 percent coming from Europe and 15.3 percent markets for Analog Devices' products are instrumen from Asia. The company employed 5,700 people at tation (engineering, scientific, and medical), mihtary/ the end of fiscal year 1990. aerospace, industrial automation, telecommunications, computer equipment, and the consumer market. Accompanying its major acquisition during fiscal Fiscal year 1990 was filled with major transforma year 1990, Analog also began a major organizational tions for Analog. The event of the year occurred in transformation. Traditionally, Analog has had a August, when Analog officially announced the pur largely decentralized organizational structure, with chase of a competitor. Precision Monolithics Inc. product divisions differentiated by manufacturing (PMI). Analog purchased PMI from Bourns Inc. for technology. Traditional divisions had corresponded to $60.5 million* in cash plus $12.5 million in stock the respective technologies, such as hybrids, bipolar warrants. The acquisition of Santa Clara, California- ICs, and CMOS ICs. With the recent advances in based PMI strengthened Analog's akeady soUd niche technology, many of these previously distinct technol in the high-performance analog IC arena. According ogies can be combined, resulting in blurred divisions to Analog, the move makes the company the second between the product lines. As a result. Analog has largest nonconsumer linear IC supplier, trailing only decided to shift toward a more centralized organiza National Semiconductor Corporation. tional structure that is more responsive to application- specific and market-specific demands. The company consolidated six of the existing product divisions into Analog Devices' sales increased 7.0 percent in fiscal two new divisions, the Systems IC Products Division 1990 to $485.2 million. Net income in fiscal 1990 (SPD) and the Industrial Electronics Division (lED). was a net loss of $12.9 million, representing a decrease of 146.3 percent fi-om the 1989 profit of $27.9 miUion. The main reason for this net loss was a The SPD combines the Digital Signal Processing restructuring charge of $21.5 million covering costs (DSP) and Mixed-Signal ASIC Divisions. The SPD plans to focus on application-specific devices that can '''All dollar amounts are in U.S. dollars. be sold to customers who require varying applications

iuvolving digital and mixed-signal system-level VLSI its 1989 position of 29th. Widi die acquisition of Pre ICs. These applications include such product lines as cision MonoUthics, Analog Devices' overall market image processing, digital mobile radio, high-speed share increases to 0.9 percent, ranking the com modems, and facsimile machines. pany 24th.

The newly formed lED combines the previous divi Analog Devices has developed a series of proprietary sions of Indiistrial Products, Microelectronics, Mem semiconductor processes for use in designing state-of- ory Devices, and Computer Labs. The lED will focus the-art products. These include a fine-line CMOS on industrial automation, automatic test equipment, process for use in DSP products; a combined bipolar/ industrial control, and motion control systems. MOS process called ABCMOS (Advanced Bipolar CMOS) for use in mixed-signal devices, including Three divisions in Analog's structure wiU remain analog-to-digital (ADC) and digital-to-analog (DAC) unaltered. The Bipolar IC Division, the CMOS converters and VLSI application-specific devices; and IC Division, and the Precision Monolithics Division a complementary bipolar (CB) process for use in such will remain intact These divisions are being asked devices as high-speed, high-performance amplifiers. to increase their already solidly established leader The company believes that the continued develop ship positions in the general-purpose IC market. ment of its process technology is an important factor Products under the auspices of these divisions include in maintaining a competitive advantage in the market data converters, precision amplifiers, and voltage place. However, it also expects to develop an alliance references. with a larger company that would give Analog access to state-of-the-art submicron CMOS processes. Traditionally, Analog Devices' strategy for entering new markets and acquiring new technologies was investment in start-up companies. In 1980, Analog Systems IC Products Division Devices Enterprises (ADE) was foimded. ADE is an The SPD, which combines the DSP and the Mixed- internal venture capital group that provides start-up Signal ASIC Divisions, is fociising on digital and funding to companies that have technologies aligned mixed-signal system-level VLSI ICs. with Analog Devices' strategic interests. Its first investment was Signal Processing Circuits Inc. of Salt Lake City, Utah. This small start-up was engaged in DSP the design of digital signal processing devices, which Analog had identified as one of its major strategic Analog Devices has become a significant player in the interests. Since the inception of ADE, the company DSP IC market by focusing on processors whose has invested in 12 companies. Analog Devices has architecture is optimized for real-world signal begun to downplay this strategy in the last five years, processing applications. The ADSP-2100 was the first culminating in the fourth quarter of 1990 when the DSP processor in this family, which has since been company took a $12.0 miUion writedown of ADE, followed by the ADSP-2101, ADSP-2102, and reducing ADE to its near-term Uquidation value. ADSP-2105 DSP processors. The company has also introduced the ADSP-21msp50 processor, which includes on-board A/D and D/A capabifity, and More detailed information is available in Tables 1 and recendy announced the ADSP-21020 Floating Point 2, which appear after "Business Segment Strategic DSP processor, which is the highest-performance Direction" and present corporate highUghts and reve floating point device currentiy on the market The nue by regioa Information on revenue by distribution company expects many of its future mixed-signal channel is not available. Table 3, a comprehensive VLSI products to include an embedded DSP function. financial statement, is at the end of this backgroimder. ASSP and ASICs Analog Devices expects a significant portion of its BUSINESS SEGMENT STRATEGIC future growth to come from mixed-signal VLSI ICs, DIRECTION with the company's primary focus being on applica tion specific standard products (ASSPs) targeted at high-volume opportunities in computer peripherals, Semiconductors telecommunications, and consumer products. Appfi- According to Dataquest, Analog Devices held cations in these markets include hard disk drives, 0.7 percent of the 1990 world semiconductor mar high-resolution graphics displays, digital cellular ket, ranking the company 27th, a slight increase fix>m phones, high-speed modems, facsimile machines,

HDTV, DAT, and Surround Sound decoders. It is Computer Peripherals ICs the company's intention that the products deve loped for these applications wiU essentially be Analog has become increasingly involved in supply standard products sold with litde or no individual ing linear and mixed-signal ICs for use in computer modifications. peripherals such as hard disk drives and high- resolution graphics displays. Among its products for In addition, the company is establishing design hard disk drives is the AD890/AD891 IC pair, which centers in a few key geographic areas that wiU focus processes the signal from a hard disk read head at on working with a limited number of customers to rates of up to 50 Mbps. More recently, the company develop mixed-signal VLSI ICs to meet their specific introduced the AD897, a single IC that performs the needs. These products will be developed using the same function at up to 40 Mbps. The company also company's proprietary CAD tools and cell library. has a number of ICs used in head positioning server applications, including the recently introduced Industrial Electronics Division AD7774, a complete analog input/output port that includes a 4-chamiel, 8-bit A/D converter and two The lED, which combines Analog Devices' tradi 8-bit D/A converters. tional divisions of Industrial Products, Microelectron ics, Memory Devices, and Computer Labs, wDl target the fields of automatic test equipment (ATE), indus Analog has become the leading supplier of RAM trial automation, industrial controls, and motion con digital analog converters (DACs) used in plug-in trol systems, with an emphasis on ATE. VGA display cards for standard PCs. More recendy, it has moved toward greater participation in this market Analog Devices has targeted ATE as one of the with the AD7146 Continuous Edge Graphics (CEG) fastest growing applications of Unear and mixed- DAC, which makes it possible to display signal technology. TTie company's strategy io the ATE photographic-quality images on a standard VGA PC market is to become the leading merchant supplier of screen. The company has also begun sampling its linear and mixed-signal ICs used for pin electronics AD7150 true color video DAC, which Analog feels is in ATE. Analog currently manufactures ICs for both the key to the next major advance in large-screen the computer mainframe and pin electronics portions workstation graphics. of large mainframe testers. As the pin count for logic and memory testers increases from 512 pins to 1,024 pins, the indiistry is facing an urgent need to Consumer Products ICs reduce the cost per pin. The challenge facing Analog The company's initial entries into consumer products is to convince customers to buy Analog's ICs instead markets were D/A converters used in CD players. of making their own. Future products will be primarily aimed at high-end products, including DAT recorders, audio/visual Bipolar IC, CMOS IC, and Precision receivers, and projection television receivers. One of Monolithics Divisions the company's most recent ICs in this category is its The bipolar and CMOS IC divisions remain intact fully mtegrated SSM-2125 Dolby Surround Sound under Analog's new central reorganization and with decoder. the newly acquired Precision MonoUthics Division will target general-purpose IC applications such as Analog is also pursuing opportunities in the automo data converters, precision amplifiers, and voltage references. Analog looks to these divisions to tive market, with a particular focus on "smart sen increase the market and leadership positions previ sors," which are sensors that include on-board condi ously held in the aforementioned applications. The tioning. Analog's Hall effect and current sensors are company also hopes that these divisions will begin to designed into passenger cars in the United States and expand into the consimier, transportation, and com Europe. The company has also begun sampling its puter peripherals markets. proprietary micromachined accelerometer, which is potentially suitable for such applications as sensing Data Conversion ICs deceleration to trigger airbag deployment in the event of a car accident The world market for data conversion products is $875.0 million. Analog Devices is the market leader in all segments of this market, with a 24.9 percent Further Information market share. The applications for the digital-to- analog (DAC) or analog-to-digital converters (ADC) For further information about Analog Devices' busi are widespread, with the most growth potential in the ness segments, please contact Dataquest's Semicon computer peripherals and consumer markets. ductors Worldwide service.

Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars)

1986 1987 1988 1989 1990 Five-Year Revenue 334.4 370.4 439.2 453.4 485.2 Percent Change 3.72 10.77 18.57 3.23 7.01

Capital Expenditure 36.7 43.0 49.2 51.0 39.0 Percent of Revenue 10.97 11.61 11.20 11.25 8.04

R&D Expenditure 45.3 56.0 60.5 68.9 80.3 Percent of Revenue 13.55 15.12 13.78 15.20 16.55

Number of Employees 4,959 5,219 5,347 5,213 5,700 Revenue ($K)/Employee 67.43 70.97 82.14 86.97 85.13

Net Income 23.4 18.7 38.0 27.9 -12.9 Percent Change •21.21 -20.09 103.21 -26.58 -146.24

1990 Fiscal Year Ql Q2 Q3 Q4 Quarterly Revenue 109.7 116.4 120.7 138.5 Quarterly Profit 0.8 4.7 5.2 -23.6

Source: Analog Devices Inc. Annual Reports and Fbnns 10-K Dataquest (September 1991)

Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 North America 56.00 57.00 55.74 55.60 53.20 Europe 31.00 29.00 27.98 29.20 31.47 Asia 13.00 14.00 16.28 15.20 15.33

Source: Analog Devices Inc. Annual Reports and Forms 10-K Dataquest (September 1991)

Analog Devices Ltd. (United Kingdom) Analog Devices Marketing Ltd. (United Kingdom) 1990 SALES OFFICE LOCATIONS Analog Devices Nederland B.V (Netherlands) Analog Devices S.A. (France) North America—^25 Europe—^25 Analog Devices S.A. (Switzerland) Japan—^3 Analog Devices S.r.l. (Italy) ROW—3 Memory Devices Ltd. (United Kingdom) All Others—3 ROW Analog Devices Finance Bermuda Ltd. (Bermuda) Analog Devices Finance N.V. (Netherlands Antilles) MANUFACTURING LOCATIONS Analog Devices Inc. (Philippines) Analog Devices Israel Inc. (Israel) North America Norwood, Massachusetts Assembly of technology products ALLIANCES, JOINT VENTURES, AND Santa Qara, California LICENSING AGREEMENTS Precision Monolithics division; bipolar and CMOS ICs Wilmington, Massachusetts 1990 Bipolar, mixed-signal, and CMOS ICs Edsun Laboratories Analog Devices and Edsun signed an agreement Japan forming an alliance for the development, manufac turing, and marketing of a new line of PC graphics Tokyo, Japan ICs. The alliance will blend Analog's mixed-signal Assembly and testing for electronic components and DSP knowledge with Edsun's continuous edge graphics (CEG) architecture. Europe Sipex Corporation Limerick, Ireland Analog agreed to exchange technology and CMOS ICs second-source products with Sipex Corporation. Sipex will acquire Analog's mixed-signal ROW BiCMOS technology, and Sipex will make line drivers and receivers in return. Manila, PhOippiaes Assembly of electronic components 1988 Brooktree Corporation Brooktree signed Analog Devices as a second source of die Bt471 and Bt478 video DACs, which SUBSIDIARIES are designed for the PSy2 and VGA add-in boards.

North America Analog Devices International Inc. (Massachusetts) Analog Devices International Sales Corp. (Delaware) MERGERS AND ACQUISITIONS

Europe 1990 Analog Devices A.B. (Sweden) Precision Monolithics Inc. Analog Devices A.S. (Denmark) Analog purchased Precision Monolithics Inc. Analog Devices B.V. (Netherlands) (PMI) from Bourns for $60.5 million in cash in Analog Devices Foreign Sales Corp. B.V. addition to warrants for 1 miUion shares of Analog (Netiierlands) Devices' stock valued at $12 per share. The pur Analog Devices GmbH (Germany) chase allows Analog to move into Silicon Valley Analog Devices Hardelsgesellschaft mbH (Austria) for the first time, as well as acquire PMI's primary Analog Devices Holdings B.V. (Netherlands) product lines of precision op amps, data conver Analog Devices Ltd. (Scotland) sion circuits, and voltage references.

KEY OFFICERS PRINCIPAL INVESTORS

Ray Stata Ray Stata Chairman of the board, president Matthew Lorber Jerald G. Fishman Executive vice president Joseph M. Hinchey FOUNDERS Senior vice president. Finance

Melvin J. Sallen Ray Stata Senior vice president Matthew Lorber Arnold F. Kanarick Vice president. Human Resources Joseph E. McDonough "V^ce president and treasurer

Table 3 Comprehensive Financial Statement Fiscal Year Ending October 29 (Millions of U.S. Dollars, except Per Share Data) Balance Sheet 1986 1987 1988 1989 1990 Total Current Assets 161.8 176.4 221.3 223.0 232.4 Cash 6.3 5.8 22.7 30.2 8.3 Receivables 65.6 76.3 87.9 81.7 97.6 Inventory 79.1 83.8 97.4 97.5 107.6 Other Assets 10.8 10.5 13.3 13.8 18.9 Net Property, Plants 173.2 186.2 200.7 208.7 223.9 Other Assets 34.1 34.7 27.4 20.8 30.9 Total Assets 369.1 397.3 449.4 452.5 487.2 Total Current Liabilities 59.9 57.7 72.8 63.2 106.4 Long-Term Debt 20.2 23.4 18.5 10.3 22.8 Other Liabilities 18.5 18.7 16.9 15.7 15.3 Total Liabilities 98.6 99.7 108.2 89.2 144.5 Total Shareholders' Equity 270.5 297.5 341.2 363.3 342.7 Converted Preferred Stock 0.1 0.1 0.1 0.1 0 Common Stock 7.4 7.6 7.8 8.1 8.2 Other Equity 114.5 122.6 128.2 122.1 114.4 Retained Earnings 148.5 167.2 205.1 233.0 220.1 Total Liabilities and Shareholders' Equity 369.1 397.3 449.4 452.5 487.2 Income Statement 1986 1987 1988 1989 1990 Revenue 334.4 370.4 439.2 453.4 485.2 U.S. Revenue 188.8 212.3 244.8 252.1 258.1 Non-U.S. Revenue 145.6 158.1 194.4 201.3 227.1 Cost of Sales 151.4 171.7 200.8 215.1 244.3 R&D Expense 45.3 56.0 60.5 68.9 80.3 SG&A Expense 97.4 108.2 122.5 125.5 135.9 Capital Expense 36.7 43.0 49.2 51.0 39.0 Pretax Income 32.1 25.6 51.6 36.4 -13.6 Pretax Margin (%) 9.60 6.91 11.75 8.03 -2.80 Effective Tax Rate (%) 27.00 27.00 26.00 23.00 5.00 Net Income 23.4 18.7 38.0 27.9 -12.9 Shares Outstanding, Millions 46.0 46.6 47.7 48.3 46.9 Per Share Data Earnings 0.51 0.40 0.80 0.58 -0.28 Dividend - - - - - Book Value 5.88 6.39 7.15 7.52 7.31

Table 3 (Continued) Comprehensive Financial Statement Fiscal Year Ending October 29 (Millions of U.S. Dollars, except Per Share Data) Key Financial Ratios 1986 1987 1988 1989 1990 Liquidity Current (Times) 2.70 3.06 3.04 3.53 2.18 Total Assets/Equity (%) 136.45 133.55 131.71 124.45 142.17 Current Liabilities/Equity (%) 22.14 19.38 21.34 17.40 31.05 Total Liabilities/Equity (%) 36.45 33.52 31.71 24.55 42.17 Profitability (%) Return on Assets 6.34 4.71 8.46 6.17 -2.65 Return on Equity 8.65 6.28 11.14 7.68 -3.76 Profit Margin 7.00 5.05 8.65 6.15 -2.66 Other Key Ratios R&D Spending % of Revenue 13.55 15.12 13.78 15.20 16.55 Capital Spending % of Revenue 10.97 11.61 11.20 11.25 8.04 Employees 4,959 5,219 5,347 5,213 5,700 Revenue ($K)/Employee 67.43 70.97 82.14 86.97 85.13 Capital Spending % of Assets 9.94 10.82 10.95 11.27 8.00

Source: Analog Devices Inc. Annual Report and Forms 10-K Dataquest (September 1991)

BACKGROUND AND OVERVIEW In November 1987, ASEA of Sweden merged with Brown Boveri of Switzerland to form the world's biggest electrical engineering concern, called ASEA Brown Boveri, with estimated sales of $14 billion a year. The new group started trading on January 1, 1988. Substantial restructuring is expected at both companies; these changes eventually will mean that greater pressure will be placed on some of ASEA Brown Boveri's weaker competitors in electrical engineering. ASEA Brown Boveri is to be organized into the following four main business areas: • Power plants—Covering steam and gas turbines, hydropower, nuclear power, thermal power plants for utilities and industry, and power plant control • Power transmission—Including high-voltage switch gear, power transmission systems, power network control, transformers and components, relays, and cable and wire • Power distribution—Including low-voltage systems and control equipment, electrical installation, medium-voltage apparatus and systems, and industrial switch gear • Industrial equipment—Including electric drives, industrial plants, metallurgy, automation, and oil and gas ASEA Brown Boveri, which will be the world's biggest electrical engineering concern, will have about 30 separate business areas, falling both within and outside the 4 main business areas. Those outside the 4 main business areas include Flaekt, ASEA's gas and air treatment subsidiary; SAE, Brown Boveri's line-building group in Italy; and instrumentation companies in the Kent group. Tables 1 and 2 show ASEA-Hafo's European and worldwide semiconductor revenue from 1983 through 1986. Tables 3 and 4 show Brown Boveri European and worldwide semiconductor revenue from 1983 through 1986. As shown in Table 5, Dataquest estimates that ASEA Brown Boveri's Eun^sean semiconductor revenue was $72 million in 1987. Table 6 shows Dataquest's estimates of the Company's worldwide semiconductor revenue.

Table 1 ASEA-Hafo AB Estimated European Semiconductcx* Revenue by Product Line (Millions of U.S. Dollars) 1993 1994 1995 1995

:al Semiconductor $14 $21 $25 $32

Total Integrated Circuit $ 7 $12 $15 $19 Bipolar Digital 0 0 0 0 MOS 7 12 15 19 Linear 0 0 0 0

Total Discrete $ 4 $ 5 $ 5 $ 7 Transistor 0 0 0 0 Diode 0 0 0 0 Thyristor 2 2 2 4 Other 2 3 3 3

Total Optoelectronic $ 3 $ 4 $ 5 $ 6

Table 2 ASEA-Hafo AB Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1993 1984 1995 1986

al Semiconductor $14 $22 $28 $35

Total Integrated Circuit $ 7 $13 $18 $22 Bipolar Digital 0 0 0 0 MOS 7 13 18 22 Linear 0 0 0 0 Total Discrete $ 4 $ 5 $ 5 $ 7 Transistor 0 0 0 0 Diode 0 0 0 0 Thyristor 2 2 2 4 Other 2 3 3 3

Total Optoelectronic $ 3 $ 4 $ 5 $ 6

Source : Dataquest June 1988

Table 3 Brown Boveri Estimated Eur(^>ean SemioHiductor Revenue by Product Line (Millions of U.S. Dollars) ISM ISM 2M5. ISM

Total Semiconductor $18 $22 $24 $26

Total Integrated Circuit 0 0 0 0 Bipolar Digital 0 0 0 0 MOS 0 0 0 0 Linear 0 0 0 0

Total Discrete $18 $22 $24 $26 Transistor 6 7 8 0 Diode 7 8 8 9 Thyristor 3 4 5 16 Other 2 3 3 1 Total Optoelectronic

Table 4 Brown Boveri Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 12M 1985 1986 al Semiconductor $20 $25 $29 $29

Total Integrated Circuit 0 0 0 0 Bipolar Digital 0 0 0 0 MOS 0 0 0 0 Linear 0 0 0 0

Total Discrete $20 $25 $29 $32 Transistor 6 7 8 0 Diode 7 8 9 12 Thyristor 5 7 9 18 Other 2 3 3 2

Total Optoelectronic 0 0 0 0

Source : Dataquest June 1988

Table 5 ASEA Brown Boveri Estimated Eur(q>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1987

Total Semiconductor $72

Total Integrated Circuit $23 Bipolar Digital 0 MOS 23 Linear 0

Total Discrete $44 Transistor 1 Diode 13 Thyristor 22 Other 8

Total Optoelectronic $ 5

Table 6 ASEA Brown Boveri Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1987

Total Semiconductor $84

Total Integrated Circuit $26 Bipolar Digital 0 MOS 26 Linear 0

Total Discrete $50 Transistor 1 Diode 15 Thyristor 24 Other 10

Total Optoelectronic $ 8

Source: Dataquest June 1988

PRODUCTS AND MARKETS SERVED ASEA Brown Boveri's expanded markets include Scandinavia (ASEA's strongest market). West Germany, Switzerland, Austria, and Italy (Brown Boveri's strongest market). About two-thirds of the new group's sales will be derived from Europe. The main products include power generation, transmission, and distribution; railway electrification; industrial process control; automation systems; robots; pollution control equipment; standard products and semifinished goods; and electronics.

OUTLOOK Through the merger, ASEA Brown Boveri hopes to lower production costs; achieve a stronger position in Europe, North America, and Asia; and make better use of resoiirces for research and development.

BACKGROUND AND OVERVIEW Austria Mikro Systeme International GmbH (AMS), formerly Austria Microsystems International (AMI), was set up in 1981 as a joint venture between the company that was then called Gould-American Microsystems, Inc., (51 percent ownership) and Voest- Alpine, the Austrian industrial conglomerate (49 percent ownership). A $60 million 11,700-square-meter facility was built near Graz, Austria, to manufacture integrated circuits. It comprises design engineering, maskmaking, wafer fabrication, assembly, and test areas. Lead times offered are competitive—4 weeks for gate arrays, 8 weeks for standard cells, 20 weeks for full custom circuits, and 4 weeks for ROMs, from specification or code approval until delivery of first samples.

In autumn 1986, the name Gould-American Microsystems was changed to Gould Semiconductor Division (supplier of AMI products). Gould Semiconductor Division does not operate in Europe. In 1982, AMS pioneered SCEPTRE (Standard Cell Placement and Routing Environment) at its Swindon, United Kingdom, design center. SCEPTRE is a system intended to offer small to medium-size electronic equipment manufacturers a chip design capability at low cost. At present, this system supports designs using AMS's CMOS and NMOS 3-, 4-, and 5-micron standard cell families. In 1985, AMS completed a major investment program and increased its production by 40 percent over 1984. However, because of the depressed market condition, a loss in revenue was reported in 1985. The joint owners, Gould-American Microsystems and Voest Alpine, then injected a further $33 million into the company to enable it to finance future investments with equity.

In 1986, AMS launched Super Sceptre, a standalone PC-based semicustom IC design workstation for gate array and standard cell. The product provides a full range of semicustom IC design software capabilities running on the IBM PC AT. It is the culmination of four years of user experience with the Sceptre and its enhanced version, Sceptre II. Also in 1986, AMS launched a commercial MOS multiproduct wafer service through which customers can cut their development costs. To accomplish this, customers can share a batch of wafers with other clients or can place several of their chip designs on a fast turnaround, dedicated wafer batch. In February 1987, AMS announced expansion of its mask processing capability. At the same time, the Company announced the S2570 combined loop disconnect/multi- frequency (LD/MF) dialer IC for push-button telephones. In March 1987, AMS announced the S2573, a new pulse dialer IC in €MOS for push-button telephones. In April 1987, AMS announced the S2571 pulse dialer device in CMOS for push-button telephones. At the same time, the Company added high-performance analog, digital, and peripheral cells to its IC design library.

As shown in Table 1, Dataquest estimates that AMS's European revenue in 1986 was US$21 million.

Table 1 Austria Mikro Systeme International GmbH Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1982 1983 1984 1985 1986

Total Semiconductor $26 $13 $20 $18 $21

Total Integrated Circuit $26 $13 $20 $18 $21

Bipolar Digital 0 0 0 0 0 MOS 26 13 20 18 21 Linear 0 0 0 0 0

Total Discrete 0 0 0 0 0

Transistor 0 0 0 0 0 Diode 0 0 0 0 0 Thyristor 0 0 0 0 0 Other 0 0 0 0 0

Total Optoelectronic

Source: Dataquest April 1988

PRODUCTS AND MARKETS SERVED AMS offers a complete range of custom and semicustom MOS/VLSI capabilities, including gate arrays, standard cell, and full custom circuits, as well as silicon foundry facilities for customer-designed circuits. CAD/CAE tools and IC design training are also available. AMS's telecommunications and data communications circuits, ROMs, micro computers, and peripheral devices provide standard solutions for specific applications. AMS serves the telecommunications, automotive, industrial, instrumentation, EDP, and consumer markets.

In addition to the Graz facility, AMS has design centers in Swindon (United Kingdom), Stockholm (Sweden), Munich and Hamburg (West Germany), Paris (France), and Milan (Italy). The Company has a network of representatives in Denmark, Israel, Spain, Switzerland, and Yugoslavia.

OUTLOOK In July 1987, Gould sold its 51 percent stake in AMI to Voest-Alpine. The takeover means that AMS, now called Austria Mikro Systeme, is now entirely Austrian owned. Gould stated that it will return to the European marketplace with custom and semicustom chip sets from its U.S. base.

Ericsson Components AB

INTRODUCTION On March 1, 1988, Ericsson sold its capacitor business and the RIFA name to Finvest AB of Finland. All operations, excluding the capacitor business, were transferred to a new company called Ericsson Components AB. Bert Jeppsson is the new Senior Vice President.

BACKGROUND AND OVERVIEW Radiolndustrins Fabriks Aktiebolag, known as RIFA, was founded in 1942 to secure the supply of components to Swedish radio companies during the war. Four years later, the company was acquired by LM Ericsson and Asea. Asea turned its shares over to Ericsson after a few years. In the beginning, RIFA's main product was capacitors for Ericsson's telephone exchanges.

Export operations were begun on a modest scale during the mid-1960's. Naturally, capacitors dominated. In 1968, Svenska Elektronr5r (SER) merged with RIFA, thus providing know-how covering semiconductors, transistors and diodes. At the beginning of the 1970s, Ericsson began producing hybrid circuits in thick film to be used in its transmission systems. Integrated circuit (IC) production also began the same year. The first integrated circuits were exported in 1974. As a complement to bipolar methods developed by the company, NMOS technology was added in 1982. The CMOS process soon followed. In 1984 a production line for components made of gallium arsenide (GaAs) was started up. The following year, the production of Subscriber Line Interface Circuit (SLIC) was begun for Automated Exchange Equipment (AXE) exchanges. In 1981 development work was started on power products at RIFA. Two years later, the first products, DC/DC converter modules for telephone exchanges, were introduced on the world market. The same year, Ericsson's power division, with a history dating back to 1878 and with extensive know-how of telecom power, was merged with RIFA.

In March 1988, capacitor production, which accounted for 20 percent of the company's operations, was sold to the Finnish group Finvest AB. This included the name RIFA, which is intimately joined with capacitors. As a result, activities could be further concentrated on the strategic areas of microelectronics and power supply equipment. In 1983, the Ericsson Group was reorganized into eight business areas (BAs) listed below, all reporting to the Group executive committee. • Public telecommunications

• Information systems

Cable Defense systems Radio communication Network engineering and construction Components (Ericsson Components AB is part of this BA) Other operations Table 1 lists statistics for the components business area, and Table 2 lists the turnover figures for the components group external sales. Ericsson Components has the following three product areas: • Microcircuits: accounts for approximately 40 percent of total sales. • Power Systems and Units: accounts for approximately 30 percent of total sales. • Capacitors and Standard Components: accounts for approximately 30 percent of total sales. Table 3 shows Dataquest's estimates of Ericsson European semiconductor revenue by product line. For 1987, Dataquest estimates Components European revenue to be U.S. $34 million. Table 1 Components Business Area Statistics (Millions of Swedish Krona)

1984 1985 1986 1987

Net Sales, External SKr 799 SKr 852 SKr 788 SKr 763 Net Sales, Internal 426 609 721 1.047

Total Sales SKrl,225 SKrl,461 SKrl,509 SKrl,810

Operating Income SKr 34 SKr 22 SKr 31 SKr 88

Employees 4,231 4,343 3,919 3,578

Source: Dataquest September 1988

Table 2 Geographic Distribution of External Sales (Percent)

1986 1987

Europe, Excluding Sweden 41% 48% Sweden 21 24 Asia 10 10 Australia 9 7 United States and Canada 4 6 Latin America 12 3 Africa 3 2

Total 100% 100%

Table 3 Ericsson Components* Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1984 1985 1986 1987

:al Semiconductor $11 $11 $14 $41

Total Integrated Circuit $11 $11 $12 $39 Bipolar Digital 9 9 5 12 MOS 2 2 4 11 Linear 0 0 3 16

Total Discrete 0 0 0 0 Transistor 0 0 0 0 Diode 0 0 0 0 Thyristor 0 0 0 0 Other 0 0 0 0

Total Optoelectronic $ 2 $ 2

*Prior to March, 1988, Ericsson Components traded under the name of RIFA

Source: Dataquest September 1988

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BACKGROUND AND OVERVIEW European Silicon Structures GmbH was established in September of 1985 and had 250 employees in May 1988. The following is a corporate profile for European Silicon Structures GmbH.

Business Centers

Germany (Headg[uarters) France Industriestrasse 17 ES2 (Business Centre) D-8034 Germering 72-78 Grande Rue West Germany 92310 Sevres Tel. No. 49 84 84 93 90 France Fax. 49 89 84 93 920 Tel. No. 33 146 26 44 95 Telex: 17897453 Telex: 631439 Fax: 01 33 45071423 United Kingdom GS2 (Business Centre) Sweden Mount Lane ES2 (Business Centre) Bracknell, Berkshire Chalmers Teknikpark United Kingdom S-912 88 Gothenburg Tel. No. 0344 54 54 54 Tel No: 46 31 724 215 Telex: 847724 Fax: 46 10 724 216 Fax: 847724 Fax: 034 59412 United States US2 (Business Centre) The Netherlands 1971 Concourse Drive ES2 (Business Centre) San Jose, CA 95131 Beekvlietstraat 5 U.S.A. P 0 Box 84 Tel No: 408 435 1355 5270 KB Sint-Michielsgestel Fax: 408 435 0504 Tel No: 31 41 05 3299 Fax No: 31 41 05 4500 Telex: 50760

France Silicon Manufacturing Centre Zone Industrielle 13106 Rousset France Tel No: 33 42 33 4000 Fax: 33 42 33 4001 Telex: 403147

Company Executives Position Name Prior Company Prior Position

Co-Chairman Robert Heikes NSC Corporate VP Co-Chairman Robert W. Wilmot ICL Chairman CEO/Managing Director J.L. Grand-Clement Motorola VP Europe Group Vice President Finance/ Administration Pierre Lesieur Motorola Director Finance Vice President Manufacturing Bernard Pruniauz Thomson CSF Director Operations Vice President Software Technology Colin Adams Digital Equipment Software Manager Vice President Operations Rod Attwooll Texas Instruments Managing Director Vice President Northern Europe Robin Saxby Motorola Sales Manager Vice President Central Europe H.P. Friedrich Je rmyn-Ge rmany General Manager Vice President Southern Europe J.P. Demange NSC VP Strategic Marketing Vice President Technology John Gray Lattice Logic Founder

Financing

P»te Round Sources Amount Initial Advent, London; Techno-Venture $ 5M 1985 Management Corp., Munich

Brown Boveri and Cie. (Switzerland); $40M* December 1985 Ing. C. Olivetti & Co. (Italy); Saab-Scania, AB (Sweden); N.V. Philips (Netherlands); Telefonica (Spain)

January 1986 British Aerospace Honeywell Bull

October 1987 Department of Trade and Industry £328K

•Includes financing from British Aerospace and Honeywell Bull

Services • Foxondry • Design • Silicon compiler tools • Manufacturing • Packaging • Test • Education/training

Process Technology • 2.0-micron double-metal CMOS • E-beam on 5-inch wafers • 1.5-micron double-metal (1988) • 1.25-micron double-metal (1989)

Products • SOLO 1000 • SOLO 1200 • First SOLO • 2000 ASIC Design Software European Silicon Structures (ES2) was formed to supply quick-turnaround full-custom application-specific integrated circuits (ASICs) for European electronic equipment manufacturers. ES2 is dedicated to servicing the ASIC requirements of companies looking for all-layer custom devices. To this end, it is focusing on educating small and medium-size companies on the potential advantages to be gained by using customized chips in their products. Agreements made with Texas Instruments and Philips offer ES2's customers a pathway into high-volume production. ES2 uses a combination of silicon compilers technology for design and direct-write-on-wafer E-beam lithography for wafer production. This technology permits chips to be produced by direct writing on a wafer, thus eliminating the costly and time-consuming process of producing a mask for etching the silicon.

ES2 is incorporated in Luxembourg and headquartered in Munich, West Germany. Software development is centered in Edinburgh, Scotland, and Bracknell, England. Originally, Silicon production was carried out in the United States, but it has been transferred to a totally new production plant near Aix-en-Provence in southern France. ES2 has opened local business centers in Bracknell, England; Sevres, France; Germering, West Germany; Gothenburg, Sweden; Holland; and San Jose, California (US2). In addition to the ES2 Business Centers, a wide network of greater than 20 Franchise Technology Centers (FTCs) have been set up over Europe.

ES2'S PRODUCTS—ASIC DESIGN SOFTWARE ES2's SOLO family of silicon compiler products is based on Lattice Logic's products. The software places in the hands of electronic engineers ASIC design software capable of back-annotated simulation and layout within the bounds of a desktop system, similar in nature to an MPU development system. A design engineer can re-layout a chip as many times as he needs prior to shipping a tape to ES2 for manufacture. The software is capable of incorporating random logic, a range of digital blocks, and a range of analog I/O pads into a mixed ASIC. The analog library contains such devices as an ADC, a DAC, operational amplifiers, a voltage reference, and digital oscillators. The SOLO family includes: • SOLO 1000, which runs on a variety of workstations such as Sun, Apollo, and Digital and can integrate up to 10,000 gates • The SOLO 1200 system, which includes blocks and a comprehensive analog library • First SOLO, which runs on a PC with the addition of a coprocessor card In addition to the SOLO family, ES2 also distributes in Europe SDA's set of full-custom design tools, which are designed to support the requirements of even the most experienced IC designers.

Silicon Manufacturing Services With ES2's Standard Prototyping Service, customers receive ten fully tested prototypes in any gate count or package. No commitment to volume production is required before prototyping is performed.

Volume Production Once prototyped, ES2 can support volume production. If the quantity is low (10 to 5,000), it will be produced via E-beam technology; but if the volume is sufficiently high, it is cheaper to use conventional mask production. ES2 can handle the transparent transfer of a design to one of its foundry partners. To help companies understand ASIC technology and IC design software and to minimize the trauma of a first design, ES2 has put in place education and design consultancy groups. These operate from all the local ES2 Business Centers.

ALLIANCES

Lattice Logic 1985 ES2 signed an agreement with Lattice Logic to market Lattice's logic compiler in Europe.

British January 1986 British Aerospace invested $5 million in ES2. Aerospace

SDA Systems January 1986 ES2 signed a key marketing agreement with Solomon Design Associates (SDA) Systems. Under this agreement, ES2 will market SDA design systems throughout Europe and will also use them in a number o£ planned design centers. SDA's Designer Edge series of EDA systems will be installed in all ES2 design center locations.

Texas December 1986 ES2 signed an agreement to ensure that Texas Instruments Instruments and ES2 adopt a common approach Philips in their design methods for semicustom chips. Texas Instruments has a similar agreement with Philips, allowing the three companies to offer a wide range of choice, with ES2 concentrating on very low-voliune products and TI and Philips on larger volume.

Tektronix March 1987 Tektronix and ES2 collaborated to make ES2's ASIC library available on Tek's CAE2000 systems, with an interface called CADLINK-T.

Philips March 1988 Philips has agreed to adopt the proprietary E-beam direct-write technology of ES2 for high-voliune production of ASICs. Conversely/ ES2 has agreed to apply to the manufacture of its own ASIC prototypes. Philips' 1.5-micron dual-layer metal CMOS process, which together with Philips, it will take down to 1.2 microns by the end of 1988.

COMPANY HIGHLIGHTS

December 1985 Six European companies invested $25 million, representing 39 percent of ES2.

January 1986 British Aerospace invested $5 million in ES2.

ES2 signed a key marketing agreement with Solomon Design Associates (SDA) Systems. Under this agreement, ES2 will market SDA design systems throughout Europe and will also use them in a number of planned design centers. SDA's Designer Edge series will be installed in all ES2 design center locations.

April 1986 ES2 announced its first contract—a $60,000 deal with a Belgian design center to supply two SOLO Electronic CAE systems based on the Vlhitecbapel workstation and the Lattice Logic compilation software tools.

June 1986 Two unique services offered by ES2 were announced. These are the ability to design circuits at transistor level using SDA software tools, and a standard cell optimized array service that can take a customer all the way through the design process, including route and place, to software simulation for less than £20,000.

First Quarter ES2 received its first orders and made its first shipment, 1986 with the shipments coming from the sale of software and design services. The Company plans to have an ES2 proprietary software product that will represent the first step toward the behavioral compiler by the second half of 1987. A complete behavioral compiler will be introduced one year later. Expected worldwide sales for The Company are $5 million in the first 12 months of operation.

February 1987 Gothic Crellon became an ASIC design broker for ES2. Gothic Crellon will do introductory design work and will sell the ES2 range of chip design tools.

March 1987 As a result of ES2's agreement with TI and Philips, the three companies will offer accelerated prototyping services to their European customers. ES2 has implemented System Cell into the range of prototyping services that it offers.

April 1987 ES2 paid £1 million for Lattice Logic, a design software company based in Edinburgh. Lattice will retain its headquarters in Edinburgh but its operations will be absorbed into ES2's silicon technology division.

July 1987 United Silicon Structures US2, a wholly owned subsidiary of ES2, was launched at the Design Automation Show in Miami, Florida. US2 has its headquarters in San Jose and offers the full range of ES2 products to the U.S. market.

October 1987 ES2 opened for foundry business at Rousset, France. ES2 unveiled an enhanced set of ASIC design tools, its SOLO 1200, to coincide with the opening of the Rousset plant.

March 1988 ES2 announced that it is looking for a large cash injection by increasing the number of its major corporate shareholders from seven to ten. It plans to raise $5 million from each of the newcomers, which it will use to set up further Business Centers in Europe.

BACKGROUND AND OVERVIEW Eurosil Electronic GmbH (Eurosil) was formed in 1967 by Jean Hoemi, one of the founders of Fairchild Semiconductor Corporation. Mr. Hoemi previously founded Intersil, although apart from this link, the two companies remained independent. The Company was taken over by the Diehl Groi^, the West German industrial and commercial products company, in 1972. Eurosil originally supplied integrated circuits for the watch, clock, and telecom- mionications industries. Subsequently, the Company e}q)anded into other consumer areas including integrated circuits for hand-held, flat screen pocket games. Early in 1982, United Technologies Corporation GJTC), the U.S. conglomerate, through its Mostek subsidiary, and Telefunken Electronic GmbH, the West German semiconductor company, bought the majority of the Eurosil equity from Diehl. Together with the Diehl Group, they formed a new joint-venture company. The Diehl Group retained 13 percent of the shares, with Mostek and Telefunken Electronic GmbH splitting the remainder equally. The agreement was for the new company to take over the activities and assets of Diehl's Eurosil GmbH. The new joint venture would concentrate its activities in the development, production, and marketing of customized integrated circuits and CAD software services. In mid-1986, UTC sold off its 49 percent stake in Eurosil Electronic, although it still holds a 49 percent share in Telefunken Electronics GmbH. Telefunken Electronics GmbH has raised its stake in Eurosil from 49 percent through UTC's disposal. Telefunken Electronic GmbH now has obtained total management responsibility for the former joint venture.

PRODUCTS AND MARKETS SERVED Dataquest believes that Eurosil plans to concentrate its future product strategies on the design, development, and production of VLSI components, particularly gate arrays.

OUTLOOK Although Eurosil is now part of Telefunken Electronic GmbH, the Company continues to make its presence felt in the merchant semiconductor market, as shown in Tables 1 and 2.

Table 1 Eurosil Electronic GmbH Estimated EunY>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1M4 1985 199^ 1997

Total Semiconductor $8 $10 $10 $14 $11 Total Integrated Circuit $8 $10 $10 $14 $11 Bipolar Digital 0 0 0 0 0 MOS 8 10 10 14 11 Linear 0 0 0 0 0 Total Discrete 0 0 0 0 0 Transistor 0 0 0 0 0 Diode 0 0 0 0 0 Thyristor 0 0 0 0 0 Other 0 0 0 0 0 Total Optoelectronic

Source: Dataguest January 1989

Table 2

Eurosil Electnmic GmbH Estimated Worldwide Semioxiductor Revenue by Product Line (Millions of U.S. Dollars) 2M1 1994 1995 2M& 1997 Total Semiconductor $15 $20 $21 $32 $25 Total Integrated Circuit $15 $20 21 $32 $25 Bipolar Digital 0 0 0 0 0 MOS 15 20 21 32 25 Linear 0 0 0 0 0 Total Discrete 0 0 0 0 0 Transistor 0 0 0 0 0 Diode 0 0 0 0 0 Thyristor 0 0 0 0 0 Other 0 0 0 0 0 Total Optoelectronic

Source: Dataguest January 1989

BACKGROUND AND OVERVIEW Ferranti pic, which was incorporated in 1905, has its origins In the business formed by Sebastian Ziani de Ferranti in 1882 to manufacture the alternator invented independently by himself and Sir William Thomson. Mr. de Ferranti's interest in the electrical field led to subsequent inventions and the expansion of his business to include the manufacture of alternators, meters, transformers, fuses, and switch gear. The Company ran into financial difficulties in 1974, but was rescued by the U.K. government through the National Enterprise Board (NEB) with a £15 million investment. This investment gave the NEB 62.5 percent of the Company's equity. The NEB holding subsequently was reduced to 50 percent in 1978 and was reduced again in July 1980 when the majority of the NEB's holdings were placed with various financial institutions in London and in Scotland. It was a condition of this placement that the shares would not be traded for two years. The equity is held widely by financial institutions and the public, with Ferranti family interests retaining a minority holding. In 1977, Ferranti acquired Interdesign Inc., a Sunnyvale, California, compariy founded in 1970 to provide application-specific integrated circuits (ASICs). This complemented the ASIC gate array—uncommitted logic array (ULA)—activity already firmly established by Ferranti in the United Kingdom since the 1970s. Interdesign is now one of the leading U.S. manufacturers of integrated circuits. In 1982, Ferranti joined forces with the Wheelock Marden Group of Hong Kong to form a new company for the design and manufacture of ASICs for the Far East electronics industry. The new company is called Ferranti Wheelock Microelectronics Limited and is the first company in Hong Kong to offer such design and manufacturing facilities. In January 1984, as a result of its continuing success in ASICs, Ferranti completed and opened a new wafer fabrication and assembly facility for integrated circuits in Oldham. Manchester, the United Kingdom. This facility consists of 85,000 square feet of production area and is capable of producing 7,000 4-inch wafers per week in the class 10 clean-room area. Also in early 1984, Ferranti bought TRW Control Corp. of Texas, to broaden its market base in the United States. In September 1987, Ferranti and International Signal and Control GSC) announced that they were to merge. In November 1987, Ferranti sold its semiconductor division to Plessey for $49 million. Ferranti Semiconductor had assets valued at $64 million and worldwide semiconductor revenue of $102 million for 1987. Ferranti employs 2,000 people in its semiconductor operation.

Ferranti pic is currently divided into six main business areas: • Ferranti Defense Systems • Ferranti Industrial Electronics • Ferranti Computer Systems • Ferranti Electronics • Ferranti Instrumentation • Ferranti Other Activities - Ferranti GTE - Ferranti Engineering Ferranti Venus Scientific As shown in Table 1, Dataquest estimates that Ferranti's European semiconductor revenue in 1987 was $67 million; worldwide revenue was an estimated $102 million, as shown in Table 2.

Table 1

Ferranti pic Estimated £ur(^>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1994 199? 1986 1-997

Total Semiconductor $67 $65 $66 $67

Total Integrated Circuit $52 $50 $52 $51 Bipolar Digital 26 28 29 26 MOS 8 4 4 4 Linear 18 18 19 21

Total Discrete $15 $15 $14 $16 Transistor 8 8 5 6 Diode 7 7 9 10 Thyristor 0 0 0 0 Other 0 0 0

Total Optoelectronic

Source: Dataquest September 1988

Table 2

Ferranti pic Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1994 1995 199^ 1987

Total Semiconductor $105 $98 $95 $102

Total Integrated Circuit $ 85 $78 $78 $ 80 Bipolar Digital 46 49 43 37 MOS 12 6 11 12 Linear 27 23 24 31

Total Discrete $ 20 $20 $17 $22 Transistor 11 11 8 9 Diode 9 9 9 13 Thyristor 0 0 0 0 Other 0 0 0 0

Total Optoelectronic

Source: Dataquest September 1988

OUTLOOK Dataquest believes that acquiring Ferranti clearly is a step in the right direction for Plessey. The purchase of Ferranti will help Plessey considerably in its efforts to penetrate European and North American markets. Ferranti has a markedly higher marketing profile in North America than Plessey. The increased revenue will help support Plessey's R&D activities in the ASIC product range. Plessey will also benefit from Ferranti's technology and existing customer base. The emerging company looks decidedly ASIC in nature. But a closer inspection shows that the useful technology that Ferranti brings to Plessey is its mixed analog/digital expertise. The resulting ASIC capability would be enhanced with a core CPU and high-density memory cells. This may well lead Plessey to look for other acquisitions, and with $389 million in cash in the bank, there may be more expansion in the pipeline. Tables 3 and 4 show Dataquest's estimate of Plessey and Ferranti's 1987 European and worldwide semiconductor revenue.

Table 3 Plessey and Ferranti Estimated 1987 Eurean Semiconductor Revenue (Millions of U.S. Dollars)

Plessey Ferranti Pleissey/Ferrant i

Total Semiconductor $84 $67 $151

Total Integrated Circuit $69 $51 $120 Bipolar 15 26 41 MOS 31 4 35 Linear 23 21 44

Total Discrete 0 $16 $ 16 Transistor 0 6 6 Diode 0 10 10 Thyristor 0 0 0 Other 0 0 0

Total Optoelectronic $15 $ 15

Source: Dataquest September 1988

Table 4 Plessey and Ferranti Estimated 1987 Worldwide Semiconductor Revenue (Millions of U.S. Dollars)

Plessey Ferranti Pl9$isey/Ferrant i

Total Semiconductor $120 $102 $222

Total Integrated Circuit $103 $ 80 $183 Bipolar 31 37 68 MOS 39 12 51 Linear 33 31 64

Total Discrete 0 $ 22 $ 22 Transistor 9 9 Diode 0 13 13 Thyristor 0 0 0 Other 0 0 0

Total Optoelectronic $ 17 $ 17

Source: Dataquest September 1988

Fujitsu Limited 6-1, Marunouchi 1-chome Chiyoda-ku, Tokyo 100, Japan Telephone: 03-3216-3211 Fax: 03-3216-9365 Dun's Number: 08-292-1644 Date Founded: 1935

CORPORATE STRATEGIC DIRECTION United Kingdom and Germany came nearer to com pletion, while the system between Japan and the Fujitsu Limited, founded in 1935 as a spin-off of the United States went into operation. Communications Division of Fuji Electric Company Ltd., is a multinational Japanese firm. Fujitsu designs, Since the 1Mb DRAM market remained depressed in manufactures, and markets computers and informa the world marke^lace, business in electronic devices tion processing systems, telecommunications equip was difficult Fujitsu, however, expanded the sales ment, and electronic devices. To organize and unify of its products in ASICs, microprocessors, and such a diverse product offering, Fujitsu has seg compoimd semiconductors. mented its corporate structure into the above- mentioned main divisions, as well as a category called "Other Operations," which includes electronic According to Fujitsu, significant changes are occur products such as car stereos, CD players, and digital ring in the industry in downsizing, networks, and audiotape players. open systems. The company believes that these changes will define the technology that will be devel Although worldwide economic growth was slower oped in the 1990s. Although downsizing has reduced than expected because of the Gulf War and a slow their size and weight, products are being created with down in U.S. and European economies, Fujitsu greater power and performance. experienced a significant growth in btisiness. The company had an increase of almost 18 percent in Fujitsu has continued to develop products that total revenue fi-om $17.8 billion* in fiscal year 1990 directly support Intematioiud Service Digital Network to $21.0 billion in fiscal 1991. To achieve this (ISDN) and to offer Corporate Information Network growth, Fujitsu, as a total systems suppUer, endea System (COINS), which can be tailored to meet vored to offer a wide range of products from large- individual company needs. In addition, Fujitsu scale systems to personal equipment announced Multi-environment Information Systems Solution by Domain Concept (MISSION/DC), a Almost 70 percent of Fujitsu's revenue was derived domain-based mainframe concept diat gives users fi-om the Computers and Infonnation Processing Sys the flexibility necessary to structure the systems tems Division. The greatest focus in this division was they need. Fujitsu also announced a new on M Series general-purpose computers, UNIX open approach to netwodc system construction tliat offers systems, and advanced value-added software services. a user-friendly connection to Fujitsu mainframes Also showing considerable growth was the demand from workstations and PCs. This product is called for office machines and personal equipment MESSAGE 90s.

In the telecommunications field, Fujitsu supplied synchronous digital hierarchy (SDH) equipment to In the field of open systems, Fujitsu is promoting Nippon Telegraph and Telephone Corporation (Nil) worldwide standardization of the UNIX operating in Japan and pioneered synchronous optical transmis system across industries, offering a full lineup of sion (SONET) systems in the United States. In addi UNIX products from workstations to supercomputers. tion, the optical submarine cable system between the The company also developed the first operating sys tem for mainframes and supercomputers to use UNIX *A11 dollar amounts are in U.S. dollars. System V Release 4. Other computers across the

Fujitsu product line will be developed to run under supercomputers. The new systems, the VP2400/40 this operating system. and VP2200/40, feature a four-scalar processor, two- vector processor configuration, which enables In 1990, Fujitsu took a major step toward increasing enhanced high-speed program processing, its global presence by acquiring an 80 percent share in ICL pic, a computer unit of STC pic In January In September 1990, Fujitsu annoimced the M-1800 1991, as the first joiM project between the two com Model Group of large-scale computers, which con panies, Fujitsu began the marketing of DS/90 UNIX sists of five models. This was the first product server systems, developed by ICL and distributed introduction within the framework of MISSION/DC. through Fujitsu's overseas marketing network. Fujitsu plans to have the MISSION/DC be a major influence on its future product introductions. Research and development costs were 11,1 percent of revenue in fiscal 1991. Hiis increase represents According to Dataquest, in the worldwide business $2.3 billion as compared to $2.1 billion for 1990. supercomputer market, Fujitsu ranks first with a R&D continues to be an important part of Fujitsu's 56.03 percent market share for 1990; in the world future strategy. During fiscal 1991, the R&D fiinds wide technical supercomputer market, it ranks fourth were used to maintain the company's position as a with a 9.39 percent market share. In the worldwide pioneer in the competitive field of electronics. Future business mainfiame market, Fujitsu ranks fourth, with R&D products produced by Fujitsu will be more a 5.01 percent market share. In the worldwide powerfiil and targeted at customer networks, espe technical mainframe market, it also ranks fourth cially at the low end such as hand-held PCs and with a 7.44 percent market share. Finally, in cellular telephones. the worldwide business midrange market, Fujitsu ranks fifth with 5.56 percent of the market share. More detailed infoimation is available in Tables 1 and 2, which appear after "Business Segment Strategic Office Automation Direction" and present corporate highfights and reve nue by region. Tnfnrmatinn on revenue by distribu Within the ofi&ce automation product line, Fujitsu tion channel is not available. Tables 3 through 7, at ofifers small business computers, workstations, word the end of this backgrounder, present comprehensive processors, and personal computers, including busi financial infomiadoiL ness, hyperaiedia, desktop, portable, and laptop. In the worldwide personal computer market, including desktop, portable, laptop, and notebooks, Fujitsu had less than 1 percent of the market share in each of these categories. BUSINESS SEGMENT STRATEGIC DIRECTION VAN Services ^thin the VAN services product line, Fujitsu offers Computers and Data Processing industry VANs, local VANs, corporate VANs, and The Computers and Information Processing Systems personal communications services. During fiscal Division's net sales increased approximately 23.1 per 1991, Fujitsu expanded the FENICS VAN service cent to $14.6 billion in fiscal 1991, accounting for network, enhanced database services, and started 69 percent of the company's total net sales. This FENICS-INS packet-switehed services. To respond to increase was mainly due to weU-received mainframe the expansion of international VAN services in Asia, systems, including the new M-1800 group of very- Fujitsu started a data switehing service between Japan large-scale general-purpose computers, and to the and Singapore. In addition, the NUTY-Serve personal strong performance of office machines and personal computer commimications service was expanded to equipment in the domestic market, as well as the include English-to-Japanese machine translation, contribution of ICL. electronic niail, facsimile, and other services. As of March 31, 1991, this service has more than 260,000 subscribers. Computer Systems Within the computer systems product line, Fujitsu Computer Storage offers products from supercomputers to general- purpose computers. In August 1991, Fujitsu Fujitsu built its reputation in the rigid disk drive 'introduced two new models of the VP2000 Series market with solutions for high-end computers. The

company produces rigid dislc drives in a variety and the C-NAP n/CASE technical support tool of sizes from 2.5-inch to 14-inch. According to for analyzing system requirements. Also, to Dataquest, during 1990 Fujitsu ranked eighth in the expand the computer-integrated manufacturing busi worldwide overall total rigid disk drive market with a ness, the company started consulting and basic 2.9 percent market share. In the 8- to 14-inch world planning services to support system structuring in wide rigid disk drive maiket, it ranked fourth with the fields of production and product distribution. a 13.8 percent market share.

In September 1990, Fujitsu announced the M2671P, Telecommunications an 8-inch disk drive that provides 2.6GB of storage The Telecommunications Division's product line is and o&as a data transfer rate of 4.78 MB/sec. and ISDN systems, COINS, mobUe communication, a seek time of less than 12ms. switching systems, and transmission systems. In fiscal 1991, the division recorded net sales of $3.1 billion, ID September 1991, Fujitsu introduced a line of hi^- an increase of approximately 13 percent over fiscal capacity, low-profile, 2.5-inch rigid disk drives. This 1990. Net sales of the division accounted for product line consists of three disk drives all backed 15 percent of total net sales. by a 150,000 hour mean time between failures rating, a comprehensive warranty program, and capacities of ISDN 45MB, 67MB, and 90MB. All four drives feahne an average seek time of 18ms, burst data transfer rates of NTT's new ISDN service INS net 64/1500 is achiev up to 6 MB/sec, and an average latency of 8.3ins. ing acceptance, and many users are applying the network to fit their applications. In fiscal 1991, the Fujitsu also produces tape drives in 1/2-inch reel- packet communications mode in INS net was to-reel, start-stop, and streaming. During calendar approved and the new INS-P service was started. In 1990, according to Dataquest, Fujitsu ranked addition, demand increased for the ISDN-compatible fourth in the 1/2-inch worldwide tape drive systems, which support the entire scope of these market with a 9.0 percent market share. It also ISDN services. ranked fifth in the 1/2-inch worldwide reel-to-reel worldwide t^)e drive market with a 7.3 percent COINS market share. COINS is a corporate information network system that is receiving significant interest from companies Electronic Printers as a multimedia network with excellent economy and The company manufactures and markets line- extendability. It integrates data, voice, and images. By impacted, fully formed printers, serial impact dot die end of March 1991, Fujitsu had strengthened matrix printers, baud printers, and laser printers. COINS to implement ISDN communications forms According to Dataquest, during 1990 the company by adding 1.5Mb line-switcMng and packet-switching had less than 1 percent of the total worldwide printer functions to conventional private ISDN functions. market. Mobile Communication Software Demand increased sharply for small, lightweight cel Within the software product line, Fujitsu offers oper lular telephones in the field of mobile communica ating system software, application software, transla tion. NTT is promoting development of very small tion support systems, and architectures. In May 1991, and lightweight cellular telephones, Fujitsu is MESSAGE 90s was introduced as a new approach to participating in this development under contract with system construcdotL Its function is to help organiza NTT. In the U.S. cellular telephone handset mariiiet, tions process infoimation effectively and set up sys Fujitsu ranked sixdi with a 7.2 percent market share. tems quickly through linked software products, liis product line allows the use of hardware and software from other vendors to be used in Fujitsu systems. For Switching Systems example, NEC or IBM PCs can run LOTUS 1-2-3 Within the switching systems product line, Fujitsu seamlessly in a Fujitsu-based network. offers central office switching systems and digital PBX switching systems. During fiscal 1991, Fujitsu During fiscal 1991, Fujitsu strengthened System developed and delivered a prototype of the next- Development Architecture and Support ^cilities, with generation node system for the D-70. For digital the SDEM90 standard method of system development PBXs, the company added appUcation packages to

the series. Fujitsu also released the cost-effective a gate delay of 0.5ns and contain up to 14,000 gates. E-lOO Series of information switching systems. In the The remaining eight feature a gate delay of 0.35ns U.S. PBX systems market, with 1,000 plus lines and contain up to 102,0(X) gates. In the worldwide (new), Fujitsu ranked sixth with a 2.5 percent total ASIC market, Fujitsu ranked number one maiket share. In die 101 to 400 lines (new) seg with a market share of 13.0 percent ment, the company ranked eighth with a market share of 2.5 percent. Compound Semiconductors Transmission Systems During fiscal 1991, the compotmd semiconductor Within the transmission systems product line, Fujitsu market developed a strong demand for low-noise high offers digital commtmications equipment and earth electron mobility transistors (HEMTs) for satellite station systems for satellite communication. The com broadcasting receivers. Fujitsu developed and pany implemented SDH, an international standard released a super HEMT that can capture very weak that will open conununicadons environments and signals because of dramatic improvements in gain and enable ISDN and other new services to be used signal-to-noise ratio. Fujitsu also developed and more ef&dently. In Japan, NTT is actively promo released a GaAs gate array that features high-speed, ting the conversion to SDH, while Fujitsu is de large-scale integration and low power consimiption. livering many transmission systems and radio To respond to future increases in demand for HEMTs, equipment that comply with SDH. GaAs FETs, and GaAs ICs, Fujitsu constructed a plant targeted for GaAs products. Electronic Devices The Electronic Devices Division includes IC memo Other Electronic Devices ries, ASICs, compotmd semiconductors, and other electronic devices. Dataquest estimates ^t Fujitsu In fiscal 1991, in response to rising use in home ranked sixth in the worldwide semiconductor market, electrical appliances, telephones, and office machines, with 4.9 percent of the market share and revenue Fujitsu added apphcation specific microcontrollers to totaling $2.9 billion during calendar year 1990. This its market offerings. Fujitsu also developed a 16-bit includes captive sales, which are excluded from the microcontroller that performs fuU 16-bit processing Electronic Devices Division's sales, as reported in the with an instruction cycle of 100ns. In addition, sig annual report Net sales within this division decreased nificant releases included a 16-inch plasma dis by 1.0 percent from $2.49 billion to $2.47 billion. llie division accounted for 12.0 percent of total net play with a resolution of 1280 x 1024 pixels and sales. The semiconductor product line can be seg a membrane keyboard with a small foo^nint and mented into IC memories (MOS and bipolar technol low profile. ogy), ASICs (MOS and bipolar technology), large- scale integrations (LSIs), and electronic components. Other Operations

IC Memories Other operations range from products such as In fiscal 1991, Fujitsu increased its production of car stereos to automatic vehicle monitors. Al 4Mb DRAMs. The company also started delivering though in fiscal 1991, this division accounted for samples of 16Mb DRAMs, which will be the next only 4 percent of total net sales, it increased generation of computer memory. In February 1991, approximately 16 percent to $885. Fujitsu announced a prototype of a 64Mb DRAM that uses new photo lithography expostire technology. This new technology will make mass production pos Further Information sible. Also, in February 1991, Fujitsu annotmced the 4Mb BiCMOS ECL SRAM, with an access time of For further information pertaining to the company's 7ns. business segments, please contact the appropriate Dataquest industry service. ASICs In fiscal 1991, demand rose for faster and larger-scale CMOS gate arrays. To meet this demand, Fujitsu released 15 new products, 7 of which feature

Table 1 Five-Year Corporate Highlights (MiUions of U.S. Dollars) 1987 1988 1989 1990 1991 Five-Year Revenue 11,218 14,830 18,616 17,839 21,043 Percent Change 46.71 32.19 25.53 (4.17) 17.96

Capital Expenditure 814 1,209 1,825 2,105 2,231 Percent of Revenue 7.25 8.16 9.81 11.80 10.60

R&D Expenditure 1,043 1,378 1,925 2,093 2,336 Percent of Revenue 9.30 9.29 10.34 11.73 11.10

Number of Employees 89,293 94,825 104,503 115,000 145,000 Revenue ($K)/Employee 126 156 178 155 145

Net Income 135 305 545 607 585 Percent Change (23.00) 125.24 78.74 11.29 (3.55)

Exchange Rate (U.S.$1=^ 159.51 138.02 128.25 142.93 141.21

1991 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue NA NA NA NA Quarterly Profit NA NA NA NA

NA = Not available Source: Fujitsu Uonited Ammal Reports Dataquest (December 1991)

Table 2 Revenue by Geographic Region (Percent) Region 1987 1988 1989 1990 1991 Japan 78.06 77.89 77.87 76.13 75.17 International 21.94 22.11 22.13 23.87 24.83

Somce: Fujitsu T imUlvt Ammal Reports Dataquest (December 1991)

Fujitsu Component (Malaysia) Electronic parts (relays, keyboards, connectors) 1991 SALES OFFICE LOCATIONS Fujitsu Computer Technology (Japan) Development of LSIs, software for infonnation North America—^3 processing equipment Europe—4 Fujitsu Denso (Japan) Asia^'acific—90 Communications/electronic equipment Japan—82 Fujitsu General (Japan) ROW—3 Home electric appliances, communications equipment, data processing equipment Fujitsu Isotec (Japan) Printers Fujitsu Kasei (Japan) MANUFACTURING LOCATIONS Plastic products for communications equipment Fujitsu Kiden (Japan) Data processing equipment, indicators, molds North America Fujitsu Microelectronics Asia (Singapore) Semiconductor devices Fujitsu America Fujitsu Microelectronics (Malaysia) Communications and information processing Semiconductor devices equipment, development of software Fujitsu Miyagi Electronics (Japan) Fujitsu Business Communications Systems Semiconductor devices Communications equipment Fujitsu Peripherals (Japan) Fujitsu Microelectronics Peripherids Semiconductor devices Fujitsu TEN (Japan) InteUistor Inc. Car radios, stereos Development of information processing equipment Fujitsu Thailand (Thailand) Magnetic disk drive heads, magnetic heads for Europe printers Fujitsu Tohoku Electronics (Japan) Fujitsu Espana (Spain) Semiconductor devices Communications and information processing Fujitsu VLSI (Japan) equipment Development of semiconductor devices Fujitsu Microelectronics (Ireland) Fujitsu Yamanashi Electronics (Japan) Semiconductor devices Semiconductor devices Fujitsu Microelectronics (United Kingdom) Hasegawa Electric (Japan) Development of ASICs Communications equipment Kjrushu Fujitsu Electronics (Japan) Semiconductor devices Asia/Pacific Nihon Dengyon (Japan) FKL-Dongwa (South Korea) Radio and digital communications equipment Magnetic floppy disk drive heads PFU Ltd. (Japan) Fuji Electrochemical (Japan) Microcomputers, peripherals Ferrites, electronic equipment, dry batteries Shinano Fujitsu (Japan) Fuji Facom (Japan) Electronic parts Development of computer systems for control Shinko Electric Industries (Japan) Fujitsu (Singapore) Semiconductor parts Electronic parts (digital switching systems) Takamisawa Electric (Japan) Fujitsu Australia (Australia) Switching systems, parts Digital key telephones, digital PBXs Towa Electron (Japan) Fujitsu Automation (Japan) Capacitors, hybrid ICs Automation equipment Yamagata Fujitsu (Japan) Fujitsu Buhin (Japan) Magnetic disk drives Electronic parts

Fujitsu Aichi Engineering Limited (Japan) Fujitsu Australia Ltd. (Australia) SUBSIDIARIES Fujitsu Australia Software Technology Pty. Ltd. (Australia) Fujitsu Australia Wholesale Pty. Ltd. (Australia) North America Fujitsu Automation Limited (Japan) Fujitsu Basic Software Corporation (Japan) Fujitsu America Inc. (United States) Rijitsu Business Systems (Japan) Ltd. (Japan) Fujitsu Business Communications Systems Inc. Fujitsu Communications Systems (Japan) (United States) Fujitsu Component (Malaysia) Sdn. Bhd. (Malaysia) Fujitsu Canada Inc. (Canada) Fujitsu Computer Technologies (Japan) Fujitsu Component of America Inc. (United States) Fujitsu Dai-ichi Commimication Software Limited Fujitsu Computer Packaging Technologies Inc. (Japan) (United States) Fujitsu Dai-ichi System Engineering Limited (Japan) Fujitsu Computer Products of America Inc. (United Fujitsu Denso Ltd. (Japan) States) Fujitsu Devices Inc. (Japan) Fujitsu Customer Service of America Inc. (United Fujitsu Digital Technology Limited (Japan) States) Fujitsu Distribution Systems Engineering Limited Fujitsu Imaging Systems of America Inc. (United (Japan) States) Fujitsu Documents Service Limited (Japan) Fujitsu Microelectronics Inc. (United States) Fujitsu Electronics (Singapore) Pte. Ltd. (Singapore) Fujitsu Network Switching of America Inc. (United Fujitsu FACOM Infonnation Processing Coiporation States) (Japan) Fujitsu Network Transmission Systems Inc. (United Fujitsu Financial Information Systems Limited States) (Japan) Fujitsu Systems of America Inc. (United States) Fujitsu Fudosan Ltd. (Japan) Fujitsu Systems Business of America Inc. (United Fujitsu Hong Kong Lfal. (Hong Kong) States) Fujitsu Isotec Limited (Japan) Intellistor Inc. (United States) Fujitsu Kansai Communication Systems Limited Poqet Computer Corp. (United States) (Japan) Fujitsu Kansai System Engineering Limited (Japan) Fujitsu Kasei Ltd. (Japan) Europe Fujitsu Keihin Systems Engineering Limited (Japan) Fujitsu Deutschland GmbH (Germany) Fujitsu Kiden Ltd. (Japan) Fujitsu Espana S.A. (Spain) Fujitsu Korea Ltd, (Korea) Fujitsu Europe Ltd. (England) Fujitsu Kosan Limited (Japan) Fujitsu Kyushu Communication Systems Limited Fujitsu Europe Telecom R&D Centre Limited (United Kingdom) (Japan) Fujitsu Finance (U.K.) pic (United Kingdom) Fujitsu Kyushu Systems Engineering Ltd. (Japan) Fujitsu Laboratories Ltd. (Japan) Fujitsu International Finance (Netherlands) B.V. Fujitsu Lease (Japan) (Netherlands) Fujitsu Logistics Limited (Japan) Fujitsu Italia S.p.A. (Italy) Fujitsu Microelectronics Asia Pte. Ltd. (Singapore) Fujitsu Microelectronics Ireland Ltd. (Ireland) Fujitsu Microelectronics (Malaysia) Sdn. Bhd. Fujitsu Microelectronics Italia Sxl. (Italy) (Malaysia) Fujitsu Microelectronics Ltd. (England) Fujitsu Microelectronics PacijBc Asia Ltd. (Hong Fujitsu Mikroelektronik GmbH (Germany) Kong) Fujitsu Nordic AB (Sweden) Fujitsu Minami-Kyushu Systems Engineering Limited Fulcrum Communications Limited (United Kingdom) (Japan) Fujitsu Miyagi Electronics Ltd. (Japan) AsialPacific Fujitsu Nagano Systems Engineering Limited (Japan) Fujitsu Network Engineering Limited (Japan) Beijing Fujitsu Systems Ltd. (China) Fujitsu New Zealand Holdings Ltd. (New Zealand) Fuji Electrochemical Co. Ltd. (Japan) Fujitsu New Zealand Ltd. (New Zealand) Fujitsu Advanced Printing and Publishing Co. Ltd. Fujitsu OA Limited (Japan) (Japan) Fujitsu Office Machines Limited (Japan)

Fujitsu Oita Software Laboratories Limited (Japan) Corporation and several publishing houses to Fujitsu Peripherals Limited (Japan) establish a standard for CD-ROM electronic books. Fujitsu Program Laboratories Limited (Japan) Hitachi Ltd., Sony Corporation, Texas Instru Fujitsu Shikoku Infortcc Limited (Japan) ments Japan Ltd. Fujitsu Sbizuoka Engineering Limited (Japan) Fujitsu Ltd., Hitachi Ltd., Sony Corporation, and Fujitsu (Singapore) Pte. Ltd. (Singapore) Texas Instruments Japan Ltd. signed an agreement Fujitsu Simer Limited (Japan) to codevelop the MUSE decoder integrated cir Fujitsu Social Science Laboratory Limited (Japan) cuits. MUSE is the standard high-definition televi Fujitsu Social Systems Engineering Limited (Japan) sion format in JapaiL The cooperative efforts by Fujitsu Supplies Limited (Japan) the four companies is expected to accelerate the Fujitsu System Integration Laboratories Ltd. (Japan) development of a small, low-cost, next generation Fujitsu Systems Constructiou (Japan) MUSE decoder. Fujitsu Systems Consulting (Japan) Texas Instruments Fujitsu Technosystems Limited (Japan) Fujitsu and Texas Instruments signed a five-year Fujitsu TEN Limited (Japan) global semiconductor patent cross-licensing agree Fujitsu (Thailand) Co. Ltd (Thailand) ment The deal encompasses most of the semicon Fujitsu Tohoku Electronics Ltd. (Japan) ductor patents by the two firms except the Texas Fujitsu Tohoku Systems Engineering Limited (Japan) Instruments Kilby patent Fujitsu Tokia Systems Engineering Limited (Japan) Cadence Design Systems Fujitsu Trading Ltd. (Japan) Cadence Design Systems and Fujitsu have signed a Fujitsu "VLSI Limited (Japan) joint development agreement to produce ASIC Fujitsu Quantum Devices Ltd. (Japan) software tools. Gunma Fujitsu limited (Japan) Hasegawa Electric Co. Ltd. (Japan) Quotient pic Ishikawa Fujitsu Software Limited (Japan) Quotient pic and Fujitsu signed a joint develop Iwaka Densi Ltd. (Japan) ment agreement to produce financial software Kyushu Fujitsu Electronics Ltd. (Japan) systems. Nihon Dengyo Limited (Japan) KBS2 Corp. Okinawa Fujitsu Systems Engineering Limited KBS2 Corp. and Fujitsu signed a joint develop (Japan) ment agreement to develop crashworthiness PFU Limited (Japan) software. SMmane Fujitsu (Japan) Shinano Fujitsu Ltd. (Japan) Rodime pic Shin-Etsu Fujitsu (Japan) Rodime pic entered into a nonexclusive royalty- Shinko Electric Industries Co. Ltd. (Japan) free patent cross-licensing agreement with Fujitsu Ten Orikyo Ltd. (Japan) Ltd. The agreement is for the use of Rodime Totalizator Engineering Limited (Japan) patents that apply to 3.S-inch drives. Toyama Fujitsu (Japan) Cincom Systems Yamagata Fujitsu Limited (Japan) Cincom Systems and Fujitsu will combine busi Yonago Fujitsu (Japan) ness efforts in the Canadian market to offer high- ROW performance software. Fujitsu de BrasU Limitada (Brazil) Fujitsu Vitonia Computadores e Services Ltda McDonnell Douglas Information Systems Interna (Brazil) tional (MDISI) MDISI and Fujitsu have made an agreeement to port the PRO-rV 4GL software package developed by MDISI to Fujitsu's K Series office computers. The two firms wiU then market the software. ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS 1990 Novell K.K. 1991 A joint marketing venture to sell Netware products EPWING Consortium in Japan was formed with Novell and six partners, The EPWING Consortium was created with Sony Fujitsu being one of them. t ©1991 Dataquest Incorporated December—^Reproduction Prohibited 00123S9 Fujitsu Limited

Isuzu 1989 The two companies have formed an automotive electronics venture and currently are attempting to Japan Tobacco Inc. get General Motors to join. Fujitsu formed a tie-up agreement with Japan Tobacco whereby Fujitsu will market two of Japan Matsushita Electric Industrial Tobacco's software modules. The two companies plan to strengthen their busi ness relationship by mutually supplying their com The Australian National University in Canberra puters on an OEM basis. Fujitsu wiU supply Mat The two organizations signed an R&D agreement sushita with its high-end laptop and desktop 32-bit for two three-year projects. One project is to PCs; Matsushita will supply Fujitsu with die M550 develop a small image processing system; the other and M600 series of 32-bit desktop personal com is to develop software for parallel processors. puters. Vitesse Semiconductor Poqet Computer The two companies agreed to jointiy develop Fujitsu will produce and market Poqet Computer's GaAs gate arrays. pocket-size conqjuter under hcense, Fujitsu's stake in Poqet Computer has grown gradually over the Southern New England Telecommunications last two years because of mutual agreement and Systems investments into R&D and manufacture of Poqet's Southern New England Telecommunications product lineup. agreed to market Fujitsu's ISDN telecommtmica- Nokia Data Systems Oy tions equipment in the United States on an exclu An agreement has been made whereby Nokia will sive basis. The list of products includes digital act as an OEM of digital PBX systems (die F-620 telephones and terminal adapters. and F-640) for Fujitsu. NTT Data Communications Systems Matsushita Electric Industrial The two companies will jointiy market their The two companies plan to strengthen their busi respective logic chip design software products as a ness relationship by mumaUy supplying their com total CAE design system. puters on an OEM basis. Sony Corporation UNIX International The two companies jointiy developed a trial com Fujitsu has joined a new marketing group compris mon rule to develop CD-ROM XA software for ing 21 other high-tech companies. The group wUl their personal computers. promote UNIX's System V release 4 and furdier standard developments. BeU Atlantic Optical Network (SONET) Fujitsu agreed to sell Bell Atlantic's transmission Molecular Design Ltd. and IBM products under a two-year, $2 million contract Fujitsu has formed a relationship with the two Fujitsu wiU provide its FLM 50/150 Fiber LOOP con^anies to ensure that Molecular Design soft Multiplexer for deployment in Bell Atlantic areas. ware for managing and communicating scientific information will run on their computers. Poqet Computer Corporate An agreement provides Poqet with funding and Mitsui Bank Research Institute credit guarantees; the companies made a coopera The two companies have agreed to establish a tive technology agreement allowing for mutual system consulting service. adaptation of technologies and joint development MEDIAGENIC of new technology. MEDIAGENIC has agreed to develop entertain ment software for the Fujitsu FM TOWNS. Sun Microsystems Inc. Sun and Fujitsu will jointiy develop a high-speed Daisy/Cadnetix Inc. RISC chip. The companies jointiy produced an ASIC design kit developed for the DAZIX design environment on the Sun-4 family of workstations running on 1988 UNIX. Telecom Australia Vitesse Semiconductor Corporation Telecom Australia agreed to sell Fujitsu's digital The companies have entered into an alternate PBXs in Australia; the companies established sotu°ce agreement with regard to Vitesse's Fury a sales joint-venture, Information Switching gallium arsenide (GaAs) VLSI gate-array family. Technology.

Daisy Systems ICL pic Fujitsu's FAME was made available on Daisy's Fujitsu purchased 80 percent of ICL, a subsidiary Advansys Series of CAD/CAE systems. of STC pic. The merger increases Fujitsu's global presence and makes it the second largest computer Hitachi Ltd. manufacturer in the world. The two companies agreed to cooperate on the development of a 32-bit MPU and peripheral LSI family based on TRON architecture.

KEY OFFICERS

Takuma Yamamoto MERGERS AND ACQUISITIONS Chairman and representative director Matami Yasufuku Fulcrum Communications Ltd. Vice chairman and representative director British Telecommunications pic sold the manufac Tadashl Sekizawa turing division of Fulcrum Communications to President and representative director Fujitsu Ltd. but will retain a 25.1 percent interest in the new company. The company makes and Kazuo Watanabe markets pubUc switched telephone network equip Vice president and representative director ment such as call monitoring and logging products, call queueing, exchange monitoring, and fiber Mikio Ohtsuki optic tools. Executive vice president Nokia Data Motojiro Shiromizu Nokia Data, which is one of Europe's largest Executive director computer companies, was purchased by ICL Ltd. Mamoru Mitsugi (80 percent owned by Fujitsu). ICL Ltd. Executive director will pay $402.3 miUion for the company and will assume about $174.9 million of Nokia's Tokio Tatsuta debt. Nokia's parent corporation, Nokia Corpora Executive director tion, wUl receive a 5 percent stake in ICL Ltd. Eigo Kato Poqet Computer Corporation Executive director Fujitsu increased its stake to 85 percent in Poqet Computer Corporation for $37 milUon. In 1988, Matsuro Umezu Fujitsu had purchased a 28 percent equity stake in Executive director the firm. Fujitsu has been working with Poqet Ryoichi Sugioka Computer to develop Japanese versions of pocket Executive director computers. Softway Fujitsu acquired a 40 percent interest in Softway, an Australian software company. Both companies PRINCIPAL INVESTORS will collaborate on UNIX systems development Continental Venture Capital, Softway, and Tech- way staff also hold a 20 percent interest in the Fuji Electric Co. Ltd.—13.5 percent company. Asahi Mutual Life Insurance Company—6.5 percent Hal Computer Systems Inc. Fujitsu Ltd. acquired a 44 percent interest totaling $40.2 million in Hal Computer Systems. The com pany is developing a family of high-performance FOUNDERS open systems based on the SPARC architecture and UNIX System V Release 4. Information is not available.

Table 3 Balance Sheet Fiscal Year Ending March 31 (Millions of U.S. DoUars) Balance Sheet 1987 1988 1989 1990 1991 Cash 1,125 1,764 2,379 1,833 2,906 Receivables 2,904 3,645 4,615 5,104 6,025 Marketable Securities 137 648 189 225 159 Inventory 2,562 3,354 3,734 4,097 5,038 Other Current Assets 307 408 452 265 599 Total Current Assets 7,035 9,818 11,369 11,523 14,726 Net Property, Plants 3,424 4,289 5,481 5,777 6,947 Other Assets 2,067 2,678 3,617 3,489 4,792 Total Assets 12,527 16,784 20,467 20,789 26,465 Total Current Liabilities 4,991 7,059 8,581 8,979 11,939 Long-Term Debt 2,117 2,185 2,467 2,368 4,091 Other Liabilities 1,153 1,548 1,924 1,849 2,225 Total Liabilities 8,261 10,792 12,973 13,197 18,256 Converted Preferred Stock NA NA NA NA NA Common Stock 2.115 3,364 4,252 4,219 4,350 Other Equity 71 92 110 110 123 Retained Eamings 2,080 2,536 3,133 3,264 3,737 Total Shareholders' Equity 4,266 5,992 7,495 7,592 8,210 Total Liabilities and Shareholders' Equity 12,527 16,784 20,467 20,789 26,465 Exchange Rate (U.S.$1=^ 159.51 138.02 128.25 142.93 141.21

NA = Not available Source: Fujitsn Limited Amnial Reports Dataquest (December 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending March 31 (MiUions of U.S. Dollars, except Per Share Data) Consolidated Income Statement 1987 1988 1989 1990 1991 Revenue 11,218 14,830 18,616 17,839 21,043 Domestic 8,757 11,551 14,496 13,581 15,818 Overseas 2,461 3,279 4,120 4,258 5,225 Cost of Sales 7,728 9,703 11,914 11,043 12,893 R&D Expense 1,043 1,378 1,925 2,093 2,336 SG&A Expense 2,057 2,883 3,328 3,337 4,298 Capital Expense 814 1,209 1,825 2,105 2,231 Pretax Income 301 768 1,210 1,191 1,088 Pretax Margin (%) 2.68 5.18 6.50 6.68 5.17 Net Income 135 305 545 607 585 Shares Outstanding, Millions 1,593.3 1,710.0 1,760.1 1.760.1 1,760.1 Per Share Data Earnings 13.40 23.50 36.80 36.80 $36.80 Dividend 8.00 8.00 9.00 9.00 9.00 Book Value 2.68 3.50 4.26 4.31 4.66 Exchange Rate (U.S.$1=¥) 159.51 138.02 128.25 142.93 141.21

Somce: Fujitsn Limited Amnial Reports Dataquest (December 1991)

Table 5 Balance Sheet Fiscal Year Ending March 31 (Millions of Yen) Balance Sheet 1987 1988 1989 1990 1991 Cash 179,409 243,492 305,166 261,928 410,365 Receivables 463,150 503,035 591,815 729,471 850,761 Marketable Securities 21,863 89,402 24,219 32,154 22,413 Inventory 408,718 462,869 478,840 585,546 711,392 Other Current Assets 49,035 56,326 58,017 37,867 84,579 Total Current Assets 1,122,175 1,355,124 1,458,057 1,646,975 2,079,510 Net Property, Plants 546,233 591,921 702,988 825,757 980,961 Other Assets 329,779 369,549 463,882 498,633 676,699 Total Assets 1,998,187 2,316,594 2,624,927 2,971,365 3,737,170 Total Current Liabilities 796,143 974,268 1,100,577 1,283,409 1,685,950 Long-Term Debt 337,660 301,618 316,395 338,481 577,700 Other Liabilities 183,980 213,685 246,778 264,347 314,221 Total Liabilities 1,317,783 1,489,571 1,663,750 1,886,237 2,577,871 Converted Preferred Stock NA NA NA NA NA Common Stock 337,308 464,365 545,369 602,980 614,205 Other Equity 11,359 12,659 14,050 15,658 17,381 Retained Earnings 311,737 349,999 401,758 466,490 527,713 Total Shareholders' Equity 680,404 827,023 961,177 1,085,128 1,159,299 Total Liabilities and Shareholders' Equity 1,998,187 2,316,594 2,624,927 2,971,365 3,737,170 Exchange Rate (U.S.$1^ 159.51 138.02 128.25 142.93 141.21

NA = Not available Somce: Fujitsu Limited Annual Reports Dataquest (December 1991)

Table 6 Consolidated Income Statement Fiscal Year Ending March 31 (Millions of Yen, except Per Share Data)

Consolidated Income Statement 1987 1988 1989 1990 1991 Revenue 1,789,417 2,046,802 2,387,442 2,549,773 2,971,462 Domestic 1,396,876 1,594,193 1,859,129 1,941,075 2,233,493 Overseas 392,541 452,609 528,313 608,698 737,969 Cost of Sales 1,232,722 1,339,183 1,527,908 1,578,343 1.820,554 R&D Expense 166,342 190,130 246,906 299,107 329,823 SG&A Expense 328,184 397,968 426,779 476,979 606,890 Capital Expense 129,822 166,924 234,113 300,822 315,109 Pretax Income 48,012 106,048 155,152 170,216 153,573 Pretax Margin (%) 2.68 5.18 6.50 6.68 5.17 Net Income 21,609 42,115 69,948 86,758 82,673 Shares Outstanding, Millions 1,593.3 1,710.0 1,760.1 1,802.4 1,812.1 Per Share Data Earnings 13.40 23.50 36.80 45.40 42.20 Dividend 8.00 8.00 9.00 9.00 10.00 Book Value 427.04 483.64 546.09 602.05 639.75 Exchange Rate (U.S.$1=^ 159.51 138.02 128.25 142.93 141.21

Source: Fujitsu Lhnited Annual Reports Dataquest (December 1991)

Table 7 Key Financial Ratios Fiscal Year Ending March 31

Key Financial Ratios 1987 1988 1989 1990 1991 Liquidity Current (llines) 1.41 1.39 1.32 1.28 1.23 Total Assets/Equity (%) 293.68 280.11 273.10 273.83 322.36 Current Liabilities/Equity (%) 117.01 117.80 114.50 118.27 145.43 Total Liabilities/Equity (%) 193.68 180.11 173.10 173.83 222.36 Profitability (%) Return on Assets 1.08 1.82 2.66 2.92 2.21 Return on Equity 3.40 6.19 8.46 9.03 7.62 Profit Margin 1.21 2.06 2.93 3.40 2.78 Other Key Ratios R&D Spending % of Revenue 9.30 9.29 10.34 11.73 11.10 Capital Spending % of Revenue 7.25 8.16 9.81 11.80 10.60 Employees 89^93 94,825 104,503 115,000 145,000 Revenue (¥)/Employee 20,040 21,585 22,846 22,172 20,493 Capital Spending % of Assets 6.50 7.21 8.92 10.12 8.43 Exchange Rate (U.S.$1=^ 159.51 138.02 128.25 142.93 141.21 Source: Fajitsu limited Ammal Reports Dataqaest (December 1991)

General Instrument Corporation

BACKGROUND AND OVERVIEW General Instrument Corporation (GI), for more than 50 years, has been among the leaders in the application of modem technology to entertainment, industrial, military, data, and communications electronics. In 1960, GI entered the transistor business with the acquisition of General Transistor Corporation, founded by Herman Fialkov. Mr. Fialkov, who became head of GI's semiconductor division in the United States, was intrigued at the time by the potential of MOS technology. With the recruitment of Frank Wanlass, a key member of the MOS development team at Fairchild, and a team of designers, GI was able to begin a push in MOS development. The advent of the digital cable converter in the 1970s convinced GI that it could gain leverage not only through cable product sales but through all communications equipment sales by applying its semiconductor expertise. During this time, the Company was transformed from a components manufacturer to a communications company. GI's early success in Europe emphasized the consumer end-user market segment, starting with the emerging calculator business. In the early 1970s, GI shifted its emphasis to the emerging strong, feature-oriented European television receiver market. By 1975, the Company had its ICs designed into almost every European television set. These circuits were all specified, designed, and produced at the GI facility in Glenrothes, Scotland. Later, the first game chip was designed at this facility, together with a range of telecommunications circuits. In November 1980, Racal, in the United Kingdom, and GI signed an agreement in which both companies would cooperate on process and product development of silicon gate CMOS devices. In December 1981, Plessey Semiconductors and GI signed a second-sourcing agreement whereby Plessey would second-source GI's PLC family of single-chip microcomputers and provide a new bipolar integrated data slicer circuit. In October 1982, GI opened a major new facility at Glenrothes, Scotland, which greatly expanded its existing operation. The new plant is dedicated to silicon gate production in NMOS, CMOS, and nonvolatile memory processes. Announced concurrently with the opening of the new facility were three new products to extend GI's EEPROM range. In February 1983, GI introduced the first commercial IC combining elements of speech recognition and speech synthesis on the same chip. This chip was the result of a joint development between GI and Milton Bradley (a U.S. manufacturer of low-cost electronics products). Also in February 1983, GI announced a voice-synthesis module. The module, containing a single-chip NMOS IC, is able to synthesize any phrase in the English language.

In April 1983, Texas Instruments and GI signed a second-sourcing agreement whereby GI would second-source Texas Instruments* TMS 7000 family of NMOS and CMOS 8-bit, single-chip microcomputers. In November 1984, this agreement was extended to include the TMS 70120 single-chip microcomputer. Having sustained considerable losses in 1985, GI shut down its Glenrothes plant in Scotland. The Company also discontinued or consolidated a number of (q>erations in the United States, including the movement of all electronics (^>erations from Hicksville, New York, to GI's Chandler, Arizona, facility. In 1986, in an attempt to revamp the Company's microelectronics division and to break into the military market, GI recruited five key managers from other semiconductor companies. In September 1986, General Instrument acquired the Cable/Home Communications Division of M/A-COM Inc., a manufacturer of coaxial cable and encryption/decryption equipment. This acquisition was reportedly made for $220,000 in cash plus assumed liabilities of $32,858. In January 1988, General Instrument announced that it would split its semiconductor operation into two parts. The Power Semiconductor Division would remain under the control of General Instrument, and the microelectronics (^>eration would trade as an independent company under the name of Microchip Technology Inc. In February 1988, Microchip Technology announced that it had filed papers with the Security and Exchange Commission so that it could bring out an offer for 2.3 million shares, eiq^ecting to raise some $27.6 million from the offer. General Instrument would contribute $10 million toward the new organization, becoming a minority shareholder. As shown in Table 1, Dataquest estimates that CI's European revenue was $40 million in 1987. Table 2 shows the key financial figures, and Table 3 shows a breakdown of revenue by geographic area.

Table 1 General Instrument Corpwation Estimated £ur(^>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1984 1985 IfiM 1987

Total Semiconductor $50 $42 $37 $40 Total Integrated Circuit $28 $21 $12 $13 Bipolar Digital 0 0 0 0 MOS 24 17 10 11 Linear 4 4 2 2 Total Discrete $13 $12 $15 $16 Transistor 0 0 0 0 Diode 13 12 15 16 Thyristor 0 0 0 0 Other 0 0 0 0 Total Optoelectronic $ 9 $ 9 $10 $11

Source: Dataguest November 1988

Table 2 General Instrument Key Financial Inf(Hinati

1984 1985 1986 ISfil 1988

Revenue $680.8 $728.0 $612.4 $787.8 $1,155.5* Profit (before taxes) $ 76.5 $ 15.7 ($ 31.7) $ 29.7 $ 107.9

Research and Development $ 27.5 $ 29.3 $ 22.8 $ 27.6 $ 37.5

Note: Year Ending February 29. *First-quarter 1988 revenue reached $312.9 million compared with $280.1 million in the first quarter of 1987. Source: General Instrument Corporation 1988 Annual Report

Table 3 General Instrument Revenue by Geograi^c Area (In Millions of U.S. Dollars)

1984 1985 1986 1987 1988

United States N/A $610.8 $495.5 $660.0 $1,031.0 Western Europe M/A $ 51.4 $ 56.7 $ 79.3 $ 73.8 Far East N/A $ 20.6 $ 11.8 $ 17.0 $ 23.0 Other N/A $ 45.2 $ 48.4 $ 31.5 $ 27.7

N/A = Not Available

Source: General Instrument Corporation 1988 Annual Report

Products and Markets Served GI is the world's leading producer of low-current, iq)-to-30-ampere rectifiers, and is a major manufacturer of cable TV products, off-track and on-track wagering systems, and apparatus for defense applications. The Company also has interests in high-volume application-specific products for lamp dimming, home control, and entertainment. One of GI's traditional strengths lies in nonvolatile memory and speech synthesis. The Company's speech chip product lines comprise a range of processors with enough on-board ROM for up to 20 seconds of natural speech; a range of speech ROMs of 16K, 32K, and 128K density; a range of speec^l interface circuits; and a complete speech synthesis module containing a 32-word vocabulary. Recently, GI also has become strong in the field of DSPs, and 1986 saw the introduction of a 2-micron CMOS DSP. GI's main products in the nonvolatile memory field are 16K, 32K, and 64K ROMs and IK, 4K, 8K, and 16K EEPROMs. GI also has a 4K NVRAM—a chip that has both static RAM and EEPROM on the same substrate. A 1Mb ROM was planned for volume introduction in 1985, having been announced in 1984, but GI decided to deemphasize the ROM line and is presently not producing ROMs greater than 2S6K. The GI CMOS range was extended in 1985 and early 1986. In late 1985, GI announced a 256K CMOS UV EPROM, the first in a family of CMOS EPROMs soon to be made available. In early 1986, GI introduced both the 64K CMOS EEPROM and a 2-micron CMOS DSP device that is a licensed second-source from Texas Instruments TMS320 Services.

OUTLOOK General Instrument is concentrating its resources in two principal areas: communications systems and components. In the 1987 fiscal year, GI made provisions for discontinuing businesses in the areas of semiconductors and venture investment. In the semiconductor area, the Company discontinued its microelectronics and optoelectronics (^>eration5. It eliminated the semiconductor segment and consolidated the Power Semiconductor Division into the components segment. In Europe, Dataquest expects General Instrument to continue to enjoy success in targetable areas of expertise. In the United States, cable q?erations have standardized on the GI videocypher chip set. Recently, GT Europe announced its success in signing i^ Europe's first direct-broadcast syndicate (BSB) as a customer for a modified conditioning access system.

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BACKGROUND AND OVERVIEW Harris Corporation is the successor of a 1967 merger between Harris-Inter type Corporation, a leading manufacturer of printing equipment, and Radiation Inc., an electronics company engaged in the design, development, and manufacture of advanced communications and information-processing equipment and systems. In February 1980, Farinon Corporation, a producer of microwave transmission and telephone equipment, merged with Harris Corporation. In April 1983, Harris sold its Printing Equipment Sector and became a 100 percent electronics company. In July 1983, Harris Corporation and Lanier Business Products, Inc., agreed in principle to the merger of Lanier into Harris on a pooling-of-interest basis. Lanier produces and distributes office automation products.

Harris Corporation designs, produces, and markets communications and information-processing equipment, systems, and components. The Company's products are used in voice and video communications, data processing, data communications, and graphics communications systems. Immediately following the merger of Radiation and Harris-Intertype, Harris Semiconductor became a division of the new Company. In 1977, it became a group, and in April 1982, Harris Semiconductor reached sector status within the Harris Corporation (the other four sectors being Communications, Information Systems, Lanier Business Products, and Government Systems). Organizationally, Harris Semiconductor is composed of four divisions and a joint venture in Europe (Matra-Harris). (See Figure 1 for details.) Harris Corporation's executive offices and semiconductor fabrication facilities are located in Melbourne, Florida, in the United States. Harris Semiconductor operates a large assembly plant in Kuala Lumpur, Malaysia. The Company has plans for another offshore assembly facility to supplement existing domestic assembly capability. In September 1979, Harris and Matra, the French state-controlled arms and electronics group, formed a European joint venture known as Matra-Harris. This venture was formed to manufacture semiconductor devices for the European markets, particularly the French. In 1985, Harris and Analogic announced a linear IC pact in which Analogic is second-sourcing new Harris products, and there is a joint development of new hybrid products. In early 1986, Harris and Matra-Harris began a new sales strategy. Their European sales force and distributor network was separated to permit both companies direct and independent access to European customers. Also in early 1986, Harris closed its Scottish factory in Irvine, Strathclyde, and sold it to a U.S. company. Harris and 3M (the U.S. industrial and consumer products group), formed a joint-venture company called Harris/3M in 1986. Harris/3M is a worldwide supplier of copying and facsimile products.

Figure 1 Harris Corporation Company Organization Chart

Harris Corporation

Sectors

Information Lanier Business Government Commiin I cations Semloonduotor Sector Systems Sector Products Systems Sector Sector Sector

Divisions

Custom ICs Analog Digital Microwave M a tra-Harris Division Division Devision Division

Marketing Sales Administration Finances

0001432-1 Source: Harris Corporation

The Company had traditionally been heavily reliant on U.S. government defense business. It was in 1986 that Harris faced up to the fact that business was declining (due to defense budget cuts) and the fact that if the Company were to survive, it needed to rid itself of complacency. So restructuring began in earnest. The CMOS bipolar memory business and the fledgling cellular radio operations were shut down; materials and components were sourced overseas, and jobs were reduced. By the end of 1987, most of the restructuring was finished. The Company hoped that 1988 would be a year of consolidation—improvements in every sector, earnings growth, positive cash flow, and strengthening of the management team.

In 1987, Harris successfully subdued a takeover bid by Plessey of the United Kingdom. This episode served to reinforce the Company's restructuring plans, which were aiming to replace complacency with a sense of urgency. Harris knows that if it wants to stay independent, it has to break out of the U.S. defense department dependability and become more competitive.

Table 1 shows Dataquest's estimates of Harris' European revenue. Table 1 Harris Corporation Estimated European Semiconductor Group Revenue by Product Line (Millions of U.S. Dollars)

1983 1984 1985 1986 1987

Total Semiconductor $28 $40 $31 $38 $40

Total Integrated Circuit $28 $40 $31 $38 $40

Bipolar Digital 14 20 19 0 0 MOS 10 14 7 14 14 Linear 4 6 5 24 26

Total Discrete 0 0 0 0 0 Transistor 0 0 0 0 0 Diode 0 0 0 0 0 Other 0 0 0 0 0 Total Optoelectronic b 0 0 9 0 Source: Dataquest November 1988

PRODUCTS AND MARKETS SERVED Although the U.S. defense business remains Harris's main revenue earner (approximately 40 percent of sales), the Company plans to move to nondefense-related government sectors. For example, Harris was awarded a contract for a mobile communications system for the Federal Emergency Management Agency. The Company hopes to win contracts from the U.S. Army, the Federal Aviation Administration, and NASA. Harris is also expanding its commercial client base.

In 1988, Harris expanded its activities in the United Kingdom with the establishment of an affiliated assembly operation. The new plant, owned by MTL Microtechnology, a subsidiary of Cambridge Electronic Industries, is part of a concerted drive to develop Harris' sales throughout Western Europe. It produces specialized high-powered microprocessors mainly for the U.K. military market, an area where Harris sees scope for expansion. Harris also gained the top level of U.K. standards approval for its 80C86 CMOS processor family, making it the first choice for many applications. The Company now plans to seek approval for a wide range of devices.

OUTLOOK Harris is optimistic about the future. The Company plans a more determined push into Western Europe, while looking for other opportunities to expand. The main reason for this strategy is the cutbacks in U.S. military spending, which are driving Harris to cut its dependence on 85 percent of sales from the United States to about 65 percent by 1990. The Company hopes to get 25 percent of semiconductor sales from Europe. At the time of this printing, it had just been announced that Harris had bought the semiconductor operations of General Electric (GE) for an undisclosed amount. The purchase includes the RCA semiconductor operation that GE bought two years ago. Further details of this merger and its implications will be published in a newsletter.

Hewlett-Packard Company 3000 Hanover Street Palo Alto, California 94303 Telephone: (415) 857-1501 Fax: (415) 857-5518 Dun's Number: Not available Date Founded: January 1, 1939

CORPORATE STRATEGIC DIRECTION formed as a result of the reorganization: the Com puter Systems Organization, the Computer Products Hewlett-Packard Company (HP) is engaged world Organization, and the Test and Measurement Organization. wide in the design, manufacture, and servicing of a broad array of precision electronic instruments and systems for measurement, analysis, and computation. The reorganization aligned businesses that bad tradi HP offers integrated systems solutions to specific tionally operated separately in HP's structure, but had customer problems. Founded in 1939 by Bill Hewlett been converging in form and function in recent years. and Dave Packard, HP employs 92,000 people world The Computer Systems Organization unites HP's wide and had revenue of $13.2 billion* during 1990. workstation and multiuser systems businesses, the Computer Products Organization combines the com pany's PCs and peripherals businesses, and the Test The $13.2 biUion revenue in fiscal 1990 represented and Measurement Organization combines the activi an increase of 11.2 percent over 1989's total revenue ties of the company's Electronic Instruments and of $11.9 billioiL Net income decreased 10.9 percent Microwave and Communications groups. to $739 million in fiscal 1990, down from a 1989 record net income of $829 million. A large factor in Although HP's structure has been recently reor this decrease in net income deals was the increasing ganized, the company continues to financially divide proportion of HP's sales to volume purchasers such as operations into six business segments, all of which dealers and OEMs, who receive discounts on the HP are engaged in the design and manufacture of preci products they purchase. These discounts reduce earn sion electronic equipment for measurement, analysis, ings by driving up HP's cost of selling its products. and computation. The six business segments are Measurement, Design, Information, and Manufactur ing Equipment and Systems; Peripherals and Network Domestic sales totaled $6.0 billion, $5.6 billion, and Products; Service for Equipment, Systems, and $4.8 billion, respectively, during fiscal years 1990, Peripherals; Medical Electronic Equipment and 1989, and 1988. International sales reached $7.2 bil Service; Analytical Instrumentation and Service; and lion, $6.3 billion, and $5.1 billion in fiscal years Electronic Components. The Measurement segment 1990, 1989, and 1988, representing 54.5, 53.3, and continued to be the largest source of income in fiscal 51.6 percent of total revenue, respectively. The 1990 for the conq)any, with $5 billion in revenue, majority of international orders were from the com or 36.9 percent of total revenue. The Service for mercial sector, primarily in Europe. The percentage of Equipment, Systems, and Peripherals segment total respective international revenue derived fixjm showed the highest rate of increase in 1990, increas Europe during fiscal years 1990, 1989, and 1988 was ing 21.3 percent to $2.6 billion. 66.1, 65.2, and 65.2 percent HP has more than 480 sales and service offices in In October 1990, HP began to implement a major approximately 150 cities throughout the United States reorganization in its management structure to reduce and in 107 countries worldwide. Approximately operating expenses and facilitate the management of 31 percent of the sales and service offices are located research and development, manufacturing, and mar in die United States. In areas where HP has no sales keting activities. Three new organizations were or service offices, it markets through more than ISO distributorships located in more than *A11 dollar amounts are in U.S. dollars. 60 countries.

HP markets approximately 70 percent of its pro Research and development expenses totaled $1.4 bil- ducts directly through its own sales organizatiorL Uon in 1990, representing 10.3 percent of total reve Marketing operations are supported by approximately nue. Capital expenses reached an all-time high in 30,000 individuals, including field service engineers, 1990 of $955 million, representing 7.2 percent of service personnel, and administrative support staff. total income. The R&D and capital expense totals for The remaining revenue is obtained through value- 1989 were $1.3 bUlion and $857 miUion, respectively, added resale channels including dealers and OEMs. representing 10.7 and 7.2 percent of total revenue.

HP currendy offers more than 10,000 products, which More detailed information is available in Tables 1 range from scientific measuring instruments to hand through 3, which appear after "Business Segment held calculators. HP's traditional key areas of strength Strategic Direction" and present corporate highlights have been test and measurement equipment and and revenue by region and distribution channel. minicomputers. The company recenfly successfully Tables 4 through 6 at the end of this backgrounder established itself in the UNIX workstation market present comprehensive financial information. HP possesses the key ingredients to be a major force in computer-integrated manufacturing (CIM), with its high-performance instruments, peripherals products, UNIX platforms, and networking products. Local R&D has allowed HP to quickly adapt its products to BUSINESS SEGMENT STRATEGIC suit local European markets. DIRECTION

According to Dataquest estimates, HP ranked first in In 1990, HP announced HP NewWave Computing, a the 1990 worldwide traditional workstation market strategy to link a variety of computers in a network so for 1990 with a 24.98 percent market share and they operate as one. The company has based this $709.3 million in factory revenue. Dataquest also approach on open systems and advanced software estimates that HP was the market leader in the medi technology, enabling users to build on computing cal workstation and superworkstation worldwide mar resources currently in their possessioiL Other major kets in 1990. announcements in 1990 included the HP 9000 Model 1240, the company's entrant in the emerging fault-tolerant UNIX-based computer market; the HP Technical Computers LaserJet HI printer, and the HP 400 Series woric- station, the company's first workstation developed The HP 9000 series includes desktop-size worksta from the combination of HP and recently acquired tions and midtiuser systems originally intended to be Apollo Computer Inc. used by scientists and engineers. Iff* offers a wide range of workstation products, with applications including the commercial client-server marketplace, In November 1989, HP introduced HP NewWave electronic publishing, computer-aided design (CAD), Office, an integrated office system enabling users to computer-aided manufacturing (CAM), computer- share data and information, even with computers and aided software engineering (CASE), and other software from different vendors. More than 100 soft advanced graphics markets. ware developers and resellers are supporting HP NewWave Office with a full range of word process ing, spreadsheet, database, graphics, communications, In May 1991, HP introduced three new models in the and multimedia applications as well as vertical mar HP ApoUo 9000 Series 400 workstation family: die ket solutions. 425e, 425t, and 425s models. The Series 400 models run the HP-UX and Domain/OS operating systems and are compatible with HP's Motorola-based work With the HP NewWave line, HP has unveiled its station family. The 425e is powered by Motorola's office-systems strategy for the 1990s: to deliver a 25-MHz MC68040 processor, performs at 22.1 mips complete office system that combines industry stan and 2.6 mflops, and offers a 2-D, frame-buffer graph dards with emerging technologies, allowing cus ics system that is tuned for X ^^^dow System perfor tomers to quickly and easily receive the infonnation mance at 2,017 operations per second (ops). The 425e they need. A major part of the strategy is to integrate has an internal storage capacity of 840MB, a total existing applications and systems frxim multiple ven disk capacity of 9.11GB, and storage options consist dors to protect customers' computing investments. ing of an integrated, DOS-compatible 3.5-inch

floppy drive or an internal CD-ROM drive. The 425e computer philosophy for customers with a multiven- is designed for use in commercial or desktop pubUsh- dor or multiarchitecture environment ing, CASE, and entry-level CAD markets. HP unveiled eight new multiuser HP 3000 systems in The 425t and 425s models are more advanced models January 1990: 980/100, 980/200, 949, 922LX, than the 425e, offering increased X Window perfor 922RX, 922, 932, and the MICRO 3000RX. The mance at 3,100 ops. The 425t is a desktop model Series 980/100 and 980/200 are the first to use based on the 25-MHz MC68040 microprocessor, advanced complementary metal-oxide semiconductor while the 425s is a desk-side system with increased (CMOS) technology on a single VLSI chip. The 980/ expansion and performance capabilities. The 425s 100 operates between 60 and 70 transactions per comes with four extended industry standard architec second (^s); and the 980/200 operates at more than ture (EISA) or three DIO-II expansion slots, and 100 tps. The 922LX, 922RX, 922, and 932 perform at three full-height 5.25-inch storage slots for disks, CD- ROM, or digital audio tapes (DATs). Internal disk 7.7 tps and are designed to support 16 to 240 users in storage options range from 660MB to 3.9GB, with a small to medium-size businesses, departments of maximum disk storage capacity of 27.3GB. The 425t large corporations, or branch offices. The HP MICRO and 425 s models are targeted for mechanical- 3000RX is a complete entry-level business system engineering and electrical-engineering design that can support up to 24 users. It is fully compatible customers. with the HP 3000 product line and includes a system disk, tape cartridge, console, 16 terminal ports, oper ating system, database, and a menu-driven interface. Other members of the HP Apollo 9000 family include the 300, 700, and 800 Series. The 300 Series mcludes HP's most basic workstation models. Introduced in The company recendy aimoimced 10 new models for March 1991, the 700 Series revolutionized perfor the HP 3(X)0 line, which should be available in mance levels in the workstation market with system October 1991. These new models in the 900 Series performance exceeding 76 mips, the fastest on the are powered by the same Precision Architecture-RISC market. The 700 Series is available in both desktop (PA-RISC) chips used in the 700 Series, making HP and desk-side models. The 800 Series of super an industry leader in offering compatible RISC-based minicomputers is oriented toward technical and real products from the desktop level to enterprisewide time computing in the manufacturing sector and data center systems. toward general-purpose UNIX computing in the government and commercial markets. These com puters are based on HP Precision Architecture (HP- Personal Computers PA) reduced-instruction-set computiag (RISC) tech nology, allowing users access to more than Since its entry into the PC business, HP has been a 3,500 RISC appUcations and tools from more than high-end PC vendor aiming at the business market 220 independent software vendors. The company's Vectra product line has met with considerable success since its introduction in 1986. In April 1989, HP acquired Apollo for $500 millioa The Vectra line consists of computers based on Intel's The acquisition gave HP an installed base of about 80286, 80386, and 80486 microprocessors. Dataquest 84,000 Apollo machines at almost 3,000 sites and estimates that HP ranked 11th in the worldwide PC another proprietary RISC architecture. market in calendar year 1990, with a market share of 1.77 percent and factory revenue of $884.6 million.

Business Computers The HP Vectra 486 personal computer is the highest- The HP 3000 series of supermimcomputer systems performiog member of the HP Vectra family. It is a spans a broad performance range and is designed for floor-standing unit based on the Intel i486 business data processing appUcations. Introduced in microprocessor. It uses the EISA, and the design 1970, the 3000 Series is suited for on-line transaction optimizes performance for high-end personal comput processing (OLTP) and distributed processing and is ing (for example PC CAD multiuser, LAN serve) and compatible throughout the product line. The HP 3000 provides the speed for high-powered single-user family shares the MPE operating system and uses applications. The 486 supports up to 64MB of RAM HP's Precision Architecture in the higher-end sys on a single memory board, 1.3GB of mass storage, tems. All HP 3000 computers use an open network and a video graphics adapter. It comes standard with

2MB of RAM; one 5.25-inch, 1.2MB flexible disk the HP NewWave 3.0, a software applications drive; two serial (RS-232-C) ports; one parallel (Cen environment that runs on any industry-compatible tronics) port; connections for four flexible disks and MS-DOS PC with an Intel 80286 or 80386 tow-embedded hard disks; keyboard (Mini-DIN) and microprocessor. The HP NewWave 3.0 utilizes the mouse (Mini-DIN) ports; HP disk-cache software; enhancements made by Microsoft to Windows, and memory management software. It also offers an including improvements to memory management and array of hard disk drives, memory, and video the user interface. From this, HP NewWave 3.0 products. requires only 2MB of extended memory to run several applications. More than 100 independent soft Dataquest estimates that the Vectra 486 PC was the ware vendors, including Micrografx Inc. and third-ranked 80486 model in 1990, with $113.7 mil Microsoft Corporation, have committed resources to lion in factory revenue and a 4.76 percent market develop future HP NewWave applications. FutureSoft share. HP ranked third overall in the worldwide Engineering Inc., Lotus Development Corporation, 80486 computer market, based on $146.7 million in New Media Graphics Corporation, and VideoLogic factory revenue and a 6.14 percent market share. have all begun shipping NewWave. HP also has licensing agreements for HP NewWave with AT&T In April 1991, HP released the much-heralded HP Computer Systems Inc., Canon Inc., Data General 95LX palmtop PC, the first hand-held computer to Corporation, and NCR Corporation. combine PC power with the capabUities of Lotus 1-2-3 in a device the size of a business calculator. The Uoz 95LX is designed to work as a companion In January 1991, HP announced that its SoflBench to desktop and laptop PCs, and will run MS-DOS and Encapsulator products, which had previously 3.22 in addition to Lotus 1-2-3 Release 2.2. Accord only been offered for HP/Apollo workstations, would ing to Dataquest estunates, the 95LX will propel HP be compatible with Sun's SPARCstation computers. into the leading position in 1991 in terms of units SoftBench is a software-development product for shipped in the notebook market CASE that coordinates and controls the separate soft ware programs that engineers use to design, build, Supercomputers and Visualization Systems and test software products. Encapsidator allows the customization of SoftBench through the addition of Through its Apollo Systems Division, HP offers the CASE tools of the user's choice. The move by HP Apollo Series 10000 personal supercomputers and further demonstrates the company's commitment to visualization systems designed for graphic-intensive open systems environments. applications. Both systems incorporate multiprocess ing capabilities, parallel-instruction dispatch and extension, advanced-compiler technology, a RISC- HP released several new software products in the first based instruction set, and the capability to be con half of 1991. In May, the company released HP figured with the IBM Token-Ring network or Ether SharedX, a distributed-computing software product net as native networks. During 1990, the major com that allows geographically separated work groups to ponents of the Series 10000 received the following view and modify information simultaneously on their upgrades: a new PRISM CPU that doubles computer UNIX-based workstations and X terminals. The pro power from 22 mips to 44 mips (12 mflops) per gram is a breakthrough in real-time computing and processor, parallelizing and vectorizing compilers that can be used immediately by current X '^ndow Sys increase system performance two to four times; a specialized software-development environment for tem users with no modification to their existing sys parallel programs and an interactive scientific- tems. In June, the company released HP Open'^ew software computation and visualization environment; Interconnect Manager, a network-management pro main memory capacity expanded fourfold, disk gram that greatly reduces mapping time on networks. capacity improved by a factor of six, and local area network (LAN) bandwidth increased by a factor of 10. Peripherals HP's peripherals products include video display ter Software minals, magnetic disk and tape drives, plotters, and Although HP offers a selection of software for busi laser printers. HP's laser printers were first introduced ness and technical applications, a vital part of its in 1975. Technology exchanges and license agree Cooperative Computing Enviromnent is the New ments with Canon led to HP's 2680 laser printer Wave environment, which has continued to gain series, which includes the 2689, an IBM-compatible widespread acceptance. In May 1990, HP introduced version.

HP expanded its printer product line in March 1991 as a single, integrated system, regardless of location, with the release of the high-end HP LaserJet nisi vendor, or operating system. These networks will printer. Designed for the business environment, the manage the simultaneous transmission of voices, data, LaserJet nisi prints 17 pages per minute (ppm) and and video. The restilting distributed system can inte uses Resolution Enhancement technology ^id HP's grate diverse applications, environments, and com PCL 5 printer language. Options include a network- puters, and will allow more effective processing of printer interface card for direct connection to a LAN, information. a two-sided printing mechanism, and a power enve lope feeder that holds up to 100 envelopes. Semiconductors According to Dataquest, HP led the North American 1- to 10-ppm PNPP printer market with a 53.5 per According to Dataquest HP ranked 21st in the 1990 cent market share in 1990, based on $1.96 billion in North American total semiconductor market, with a factory revenue. market share of 1 percent HP is the market leader in the North American optoelectronic semiconductor market, holding a 40 percent market share in 1990 HP has also been a market leader in the X \^ndow System graphics terminals market HP released the with $132 nuUion in factory revenue. HP 700/X family of X Window graphics terminals in 1989, and the family has continued to gain market HP manufactures a number of dedicated integrated share. The 700/X family consists of a comprehensive circuits (ICs) for internal consumption only. These are set of color and monochrome network-based graphics supported by a wide range of optoelectronic devices terminals based on the industry-standard X Window (both components and modides) that are generally System from the Massachusetts Instimte of Technol available on the merchant market together with ogy (MIT). The terminals are designed to operate in several specialized diode and transistor products. multivendor networked environments and provide the equivalent graphics and LAN performance of an entry-level workstation configured as an X server. Computer Storage

Dataquest estimates that HP ranked third in the 1990 HP's storage devices family includes 5.25-inch hard- worldwide X Window terminal market with a disk storage systems for entry-level through high-end 12.4 percent market share and $22.3 million in fac computer systems; digital data storage (DDS) format tory revenue. HP was the market leader in the 1990 tape drives for HP computer systems; and a famUy of worldwide Color X Window market, garnering mass-storage systems that combine a high-capacity 20.3 percent of the inarket with $17.0 milUon in hard-disk mechanism with a choice of two additional factory revenue. drives (DAT drive, CD-ROM drive, rewritable-optical disk drive, and/or additional hard-disk drives). HP also provides monitors for workstations, where Dataquest estimates that HP ranked second in the Dataquest estimates that HP ranked eighth in the 1990 worldwide workstation monitor market, with worldwide 5.25-inch rigid disk drive market in 1990, $175.5 million in revenue and a 22.2 percent maiket share. with a 1.7 percent market share. HP also ranked second in the worldwide 1/2-inch reel-to-reel tape drive market with 14.9 percent of the market Telecommunication HP's vision of future information technology is called Further Information the Cooperative Computing Environment Its goal is to develop integrated networks of both general- For further information about the biisiness segments, purpose and specialized computers working together please contact the appropriate industry service.

Table 1 Five-Year Corporate Highlights (MiUions of U.S. Dollars)

1986 1987 1988 1989 1990 Five-Year Revenue 7,102 8,090 9,831 11,899 13,233 Percent Change 9.18 13.91 21.52 21.04 11.21

Capital Expenditure 497 510 648 857 955 Percent of Revenue 7.00 6.30 6.59 7.20 7.22

R&D Expenditure 824 901 1,056 1,269 1,367 Percent of Revenue 11.60 11.14 10.74 10.66 10.33

Number of Employees 82,000 82,000 87,000 95,000 92,000 Revenue ($K)/Employee 86.61 98.66 113.00 125.25 143.84

Net Income 516 644 816 829 739 Percent Change 5.52 24.81 26.71 1.59 (10.86)

1990 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue 3,103 3,308 3,242 3,580 Quarterly Profit 173 186 178 202

Sonice: Hewlett-Padcaid Company Anaual Reports Dataquest (October 1991) Table 2 Revenue by Geographic Region (Percent)

Region 1986 1987 1988 1989 1990 North America 54.00 51.00 48.00 46.73 45.53 International 31.00 33.00 34.00 34.72 36.00 AU Others 15.00 16.00 18.00 18.55 18.47

Source: Hewlett-Packaid Company Annual Reports Dataquest (October 1991)

Table 3 Revenue by Distribution Channel (Percent)

Channel 1987* 1988* 1989 Direct Sales 58 60 60 Indirect Sales 42 40 40 Distributors 1 1 NA Dealers 1 1 NA OEMs 40 38 NA

*Conq>uter systems only Source: Hewlett-Packard Company NA = Not available Annual Reports Dataquest (October 1991)

San Jose, CaUfomia Microwave, opto, diode, transistors 1990/1991 SALES OFFICE LOCATIONS* Santa Qara, CaUfomia Electronic instruments, ASICs North America- -129 Santa Rosa, CaUfomia Eiffope—111 Microwave test equipment, opto, diode, transistors Japan—^28 Spokane, Washington ROW—191 Test equipment •Includes service offices Sunnyvale, CaUfomia Computer-integrated manufacturing systems, workstation systems integration, PCs, workstations Waltham, Massachusetts Medical equipment MANUFACTURING LOCATIONS Waterloo, Canada X terminals, industrial terminals North America Vancouver, Washington Printers AguadiUa, Puerto Rico Terminals Andover, Massachusetts Europe Medical equipment Avondale, Pennsylvania Barcelona, Spain Analytical instruments Printers, drives Boise, Idaho Bergamo, Italy Disk drives, printers Network products Chelmsford, Massachusetts Boeblingen, Germany Workstations Workstations, midrange computers, analytical Colorado Springs, Colorado instruments, medical instruments Electronic test instruments, telecom test equipment Bristol, England CorvaUis, Oregon Disk drives Calculators, hand-held computers, ASICs Grenoble, France Cupertino, California Networking products, personal computers Minicomputers Lyon, France Everett, Washington Midrange computers Electronic instruments Pineswood, England Exeter, New Hampshire Software Workstation components South Queensfeny, Scotland Fort CoUins, Colorado Telecom test equipment, microwave test equipment Workstations, network controllers, ASICs, RISC \^efontaine, France Processors A-series and various industrial automation and Greeley, Colorado medical products, networks, telecom Printers, tape drives Waldbronn, Germany Loveland, Colorado Analytical instruments Logic design systems, high-frequency linear digital oscilloscopes Japan McMinnviile, Oregon Medical equipment Hachioji, Japan Palo Alto, California Test equipment Test equipment Kobe, Japan Rockaway, New Jersey Test equijonent Test equipment Rohnert Park, California ROW Test equipment Roseville, California Bangalore, India Network products, personal computers Distribution San Diego, California Guadalajara, Mexico Plotters PCs, multiuser systems

Penang, Malaysia Hewlett-Packard Benelux B.V. (Netherlands) Semiconductor devices Hewlett-Packard DDR (Germany) Singapore Hewlett-Packard Equipment Leasing Ltd. (Great Software networks, printers, graphics imaging Britain) components, calculators, keyboards, terminals, Hewlett-Packard Espanola S.A. (Spain) optoelectronic LED components Hewlett-Packard Finance Ltd. (Great Britain) Seoul, South Korea Hewlett-Packard France (France) Hewlett-Packard Instruments, peripherals, distribution GmbH (Germany) Taipei, Taiwan Hewlett-Packard International Sales Corporation B.V. Asian language PC products (Netherlands) Aguadilla, Puerto Rico Hewlett-Packard Ireland Ltd. (Ireland) Printed circuit devices Hewlett-Packard Italiana S.p.A. (Italy) Hewlett-Packard Leasing Ltd. (Great Britain) Hewlett-Packard Ltd. (Great Britain) Hewlett-Packard Nederland B.V. (Netherlands) Hewlett-Packard Norge A/S (Norway) SUBSIDIARIES Hewlett-Packard OY (Finland) Hewlett-Packard Product Leasing Ltd. (Great Britain) Hewlett-Packard S.A. (Switzerland) North America Hewlett-Packard (Schweiz) A.G. Hewlett-Packard Singapore (PTE) Ltd. (Singapore) ApoUo Computer Inc. (United States) Hewlett-Packard Sverige A.B. (Sweden) Apollo World Trade Inc. (United States) Hewlett-Packard Technical B.V. (Netherlands) Applied Optoelectronic Technology Corp. (United Hewlett-Packard Trading S.A. (Switzerland) States) IDACOM Electronics (Germany) EON Systems Inc. (United States) Fleet Systems Inc. (United States) Hewlett-Packard Atlantic Inc. (United States) Japan Hewlett-Packard (Canada) Ltd. (Canada) Hewlett-Packard Delaware Inc. (United States) Yogokawa Hewlett-Packard Design Systems Hewlett-Packard Delaware Funding Inc. (United Laboratory Ltd. (Japan) States) Yokogawa Hewlett-Packard Ltd. (Japan) Hewlett-Packard Delaware Holding Inc. (United States) Hewlett-Packard Delaware Investment Inc. (United ROW States) Applied Optoelectronic Technology (Asia) PTE Ltd. Hewlett-Packard European Distribution Operations (Singapore) Netherlands Inc. (United States) Applied Optoelectronic Technology Taiwan Ltd. Hewlett-Packard Finance Company (United States) (Taiwan) Hewlett-Packard Hellas Inc. (United States) Arrendadora Hewlett-Packard S.A. de C.V. (Mexico) Hewlett-Packard Inter-Americas Corp. (United China Hewlett-Packard Company Ltd. (China) States) China Hewlett-Packard (Shenzhen) Company Ltd. Hewlett-Packard Laboratories Japan Inc. (United (China) States) E.I. Industria e Cuercio S.A. (Brazil) Hewlett-Packard Pipeline Co. (United States) Grupo Hewlett-Packard S.A. de C.V. (Mexico) Hewlett-Packard Puerto Rico (United States) Hewlett-Packard Argentina S.A. (Argentina) Hewlett-Packard World Trade Inc. (United States) Hewlett-Packard Asia Pacific Limited (Hong Kong) IDACOM Electronics Inc. (United States) Hewlett-Packard Australia Finance Ltd. (Australia) The Tall Tree Insurance Company (United States) Hewlett-Packard Australia Ltd. (Australia) Hewlett-Packard Bilgisayar Ve Oleum Sistemleri Europe Anonim Sirketi (Turkey) Hewlett-Packard de Venezuela C.A. (Venezuela) Geneva Investments N.V. (Netherlands Antilles) Hewlett-Packard do Brasil S.A. (Brazil) Hewlett-Packard A/S (Denmark) Hewlett-Packard Far East Pte. Ltd. (Singapore) Hewlett-Packard (Austria) Ges.m.b.H. (Austria) Hewlett-Packard FPG (China) Hewlett-Packard Belgium S.A.N.V. (Belgium) Hewlett-Packard Hong Kong Ltd. (Hong Kong) i ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011509 Hewlett-Packard Company

Hewlett-Packard (India) Private Ltd. (India) Informix Software Inc. Hewlett-Packard (India) Software Operation Private HP and Informix signed a five-year joint agree Ltd. (India) ment to develop, market, and sell faster versions of Hewlett-Packard Investment Ltd. (Liberia) HP hardware and Informix software primarily for Hewlett-Packard (Malaysia) SDN.BHD. (Malaysia) OLTP and CASE. Hewlett-Packard Malaysia Technology, Sdn. Bhd. (Malaysia) Ithaca Software Hewlett-Packard (N.Z.) Ltd. (New Zealand) HP and Ithaca Software agreed to a licensing Hewlett-Packard Penang Sdn. Bhd. (Malaysia) arrangement under which Ithaca will incorporate Hewlett-Packard S.A. de C.V. (Mexico) HP Advanced Rendering Technology into its Hewlett-Packard Sales (Malaysia) Sdn. Bhd. HOOPS graphics development system. Hewlett-Packard Singapore (Sales) Pte. Ltd. (Singapore) Lotus Development Corporation Hewlett-Packard Taiwan Ltd. (China) HP and Lotus agreed to a marketing and develop Hewlett-Packard (Thailand) Ltd. (Thailand) ment treaty designed to make Lotus 1T2-3 software Hewlett-Packard USSR (USSR) available on HP workstations. Moriya Pty. Inc. (Australia) Samsung Hewlett-Packard Ltd. (Korea) Mentor Graphics and Serveco Sispar Participacoes Ltda. (Brazil) HP, Mentor Graphics, and Serveco signed an Telecom Hewlett-Packard Pty. Ltd. (Austtalia) agreement to manufacture CAD systems in the Soviet Union for use in electronic equipment design. Serveco, a Soviet-Swiss joint venture, will be the distributor and servicer on the Soviet market Mentor Graphics will provide specialized CAD software and HP's USSR subsidiary (HP USSR) ALLIANCES, JOINT VENTURES, AND will manufacture the hardware. LICENSING AGREEMENTS Microsoft Corporation 1991 HP and Microsoft signed an agreement authorizing HP to provide worldwide support for Microsoft Computer Associates International Inc. LAN Manager, Microsoft Windows graphical HP and Computer Associates agreed to codevelop environment 3.0, MS-DOS and OS/2 operating systems management, database, and applications systems, and Microsoft SQL Server. software for HP's 9000 Series computers that run the HP/UX UNIX-based operating system. Microtest Inc. HP and Microtest entered into an agreement in Hermes Plus which Microtest will supply its LAN test products HP and Hermes jointly formed the Yugoslavian- to HP, and HP will market them. based Hermes Plus Company, which will market and service HP personal computers and peripherals Mitsubishi Electric Corporation in Yugoslavia. HP and Mitsubishi signed an agreement whereby Mitsubishi will be supplied with a new RISC Hitachi Ltd. workstation that it will market in Japan. HP and Hitachi entered a cooperative agreement to develop expert-systems technology based on an Mitsumi Electric Company enhanced version of Hitachi's ES/Kemel for HP's HP and Mitsumi signed a contract giving HP an Motorola-based 9000 workstations and Precision exclusive supply of 3.5-inch DAT meclianisms Architecture RISC-based computers. from Mitsumi for HP's 2GB and 8GB DAT drives. IBM Corporation Northern Telecom Limited HP and IBM signed a licensing agreement licens HP and Northern Telecom signed an agreement in ing HP's SoftBench integration framework and which the companies will jointiy market centtal Encapsulator software technologies for use in office-based call handling capabilities based on a future CASE solutions targeted to IBM's AIX- link between Northern's DMS-100 central office based RISC System/6000 family of workstations switch and HP's UNIX-based Apphed Computer and servers. ized Telephony.

Panacea Inc. Cognos HP and Panacea signed a nonexclusive licensing HP entered into an agreement with Cognos, estab agreement allowing a version of Panacea's Display lishing Cognos' PowerHouse fourth-generation List Driver (DLD) to be tailored to the HP Intelli language (4GL) software as a growth path for gent Graphics Controllers (IGCs). users of HP's RAPID and ALLBASE tool sets. Sequoia Systems Inc. Emerald Systems Corporation HP extended its OEM and technology-licensing HP signed Emerald Systems to a distribution agreement with Sequoia Systems through 1994. agreement in which Emerald will offer RAMP The new agreement extends HP's exclusive mar backup and restore software for use with the HP keting rights for Sequoia systems to the worldwide Network Mass Storage System. telecommunications market and increases the num Hughes Aircraft Company ber of Sequoia's fault-tolerant systems HP is com HP and Hughes Aircraft Company signed a strate mitted to sell in 1992. gic agreement to develop and manufacture Software AG advanced workstations, personal computers, and other related equipment HP and the Germany-based Software AG made a marketing agreement imder which Software AG's MAI Basic Four Inc. Adabas database management system. Network MAI Basic Four became an HP VAR. Under the networking product, and Natural fourth-generation VAR agreement, MAI Basic Four wiU resell the language will be made available on HP's UNIX computers with MANBASE, its MRP 11 (manufac- platforms. turing/resource/planning) software solution to manufacturers. Sun Microsystems Inc. HP and Sun entered a joint-development agree McDonnell Douglas Systems Integration Co. ment to create a common, next-generation, object- HP and McDonnell Douglas Systems Integration oriented distributed confuting environment called entered into a three-year, $75 million VAR agree Distributed Application Architecture (DAA). The ment that allows McDonnell Douglas to resell move brings together two of the leading operating HP's Motorola and RISC-based HP 9000 family of systems in Sun's Open Network Computing workstations with its Unigraphics software. (ONC) and HP's Network Computing System Mentor Graphics Corporation (NCS). HP and Mentor Graphics announced a multimillion-dollar software-marketing agreement HP and Sun also signed an agreement by which Under the terms of the agreement HP will adapt HP will port its mechanical computer-aided de Mentor Graphics' design and analysis software for sign (MCAD) software to Sun SPARCstation board-test applications and will market it with workstations. future HP board-test products. NCR/Data General/Canon 1990 HP signed an agreement to license the HP NewWave software environment to NCR, Data Actel Corporation General, and Canon. HP and Actel Corporation annoimced that they will cooperate in developing, licensing, and Novell Inc. manufacturing an advanced family of field HP and Novell signed a licensing agreement that programmable gate arrays (FPGAs). Under the will enable HP to offer Novell's Portable NetWare terms of the five-year agreement, HP has immedi network operating system to users of its HP 3000 ate access to Actel's FPGA design software and Model 900 RISC-based minicomputers. will make a 5 percent equity investment in ActeL Numetrix Inc. AT&T Computer Systems HP and Numetrix Inc. signed an agreement in HP signed an agreement to license HP NewWave which Numetrix's Schedulex production schedul software to AT&T Computer Systems. Terms of ing software will be ported to HP 9000 Series 800 the contract were not disclosed. HP-PA computers and HP Vectra personal com puters. HP and Numetrix will market the HP-based Cascade Microtech Inc. Schedulex software solution to process manufac HP purchased a minority equity position in Cas turers in the food, beverage, pulp and paper, chem cade Microtech Inc. and licensed some wafer- ical, pharmaceutical, and consumer packaged probing technology to Cascade. goods industries.

Octet Communications Corporation Blue Star Ltd. HP and Octel Communications Corporation have HP has established Hewlett-Packard India PvL become strategic partners in bringing high- Ltd., a joint-venture company with Blue Star Ltd., performance voice-processing equipment to the sole distributor of HP products in India. HP Europe. will have 40 percent equity in the venture and Blue Star 20 percent The remaining 40 percent will be Penstock Inc. in the form of pubUc shares to be issued in 1990. HP announced that Penstock Inc. has become a distributor of HP RF and microwave components Carlisle Memory Products Group and integrated products in the United States and HP signed a $4.5 million contract that renews and Canada. Under the terms of the agreement. Pen expands a previous agreement to purchase Carlisle stock win focus on selling devices above 1 GHz half-inch tape reels in all worldwide locations. and will stock a broad line of silicon and gallium Compression Labs Inc. (CLI) arsenide (GaAs) beam-lead and chip devices, as Compression Labs Inc. signed an agreement with well as packaged versions of these products. In HP to provide videoconferencing systems for HP's addition. Penstock will have inventory of selected international communications network. The agree HP mechanical switches, programmable step atten- ment, worth more than $2 million, calls for CLI to tuators, and fixed coaxial attentuators. provide 50 videoconferencing systems over a two- Sequoia Systems Inc. year period. HP and Sequoia Systems Inc. announced a strate Decision Data Inc. (DDI) gic relationship that includes a matketing agree HP and Decision Data Inc. established an OEM ment, technology hcensing, and an equity invest agreement in which DDI intends to purchase $20 ment. Under the technology licensing agreement, miUion worth of newly developed HP terminals HP has the right to use most of Sequoia's fault- compatible with IBM System/3X and AS/400 tolerance, muiltiprocessor technology in future HP computers. The new terminals will be resold by systems. The agreement also calls for the cross- Decision Data Computer Corporation, a subsidiary licensing of any improvements to this technology of DDI. The OEM terminals, developed jointly by by either company. HP and DDI, are manufactured at HP's automo- tated facility in RosevUle, California. The termi Visual Information Technologies Inc. (VITec) nals will be sold exclusively to DDI. HP and VITec signed an agreement to develop and market a high-end, image-processing workstation Interphase that runs on the recently introduced HP Apollo HP, through its Apollo Division, extended its OEM 9000 Model 400s. agreement with Inteiphase for another two years at a value of approximately $2.1 million. 1989 Microsoft Corporation The two companies engaged in joint development 3Com Corporation to port the MS LAN Manager OS/2 technology to HP announced a strategic alliance with 3Com, the UNIX system environment. which will license its OS/2-based 3+Open LAN Manager network operating system to HP. HP will NEC Corporation sell the product under the name HP3+Open LAN HP and NEC announced an agreement to develop Manager. comprehensive development tools for several NEC original microprocessors and microcomputers. Aeritalia's Systems and RPVs Group of Italy Under the terms of the agreement, HP will HP, Aeritalia's Systems, and RPVs Group of Italy develop, sell, and support HP 64700 series emula signed a joint agreement to market EMC measure tors for many of NEX's original microprocessors ment systems. and microcontrollers. AGFA Compugraphic Division National Semiconductor Corporation HP and AGFA Compugraphic Division joindy HP and National Semiconductor Corporation developed Type Director, which is based on announced joint development efforts aimed at Compugraphic's InteUifont font-scaling technology providing integrated semiconductor and system and has been implemented according to HP's network products that conform to the IEEE specifications. 802.3 lOBASE-T network standard.

Nellcor Inc. HP was granted a license imder Nellcor Inc.'s sensor-coding patents to use NeUcor's oximeter MERGERS AND ACQUISITIONS sensors with HP patent-monitoring systems. Oki Electric Industry Co. Ltd. 1991 The two companies agreed to build and operate a printed circuit board facility in Puerto Rico. Applied Optoelectronic Technology HP purchased Milpitas, California-based Applied Oracle Corporation Optoelectronic Technology, thereby expanding HP, through its Apollo Division, announced a mar HP's range of semiconductor test gear. AOT makes keting agreement with Oracle under which both automatic testing gear for smart-power modules companies will promote and market the Oracle and integrated circuits. relational database management systems software products. 1989 Philips Components Apollo Computer Inc. HP and Phihps Components of the Netherlands This merger with Apollo gave HP a strong foot announced an agreement to develop and make hold in the networking arena, with a 30.4 percent high-voltage optocouplers. shate of the 1988 workstation market. The acquisi tion gave HP an installed base of about 84,000 Samsung Electronics Co. Ltd. Apollo machines at almost 3,000 sites and another HP and Samsung Electronics Co. in Korea formed proprietary RISC architecture. an agreement for Samsung to develop, manufac ture, and resell chip sets, workstations, and other Optotech computers using HP's RISC technology. HP purchased certain assets of Optotech, a pri vately held company that designs and develops Sony of America optical disk drives. Sony of America will supply 5.25-inch rewritable optical disk storage products to HP for the HP C17QA Optical Disk Library System, the first rewritable optical disk autochanger. The Sony drive and controller will also be used for a KEY OFFICERS standalone rewritable optical disk subsystem, the HP C1711A, which is fully compatible with the Optical Disk Library System. David Packard Chairman of the board Spatial Technology Inc. John A. Young HP and Spatial Technology Inc. agreed to jointly President, chief executive officer market solid-modeling software for the mechanical computer-aided design and computer-aided Dean O. Morton manufacturing market HP bought about a 10 per Executive vice president, chief operating officer cent equity stake in Spatial. Richard C. Alberding VHA Supply Company Inc. Executive vice president. Marketing and Interna HP and VHA Supply Company signed a two-year tional extension to a three-year purchase agreement signed in 1987, covering a variety of HP medical- John L. Doyle electronic and computer products. Under the terms Executive vice president. Business Development of the agreement, HP will provide cridcal-care and Richard A. Hackborn diagnostic equipment as well as computer systems Executive vice president, Computer Products to VHA's national network of 669 locally owned Organization hospitals and their 177 affiliates. Included in the critical-care equipment are the HP CareVue 9000 Lewis E. Piatt clinical information system and the HP Component Executive vice president. Computer Systems Monitoring System. Organization m ©1991 Dataquest Incorporated October—Reproduction Prohibited 0011509 Hewlett-Packard Company

William E. Terry ••••••^ Executive vice president. Measurement Systems Robert Wayman FOUNDERS Senior vice president, chief financial officer William R. Hewlett (stepped down as Vice President ^^^^^^^^^^^^^^^^^^^^^M of board of directors, February 1987) David Packard PRINCIPAL INVESTORS

David Packard—17.1 percent William R. Hewlett—12.2 percent

Table 4 Balance Sheet Fiscal Year Ending October 31 (Millions of U.S. Dollars)

Balance Sheet 1986 1987 1988 1989 1990 Cash 1,372 2,645 814 906 1,077 Receivables 1,344 1,561 1,982 2,494 2,883 Marketable Securities 0 0 118 20 0 Inventory 981 1,117 1,478 1,947 2,092 Other Current Assets 117 167 170 364 458 Total Current Assets 3,814 5,490 4,562 5,731 6,510 Net Property, Plants 2,236 2,328 2,516 2,893 3,201 Other Assets 237 315 780 1,451 1,684 Total Assets 6,287 8,133 7,858 10,075 11,395 Total Current Liabilities 1,518 2,735 2,589 3,743 4,443 Long-Term Debt 110 88 392 474 139 Other Liabilities 285 288 344 412 450 Total Liabilities 1,913 3,111 3,325 4,629 5,032 Converted Preferred Stock 0 0 0 0 0 Common Stock 712 776 234 459 739 Other Equity 0 0 0 0 0 Retained Earnings 3,662 4,246 4,299 4,987 5,624 Total Shareholders' Equity 4,374 5,022 4,533 5,446 6,363 Total Liabilities and Shareholders' Equity 6,287 8,133 7,858 10,075 11,395

Soutce: Hewlett-Packard Company Annual Reports and Fbims 10-K. Dataquest (October 1991)

Table 5 Consolidated Income Statement Fiscal Year Ending October 31 (Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue 7,102 8,090 9,831 11,899 13,233 U.S. Revenue 3,812 4,122 4,763 5,561 6,025 Non-U.S. Revenue 3,290 3,968 5,068 6,338 7,208 Cost of Sales 3,353 3,785 4,832 6,091 6,993 R&D Expense 824 901 1,056 1,269 1,367 SG&A Expense 2,145 2,442 2,859 3,327 3,711 Capital Expense 497 510 648 857 955 Pretax Income 780 962 1,142 1,151 1,056 Pretax Margin (%) 10.98 11.89 11.62 9.67 7.98 Effective Tax Rate (%) 33.90 33.10 28.50 28.00 0 Net Income 516 644 816 829 739 Shares Outstanding, Millions 256 257 234 238 244 Per Share Data Earnings 2.02 2.50 3.36 3.52 3.06 Dividend 0.22 0.23 0.28 0.36 0.42 Book Value 17.09 19.54 19.37 22.88 26.08

Sovce: Hewlett-Packard Company Annual Reports and Fonns 10-K Dataquest (October 1991)

Table 6 Key Financial Ratios Fiscal Year Ending October 31 Key Financial Ratios 1986 1987 1988 1989 1990 Liquidity Current (Times) 2.51 2.01 1.76 1.53 1.47 Total Assets/Equity (%) 143.74 161.95 173.35 185.00 179.08 Current Liabilities/Equity (%) 34.71 54.46 57.11 68.73 69.83 Total Liabilities/Equity (%) 43.74 61.95 73.35 85.00 79.08 Profitability (%) Return on Assets 8.21 7.92 10.38 8.23 6.49 Return on Equity 11.80 12.82 18.00 15.22 11.61 Profit Margin 7.27 7.96 8.30 6.97 5.58 Other Key Ratios R&D Spending % of Revenue 11.60 11.14 10.74 10,66 10.33 Capital Spending % of Revenue 7.00 6.30 6.59 7.20 7.22 Employees 82,000 82,000 87,000 95,000 92,000 Revenue ($K)/Employee 86.61 98.66 113.00 125.25 143.84 Capital Spending % of Assets 7.91 6.27 8.25 8.51 8.38 Source: Hewlett-Packard Con^wny Annual Reports Dataquest (October 1991)

0011509 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 15 Hitachi Ltd. 6, Kanda-Surugadai 4-chome, Chiyuoda-ku Tokyo 101, Japan Telephone: (03) 258-1111 Fax: (03) 253-2186 Dun's Number: 69-054-1503 Date Founded: 1910

CORPORATE STRATEGIC DIRECTION made an effort to expand production at overseas sites. As part of this expansion, a company was set up in Hitachi Ltd. was foimded to develop indigenous Japa France for manufacturing computer products. Hitachi nese electrical power equipment manufacturing tech also increased the production capacity of a number of nology. Initially, the company emphasized the bases in other parts of the world. development of heavy electrical equipment and indus trial machinery. After World War H, Hitachi expanded into the consumer product area and in the 1950s During fiscal year 1991, operating income was held entered the electronics field, producing computers, back by the high value of the yen, the economic semiconductors, and other electronic devices. slowdown in the United States and Europe, and the transition to a new generation of products in key Over the years, most of Hitachi's business operations computer and semiconductor sectors. In order to off involved large equipment such as power plants and set these factors, Hitachi increased its plant and industrial machinery. The plant-as-profit-center con equipment investment by 19 percent to ¥781,488 cept was the basis of the management system. Today, million (U.S.$55.6 million). (Percentage changes however, a large percentage of Hitachi's business refer only to ¥ amounts; U.S.$ percentage changes relates to electric and electronic consumer goods, will differ because of fluctuations in Dataquest office automation equipment, and other mass-market exchange rates.) Most of these funds were used to products. strengthen and consolidate the computer and semi conductor operations. Under the new system, the business divisions make the decisions regarding product development and coordinate the work of the laboratory, plant, and sales Hitachi's consolidated revenue of ¥7,737.0 billion division in all phases of the development process, (U.S.$54.8 billion) for fiscal 1991 was an increase of from R&D to marketing. This new system created the 10.65 percent from ¥7,077.8 biUion (U.S.$49.5 bU- Semiconductor Design and Development Center and lion) during fiscal 1990. the Instimte of Advanced Business Systems, as well as a system for promoting the development and mar keting of new products in new business fields. During Hitachi is divided into four separate segments: Infor 1990, the office computer system design operations, mation Systems and Electronics, Power and Industrial which had been split between two works, were con Systems, Consumer Products, and Materials and solidated under die newly established Center for Others. Information Systems and Electronics was the Small-Scale Processors and Workstations Develop largest contributor of revenue with 34 percent or ment. Thus, a new profit center was created under the ¥2,781,351 million (U.S.$19,798 million); Power wing of the computer division. and Industrial Systems contributed 28 percent or ¥2,357,892 million (U.S.$16,783 million); Hitachi also consoUdated the operations of its sub Materials and Others contributed 25 percent or sidiaries in each of the three major regions—^United ¥2,100,870 million (U.S.$14,953 million); and States, Europe, and Asia—where the company has Consumer Products contributed 13 percent or production and marketing bases. Hitachi also ¥1,107,388 milhon (U.S.$7,882 miUion).

Net income increased by 10.4 percent to ¥230.2 In the second half of 1990, the supply of MOS billion (U.S.$1.6 billion) for fiscal 1991, compared memories exceeded demand, increasing the down with ¥211.0 billion (U.S.$1.5 biUion) in fiscal 1990. ward pressure on prices. Therefore, as a result of The improved results were attributed to the compa industry cutbacks in the production of 1Mb DRAMs ny's steady expansion on a worldwide scale. Hitachi implemented in fall 1990, prices stabilized. During employs more than 290,000 people worldwide. the latter half of 1990, there was a growing demand for 4Mb DRAMs for use in new workstations and 32-bit personal computers. According to Dataquest Research and development expenditure increased to estimates, Hitachi increased its DRAM market share ¥490.7 billion (U.S.$3.5 biUion) and represented firam 8.5 percent in 1989 to 9.7 percent in 1990, 6.3 percent of total revenue for the period. Over and the company ranked fourth worldwide in DRAM 60 percent of this expenditure was channeled into the production, accounting for U.S.$697 million in Information Systems and Electronics division. During revenue. 1990, Advanced Research Laboratory was relocated to Saitama Prefecture, Japan. This laboratory concen trates on long-temi research projects with a duration of 10 to 20 years. It is currently engaged in research Computers in the areas of quantum measurement, software During fiscal 1990, Hitachi introduced the large-scale science, biotechnology, and materials science. general-purpose HITACHI M-880 Processor Group. This system will become a mainstay product in More detailed information is available in Tables 1 and Hitachi's computer operations. In addition, the tech 2, which appear after "Business Segment Strategic nology involved will be applied extensively in other Direction" and present corporate highlights and reve products. During 1990, in the business computer nue by region. Information on revenue by distribution market, Hitachi had a 12.45 percent worldwide mar channel is not available. Tables 3 through 7 at the end ket share and ranked third in supercomputers. In of this backgrounder provide comprehensive financial mainframes, it ranked second with a 7.40 percent information. worldwide market share. In the technical computer market, Hitachi had a 2.09 percent worldwide market share and ranked tenth in supercomputers. In main frames, it ranked third with a 7.79 percent worldwide market share. In the personal computer market, Hitachi had less than one percent of the market BUSINESS SEGMENT STRATEGIC DIRECTION Computer Storage Semiconductors In addition to intioducing the HITACHI M-880, the During calendar year 1990, Hitachi was the third company also introduced die H-6587 series of mass- largest worldwide semiconductor manufacturer with storage magnetic disk storage subsystems for large U.S.$3,893 million, representing a 6.7 percent market computers. Dataquest estimates that Hitachi ranks share. Dataquest estimates the company's single third in the worldwide total optical disk drive market largest market to be Japan, which generated approxi with 11.5 percent of the maiket and U.S.$23.4 million mately U.S.$2.8 million, representing 12.1 percent of in 1990 revenue. In the CD-ROM optical disk drive the semiconductor market during 1990. Dataquest market, Hitachi ranks second worldwide with revenue ranks Hitachi third of all Japanese companies in this of U.S.$10.4 milUon and a market share of 17.5 per market. Hitachi's next largest market is North Ameri cent. Hitachi also ranks third in the worldwide ca, where Hitachi's sales were U.S.$517 million in 12-inch WORM optical disk drive maiket with a calendar 1990, ranking eighth, with a 3.0 percent 20 percent maiket share and U.S.$13 million in market share. revenue.

Hitachi was the third largest worldwide supplier of Other Products MOS memory in 1990, accounting for approximately U.S.$1,366 million in revenue worldwide. This Hitachi's Power and Industrial Systems witnessed represented a 10 percent share of the worldwide a 5 percent increase in fiscal 1990 sales over 1989. market, which is an increase of about 10 percent over The main contributing factors were a higher level of 1989. industrial demand accompanying the continuing

expansion of the domestic economy. Sales in the electronics equipment and industries, plus a high Hitachi's Consxmier Products division grew 10 per level of new housing starts, led to increased sales for cent in 1990 firom 1989. In Japan, sales were derived Hitachi Chemical Co. Ltd. The major part of the from air conditioners, washing machines, and 8mm service sector business was derived from Hitachi camera/recorders. Although overseas sales were Transport System. The continuing driviog pace of the severely affected by the depressed state of the U.S. Japanese economy generated strong demand for market, there was a recovery in exports of color freight-hauling services and produced an increase in television sets and VCRs to China and brisk exports company sales. to the USSR and Eastern Europe. The Materials and Others division posted an increase of 12 percent over 1989. Hitachi Cable Ltd. achieved an increase in sales based on a combination of strong domestic demand, Further Information mostly from the electric equipment and construction industries and brisk exports. At Hitachi Metals Ltd., For further information pertaining to die company's sales were pushed up by demand from the automobile business segments, please contact the appropriate and electronics-related industries. Active business in Dataquest industry service.

Table 1 Five-Year Corporate Highlights (Billions of U.S. Dollars)

1987 1988 1989 1990 1991 Five-Year Revenue 30.4 36.0 49.9 49.5 54.8 Percent Change 34.19 18.61 38.48 (0.79) 10.65

Capital Expenditure 4.1 2.7 4.0 3.6 5.3 Percent of Revenue 13.56 7.49 8.04 7.27 9.61

R&D Expenditure 1.9 2.3 2.9 3.0 3.5 Percent of Revenue 6.34 6.51 5.83 6.07 6.34

Number of Employees 161,325 159,910 274,508 290,000 310,000 Revenue ($K)/Employee 0.19 0.23 0.18 0.17 0.18

Net Income 0.6 1.0 1.4 1.5 1.6 Percent Change 38.67 60.22 46.02 2.01 10.43 Exchange Rate (U.S.$1^ 159.56 138.03 128.25 142.93 141.21

Source: Hitachi Lid. Annual Reports Dataquest (November 1991) Table 2 Revenue by Geographic Region (Percent)

Region 1987 1988 1989 1990 1991 Japan 73.82 76.00 77.05 76.58 76.02 International 26.18 24.00 22.95 23.42 23.98

Source: Hitachi, Ltd. Annual Reports Dataquest (November 1991)

Hitachi Consumer Products (U.K.), United Kingdom Color TVs 1991 SALES OFFICE LOCATIONS Hitachi Semiconductor Europe, Germany Semiconductors North America—2 Europe—2 Asia/Pacific—61 AsialPacific Japan—50 Akita Electronic Co., Akita, Japan ROW—9 MOS, bipolar IC Hanshi Electric, Japan Ignition coils for automobiles Haramachi Semiconductor Ltd., Ibaraga, Japan MANUFACTURING LOCATIONS Diodes, thyristors Hitachi Computer Engineering, Japan Development of automatic designing systems North America Hitachi Consumer Products, Malaysia TV parts High Voltage Breakers, Norcross, Georgia Hitachi Consumer Products, Singapore SF6 gas breakers Color TVs, audio equipment, vacuum cleaners Hitachi Automotive Products, Farmingtonhills, Hitachi Consumer Products, Thailand Michigan Electronic auto parts Electric fans, refrigerators, TVs, motors, air Hitachi Cable Manchester Inc., Manchester, New conditioners, electric rice cookers Hitachi Cubu Electric, Japan Hampshire Switchboards Cables Hitachi Cable Manchester Inc., New Albany, Indiana Hitachi Denshi, Japan Automobile brake hose Communications equipment, measuring instru Hitachi Computer Products (America), Norman, ments, information equipment Oklahoma Hitachi Electronic Devices, Singapore Color CRTs Computer products (magnetic disk devices, Hitachi Electronics Engineering, Japan magnetic tape cartridges) Hitachi Construction Machinery Corp., Brampton, Information equipment, semiconductor devices, Ontario energy-saving equipment Excavators, cranes, tunnel shield machines Hitachi Elevator Engineering, Singapore Hitachi Electronic Devices USA Inc., Greenville, Elevators, escalators South Carolina Hitachi Engineering, Japan Color picture mbes Electric/electronic equipment, plant engineering Hitachi Home Electronics of America, Anaheim, Hitachi Haramachi Semiconductor, Japan California Semiconductor parts Color TVs, VCRs Hitachi Kiden Kogyo, Japan Hitachi Denshi (Canada) Ltd., Scarborough, Ontario Cranes, water treatment equipment, FA-related Broadcast and professional video, CCTV equipment equipment, test and instrumentation Hitachi Kyowa Kogyo, Japan Hitachi (HSC) Canada Inc., Pointe Claire, Quebec Electric equipment TVs, VCRs, and household electric appliances Hitachi Maxell, Japan Hitachi Instruments Inc. Dry batteries, magnetic tapes, electronic devices Medical instruments Hitachi Medical, Japan Hitachi Semiconductor (America), Irving, Texas Medical equipment Semiconductors Hitachi Microcomputer Engineering, Tokyo, Japan Hitachi Telecom, Norcross, Georgia MPUs, ASICs Digital PBXs Hitachi Mizusawa, Japan Transformers for TVs Europe Hitachi Naka Seiki, Japan Chromatographic equipment, scientific instruments Hitachi Consumer Products (Europe), Germany Hitachi Nissin Electronics, Japan VCRs Electronic parts

Hitachi Ohira Industrial, Japan Tobu Semiconductor Ltd., Aomari, Japan Parts for refrigerators, air conditioners Bipolar ICs Hitachi Process Computer Engineering, Japan Tobu Semiconductor Ltd., Saitama, Japan Process computers Transistor, hybrid ICs Hitachi Semiconductor, Malaysia Tokico Ltd., Japan Semiconductors Electrical auto parts and equipment Hitachi Setsubi Engineering, Japan Tokyo Electronics Co., Yamanashi, Japan FA equipment Diodes, bipolar ICs Hitachi Techno Engineering, Japan Yagi Antenna, Japan Electronic part manufacturing equipment Antennas Hitachi Telecom Technologies, Japan Yomezawa Electronic Co., Yamagata, Japan Switching systems MOS Hitachi Television, Taiwan Color TVs, audio equipment, displays Hitachi Video Engineering, Japan ROW Development of video equipment ladustrias Hitachi, Brazil Hitachi Works, Ibaraga, Japan Distribution equipment, air conditioners, electronic Discrete devices parts, transformers, switches Hitachi Yomezawa Electronic, Japan Hitachi Consumer Products de Mexico, Mexico Semiconductor elements Hokkai Semiconductor, Hokkaido, Japan Televisions SRAMs Horiba Ltd., Japan Electric measuring instruments Japan Servo, Japan Precision motors SUBSIDIARIES Jidosha Denki Kogyo, Japan Electrical auto parts North America Kaohsiung Hitachi Electronics, Taiwan Electronic parts, transistors, LCDs Hitachi America Ltd. (United States) Kokusai Electric, Japan Hitachi Automotive Products (USA) Inc. Electric communications equipment (United States) Kokusan Denki, Japan Hitachi (Canadian) Ltd. (Canada) Electrical auto parts, generators, motors Hitachi Computer Products (America) Inc. Komoro Works, Nagano, Japan (United States) Photo devices, hybrid ICs I£tachi Electronic Devices (United States) Mobara Works, Chiba, Japan Hitachi Farmington Technical Center (United States) DRAMs, CMOS logic, LCDs Hitachi Home Electronics of America Inc. Musashi Works, Tokyo, Japan (United States) MPUs, diodes, DRAMs, SRAMs Ifitachi Micro Systems Inc. (United States) Naka Works, Ibaraga, Japan Hitachi Semiconductor (America) Inc. (United States) Semiconductor sensors, DRAMs, SRAMs Hitachi Telecom (USA) Inc. (United States) Nakayo Telecommunications, Japan Telephone and switching systems Nigata Works, Nigata, Japan Europe Linear, bipolar digital ICs Hitachi Consumer Products Europe Ltd. Nippon Colimibia, Japan (United Kingdom) Records, stereos, and other audio equipment Ifitachi Semiconductor Europe (Germany) Nissin Electronics Ltd., Ibaraga, Japan Hitachi Consumer Products (Europe) (Germany) MOS Taga Sangyo, Japan Electric equipment Asia/Pacific Taiwan Hitachi, Taiwan Room air conditioners Asahi Kogyo Co. Ltd. (Japan) Takasaki Woiks, Gunma, Japan Babcock-Hitachi K.K. (Japan) Bipolar and MOS ICs, EPROMs, CMOS logic Chuo Shoji Ltd. (Japan)

Hitachi Air Conditioning & Refrigeration Co. Ltd. (Japan) Hitachi Australia Ltd. (Australia) ALLIANCES, JOINT VENTURES, AND Hitachi Automobile Appliances Sales Co. Ltd. LICENSING AGREEMENTS (Japan) Hitachi Cable Ltd. (Japan) Hitachi Chemical Co. Ltd. (Japan) 1991 Hitachi Construction Machinery Co. Ltd. (Japan) Texas Instruments Inc., Fujitsu Ltd., and Sony Hitachi Consumer Products (Malaysia) Sdn. Bhd. Corporation (Malaysia) Texas Instruments, Fujitsu, and Sony, along with Hitachi Consumer Products Pte. Ltd. Hitachi Ltd., have agreed to collaborate on HDTV Hitachi Credit Corporation (Japan) chip development Texas Instruments will be doing Hitachi Electronic Components (Asia) Ltd. the frame memory store, Fujitsu the signal proces (Hong Kong) sors, Sony the analog components, and Hitachi the Hitachi Electronic Devices (Singapore) Pte. Ltd. audio circuits. The full Muse chip set is scheduled (Singapore) for completion duriug the first quarter of 1992. Hitachi Denshi Ltd. (Japan) Hitachi Electronics Engineering Co. Ltd. (Japan) Bull CP8 S.A. Hitachi Electronics Service Co. Ltd. (Japan) Bull CP8 S.A., a subsidiary of Groupe BuU, Hitachi Elevator Engiaeering and Service Co. Ltd. located in Trappes France, has signed Hitachi Ltd. (Japan) as the first Japanese licensee of its self- Hitachi Engineering Co. Ltd. (Japan) programmable one-chip microcomputer (SPOM) Hitachi Heating Appliances Co. Ltd. (Japan) patent Hitachi's chips for microcomputer cards Hitachi Higashi Shohin Engineering Ltd. (Japan) will be made available in Japan through Tokyo- Hitachi Hokkai Semiconductor Ltd. (Japan) based SPOM Japan KK, a joint venture between Hitachi Kiden Kogyo Ltd. (Japan) Bull CP8 and Dai Nippon Printing Co. Ltd, and Hitachi Lighting Ltd. (Japan) worldwide through Hitachi's overseas sales office. Hitachi Machinery and ^gineering Ltd. (Japan) Dongfang Power Corp. Hitachi Maxell Ltd. (Japan) Hitachi Ltd. is planning to supply thermal power Hitachi Medical Corporation (Japan) plant construction technology to Dongfang Power Hitachi Metals Ltd. (Japan) Corp., a Chinese company located in Sichuan Hitachi Mokuzai Jisho Ltd. (Japan) Province. Under a 10-year agreement with the Chi Hitachi Nishi Shohin Engineering Ltd. (Japan) nese company, Hitachi will provide technology Hitachi Plant Engineering & Construction Co. Ltd. relating to steam turbines and generator for use in (Japan) 600,000kw class thermal power stations. The two Hitachi Power Engineering Co. Ltd. (Japan) companies will then jointiy construct four power Hitachi Printing Co. Ltd. (Japan) plants. Hitachi Sales Corporation (Japan) Hitachi Seiko Ltd. (Japan) TRW Inc. Hitachi Semiconductor (Malaysia) Sdn. Bhd. Hitachi Ltd. and TRW Inc. formed a 15-year (Malaysia) strategic alliance to joindy pursue opportunities in Hitachi Service Engineering Co. Ltd. (Japan) space systems and related ground systems and Hitachi Software Engineering Co. Ltd. (Japan) technologies. The two companies signed an agree Hitachi Techno Engineering Co. Ltd. (Japan) ment to set up a management team that will meet Hitachi Telecom Technologie Ltd. (Japan) periodically to review future space programs, mar Hitachi Television Ltd. (Taiwan) ket opportunities, and technology requirements. Hitachi Tochigi Electronics Co. Ltd. (Japan) Hitachi Tohbu Semiconductor Ltd. (Japan) Ultra-Network Technologies Hitachi Tokyo Electronics Co. Ltd. (Japan) Ultra-Network Technologies, a U.S. network sys Hitachi Transport System Ltd. (Japan) tem manufacturer, and Hitachi Ltd. have formed a Hitachi Welfare Service Ltd. (Japan) software agreement. The agreement will allow Japan Servo Co. Ltd. (Japan) Hitachi to port ULTRANET software, a high-speed Nippon Business Consultant Co. Ltd. (Japan) network software package developed by Ultra- Nissei Sangyo Co. Ltd. (Japan) Network, to its mainframe computers. The new

version of ULTRANET will run under Hitachi's Zuken Inc. VOS3 operating system. Hitachi agreed to allow Zuken to develop CAD/ CAM/CAE software packages for the 2050G Hewlett-Packard Company Series of engineering workstations made by Hewlett-Packard Company (HP) and Hitachi Ltd. Hitachi. have agreed to joindy develop an ardficial intelli gence software product based on Hitachi's ES/ Adaptive Information Systems (AIS) Kernel expert systems technology. The new soft AIS has been formed by Hitachi to market docu ware will run on HP 9000 UNIX workstation as ment image processing systems using optical stor weU as on Hitachi workstations. age technology. National Semiconductor Corporation National Semiconductor Corporation and Hitachi Hewlett-Packard Ltd. have signed a 10-year patent cross-licensing Hewlett-Packard is hcensing its proprietary Preci agreement that covers aU semiconductor products sion Architecture to Hitachi. The two companies and technologies developed by either company in also agreed to joindy develop a new set of chips tbe past and during the course of the agreement using HP's proprietary Precision Architecture The new agreement expands and replaces a previ RISC MPU technology. ous cross-hcensing agreement between the two companies concerning FACT logic products. Texas Instruments Inc. Texas Instruments supplied SRAMs to Hitachi on Goldstar Electron Company Ltd. an OEM basis. Hitachi Ltd. licensed Lucky Goldstar Group's Goldstar Electron Company Ltd. to fabricate 4Mb GoldStar memory chips to Hitachi's design. Part of the Hitachi signed a major pact with South Korea's ou^ut will be sold back to Hitachi. GoldStar Company covering 1Mb DRAMs, for which Hitachi wiU provide technical consultations and manufacturing technology. Hitachi will get 1990 royalty payments fix)m GoldStar and eventually Comparex Information Systems GmbH will buy chips to sell under its own label. Comparex Information Systems GmbH agreed to ship Hitachi's new Integrated Vector Feature for its Cray 8/9X series of processors. litis agreement gives each company the right to make use of the other's patents in designing com VLSI Technology Inc. puter hardware. Hitachi plans to supply SRAMs to VLSI Technol ogy on an OEM basis. The SRAMs have been National Semiconductor joindy developed by the two companies. Under this production agreement for FACT logic devices, both companies can mutually produce Kansai Electric Power Co., Matsushita Electric independently defined and independentiy devel Industrial Co. Ltd., Toshiba Corporation, Mit oped new fimctions. subishi Electronics Corporation, Sumitomo Elec tric Industries Ltd., Kawasaki Heavy Industries Ltd., and Kobe Steel Ltd. Hitachi agreed to set up a new company, which wiU perform research and development for free MERGERS AND ACQUISITIONS electron lasers with the preceding companies.

Sears, Roebuck and Company 1991 Hitachi agreed to let Sears market its VY15A video Hitachi has made no merger or acquisition in 1991. printer.

1989 1990 Sun Microsystems Inc. Dataproducts Corporation Hitachi licensed Sun's Open Network Computing/ Two Hitachi affiliates, Hitachi Koki and Nissei Network File System technology for implementa Sangyo, acquired Dataproducts Corporation for tion on Hitachi's mainframe computers. approximately $160 million. Dataproducts

manufactures a broad range of band, dot matnx, Takeo Miura laser, solid ink, and thermal printers, and a wide Executive vice president and representative range of printer supplies. Dataproducts is counting director on solid ink jet printers to play a significant role in the printer industry and is investing heavily to Toshi Kitamura finance this strategically important technology. The Executive vice president and representative 1988 acquisition of Imaging Solutions Inc. gave director Dataproducts 100 percent ownership of this new technology. Dataproducts had sales of $353 million Tadashi Okita in fiscal 1989. Executive vice president and representative director National Advanced Systems Iwao Matsuoka Hitachi purchased National Advanced Systems Executive vice president and representative from National Semiconductor Corporation. The name of the company was changed to Hitachi Data director Systems. The company markets and services main frame computers and peripheral subsystems.

PRINCIPAL INVESTORS

KEY OFFICERS Nippon Life Insurance—^3.8 percent Sumitomo Trust—2.7 percent Mitsubishi Trust—2.1 percent Katsushige Mita Dai-ichi Life Insurance—2.6 percent Chairman and representative director Tsutomu Kanai President and representative director Yutaka Sonoyama FOUNDERS Executive vice president and representative director Namihei Odaira Sutezo Hata Executive vice president and representative director

Table 3 Balance Sheet Fiscal Year Ending in March (Billions of U.S. Dollars)

Balance Sheet 1987 1988 1989 1990 1991 Cash 5.6 8.0 12.8 13.0 11.7 Receivables 6.3 7.8 10.7 11.2 13.0 Marketable Securities 2.9 3.0 3.0 2.3 2.7 Inventory 5.6 7.0 9.7 9.5 11.3 Other Current Assets 1.1 1.4 1.7 1.8 2.0 Total Current Assets 21.6 27.2 38.0 37.7 40.7 Net Property, Plants 7.4 8,2 11.5 12.0 14.1 Other Assets 4.4 5.3 4.6 4.9 5.6 Total Assets 33.4 40.7 54.1 54.6 60.4 Total Current Liabilities 14.3 17.4 24.8 23.2 26.2 Long-Term Debt 3.1 3.1 4.1 6.2 6.3 Other Liabilities 2.2 2.8 3.8 3.5 3.7 Total Liabilities 19.6 23.3 32.6 32.9 36.2 Converted Preferred Stock 0 0 0 0 0 Common Stock 0.9 1.3 1.7 1.7 1.9 Other Equity 1.3 1.8 2.5 2.5 2.9 Retained Earnings 9.3 11.5 13.6 13.7 15.1 Total Shareholders' Equity 11.4 14.6 17.8 17.9 19.9 Minority Interests 2.3 2.8 3.7 3.8 4.3 Total Liabilities and Shareholders' Equity 33.4 40.7 54.1 54.6 60.4 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21

SoDtce: Hitachi Ltd. Anaual Reports Dataqnest (November 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending in March (Billions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement 1987 1988 1989 1990 1991 Revenue 30.4 36.0 49.9 49.5 54.8 Japanese Revenue 22.4 27.3 38.4 38.1 40.8 Non-Japanese Revenue 8.0 8.7 11.5 11.6 13.1 Cost of Sales 23.0 28.7 35.5 35.1 38.4 R&D Expense 1.9 2.3 2.9 3.0 3.5 SG&A Expense 6.0 7.5 11.0 10.7 12.8 Capital Expense 4.1 2.7 4.0 3.6 5.3 Pretax Income 1.6 2.4 3.8 3.7 4.0 Pretax Margin (%) 5.33 6.66 7.67 7.49 7.27 Effective Tax Rate (%) 57.50 56.10 56.10 53.90 51.20 Net Income 0.6 1.0 1.4 1.5 1.6 Shares Outstanding, Millions 2,816.3 2,921.7 3,017.7 3,072.8 3,273.7 Per Share Data Earnings 0.21 0.32 0.46 0.43 0.44 Dividend 0.06 0.07 0.07 0.06 0.06 Book Value 0 0.01 0.01 0.01 0.01 Exchange Rate (U.S.$1^ 159.56 138.03 128.25 142.93 141.21

Source: Hitacbi Ltd. Annual Reports Dataquest (November 1991)

Table 5 Balance Sheet Fiscal Year Ending in March (Billions of Yen)

Balance Sheet 1987 1988 1989 1990 1991 Cash 892.9 1,103.9 1,638.3 1,853.7 1,648.5 Receivables 1,010.6 1,080.7 1,372.2 1,594.3 1,833.9 Marketable Securities 470.6 412.3 385.1 324.8 384.9 Inventory 898.5 960.6 1,250.0 1,355.0 1,597.1 Other Current Assets 172.2 199.9 224.4 263.1 286.6 Total Current Assets 3,444.8 3,757.4 4,870.0 5,390.9 5,751.0 Net Property, Plants 1,179.1 1,133.0 1,473.1 1,708.9 1,985.7 Other Assets 704.1 730.7 594.4 705.3 789.3 Total Assets 5,327.9 5,621.1 6,937.5 7,805.1 8,526.0 Total Current Liabilities 2,288.5 2,399.0 3,183.5 3,314.9 3,694.3 Long-Term Debt 488.9 432.8 520.9 886.8 891.0 Other Liabilities 352.3 381.9 481.0 494.0 520.1 Total Liabilities 3,129.7 3,213.7 4,185.4 4,695.7 5,105.4 Converted Preferred Stock 0 0 0 0 0 Common Stock 141.2 180.3 219.4 246.9 269.7 Other Equity 199.6 244.4 322.0 357.8 410.4 Retained Ejumings 1,485.0 1,593.9 1,740.3 1,956.1 2,131.0 Total Shareholders' Equity 1,825.8 2,018.6 2,281.7 2,560.8 2,811.1 Minority Interests 372.4 388.8 470.4 548.6 609.5 Total Liabilities and Shareholders' Equity 5,327.9 5,621.1 6,937.5 7,805.1 8,526.0 Exchange Rate (U.S.$1=*) 159.56 138.03 128.25 142.93 141.21

Souce: Hitachi Ltd. Annual Reports and Dataquest (November 1991)

Table 6 Consolidated Income Statement Fiscal Year Ending in March (Billions of Yen, except Per Share Data)

Consolidated Income Statement 1987 1988 1989 1990 1991 Revenue 4.848.7 4,975.0 6,401.4 7,077.8 7,737.0 Japanese Revenue 3,579.3 3,781.0 4,932.3 5,420.1 5,881.6 Non-Japanese Revenue 1,269.4 1,194.0 1,469.1 1,657.7 1,855.4 Cost of Sales 3,675.0 3,961.9 4,552.1 5,023.5 5,417.2 R&D Expense 307.6 324.0 373.5 429.4 490.7 SG&A Expense 958.8 1,032.4 1,416.1 1,533.2 1,813.4 Capital Expense 657.4 320.4 532.4 514.9 743.4 Pretax Income 258.3 331.1 491.1 530.0 562.1 Pretax Margin (%) 5.33 6.66 7.67 7.49 7.27 Effective Tax Rate (%) 57.50 56.10 55.50 53.10 51.70 Net Income 98.7 136.8 185.6 211.0 230.2 Shares Outstanding, Millions 2,816.3 2,921.7 3,017.7 3,072.8 3,273.7 Per Share Data Earnings 33.45 44.14 58.94 61.71 65.96 Dividend 9.00 9.00 9.00 9.00 9.00 Book Value 0.65 0.69 0.76 0.83 0.86 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21

Source: Hitachi Ltd. Amnial Reports Dataquest (November 1991)

Table 7 Key Financial Ratios Fiscal Year Ending in March Key Financial Ratios 1987 1988 1989 1990 1991 Liquidity Current (Times) 1.51 1.57 1.53 1.63 1.56 Total Assets/Equity (%) 291.81 278.47 304.05 304.79 303.30 Current Liabilities/Equity (%) 125.34 118.84 139.52 129.45 131.42 Total Liabilities/Equity (%) 171.42 159.20 183.43 183.37 181.62 Profitability (%) Return on Assets 1.85 2.43 2.68 2.70 2.70 Return on Equity 5.41 6.78 8.13 8.24 8.19 Profit Margin 2.04 2.75 2.90 2.98 2.98 Other Key Ratios R&D Spending % of Revenue 6.34 6.51 5.83 6.07 6.34 Capital Spending % of Revenue 13.56 6.44 8.32 7.27 9.61 Employees 161,325 159,910 274,508 290,000 290,000 Revenue (¥K)/Employee 30.06 31.11 23.32 24.41 26.68 Capital Spending % of Assets 12.34 5.70 7.67 6.60 8.72 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21

Source: Hitachi Ltd. Annual Reports Dataquest (November 1991)

Inmos International pic

BACKGROUND AND OVERVIEW Inmos International pic was founded in 1978 by two Americans, Richard Petritz and Paul Schroeder, and an Englishman, lann Barron. Inmos was primarily a spin-off company from Mostek Corporation. Mr. Petritz was a foimder of Mostek, and Mr. Schroeder was one of Mostek's key memory design managers. Under the original agreement, Inmos Ltd. was to be a British-backed semiconductor venture funded by the National Enterprise Board (NEB). The concept called for design and manufacturing facilities in both the United States and the United Kingdom. In this way, Inmos planned to gain synergy from the existing high-technology base in the United States. The Labor government in the United Kingdom approved the plan in May 1978 and invested an initial £50 million in the Company. Inmos' strategy was to start out by making high price/performance ICs. These were to be marketed to customers in demanding areas (e.g., telecommunications, measuring equipment, military equipment, and large computers). Once established in this market, Inmos planned to move into commodity products and more competitive markets. In January 1979, Inmos opened the Harrison Park facility in Colorado Springs, Colorado, in the United States. Wafer fabrication operations began within a few months. Inmos faced an uncertain future, however, with the Conservative government election victory in 1979. Under the Conservative government, the NEB—later renamed the British Technology Group (BTG)—started divesting its investments acquired under the previous government. At the same time, Inmos was seeking further funding. After an eight-month delay, the NEB invested an additional £25 million in August 1980. This brought the total of U.K. taxpayers* investment, in Inmos to approximately £100 million. Attached to the loan was the condition that the new U.K. production facility should be situated in Newport, South Wales, an economically depressed area some distance from the Company's Bristol design and corporate headquarters facility. By December 1980, Inmos' first product, a 16K NMOS SRAM, went on the market. In February 1981, a second facility in Colorado Springs, Colorado, was opened in the United States. By May 1982, Inmos had completed its family of high-performance 64K DRAMs. From its inception, Inmos has been engaged in parallel architecture microprocessor development. This resulted in the parallel architecture of the transputer requiring a totally different programming solution, which led Inmos to develop OCCAM, a special language. This met with some resistance in the market because the concept was too advanced for its time. Design engineers were used to the sequential languages, such as FORTRAN and Pascal. As with most revolutionary products, the transputer took a long time to ramp up revenue. The transputer is now an established architecture in leading applications such as imaging, laser printers, and parallel processors.

In 1984, the IMS 1423, a 16K CMOS SRAM, was introduced. Toward the end of the year, the IMS 1600, a 64K CMOS SRAM, was sampled. The DRAM range was also extended to include two new versions of the IMS 2600 64K DRAM. The 1984 semiconductor boom confirmed a need for an assembly operation under Inmos' direct control and near the Newport production site. In September 1984, the Company broke ground for a 100,000-square-foot assembly facility at Coed Rhedyn, Newport. This facility was to assemble a high percentage of the existing Newport production and to test all devices made there, thus freeing space in Newport for expansion of existing activities. By 1985, the facility was almost complete; however, it was mothballed because of the depressed state of the semiconductor industry. In 1986, Inmos announced that it would reopen the Coed Rhedyn facility. At the end of 1984, Inmos had 2,135 employees worldwide, with 1,014 in the United Kingdom and 1,121 in the United States. The Company invested $32 million in capital expenditure in 1984, a large proportion of it in developing the Newport operation. The semiconductor recession resulted in a large amount of redundancies, and the size of the Company was reduced by one-half, both in the United States and the United Kingdom. Working hours were cut also. In September 1984, Thom-EMI acquired the U.K. government's 76.1 percent shareholding in Inmos for £95 million. On March 31, 1987, the total holding of Thom-EMI in Inmos stood at 99.9 percent. Thom-EMI started restmcturing Inmos to bring it to profitability. In 1985 and 1986, when it licensed the technology to NMB semiconductors of Japan, Inmos pulled out of the DRAM market. Production at the Colorado Springs facility ceased, leaving behind only research and development (R&D), pilot wafer fabrication, and marketing. Subsequently, in December 1987, the rest of the facility was closed. The plant's activities were transferred to the Newport site in the United Kingdom for an annual savings of $20 million. The divestments are indicative of Inmos' increasing reliance on its transputer products. In December 1987, the transputer accounted for more than 50 percent of sales; this will increase to between 70 and 80 percent by 1989. Thom-EMI is currently seeking a majority partner that can finance the future capital investments required for Inmos to continue further development of its transputer, memory, and DSP lines.

PRODUCTS AND MARKETS SERVED To date, Inmos has pulled out of the DRAM and high-density SRAM markets to concentrate on the transputer, color look-up table, and DSP chips. The Company announced that it was on the threshold of a major boom in transputer orders, particularly from major United States and Japanese corporations.

Inmos is continually widening applications of the transputer. The Company recently introduced a line of modules called TRAMs that make it possible to build multitransputer systems quickly and simply. Modules can be chosen to suit the application, depending on whether it is processor intensive or memory intensive, or performs some special-purpose function.

OUTLOOK Table 1 shows Dataquest's estimates of Inmos' European semiconductor revenue. Table 2 shows Dataquest's estimates of Inmos' worldwide semiconductor revenue. Despite an uncertain future at times, Inmos has come a long way since its inception. The Company's range of transputer products are complex and have taken longer to generate substantive revenue than originally planned. Dataquest believes that the parallel processing applications in imaging, graphics, laser writers, and workstations are just beginning to play a significant role in the marketplace, and the transputer is well placed to take advantage of them. With substantial design wins in Japan, the United States, and Europe under its belt, the future outlook for the transputer range is very bright. Besides transputers, Inmos has its color look-up table designed in many graphics applications including the PS/2. Inmos' new range of innovative DSP chips is creating a stir in the marketplace, and we expect Inmos to be a significant participant in the function-specific DSP market.

Table 1 Inmos International pic Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1984 1995 1995 1997 Total Semiconductor $9 $25 $18 $18 $20

Total Integrated Circuit $9 $25 $18 $18 $20 Bipolar Digital 0 0 0 0 0 MOS 9 25 18 18 20 Linear 0 0 0 0 0

Total Discrete 0 0 0 0 0 Transistor 0 0 0 0 0 Diode 0 0 0 0 0 Thyristor 0 0 0 0 0 Other 0 0 0 0 0

Total Optoelectronic

Table 2 Inmos International pic Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) X993 1984 1995 1986 1987 Total Semiconductor $58 $146 $85 $80 $91

Total Integrated Circuit $58 $146 $85 $80 $91 Bipolar Digital 0 0 0 0 0 MOS 58 146 85 80 91 Linear 0 0 0 0 0

Total Discrete 0 0 0 0 0 Transistor 0 0 0 0 0 Diode 0 0 0 0 0 Thyristor 0 0 0 0 0 other 0 0 0 0 0

Total Optoelectronic

Source: Dataquest November 1988

© 1988 Dataquest Incorporated November ESIS Volume III 0001483 Intel Corporation 3065 Bowers Avenue Santa Clara, California 95052-8131 Telephone: (408) 765-8080 Fax: (408) 987-5686 Dun's Number: 04-789-7855 Date Founded: 1968

CORPORATE STRATEGIC DIRECTION increased, with a net profit of $650.3 million being reported in fiscal 1990. This represents a 66.3 percent gain over 1989's net income of $391.0 million. Founded in 1968, Intel Corporation originally flourished as a supplier of semiconductor memory for mainframe and minicomputer manufacturers. Today, Most of Intel's products are sold or Ucensed through a Intel and its subsidiaries are engaged primarily in the network of 79 sales offices located in 21 nations business of designing, developing, manufacturing, throughout the world. Additionally, the company uses and marketing advanced microcomputer components distributors and representatives to distribute its and related products at various levels of integration. products in the United States and elsewhere. Typical Microcomputers based on Intel technology can be ly, distributors handle a wide variety of products, found in thotisands of appUcations ranging from per including those competitive with Intel products, and sonal computers and automobiles to robots and super fill orders for small quantities. Sales representatives computers. generally do not offer competitive products, but may cany complementary items mantifactured by other companies. Representatives do not maintain a product As a leader in the semiconductor industry, Intel has inventory; instead, their customers place large quan helped revolutionize the computing industry with tity orders directly with Intel and refer smaller orders such inventions as the microprocessor and the erasa to distributors. ble programmable read-only memory (EPROM) device. In addition to being a dominant player in the microprocessor and memory markets, Intel is an The North American region continued to account for important participant in other semiconductor areas. the majority of Intel's 1990 revenue, and over the past The company manufactures microprocessor five years that number has fluctuated between peripheral components, embedded control products, 54 percent and 61 percent of the company's total rev software, microcomputer systems, and development enue. In 1990, Europe and Japan accoimted for tools. 22 percent and 10 percent, respectively, of Intel's total revenue. The company employs 23,900 people worldwide. In terms of profitability, Intel had an excellent year in fiscal 1990, as both net revenue and net income posted substantial gains over previous company In 1990, R&D expense totaled $516.7 million, an records. Net revenue increased 25.4 percent to increase of 41.5 percent compared with 1989's result $3.92 billion* in 1990, up from $3.13 billion of $365.1 million. Intel's new submicron develop recorded in 1989. Intel attributes the increase primar ment facility in Santa Qara, CaUfomia, which began ily to strong unit growth of its high-performance operation in 1990, contributed largely to this increase. proprietary components and to systems based on As a percentage of revenue, R&D expense increased these components. The associated revenue growth to 13.2 percent in 1990 ft-om 11.7 percent and was moderated by lower average selling prices fol 11.1 percent in 1989 and 1988, respectively. Accord lowing a normal product maturity/pricing trend. For ing to Intel, these results were primarily due to the fourth year in a row, the company's net income continued investment in strategic programs. The com pany believes that high investment in R&D is neces *A11 dollar amounts are in U.S. dollars sary for the company to remain competitive and

provide the flow of new products necessary to meet applications. The Intel 386 and Intel 486 fanuhes the continuing demands of the marketplace. include the 386DX microprocessor, the 386SX microprocessor, and the 486DX microprocessor. In 1990, the 20-MHz 386SL microprocessor was More detailed information is available in Tables 1 introduced. It is designed for portable systems and and 2, which appear after "Business Segment Strate incorporates the 386 microprocessor core, cache, and gic Direction" and present corporate highhghts and main memory controllers, bus controller, and a power revenue by region. Information on revenue by distri management unit During April 1991, Intel introduced bution channel is not available. Tables 3 through 5 at its low-end 486SX microprocessor, a 20-MHz version the end of this backgroimder present comprehensive of the 486DX chip without the 486DX's math financial information. coprocessor. The 486SX is targeted primarily at high- end desktop machines but will also be aimed at the entry-level and medium-size LAN server and multiuser markets.

BUSINESS SEGMENT STRATEGIC Intel's i860 microprocessor, a 64-bit reduced- DIRECTION instruction-set computing (RISC) microprocessor, is designed for high-speed multiprocessing systems, technical workstations, and graphics subsystems. In Semiconductors mid-1991, Intel unveiled the i860 XP, an upgrade of the two-year-old i860 chip, which is twice as fast as According to Dataquest, Intel jumped from the posi its predecessor and has 2.5 miUion transistors, making tion of eighth-largest worldwide semiconductor ven it more than twice as large as the older chip. In addi dor in 1989 to fifth-largest in 1990, based on 1990 tion, the i860 XP doubles the data cache of the i860 factory revenue of $3.17 billion. In the MOS digital from 8MB to 16MB and quadruples the instruction market, Intel ranked second with a 9.8 percent market cache from 4MB to 16MB. share based on 1990 factory revenue of $3.16 billion. MOS microcomponents accounted for $2.73 billion, or 86.3 percent, of this amount. MOS memory Microprocessor Peripheral Components devices accounted for $371 million, or 11.8 percent of MOS digital revenue, while MOS logic devices A microprocessor peripheral component is a special- accounted for the final $60 miUion, or 1.9 percent of purpose chip that works with a CPU in managing revenue. selected input/output or other system functions. Peripheral devices, such as graphics coprocessors, control the visual screen display of graphic and text Intel offers microprocessors in three main families: information, while mathematics coprocessors handle the 32-bit Intel 386 and Intel 486 family, which is the high-speed calculations. Other peripheral components latest addition to the line of x86 architecture products; control floppy disk drives, 'Mnchester disk drives, the i860 family of 64-bit central processing tmits keyboards, and printers. Through the use of commu (CPUs); and the i960 family, which is used in embed nications peripherals, computers can operate in net ded control applications and is described in that works and communicate locally and over long section. distances.

The 32-bit family of Intel 386 and Intel 486 Intel's microprocessor peripheral components are microprocessors serves as the "brains" in PCs, as do available for controlling all of these functions and are Intel's earlier 16-bit microprocessors, which include designed to be fully compatible with its microproces the 8086, 8088, and 80286 CPUs. Additionally, the sors. In 1990, Intel announced the 82360SL higher performance of microprocessors in the Intel peripheral unit, the 89C024FT modem chip set, the 386 and Intel 486 famihes has enabled the micro 8SC224 and 8SC060 programmable logic devices, processors to be used in minicomputers, parallel and the Smart Cache for the Intel 386 microprocessor. processing systems, engineering workstations, and The 82360SL peripheral unit contains most of the artificial intelligence and telecommunications apphca- input/output circuitry necessary for an industry- tions. The Intel 386 and Intel 486 microprocessors are standard architecture desktop system. Like the 386SL compatible vidth the earlier 16-bit CPUs and are microprocessor, the unit was designed for portable compatible with software used in office automation computers.

Digital Video Interactive (DVI) technology allows Intel's product line consists of 32-bit microcon applications developers to access a full range of trollers, including the i960 CPUs, 16-bit microcon multimedia capabilities such as compressing video trollers, such as the 8096 and the 80C196, and 8-bit and audio into digital form, combining them with still microcontrollers, such as the 8048 and the 8051. images and graphics, and then storing the resultant application program on CD-ROM disks. The i750 video processor, a very large scale integration (VLSI) The i960 family of processors offers features and chip set that brings motion video, still images, graph performance in variotis configurations to meet varied ics, and audio to desktop systems, was introduced in customer needs. The i960 family includes the i960 1990. It consists of two separate components, the CA microprocessor, the first microprocessor capable 82750PB pixel processor, which compresses and of executing two instructions in one tick of the retrieves information, and the 82750DB display microprocessor's clock. The i960 CA is well suited processor, which controls the display of information. for high-performance embedded apphcations such as the printer controller in laser printers. During 1990, Intel introduced the low-cost i960 SA and i960 SB Memory Components processors, which both feature 32-bit internal perfor mance and 16-bit external data btises. The i960 SB is Memory components are used to store computer pro equivalent to the i960 SA, with the SB containing a grams and data entered during system operation. Intel floating-point unit for high-performance math supplies a broad line of memory components, includ processing. ing EPROMs, flash memories, dynamic random- access memories (DRAMs), and static random-access memories (SRAMs). Software

According to Dataquest, Intel was the top-ranked Intel offers software for microcomputer operating supplier of EPROMs in 1990, based on estimated systems, high-level networking, and developmental revenue of $234.6 million, finishing just ahead of and debug support for OEMs incorporating Intel Advanced Micro Devices. Intel offers 128Kb, 256Kb, microprocessors and microprocessor-based systems and 512Kb EPROMs, in addition to 1Mb, 2Mb, and into their end-user products. 4Mb EPROMs. In 1988, the company introduced its flash memory devices to the marketplace. In 1990, Intel expanded its offerings of flash memory devices Intel markets its iRMX real-time operating system as with the introduction of a 2Mb device. This device is well as the iRMK Real-Time Kernel, an operating easier and faster to update than EPROMs are because system kemel for the Intel 386 microprocessor that is it can be reprogrammed without removal from its used in industrial control applications. Real-time applications. Intel also introduced a flash memory operating systems are used in both embedded and card, designed to serve as a rugged storage medium reprogrammable applications where an ever-changing in small portable computer systems, as well as in operating environment requires continual updating of factory floor, medical, and technical instrumentation system conditions. During 1990, Intel introduced a applications. In addition, the company continues to new version of its 32-bit iRMX-IH real-time operat sell DRAMs and SRAMs, all of which are produced ing system that permits users to run MS-DOS as a for Intel by subcontractors. task while iRMX-m is running. The enhanced ver sion, called IX)S/RMX, supports the use of Microsoft Windows and allows MS-DOS applications to be Embedded Control Products converted to a 32-bit environment and gain access to Embedded control products (microprocessors and 4GB of memory. microcontrollers) are designed to be embedded within an application and to be programmed to control the operation of that application. Embedded control Microcomputer Systems products typically incorporate a CPU, random-access memory, program memory, and input/output circuitry Microcomputer system and module offerings firom on one chip. They are utilized in computer and Intel include microcomputer platforms, as weU as communications systems, automobile control applica more than 150 single-board computer modules that tions, robotics, electronic instrumentation, keyboards, can be used as the building blocks of microcomputer and home video machines. and real-time control systems. All are based on Intel f»11165 ©1991 Dataquest Incorporated October—^Reproduction Prohibited Intel Corporation

components. In 1990, Intel introduced the iSBC Defense Advanced Research F*rojects Agency/Infor 386SX Embeddable PC, a Multibus I board designed mation Science &. Technology Office (DARPA/ISTO) to be embedded within industrial, scientific, and med to advance the state-of-the-art in scalable multicom ical applications, and the iSBC 486/133SE, a puter systems. In September 1990, Intel demonstrated Multibus n board that has a 33-MHz Intel 486 CPU the third of four major Touchstone Program prototype and is designed for high-performance applications. systems. Called Delta System, this prototype is scala Two industry standard architecture (ISA)-compatible ble to over 500 processors, has aggregate peak perfor systems, the Microcomputer Model 402, which mance of over 30 billion floating-point operations per comes with a 25-MHz 486 CPU, and the Model second, -and a new interconnect network based on a 300LPSX-I6, which comes with a 16-MHz 386SX Caltech-designed router chip. Late in 1991, Intel microprocessor, also began shipping during 1990. expects to demonstrate the final Touchstone program prototype, Sigma System, which will comprise more Other system products provided by Intel include per than 2,000 processors and produce peak performance sonal computer enhancement products and mainframe of 150 billion floating-point operations per second. connectivity and networking products. Enhancement products for PCs are add-in cards and components that provide additional processing power, memory, Development Tools and conmiunications capabilities. In 1990, Intel introduced the SatisFAXtion board, a PC fax board Development tools are used by engineers to develop that allows users to fax files directly from their and debug hardware and software for microcomputer- systems to facsimile machines. The company also based systems. Intel developed the first in-circuit announced the NetPort print server, which gives sys emulator (ICE) in 1975. The ICE module can be tem users easy access to printers on Novell networks. substituted for the microprocessor or microcontroller diat is used in the customer's systems, providing an effective way to develop and debug the customer's Intel also sells a line of parallel supercomputers. In designs. In 1990, Intel introduced several emulators early 1990, the company introduced the iPSC/860 for Intel architectures, including the ICE-486. supercomputer based on the i860 microprocessor technology. Intel's iPSC/2 is a parallel supercomputer based on the Intel 386 microprocessor. Further Information

The company's Touchstone Program is a comprehen For further information on Intel's business segments, sive R&D project cosponsored by Intel and the please contact Dataquest's Semiconductors service.

Table 1 Five-Year Corporate Highlights (Thousands of U.S. Dollars)

1986 1987 1988 1989 1990 Five-Year Revenue ,265,011 1,907,105 2,874,769 3,126,833 3,921,274 Percent Change 50.76 50.74 8.77 25.41

Capital Expenditure 154,827 301,530 477,460 422,102 679,546 Percent of Revenue 12.24 15.81 16.61 13.50 17.33

R&D Expenditure 228,250 259,794 318,331 365,104 516,747 Percent of Revenue 18.04 13.62 11.07 11.68 13.18

Number of Employees 18,200 19,200 20,800 21,700 23,900 Revenue ($K)/Employee 69.51 99.33 138.21 144.09 164.07

Net Income 173,165) 248,055 452,922 391,021 650,261 Percent Change 243.24 82.59 (13.67) 66.30

1990 Fiscal Year Ql Q2 Q3 Q4 Quarterly Revenue 894,457 968,301 1,012,441 1,046,075 Quarterly Profit 143,768 170,693 171,924 163,876

Source: Intel Coiporation Amraal Reports and Foims 10-K Dataqaest (October 1991) Table 2 Revenue by Geographic Region (Percent)

Region 1986 1987 1988 1989 1990 North America 60.15 61.19 57.06 56.75 53.96 Europe 26.78 23.48 23.60 22.09 22.07 Japan 8.54 8.94 11.33 10.90 10.21 ROW 4.53 6.39 8.01 10.26 13.76

Source: Intel Corporation Annual Reports and Forms 10-K Dataquest (October 1991)

Intel Overseas Corporation (United States) Intel Puerto Rico hic. (Puerto Rico) 1990 SALES OFFICE LOCATIONS Intel Semiconductor of Canada Ltd. (Canada) Jupiter Technology Inc. (United States) North America—^52 Europe—12 Japan—1 Europe ROW—8 Intel Corporation Italia S.p.A. (Italy) Intel Corporation Ltd. (United Kingdom) Intel Corporation S.A.R.L. (France) Intel Finland OY (Finland) Intel Iberica S.A. (Spain) MANUFACTURING LOCATIONS Intel Semiconductor A.G. (Switzerland) Intel Semiconductor B.V. (Netherlands) North America Intel Semiconductor GmbH (Germany) Intel Sweden A.B. (Sweden) Aloha, Oregon High-volume commodity and logic, 386 microprocessors, logic SRAMs Japan Chandler, Arizona Military microcontrollers, microprocessors Intel Japan K.K. Fokom, California HiUsboro, Oregon Microcomputers, memory boards, systems ROW Las Piedras, Puerto Rico Intel Asia Electronics Inc. (India) Microcomputers, memory boards, systems Rio Rancho, New Mexico Intel AustraUa Pty. Ltd. (Australia) Component production Intel PRC Corporation (China) Santa Clara, California Intel Semicondutores do Brazil LTDA (Brazil) Flash 512K, 1Mb and 4Mb EPROMs, arrays, Intel Semiconductor Ltd. (Hong Kong) bum-in equipment Intel Singapore Technology Ltd. (Singapore) Intel Technology Asia Ltd. (Korea) Europe Intel Technology Far East Ltd. (Taiwan) Leixlip, Ireland PC platforms for European market ALLIANCES, JOINT VENTURES, AND ROW LICENSING AGREEMENTS Jerusalem, Israel VLSI wafer production, 386 microprocessors 1991 Manila, Philippines VLSI component assembly and testing Dialogue and Computer Aided Technologies Penang, Malaysia (CAT) VLSI component assembly and testing Intel signed its first two distributors for the Soviet Union, Dialogue and CAT, which will each market Intel's board- and box-level products. Digital Equipment Corporation (DEC) SUBSIDIARIES Intel entered into an agreement with DEC under which Digital will introduce a new family of per sonal computers using Intel's 80386 and 80486 North America microprocessors. Intel's Computer System Divi Intel Electronics Ltd. (United States) sion will manufacture the network PCs, which are Intel International Inc. (United States) designed to be connected together in an office Intel Investment Ltd. (United States) environment

NMB Semiconductor Inc. Defense Advanced Research Projects Agency The two companies entered into a new supply (DARPA) agreement whereby NMB will turn one of its Intel Scientific Computers (ISC), an internal plants into a flash memory foundry dedicated to start-up company, signed a $7.6 million research Intel. Under the agreement, NMB will manufacture agreement with DARPA to develop a prototype of flash EPROMs and cards for Intel, and will not a system that ultimately wUl contain as many as have any rights to the products. This deal replaces 2,000 processors that are equivalent to CRAY-1 a contract in which Intel and NMB ran into prob power. lems with a DRAM manufacturing agreement IBM Corporation That agreement, in contrast, was based on NMB's Intel signed an agreement with IBM to develop an selling its own DRAMs to Intel for marketing MCA board to utilize DVI for die IBM PS/2 under Intel's name. family. Pacific Bell Pacific BeU signed an agreement with Intel's Net 1988 work and Services Division to market network China Aviation Technology Import Export integration services and equipment in conjunction Corporation with its Data Communications Group. TTie two companies formed Intel China, a joint venture firm that has as its objective to take advan Tartan Laboratories Inc. tage of Intel's advanced microprocessor technol Tartan Laboratories and Intel's Military Division ogy to raise the quaUty of computers in China. signed an agreement by which the two companies will jointly market Tartan's Ada 960MC Compila Siemens AG tion System for the Intel 80960MC processor. The two companies announced the formation of a Tartan's 960MC runs on either Sun or DEC VAX joindy owned corporation, called BiiN, that will workstations running VMS. mani^acture and supply mission-critical informa tion systems. Both Siemens and Intel will hold 50 percent stakes in the company. In late 1989, the 1990 two companies dissolved BiiN after determining it would take too long to achieve an acceptable IBM Corporation return on investment. Intel obtained exclusive marketiag rights to IBM's Parallel Interface (PI) Bus Interface Unit The PI Bus Interface Unit (PBIU) is currently fielded in the IBM's Common Avionics Modules. The M82916, Intel's version of the PBIU, integrates on MERGERS AND ACQUISITIONS a single chip the hardware necessary to design modules and systems based on the FI Bus standard 1991 protocol for parallel backplane buses. LANSystems Inc. Intel acquired the Network Products Division 1989 (NPD) of New York-based LANSystems as part of its ongoing thrust into the market for LAN soft AT&T, Convergent Technologies, Ing. C. Olivetti ware and hardware. NPD will become part of S.p.A., Prime Computer Incorporated Intel's Personal Computer Enhancement DivisioiL Intel annoimced a joint engineering effort with these four companies to create a multiprocessing 1989 version of the UNIX System V Release 4.0 operat ing system for the i860 processor. Jupiter Technology Inc. Intel acquired Jupiter Technology, a supplier of AT&T Microelectronics data communications computers and operating sys AT&T Microelectronics and Intel signed a five- tems. With its line of network-to-network and year agreement to provide OEMs with an array of network-to-user device products, Jupiter Technol products supporting ISDN and LANs available ogy is expected to broaden Intel's offerings in the from a common source. connectivity market.

Harold E. Hughes, Jr. Vice president and chief financial officer KEY OFFICERS Paul S. Otellini Gordon E. Moore Vice president and general manager. Microproces Chairman of the board sor Products Group Andrew S. Grove Ronald J. Whittier President and chief executive officer ^^ce president and general manager. Software Technology Group Craig R. Barrett Executive vice president Albert Y. C. Yu Frank C. Gill Vice president and general manager. Microproces Senior vice president and president, Systems sor Products Group Group David L. House Senior vice president and general manager, Architecture and Applications Group PRINCIPAL INVESTORS Robert W. Reed Senior vice president and general manager. Semi Gordon E. Moore—6.6 percent conductor Products Group Equitable Life Assurance Society—^5.6 percent Leslie L. Vadasz Capital Group Inc.—^5.0 percent Senior vice president and director, Corporate Busi ness Development Michael Aymar Vice president and general manager. Entry Level FOUNDERS Products Group Kenneth B. Fine Dr. Robert N. Noyce Vice president and general manager. Multimedia Dr. Gordon E. Moore and Supercomputing Components Group Dr. Andrew S. Grove

Table 3 Balance Sheet Fiscal Year Ending in December (Thousands of U.S. Dollars) Balance Sheet 1986 1987* 1988 1989 1990 Cash 74,528 629,845 929,712 1,063,734 1,619,648 Receivables 298,378 439,022 506,477 568,709 709,658 Marketable Securities 298,696 50,287 41,388 26,005 165,239 Inventory 197,931 235,527 365,936 347,077 415,433 Other Current Assets 154,124 36,144 126,345 157,348 209,203 Total Current Assets 1,023,657 1,390,825 1,969,858 2,162,873 3,119,181 Net Property, Plants 779,321 891,196 1,122,459 1,284,050 1,657,568 Long-Term Investments 209,195 203,760 421,900 507,669 561,477 Other Assets 67,893 13,003 35,519 39,391 38,082 Total Assets 2,080,066 2,498,784 3,549,736 3,993,983 5,376,308 Total Current Liabilities 374,282 884,841 933,948 921,226 1,313,751 Long-Term Debt 286,600 298,062 479,273 412,480 344,605 Other Liabilities 143,957 39,456 56,461 111,474 126,446 Total Liabilities 804,839 1,222,359 1,469,682 1,445,180 1,784,802 Capital Stock 770,236 736,941 1,087,648 1,165,376 1,572,755 Retained Earnings 504,991 539,484 992,406 1,383,427 2,018,751 Total Shareholders' Equity 1,275,227 1,276,425 2,080,054 2,548,803 3,591,506 Total Liabilities and Shareholders' Equity 2,080,066 2,498,784 3,549,736 3,993,983 5,376,308

*Nimibers for fiscal years 1987-1990 bave been restated to reflect a ile w Sonrce: Intel Coiporatian accounting policy Intel implemented daring fiscal 1988. Annual Reports and Fbnns 10-K Dataquest (October 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending in December (Thousands of U.S. Dollars, except Per Share Data)

Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue 1,265,011 1,907,105 2,874,769 3,126,833 3,921,274 U.S. Revenue 760,895 1,166,943 1,640,216 1,774,585 2,115,957 Non-U.S. Revenue 504,116 740,162 1,234,553 1,352,248 1,805,317 Cost of Sales 860,680 1,043,504 1,505,925 1,720,979 1,930,288 R&D Expense 228,250 259,794 318,331 365,104 516,747 SG&A Expense 311,340 357,871 456,200 483,436 615,904 Capital Expense 154,827 301,530 477,460 422,102 679,546 Pretax Income (174,634) 287,886 629,062 583,021 986,261 Pretax Margin (%) (13.80) 15.10 21.88 18.65 25.15 Effective Tax Rate (%) - 14.00 28.00 33.00 34.00 Net Income (173,165) 248,055 452,922 391,021 650,261 Shares Outstanding, Millions 175,538 180,358 180,437 188,778 202,911 Per Share Data Earnings (0.99) 1.38 2.51 2.07 3.20 Dividend - - - - - Book Value 7.26 7.08 11.53 13.50 17.70

Source: Intel Corporation Annual Reports and Fonns 10-K Dataquest (October 1991)

Table 5 Key Financial Ratios Fiscal Year Ending in December Key Financial Ratios 1986 1987 1988 1989 1990 Liquidity Current (Times) 2.73 1.57 2.11 2.35 2.37 Total Assets/Equity (%) 163.11 195.76 170.66 156.70 149.70 Current Liabilities/Equity (%) 29.35 69.32 44.90 36.14 36.58 Total Liabilities/Equity (%) 63.11 95.76 70.66 56.70 49.70 Profitability (%) Return on Assets (8.32) 9.93 12.76 9.79 12.09 Return on Equity (13.58) 19.43 21.77 15.34 18.11 Profit Margin (13.69) 13.01 15.76 12.51 16.58 Other Key Ratios R&D Spending % of Revenue 18.04 13.62 11.07 11.68 13.18 Capital Spending % of Revenue 12.24 15.81 16.61 13.50 17.33 Employees 18,200 19.200 20,800 21,700 23,900 Revenue ($K)/Employee 69.51 99.33 138.21 144.09 164.07 Capital Spending % of Assets 7.44 12.07 13.45 10.57 12.64

Source: Intel Coiporation Annual Repoits and Fonns 10-K Dataquest (October 1991)

BACKGROUND AND OVERVIEW The ITT Corporation (ITT) was founded by Sosthenes Behn in 1920 as the International Telephone and Telegraph Company. It was based in the Caribbean at that time. In 1924, ITT took over the Spanish telephone network and thus started its penetration into European markets. A policy of intense Europeanization and consolidation followed, particularly with ITT's 1925 purchase of the European marketing and research facilities of Western Electric Company. By the beginning of World War II, ITT had established a presence in every West European country except Finland. ITT established operations in Finland in 1954. World War n halted the Company's expansion plans. In 1945, ITT began rebuilding its networks abroad and developing new products. One new product was a telephone switching system, Pentaconta, that was adopted throughout the world. In 1960, Harold S. Geneen became president of ITT. Under his guidance, the Company's structure, management, and image changed to such an extent that by the end of the 1960s, ITT was a different organization. It had diversified into numerous product lines, including industrial equipment, services, natural resources, insurance, automotive products, telecommunications, and consumer products. The Company's planning, financial reporting, and control systems were modified accordingly. In a 1971 consent decree following the Company's acquisition of the Hartford Fire Insurance Company in the United States, ITT agreed to a reduction in certain assets and 10-year restrictions on fvirther acquisitions.

Operations ITT is a diversified company made up of nine business segments, automotive products, electronic components, fluid teciinology, defense technology, insurance finance, communication and information services, hotels and community development, pulp, and timber. Half of its 1987 sales of $17.4 billion came from insurance and financial services. The rest includes hotels, auto parts, defense electronics, and paper products. In recent years, the Company has sold off all or part of 112 companies and the number of employees has decreased from 348,000 in 1980 to 120,000 in 1987. These changes are part of the asset redevelopment program that began in 1979. The intent of this program was to divest nonstrategic businesses, focus more sharply on selected. industries, streamline operations, and reduce debt. The proceeds from the redevelopment program have provided working capital needs and expansion of the remaining businesses. This has made possible the reduction of the 1987 year-end ratio of debt to total capitalization of 27 percent, the lowest in more than 25 years. Additionally, proceeds are being used for a $10 million share common stock repurchase program implemented by the Company during 1987.

In 1987, ITT's non-U.S. sales accounted for approximately 44 percent of the total Company sales. Western Europe was by far the largest non-U.S. market, with 1987 sales reaching $3,342 million, or 39 percent of the total sales. Table 1 shows ITT revenue by geographic area.

Table 1 ITT Corporation Revenue by Geographic Segment (Millions of U.S. Dollars)

2M5. 1986 1987 ITT and Consolidated Subsidiaries United States $ 4,393 $ 4,609 $ 4,788 Western Europe 1,825 2,572 3,342 Canada and Other 345 415 421

Subtotal $ 6,563 $ 7,596 • $ 8,551

Insurance and Finance United States $ 6,797 $ 8,648 $ 9,846 Western Europe 1,058 683 841 Canada and Other 245 510 287

Subtotal $ 8,100 $ 9,841 $10,974

Total $14,663 $17,437 $19,525

Source: ITT Corporation 1987 Annual Report November 1988

Semicomiuctor Facilities ITT has semiconductor facilities worldwide. The locations and brief descriptions of these facilities are presented in Table 2.

Table 2 ITT Corporation SemioMxluctor Facilities

Lawrence. Massachusetts. U.S.A. Size; 8,000 square meters Number of employees: 520 Year established: 1962 Products/technologies: Discretes; wafer fabrication, assembly, and testing Wafer outs: 8,000/month Wafer size: 3 inches gh^jl^Qn. Cgni^gctAcut;, TJ,^,k, Size: 4,000 sqtiare meters Number of employees: 200 Year established: 1983

Products/technologies: Integrated circuits; wafer fabrication, assembly, and testing (In 1985, the plant was converted to serve the merchant market—class 10 operation with NMOS and CMOS (p-well) processes.) Wafer outs: 10,000/month Wafer size: 4 inches

Colmar. France Size: 4,000 square meters Number of employees: 350 Year established: 1966 Products/technologies: MOS and bipolar ICs, discretes; assembly Wafer outs: No wafer fabrication Wafer size: Not applicable Freiburg. West Germany Size: 40,000 square meters Number of employees: 1,400 Year established: 1952, extension completed in 1983 Products/technologies: MOS and bipolar ICs and discretes; assembly and testing Wafer outs: 25,000/month Wafer size: 3, 4, and 5 inches

(Continued)

Table 2 (Continued) rrr Corporation Semiconductor Facilities

Nuremberg, West Germany Size: 4,000 square meters Ntunber of employees: 300 Year established: 1961 Products/technologies: Discretes; assembly and testing Wafer outs: 10,000/month Wafer size: 4 and 5 inches Latina. Italy Size: 3,000 square meters Number of employees: 150 Year established: 1981 Products/technologies; Discretes; assembly and testing Wafer outs: No wafer fabrication Wafer size: Not applicable

Source: Dataquest November 1988

Eur(^)ean Semiconductor Activities ITT's European semiconductor revenue increased from $215 million in 1986 to $243 million in 1987. A more detailed breakdown is given in Table 3. Because ITT's worldwide semiconductor operations are headquartered in Europe, Dataquest has, for this profile, included the Company's worldwide semiconductor revenue, which is shown in Table 4. ITT's Semiconductors Group employs 2,800 people, 150 of whom are involved in marketing. Only 500 employees work at its two U.S. plants, and the rest are based in Europe at Latina (Italy), Colmar (France), Nuremberg (West Germany), and Freiburg (West Germany). The group's policy is to concentrate design and manufacturing of telecommunications devices in the United States and products for the consumer industry in Europe. Since all the plants now use the same 1.5-micron technolo©^, they are geared to operate as second sources for each other if needed. Geographically, about 70 percent of ITT's semiconductor sales are in Europe; approximately 15 percent are in the United States; and the remaining 15 percent are in Japan and the rest of the world.

Table 3 rrr Corporation Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1994 1995 1996 1997

Total Semiconductor $126 $171 $185 $215 $243

Total Integrated Circuit $ 61 $ 87 $ 95 $115 $132 Bipolar Digital 0 0 0 0 0 MOS 33 53 57 69 99 Linear 28 34 38 46 33

Total Discrete $ 65 $ 84 $ 90 $100 $111 Transistor 15 19 22 36 39 Diode 50 65 68 64 72 Thyristor 0 0 0 0 0 Other 0 0 0 0 0

Total Optoelectronic Source: Dataquest November 1988 Table 4 ITT Corporation Estimated Worldwide SemiconductcH- Revenue by Product Line (Millions of U.S. Dollars) 1993 1994 1985 1986 1987

Total Semiconductor $185 $250 $270 $312 $357

Total Integrated Circuit $ 90 $125 $140 $168 $197 Bipolar Digital 0 0 0 0 0 MOS 56 80 90 107 146 Linear 34 45 50 61 51

Total Discrete $ 95 $125 $130 $144 $160 Transistor 26 36 38 53 57 Diode 69 89 92 91 103 Thyristor 0 0 0 0 0 Other 0 0 0 0 0

Total Optoelectronic Source: Dataquest November 1988

The Company's strategy is to be only in those product areas where it can make a strong impact on the market. That is why the Company withdrew from optoelectronics and sold its memory plant at Footscray, England. ITT Semiconductors sells 80 percent of its products on the merchant market, and 20 percent in-house. However, each division of ITT buys competitively from all suppliers, so the semiconductor group does not enjoy a privileged position.

The Company is hoping that the sale of its telecommunications activities to the new Alcatel consortium will bring in more business, since the new consortium has only a small activity in semiconductors. ITT retains a 37 percent interest in the joint-venture company called Alcatel NV. m Semiconductor Organization The reporting structure of ITT Semiconductors is shown in Figure 1.

Figure 1 ITT Semiconductors Organization Chart

Components Europe and Semiconductors Worldwide Group (Headquarters in Freiburg, West Germany)

ITT Semiconductors Worldwide (Headquarters in Freiburg, West Germany)

1 1 U.S. Division Continent al Europe (Lawrence, Massachusetts) (Frieburg, Wejs t Germany) (Shelton, Conneticut) Freiberg — (West Germany) _ Nuremberg (West Germany) Colmar (France) Latina (Italy)

D01402-1 Source: Dataquest November 1988

Highlights of recently published information on ITT's semiconductor-related activities include the following: • In February 1988, ITT Cannon, United Kingdom, invested more than £1 million in production line and quality control facilities for telecommunications interconnect products. The Company has been working with British Telecom and suppliers on new product specifications and standards. • In January 1988, ITT Semiconductors released a pair of ICs (the SAF 1091 and 1092) that can be used in the design of programmable speedometers and mileage indicators in cars. The system can also be adapted for use with a digital dashboard display. • In October 1987, Intermetall GmbH released a new controller called FP (fast processor). It is a standard macrocell that is a microcontroller core for use with any of the Company's digital signal processors. • In October 1987, ITT sold its remaining 24 percent stake in STC PLC to Northern Telecom for $730 million. This means that ITT's presence in the world telecommunications market is now reduced to its investment in Alcatel NV, a joint venture with the French CGE and two smaller investors. • In October 1987, it was announced that Intermetall GmbH will henceforth design and lay out all new circuits so that they can be fabricated in CMOS technology with structures as small as 0.8 micron—part of the Company's strategy to keep ahead of its competitors in consumer product ICs. • In June 1987, ITT joined other U.S. multinationals and pulled out of South Africa. It sold its subsidiary, Alfred Teves Engineering SA Ltd., and announced the future sale of its minority holding in South African telephone directory and cable businesses.

OUTLOOK With the consumer market as its main focus, ITT Semiconductors is pursuing a carefully targeted strategy that is paying off, despite the volatility of the semiconductor market as a whole. By specializing in signal processors and digital television devices, the Company has set itself at the leading edge of VLSI technology. Thanks to its narrow product range, its priority to automization of production lines, and its refusal to shift assembly to Asia (thus maintaining close interface between its designers, manufacturing engineers, and customers), ITT Semiconductors has positioned itself strongly in the market.

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LSI Logic Corporation 1551 McCarthy Boulevard Milpitas, California 95035 Telephone: (408) 433-8000 Fax: (408) 434-6457 Dun's Number: 01-244-4253 Date Founded: 1981

CORPORATE STRATEGIC DIRECTION R&D expense increased over $7 million to $60.2 miUion in 1990. The company attributes the Founded in 1981, LSI Logic Corporation designs, increase mainly to the development of advanced develops, manufactures, and markets integrated cir products. LSI Logic is committed to technological cuit (IC) products and provides computer-aided leadership in the ASIC, RISC, and chip set markets design (CAD) and technology services and tools and anticipates investing approximately 9 to 11 per based on application-specific integrated circuit cent of its revenue in R&D in future years. (ASIC) technologies. The company's products and services are marketed primarily to manufacturers LSI Logic operates in three major regions: North in the electronic data processing (EDP), military/ America, Europe, and the Far East, with the majority aerospace, telecommunications, and consumer elec of its sales occurring in North America. The company tronics industries. The company's key product lines markets its products and services through its world are ASICs, which include gate arrays and cell-based wide direct sales and marketing organization and circuits; 32-bit MIPS and SPARC reduced- through independent sales representatives and distri instruction-set computing (RISC) microprocessors butors. LSI Logic employed approximately 4,400 and peripherals; and application-specific standard people worldwide at the end of 1990. products (ASSPs) consisting of chip sets and graphics products used in IBM-compatible personal com More detailed information is available in Tables 1 and puters. In addition, LSI Logic offers a growing line of 2, which appear after "Business Segment Strategic video compression and digital signal processing Direction" and present corporate highlights and (DSP) products. AU product areas are supported by revenue by region. Information on revenue by distribu the company's Concurrent Modular Design Environ tion channel is not available. Tables 3 through 5 at the ment (C-MDE) software tools, submicron CMOS and end of this backgrounder present comprehensive BiCMOS processing technologies, and high-pin-count financial information. packaging and test capabilities.

LSI Logic's revenue growth in 1990 outpaced that of the semiconductor industry. The company's revenue BUSINESS SEGMENT STRATEGIC increased nearly 20 percent to $655.5 million*, while DIRECTION worldwide semiconductor industry revenue increased 2 percent, according to DataquesL However, a net loss of $33 million was also reported for fiscal 1990, ASICs primarily as a result of a $44 million charge to cost of A metal programmable array, also known as a gate revenue during the fourth quarter of 1990. The pri array, is a matrix of uncommitted logic functions mary elements of this charge were the writedown of contained on a single chip of silicoiL The gate array certain manufacturing and production equipment at remains uncommitted through most of its complex the company's United Kingdom wafer fab facility processing cycle and is programmed or customized plus the write-off of goodwill in coimection with LSI only in the last steps of the wafer fabrication process. Logic's 1988 acquisition of Video Seven Inc., a This enables the manufacturer to produce large quan graphics board company. tities of uncommitted gate arrays, called base arrays, and benefit from the economies of volume chip *A11 dollar amounts are in U.S. dollars. production.

For the past several years, LSI Logic has consistently In October 1990, LSI Logic's SPARC Division ranked among the top gate array suppliers in the introduced its SparKIT, a chip set that enables sys world. According to Dataquest, LSI Logic ranked tems designers to clone the SPARCstation 1 worksta third in the total gate array market in 1990 with a tion from Sun Microsystems. The company also 12.0 percent market share, based on estimated factory offers ASIC cores for SPARC embedded applications. revenue of $464 million. According to Dataquest, the company ranked first in the MOS gate array market with factory revenue of $461 million and an The MIPS Division at LSI Logic recently introduced 18.0 percent market share and sixth in the BiCMOS a five-chip family for the MIPS architecture. Called gate array market with factory revenue of $3 million the MipSET, this chip set can reduce the MIPS in 1990. LR3000-based workstation design time and eliminate LR3000 noise and timing problems. The MipSET, which is available in 20- and 25-MHz speeds, can During 1991, LSI Logic introduced the LCA200K replace 40 or more standard logic circuits. In late Compacted Array Turbo gate array family that boasts 1990, the company introduced an embedded version usable gate counts of up to 200,000. The company is of its 32-bit MIPS RISC microprocessor, called the introducing new libraries, proprietary tools, packag LR33(X)0 Self-Embedding processor. This processor ing options, and unique power management alterna was designed for use in highly integrated, tives to support these products. The company also performance-oriented applications such as laser infinoduced the LEA200K Embedded Array series. printers, X ^^dow terminals, disk controllers, pro Embedded arrays are masterslices containing tocol converters, and military/avionic products. LSI customer-defined memory functions such as random- Logic also introduced the Ngine module, a high- access memories (RAMs), read-only memories performance subsystem that offers system designers a (ROMs), computer-aided manufacturing (CAMs), and proven central processing unit (CPU) implementation first-in/first-outs (FIFOs) in addition to uncommitted and simplified interface, thus minimizing system gate logic. Both the LCA200K and LEA200K development time and risk. products are fabricated using advanced 0.7-micron drawn channel-length high-performance CMOS (HCMOS) technology. The company also offers 16-bit microprocessor products that implement the MIL-STD-1750A The company's cell-based technology allows the cus instruction set and a family of high-speed digital tomer to combine standard cells, memories such as signal and image processing devices that perform a static RAM, metal programmable ROM, static mul- wide variety of common DSP operations. These com tiport RAM, and other dedicated very large scale ponents are designed to operate in standalone or integration (VLSI) building blocks called megacells multiprocessing configurations. onto a single chip. LSI Logic's cell-based products allow for up to 2(X),000 equivalent gates of integra tion on a single chip, which through combinations of Software these various structures can provide the user with optimal solutions to digital design problems. LSI Logic also offers a proprietary software for the CAD market. The company's Modular Design Environment (MDE) software is a computer-aided Microprocessors engineering (CAE) design system consisting of a core design software module and a number of other During 1990, the company further expanded empha software programs that improve the circtiit designer's sis on its microprocessor product families. LSI Log productivity. During 1990, the company debuted an ic's principal microprocessor product focus is on the advanced software methodology for ASIC design two 32-bit RISC microprocessor architectures that known as C-MDE. C-MDE software is a graphic and have met with broad market acceptance. These are icon-based suite of design tools that are interactive the MIPS and SPARC architectures, which were and provide the designer with the capability of per originally developed by MIPS Computer Systems Inc. forming design activities based on a single unified and Sun Microsystems Inc., respectively. Both of database. LSI Logic expects to make C-MDE availa- these architectures are designed to facilitate an "open Ue during ifae second half of 1991. In addition, tibe system" design. company has coupled key elements of its software programs with software products offered by selected LSI Logic has made a number of new product CAE companies, thereby increasing the potential cus annoimcements in the microprocessor field recently. tomer base available to LSI Logic.

In mid-1990, LSI Logic demonstrated a prerelease products can be tailored to a particular customer's version of a VHDL-based CAD software suite that is specifications. intended to expand the company's ASIC technology capabilities by further automation of the IC design Headland Technology also develops and markets process. Called "Silicon 1076," this software is high-performance video graphics technology board- intended to allow a chip designer to move from based products under its \^deo Seven label prin product concept to the layout of the final chip design cipally for business and professional PC users. and mask generation piu^uant to a more automated According to Dataquest, Headland ranked fourth in and integrated procedure than is currently available the worldwide low-end PC graphics board market in from most other semiconductor design software 1990 with an estimated 7.3 percent market share, products. based on estimated revenue of $45.6 million. Head land's graphic and video interface products enable IBM and IBM-compatible PC users to generate high- Headland Technology resolution monochrome or color text and graphics on the monitor screea While supporting industry stan During 1989, LSI Logic's subsidiaries, previously dards, the Yideo Seven lines of products offer cus known as G2 Incorporated and Video Seven Inc., merged into one subsidiary company, which changed tomers the opportunity to take advantage of new its name to Headland Technology Inc. Headland's levels of performance for existing IBM and IBM- products, which are based on the product lines of the compatible PC hardware and software. two predecessor companies, are sold to manufacturers and in certain instances resellers, of IBM and IBM- compatible personal computers. Further Information For further information about the company's business Headland's IC products consist primarily of highly segments, please contact either Dataquest's Semicon integrated graphics chips and logic chip sets. Through ductor industry service or Graphics and Displays use of LSI Logic's MDE software, tb&se Headland industry service.

Table 1 Five-Year Corporate Highlights (Thousands of U.S. Dollars)

1986 1987 1988 1989 1990 Five-Year Revenue .94,335 262,131 378,908 546,870 655,491 Percent Change 34.89 44.55 44.33 19.86

Capital Expenditure 63,398 138,993 100,961 114,494 61,998 Percent of Revenue 32.62 53.02 26.65 20.94 9.46

R&D Expenditure 21.558 28,919 36,964 52,457 60,196 Percent of Revenue 11.09 11.03 9.76 9.59 9.18

Number of Employees 1,821 2,322 3,329 3,700 4,400 Revenue ($K)/Employee 106.72 112.89 113.82 147.80 148.98

Net Income 3,855 11,340 24,702 (24,892) (32,995) Percent Change 194.16 117.83 (200.77) (32.55)

1990 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue 139.072 159,698 172,471 184,250 Quarterly Profit 2,096 6,203 4,189 (45,483)

Souce: LSI Logic Animal Repons and Fomis 10-K Dataquest (October 1991)

Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 North America 85.00 81.00 77.00 75.00 72.00 Europe 13.00 14.00 12.00 13.00 14.00 Japan 2.00 5.00 11.00 12.00 14.00

Somce: LSI Logic Ammal Repoits

1990 SALES OFMCE LOCATIONS ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS North America—^31 Europe—9 Japan—2 1990 ROW—3 Synopsys Inc. Synopsys granted a license to LSI Logic that will allow LSI to install Synopsys' software in its design centers and incorporate Synopsys' logic MANUFACTURING LOCATIONS synthesis tools into its Silicon 1076 VHDL-based design environment

North America Sun Microsystems Inc. LSI Logic signed a licensing agreement with Sun Edmonton, Alberta, Canada permitting LSI to sell worldwide the ASIC devices developed for the original SPARCstation I Fremont, California workstation.

Milpitas, California NHK In an agreement with NHK, Japan's state broad Sydney, Nova Scotia, Canada casting authority, LSI Logic's Japanese subsidiary, LSI Logic K.K., will license NHK's Muse decoder system. LSI Logic K.K. intends to use die system Europe to enter the Japanese HDTV market in collabora tion with a Japanese television manufacturer and Braunschweig, Germany further develop technology for use in U.S. and European markets when they are established.

Japan Opus Systems The two companies announced an agreement Tsukuba whereby Opus will design a SPARC-compatible workstation and port the Sun Microsystems operat ing system to it, using the LSI SparKIT chip set LSI will then license the design to would-be SPARC doners.

SUBSIDIARIES Vantage Analysis Systems Inc. LSI Logic's proprietary Silicon 1076 product will incorporate VHDL simulation tools from Vantage. North America Under the terms of the agreement. Vantage's com Headland Technology Inc. (United States) prehensive simulation tools will be available in all LSI Logic Corporation of Canada, Inc. (Canada) of LSI's design centers worldwide.

Europe 7959 LSI Logic (Europe) pic (United Kingdom) Synopsys Inc. LSI and Synopsys entered into a cooperative Japan agreement for LSI to develop and market certified logic synthesis libraries for the Synopsys Design LSI Logic K.K. (Japan) Compiler. As part of the agreement, LSI will Nihon Semiconductor Inc. (Japan) purchase Synopsys synthesis tools for internal use.

7955

Crosscheck Technology Corporation KEY OFFICERS Under terms of a technology license and develop ment agreement, LSI will license patented test structures from Crosscheck that will embed into Wilfred J. Corrigan the base-silicon cell structure of high-density gate Chairman and chief executive officer arrays. Crosscheck will also supply a test genera George D. Wells tion package running on Sun workstations that will President and chief operating officer be integrated into LSI's gate array layout software. Cyril F. Hannon Imaging Technology Inc. (ITI) Executive vice president. Worldwide Operations The two companies signed a marketing and tech nology agreement under which m will design a Robert Blair new generation of imaging products using LSI's Senior vice president, ASIC Marketing L64200 series of real-time image-processing chips. Brian L. Halla Sun Microsystems Inc. Senior vice president. Microprocessor and DSP Sun gave LSI worldwide licensing rights to Products manufacture, market, modify, and enhance MPUs, related components, software, and systems using James S. Koford the SPARC architecture. Senior vice president, ASIC Engineering, and chief technical officer

MERGERS AND ACQUISITIONS PRINCIPAL INVESTORS 1989 Wilfred J. Corrigan—11.0 percent G-2 Incorporated and Video Seven Inc. LSI merged the activities of G-2 and \^deo Seven to form Headland Technology, which wiU produce logic chip sets and graphics for PCs. FOUNDERS 1988 Wilfred J. Conigan Video Seven Inc. Robert Walker LSI acquired \^deo Seven, a designer, manufac William O'Meara turer, and marketer of graphics boards. Mitchell D. Bohn

Table 3 Balance Sheet Fiscal Year Ending in December (Thousands of U.S. DoUars)

Balance Sheet 1986 1987 1988 1989 1990 Cash 197,451 195,583 187,975 120,035 140,270 Receivables 44,502 59,031 101,640 105,839 114,978 Marketable Securities 5,525 71,715 15,643 32,867 18,417 Inventory 26,636 51,195 112,225 114,918 124,831 Other Current Assets 6,432 5,006 7,245 18,193 40,385 Total Current Assets 280,546 382,530 424,728 391,852 438,881 Net Property, Plants 159,058 290,479 334,510 349,348 328,707 Other Assets 11,800 26,389 28,261 23,961 16,418 Total Assets 451,404 699,398 787,499 765,161 784,006 Total Current Liabilities 32,150 72,172 130,338 150,808 192,797 Long-Term Debt 106,908 187,909 191,857 204,443 189,795 Other Liabilities 11,680 14,862 21,730 17,826 27,092 Minority Interest 49,677 116,225 111,970 94,735 98,583 Total Liabilities 200,415 391,168 455,895 467,812 508,267 Converted Preferred Stock 0 0 0 0 0 Common Stock 196,380 401 405 411 421 Other Equity 18,310 260,190 258,858 249,489 260,864 Retained Earnings 36,299 47,639 72,341 47,449 14,454 Total Shareholders' Equity 250,989 308,230 331,604 297,349 275,739 Total Liabilities and Shareholders' Eqtiity 451,404 699,398 787,499 765,161 784,006

Souice: LSI Logic Coipoiation Annual Reports and Fbnns 10-K Dataquest (October 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending in December (Thousands of U.S. Dollars, except Per Share Data)

Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue 194,335 262,131 378,908 546,870 655,491 U.S. Revenue 172,372 223,859 332,644 499,308 579,564 Non-U.S. Revenue 21,963 38,272 46,264 47,562 75,927 Cost of Sales 129,150 168,403 235,671 424,544 487,759 R&D Expense 21,558 28,919 36,964 52,457 60,196 SG&A Expense 40,200 55,726 80,145 99,885 117,318 Capital Expense 63,398 138,993 100,961 114,494 61,998 Pretax Income 8,535 17,294 31,202 (34,863) (18,521) Pretax Margin (%) 4.39 6.60 8.23 (6.38) (2.83) Effective Tax Rate (%) 48.00 41.00 42.00 (14.00) (89.00) Net Income 3,855 11,340 24,702 (24,892) (32,995) Shares Outstanding, Millions 40,191 40,674 41,133 41,305 42,063 Per Share Data Earnings 0.10 0.28 0.60 (0.60) (0.78) Dividend - - - - - Book Value 6.24 7.58 8.06 7.20 6.56

Source: LSI Logic Coiporation Animal Rq)orts and Ftems 10-K Dataquest (October 1991)

Table 5 Key Financial Ratios Fiscal Year Ending in December Key Financial Ratios 1986 1987 1988 1989 1990 Liquidity Current (Hmes) 8.73 5.30 3.26 2.60 2.28 Total Assets/Equity (%) 179.85 226.91 237.48 257.33 284.33 Current LiabiUties/Equity (%) 12.81 23.41 39.31 50.72 69.92 Total Liabilities/Equity (%) 79.85 126.91 137.48 157.33 184.33 Profitability (%) Return on Assets 0.85 1.62 3.14 (3.25) (4.21) Return on Equity 1.54 3.68 7.45 (8.37) (11.97) Profit Margin 1.98 4.33 6.52 (4.55) (5.03) Other Key Ratios R&D Spending % of Revenue 11.09 11.03 9.76 9.59 9.18 Capital Spending % of Revenue 32.62 53.02 26.65 20.94 9.46 Employees 1,821 2,322 3,329 3,700 4,400 Revenue ($K)/Employee 106,72 112.89 113.82 147.80 148.98 Capital Spending % of Assets 14.04 19.87 12.82 14.96 7.91 Source: LSI Logic Coiparation Annual Reports and Forms 10-K Dataquest (October 1991)

Marconi Electronic Devices Limited

BACKGROUND AND OVERVIEW Marconi Electronic Devices Limited (MEDL) was formed in 1980 as part of a major reorganization of the GEC/Marconi Group. It now comprises all the semiconductor activities within the group—consolidating AEI Semiconductor (specializing in rectifiers and high-power discrete components), GEC Semiconductor (specializing in MOS integrated circuits), and the joint semiconductor activities of Marconi Space and Defense Systems. The following is a list of MEDL operational sites worldwide:

• Doddington Road, Lincoln, United Kingdom VLSI CMOS IC manufacturing RF, microwave, and millimeter-wave active devices, components, and subsystems manufacturing Headquarters of Marconi Electronic Devices Limited • Carholme Road, Lincoln, United Kingdom Power semiconductor devices, stacks, and assembly manufacturing • East Lane, Wembley, United Kingdom LSI computer-aided design (CAD) center • Hargreaves Road, Swindon, United Kingdom High-volume, thick-film microelectronics circuits for the telecom munications and industrial markets • The Railway Triangle, Portsmouth, United Kingdom Custom-designed, thick-film hybrid and microelectronic circuits for defense and specialized industrial markets • Radford Crescent, Billericay, United Kingdom - Fourier transforms, microwave and millimeter-wave materials, passive components, and waveguide elements • Marconi Electronic Devices, Inc., Hauppauge, New York Sales and marketing, IC design, power, microsystem, and microwave organizations

• Marconi Electronic Devices, S.A., Asnieres, France Sales and marketing, IC design, power, microsystem, and microwave organizations Marconi Electronic Devices also has a U.S. facility called CTI in Farmingdale, New York, working with hi-rel custom-designed, thick-film microelectronics for defense applications. The Company's Europe and United States-based organization is divided into four manufacturing divisions: • Integrated circuits • Microwave devices • Power semiconductors • Microsystems Table 1 shows MEDL's turnover by business division. Table 1 Marconi Electronic Devices Limited Turnover by Business Division (Percent of Revenue) 1987-1988 1986-1987

Microsystems 28% 26% CTI 26"^ 24% IC 18% 19% Microwave 17% 16% Power 11% 15%

Note: Some of the IC, power, and microwave sales were captive to CTI. Source: MEDL

IC Division The IC Division has now been centralized. MEDL has changed the organization to a single business group covering both IC product lines: silicon on sapphire (SOS) for space and defense, and CMOS for industrial and telecommunications markets and applications. Formerly Telecoms/Industrial and Space/Defense, the new single operational group manufactures products in VLSI CMOS for the communications industry and provides SOS and VLSI CMOS for space and defense applications.

Microwave Division The Microwave Division has developed a comprehensive range of high-frequency products for electronic warfare, communications, and markets throughout the world-

Power Semiconductor Division The Power Semiconductor Division manufactures fast-switching thyristors, high- voltage rectifiers, bipolar-switching transistors, and tracker balls.

Microsystems Division The Microsystems Division is involved in the design, development, and manufacture of custom and standard microsystems both for the military/avionics and industrial/ commercial markets.

MEDL REVENUE Dataquest estimates that MEDL revenue for 1987 was $47 million worldwide, of which $37 million was from Europe. The Company is predominantly a domestic supplier, but has recently made efforts to penetrate niche markets in the United States. It also markets some power products in Asia. Tables 2 and 3 show Dataquest's estimates for MEDL European and worldwide revenue, respectively. Table 2 Marconi Electronic Devices Limited Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1984 1985 1986 1987 .al Semiconductor $21 $26 $30 $32 $37 Total Integrated Circuit $11 $15 $19 $17 $21 Bipolar Digital 0 0 0 0 0 MOS 11 15 19 17 21 Linear 0 0 0 0 0 Total Discrete $10 $11 $11 $15 $16 Transistor 2 2 2 3 4 Diode 3 3 3 4 4 Thyristor 3 3 3 8 8 Other 2 3 3 0 0

Source: Dataquest December 1988

Table 3 Marconi Electronic Devices Limited Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1983 19?4 19?5 1996 1987

:al Semiconductor $25 $31 $35 $43 $47

Total Integrated Circuit $12 $16 $20 $21 $27 Bipolar Digital 0 0 0 0 0 MOS 12 16 20 21 27 Linear 0 0 0 0 0

Total Discrete $13 $15 $15 $22 $20 Transistor 3 3 3 4 5 Diode 4 4 4 5 5 Thyristor 3 4 4 9 10 Other 3 4 4 4 0

Source: Dataguest December 1988

PRODUCTS AND MARKETS SERVED In 1987, MEDL's activities appeared to be evenly spread among its IC, Power Semiconductor, Microwave, and Microsystems Divisions. The Company also manufactures some power transistors, microwave discretes, and hybrid components. Much of the consumption is internal by companies within the GEC organization, particularly for telecommunications and military applications. The following is a list of MEDL's main product lines:

• Standard products manufactured in CMOS Telephone dialers Telephone exchange products Industrial PWM generator

Databuse products—1553

Speech scramblers

• Standard Products in SOS for radiation-hard applications in space 64K SRAM Databuse 1553 - Viper/1750/2901 microprocessors Digital speech synthesizer (DSP) chips MEDL has won a contract from the United States Air Force for products to be incorporated into the F16 and F18 aircraft. The Company is intent on extending its business base in the United States, building on its niche-oriented product and its stable business base in the United Kingdom.

Semicustom CMOS Products MEDL's semicustom CMOS products are as follows: • 3-micron, double-level metal gate arrays: 1,000 to 3,800 gates • 2-micron, double-level metal gate arrays: 3,900 to 10,000 gates • 3-micron, analog/digital gate arrays with analog cells covering op-amps to D/A and A/D converters on double-poly, double-metal 10 volt CMOS • Standard cell on 3-micron, double-poly, double-metal 10-volt CMOS— MACROMOS, with digital cell library-BITMOS and analog cell library- ANAMOS (The analog cell library includes converter and full-filter capability.)

Semicustom SOS Products MEDL's semicustom SOS products are as follows:

• 3-micron, double-level metal gate arrays: 2,400 to 4,000 gates • Standard cell 3-micron MACROMOS with digital library and analog functions

• 1.5-micron SOS to be developed next

Discrete Products Discrete devices include the following: • Large-area, high-power, high-voltage products for electric traction and power transmission projects • Fast-switching thyristors and transistors with fast-recovery diodes for chopper and inverter duty • High-current devices for mining, electrochemical, motor drive, environmental control, and welding applications • Asymmetrical thyristors and fast epitaxial diodes for specialized high-frequency circuits

New Products The Company's new products are as follows:

• Video speed CMOS convertors • Standard filter chips MEDL's Microwave Division designs, develops, and manufactures an extensive range of Schottky barrier, backward, PIN, varactor, and Gunn diodes; transistors; microwave integrated circuit (MIC) components; and subsystems. These products operate at frequencies that range from 10 MHz to 100 GHz in ECM, radar, and communications systems. Maximizing the in-house capability in solid-state device and thick-film technology, the MIC facility uses advanced CAD and automatic test equipment (ATE) to produce a wide range of microwave and millimeter-wave components. These include the following: Single-ended balanced/double-balanced image rejection and harmonic mixers (500 MHz to 100 GHz) Small-signal bipolar amplifiers (50 MHz to 18 GHz) GaAs FET amplifiers (50 MHz to 18 GHz) High-stability Gunn oscillators (4 GHz to 100 GHz) Active/passive limiters

Alternators, modulators, digital/analog phase shifters Single multithrow switches (1 GHz to 40 GHz)

The MIC activity is further extended by the addition of control and command circuit design and production expertise into subsystem technology.

OUTLOOK During 1987 and 1988, MEDL suffered an operating loss of £1.8 million. This compares with an operating loss of £3.9 million in 1986 and 1987. MEDL's total employment fell from 2,585 in 1986 and 1987 to 2,475 in 1987 and 1988. However, the future holds some good prospects for MEDL in the telecommunications area and the military markets. MEDL has a strong market share in the U.K. telephone dialer business. It is estimated that MEDL supplies approximately 80 percent of dialers currently built into telecommunications main exchange systems (e.g., System-X), with the gate array content estimated at approximately 10 to 15 percent of the total business. MEDL is also supplying mixed analog/digital systems on a chip, using two process technologies: CMOS and CMOS SOS. (SOS is MEDL's radiation-tolerant analog.) MEDL has rights to the 1750 microprocessor and the Viper microprocessor, which is built to the U.K. Defence Ministry specification for use in safety-critical systems. The Viper-1 applications include aircraft and medical electronics, process control, signaling, robotics, and F>ower-station control. The strength of MEDL's discrete portfolio traditionally has helped its operation to better withstand the cyclic perturbations of the IC marketplace. Dataquest believes that MEDL's future growth will depend on the Company's ability to expand its defense and telecommunications contract business into new areas.

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BACKGROUND AND OVERVIEW

Matra-Harris Semiconducteurs (MHS) was formed in 1979 as a joint-venture company between Matra of France and Harris Corporation of the United States. The venture was supported by the then French government, which was keen to develop high technology in France. The Company built a 12,000-square-meter factory near Nantes, France, an area designated for industrial development. This allowed MHS to gain government financial assistance for the scheme. Prior to this formal link, Matra and Harris had made agreements for CMOS technology transfer. Initial wafer production at the Nantes plant began in December 1980. Production capability has now reached 80,000 five-inch wafers per year, and MHS ships more than 12 million circuits annually.

In 1981, MHS signed an agreement with Intel Corporation covering the manufacture of NMOS circuits in Nantes and the establishment of a joint-design facility called Cimetal for telecom chips and video controllers. Following this agreement with Intel, MHS was able to manufacture Intel's 8086, 8088, 8051, and 8052, as well as Harris' 80C86/88. MHS was also entitled to design CMOS versions of the 8051 MCU family, which is now one of MHS' key areas.

MHS increasingly has become involved in joint ventures. In 1985, MHS and SGS Microelectronics (now SGS Thomson Microelectronics) signed an agreement to develop a fully automated assembly and test line for integrated circuits. In a deal with Cypress Semiconductor of the Silicon Valley, MHS received licensing rights to manufacture Cypress fast 16K and 64K CMOS SRAMs and to use Cypress fast 1.2 and 0.8 micron processes. In April 1988, MHS extended its links with Cypress in a deal that will provide $4.75 million for MHS' research into bipolar technology.

MHS developed an advanced submicronic process (Super-CMOS) with France's national telecom research labs (CNET), to combine speed and low power consumption. Most new devices will be designed using this process, which is now ramping-up at MHS. MHS has also signed a second-source agreement with NEC covering the mutual manufacture and design rights to NEC's 78312 16-bit microcontroller family. From 1982 to 1986, MHS and Harris had common marketing operations in Europe. In 1986, they separated their sales forces and distributor networks to permit both companies to have direct and independent access to European customers. In 1987, MHS totally separated its marketing from Harris, and now has its own worldwide sales and distribution network, with direct subsidiaries in Santa Clara, London, Milan, Munich, Hong Kong, and Stockholm. As a result, MHS and Harris no longer sell each other's products.

Matra currently controls more than 80 percent of MHS.

PRODUCTS AND MARKETS SERVED MHS offers four main product areas, all in CMOS. Most circuits are available in commercial, industrial, and military temperature ranges. MHS is also a manufacturer of hi-rel devices for military, aeronautics, and space applications; its factory has been qualified AQAP-1, and a variety of products have been approved by the corresponding agencies. Below is a listing of MHS products.

Static RAMs • Fast 16K and 64K devices: HM65728/767/768 (down to 15ns) and HM65764/787-790, and a fast 8Kx9:HM65779 • Very low power 16K and 64K memories (6 transistors per cell): HM65162/262 and HM65641 (8Kx8, 55ns, luA) • 64K SRAM, such as HM65687:35ns, luA

Microcontrollers The 8051 family in CMOS, for which MHS is one of the leaders: • ROM capacity from 4K to 16Kbytes: 80C51, 83C154 • Low-voltage (2.7V), fuse-protected "secret ROM," high-speed (18 MHz) versions and a specific single-chip keyboard controller: 80C752

CMOS ASIC Five gate-array families, with gate counts from 250 to 55,000 gates, ultrafast CMOS arrays, proprietary software tools running on VAX or turnkey systems such as Daisy, Hewlett Packard, Mentor, and Valid Two families of composite arrays mixing optimized blocks (RAM, ROM, and others) with regular gate arrays Specific smart software for system analysis and logical synthesis Digital and/or analog custom design capabilities using standard software from Genesil, GDT, and Silicon Compilers Systems Inc.

Dedicated Telecom Products A family of combo devices (HC3054/57) compatible with a market standard (NS) Specific chips for modem applications, the 29C42 error correction circuit for V42 modems, the HC55421 21 interface, etc.

OUTLOOK MHS is conducting a major development effort to introduce a semiconductor family dedicated to ISDN PABX, terminals and adapters. These products, to be made available in 1989, are targeted for next-generation equipment. MHS' strategy is to develop its position as a specialist in CMOS system integration—a "toolbox" methodology that uses all basic functions (e.g., microcontrollers, memories, DSP, etc.) with the best-suited design tools and the Super-CMOS process to offer semiconductor solutions for specific applications.

ESIS Volume III © 1988 Dataquest Incorporated October 0001589 Matsushita Electric Industrial Co. Ltd. 1006 Kadoma, Kadoma City Osaka 571, Japan Telephone: (06) 908-1121 Fax: (06) 906-1762 Dun's Number: 69-053-6552 Date Founded: 1918

CORPORATE STRATEGIC DIRECTION of AV information networks employing sateUite sig nals. To meet emerging markets, such as integrated Matsushita Electric Industrial Co. Ltd. was founded services digital network (ISDN)-related products and as a family business in 1918 by Konosuke Matsushita systems and intraorganizational information systems, to produce and market an electric adapter plug for the company is currentiy constructing the Tokyo consumer products. Today, Matsushita is a worldwide Information and Communications Development electric and electronics manufacturer with products Center. that range from consumer electronics equipment, home appliances, and housing-related products through sophisticated industrial and communications Construction Electronics equipment, including electronic components. Matsushita is a major manufacturer of virtually all of the key equipment needed in homes, offices, and Matsushita is currently divided into four major busi other buildings, including air-conditioning equipment, ness segments. These segments are discussed below: gas water-heating equipment, kitchen-related products, lighting fixtures and elevators, as well as Audiovisual (AV) Products and Home appliances and communications equipment used in Appliances the home. Drawing on its capabilities as a manufac turer of a comprehensive range of products, Mat The audiovisual products and home appliances seg sushita is using this approach to develop a totally ment is Matsushita's core business. Matsushita integrated package concept and proposing it to the strengthened its position as a digital video industry constmction industiy. To foster this concept, the com leader by introducing its composite digital 1/2-iach pany established tiie Construction Electronics Busi tape VCR system (D3) for broadcast use. This system ness Group. win be used as the official system for the 1992 Barcelona Olympic Games. Components and Industrial Gk)ods Fiulher advances in intelligent products are expected in home appliances, '^th Matsushita's success of Matsushita supplies a vast array of electronic compo appliances employing fuzzy logic and neuro-fiizzy nents including semiconductors. The company is also logic, the company is worldng to develop next- one of Japan's leading suppliers of factory automation generation technologies. It is pursuing basic R&D equipment It plans to continue developing a well- into artificial intelligence and home-use robots. balanced semiconductor business, stressing not only memory devices but also bipolar ICs, microproces sors, logic ICs and charge-coupled devices. Information and Communications Equipment In systems and networks, Matsushita has made Within the four major segments, Matsushita has six advances in urban cable TV (CATV) systems, as well major product categories: video equipment, commu as in airport traffic control systems and subway infor nications and industrial equipment, electronic compo mation management systems that use optical fiber nents, home appliances, audio equipment, and batter LANs. The company is also increasing installations ies and kitchen-related products.

Matsushita's products are sold in more than 160 Communications and Industrial Equipment coimtries under the brand names National, Panasonic, Technics, and Quasar and under other trade names The second-largest revenue-producing category for including JVC. the company is commimications and industrial equip ment This category accoimted for 24 percent of fiscal 1991 revenue. Total sales increased 14 percent over The company reported consolidated sales of the previous period to $11.0 billion and include $46.7 biUion* for the fiscal year ended March 31, Matsushita's targeted growth areas of information/ 1991. Net income for the year increased over commtmication and factory automation. Products 13 percent, to $1.8 billion, versus $1.6 billion in include facsimile and copier equipment PCs and fiscal 1990. International sales accounted for 45 per workstations, printers, telephones and private branch cent of revenue in fiscal 1991. ''Mthin the major exchange systems, industrial robots, electronic parts product categories, video equipment sales increased mounting equipment welding machines, air condi 9 percent; audio equipment sales rose 8 percent; tioners, and compressors. home apphances sales increased 13 percent; commu nications and industrial equipment had a sales growth Computers of 14 percent; electronic components' sales grew 9 percent; and batteries and kitchen-related products Matsushita has expanded its desktop and laptop PC had sales gains of 13 percent (Note; Percentage lines, resuming exports to Eiux>pe and North America, growth figures apply to U.S. dollar-based growth.) which were ctirtailed in 1987. The company is manufacturing 8-, 16-, and 32-bit IBM-compatible laptops in Japan, imder the Panasonic label, for sale In December 1990, Matsushita acquired MCA Inc. in Europe. In the U.S. market the company is selling for approximately $6.1 billion. MCA Inc. is a leading 16- and 32-bit models made by Tandy Corporation on U.S. entertainment company, which includes Univer an OEM basis. According to Dataquest Matsushita sal Pictures Production. It engages primarily in the had less than 1 percent of the worldwide market share film, music, and publishing business. MCA's strength for desktop and laptop PCs during 1990. in the production of film and music software will widen Matsushita's business scope in the audiovisual field. Facsimiles During 1989, Matsushita merged its Panafax Corpo ration into the larger Office Automation Group of More detailed information is available in Tables 1 and Panasonic Communications & Systems Company. 2, which appear after "Business Segment Strategic The company intends to expand its presence across Direction" and present corporate highlights and reve the entire spectrum of facsimile product markets nue by region. Liformation on revenue by distribution through the merger of the two groups. According to channel is not available. Tables 3 through 7 at the end Dataquest, Panasonic facsimile sales in the North of this backgrounder provide comprehensive financial American market during 1990 were more than 95,000 information. units, placing Panasonic/Matsushita among the top five vendors in the market with a 6.8 percent market share.

BUSINESS SEGMENT STRATEGIC In addition to sales by its Panasonic subsidiary, Mat DIRECTION sushita manufactures facsimile eqiiipment sold by Pimey Bowes Inc. and several models sold by Fujitsu, Tandy, and Telautograph. Mdeo Ekiuipment In April 1990, Matsushita's Quasar subsidiary The video equipment category remains Matsushita's announced a facsimile model for sale in the U.S. largest revenue producer, accounting for 26 percent of market, manufactured by Matsushita in Japan. fiscal 1991 revenue. Sales totaled $12,144 million for this period. This category includes VCRs, camcorders Copiers and related equipment; color, projection, and liquid crystal display televisions; videodisc players; and sat Selling copiers under the Panasonic label, Matsushita ellite broadcast receivers. continued to gain market share during 1990. Pana sonic copiers compete in segments 1 through 4 of the *AI1 dollar amoimts are in U.S. dollars. six Dataquest copier segments. Based on plain paper

copier placements, Dataquest ranked Panasonic thir Sales for the period were $6,370 million, up teenth in 1990, with 30.7 thousand units. In the 13 percent from $5,614 million for the previous Westem Etmjpean copier market, Panasonic's 1990 period. sales rose to a total of 24.9 thousand units, up from 23.1 for 1989. Products in fiie home appliances category include refrigerators, room air conditioneTs, laundry equip In addition to copier sales under the Panasonic label, ment, vacuum cleaners, electric irons, microwave Matsushita manufactures several models sold under ovens, electric fans, electric blankets, and cooking the Lanier label in the United States and tmder the appliances. Apphances using fiizzy or neuro-fuzzy Adler-Royal label in Europe. logic and air conditioners with heating and cooling capabiliti^ sold especially well. Printers Matsushita also manufactures and markets its printers Audio Equipment under the Panasonic label. Its product line focus is Matsushita's audio equipment category accounted for primarily on the serial printer market According to 9 percent of the oornpany's revenue, with sales of Dataquest, Panasonic ranked fourth among page $4,234 million for ±c period ended March 31, 1991. printer vendors in North America during 1990, with Although audio equipment in Japan was generally 75.S thousand units and a market share of 3.6 percent slow during this fiscal year, compact discs (CDs), In the serial printer market, the company had unit radio/cassette recorders, and portable headphone shipments of 1.2 million with a market share of cassette players continued as sales leaders in this 20.8 percent segment

Electronic Components Other products under the audio equipment category are radios, tape recorders, stereo hi-fi and related The electronic components categoty accounted for equipment, car audio products, and electronic musical 13 percent of Matsushita's fiscal 1991 revenue, with instruments. sales of $5,961 nuUion. In the general components field, sales gains domestically as well as overseas were led by surface-mounted components and micro Batteries and Kitchen-Related Products wave parts used in audiovisual and mobile conmnmi- The batteries and kitchen-related products category cations equipment, as well as parts for office automa accounted for 5 percent of Matsushita's revenue, tion equipment $2,474 million for the fiscal year 1991. Batteries include compact batteries such as nickel-cadmium Semiconductors batteries. These batteries are used in video camcord ers, portable phones, notebook-size personal com Matsushita's 1990 worldwide semiconductor ranking puters, and other portable electronic products. went from ninth in worldwide semiconductor sales to lidiium batteries are also produced and used in tenth, based on revenue of $1,942 million. Its semi cameras and for of&ce automation equipment mem conductor sales include MOS digital ICs, analog ory backups. devices, discrete devices, optoelectronics, and bipolar digital ICs. The total revenue and worldwide market share breakdown is as follows: MOS digital, Others $819 miUion with a 2.5 percent market share; MOS The balance of Matsushita's business includes sales memory, $284 million with a 2.2 percent market of bicycles, cameras and flash units, prerecorded share; MOS microcomponents, $250 mUlion with a t^pes and discs, water purifiers, and imported materi 2.5 percent market share; MOS logic, $285 miUion als and products such as nonferrous metals, lumber, with a 3.1 percent market share; analog devices, paper, medical equipment, and cabin cruisers. This $410 million with a 3.9 percent market share; discrete category accounted for 10 percent of the company's devices, $374 million with a 4.5 percent market total revenue for fiscal 1991, with total sales of share; and optoelectronics, $325 million with a $4,551 million. 12.1 percent market share. Further Information Home Appliances For further information on the company's business The home appliances category accounted for 14 per segments, please contact the appropriate Dataquest cent of total revenue during the 1991 fiscal year. industry service.

Table 1 Four-Year Corporate Highlights (Millions of U.S. Dollars)

1988* 1989 1990 1991 Four-Year Revenue 36,710.8 42,918.1 41,998.1 46,733.9 Percent Change NA 16.91 -2.14 11.28

Capital Expenditure 1,679,8 2,537.5 2,482.0 3,377.9 Percent of Revenue 4.58 5.91 5.91 7.23

R&D Expenditure 2,022.7 2,488.1 2,418.5 2,718.6 Percent of Revenue 5.51 5.80 5.76 5.82

Number of Employees 134,186 193,088 198,299 210,848 Revenue ($K)/Employee 273.58 222.27 211.79 221.65

Net Income 1,192.7 1,664.4 1,648.1 1,833.4 Percent Change NA 39.56 -0.98 11.25

Exchange Rate (U.S.$1^ 138.03 128.25 142.93 141.21

1991 Fiscal Year Ql Q2 Q3 Q4 Quarterly Revenue 11,162.8 11,831.9 12,635.8 11,103.5 Quarterly Profit 413.02 486.13 596.03 338.36

NA = Not applicable Source: Matsushita Electric Industrial Co. Ltd. *In 1987, Matsushita changed its fiscal year-end from November to March 31. Anmial Reports Fiscal 1987 represents only four months from November 1986 to March 31, 1987. Dataquest (January 1992) Because of these changes, no infonnation is included for 1987.

Table 2 Revenue by Geographic Region (Percent) Region 1988* 1989 1990 1991 Japan 59 58 56 55 International 41 42 44 45

*In 1987, Matsushita changed its fiscal year-end from November to March 31. Source: Matsushita Electric Industrial Co. Ltd. Fiscal 1987 represents oi^ four mondis from November 1986 to March 31, 1987. Annual Reports Because of these changes, no information is included for 1987. Dataquest (January 1992)

Europe

1991 SALES OFFICE LOCATIONS Kyushu Matsushita Electric (United Kingdom) Electronic typewriters, printers Matsushita Business Machine (Germany) North America—9 Plain paper copiers Europe—15 Matsushita Communication Deutschland (Germany) Asia/Pacific—142 Car radios/stereos Japan—132 Matsushita Communication Industrial (United ROW—12 Kingdom) Car telephones Matsushita Electric (United Kingdom) Color TVs, microwave ovens Matsushita Electric Motor (Germany) MANUFACTURING LOCATIONS Motors Matsushita Electronic Components (Germany) Electronic parts, materials North America Matsushita Electronic Components (United Kingdom) Transformers, LC filters America Kotobuki Electronics Industries Matsushita Electronic Magnetron Corp. (United (United States) Kingdom) VCRs Magnetrons for microwave ovens American Matsushita Electronics Corporation Matsushita Graphic Communication Systems Ltd. (United States) (United Kingdom) Color TV picture tubes Fax machines Kyushu Matsushita Electric Corporation of America Matsushita "V^deo Manufacturing (Germany) (United States) VCR mechanisms Deflection yokes MB 'Video (Germany) Matsushita Communication Industrial Corporation of VCRs, CD players America (United States) Panasonic Espana (Spain) Car telephones, pagers, point-of-sale electronic Electric equipment cash register systems Panasonic France S.A. (France) Matsushita Compressor Corporation of America Consumer electronics (United States) Air conditioning con^ressors AsialPacific Matsushita Computer Company (United States) Personal computers, workstations A.P. National (Thailand) Matsushita Electronic Components Corporation of Home electrical appliances Asahi Kogyo (Japan) America (United States) Tape recorders Electrolytic capacitors, car audio speakers, filters, Beijing-Matsushita Color CRT (China) switchers Color CRTs Matsushita Industrial Canada (Canada) International Fan Manufacturing (Hong Kong) Color TVs, speaker boxes, TV cabinets, AV racks Electric fans Matsushita Industrial de Baja Califomia S A. de C.V. Katano Matsushita (Japan) (United States) Audio equipment TV chassis, color TVs Kibi Matsushita (Japan) Matsushita Refrigeration Co. of America Video equipment (United States) Kyushu Matsushita Electric (Japan) Refrigerators Data processing, business machines, magnetic Matsushita Semiconductor Corporation of America heads (United States) Matsue Matsushita Denki (Japan) Semiconductors Capacitors Matsushita-Ultra Tech. Battery Corp. (United States) Matsusaka Seimitsu (Japan) Batteries Assembly of motors Panasonic Technologies (United States) Matsushita Air-Conditioning Corporation (Malaysia) R&D Air conditioners

Matsushita Communication Industrial (Japan) Matsushita Seiko (Japan) Data processing, commimication, control, video Electric fans, ventilators, air conditioners equipment Matsushita Seiko Hong Kong International Matsushita Commimication Industrial Corp. of the Manufacturing Co. Ltd. (Hong Kong) Philippines (Philippines) Air conditioners FDDs, ECM Matsushita Technical Center (Singapore) Matsushita Compressor & Motor (Malaysia) Production equipment Compressors, fan motors Matsushita Television (Malaysia) Matsushita Denshi (Singapore) Color TVs IC production, large-scale integration (LSI) design Miyazaki Matsushita Denki (Japan) Matsushita Electric (Australia) Ceramics, magnetic materials, resistant materials TVs, audio equipment National Micromotor (Japan) Matsushita Electric (Malaysia) Microprecision motors Home electrical appliances National Thai (Thailand) Matsushita Electric CTaiwan) Home electrical appliances Electrical appliances PFU Ltd. (Japan) Matsushita Electric Instimte of Technology (Taiwan) Minicomputers R&D Precision Electronics (Philippines) Matsushita Electric Works (Japan) Home electrical appliances Electrical housing equipment P.T. Matsushita Gobel Battery Industry (Indonesia) Matsushita Electronic Components (Japan) Batteries Electronic equipment parts P.T. National Gobel (Indonesia) Matsushita Electronic Components (Malaysia) Home electrical appliances Electronic parts Takefu Matsushita Electric (Japan) Matsushita Electronic Components (Singapore) Micromotors Electronic parts •N^ctor Company of Japan (Japan) Matsushita Electronic Motor (Malaysia) Video/audio equipment, TVs Electronic motors Wakayama Precision (Japan) Matsushita Electronic Motor (Singapore) Refrigerators, air conditioners Precision motors, applied equipment Matsushita Electronics (Japan) Semiconductors, electron tubes, lighting equipment ROW Matsushita Electronics (Singapore) Audio equipment Matsushita Electric (East Africa) Matsushita Graphic Commimication Systems (Japan) Radios, radio cassette recorders, dry batteries Facsimiles, graphics equipment Matsushita Electrica de Guatemala (Guatemala) Matsushita Graphic Communications Systems Audio equipment (Singapore) Matsushita Electric de El Salvador (El Salvador) Fax machines Audio equipment Matsushita Industrial (Malaysia) Matsushita Industrial de Baja California (Mexico) Air conditioners, compressors Color TV chassis Matsushita Industrial Equipment (Japan) National Centroamericana Industrial equipment Dry batteries, audio equipment Matsushita-Kotobuki Electronics (Japan) National Componentes Electronicos do Brazil (Brazil) Video equipment, TVs, tape recorders Electronic parts Matsushita Precision Industrial (Malaysia) National do Brazil (Brazil) Flyback transformers, coils Matsushita group products Matsushita Refrigeration (Japan) National Electric Cote d'lvoire (Ivory Coast) Refrigerators, air conditioners TVs, radio cassette recorders Matsushita Refrigeration Industries (Malaysia) National Panasonic Fueguina Refrigerator/freezers Color TVs, radio cassette recorders Matsushita Refrigeration Industries (Singapore) National Peruana (Peru) Compressors Home electrical appliances Matsushita Refrigeration Industries (Thailand) Panasonic de Mexico (Mexico) Refrigerator/freezers Audio equipment, electronic parts Matsushita Research Institute (Japan) Panasonic Industrial de Venezuela C.A. (Venezuela) Electronics research Consumer electronic products

Springer National Componentes (Brazil) Assembly of micromotors, CRT sockets, PC boards ALLIANCES, JOINT VENTURES, AND Springer National da Amazonia (Brazil) LICENSING AGREEMENTS Color TVs, audio equipment

1991 Digital Tape Licensing Matsushita will share its digital compact cassette SUBSIDIARIES tape technology, which was jointly developed with Philips, with third parties. Tbe aim is to make the North America digital tape format, which competes against digital audio tape, a standard in the industry. Matsushita Electric Corporation of America (United States) Tandy Corporation Solboume Computer (United States) Tandy Corporation and Matstishita have signed a joint venture to manufacture laptop and notebook computers. Both companies will be equal partners Europe and share in the technology of the new company called PTCC Inc. Matsushita Electric (U.K.) Ltd. (United Kingdom) Matsushita Electronic Magnetron Corp. (United Texas Instruments Inc. (TI) Kingdom) TI and Matsushita signed a cross-Ucensing agree Matsushita Graphic Communication Systems U.K. ment This five-year agreement replaced the previ Ltd. (United Kingdom) ous agreement fliat expired in 1990. TI will con Panasoiuc Espana S.A. (Spain) tinue to receive royalty payments from Matsushita Panasonic France S.A. (France) based on worldwide sales of chips by the two Japanese firms. Asia/Pacific Energy Conversion Devices Co. (ECD) Kyushu Matsushita Electric Co. Ltd. (Japan) ECD and Matsushita have signed a patent Ucens- Matsushita Battery Industrial Co. Ltd. (Japan) ing agreement for ECD's patented phase transfor Matsushita Communications Industrial Co. Ltd. mation optical disk system, "^th this agreement (Japan) Matsushita wiU be able to sell optical disks Matsushita Electric (Taiwan) Co. Ltd. (Taiwan) worldwide. Matsushita Electronic Components Co. Ltd. (Japan) Siemens Nixdorf Information Systems (SNI) Matsushita Electronics Corporation (Japan) SNI and Matsushita have signed an agreement to Matsushita Electronics (S) Pte. Ltd. (Singapore) develop PC peripherals. The development will Matsushita Graphic Communications Systems Inc. include an expansion tinit for 16-bit and 32-bit (Japan) notebook-size PCs. The unit will contain extra Matsushita Housing Products Co. Ltd. (Japan) memory and space for an additional battery unit Matsushita Industrial Equipment Co. Ltd. (Japan) Matsushita will produce the expansion unit The Matsushita Industrial Corporation Sdn. Bhd. company wiU market it in Europe and will also (Malaysia) supply the device to SNI on an OEM basis. Matsushita Kotobuki Electronics Industries Ltd. (Japan) Sun Microsystems Inc. Matsushita Refrigeration Company (Japan) Sun Microsystems Inc. has signed an agreement Matsushita Refrigeration Industries (S) Pte. Ltd. with Matsushita, Fujitsu, and Toshiba whereby Sun (Singapore) will exchange information wifii the other firms on Matstishita Seiko Co. Ltd. (Japan) image-processing techniques for multimedia \^ctor Company of Japan Ltd. (Japan) workstations.

1990 Tosoh The companies agreed to jointiy develop conduc The Santa Cruz Operation tive electron-beam resist that completely solves the The Santa Cruz Operation and Matsushita have electrification problem occurring with direct-write signed an agreement to codevelop a Japanese ver e-beams. sion of a UNIX operating system. Matsushita will manufacture the new product on an OEM basis, Motorola while The Santa Cruz Operation will be responsi Matsushita agreed to purchase Motorola semicon ble for marketing efforts through a new branch ductors for use in videocassette recorders. office to be established in Japan. SNI 7957 SNI and Matstishita signed an agreement to have SNI supply desktop PCs to Matsushita. In return, NEC Corporation Matsushita will supply laptop PCs to SNI on an NEC and Matsushita agreed to develop the next OEM basis. generation of steppers for very large scale integra tion (VLSI) manufacturing.

1989 SAE Inc. SAE and Matsushita agreed to joindy develop a Signetics Company 64-bit microprocessor with plans for a 64-bit Signetics and Matsushita entered a sales agency engineering workstation in 1989. agreement for memory products. Philips Weitek Corporation Philips and Matsushita renewed a business cooper Weitek and Matsushita are joindy developing a ation agreement for the next ten years in which microprocessor product Matsushita Electric will continue to own 65 per cent of Matsushita Electronics and Philips will Siemens own 35 percent Matsushita agreed to supply LSIs Matsushita and Siemens formed a joint venture for for compact discs to Philips, and the companies producing passive electronic components. made a second-source agreement for 8-bit CMOS microcontrollers. Office Workstations Ltd. Matsushita and Office Workstations of Scotland Intel formed a joint venture for development of office Matsushita obtained a license from Intel for the automation software products. 8051 and three other 8-bit microcontrollers. TRW 1988 The companies agreed to jointly develop a Hewlett-Packard Company, IBM Corporation, 0.8-micron-wavelength GaAlAs semiconductor Intel laser for space communications. Matsushita agreed to supply these companies with Nikon Corporation a total of more than 1 milUon 1Mb DRAMs per The companies jointiy developed advanced i-line month. steppers and excimer lasers for next-generation Intel Corporation VLSIs. Matsushita agreed to subcontract production of Intel's 8-bit microcontrollers for the Japanese mar ket The companies also agreed to jointiy develop a sub-0.5-micron 16Mb DRAM process. MERGERS AND ACQUISITIONS Sun Microsystems The SPARC RISC chip was licensed for use in workstations being developed by Solboume Com 1991 puter, a Matsushita subsidiary. Matsushita made no mergers or acquisitions in 1991.

1990 Keiya Toyonaga Senior managing director MCA Inc. MCA Inc. was acquired by Matsushita for approxi Hiroyuki Mizuno mately $6.1 billioa MCA is primarily engaged in Senior managing director the production and distribution of motion pictures and musical recordings, theme parks, book pub Tsuzo Murase lishing, retailing, and real estate development. Senior managing director

1989 Matsushita made no mergers or acquisitions in 1989. PRINCIPAL INVESTORS 7955 Matsushita Electric IVading Co. Ltd. (MET) Sumitomo Bank—4.4 percent MET, a 51.24 pox^nt owned consolidated subsi Sumitomo Life Insurance—4.4 percent diary, was merged into the company in exchange Nippon Life Insurance—4.0 percent for 73.4 million shares of Matsushita common Matsushita Investment and Development- stock having a fair market value of $1.1 billion. 3.2 percent Mitsubishi Trust—^3.0 percent Sumitomo Trust—^2.9 percent Konosuke Matsushita—2.6 percent KEY OFFICERS Toyo Trust—-2.0 percent Kyowa Bank—^2.0 percent Masaharu Matsushita Chairman of the board Akio Tanii President FOUNDERS Shoji Sakuma Executive vice president Konosuke Matsushita Masahiko Hirata Executive vice president

Table 3 Balance Sheet Fiscal Year Ending March 31 (MiUions of U.S. Dollars) Balance Sheet 1988* 1989 1990 1991 Cash 10,016.4 11,229.2 14,068.8 11,737.8 Receivables 4,915.5 6,137.8 7,782.4 9,062.4 Marketable Securities 2,562.6 1,652.8 2,346.6 1,294.5 Inventory 4,857.9 6,210.6 5,919.0 6,593.7 Other Current Assets 1,967.2 2,303.0 2,157.4 2,491.3 Total Current Assets 24,319.6 27,533.4 32,274.3 31,179.8 Net Property, Plants 5,056.0 6,426.6 6,700.1 8,202.7 Investments 8,971.7 11,828.3 11,527.1 17,420.9 Other Assets 3,149.8 4,128.9 4,429.0 5,239.7 Total Assets 41,497.2 49,917.3 54,930.5 62,043.1 Total Current Liabilities 13,359.1 16,717.6 18,208.2 22,500.5 Long-Term Debt 4,093.6 4,849.1 8,375.3 8,665.8 Other Liabilities 6,005.4 5,999.5 5,952.1 6,553.4 Total Liabilities 23,458.1 27,566.3 32,535.6 37,719.7 Common Stock 1,048,2 1,280.7 1,293.9 1,383.0 Other Equity 1,815.8 3,266.7 3,700.2 3,688.8 Retained Earnings 15,175.1 17,803.6 17,400.8 19,251.5 Total Shareholders' Equity 18,039.1 22,351.0 22,394.9 24,323.3 Total Liabilities and Shareholders' Eauitv 41,497.2 49,917.3 54,930.5 62,043.1 Exchange Rate (U.S.$1=^ 138.03 128.25 142.93 141.21

*In 1987, Matsushita changed its fiscal year-end from November to March 31. Source: Matsushita Electric Industrial Co. Inc. Fiscal 1987 represents only four months &om November 1986 to March 31, 1987. Annual Reports Because of these changes, no information is included for 1987. Dataquest (January 1992)

Table 4 Consolidated Income Statement Fiscal Year Ending March 31 (Millions of U.S. Dollars, except Per Share Data) Consolidated Income Statement 1988* 1989 1990 1991 Revenue 36,710.8 42,918.1 41,998.1 46,733.9 Cost of Sales 24,223.1 28,622.9 28,052.8 31,113.2 R&D Expense 2,022.7 2,488.1 2,418.5 2,718.6 SG&A Expense 9,880.5 11,042.3 10,777.8 12,273.9 Capital Expense 1,679.8 2,537.5 2,482.0 3,377.9 Pretax Income 3,283.6 4,128.2 4,000.1 4,230.6 Pretax Margin 8.94 9.62 9.52 9.05 Effective Tax Rate (%) 55.50 54.20 52.60 51.10 Net Income 1,192.7 1,664.4 1,648.1 1,833.4 Shares Outstanding, Millions 1,861.8 1,955.6 2,080.2 2,093.4

Per Share Data Earnings 0.67 0.76 0.68 0.83 Dividend 0.80 0.90 0.63 0.89 Book Value 9.69 11.43 10.77 11.62 Exchange Rate (U.S.$1=¥) 138.03 128.25 142.93 141.21

*In 1987, Matsushita changed its fiscal year-end from November to March 31. Source: Matsushita Electric Industrial Co. Ltd. Fiscal 1987 represents only four months from November 1986 to March 31, 1987. Aimual Reports Because of these changes, no information is included for 1987. Dataquest (January 1992)

Table 5 Balance Sheet Fiscal Year Ending March 31 (Billions of Yen) Balance Sheet 1988* 1989 1990 1991 Cash 1,382.6 1,440.1 2,010.8 1.657.5 Receivables 678.5 787.2 1,112.3 1,279.7 Marketable Securities 353.7 212.0 335.4 182.8 Inventory 670.5 796.5 846.0 931.1 Other Current Assets 271.5 295.4 308.4 351.8 Total Current Assets 3.356.8 3,531.2 4,612.9 4,402.9 Net Property, Plants 697.9 824.2 957.6 1,158.3 Investments 1,238.4 1,516.9 1,647.6 2,460.0 Other Assets 434.8 529.6 633.0 739.9 Total Assets 5,727.9 6,401.9 7,851.1 8,761.1 Total Current Liabilities 1,843.9 2,144.0 2,602.5 3,177.3 Long-Term Debt 565.0 621.9 1,197.1 1,223.7 Other Liabilities 828.9 769.4 850.7 925.4 Total Liabilities 3,237.8 3,535.3 4,650.3 5,326.4 Common Stock 144.7 164.3 184.9 195.3 Other Equity 250.7 419.0 528.9 520.9 Retained Earnings 2,094.7 2,283.3 2.487.1 2,718.5 Total Shareholders' Equity 2,490.1 2,866.6 3,200.9 3,434.7 Total Liabilities and Sliareholders' Equity 5.727.9 6,401.9 7.851.2 8,761.1 Exchange Rate (U.S.$1=¥) 138.03 128.25 142.93 141.21

*In 1987, Matsushita changed its fiscal year-end from November to March 31. Source: Matsushita Electhc Industrial Co. Ltd. Hscal 1987 represents only four months from November 1986 to March 31, 1987. Annual Reports Because of these changes, no information is included for 1987. Dataquest (January 1992)

Table 6 Consolidated Income Statement Fiscal Year Ending March 31 (Billions of Yen, except Per Share Data)

Income Statement 1988* 1989 1990 1991 Revenue 5,067.2 5,504.3 6,002.8 6,599.3 Cost of Sales 3,343.5 • 3,670.9 4,009.6 4,393.5 R&D Expense 279.2 319.1 345.7 383.9 SG&A Expense 1,363.8 1,416.2 1,540.5 1,733.2 Capital Expense 231.9 325.4 354.8 477.0 Pretax Income 453.2 529.4 571.7 597.4 Pretax Margin (%) 8.94 9.62 9.52 9.05 Effective Tax Rate (%) 55.50 54.20 52.60 51.10 Net Income 164.6 213.5 235.6 258.9 Shares Outstanding, Millions 1,861.8 1,955.6 2,080.2 2,093.4 Per Share Data Earnings 80.34 99.94 108.34 117.12 Dividend 9.52 11.90 10.00 12.50 Book Value 1.34 1.47 1.54 1.64 Exchange Rate (U.S.$1^ 138.03 128.25 142.93 141.21 *In 1987, Matsushita changed its fiscal year-end from November to March 31. Source: Matsushita Electric Industrial Co. Ltd. Fiscal 1987 represents only four months from November 1986 to March 31, 1987. Annual Reports Because of these changes, no information is included for 1987. Dataquest (January 1992)

Table 7 Key Financial Ratios Fiscal Year Ending March 31 Key Financial Ratios 1988* 1989 1990 1991 Liquidity Current (Hmes) 1.82 1.65 1.77 1.39 Fixed Assets/Equity (%) 230.03 223.33 245.28 255.08 Current Liabilities/Equity (%) 74.05 74.79 81.31 92.51 Total Liabilities/Equity (%) 130.03 123.33 145.28 155.08 Profitability (%) Return on Assets 2.87 3.33 3.00 2.96 Return on Equity 6.61 7.45 7.36 7.54 Profit Margin 3.25 3.88 3.92 3.92 Other Key Ratios R&D Spending % of Revenue 5.51 5.80 5.76 5.82 Capital Spending % of Revenue 4.58 5.91 5.91 7.23 Employees 134,186 193,088 198,299 210,848 Revenue OfM)/Employec 37.76 28.51 30.27 31.30 Capital Spending % of Assets 4.05 5.08 4.52 5.44 Exchange Rate (U.S.$1=^ 138.03 128.25 142.93 141.21

*In 1987, Matsushita changed its fiscal year-end from November to March 31. Source: Matsushita Electric Industrial Co. I4d. Fiscal 1987 represents only four months from November 1986 to March 31, 1987. Annual Reports Because'of these changes, no information is included for 1987. Dataquest (Jamaiy 1992)

BACKGROUND AND OVERVIEW Mitsubishi Electric Corporation began in 1898 as a heavy electrical equipment plant adjacent to the Nagasaki Shipyard. A related plant was set up in 1905 at Mitsubishi Shipbuilding's Kobe Works. In 1921, these two vmits were consolidated to form Mitsubishi Electric Manufacturing Company. During the Company's early years, it established heavy electrical equipment factories throughout Japan. In 1923, a technical cooperation agreement was made with Westinghouse Electric International; production of consumer goods began in the 1930s. In 1958, Mitsubishi established separate groups for heavy machinery, electronics, consumer products, and overseas business. The Semiconductor Marketing Division began in 1972, and the Computer Marketing Division was founded in 1976. Mitsubishi is the fourth largest Japanese electronics company, following Matsushita, Hitachi, and Toshiba. Mitsubishi has been a major supplier of electronic equipment to the Japan Defense Agency for more than twenty years. The Company produces missiles and electronics for use in land, sea, and air vehicles; active phased-array radar used in fire control systems; the next-generation warning control radar; and computers for fighter planes. Mitsubishi also was the prime contractor for 9 of the 18 satellites lavmched by Japan's National Space Development Agency. Table 1 shows Dataquest estimates of Mitsubishi's Em"opean semiconductor revenue. Table 1 Mitsubishi Electric CorpcH'ation Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1983 1984 1985 1986 1987

Total Semiconductor $15 $21 $17 $33 $39

Total Integrated Circuit $14 $20 $15 $29 $34 Bipolar Digital 0 0 1 1 2 MOS 13 19 14 28 32 Linear 1 1 0 0 0

Total Discrete $ 1 $ 1 $ 1 $ 3 $ 2 Transistor 0 0 0 2 2 Diode 0 0 0 1 0 Thyristor 0 0 0 0 0 Other 1 1 1 0 0

Total Optoelectronic f 0 $ 1 $ 1 $ 3 Source: Dataquest September 1988

PRODUCTS AND MARKETS SERVED Mitsubishi's main product strengths are in the areas of EPROMS and DRAMs. The Company is now a mass producer of the 1-megabit DRAM and at the forefront of development of the 4-megabit device. Mitsubishi's semiconductor product line includes the following: • Bipolar digital logic—Low-power Schottky TTL (LSTTL) and ALSTTL • MOS memory—64K, 256K, and 1Mb DRAMS; NMOS and CMOS SRAMs; ROMs; and EPROMs • MOS microcomponents—Second-sourcing of Intel microcontroller in NMOS and CMOS, 8-bit CMOS and NMOS microperipherals, and original 8-bit micro processors • Linear—Transistor arrays, op amps, voltage comparators and regulators, timer ICs, and current drivers Mitsubishi also manufactures gallium arsenide (GaAs) field-effect transistors (FETs). Some recent developments in the Company's semiconductor-related activities are related below: • In March 1988, Mitsubishi announced an investment of £3 million at its video recorder plant in Livingston, Scotland, creating approximately 250 jobs over the next two years. • In March 1988, profits at the top five Japanese electronics companies rocketed in the half year that started in September, 1987. Mitsubishi topped the list with a 26 percent rise in profits. The Japanese companies' success is generally attributed to the industry's efforts to put emphasis on domestic sales, to streamline plant operations, and to a general recovery in the semiconductor market. • In March 1988, it was reported that Mitsubishi had begun talks with the major European banks and computer houses in order to interest them in its family of "smart" cards and memory cards. It is Mitsubishi's plan to dominate the European IC card market. The Company also announced the launch of a range of logic ICs: two new families. Advanced Schottky TTL (MAST), and 74HC-advanced high speed CMOS; as well as both conventional and industry-standard families. • In August 1987, Mitsubishi announced plans to build a £12 million plastics component plant at Bridgend in Wales. It will make plastic covers and panels for television sets and electronic office equipment.

In August 1987, Mitsubishi and Intel signed an agreement whereby Mitsubishi would make EPROMs for Intel in Japan. The devices will be sold in the Japanese market under the Intel brand name. The contract is open-ended and will last until the two parties dissolve it. In July 1987, NTT and Mitsubishi formed a joint venture company based in the United States to develop and sell integrated circuit technology made from optical fiber.

OUTLOOK Mitsubishi is continuing market penetration in Europe. Its U.K. subsidiary, Mitsubishi Electric U.K. Ltd., is now firmly established as a supplier to the European as well as the U.K. markets. Its consumer products factories export throughout the EEC and the Company supplies mobile radio equipment to the Scandinavian market and retail automation systems to the European Cooperative Movements.

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© 1988 Dataquest Incorporated September ESIS Volume III 0000829 Motorola Incorporated 1303 E. Algonquin Road Schaumberg, Illinois 60196 Telephone: (708) 576-5000 Fax: (708) 576-7653 Dun's Number: 00-132-5463 Date Founded: 1928

CORPORATE STRATEGIC DIRECTION Products group continues to close the gap with the Communications Products segment, bringing in $3.4 billion in revenue in 1990, accounting for Motorola Incorporated is one of the world's leading 31.5 percent of revenue. The General Systems suppliers of electronic equipment, systems, compo Products group represented the highest rate of growth nents, and services. Applications range from the in 1990, as the group's revenue increased 39.2 per telecommunications market to the semiconductors market, with products including two-way radios, cent to $2.6 billion in sales. General Systems has pagers, cellular telephones and systems, semiconduc increased 140.3 percent in the last two years, up from tors, defense and aerospace electronics equipment, the 1988 net sales total of $1.1 biUioa automotive and industrial electronics equipment, computers, data communications equipment, and Motorola's total revenue increased 13.1 percent to information processing and handling equipment. $10.9 billion in fiscal 1990 from $9.6 billion in fiscal Founded in 1928 for the purpose of manufacturing 1989. Net income increased 0.2 percent to automobile radios. Motorola has grown from a radio $499.0 million in fiscal 1990 from $498.0 million in equipment and communications manufacturer to a fiscal 1989. Motorola employs approximately $10.9 billion* Fortune 100 company with operations 115,400 people worldwide. in diverse electronics markets.

The international market continues to increase its Motorola entered the semiconductor industry early in impact on Motorola's total revenue figures. In fiscal its history in 1948, when semiconductor operations 1985, international sales accounted for 25 percent of were established to develop automobile radio applica revenue, while in fiscal 1990 the figure had increased tions. Today, Motorola maintains one of the broadest to 44 percent of total revenue. Over the last two product lines of all semiconductor manufacturers and years, international sales revenue has increased offers electronics products in other sectors as well. 48.6 percent, nearly doubling the domestic growth of Motorola is the largest semiconductor producer based 24.8 percent Motorola expects this international in the United States. growth trend to continue in fiscal 1991, with the main growth coming from Asia and Europe. Motorola divides its operations into eight main groups: Land MobUe Products, Paging and Telepoint Accordingly, Motorola has continued to expand its Systems, Semiconductor Products, General Systems operations on a global scale. In 1990, international Products, Information Systems Products, Government Electronics Products, and the Automotive and Indus highlights included the opening of a new semiconduc trial Electronics groups. The Communications tor facility in Hong Kong, the provision of the radio Products segment, which includes the Land Mobile system for the Asian games in China, and the cement Products and Paging and Telepoint Systems groups, ing of plans to supply the communications system for remains the largest segment in terms of net sales, the Channel Tunnel that will link England and bringing in $3.6 biUion and accounting for 32.7 per France. The company also began operations in the cent of revenue in fiscal 1990. The Semiconductor emerging eastern Europe maikets, selling two-way radios in Romania and Yugoslavia and cellular tele *A11 dollar amounts are in U.S. dollars. phones in Hungary.

Research and development expenditure totaled Land Mobile Products $1.0 billion in fiscal 1990, representing 9.3 percent of revenue. Capital spending expenditure totaled Nineteen-ninety was an active year for the Land Mobile Products sector, as Motorola continued to $1.3 billion in fiscal 1990, representing 12 percent of invest heavily in future technologies. Using this revenue. newly formed sector, the company is active in the development of Specialized Mobile Radio (SMR) systems, wireless data communications, and digital More detailed information is available in Tables 1 trunking. and 2, which appear after "Business Segment Strate gic Direction" and present corporate highlights and Motorola took major steps toward the completion of revenue by region. Information on revenue by distri its Coverage Plus SMR system, a nationwide voice bution diannd is not available. Table 3, a conqsie- and data communications and vehicle location net hensive financial statement, is at the end of this work currently being implemented in the United backgroimder. States. The system enables dispatchers to locate and communicate direcdy with vehicles ans^where on the network either by voice or data messages. Over 500 sites have been installed to date in the United States. The company also implemented SMR systems BUSINESS SEGMENT STRATEGIC in China and Germany. DIRECTION Motorola introduced a number of new models of trunked radio system products in 1990. The JSMR-II, the company's first 1.5-GHz shared trunked radio Communications Products system, was installed in Japan. The system features newly developed repeaters and subscriber radios in The Communications Products segment accounted for the new frequency band. Motorola also began distri 32.7 percent of Motorola's 1990 net sales, bringing in bution of the company's first 1.5-GHz mobile radio, $3.6 billion in factory revenue. This group produces a the MG-100, and the MIB-5000, an 800-MHz system wide variety of radio communications equipment, that boasts the world's smallest trunked mobile radio. including base stations, digital voice communications systems, high-frequency single-banded radio systems, Motorola continued production of the ARDIS radio mobile/portable data communications, FM two-way data communications system, a result of a joint ven radio communications systems, and radio paging sys ture with IBM. The system provides communications tems. Motorola can claim the distinction of being the networking applications in the areas of field service, first foreign supplier to join Japanese competitors in insurance claims, and public safety and transporta selling to Japan's national telephone company, Nip tion. The company also introduced two modems that pon Telegraph and Telephone Company. Motorola is are compatible with networks such as ARDIS—the a market leader in radio paging equipment. RPM 840 integrated portable radio data modem and the RPM 400i modem for laptop and other hand-held computers. The group's 1990 revenue of $3.6 billion represented a 7.6 percent increase over 1989*s revenue of Paging and Telepoint Systems $3.3 biUion. Operating profits decreased 25.5 percent Motorola introduced a number of new products in to $225 million in 1990, down from $302 million in 1990 under the auspices of the Paging and Telepoint 1989. Motorola attributes this decline to increased Systems group. The introduction of the CT-2 cordless research and development costs in the areas of radio telephone marked Motorola's entrance into the frequency (RF) cormnimications and radio data com second-generation digital cordless telephone market munications, expenses associated with expansion of The CT-2 technology provides cordless technology international distribution, changes in domestic distri that allows the personal cordless telephones to be bution, and shortfalls in implementation and effi utilized in the home or office through conventional ciency in certain areas of business. At the end of methods. The technology also allows use of the CT-2 fiscal 1990, the Commxmications Products sector was telephones outside the home and office through the divided into two divisions: the Land Mobile Products use of base stations known as telepoints, providing group and the Paging and Telepoint Systems Group. limited-range access. The CT-2 system was especially

popular in the international markets, as Motorola onto the number two position in 1990 with 9.8 per received substantial orders for the CT-2 from Singa cent of the worldwide market share, with discrete pore Telecom and other companies in Malaysia, Thai revenue amounting to $808 million. land, and Hong Kong. Serving the broad range of discrete markets also Motorola offers a diverse line of pagers and is a requires a broad range of capabilities, including market leader in radio paging equipment In 1990, the advanced submicron technology for such products as company introduced the Advisor pager, an alphanu RF semiconductors, power MOS and small-signal meric unit with a four-line display and up to 32,000 devices, and leading-edge manufacturing and packag characters of memory. FuU production of the revolu ing technologies for mature, high-volume semicon tionary Wristwatch pager began in the fourth quarter ductors. These new technologies often combine dis of 1990. The Wristwatch pager, the result of a joint crete and integrated circuit technologies to provide venture with Timex, combines a numeric display new products containing substantial added value. The pager with a digital watch and is compatible with company also offers a broad range of silicon pressure existing paging systems throughout the world. sensing devices including a new fully signal- conditioned integrated pressure sensor.

Semiconductor Products Optoelectronics In an era of increasing specialization and niche Motorola's optoelectronic products include emitter/ market-oriented companies. Motorola represents an detectors, optocouplers, optointerrupters, and fiber unusual breed of U.S. semiconductor manufacturers. optic switches and components. However, with reve As the largest U.S. chipmaker. Motorola continues to nue of $26 million during fiscal 1990, Motorola is a be one of the few remaining broad-based semicon small player in the $2.7 billion optoelectronics mar ductor suppliers in the natioa The company considers ket. Dataquest fotmd Motorola to rank nineteenth in its wide product breadth to be critical to its semicon the worldwide optoelectronics market during 1990. ductor strategy and has charted a course that provides an extensive product portfolio. Analog

The company's semiconductor revenue in 1990 was Motorola's growing portfolio of analog circuits is $3.43 billion, an increase of 13.1 percent over 1989. targeted primarily toward automotive, telecommuni The semiconductor products segment accounted for cations, and consumer applications. Using bipolar and 31.5 percent of total sales for fiscal 1990. According CMOS technologies. Motorola has developed a vari to Dataquest, Motorola possessed 6.3 percent of the ety of proprietary and custom devices. In 1990, Moto 1990 worldwide semiconductor market, ranking it rola held a 4.6 percent market share and ranked sixth fourth among more than 140 vendors. The company in the worldwide analog market, according to ranks first in the North American semiconductor mar Dataquest ket with 11.3 percent market share and $2.0 billion in factory revenue. A review of Motorola's product Logic portfolio shows that the company is manifestly strong Motorola offers a variety of logic products in standard in the areas of discrete devices and analog, logic, and logic, gate arrays, and custom products. The company microcomponent products. It is investing to establish has long been a leading producer of standard logic a stronger position in memory through the develop circuits, producing a variety of products in TTL, ment of a competitive fast SRAM offering, as well as ECL, and CMOS technologies. In die standard logic a strategic position in DRAMs under a technology arena. Motorola is a major market participant, ranking agreement with Toshiba. fourth in the bipolar and digital logic markets and third in the MOS logic market during 1990, according Discrete Devices to Dataquest

Although many semiconductor producers had aban Application-Specific ICs (ASICs) doned discrete products for integrated circuits. Moto rola remains an important force in discretes such as In addition to working closely with key customers to transistors, diodes, and thyiistors. In a market domi offer high-performance system solutions in both bipo nated by Japanese companies. Motorola had been the lar and CMOS technologies. Motorola drives the leading supplier and was dislodged from the number indtistry standards for computer-aided design (CAD) one position only in 1987 by Toshiba. Motorola held actively in order to accelerate the availabiUty and

Utility of open architecture alternatives. These activi Motorola closed the gap with second-place NEC in ties are key features of the company's strategy in the 1990, pulling to within $74 million in yearly revenue. ASIC markets. Motorola is the leading supplier of 8-bit microcon During 1989, Motorola introduced a new design con trollers in terms of units shipped, garnering a cept for ASICs called Customer-Defined Arrays. 23.9 percent share of the worldwide market The Customer-Defined Arrays combine array- and cell- company's 68HC05 continues to be the top microcon based chip architectures with multiple process tech troller on the market in terms of unit shipments, with nologies on a single circuit Motorola's new Open over 73.6 million units shipped in 1990. A leading Architecture CAD System gives customers a com application for these 8-bit MCUs is in the automotive plete ASIC development environment using industry- industry. standard workstations and leading third-party design and verification tools. The company introduced its first 16-bit microcon troller, the MC68HC16, in 1990. The MC68HC16 features on-chip control-oriented digital signal Motorola is the leading supplier of ECL gate arrays to processing (DSP) capability, with plaimed applica the merchant market Motorola's MCA HI process tions including future vehicles from Chrysler supports 2,200- and 10,000-gate ECL arrays featuring Corporation. 12C^s typical gate delays and 1,200- to 1,500-MHz input firequencies. In 1990, Motorola extended the line by introducing an ETL series providing mixed Motorola also tmveiled the 68332, a 32-bit embedded ECL, TTL, and pseudo-ECL interfaces in 750-, microcontroller. It is based on Motorola's 68020 cen 3,200-, and 6,200-gate densities. System clock speeds tral processing unit and has been chosen by General up to 2,500 MHz are supported. Motorola also offers Motors for control functions in future vehicles. The bipolar foundry services based on the MCA V process 68302 Integrated Multiprotocol Processor was devel with four-layer metal and 0.8-inicron emitters. Typi oped for communications applications. In addition, cal gate delays of 80ps are achieved in a channeUess the company introduced the 68HC16 microcontroller architecture. Next-generation bipolar arrays wiU family, its first 16-bit MCU device, to provide a shrink emitter width and include a BiCMOS process smooth migration path from 8-bit to 32-bit microcon option for high-speed embedded memory. Initial troller appUcations. products will allow 20,000 to 30,000 gates of 50ps logic combined with 256,000 bits of BiCMOS RAM. The company is also prominent in high-end microprocessors, where it has a full line of products including high-performance floating-point coproces In the arena of CMOS process technology. Motorola sors and DSP support. Motorola ranked second in the has a family of high-density CMOS gate arrays 32-bit microprocessor market with a 30.5 percent manufactured in a submicron process. The H4C market share in 1990, according to Dataquest esti Series utilizes a sea-of-gates architecture and ranges mates. Motorola had the advantage of a head start in in gate count from approximately 27,000 to 318,000 the emerging 32-bit microprocessor market with its gates. Utilizing triple layer metal routing, the H4C 68020 and 68030 devices. Because the M68000 Series combines user-configurable RAMs up to microprocessor, a 16-bit microprocessor introduced in 256Kb, digital phase-locked loops, and low power 1979, had a 32-bit internal architecture. Motorola was consumption for true systems integration. able to upgrade 16-bit data bus paths to a fuU 32-bit architecture with the 68020 a full two years before its competitors. Microcomponents

Motorola is a leading participant in the microcompo In early 1987, Motorola produced silicon for the nents market The company has been a long-time 68030, a second-generation 32-bit microprocessor supplier of proprietary microprocessors, microcon that incorporated such functions as a paged MMU, an trollers, and microperipherals to this market With instruction cache, and a data cache with burst-fillable estimated revenue of $1.0 billion in an approximately mode in a Harvard-style architecture. These devices $10.1 billion market a 10.0 percent market share, have found tisage in a variety of applications, includ Motorola ranks as the third-largest microcomponent ing business systems, artificial intelligence platforms, manufacturer in the world. Motorola has ranked con- robotics, telecommunications, multiprocessor sys sistendy as the number three supplier to this market, tems, military products, and most prominently in behind Intel and NEC. According to Dataquest technical workstations.

In the fourth quarter of 1990, Motorola began full- In digital signal processing. Motorola has introduced scale production of its next-generation complex- its 96002 Media Engine, a 32-bit IEEE floating-point instruction-set computing (CISC) microprocessor, the processor. Based on the same architecture as the MC68040. With 1.2 million transistors, the MC68040 company's 24-bit fixed-point device, the 96002 is dehvers 20 mips and a sustained rate of 3.5 mfiops at able to create vivid color graphics while generating 25 MHz. Fabricated with Motorola's 0.8-micron high- stereo sound. performance HCMOS process, the MC68040 features an integer unit, a floating-point unit, two memory- management units, and two 4KB cache memories Memories (one for data and one for instructions). It is compati ble with the software base of the M68000 family. It Motorola manufactures a variety of DRAMs and fast has been endorsed as a platform for future products SRAMs using CMOS and BiCMOS technologies. by customers including Apple Computer Inc., Bull, The company has developed a strategic supply posi Commodore, Hewlett-Packard/Apollo, NeXT, Nix- tion in DRAMs as a part of its technology agreement dorf, and Unisys. with Toshiba. Motorola is producing 1Mb DRAMs in two of its own fabrication faciUties and in its joint venture with Toshiba in Sendai, Japan. A variety of Motorola's 88000 reduced-instruction-set computing microcomponents also are produced at ths site. (RISC) family of 32-bit microprocessors, first introduced in 1988, has been endorsed by more than 50 computer and telecommunications systems According to Dataquest estimates. Motorola climbed manufacturers, with more than 20 systems already to 9th in the worldwide MOS memory market with a announced. More than 1,500 software packages are market share of 3.0 percent in 1990, up from a under development for the 88000, usmg its applica 12th-place ranking and a 2.5 percent market share in tions software compatibility standard. The company 1989. plans to release its second-generation RISC engine, die 88110, during fiscal 1991. Based on Symmetric Superscaler technology, the 88110 will permit instruc General Systems Products tions to be executed simultaneously and will also eliminate instruction-sensitive performance degrada The General Systems sector includes the Motorola tion foimd in competing RISC processors. Cellular group and the Motorola Computer Systems group, formerly called Four-Phase Systems before its acquisition by Motorola in 1982. TTie General Sys As a part of a proposed three-way technology alliance tems sector was the fastest-growing sector for Moto among Apple, IBM Corporation, and Motorola, the rola in fiscal 1990, with sales increasing 39.2 percent companies announced in July 1991 that Motorola will to $2.6 biUioa The sector accounted for 24.3 percent codesign and manufacture a single-chip implementa of Motorola's total revenue in fiscal 1990, up from tion of IBM's RS/6000 Power Architecture to be the 19.8 percent that the sector's revenue accoimted called Power PC. The new RISC chip will be the for in 1989. hardware base of a new entry-level software product to be developed and marketed by Apple and IBM. It will also be the base hardware for future Apple The Cellular group produces mobile and portable Macintosh computers. This chip will become the third subscriber products and telephone systems, conven high-performance processor platform in Motorola's tional car telephone systems, electronic mobile portfolio, joining die 68000 and 88000 families. exchanges, IMTS car telephones, and low-density cellular base stations. As a leader in the fast-growing cellular telephone industry. Motorola is one of the top In 1989, the CPUAX, the new superdup containing suppliers of celltilar telephone systems as well as 4 million transistors, was designed by TRW and fabri mobile and portable phones. Motorola is the market cated by Motorola under the U.S. Department of leader in cellular telephones, garnering a 15.2 percent Defense Very High Speed Integrated Circuits market share with $400 million in revenue in 1990. (VHSIC) Phase 2 program. This 0.5-micron device More than half of the company's cellular revenue can perform 200 mflops and can automatically con comes from outside the United States. Motorola figure and repair itself. Originally intended by TRW believes that in many underdeveloped countries with for defense and space applications, the processing limited wireline systems, cellular radiotelephones knowledge will be used by Motorola in future com may become the principal telecommunications mercial products. system.

The MicroTAC personal telephone, introduced in offered alone and, increasingly, in systems, which 1989, continues to grow in popularity. One of the have been configured to transmit information between smallest and Ughtest cellular telephones currently on dispersed business machines, terminals, and other the market, the MicroTAC is the size of a checkbook peripheral devices, and host computers. Codex also and fits into a pocket or purse while offering the same sells communications products that it does not power, features, and performance as larger cellular manufacture. phones. The MicroTAC won Japan's 1990 foreign product design award from the Ministry of Interna Codex was active in 1990 with the addition of a host tional Trade and Industry. Motorola is currently test of new products. The Codex 3600 Communications ing a new cellular call handling system, the Narrow platform is a new proprietary communications plat Band AMPS, which has the potential to multiply form that can be configured as a 24,000-bps modem cellular system capacity more than threefold using or a digital transmission device, offering customers existing cellular standards. increased flexibiUty. The platform is complemented by two new releases: the 3500 Digital Service Unit/ The Computer Systems group develops, manufac Channel Service Unit and a terminal adaptor for the tures, markets, and services multiuser, supermicro- Integrated Services Digital Network (ISDN). Release class computers and board-level products. The 3 of the Codex 9800 Network Management System group's products are based on industry standards, offers an operational Interface kit that allows the such as the VMEbus hardware standard, the UNIX integration of non-Codex products. Interfaces were operating system, and industry-standard peripheral also released for the "supermanagers" offered by interfaces. Computer products are marketed to end- AT&T, Digital Equipment Corporation, and IBM. user customers, OEMs, VARs, and distributors world wide. Motorola's 68000 microprocessors and the UDS manufactures and sells data communications 88000 series RISC microprocessors are at the core of modems, multiplexers, digital data systems (DDS) the VME board-level products. service units, and ISDN equipment UDS' 9,600-bps V.32 modems, introduced in 1989, continued to gain In 1990, the MultiPersonal Computer was introduced popularity in 1990 as shipments more than doubled. by the Computer Systems group. Based on the 88000 The V.32 modems, which are of the plug-in variety RISC microprocessor, AT&T's UNIX operating sys and support the IBM PS/2 computer family, won tem, and the X Window graphics standard developed international support with major orders coming from by Massachusetts Institute of Technology, the Japan, Germany, and Egypt. MultiPersonal Computer is designed to integrate the commercial desktop computer into the office environ ment. Features include the MultiPersonal Image Government Electronics Products Exchange, which allows users to send and receive The Government Electronics group is engaged in the facsimile documents on-line and route them to the design, development, and production of electronic proper user. Also in 1990, Motorola began full-scale systems and products. During tiscal 1990, it production of the MVME165, a VME processor accounted for 6.3 percent of Motorola's total revenue. module built around the company's 68040 The group produces diversified military and space microprocessor. The MVME165 is designed for electronics equipment, including aerospace telecom embedded control and distributed real-time munications systems, military communications equip applications. ment, radar systems, data links, display systems, posi tioning and navigation systems, instrumentation products, countenneasuies systems, missile guidance Information Systems Products equipment, electronic ordnance devices, and drone The Information Systems Products segment electronic systems. According to Dataquest, Motorola accounted for 5.5 percent, or $599 million, of Moto ranked second in the worldwide military/aerospace rola's total revenue for fiscal 1990. The products are semiconductor market in 1990, garnering a 6.7 per designed and manufactured by Codex Corporation cent market share. and Universal Data Systems Inc. (UDS). Major contracts awarded in 1990 included a Codex manufactures and sells high-speed leased-line $78.5 million contract for the FMU-139 fuze and a and dial modems; data/voice, time division, and $36.9 million contract for the MK45 target-detecting statistical multiplexers; network management and device used on die Standard missile. A new product control systems; X.25 networking equipment; and introduced in 1990 was the latest model of the Light LAN interconnection products. These products are weight Satellite Terminal system, the LST-5C. The

LST-5C radio weighs only 8.5 pounds and provides farm equipment manufacturers. In 1990, the group full power to establish and maintain a worldwide began production of new programs in passenger car satellite communications link with only the use of a and light vehicle applications with Chrysler/Jeep and hthium battery. Ford Motor Company. The group also started ship ping diesel engine control models to Cummins Engine Co. and Vehicle Management and Control Automotive and Industrial Electronics (V-MAC) modules to Mack Trucks Inc. The Automotive and Industrial Electronics group manufactures and markets soUd-state electronic igni tion systems, engine management controls, sensors, Further Information automotive instruments, and other automotive electronic products. These products are sold to For further information about Motorola's business OEMs, including foreign and domestic automobile segments, please contact the appropriate Dataquest manufacturers, heavy vehicle manufacturers, and industry service.

Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars)

1986 1987 1988 1989 1990 Five-Year Revenue 5,888.0 6,727.0 8,250.0 9,620.0 10,885,0 Percent Change 8.18 14.25 22.64 16.61 13.15

Capital Expenditure 567.0 658.0 899.0 1,094.0 1,256.0 Percent of Revenue 9.63 9.78 10.58 11.37 11.54

R&D Expenditure 481.0 524.0 665.0 810.0 1,008.0 Percent of Revenue 8.17 7.79 8.06 8.42 9.26

Number of Employees 94,400 97,700 102,000 104,000 115,400 Revenue ($K)/Employee 62.37 68.85 80.88 92.50 94.32

Net Income 194.0 308.0 445.0 498.0 499.0 Percent Change 169.44 58.76 44.48 11.91 0.20

1990 Fiscal Year Ql Q2 Q3 Q4 Quarterly Revenue 2,533.0 2,715.0 2,703.0 2,934.0 Quarterly Profit 127.0 161.0 102.0 1,095.0

Source: Motorola Incoiporated Aonual Reports Dataquest (October 1991)

Table 2 Revenue by Geographic Region (Percent)

Region 1986 1987 1988 1989 1990 North America 71.31 67.94 63.85 59.65 55.70 International 28.69 32.06 36.15 40.35 44.30

Source: Motorola Incorporated Annual Reports

Schaumberg, Illinois Communications products 1990 SALES OFFICE LOCATIONS Seguin, Texas Automotive electronics products North America—209 Tempe, Arizona Europe—^21 Semiconductor products, general information Japan—4 system products ROW—26 Vega Baja, Puerto Rico Communications products "WiUowdale, Canada Communications products

MANUFACTURING LOCATIONS Europe Basingstoke, England North America Communications products Bordeaux, France Albuquerque, New Mexico Semiconductor products Communications products Camberly, England Arlington Heights, Illinois Communications products Cellular telephone products Copenhagen, Denmark Austin, Texas Communications products CMOS logic, MOS digital/analog, ASICs, MCUs, E. Kilbride, Scotland FSRAMs, complex MPUs MCUs, logic, MOS digital/analog, MPUs, memory Boynton Beach, Florida Flensburg, Germany Communications products Communications products Carlisle, Pennsylvania Munich, Germany Communications products Semiconductor products Chandler, Arizona Stotfield, England Semiconductor products General information system products Cupertino, California Swindon, England General information system products Cellular telephone products Elma, New York Taunusstein, Germany Automotive electronics products Communications products Fort Worfli, Texas Toulouse, France Communications products Power products, telecom, consumer, regulators, op Huntsville, Alabama amps, auto, rectifiers Modems Lawndale, CaUfomia Asia/Pacific Semiconductor products Mansfield, Massachusetts Aizu Wakamatsu, Japan Data communications products Logic, power, standard cells, MCUs, memory Mesa, Arizona Chung Li, Taiwan MPUs, ASICs, DRAMs, MOS digital/analog, Communications products, semiconductor products telecom, regulators, op amps, automotive bipolar Kowloon, Hong Kong logic, gate arrays, logic Semiconductor products Mt Pleasant, Iowa Kuala Lumpur, Malaysia Communications products Semiconductor products Northbrook, Illinois Manila, Philippines Automotive electronics products Communications products, semiconductor products Phoenix, Arizona Melbourne, Australia Power products, RF power products, small-signal Communications products sensors, thyristors, TMOS power, Zener diodes, Penang, Malaysia rectifiers Communications products Plantation, Florida Sendai, Japan Communications products DRAMs, SRAMs, FSRAMs, ASICs, MCUs

Seoul, Korea Motorola de Mexico S.A. (Mexico) Communications products, semiconductor products Motorola Israel Ltd. (Israel) Seremban, Malaysia Motorola Stomo S.A. (Mexico) Small-signal products Singapore Communications products Tokyo, Japan Communications products ALLIANCES, JOINT VENTURES, AND LICENSING AGREEMENTS ROW Arad, Israel Communications products 1991 Guadalajara, Mexico Power products Apple Computer Inc. and IBM Corporation Leon, Mexico Motorola signed a preliminary technology agree Communications products ment with Apple and IBM to share technology in San Jose, Costa Rica the production of a new Motorola-produced RISC Commimications products chip that wiU be the hardware base of a new Tel Aviv, Israel entry-level software product to be developed and Communications products, general information sold by IBM and Apple. This chip will also serve system products as the base hardware for future Apple Macintosh computers.

GRID Systems Motorola and GRID signed an agreement allowing SUBSIDIARIES Motorola's Mobile Data division to become an official VAR for GRiD's laptop computer. North America Integrated Micro Products Ltd. Codex Corporation (United States) Motorola and Integrated Micro Products signed an Motorola Canada Ltd. (Canada) OEM agreement involving a special adaptation of Motorola Components de Puerto Rico Inc. (Puerto the latter's fault-tolerant UNIX for use in Motoro Rico) la's trunked radio systems for police and emer Motorola Credit Corp. (United States) gency radio services. Motorola International Corp. (United States) Motorola International Development Corp. (United Lansdale Semiconductor Inc. States) Lansdale purchased the exclusive rights to Motorola Portatiles de Puerto Rico Inc. (Puerto Rico) manufacture the DTL, HTL, RTL, and TTL mili Motorola Portavoz de Puerto Rico Inc. (Puerto Rico) tary integrated-circuit series from Motorola. Motorola Telcarro de Puerto Rico Inc. (Puerto Rico) Universal Data Systems (United States) Lockheed Motorola and Lockheed will jointly conduct the Europe Iridium global personal communications project Motorola GmbH (Germany) Lockheed will supply the 77 teleconununications Motorola Ltd. (United Kingdom) satellites for the Iridium system. Motorola Semiconducteurs S.A. (France) Northern Telecom Limited Motorola and Northern Telecom signed an agree ROW ment to develop major enhancements to their exist Motorola Asia Ltd.. (Hong Kong) ing cellular products for global markets. Motorola Electronics Pte. Ltd. (Singapore) Motorola Electronics Taiwan Ltd. (Taiwan) Ontario Systems Corp. Motorola Korea Ltd. (South Korea) Ontario signed an agreement with Motorola hcens- Motorola Malaysia Sdn. Bdh. (Malaysia) ing Ontario to sell Motorola's Delta 8000 RISC- Motorola Semiconductor Sdn. Bdh. (Malaysia) based systems.

OSC Communications Corp. Philips International Motorola and OSC Communications agreed to Motorola and Philips signed an agreement to sup cooperate in developing open cellular systems ply a full-screen, full-motion video IC for CD- interface standards for worldwide cellular tele Interactive appUcations. phone markets. Synopsys Inc. PacTel Corp. Motorola and Synopsys signed a technology part Motorola and PacTel signed an agreement to con nership agreement to joindy develop software duct an extensive field test and market trial of the libraries and models for Motorola's ECL ASICs. code division multiple access (CDMA) digital cel lular telephone technology. Tekelec Tekelec signed an agreement to supply Motorola Softsel Computer Products Ltd. with communications test equipment Softsel signed an agreement with Motorola allow ing the former to distribute Motorola's Delta and 1989 M88000 RISC systems in the United Kingdom. Digital Equipment Corporation (DEC) Tech Data Corp. The companies will jointly design a fiber- Motorola named Tech Data as a distributor of its distributed data interface chip set that Motorola Altair wireless ethemet products. will manufacture and mariceL Unitrode Corp. IBM Motorola and Unitrode signed a technology part Motorola will fund and assign personnel to an nership agreement to develop proprietary tech R&D program for an X-ray lithograph project niques to be used in the manufacture of direct wafer bonded silicon wafers. Interphase Corp. Motorola bought 20 percent of this disk controller XcelleNet Inc. maker. Motorola and XcelleNet signed a joint marketing agreement providing network access and informa Oracle tion delivery capabilities for widely distributed Oracle will port its popular ORACLE relational organizations. database management system and related ORACLE tools to Motorola's M88000-based com puter systems. 1990 Philips International BT Tymnet Inc. The companies will cooperate on VSLI integrated BT Tymnet awarded Motorola a contract to pro circuits for interactive compact discs. vide networking for the Coverage PLUS veWcle communications system. Thomson-CSF Thomson-CSF wiU standardize its military and IBM defense products to Motorola's M88000 RISC Motorola and IBM formed a joint venture to pro microprocessor family. vide a nationwide radio data information ser vice in the United States. The new service, called 1988 ARDIS, will give companies with mobile work forces access to company computer databases and Data General information systems through two-way radio data Data General is to develop an ultrahigh-speed terminals. version of the M88000 RISC microprocessor family. Interphase Interphase signed a three-year OEM contract with Omnirel Motorola valued at $8 million. The two companies jointly introduced power MOSFET devices intended for military Liant Software appUcations. The companies reached a two-year agreement for Motorola to sell Liant's RM/COBOL-85 program Unisoft Group ming language system to users of Motorola's Unisoft is acting as Motorola's exclusive agent for UNIX-based computer systems. future products based on UNIX Release V.

James Donnelly Executive vice president and director of Personnel MERGERS AND ACQUISITIONS David W. Hickie 1991 Executive vice president and chief corporate staff officer UNIX Systems Laboratories Motorola joined 10 other companies in the pur David G. Wolfe chase of 20 percent of the stock of AT&T-owned Executive vice president and general manager, UNIX Systems Laboratories. Government Electonics group Edward F. Staiano President and general manager. General Systems sector KEY OFFICERS

George M. C. Fisher Chairman of the board and chief executive officer Gary L. Tooker PRINCIPAL INVESTORS President and chief operating officer Christopher B. Galvin Information is not available. Senior executive vice president and assistant chief operating officer Donald R. Jones Executive vice president and chief financial officer FOUNDERS Arnold S. Brenner Executive vice president and general manager, Japanese group Information is not available.

Table 3 Comprehensive Financial Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data)

Balance Sheet 1986 1987 1988 1989 1990 Cash 42.0 47.0 195.0 231.0 265.0 Receivables 851.0 1,101.0 1,400.0 1,683.0 1,857.0 Marketable Seciirities 143.0 211.0 145.0 202.0 312.0 Inventory 819.0 909.0 1,144,0 1,173.0 1,245.0 Other Current Assets 384.0 439.0 496.0 626.0 773.0 Total Current Assets 2,239.0 2,707.0 3,380.0 3,915.0 4,452.0 Net Property, Plants 2,140.0 2,329.0 2,854.0 3,337.0 3,778.0 Other Assets 303.0 285.0 476.0 434.0 512.0 Total Assets 4,682.0 5,321.0 6,710.0 7,686.0 8,742.0 Total Current Liabilities 1,371.0 1,668.0 2,691.0 2,751.0 3,048.0 Long-Term Debt 334.0 344.0 343.0 755.0 792.0 Other Liabilities 223.0 301.0 301.0 377.0 645.0 Total Liabilities 1,928.0 2,313.0 3,335.0 3,883.0 4,485.0 Common Stock 385.0 388.0 389.0 391.0 395.0 Odier Equity 817.0 843.0 851.0 878.0 929.0 Retained Emiings 1,552.0 1,777.0 2,135.0 2,534.0 2.933.0 Total Shareholders' Equity 2,754.0 3,008.0 3,375.0 3,803.0 4,257.0 Total Liabilities and Sharehol ders' Equity 4,682.0 5,321.0 6,710.0 7,686.0 8,742.0

Source: Motorola Incorporated Animal Reports Dataquest (October 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data)

Income Statement 1986 1987 1988 1989 1990 Revenue 5,888.0 6,727.0 8,250.0 9,620.0 10,885.0 U.S. Revenue* 4,124.0 4,482.0 5,269.0 5,997.0 6,063.0 Non-U.S. Revenue* 1,764.0 2,245.0 2,981.0 3,623.0 4,822.0 Cost of Sales 3,647.0 4,059.0 5,040.0 5,905.0 6,822.0 R&D Expense 481.0 524.0 665.0 810.0 1,008.0 SG&A Expense 1,431.0 1,659.0 1.957.0 2,289.0 2,414.0 Capital Expense 567.0 658.0 899.0 1,094.0 1,256.0 Pretax Income 265.0 416.0 612.0 646.0 666.0 Pretax Margin (%) 4.50 6.18 7.42 6.72 6.12 Effective Tax Rate (%) 46.00 40.00 34.00 34.00 34.00 Net Income 194.0 308.0 445.0 498.0 499.0 Shares Outstanding, Millions 126.5 128.9 129.7 130.0 131.7 Per Share Data Earnings 1.53 2.39 3.43 3.83 3.80 Dividend 0.64 0.64 0.67 0.76 0.76 Book Value 21.77 23.34 26.02 29.25 32.32

*Dataquest estimate Sonice: Motorola Incorporated Aimual Reports Dataquest (October 1991)

Table 5 Key Financial Ratios Fiscal Year Ending in December

Key Financial Ratios 1986 1987 1988 1989 1990 Liquidity Current (Times) 1.63 1.62 1.26 1.48 1.46 Total Assets/Equity (%) 170.01 176.89 198.81 202.10 205.36 Current Liabilities/Equity (%) 49.78 55.45 79.73 69.79 71.60 Total Liabilities/Equity (%) 70.01 76.89 98.81 102.10 105.36 Profitability (%) Return on Assets 4.14 5.79 6.63 6.48 5.71 Return on Equity 7.04 10.24 13.19 13.09 11.72 Profit Margin 3.29 4.58 5.39 5.18 4.58 Other Key Ratios R&D Spending % of Revenue 8.17 7.79 8.06 8.42 9.26 Capital Spending % of Revenue 9.63 9.78 10.58 11.37 11.54 Employees 94,400 97,700 102,000 104.000 115,400 Revenue (K)/Employee 62.37 68.85 80.88 92.50 94.32 Capital Spending % of Assets 12.11 12.37 13.01 14.23 14.37 Source: Motorola Incorporated Annual Reports Dataquest (October 1991)

14 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011021 National Semiconductor Corporation 2900 Semiconductor Drive Santa Clara, California 95052-8090 Telephone: (408) 721-5000 Fax: (408) 732-9742 Dun's Number: 04-147-2986 Date Founded: 1959

CORPORATE STRATEGIC DIRECTION The company reported revenue of $1.7 bUlion* for the fiscal year ending in May 1991, an increase of 1.6 percent from the previous year. National reported National Semiconductor Corporation was formed in a net loss of $151.4 million for fiscal 1991. The 1959 in Danbury, Connecticut, as a manufacturer of year's financial results reflect the impact of the res transistors. In 1967, when Charles E. Sporck was tructuring activity that the company annotmced in named president and CEO, the company moved its August 1990, including a one-time pretax charge of headquarters to Santa Clara, CaUfomia, and began $143.6 million, taken in the first quarter. Following producing proprietary integrated circuits (ICs). In this restructuring, the remaining three quarters January 1991, Mr. Sporck announced his retirement showed modest but improved profitability. The com and Dr. Gilbert F. Amelio was named president and pany employs 29,000 people worldwide. CEO. Dr. Amelio took over in May 1991. National considers research and development essen Under Dr. Amelio, National has been reorganized into tial to the future profitability of the company. For two major business groups, the Communications and 1990, R&D expenditure was $198.6 million, which Computing Group and the Standard Products Group. equates to 11.67 percent of revenue. In addition to the two groups, Military/Aerospace operates as a separate division. This decentralization National's primary process technology is built on a is an attempt by the company to provide principal core CMOS process called M2CMOS. To this core, operating groups with fuU responsibility and control modules ate added for analog, E2 memory, EPROM, of their operations. and BiCMOS applications. The woridiorse M2CMOS process appears across the board in several product lines. National offers a range of M2CMOS processes The Communications and Computing Group is struc with design rules ranging down to 0.8 microiL The tured aroimd applications-focused product lines that company plans to further shrink M2CMOS to use the company's VLSI technologies to serve 0.5 micron by the middle of the decade. M2CMOS selected vertical markets. The group is made up of six uses dual-layer metalization with an optional third businesses: Innovative Products, Local Area Net layer of metal. works (including the Computer Enhancement Group and board level products). Mass Storage, Embedded Control, Office Automation (formerly known as In addition to M2CMOS is the company's high- Imaging), and ASIC. performance core VLSI bipolar process. Advanced Single-Poll Emitter-Coupled Technology (ASPECT). ASPECT and its BiCMOS module. Advanced The second major business group is the Standard BiCMOS (ABiC), are used for high-performance gate Products Group, which focuses on broad, horizontal array and communications devices. ASPECT has markets. The Standard Products Group is made up of been scaled from 2.5 microns to 0.8 micron and will large, high-volimie product lines, including digital be scaled in the future to 0.5 micron. logic, linear, memory and programmable products, and discretes. *AI1 dollar amounts are in U.S. dollais.

In advanced packaging technology, the company uses come largely from the Communications and Comput a range of surface-mount devices including small- ing Group, grew 44 percent in calendar year 1990, outline packages, plastic chip carriers, and both lead placing National ninth in the worldwide market share and leadless ceramic chip carriers. National also com rankings in this category. mercialized tape-automated bonding with the development of TapePak. Innovative Products Division More detailed information is available in Tables 1 and The Innovative Products Division is a new division 2, which appear after "Business Segment Strategic within the Communications and Computing Group Direction" and present corporate highlights and reve designed to service new and developing businesses. nue by region and distribution channel. Tables 3 The product lines currently in this division are: ^^e- through 5, at the end of this backgrounder, present less Communications (formerly known as Digital comprehensive financial information. Mobil Radio), Advanced Communications (FDDI), Telecom, and PC Products.

Under the Innovative Products Division, the BUSINESS SEGMENT STRATEGIC Advanced Communications Business Unit supports DIRECTION the fiber-distributed data interface (FDDI) market National introduced its BiCMOS FDDI chip set in Dataquest estimates that National Semiconductor held April 1990. In late 1990, National and Cabletron 11th place in both the 1989 and 1990 worldwide agreed to develop a transceiver to allow FDDI to be semiconductor market share rankings. The majority used for an unshielded twisted pair (UTP) transceiver. of National's semiconductor sales came firom the United States, which contributed revenue of $894 million. Asia/Pacific-ROWwas second with The Telecommimications Business Unit includes $417 million, followed by Europe with sales of National in the noncaptive analog line card market $408 million. with its COMBO family of CODECs. The COMBO I and COMBO n were developed by National and Ucensed to SGS-Thomson as a second source. The National offers analog, logic, memory, discrete, COMBO is the mdustry's first CMOS coder/decoder microcontroller, and ASIC products. Given the com circuit (CODEC filter), and National holds foiu- pany's calendar year 1990 revenue of $619 million, patents on this product Dataquest ranks National number 2 in the worldwide manufacture of analog ICs, representing 36 percent of the company's total semiconductor sales; number 4 in The Personal Computer Product line includes floppy the worldwide manufacture of bipolar digital logic disk controllers, universal asynchronous receiver sales, representing 25 percent of the company's total transmitters (UARTs), PC chips including the semiconductor sales; number 13 in the worldwide Enhanced AT, Super l^O, Video Graphics Adapter, manufacture of MOS digital, representing 35 percent and Biphase Communications Processor. of the company's total semiconductor sales; and num ber 24 in the worldwide manufacture of discrete devices, representing 4 percent of the company's total Local Area Network Division semiconductor sales. The Local Area Network Division is the largest of the six product areas. According to National, this division Communications and Computing Group has an estimated 80 percent market share of the PC LAN ethemet adapter board market The division The six divisions tmder the Communications and has introduced new LAN products, such as the 32-bit Computing Group are Innovative Products, Local SONIC (Systems-Oriented Network Interface Con Area Network, Mass Storage, Embedded Control, troller), and the ST-NIC, the industry's first single- Office Automation, and ASIC. Dataquest estimates chip lObase-T Ethemet Serial Network Interface that National's MOS microcomponent sales, which Controller.

Mass Storage Division supplier worldwide, with calendar year 1990 sales of $590 million holding a 6.4 percent market share. According to National, the Mass Storage Division grew 28 percent in fiscal year 1991. The company focuses on high-performance drives and supplies Analog Division pulse detectors, data synchronizers, encoders/ The Analog Division supports four business units: decoders, servo controllers, and disk controllers. Standard Linear Products, Systems Products, Inter face, and Custom Linear ASIC (CLASIC). Embedded Control Division The Standard Linear Business Unit produces opera National offers 4-, 8-, and 16-bit microcontrollers tional amplifiers, power management circuits (motion through its Embedded Control Division. For calendar control and voltage regulators), and data acquisition year 1990, Dataquest estimates that National ranks circuits. New products within the Standard Linear ninth as the worldwide supplier of 4-bit microcon Business Unit are high-speed VIP amplifiers, 12- trollers, with 4.7 percent of the market share; eighth bit self-caUbrating Analog to Digital and Simple as the supplier of 8-bit microcontrollers with Switchers. 3.0 percent of the market share; and foxirth as suppUer of 16-bit microcontrollers with 9.6 percent of the market share. Dataquest estimates that National's total The Linear Systems Business Unit suppUes the audio/ MOS microcontroller sales were $99 miUion in calen video and automotive markets with applications- dar year 1990, an increase of 46 percent over the specific products including video monitors and con previous year. sumer audio and other automotive applicators.

The Interface Business Unit offers both bipolar and Office Automation Division CMOS products. Product offerings include real-time The Office Automation DivisionCformerly the Imag clocks, DRAM memory management, and peripheral ing Group) manufactures image processors for laser- drivers using mixed technology. The group offers a beam printers, high-speed facsimile machines, scan range of line drivers and receivers, as well as bus ners, and other imaging peripherals needing embed circuits. Several of the transmitter-devices are based ded control processors. The group produces five on backplane transceiver logic (BTL), a technology imaging processors that range from 3 to 100 mips. invented by National. A set of four BTL-based tran These processors include the NS32CG160 Integrated sceivers and controllers for Futurebus was announced System Processor, which is designed for use in in early 1991. midrange office peripherals including page printers and scanners; the NS32FX16 Imaging/Signal Proces CLASIC, National's linear ASIC product, employs sor, designed for use in fax machines and page over ISO cells in its standard linear library, many of printers; and the NS32GX320 high-performance which are tailored to specific market segments. 32-bit Integrated System Processor, a high- National offers CLASIC capability in bipolar, CMOS, performance counterpart of the NS32FX16. and BiCMOS technologies. CLASIC addresses many mixed-signal applications and design methodologies. ASIC Division Memory and Programmable Products Division In the ASIC arena. National services market segments National's memory products sales worldwide such as ECL gate arrays, mixed-analog and digital amounted to $172 milUon in calendar year 1990. products, and BiCMOS gate arrays. Dataquest esti National's memory product line is comprised of mates that National's ASIC sales were $114 million EPROMS and EEPROMS. National offers 16Kb to in calendar year 1990. National's ASIC processes 4Mb CMOS EPROMS ranging in speed firom 90ns to include M2CMOS, ASPECT, and its BiCMOS 250ns. EEPROM densities range fiom 256 bit to module ABiC. 4Mb. National also offers fast CMOS TTLIO SRAMS ranging from 64 bit to 1MB with access Standard Products Group times of 20ns to 45ns. The programmable logic products include high-performance TTL and ECL The Standard Products Group consists of four divi PALs, as well as high-performance/high-density sions: Analog, Memory and Programmable Products, CMOS PLDs. In the CMOS market. National Logic, and Discretes. Dataquest estimates that produces CMOS GALS as well as the newly released National is the niimber one monoUthic analog IC high-density MAPL family.

Logic Division Computing Group and the Standard Products Group. The company has manufactured products in the aer National's digital logic product line spans three tech ospace industry for the past twenty years. The compa nologies bipolar: CMOS, and BiCMOS. National ny's devices have been used in satellites and lunar offers appUcation targeted high-performance logic in probes. National's products have qualified to Class S the following industry recognized standard product of the government's MIL-M-38510 specification and famihes: FACTQS, FASTr, BCT, 100k ECL. have participated in the U.S. Air Force Monitored Line program (administered by Lockheed Missiles and Space Company), which provides circuits for Discretes Division defense satellite systems. European and Japanese National has discrete manufacturing facilities located space programs also use National components. in the Philippines and Brazil.

Further Information Military/Aerospace Division For further information on the company's business National's Military/Aerospace Division functions segments, please contact Dataquest's Semiconductor independently of both the Communications and industry service.

Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars)

1987 1988 1989 1990 1991 Five-Year Revenue 1,867.9 1,432.1 1,647.9 1,675.0 1,701.8 Percent Change NA (23.33) 15.07 1.64 1.60

Capital Expenditure 94.7 154.2 277.6 182.0 97.6 Percent of Revenue 5.07 10.77 16.85 10.87 5.74

R&D Expenditure 218.9 225.6 264.8 252.4 198.6 Percent of Revenue 11.72 15.75 16.07 15.07 11.67

Number of Employees 29,200 37,700 32,200 32,700 29,000 Revenue ($K)/Employee 63.97 37.99 51.18 51.22 58.68

Net Income (24.6) 62.7 (23.2) (25.0) (151.4) Percent Change NA (354.88) (137.00) 7.76 505.60

Fiscal Year 1990 Qi Q2 Q3 Q4 Quarterly Revenue 442.7 427.4 386.8 444.9 Net Income (165.5) 3.5 3.5 5.6

Souice: Nadonal Semiconductor Coip. Annual Reports and Forms 10-K Dataquest (October 1991) Table 2 Revenue by Geographic Region (Percent)

Region 1987 1988 1989 1990 1991 North America 58.00 55.00 55.00 55.00 52.53 Europe 25.00 24.00 23.00 21.00 23.97 Asia 17.00 21.00 22.00 24.00 24.50 Source: Nationid SSemiconductor Corp. Atmual Reports and Fbrms 10-K Dataquest (October 1991)

Cadence Design Systems Inc. National is a member of Cadence's Analog Alli 1990 SALES OFnCE LOCATIONS ance to develop future CAD systems for analog and mixed-analog/digital circuits. Information is not available. Valid Logic Systems Inc. National has an agreement with Valid to jointly develop models for Simple Switcher products.

MANUFACTURING LOCATIONS 1988

Information is not available. Analogy National and Analogy will jointly develop models for Simple Switcher products. Cadence Design Systems Inc. National and Cadence Design Systems signed SUBSIDIARIES three agreements, the firsto f which is a technology partnership involving collaboration on an IC Information is not available. design system. The second is for Cadence to sup ply software to National's engineering organization for use in National's workstations. The third allows National to develop and market a fourth-generation ASIC design automation system using IC design ALLIANCES, JOINT VENTURES, AND products from Cadence. LICENSING AGREEMENTS SGS-Thomson Microelectronics B.V. 1991 SGS-Thomson and National are codeveloping ISDN devices. Hitachi Ltd. National entered into a broad patent cross-licensing agreement with Hitachi. The agreement is effective for 10 years and includes patents for products and technologies during that time frame, as well as MERGERS AND ACQUISITIONS those previously developed. 1989 1990 Ifitachi Ltd. WaferScale Integration (WSI) Hitachi Data Systems puidiased National Advanced National and WSI signed a five-year manufactur Systems fiom National Semiconductor. ing and technology exchange agreement for high speed, high-density CMOS EPROM products. ICL Inc. Additionally, National has made an investment in National sold its retail systems unit, Datachedca* WSI and is licensed to manufacture and market Systems, to ICL. worldwide certain families of WSI's high-density EPROM products.

1989 KEY OFFICERS Acer Inc. Acer and National developed an enhanced I/O chip Peter J. Sprague for use in 286 AT and 386 AT computers. Chairman of the board Hitachi Ltd. Charles E. Sporck Hitachi will second-source the FACT line of stan President and chief executive officer from 1966 to dard logic. 1991, member of the board of directors

Dr. Gilbert F. Amelio Edgar R. Parker President and chief executive officer, member of Senior vice president, Military/Aerospace • the board of directors Donald P. Beadle Kirk Pond Senior vice president. International Business Copresident, Standard Products Group Group George Scalise Patrick J. Brockett Senior vice president. Planning and Development Corporate vice president. International Business Group Richard L. Sanquini Charles P. Carinalli Senior vice president. Business Development Executive vice president, Communications and Computing Group John G. Webb David S. Dahmen Senior vice president. General Counsel and secre Treasurer tary Raymond J. Farnham President, Communications and Computing Group Michael E. Hawkins Senior vice president. Human Resources PRINCIPLE INVESTORS Don Macleod Senior vice president. Finance, and chief financial officer Information is not available. Robert B. Mahoney Controller R. Thomas Odell Copresident, Standard Products Group FOUNDERS Jim Owens Senior vice president. Quality and Strategic Opera tions Information is not available.

Table 3 Balance Sheet Fiscal Year Ending in May (Millions of Dollars) Balance Sheet 1987 1988 1989 1990 1991 Cash 189.1 147.2 228.0 128.7 192.5 Receivables 269.2 401.5 194.2 211.4 200.3 Inventory 270.1 417.0 218.9 220.0 188.4 Other Current Assets 96.5 76.1 37.3 64.9 31.4 Total Current Assets 824.9 1,041.8 678.4 625.0 612.6 Net Property, Plants 633.9 683.6 696.5 702.2 527.4 Other Assets 40.6 51.6 41.2 50.4 50.7 Total Assets 1,499.4 1,777.0 1,416.1 1.377.6 1,190.7 Total Current Liabilities 473.5 669.8 448.8 401.6 416.5 Long-Term Debt 35.7 37.3 52.2 64.2 19.9 Other Liabilities 99.1 56.3 66.6 95.0 96.0 Total Liabilities 608.3 763.4 567.6 560.8 532.4 Preferred Stock 0.1 0.1 0.1 0.1 0.1 Common Stock 51.3 53.9 51.3 51.6 52.0 Other Equi^ 687.2 142.1 108.9 73.9 (87.5) Retained Earnings 152.5 142.1 108.9 73.9 (87.5) Total Shareholders' Equity 891.1 1,013.6 848.5 816.8 658.3 Total Liabilities and Shareholders' Equity 1,499.4 1,777.0 1,416.1 1,377.6 1,190.7

Source: National Semicondactor Coip. Ammal Reports and Fonns 10-K Dataquest (October 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending in May (Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement 1987 1988 1989 1990 1991 Revenue 1,867.9 1,432.1 1,647.9 1,675.0 1,701.8 U.S. Revenue 1,080.9 799.2 908.1 921.0 894.0 Non-U.S. Revenue 787.0 623.9 739.8 754.0 825.0 Cost of Sales 1,319.1 979.9 1,280.3 1,251.1 1,294.3 R&D Expense 218.9 225.6 264.8 252.4 198.6 Restructuring Costs NA NA 53.6 (8.0) 119.6 Capital Expense 94.7 154.2 277.6 182.0 97.6 Pretax Income (9.3) 31.7 (198.5) (32.4) (149.0) Pretax Margin (%) (0.50) 2.21 (12.05) (1.93) (8.76) Effective Tax Rate (%) 46.00 35.00 34.00 NA NA Net Income (24.6) 62.7 (23.2) (25.0) (151.4) Shares Outstanding, Millions 91.7 107.7 103.1 102.7 103.4 Per Share Data Earnings (1.73) 0.49 (0.32) (0.34) (0.34) Dividends 0 0 0 0 0 Book Value 9.72 9.41 8.23 7.95 6.37

NA = Not available Source: National Semiconductor Corp. Annual Reports and Fbnns 10-K Dataquest (October 1991)

Table 5 Key Financial Ratios Fiscal Year Ending in May Key Financial Ratios 1987 1988 1989 1990 1991 Liquidity Current (Times) 1.74 1.56 1.51 1.56 1.47 Total Assets/Equity (%) 168.26 175.32 166.89 168.66 180.87 Current Liabilities/Equity (%) 53.14 66.08 52.89 49.17 63.27 Total Liabilities/Equity (%) 68.26 75.32 66.89 68.66 80.87 Profitability (%) Return on Assets (1.64) 3.53 (1.64) (1.81) (12.72) Return on Equity (2.76) 6.19 (2.73) (3.06) (23.00) Profit Margin (1.32) 4.38 (1.41) (1.49) (8.90) Other Key Ratios R&D Spending % of Revenue 11.72 15.75 16.07 15.07 11.67 Capital Spending % of Revenue 5.07 10.77 16.85 10.87 5.74 Employees 29,200 37,700 32,200 32,700 29,000 Revenue ($K)/Employee 63.97 37.99 51.18 51.22 58.68 Capital Spending % of Assets 6.32 8.68 19.60 13.21 8.20

NA = Not available Source: National Semiconductor Corp. Annual Reports and Forms 10-K Dataquest (October 1991)

NEC Corporation 33-1 Shiba 5-chome Minato-ku, Tokyo 108, Japan Telephone: (03) 454-1111 Fax: (03) 452-6351 Dun's Number: 00-183-6014 Date Founded: July 1899

operating results. NEC operates 56 consoUdated sub CORPORATE STRATEGIC DIRECTION sidiaries, 62 manufacturing plants, and more than 300 sales offices in Japan. Domestic sales in 1990 totaled NEC Corporation (known as Nippon Electric Com ¥2.55 trillion, accounting for 74.0 percent of total pany Ltd. prior to April 1, 1983) was founded in sales. Overseas, NEC markets its products through a 1899 to manufacture telephone sets and switchboards. network of 68 subsidiaries and affiliates in 28 coun NEC is a leading global supplier of a broad range of tries. Overseas sales increased 15.0 percent in 1990, communications systems and equipment, computers chmbmg to ¥892.1 billion, or 25.9 percent of total and industrial electronic systems, electron devices, revenue. consumer electronics, and information services. The company bases its activities on the synergistic Capital expenditure increased 20.3 percent during integration of computers and communications fiscal 1990 to ¥343.8 biUion, representing 10 percent systems. of total revenue. Research and development expendi ture totaled ¥552.9 bUUon for fiscal 1990, represent NEC divides its operations into five main product ing 16.1 percent of revenue. groups: Communications Systems and Equipment, Computers and Industrial Electronic Systems, Elec More detailed information is available in Tables 1 and tron Devices, Home Electronic Products, and Other 2, which appear after "Business Segment Strategic Operations. In 1990, the Computers and Industrial Direction" and present corporate highhghts and reve Electronic Systems group remained the largest in nue by region and distribution channel. Information terms of percentage of total revenue, with sales total on revenue by distribution chaimel is not available. ing ¥1.5 trilhon (U.S.$9.5 billion), which accounted Tables 3 through 5, at the end of this backgroimder, for 43.7 percent of total revenue. (Percentage changes present comprehensive financial information. refer only to ¥ amounts; U.S.$ percentage changes will differ because of fluctuations in Dataquest exchange rates.) This figure was up 13 percent from the group's 1989 revenue of ¥1.3 trillion (U.S.$8.4 billion). The BUSINESS SEGMENT STRATEGIC biggest rate of increase in 1990 came from the Other DIRECTION Operations group, whose 1990 revenue of ¥192.9 bil lion represented a 23.7 percent increase over the 1989 total of ¥155.9 billion. Computers and Industrial Electronic Systems NEC's Computers and Industrial Electronic Systems NEC reported consolidated revenue for fiscal year group manufactures, designs, and markets a diverse ending March 31, 1990, of ¥3.44 trillion, or approxi product line of mainframe computers, personal com mately U.S.$22.2 biUion, up 11.7 percent from fiscal puters, small business computers, peripherals, soft 1989's total of ¥3.08 trillion (U.S.$19.5 billion). Net ware, and industrial electronics systems. In 1990, income rose 32.1 percent from ¥64.48 billion sales of computers and industrial electromc systems (U.S.$408.1 miUion) in fiscal 1989 to ¥85.22 billion rose 13.1 percent to ¥1.51 trillion, accounting for (U.S.$539.4 miUion) in fiscal 1990. 43.8 percent of total sales.

NEC points to the strength of the domestic Japan NEC introduced a number of new products designed ese economy as a major contributor to its strong to strengthen and expand its product line in 1990. In

February, NEC released the NEC System 3600 series total IC, the MOS Digital, and the MOS Logic of large-scale maintrame computers, a series featuring markets with respective market shares of 8,9, 10.8, bipolar complemeniaiy metal oxide semiconductors and 11.3 percent (BiCMOS) to increase processing speed and reduce power consumplioiL NEC also added 12 new models During fiscal 1990, NEC began production of 4Mb to its popular PC-9800 series. Designed for scientific DRAMs at its manufactming facilities in Yamaguchi and engineering calculations, image processing, and and Kyushu. Production of 4Mb DRAMs also began (xmimunication that requires high-speed processing, in 1990 at NEC's new Hiroshima manufacturing the PC-H98 features new extended standard architec planL Other major accomplishments for the group in ture, a 32-bit bus architecture offering a faster data 1990 included a joint ventine with AT&T Microelec transfer rate. OtlKr PC-9800 series addidons include tronics of the United States, involving cooperation on the PC-9801N NOTE laptop and a new addidon to semiconductor technologies such as gate arrays; the the PC PowerMate series that adopts the cxtendecd development of the world's fastest 4Mb SRAM; the industry standard architecture. In the software market, introduction of the company's first 32-bit RISC NEC released SPECDESSIN, a development support products, die VR3000 and the VR30I0; the release of system for business-application software that a 75mW helium-neon (He-Ne) laser designed for improves efficiency in system design for mainframes. spectral analysis and holography; and the release of a new galhum arsenide prescaler IC for VSATs that responds at frequencies up to 14 GHz. NEC's PC product line centers around the PC-9800 and PowerMate scries. According to Dataquest esti mates, the PC-980] XXXX was the sixth-rated model Communications Systems and Equipment in the 1990 worldwide desktop computer market, with a market share of 2.09 percent based on 312,000 Communications systems are an integral part of units shipped. NEC ranked third in the 1990 world NEC's vision of "C&C," the company's corporate wide desloop market, trailing only IBM Corporation strategy of integrating computers and communicatioiL and Apple Computer Inc. NEC garnered 7.85 percent NEC's product line in the communications industry of the market with sales totaling $2.5 biUion. The includes digital switching systems, fiber-optic and PC-9801 N/NV laptop computer was the leading radio transmission systems, space electronics, mobUc model in the 1S)90 worldvride laptop D/C market, communications systems, customer premises equip bringing in $319-9 miUion in factory revenue and an ment, and broadcast equipment. The Commuiucations 8.11 percent market share. NEC ranked second over Systems and Equipment group's revenue increased all in the 1990 woridwide laptop D/C market with an 9.1 pcrccru in 1990 to ¥875 billion, representing 18.17 percent market share and $715.6 million in 25.4 percent of total revenue. factory revenue. NEC is also active in the computer storage market; Dataquest estimates that NEC ranked Dataquest estimates that NEC ranked fifth in the 1990 sixth in the total rigid disk drive market, with North American PBX systems market with 309,400 2.1 miUioQ units shipped in 1990 and a 7.1 percent lines installed and a 6.9 percent market share. NEC market share. The company's strongest entry in [he also ranked third in 1990 in Segment 5 of the North storage inark^t is 8- to 14-inch disk drives; NEC American facsimile equipment market with a ranked third in the worldwide market in 1990 with a 7.8 percent market share. 13.8 percent market share. Major contracts m 1990 included an order for an optical submarine cable system, which will link Electron Devices Japan, Hong Kong, and the Republic of Korea. Two NEC satcUites were released in 1990 by Japan's NEC is active in the production of various memories, National AeroSpace Development Agency: the microcontrollers, microcomponents, integrated cir Momo-Ib marine observation satellite and the Fuji 2 cuits (ICs), gate arrays, and logic devices through its amateur radio satellite. NEC also strengthened its Electron Devices product group. TTie group's sales Integrated Services Digital Nctwoii (ISDN) product increased 7,1 percent lo ¥605,9 billion in 1990, com line in fiscal 1990 with the introduction of two new prising 17.6 percent of total revenue. Dataquest esti products: the (34 fs:simile NEFAX D800, (ksigned mates that NEC was the world leader in semiconduc to meet the needs of ISDN services primarily in tor sales m 1990, possessing an 8.4 percent maiicet domestic financial institudotis and local govenmient, share based on $4.9 billion in factory revenue. NEC and the Advanced PK Series digital key telephone was also the worldwide market leader in 1990 in the system.

Home Electronics Products revenue increased 23.7 percent to ¥193 billion, representing 5.6 percent of total revenue. Home electronics products in NEC's portfoho include color TV receivers and projectors, VCRs, videodisk players, and other small home electronics devices The VAN information system has continued to gain such as electronic diaries. The group's sales increased widespread acceptance both in Japan and internation 16.8 percent to ¥264 biUion in 1990, and accounted ally. The number of subscribers to the company's for 7.7 percent of total revenue. NEC has been active PC-based VAN service doubled during 1990; flie cur in the introduction of 4he state-of-the-art broadcast rent total is more dian 100,000 subscribers. In 1990, satellite visual audio home entertainment system. In NEC released the C&C Marine VAN Service, which 1990, the PARABOLA series of home-use direct provides ships at sea with the same communications broadcast satellite receiver systems was released, con services offered to onshore subscribers. NEC also sisting of antennas, tuners, televisions, VCRs, and released the AF-8410P memory testing system in projection televisions using the new tuning systems. 1990, which boasts the world's highest test rate of 500 MHz. Other Operations Other services offered by NEC include value-added Further Information network (VAN) information services, electrical con nectors, and measuring and testing systems. The For further information about the company's business Other Operations group was NEC's fastest-rising segments, please contact the appropriate industry group in terms of revenue in fiscal 1990. The group's service.

Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars)

1986 1987 1988 1989 1990 Five-Year Revenue 13,501 17,159 22,220 23,510 22,179 Percent Change 46.24 27.09 29.49 5.81 (5.66)

Capital Expenditure 1,648 1,326 2,016 - 2,148 2,176 Percent of Revenue 12.20 7.73 9.07 9.14 9.81

R&D Expenditure 1,836 2,629 3,496 3,657 3,499 Percent of Revenue 13.60 15.32 15.73 15.56 15.78

Number of Employees 95,796 101,227 102,452 104,022 104,022 Revenue ($K)/Employee 140.94 169.51 216.88 226.01 213.22

Net Income 153 103 205 485 539 Percent Change (42.92) (32.55) 98.54 137.07 11.26

1990 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue N/A NA NA NA Quarterly Profit NA NA NA NA

NA = Not available Source: NEC Coipoiation Annual Rq)orts Dataquest (October 1991)

Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 Japan 67.00 72.00 73.00 75.00 74.00 All Others 33.00 28.00 27.00 25.00 26.00

Source: NEC Cotpoiation Annual Reports Dataquest (October 1991)

NEC Kiunamoto ICs 1990 SALES OFFICE LOCATIONS NEC Kyushu ICs Japan—More than 300 NEC Miyagi Overseas—170 Communications equipment, related components NEC Nagano Home electrical appliances NEC Niigata Computers, related systems MANUFACTURING LOCATIONS NEC Oita ICs NEC Radio & Electronics Japan Communications equipment, related components NEC Saitama Ando Electric Communications equipment, related components Measiuing and testing systems Anelva Corp. NEC San-ei Instruments Semiconductor manufacturing equipment, vacuum Medical electronic eqmpment, industrial measuring equipment systems Amitsu Corp. NEC Shizuoka Communications and electronic equipment, Communications equipment, computer terminals measuring instruments NEC Tohoku Anten Kogyo Communications equipment, computer terminals Antennas, related equipment NEC Toyama Japan Aviation Electronics Electronic devices Electrical connectors, electronic equipment NEC Yamagata Kaijo Denki ICs, discrete semiconductor devices Lidustrial marine equipment NEC Yamaguchi NEC Akita ICs ICs, discrete semiconductor devices NEC Yonezawa NEC Data Terminals Communications equipment, computer terminals Computer terminals Nico Electronics NEC Fukui Special communications equipment, vending ICs, discrete semiconductor devices machines NEC Fukuoka Nippon Avionics ICs Electromc equipment for aircraft NEC Fiikusbima Nippon Electric Glass Communications equipment, related components CRTs, other glass products NEC Gunma Nippon Electric Industry Computers, related systems Electrical machinery, precision instruments NEC Hiroshima Nitsuko Ltd. 4Mb DRAMs Communications equipment and parts NEC Home Electronics Showa Koki Seizo TVs, home electronic appUances, electronic parts Optical precision instruments NEC Hyogo Communications equipment parts Takasago Ltd. NEC Ibaraki Telephones, communications equipment Computers, related systems Tama Electric NEC Kagoshima Resistors Electronic devices Tohoku Metal Industries NEC Kansai Magnetic materials ICs, discrete semiconductor devices, electronic Tokin Corp. devices Magnetic materials, electric parts NEC Kofu Toyo Communication Equipment Development of computers Communications equipment and parts

North America

NEC America SUBSIDIARIES Faxes, printers, magnetic disk drives NEC Electronics 256K DRAMs Japan NEC Home Electronics ANELVA Corporation Home electronic products, laptop PCs Ando Electric Company Ltd. NEC Information Systems Japan Aviation Electronics Industry Ltd. Office computers, printers, etc. NEC Aldta Ltd. NEC Research Institute NEC Data Terminals Ltd. R&D center NEC Engineering Ltd. NEC Factory Engineering Ltd. Europe NEC Field Service Ltd. NEC Fukui Ltd. NEC Ireland NEC Fukuoka Ltd. ICs NEC Fukushima Ltd. NEC Semiconductor, United Kingdom NEC Gunma Ltd. 256K DRAMs NEC Home Electronics Ltd. NEC Technologies, United Kingdom NEC Hyogo Ltd. VCRs, printers, car telephones, faxes NEC Ibaraki Ltd. NEC Information Service Ltd. Asia/Pacific NEC Kagoshima Ltd. NEC Kansai Ltd. NEC Electronics Singapore NEC Kumamoto Ltd. Linear ICs, 256K DRAMs NEC Kyushu Ltd. NEC Home Electronics, Malaysia NEC Miyagi Ltd. Home electronic products NEC Nagano Ltd. NEC Semiconductor, Malaysia NEC Niigata Ltd. ICs, discrete semiconductor devices NEC Oita Ltd. NEC Technologies, Thailand NEC Radio & Electronics Ltd. Telephones NEC Saitama Ltd. PERNAS NEC Telecommunications, Malaysia NEC San-ei Instruments Ltd. Communications equipment NEC Shizuoka Ltd. Siam NEC Company (Thailand) NEC Software Ltd. Color TVs NEC System Integration & Construction Ltd. Taiwan Telecommunications Ind. NEC Tohoku Ltd. Communications equipment NEC-Toshiba Information Systems Inc. NEC Toyama Ltd. ROW NEC Warehouse and Distribution Ltd. NEC Yamagata Ltd. NEC Australia NEC Yamaguchi Ltd. ICs NEC Yonezawa Ltd. NEC de Mexico Nippon Avionics Co. Ltd. Communications equipment North America NEC do Brazil HNSX Supercomputers Inc. (United States) Telephone switching systems, radio equipment NEC America Inc. (United States) electronics NEC Business Communication Systems NEC Home Electronics, Australia (United States) Color TVs NEC Canada Inc. (Canada) PECOM-NEC, Argentina NEC Electronics Inc. (United States) Digital electronic switching NEC Industries Inc. (United States) Philco Argentina NEC Logistics America Inc. (United States) TVs, radios, etc. NEC Research Institute Inc. (United States)

NEC USA Inc. (United States) NEC Technologies (Thailand) Co. Ltd. (Thailand) NMI Corporation (United States) NEC (Thailand) Ltd. (Thailand) NEC de Venezuela (Venezuela) New Zealand Telecommunications Systems Support Europe Centre Limited (New Zealand) NEC Business Systems (Italiana) s.r.l. (Italy) PERNAS NEC Telecommunications Sdn. Bhd. NEC Deutschland GmbH (Germany) (Malaysia) NEC Electronics (Europe) GmbH (Germany) Siam NEC Co. Ltd. (Thailand) Taiwan Telecommunication Industry Co. Ltd. NEC Electronics (France) S.A. (France) (Taiwan) NEC Electronics (Germany) GmbH (Germany) Hanjin NEC Telecommunications Engineering Co. NEC Electronics Italiana s.r.l. (Italy) Ltd. (China) NEC Electronics (UK) Limited (United Kingdom) NEC Finland OY (Finland) NEC France S.A. (France) NEC Electronics GmbH (West Germany) NEC Iberia S.A. (Spain) ALLIANCES, JOINT VENTURES, AND NEC Industries Netherlands B.V. (Netherlands) LICENSING AGREEMENTS NEC Scandinavia AB (Sweden) NEC Semiconductors Ireland Limited (Ireland) 1991 NEC Semiconductors (UK) Limited (United Kingdom) AT&T Corporation NEC Technologies (UK) Ltd. (United Kingdom) The two companies agreed to jointly produce digi NEC (UK) Ltd. (United Kingdom) tal car telephone systems tai;geted at Japanese com munications companies. In a separate agreement, ROW the two companies also agreed to joindy develop 0.35-micron CMOS technologies. Home Electronics Co. Ltd. (Thailand) NEC Argentina S.A. (Argentina) Robert Bosch GmbH NEC Australia Pty. Ltd. (Australia) The two companies signed an agreement giving NEC do Brasil S.A. (Brazil) NEC worldwide rights to design, develop, and NEC Chile S.A. (CMle) maiket large-scale integrated circuits that conform NEC Colombia S.A. (Colombia) with Bosch's Controller Area Network specifica NEC Communication Systems (Thailand) Co. Ltd. tion. (Thailand) NEC Customer Services (Australia) Pty. Ltd. DEC Corporation (Australia) NEC joined DEC'S PowerFrame Synergy NEC Electronics Hong Kong Limited (Hong Kong) Programme, a union of 23 companies designed to promote industry standards in ASIC design. NEC Electronics Singapore Pte. Ltd. (Singapore) NEC Electronics Taiwan Limited (Taiwan) IBM Japan Ltd. NEC Engineering (Thailand) Co. Ltd. (Thailand) NEC and IBM Japan signed an agreement whereby NEC Home Electronics Australia Pty. Ltd. (Australia) IBM Japan will market NEC's SX-3 supercom NEC Home Electronics (Malaysia) Sdn. Bhd. puter. (Malaysia) NEC Hong Kong Limited (Hong Kong) NTT Corporation NEC Information Systems Australia Pty. Ltd. NEC and NTT signed a joint technology agree (Australia) ment dealing with the joint development of a NEC de Mexico, S.A. de C.V. (Mexico) digital portable telephone with a volume of only NEC Nigeria Limited (Nigeria) 195CC. NEC Sales (Malaysia) Sdn. Bhd. (Malaysia) NEC Saudi Arabia Limited (Saudi Arabia) Otsuka Shokai and Matra Datavision K.K. NEC Semiconductors Sdn. Bhd. (Malaysia) NEC and Otsuka Shokai made an agreement with NEC Singapore Pte. Ltd. (Singapore) Matra Datavision K.K., under which NEC and NEC Taiwan Ltd. (Taiwan) Otsuka Shokai will market a version of Matra NEC Technologies Hong Kong Limited (Hong Kong) Datavision's EUCLID-IS 3-D mechanical CAD/ NEC Technologies Philippines Inc. (Philippines) CAM/CAE software.

Sanyo Corporation Honeywell Bull Sanyo entered the UNIX engineering market by NEC Computer Systems and Honeywell Bull will signing a technology agreement with NEC that cooperate in R&D of artificial intelligence. allows Sanyo to sell NEC's EWS4800 Series engineering workstations. Corvus Systems NEC and Corvus Systems are involved in joint Valid Logic Systems Inc. development of a CMOS single-chip controller. Valid Logic Systems signed a $1 miUion technol ogy development agreement with NEC for the Digital Research Incorporated development of analog IC tools. NEC has a joint-marketing agreement with Digital Research regarding a CP/M operadng system for 1990 the V Series. Hughes Aircraft Company Oki Hughes Aircraft hcensed NEC to build C-Nite NEC has developed a CMOS signal processor night-attack fire control equipment for Japanese (UPD77C20) with Oki. Groimd Self Defense Force AH-IS antitank helicopters. Sharp Electronics Corporation NEC and Sharp agreed to joinfly develop and Philips NV produce V Series microperipherals. Under the NEC and Philips signed a licensing agreement to agreement, NEC will provide its original manufacture and market chips using Philips I(2)C- microperipherals to Sharp on an OEM basis, and bus system technology. Sharp will develop new microprocessors for NEC.

Texas Instruments Inc. (TI) Sharp and Sony NEC and TI renewed their five-year semiconduc Sharp and Sony have been announced as second tor patent cross-licensing agreement sources for the NEC V Series.

1989 MIPS Computer Systems Inc. MIPS entered into a royalty-bearing technology MERGERS AND ACQUISITIONS exchange with Siemens and NEC for its RISC MPUs. NEC plans to manufacture the R2000A and R3000 devices and peripherals in Japan and Infonnation is not available. Europe. Siemens will manufacture in Europe.

1988 Optoelectronics Research Labs KEY OFFICERS Photodiodes Summit Microcircuits Kenzo Nakamura 64K/256K fast SRAMS Chairman of the board Enabling Technologies Inc. Tadahiro Sekimoto Enabling Technologies entered into a strategic alU- President ance with NEC Home Electronics (United States) to develop products and explore new technologies Yoshiteru Ishii in graphics manipulation, animation, and optical Senior executive vice president media. Koji Maeda British Telecom U.K. Senior executive vice president NEC's U.K. subsidiary, NEC Technologies, manufactures jointly developed car telephones for Toshiro Kunihiro British Telecom. Senior executive vice president

PRINCIPAL INVESTORS

Sumitomo Life Insurance Sumitomo IVust & Banking Sumitomo Bank Mitsubishi Trust & Banking Nippon Life Insurance Dai-ichi Mutual Life Insurance Sumitomo Marine & Fire Insurance Toyo Trust «fe Banking Sumitomo Electric Industries Sumitomo Corporation

Table 3 Balance Sheet Fiscal Year Ending March 31 (Millions of LI.S. Dollars)

Balance Sheet 1986 1987 1988 1989 1990 Cash 822.6 1,229.0 1,685.9 2,930.5 2,230.8 Receivables 3,635.7 4,670.8 5,987.3 6,568.7 6,329.5 Marketable Securities 437.0 558.8 404.9 442.9 424.3 Inventory 3,087.9 4,100.2 5,243.0 5,140.1 4,657.6 Other Current Assets 748.1 1,493.4 1,436.5 889.2 516.6 Total Current Assets 8,731.3 12,052.2 14,757.6 15,971.4 14,158.8 Long-Term Receivables and Investments 1,563.9 1,662.1 2,101.1 2,247.4 1,970.4 Net Property, Plants 3,621.0 4,395.2 5,490.5 5,787.7 6,061.6 Other Assets 612.8 834.9 1,077.5 1,154.6 1,125.6 Total Assets 14,529.0 18,944.4 23,426.7 25,161.1 23,316.4 Total Current Liabilities 7,987.6 10,162.9 12,878.5 13,234.8 12,408.9 Long-Term Debt 3,579.7 5,052.8 5,480.4 6,431.1 5,478.8 Other Liabilities 163.7 206.4 283.9 311.9 332.6 Total Liabilities 11,731.0 15,422.1 18,642.8 19,977.8 18,220.3 Common Stock 600.0 784.3 1,184.9 1,202.8 1,109.8 Additional Paid-in Capital 953.6 1220.0 1716.7 1842.9 1,700.9 Other Equity 44.9 49.1 64.0 75.1 289.8 Retained Earnings 1,199.7 1,470.0 1,818.8 2,068.9 1,995.7 Treasury Stock (0.1) (0.8) (0.2) (6.5) (0.1) Total Shareholders' Equity 2,798.2 3,523.4 4,784.4 5.189.7 5,096.2 Total Liabilities and Shareholders' Equity 14,529.1 18,944.7 23,427.0 25,161.0 23,316.4

Source: NEC Corporation Annual Reports Dataquest (October 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending March 31 (Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue 13,501.3 17,159.1 22,219.5 23,509.5 22,179.2 Cost of Sales 8,868.7 1,1654.5 15,120.0 15,778.2 14,451.6 R&D Expense 1,836.2 2,629.2 3,495.7 3,657.4 3,499.3 SG&A Expense 3,422.9 4,492.3 5,863.0 6,011.2 5,869.9 Capital Expense 1,647.7 1,326.2 2,016.0 2,148.3 2,175.8 Pretax Income 661.9 397.6 566.0 993.9 1,099.6 Pretax Margin (%) 4.90 2.32 2.55 4.23 4.96 Effective Tax Rate (%) 58.00 58.00 56.00 56.00 54.00 Net Income 152.7 103.0 204.5 484.8 539.4 Shares Outstanding, Millions 1,387 1,408 1,469 1,494 1,520 Per Share Data Earnings 0.11 0.07 0.14 0.31 0.33 Dividend 0.05 0.06 0.07 0.07 0.07 Book Value 2.02 2.50 3.26 3.47 3.35 Exchange Rate (U.S.$1:^ 178 146 124 133 158

Source: NEC Coiporation Annual Reports Dataquest (October 1991)

Table 5 Key Financial Ratios Fiscal Year Ending March 31 Key Financial Ratios 1986 1987 1988 1989 1990 Liquidity Current (Times) 1.09 1.19 1.15 1.21 1.14 Total Assets/Equity (%) 519.23 537.67 489.65 484.83 457.53 Cuixent Liabilities/Equity (%) 285.45 288.44 269.18 255.02 243.49 Total Liabilities/Equity (%) 419.23 437.71 389.66 384.95 357.53 Profitability (%) Return on Assets 1.05 0.54 0.87 1.93 2,31 Return on Equity 4.56 2.92 4.27 9.34 10.58 Profit Margin 1.13 0.60 0.92 2.06 2.43 Other Key Ratios R&D Spending % of Revenue 13.60 15.32 15.73 15.56 15.78 Capital Spending % of Revenue 12.20 7.73 9.07 9.14 9.81 Employees 95,796 101,227 102,452 104,022 104,022 Revenue ($K)/Employee 140.94 169.51 216.88 226.01 213.22 Capital Spending % of Assets 11.34 7.00 8.61 8.54 9,33 Exchange Rate (U.S.$1=^ 178 146 124 133 158 Source: NEC Corporation Annual Reports Dataquest (October 1991)

Company Backgrounder by Dataquest

N.V. Philips Gloeilampenfabrieken Groenewoudseweg 1 5621 BA Eindhoven The Netherlands Telephone: (31-40) 786022 Fax: (31-40) 785486 Dun's Number: 40-455-3240 Date Founded: 1891

CORPORATE STRATEGIC DIRECTION to lasting profitability and in:]|)roving its financial structure. As part of this revitaUzation process, drastic restructuring measures were taken to put Ptulips' N.V. Philips Gloeilampenfabrieken (Philips), incorpo Components product sector and Information Systems rated in 1912, is a widely diversified multinatioiial Division on a sound footing. At the same time, it was group of companies, engaged primarily in the decided to launch a worldwide campaign to improve manufacturing and distribution of electronic and elec efficiency in all organizational units. This efficiency trical products, systems, and equipment. The legal drive is aimed at achieving substantial cost reductions entity, N.V. Gcmeenschappehjk Bezit van Aandeelcn within a short period of time and at promoting a Phihps Gloeilampenfabrieken (Philips N.V), operates permanent mindset toward profit and costs. The cam solely as a holding company for share capital of N.V paign is also aimed at intensifying quality and cus Phihps Gloeilampenfabrieken (Piuhps), of which it tomer orientation. holds 99.99 percent Phihps Industries functions as the primary holding conqiany for the company's nimieious national organizations, which are wholly The measures to turn aroimd die Coniponents product owned subsidiaries operating in over 60 cotmtries. sector and the Information Systems Division, in addi These subsidiaries' businesses vary from simple mar tion to the woridwide campaign to improve efficien keting organizations to fiilly integrated manufacturing cy, will result in a reduction of 45,000 to 55,000 jobs and marketing concerns. PhiUps' product activities between September 1990 and the end of 1991. In are grouped into five product sectors: Lighting, Con- addition, since the end of 1990, Phihps has been stmier Plx>ducts, Professional Products and Systems, reappraising the organization and composition of the Components, and Miscellaneous. businesses in which the company operates. This port- foUo analysis will result in the divestment, closure, or drastic reorganization of some units, while in odier Fiscal year 1990 was a year of fundamental reap cases it will give rise to a strengthening and expan praisal for Philips. Persistently large losses on infor sion of operations or the creation of alliances. mation systems and integrated circuits had been caus ing a drain on the company's equity and even threatening the continuation of healthy growth in A total of F 4.6 billion (US$2.5 billion) was charged other sectors. In Europe and the United States, the against operating income in fiscal 1990 for the con^any's Lighting product sector had to contend implementation of the whole revitalization program. with intense price competition, which could be only (Percentage changes refer only to F amounts; US$ partly offset by improvements in efficiency. Further percentage changes will differ because of flucmations more, exchange rate movements and appreciable rises in Dataquest exchange rates.) As a result, the year in interest rates had an adverse impact on both was concluded with a net loss of F 4.24 billion Philips' earnings and its competitiveness. (US$2.34 biUion).

Against titiis backdrop, Phihps decided that the meas In fiscal 1990, net revenue decreased 3 percent to ures taken in the past few years to enhance the F 55.76 bilKon (US$30.81 bilHon) fiom F 57.22 bil- company's maneuverability should he radically inten hon (US$26.87 billion) in fiscal 1989. However, die sified and speeded up. A revitalization process was 1989 sales figure included Phihps* defense businesses started with the aim of rapidly restoring the company in Europe, which have since been disposed of. A

number of other, smaller changes in consolidations Communications Systems took place as a result of the disposal and acquisition of other businesses. Disregarding the effects of these The company's Commtmications Systems products changes and of exchange rate movements, net sales include private branch exchanges and key telephone on a comparable basis increased 5 percent in systems, cable transmission and network access fiscal 1990. equipment, switching and netwoik management sys tems, radio trunk transmissions and subscriber access systems, copper and fiber-optic cables, and optical Philips remains the world leader in lightLng and color fiber. The company also produces car and cordless picture tubes and is second in size only to Matsushita, telephones, mobile radio truncated networks, and of which the company owns 35 percent, in consumer wide area paging systems. electronics revenue. On an overall basis, Philips* main revenue comes from the European market, which has accounted for approximately 60 percent of In September 1990, AT&T repurchased Philips' 15 the company's total sales over the past five years. percent stake in AT&T Network Systems Ihtema- tional B.V., which was founded in 1983 as AT&T- Phihps Telecommunications. At its founding. Philips The company's R&D expense decreased 4 percent to held 50 percent of the company, which makes and F 4.38 billion (US$2.42 billion) in fiscal 1990 firom markets AT&T switches overseas. Philips then cut F 4.56 billion (US$2.14 billion) in fiscal 1989, but back its stake to 40 percent, and later transferred remained at approximately 8 percent of net revenue. another 25 percent back to AT&T. This decline in R&D expenditure was entirely due to the divestment of Philips' defense businesses. Approximately 35,000 employees are engaged in Information Systems product development and in the development of production methods and equipment The responsibil The company's Information Systems products include ity for the development of products and production personal computers and workstations, doctmient han methods lies withJba each individual product divlsioiL dling systems, optical media, peripherals, and dicta The divisions have development laboratories at their tion systems. In 1990, sales in this division declined disposal in 25 countries throughout the world. as a result of sharp falls in prices affecting virtually all information systems products. As a result of reduced sales and low margins, appreciable losses More detailed information is available in Tables 1 and were incurred in this division. According to Philips, 2, which appear after "Business Segment Strategic radical restructuring measures are being carried out to Direction" and present corporate highlights and reve remedy this situatioa nue by region. Infomiation on revenue by distribution channel is not available. Tables 3 through 7, at the Philips launched a number of new personal computer end of this backgrounder, present comprehensive models in 1990 to help die company reach its new financial informatioiL goals, which include a 5 percent market share by 1993. The company created two groups of PC products, one aimed at small businesses and home users and the other targeted at systems integrators, VARs, and corporate businesses. The company's new BUSINESS SEGMENT STRATEGIC personal computers range from an entry-level DIRECTION 12-MHz 286-based system to a 25-MHz 486-based rc that features 4MB RAM and a hard disk drive expandable to 650MB. Professional Products and Systems Division The Professional Products and Systems Division During 1990, Philips introduced its first portable comprises Communications Systems, Information personal computer, the Magnavox Metalis/286, which Systems, Medical Systems, Industrial and Electro- has a 20MB hard drive and an internal 1.44MB Acoustic Systems, and Defense and Control Systems, 3.5-inch floppy drive. Targeted at the nonstop user, all serving the professional market Sales in the the Metalis/286 features battery life of up to four Professional Products and Systems Division hours per charge, with full recharge in imder four decreased 17 percent to F 13.06 billion (US$7.21 bil- hours. It also features 1MB of RAM (expandable to hon) in 1990 and accounted for 23.4 percent of 8MB), and is equipped with a backlit video graphics Philips' total revenue. array (VGA) monitor.

The company's image processing system, Megadoc, During 1990, significant steps were taken to reduce is based on optical recording. During mid-1990, Philips' defense activities, lite company disposed of Philips introduced the Megadoc 10, a PC-based ver a major portion of its Western European defense sion of Megadoc that can be networked but will be business to the French cott^any Thomson-CSF, sell offered mainly as a standalone system. The Megadoc ing an 80 percent interest in Philips' Dutch subsidiary 10 runs unders MS-DOS, and conforms to UNIX HoUandse Signaalapparaten B.V., along with that sub System V.4 and Posix, enabling users to integrate sidiary's interest in the Belgium company MBLE existing software and add other appUcations more Defense, and a 99 percent stake in Philips' French easily. company TRT Defense. In addition, PhUips sold its British defense businesses to Thom-EMI, and disposed of its German defense activities via a Smart cards, which are optical media products, are management buy-out memory components that are the size of a credit card and contain an integrated circuit Philips currently markets these cards for personal, business, and indus trial applications. Sales have been slow for these Components Division cards because of cost/benefit factors. The Philips Components Division is a supplier of components and subassemblies for both its own Medical Systems products and outside parties. Philips produces a broad range of components such as integrated circuits, dis The company's Medical Systems activities focus crete semiconductors, passive components, liquid primarily on the production of diagnostic imaging crystal displays, and magnetic products. Component systems, such as equipment based on X-radiation sales accoimted for 14.6 percent of total net sales in (including computer tomography), ultrasound, and 1990. Sales from this division fell 3.7 percent to magnetic resonance. Philips also produces systems F 8.16 billion (US$4.51 billion) in fiscal 1990 from for radiation therapy and provides consultancy ser F 8.74 billion (US$4.10 billion) in fiscal 1989. vices on the operational structure within hospitsds and clinics. The company's medical products are sold to hospitals, other institutions, and governments Semiconductors directly and, in certain countries, through agents. The market for medical systems is subject to rapid change In early 1991, Philips removed its semiconductor due to developments in technology and diagnostic activities from its Components Products Division to effectiveness. form the Semiconductor Products Division, which win handle aU of Hiilips' IC and discrete semicon ductor business. The new division will also encom Industrial and Electro-Acoustic Systems pass Philips Components-Signetics, a subsidiary located in Svmnyvale, California. According to The Industrial and Electro-Acoustic Systems Division Philips, the move will allow the company to react concentrates on the production and marketing of better to the rapid changes in the semiconductor products and systems for applications in research, market Under the new structure, approximately one- industry, business, and government A large range of third of Philips' employees in its Components electronic test and measuring equipment is produced, Products Division will work in the Semiconductor including oscilloscopes, logic analyzers, and auto Products Division, with the remainder (approximately matic test equipment. 50,000) working in the scaled-down Components Product Division. Defense and Control Systems Philips considers its semiconductors to be the heart of The Defense and Control Systems Division develops its electronics product business. The company's and produces electronic systems, subsystems, equip general IC goal is to strengthen its position as an ment and strategic components for shipbome, land- applications-oriented suppUer to the world markets. based, and airborne military applications and civil According to Dataquest Philips moved up one place derivatives. Products manufactured by this division to rank as the ninth-largest vendor in the worldwide include radars, optoelectronics, sonars, and electronic semiconductor market in 1990, based on estimated warfare equipment, including electronic systems factory revenue of $2.01 billion. Net sales for the measures, electronic countenneasures, electronic company increased 17 percent while as a whole, the counter countetmeasures, and chaff/flare launchers. semiconductor market grew at only 2 percent in

calendar 1990. Among European semiconductor com Video Products panies, Philips continued to be the top-ranked manufacturer, with the company's main competition Video products include television sets (including in this region coming from SGS-Thomson Microelec receivers equipped for Teletext and stereo sound), tronics B.V. and Siemens AG. video recorders, and camera recorders (cameras with a built-in video recorder), very high resolution moni tors, and other displays. Products in this sector are In the worldwide analog integrated circuit market, sold primarily to the OEM market Philips brand Philips jumped from fourth place to the leading posi names in the United States include Philips, Magna- tion, holding a 6.2 percent market share based on esti vox, Sylvania, and Philco. mated factory revenue of $653 miUion. Home Office Equipment As part of the company's restructuring, an enq)hasis was placed on reducing losses in the Components Home office equipment products include personal Divisioa Along these lines. Philips pulled out of computers, videotex terminals, and other peripheral static RAM (SRAM) development and pilot produc equipment, which are marketed specifically toward tion as one of several cost-cutting measures. The the home market. For personal computers for company also dropped out of the $5 billion Joint business applications, see Communications Systems. European Submicron Silicon (JESSI) program, a con sortium of European chip vendors. Other cost-cutdng Philips' Compact Disk Interactive (CD-I) system is actions included the closing of PhiUps' IC Advanced an interactive, fully digital, multimedia system that Development and Manufacturing center (located in allows audio, video, text, and graphics to be stored Eindhoven) and concentration of advanced and integrated on a single compact disk. CD-I is application-specific integrated circuit (ASIC) schediiled to be introduced in the consumer market in development in Hamburg, Germany. the United States and Japan during late 1991 and in Europe in 1992. Passive Components The company is the world's leading supplier of pas PolyGram sive components with product lines consisting of a Another division of the Consumer Products Division variety of capacitors and resistors in both leaded and is PolyGram Records Inc., which engages primarily SMD versions. A wide range of crystals and oscilla in the acquisition, production, marketing, and distri tors is available for professional, industrial, and con bution of recorded music. sumer equipment Domestic Appliances and Personal Care Consumer Products Division The domestic appliances and personal care division The Consumer Products Division includes the con includes home comfort and kitchen appliances, sumer electronics product division, PolyGram shavers, and other personal care products. Philips' Records division, domestic appliances, and personal main product of this division is Philishave, based on care products. Major categories in consumer electron rotary shaving technology. Along with the other per ics are audio, video, and home office eqmpment sonal care products and domestic appliances, Sales in 1990 in the Consumer Products Division Philishave is mariceted under the Norelco brand in the accounted for 45.5 percent of the total net sales. Sales United States. increased 8.0 percent to F 25.40 billion (US$14.03 billion) in fiscal 1990 fit)m F 23.58 billion (US$11.07 Lighting Division billion) in fiscal 1989. The company has been in the lighting business since Audio Products its founding in 1891. The Lighting Division's products serve a broad range of apphcations, includ Audio products include portable radios, radio ing general hghting service lamps, gas-discharge and receivers, car radios, receivers, amplifiers, tuners, special lamps, fixtures, special products, and batter cassette recorders, turntables, and compact disc sys ies. Net sales of the Lighting Division accounted for tems. Compact disc players and changers are still the 12.6 percent of total net sales, or F 7.03 billion fastest-growing products in the consiuner electronic (US$3.88 billion). Lighting sales decreased 7 percent market in fiscal 1990.

Miscellaneous Products Inc. and Genie Manufacturing Inc. Miscel laneous sales accounted for 3.8 percent of total net Miscellaneous business activities, which are outside revenue in 1990. Sales in this division grew die company's basic range of products, include ancil 8.0 percent to F 2.12 bilUon (US$1.17 billion). lary activities obtained as part of other acquisitions. Included in this sector are the operations in major domestic appliances in some countries that have not Further Information been transferred to Philips' joint venture with Whirlpool, begun in 1989. During 1990, Philips For further information about the company's business divested two of its larger U.S. subsidiaries incorpo segments, please contact the appropriate Dataquest rated in the Miscellaneous sector. Anchor Advanced industry service.

Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars)

1986 1987 1988 1989 1990 Rve-Year Revenue 22,464.1 25,968.0 28,322.7 26,865.7 30,808.8 Percent Change 15.60 9.07 (5.14) 14.68

Capital Expenditure 1,904.9 2,342.9 2,093.4 1,483.6 1,569.1 Percent of Revenue 8.48 9.02 7.39 5.52 5.09

R&D Expenditure 1,706.9 2,149.8 2,334.8 2,139.4 2,418.8 Percent of Revenue 7.60 8.28 8.24 7.96 7.85

Number of Employees 343,800 336,700 310,300 304,800 272,800 Revenue ($K)/Employee 65.34 77.12 91.28 88.14 112.94

Net Income 414.3 403.0 533.3 645.1 (2,342.5) Percent Change (2.73) 32.36 20.95 (463.15) Exchange Rate (US$1=F) F 2.45 F 2.03 F 1.98 F 2.13 F 1.81

1990 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue 7,080.7 7,480.1 7,247.0 9,001.1 Quarterly Profit 185.6 20.4 (1,192.8) (1,355.8)

NA = Not available SoDice: N.V. Philips Gloeilaiiq)eiifabrieken Animal Reports and Foims 10-K Dataquest (October 1991)

Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 Europe 59,20 61.40 61.30 57.30 60.90 North America 24.30 22.40 22.20 24.10 21.20 Asia/Pacific 7.60 8.60 8.70 10.00 10.50 ROW 8.90 7.60 7.80 8.60 7.40

Source: N.V. Fhilqis Gloeilampenfalsieken Annual Reports and Forms 10-K Dataquest (October 1991)

ROW

1990 SALES OFFICE LOCATIONS Africa Lighting, consumer electronics, professional Information is not available. products and systems Austraha and New Zealand Lighting, professional products, systems, components Bangkok, Thailand MANUFACTURING LOCATIONS Assembly and testiag Hong Kong Transistors, diodes North America Kao-Hsixmg, Taiwan Albuquerque, New Mexico ICs Wafer fabrication of MOS ICs Latin America Orem, Utah AJl principal products Wafer fabrication of bipolar ICs, assembly and Manila, Philippines testing of logic and bipolar memory products Transistors, diodes, optoelectronic products Riviera Beach, Florida Recife, Brazil Passive components, discrete semiconductors ICs Sunnyvale, California Sao Paulo, Brazil Wafer fabrication, MOS and bipolar ICs Discrete devices United States and Canada Seoul, South Korea AH principal products Assembly and testing

Europe Barcelona, Spain SUBSIDIARIES Diodes, transistors Caen, France North America Bipolar digital, bipolar analog, and consumer ICs; discrete devices, power transistors, optoelectronic North American Philips Corporation (United States) products Philips Canada Ltd. (Canada) Hamburg, Germany Philips Components-Signetics (United States) NMOS microprocessors, controllers, memories, PolyGram Records Inc. (United States) bipolar analog consumer ICs, small-signal transistors, varicap diodes Europe Netherlands AH principal products Bang & Olufeen A/S (Denmark) Nijmegen, Netherlands Compagnie Francaise Philips (France) CMOS devices Europe Mij Voor Fabricage en Verkoop Van Sittard, Netherlands Gloeilampcnonderdelen CE.M,G.O.) (Belgium) Not available Giundig Aktiengesellschaft (Gennany) Southampton, United Kingdom Ibcrtica de Alumbrado S.A, (Spain) NMOS ROMs, dedicated consumer logic Nederlands Philips Bedrijven B.V. (Netherlands) Stadskanaal, Netherlands Norsk Atkieselskap Philips (Norway) Diodes Osterreichische Philips Industrie GesmbH (Austria) Stockport, United Kingdom Oy Philips AB (Finland) Power transistors, power diodes PhiUps AG (Switzerland) Zurich, Switzerlan4 Philips and Du Pont Optical Company (Netherlands) ICs PhiUps Beteihgungs AG (Switzerland) Philips Communication Systems International B.V. Japan (Netherlands) Philips Consumer Electronics International B.V. Tokyo, Japan (Netherlands) Testing Philips Danmark A/S (Denmark)

Philips Electronics Ireland Limited (Ireland) Bangladesh Lamps Limited (Bangladesh) PhiUps Export B.V. (Netherlands) Beijing PhiUps Audio/Video Corporation (China) PhiUps GmbH (Germany) Car Audio Electronics (China) Company Limited PhiUps Iberica S.A.E. (Spain) (China) Philips Industrial S.A. Hellenique de Produits Electrical Lamp Manufacturers Thailand Limited Electrotechniques et Electroniques (Greece) (Thailand) Philips Information Systems International B.V. Elinthai Limited (Thailand) (Netherlands) El Nasr Company for Electrical and Electronic PhiUps International B.V. (Netherlands) Apparatus (Egypt) PhiUps International Finance S.A. (Luxembourg) Hua Fei Colour Display Systems Company Ltd. PhiUps Lighting Hellas Commercial and Industrial (China) S.A. (Greece) Inbraphil-Industrias Brasilerras PhiUps Ltda. (Brazil) PhiUps Lighting Holding B.V. (Netherlands) Industria de Productos Electricos Centro-Americana, PhiUps Luxembourg Consumer Products S.A. de C.V (El Salvador) (Luxemboiu-g) Industrias BoUvianas PhiUps S.A. (BoUvia) PhiUps Luxembourg Professional Systems Industrias PhiUps de Colombia S.A. (Colombia) (Luxembourg) Industrias PhiUps del Uruguay S.A. (Uruguay) PhiUps Matsushita Battery Corporation (Belgium) Industrias Venezolanas PhiUps S.A. (Venezuela) Philips Medical Systems International B.V. Malaysian Lamps Sendirian Berhad (Malaysia) (Netherlands) Manufacture Nationale pour la ReMgeration et PhiUps Norden Aktiebolag (Sweden) TElectronique (Morocco) PhiUps Portuguesa S.A. (Portugal) PEC Investments Limited (South Afirica) PhiUps S.A. (Belgium) Peico Electronics & Electricals Limited (India) PhiUps S.A. HeUenique Commerciale de Produits PhiUps AntiUana N. V. (Netherlands Antilles) Electrotechniques (Greece) PhiUps Argentina S.A. de Lamparas Electricas y PhiUps Sistemi MedicaU S.p.A. (Italy) Radio (Argentina) PhiUps Societa per Azioni (Italy) PhiUps Bangladesh Limited (Bangladesh) PhiUps Systemes Medicaux (France) PhiUps Chilena S.A. (Chile) PhiUps U.K. Limited (United Kingdom) PhiUps China Hong Kong Group Company Limited PolyGram GmbH (Germany) (Hong Kong) PolyGram Leisure Ltd. (United Kingdom) PhiUps Components (PhiUppines) Inc. (PhiUppines) PolyGram N.V. (Netherlands) PhiUps del Paraguay S.A. (Paraguay) PolyGram S.A. (France) PhiUps do BrasU Ltda. (Brazil) Ttirk PhiUps Aydinlatma Sanayi ve Hcaret Anonim PhiUps Ecuador C.A. (Ecuador) Sirketi (Turkey) PhiUps Electrical Company of Pakistan Limited Turk PhiUps Sanayi Anonim Siiketi (Turkey) (Pakistan) Tuik PhiUps Ticaret Anonim Siiketi (Turkey) PhiUps Electrical Company of Thailand Limited Whirlpool International B.V. (Netherlands) (ThaUand) PhiUps Electrical Industries of Pakistan Limited (Pakistan) Japan PhiUps Electrical Lamps Inc. (PhiUppines) PhiUps Electrical (Private) Limited (Zimbabwe) Japan New Media Systems Inc. (Japan) PhiUps Electrical Zambia Ltd. (Zambia) Marantz Japan Inc. (Japan) PhiUps Electric Lamps (E.A.) Limited (Kenya) Matsushita Electronics Corporation (Japan) PhiUps Electronic Building JBements Industries Ltd. PhiUps Japan Ltd. (Japan) (Taiwan) PNN Corporation (Japan) PhiUps Electronics Holdings Limited (South Afirica) PhiUps Electronics Industries Ltd. (Taiwan) ROW PhiUps Electronics Ltd. (South Korea) PhiUps Electronics South-East Asia Holding B.V. Associated Electronic Products (Nigeria) Limited (China) (Nigeria) PhiUps Ethiopia (Ethiopia) Audio Electronics Sdn. Bhd. (Malaysia) PhiUps Hong Kong Limited (Hong Kong) Bangladesh Electrical Industries Limited PhiUps Industrial Development Inc. (PhiUppines) (Bangladesh) PhiUps Industries Holdings Limited (AustraUa)

Philips Industries Ltd. (South Korea) ORIGIN, a joint venture with the Dutch software Philips Iran Ltd. (Iran) company BSO/Beheer. That same year, the two Philips (Kenya) Limited (Kenya) companies formed a systems integration joint ven Philips Lighting Taiwan, Ltd. (Taiwan) ture, called BSO/Pass International. Philips Malaysia Sdn. Berhad (Malaysia) Philips Maroc (Morocco) European Development Center Philips Mexicana, S.A. de C.V, (Mexico) Philips joined the European Development Center, Philips Midden Oosten B.V. (Egypt) which develops and supports computer-aided Philips Midden Oosten B.V. (Iraq) engineering and design tools and technology. Philips Midden Oosten B.V. (United Arab Emirates) Philips New Zealand Limited (New 2fealand) Fujitsu Microelectronics Philips Peruana S.A. (Peru) A second-source and joint development agreement Philips Semiconductor Corporation of Shanghai was made for local area network circuits. (China) Philips Singapore Private Limited (Singapore) Matsushita Electric Industrial Co. Ltd. Philips Taiwan Ltd. (Taiwan) A joint venture was formed to develop, control, P.T. Philips Development Corporation (Indonesia) and maintain a chip standard for domestic audio P.T. Philips-Ralin Electronics (Indonesia) and video systems. Shenzhen Shen Fei Laser Optical Systems Company Limited (China) Motorola Incorporated Shenzhen Shen Fei Plastics and Metalware Company Philips and Motorola signed an OEM agreement Limited (China) under which Philips will add Motorola's reduced Signetics Korea Co. Ltd. (South Korea) instruction-set computing systems to its product Signetics Thailand Co. Ltd. (Thailand) line. Taiwan Lighting Industries Co. Ltd. (Taiwan) Taiwan Semiconductor Manufacturing Company Silicon Systems Inc. (SSI) Limited (Taiwan) Philips licensed its QUBIC BiCMOS process to Thai Lamps Company Limited (Thailand) SSI to serve as the basis for mixed signal designs. Yangtze Optical Fibre and Cable Company Ltd. As part of the agreement, both companies have (China) access to the o&er's foundry to augment capacity availability as QUBIC grows in acceptance.

Teikoka Tsishin Kogyo ALLIANCES, JOINT VENTURES, AND The two companies formed a joint venture for the LICENSING AGREEMENTS manufacture of integrated control panels for con sumer electronics equipment 1991 Tesla Strasnice and Hloubetin Matsushita Electric Industrial Co. Ltd. and Sony Philips and Tesla, a Czechoslovakian electronics Corporation company, signed a cooperation agreement to Tlie three companies formed a consortiimi in Japan improve the public telecommunications network in to laimch and promote Philips' Compact Disk Czechoslovalda. The agreement wiU primarily Interactive (CD-I) multimedia technology. The focus on digital signal transmission equipment, company will be called CD-I Consortium JapaiL which will facilitate multiple iise of cable routes Sun Microsystems Inc. already laid. Philips and Sun signed an agreement that will allow Philips to resell Sun's complete line of Texas Instruments Incorporated (TI) SPARCstations. TI and Philips entered into a joint sourcing agree ment for the ABT high-performance bus interface logic family. 1990 BSO/Beheer B.V. VEB Kombinat Robotron Philips service activities in the automation and An agreement was reached concerning industrial information processing field were transferred to measiiring systems.

1989 ES2 Philips adopted E-beam direct-wire technology for Catalyst Semiconductor Inc. ASICs; ES2 adopted a Philips' CMOS process. Philips signed an agreement with Catalyst to sup Customers can have devices manufactured by ply Catalyst with its 12C protocol. either company. Motorola Incorporated Hitachi Ltd. An agreement was made to develop very large scale Hitachi will produce and sell Philips' HD68562 integration (VLSI) integrated circuits. and HD64941 LSI chips. Seeq Technology Inc. Intel Corporation The companies signed a five-year agreement call The companies made an agreement giving Philips ing for Philips to second-source and codevelop the access to Intel's CHMOS process and products and Seeq 512Kb and 1Mb flash EPROMs. Seeq will Intel access to Philips' serial buses. get an alternate source for its flash EEPROM and foundry support for its 64Kb and 256Kb Intel Corporation EEPROMs. Philips was chosen to second-source Intel's 8095 16-bit MCU and use Intel's 256K EPROM Sun Microsystems Inc. technology. The two companies signed a licensing agreement Motorola Incorporated that will allow Philips components to design and Philips was chosen to second-source Motorola's market 32-bit RISC microprocessors based on 68010 16-bit MPU. Sun's SPARC architecture. Plessey Co. pic Synercom Technology The companies are manufacturing microchips for The two companies have entered into an OEM satellite broadcasting receiver systems. agreement for Synercom's INFORMAP and related application software. R. R. Donnelly & Sons and Toppan Printing Co. Ltd. Whirlpool The companies agreed to develop software for Philips and Whirlpool entered into a joint venture interactive disks. agreement concerning major domestic appliances. Robert Bosch GmbH The companies agreed to develop a standardized 1988 pan-European automobile telephone system.

ASM Lithography Siemens AG ASM Lithography agreed to manufacture lithogra Siemens agreed to furnish Philips with submicron phy equipment used to produce semiconductors for technology. Philips. SMH AT&T The companies completed a CMOS wafer-fab AT&T agreed to develop, manufacture, and sell production agreement telecommunications network products for Philips. Taiwan Semiconductor Manufacturing Co. (TSMC) Canon Incorporated, Data General Corporation, Hewlett-Packard Company, Prime Computer TSMC agreed to manufacture customer-^ecific Incorporated, and Unisys Corporation ICs for Philips. Philips and these companies formed a consortiiun Texas Instruments Incorporated to establish a common way to implement object- TI made an agreement with Philips to develop and oriented software technology across a network of manufacture an advanced CMOS logic family. computers and servers. Vitelec E.I. du Pont de Nemours and Sony Corporation •\^telec Ucensed Philips' process technology so tiiat The companies agreed to set CD-WORM N^telec could produce CMOS SRAMs for use, standards. license, and sale for both companies.

VLSI Technology Inc. Jan D. Timmer The companies made an agreement covering CAD President, chairman of the board, chairman of design software, foundry services, cell libraries, Group Management (GMC) and gate arrays under which VLSI would provide IC design software and Philips would provide W. Huisman foundry services. Chairman, Communication Systems Division Yangtze Optical Fiber Cable Company W. de Kleuver The companies will manufacture and sell optical Chairman of Components Division, member of fiber cable in China. GMC Thierry Meyer Chairman of Consumer Electronics Division, member of GMC MERGERS AND ACQUISITIONS J.C. Tollenaar Chairman, Domestic Appliances and Personal Care Division 1991 F.A. de Bruijne E.I. Du Pont de Nemours and Company Chairman, Industrial Electronics Division Philips acquired Du Font's interest in Philips & Du Pont Optical Company, a joint venture that was L.G. Nyberg created in 1986 for the manufacture of optical Chairman, Information Systems Division disks. E. Kloster Chairman of Lighting Division, member of GMC 1990 H. van Bree Bang & Olufsen A/S Chairman, Medical Systems Divison Philips acquired a 25 percent interest in Bang & Olufsen, a Danish conq)any that operates mainly at H.W. Hagmeister the top end of the audio and video market Chairman, Semiconductors Division Marantz Japan A.M.I. Levy Philips acquired the majority shareholding in Chairman, Polygram Records Division Marantz Japan and at the same time acquired rights to use the Marantz brand name in North America. Robert Bosch Group Philips' interest in the Broadcast Television Sys PRINCIPAL INVESTORS tems joint venture with Robert Bosch for the production of television studio equipment was increased firom 50 percent to 75 percent. Information is not available.

1989

Taiwan Semiconductor Manufacturing Co. FOUNDERS (TSMC) Philips exercised its option to acquire 51 percent of TSMC's shares. Gerard Philips

KEY OFFICERS

Table 3 Balance Sheet Fiscal Year Ending in December (Millions of U.S. Dollars)

Balance Sheet 1986 1987 1988 1989 1990 Cash 453.1 712.3 623.2 657.3 1,309.9 Receivables 4,956.7 5,870.0 6,749.5 6,565.3 6,469.6 Marketable Securities 69.8 175.9 97.0 69.0 81.8 Inventory 5,245.3 5,956.7 6,373.2 6,028.2 6,389.0 Other Current Assets 428.2 402.5 482.8 984.0 1,507.2 Total Current Assets 11,153.1 13,117.2 14,325.8 14,303.8 15,757.5 Net Property, Plants 7,447.8 9,106.9 9,372.7 8,730.5 9,222.7 Other Assets 2,064.5 2,376.4 2,992.9 2,777.5 3,525.4 Total Assets 20,665.3 24,600.5 26,691.4 25.811.7 28,505.5 Total Current Liabilities 7,531.8 9,159.6 9,739.9 10,046.0 10,965.7 Long-Term Debt 3,689.4 4,326.1 5,101.0 4,711.7 6,567.4 Other Liabilities 2,971.4 3,472.4 3,497.0 3,125.4 4,803.9 Total Liabilities 14,192.7 16,958.1 18,337.9 17,883.1 22,337.0 Common Stock 1,612.7 2,447.8 2,562.1 2,469.0 3,098.9 Odier Equity 3,257.6 4,051.7 4,561.1 4,190.6 4,705.5 Currency Adjustment (1,723.0) (2,753.0) (2,942.0) (3,583.0) (5,139) Retained Earnings 3,325.7 3,896.1 4,172.2 4,852.1 3,503.3 Total Shareholders' Equity 6,472.7 7,642.4 8,353.5 7,928.6 6,168.5 Total Liabilities and Shareholders' Equity 20,665.3 24,600.5 26,691.4 25,811.7 28,505.5 Exchange Rate (US$1=F) F 2.45 F 2.03 F 1.98 F 2.13 F 1.81

Source: N.V. Philips Gloeilanq)eiifabriekBn Annual Reports and Foims 10-K Dataquest (October 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending in December (Millions of U.S. DoUars, except Per Share Data)

Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue 22,464.1 25,968.0 28,322.7 26,865.7 30,808.8 U.S. Revenue 13,289.8 15,942.4 17,344.9 15,403.3 18,768.0 Non-U.S. Revenue 9,174.3 10,025.6 10,977.8 11,462.4 12,040.9 Cost of Sales 16,776.3 19,553.2 21,344.9 20,252.6 23,020.4 R&D Expense 1,706.9 2,149.8 2,334.8 2,139.4 2,418.8 SG&A Expense 4,636.7 5,432.0 5,910.6 5,657.3 6,624.9 Capital Expense 1,904.9 2,342.9 2,093.4 1,483.6 1.569.1 Pretax Income 799.2 368.0 409.1 594.8 (2,266.3) Pretax Margin (%) 3.56 1.42 1.44 2.21 (7.36) Effective Tax Rate (%) 42.00 28.00 39.00 41.20 8.40 Net Income 414.3 403.0 533.3 645.1 (2,342.5) Shares Outstanding, Thousands 230,957 245,500 256,252 266,508 NA

Per Share Data Earnings 1.79 1.64 2.08 2.42 (8.22) Dividend 0.82 0.99 1.01 0.94 - Book Value 28.03 31.13 32.60 29.75 NA

Exchange Rate (US$1=:F) F 2.45 F 2.03 F 1.98 F 2.13 F 1.81

Source: N.V. Fbilips Gloeilampenfabrieken Annual Reports and Fonns 10-K Dataquest (October 1991)

Table 5 Balance Sheet Fiscal Year Ending in December (Millions of Guilders)

Balance Sheet 1986 1987 1988 1989 1990 Cash 1,110.0 1,446.0 1,234.0 1.400.0 2,371.0 Receivables 12,144.0 11,916.0 13,364.0 13.984.0 11,710.0 Marketable Securities 171.0 357.0 192.0 147.0 148.0 Inventory 12,851.0 12,092.0 12,619.0 12.840.0 11.564.0 Other Current Assets 1,049.0 817.0 956.0 2,096.0 2,728.0 Total Current Assets 27,325.0 26,628.0 28,365.0 30,467.0 28,521.0 Net Property, Plants 18,247.0 18,487.0 18,558.0 18,596.0 16.693.0 Other Assets 5,058.0 4,824.0 5,926.0 5,916.0 6.381.0 Total Assets 50.630.0 49.939.0 52,849.0 54,979.0 51.595.0 Total Current Liabilities 18,453.0 18,594.0 19,285.0 21.398.0 19.848.0 Long-Tenn Debt 9,039.0 8,782.0 10,100.0 10,036.0 11.887.0 Other Liabilities 7,280.0 7,049.0 6,924.0 6,657.0 8.695.0 Total Liabilities 34,772.0 34,425.0 36,309.0 38,091.0 40.430.0 Common Stock 3,951.0 4,969.0 5,073.0 5,259.0 5,609.0 Other Equity 7,981.0 8,225.0 9,031.0 8,926.0 8,517.0 Currency Adjustment (4,222.0) (5,589.0) (5,825.0) (7,632.0) (9,302.0) Retained Earnings 8,148.0 7,909.0 8,261.0 10,335.0 6,341.0 Total Shareholders' Equity 15,858.0 15,514.0 16,540.0 16,888.0 11.165.0 Total Liabilities and Shareholders' Equity 50,630.0 49,939.0 52,849.0 54,979.0 51.595.0 Exchange Rate (US$1=F) F 2.45 F 2.03 F 1.98 F 2.13 F 1.81

Source: N.V. Fbilips Gloei]aoq)ei]fabrieken Annual Reports and Forms 10-K Dataquest (October 1991)

14 ©1991 Dataquest Incorporated October—^Reproduction Prohibited 0011336 N.V. Philips Gloeilampenfabrieken s Table 6 Consolidated Income Statement Fiscal Year Ending in December (Millions of Guilders, except Per Share Data)

Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue 55,037.0 52,715.0 56,079.0 57,224.0 55,764.0 European Revenue 32,560.0 32,363.0 34,343.0 32,809.0 33,970.0 Non-European Revenue 22,477.0 20,352.0 21,736.0 24,415.0 21,794.0 Cost of Sales 41,102.0 39,693.0 42,263.0 43,138.0 41,667.0 R&D Expense 4,182.0 4,364.0 4,623.0 4,557.0 4,378.0 SG&A Expense 11,360.0 11,027.0 11,703.0 12,050.0 11,991.0 Capital Expense 4,667.0 4,756.0 4,145.0 3,160.0 2,840.0 Pretax Income 1,958.0 747.0 810.0 1,267.0 (4,102.0) Pretax Margin (%) 3.56 1.42 1.44 2.21 (7.36) Effective Tax Rate (%) 42.00 28.00 39.00 41.20 8.40 Net Income 1,015.0 818.0 1,056.0 1,374.0 (4,240.0) Shares Outstanding, Thousands 230.957 245,500 256,252 266,508 NA Per Share Data Earnings 4.39 3.33 4.12 5.16 (14.88) Dividend 2.00 2.00 2.00 2.00 - Book Value 68.66 63.19 64.55 63.37 NA Exchange Rate (US$1=F) 2.45 2.03 1.98 2.13 1.81

NA s Not available Sooice: N.V. Philips Gloeilampenfabrieken Annual Reports and Fbims 10-K Dataqoest (October 1991) • Table 7 Key Financial Ratios Fiscal Year Ending in December

Key Financial Ratios 1986 1987 1988 1989 1985 Liquidity Current (Times) 1.48 1.43 1.47 1.42 1.44 Total Assets/Equity (%) 319.27 321.90 319.52 325.55 462.11 Current Liabilities/Equity (%) 116.36 119.85 116.60 126.71 177.77 Total Liabilities/Equity (%) 219.27 ,, 221.90 219.52 225.55 362.11 Profitability (%) Return on Assets 2.00 1.64 2.00 2.50 (8.22) Return on Equity 6.40 5.27 6.38 8.14 (37.98) Profit Margin 1.84 1.55 1.88 2.40 (7.60) Other Key Ratios R&D Spending % of Revenue 7.60 8.28 8.24 7.96 7.85 Capital Spending % of Revenue 8.48 9.02 7.39 5.52 5.09 Employees 343,800 336,700 310,300 304,800 272,800 Revenue (FK)/Employee 160.08 156.56 180.73 187.74 204.41 Capital Spending % of Assets 9.22 9.52 7.84 5.75 5.50 Exchange Rate (US$1=:F) 2.45 2.03 1.98 2.13 1.81 Soujce: N.V, Riilips Gloeilampenfabfiekoi AnmiaJ Rqjorts and Fonns 10-K Dataqoest (October 1991)

THE COMPANY

STOP PRESS: In November 1987, Plessey acquired Ferranti Semiconductor for $49 million. Ferranti Semiconductor has assets valued at $64 million and 1986 worldwide semiconductor revenue of $96 million. Ferranti employs 2,000 people in its semicon ductor operation.

BACKGROUND AND OVERVIEW The Plessey Company pic was founded in 1919 by Brian Clark. His son, Allen Clark, later Sir Allen, led the Company through nearly four decades of major growth, from the 1920s until his death in 1961. The present chairman and chief executive officer is Sir John Clark; his brother, Michael Clark, is the deputy chairman. Prior to its first major investment in semiconductors, the Company's product port folio included radio communications equipment (in particular military), aircraft equipment (primarily pumps), electrical components (resistors, capacitors, and connectors), among other equipment. In line with the Company's strategy of concentrating in the high-technology product areas, many of these activities have been dispensed with during the last few years.

In 1957, Plessey began to invest in semiconductor operations. A joint activity (51 percent Plessey and 49 percent Philco) was formed to manufacture electrochemical transistors. During 1960 and 1961, Plessey acquired the telephone operations of ATE and Ericsson Telephones (the U.K. arm of Ericsson) in the United Kingdom, signaling its move into British Post Office procurements and into the telecommunications market, in general. Plessey's commitment to integrated circuits (including merchant sales) was marked by the introduction of an IC manufacturing process developed by Plessey Research (Caswell) Limited in 1966. Plessey's IC manufacturing operation is located in Swindon, Wiltshire, United Kingdom, In December 1983, Plessey created a gallium arsenide IC subsidiary called the Plessey Three-Five Group Ltd. Investment of US$75 million in the new company was spread over several years. Throughout 1986, Plessey continued to give priority to new product development and to the modernization of production and research facilities. In February 1986, Sir James Blyth was appointed managing director of the Company. Throughout 1986, Plessey was locked in battle to resist takeover by General Electric Company (GEC), the only U.K company with larger electronics sales than Plessey. The issue was whether such a merger would consolidate the fragmented U.K. electronics industry.

The U.K. government finally ruled against GEC's $1.8 billion bid for Plessey on the grounds that the takeover would not serve the national interest. In June 1987, GEC assured the U.K. Office of Fair Trading that it would not acquire more than 15 percent of Plessey.

PRODUCTS AND MARKETS SERVED Plessey's current activities center on the development and supply of telecommunications and electronic defense systems. The Company's work in solid-state and electronic components supports these activities and provides a presence in the merchant component market. The Plessey Company pic has established the following three major operational groups of logically integrated activities in which products and markets are interrelated: • Telecommunications • Electronic systems • Engineering and components All three operational groups rely extensively on silicon technology and are grouped for administrative purposes into management and trading companies and divisions. Table 1 shows Plessey's turnover by business activity; Table 2 shows the Company's turnover by main markets; and Table 3 shows Plessey's research and development expenditure. Plessey Telecommunications and Office Systems provides telecommunications authorities, public services, and commercial operators with equipment and systems based on software-controlled digital technology. The aim is to unite telecommunications and data processing in the new technology of integrated information handling. Plessey Electronics Systems supplies a related group of products and services to the avionics and defense industries, as well as to the civilian communications sector. Plessey Engineering and Components includes the Solid State Division, which manufactures standard, semicustom, and custom semiconductors and optoelectronic devices for military and industrial high-technology use, as well as components for professional applications. Plessey Microsystems produces custom-designed and standard digital systems and subsystems based on microsystems and memories.

Table 1 The Plessey Company pic Estimated Revenue by Business Activity (Millions of Pounds Sterling)

(Fiscal Year Ending March 28)

Activity 1995 1986

Telecommunications £ 681. 9 £ 682. 4 Electronic Systems and Equipment 465. .9 518. ,0 Microelectronics and Components 149. ,0 161. ,3 Aerospace and Engineering 129. ,5 120, ,7 Computer Peripherals 39., 4 34,r 3

Subtotal £1 ,465. .7 £1 ,516, .7

Less Intercompany Content 49 f2 55, 6

Total £1 ,416 .5 £1 ,461 .1

Table 2 The Plessey Company pic Revenue by Geographic Area (Millions of Pounds Sterling)

(Fiscal Year Ending March 28)

1985 1986

United Kingdom £ 975.5 £1,036.9 North America 180.5 174.5 Europe 71.6 85.9 Africa 88.3 60.5 Australia 48.9 47.5 Asia 42.4 41.3 Others 8.5 14.5 Total £1,415.7 £1,461.1

Source: The Piesise y Company pic Dataquest January 1988

Table 3 The Plessey Company pic Research and Development &q>enditure (Millions of Pounds Sterling)

(Fiscal Year Ending March 28)

1995 1986

Group Funded £ 83.8 £ 81.2 Customer Funded 219.2 237.5

Total £303.0 £318.7

Source: The Plessey Company pic Dataguest January 1988

Plessey Peripheral Systems is active in hardware (minicomputer systems, micro computer systems, add-on memories, visual displays, terminals, and printers), software (for the range of mini/microcomputers), and service (hardware and software support and maintenance) operations. Plessey Research covers research and applications of electronic materials, devices, and subsystems. The R&D center has pilot production lines and serves as a link between R&D and subsequent full-scale production.

FACILITIES Plessey's headquarters are located in Ilford, Essex, United Kingdom, and the main board's London offices are located in Millbank Tower, London, United Kingdom. Plessey is made up of about 34 subsidiaries and operates internationally through 250 estab lishments in 130 countries. Plessey Semiconductors, Ltd., has its headquarters in Swindon, Wiltshire, United Kingdom. It also maintains sales offices in France, West Germany, Italy, and Belgium. Plessey's major semiconductor facilities are listed in Table 4.

Table 4 The Plessey Company Pic Major Semiconductor Facilities

Location Description of Operation Plessey Research (Caswell) Limited Towcester, Established: 1940 Northamptonshire Products: Process research for all Plessey semi conductor products. New fabrication line is currently under construction. A new 46,000-sguare-foot microelec tronics research laboratory was completed in 1984. The facility is used for the research of submicron microcircuits and computer-aided design (CAD).

The Plessey Company pic Towcester, Established 1940 Northamptonshire Products: Optoelectronic and microwave devices Technologies: GaAs, GaP, GaAsP Size: 40,000 square feet

Swindon, Wiltshire Established: 1957 Products: Bipolar digital and linear integrated circuits Capacity: 5,000 wafers/month, 3-inch wafers Size 110,000 square feet

Irvine, California Established 1970 Products: Semicustom design center, CMOS and ECL gate arrays, Microcell semicustom ICs, and hybrid manufacturing facility. In 1986, Plessey doubled the space of the marketing and design center. Technology: CMOS, ECL, low-power NMOS Capacity: No wafer fabrication. In October 1984, Plessey signed an agreement with Silicon Development Systems to supplement its existing center at Irvine. Plessey will use additional design locations in Boston and Los Angeles, through this agreement.

(Continued)

Table 4 (Continued) The Plessey Company Pic Major Semiconductor Facilities

Location Description of Operation

Plympton, Devon Established: 1974 Products: MOS integrated circuits Technologies: N-channel and P-channel, silicon gate and metal gate, MOS, NMOS, and CMOS Capacity: 8,000 wafers/month, 4-inch wafers Size: 32,000 square feet. New clean room built in 1985

Roborough, near Established: 1986. Investment was £31 million, Plymouth, Devon plus another £21 million for extra equipment and facilities inside. A second expansion phase is planned for 1989. Products: Gate arrays Technology: CMOS Capacity: 12,000 6-inch wafers/month (as of July 1987) Size: 186,000 square feet

Source: Dataguest January 1988

fflCHLIGHTS

1987 Below is a synopsis of recently published highlights of Plessey's electronics activities. In May 1987, Plessey was poised to announce a £160 million order from the Australian Ministry of Defense for the Raven tactical radio system. This is the largest tactical radio contract ever awarded outside the United States.

In April 1987, Plessey announced that it expects to create more than 1,000 jobs in the semiconductor area over the next five years. This is part of an ambitious development plan to expand sales from the current £70 million to £350 million. Part of the plan also includes the new £33 million facility at Roborough, near Plymouth, Devon, for the manufacture of semicustom circuits. In April 1987, Plessey's U.S. telecommunications subsidiary, Stromberg-Carlson Corporation, announced profitability for the first time in years. In 1986, sales grew 28 percent, establishing the company in the U.S. telecommunications market. In April 1987, Stromberg-Carlson Corporation won a $100 million digital telephone exchange order from BellSouth. Approximately 100 rural exchanges were installed throughout the southern United States, each with a capacity of about 6,000 lines. In March 1987, British Telecom awarded a £64 million cooperative contract to Plessey and GEC to supply 455,000 lines of System X equipment. Plessey and GEC have agreed to jointly market the exchange, with each company focusing on specific areas. If any orders are split between the two companies, then both would manufacture some of the exchanges. The two companies have increased their R&D spending on the exchange to $159 million annually for the next 15 years. In March 1987, Plessey won the first major export order for System X when it received a $24 million contract from Colombia for the digital exchange. In February 1987, Telettra and Italtel, Italian telecommunications manufacturers, approached Plessey and GEC with a view toward setting up an Anglo-Italian alliance for telecommunications equipment manufacture. The two Italian companies have already started similar discussions with Ericsson. In February 1987, Plessey unveiled a 1-micron bipolar-technology process using three layers of metal and a 5.25-micron line pitch. This process allows for up to 20,000 gates on a device, with maximum toggle frequency of 5.5 GHz and gate delays of 70ps. In 1988, the Company's strategy is to increase the layers from three to four, to decrease the pitch to 3.5 microns, to increase the number of gates to 30,000, and to reduce gate delays to 50ps. Samples are due in January 1988 and first production should occur in December 1988. Finally, in mid-1989, the Company hopes to sample devices of 0.7 micron, with line pitch of 2.5 microns, 40,000 gates per device, a maximum toggle frequency of 11 GHz, and gate delays of 35ps. Full production of this process is envisaged in the summer of 1990. In January 1987, Plessey and Westinghouse finalized their collaborative agreement on airborne radar, air defense, air traffic control, naval radar, electronic warfare systems, and advanced-technology research.

1986 In December 1986, Plessey failed to break into the French market with its System X telephone exchange equipment. However, the French Minister of Posts and Telecommunications indicated that other areas, such as cellular radio telephone systems and private branch exchanges, may be open to the Company in France. In November 1986, Plessey launched six new products at the Electronica show in Munich, West Germany. These include the ELA 6000 family of ECL gate arrays and a four-piece DSP chip set capable of 64-bit or higher accuracy. In October 1986, Plessey announced the release of an intelligent bubble memory subsystem for the VME bus. In September 1986, Plessey ran the first 6-inch wafers produced at its new diffusion plant at Roborough, near Plymouth, Devon. In September 1986, Plessey and Valid Logic Systems announced a joint development program that enables designers to use Plessey semicustom libraries on Valid workstations. In August 1986, Plessey successfully fought off a £1.2 billion takeover bid by GEC. The U.K. government finally ruled that the takeover would be against public interest, as it would reduce competition in the United Kingdom. In July 1986, Plessey announced that it would upgrade its gallium arsenide foundry at Towcester so that it could manufacture faster devices. In July 1986, Plessey and Burroughs established a cooperative marketing agreement in advanced office automation systems. The agreement aims to link Burroughs' expertise in mainframe computing and Plessey's skills in telecommunications to provide integrated office networks where voice and data telephony can be combined in one system. In July 1986, Plessey, CIT-Alcatel, and Italtel set up a £100 million project to develop a module that will upgrade the three companies' public switches. Half the funding will come from the Eureka program, and half from the companies themselves. Dataquest's estimates of Plessey's European and worldwide semiconductor revenue are given in Tables 5 and 6, respectively.

Table 5 The Plessey Company pic Estimated European Semiconductor Revenue by Product Line (Millions of Dollars)

19?2 1993 1984 1985 1986

Total Semiconductor $35 $38 $51 $66 $78

Total Integrated Circuit $34 $37 $45 $58 $65 Bipolar Digital 8 8 9 13 16 MOS 13 17 23 29 30 Linear 13 12 13 16 19

Total Discrete 0 0 0 0 0 Transistor 0 0 0 0 0 Diode 0 0 0 0 0 Thyristor 0 0 0 0 0 Other 0 0 0 0 0

Total Optoelectronic $ 1 $ 1 $ 6 $ 8 $13

Source: The Plessey Company pic Dataquest January 1988

Table 6 The Plessey Company pic Estimated Worldwide Semiconductor Revenue by Product Line (Millions of Dollars)

1982 1983 1984 1995 1986

Total Semiconductor $53 $61 $82 $99 $112

Total Integrated Circuit $50 $58 $75 $89 $ 96 Bipolar Digital 19 21 27 30 32 MOS 14 19 26 35 37 Linear 17 18 22 24 37

Total Discrete 0 0 0 0 0 Transistor 0 0 0 0 0 Diode 0 0 0 0 0 Thyristor 0 0 0 0 0 Other 0 0 0 0 0

Total Optoelectronic $ 3 $ 3 $ 7 $10 $ 16

Source: The Plessey Company pic Dataquest January 1988

OUTLOOK Plessey's investment in the semiconductor sector over the last few years is paying off. The Company is a pioneer of semiconductor development in the United Kingdom, as well as one of the world leaders in telecommunications and defense electronics. Plessey aims to maintain its present balance of semiconductor sales at about 80 percent merchant and 20 percent captive. Over the next five years, Plessey Semiconductors expects to create more than 1,000 jobs. This will nearly double its present work force. The ultimate aim is to expand sales from a current £70 million to £350 million.

Company Backgrounder by Dataquest

Samsung Electronics Company Ltd. 250, 2-Ka, Eulchi-Ro Chung-Ku, Seoul, South Korea Phone: (02) 751-2114 Fax: (02) 753-0967 Dun's Number: 68-775-0836 Date Founded: 1969

CORPORATE STRATEGIC DIRECTION In the Asia/Pacific-ROW market, Samsimg continues to narrow the distance behind Toshiba by pursuing a diversification strategy of its semiconductor business. Samsung Electronics Company Ltd. (SEC), founded Samsung's MOS memory sales dominated 18.7 per in 1969 by the Samsung Group, began as a manufac cent of the Asian captive and merchant markets. turer of black-and-white televisions. In November Samsung increased sales of MOS logic devices from 1988, SEC merged with Samsung Semiconductor and US$117 million in 1989 to US$142 million in 1990. Telecommunications Company. Today, SEC is a This 21 percent increase allowed Samsimg to surpass worldwide supplier of consumer electronics products, Toshiba in Asia/Pacific-ROW by controlling a domi personal computers, semiconductors, factory automa nant 15.3 percent of the logic market tion systems, and telecommunications equipment. Although actual R&D expenditure is not given, SEC SEC actively participates in the development of elec reports that R&D spending is approximately 5 percent of annual sales. In addition to its R&D activities in tronics industries worldwide. The company operates a South Korea, SEC is expanding R&D in the United global business with six offshore plants, 22 subsidi States and Japan. SEC employs over 2,700 scientists aries, and 40 international branch offices. The com and engineers in R&D activities worldwide. Total pany also actively works to expand its markets employment as of December 31, 1990, was approxi through licensing of production technologies and the mately 43,000. Samsung brand name. SEC's strategy is to separate goods and services into fields of technology to improve international competitiveness. SEC continues More detailed information is available in Tables 1 and to expand its manufacturing, production, and R&D 2, which appear after "Business Segment Strategic facilities overseas. Direction" and present corporate highlights and reve nue by region. Information on revenue by distribution channel is not available. Tables 3 through 8 at the end Dataquest estimates that Samsung ranks 15th in total of this backgrounder present comprehensive financial semiconductor sales worldwide in 1990, holding a information. Complete financial data for 1990 were 2.3 percent market share based on estimated sales not available at the time this report was written; thus, totaling over US$1.3 billioa Samsung ranks fifth 1990 was not included in the financial tables. worldwide in MOS memory, with annual sales esti mated to be US$971 million and a market share of 7.4 percent BUSINESS SEGMENT STRATEGIC Dataquest believes that Samsung's business aggres DIRECTION siveness, coupled with South Korea's electronics equipment recovery, should enable Samsung to SEC is divided into five major business sectors: the become Asia's number one semiconductor vendor in semiconductor business, the information systems 1991. Dataquest anticipates that Samsung wiU focus business, the computer and systems business, the on developing microcomponents, application-specific consumer electronics business, and the domestic sales standard products business, and 4Mb DRAMs. business.

Semiconductors The telecommunications equipment segment is responsible for developing and marketing SEC's tele SEC began developing semiconductor products in phone products. Product lines in this category include 1974 and currently produces over 3,000 types of cordless and cellular phones, key phone systems for semiconductor products. Its memory products include small business or branch office use, and facsimile DRAMs, SRAMs, EPROMs/EEPROMs, and mask equipment. ROMs. SEC also produces microcontrollers; application-specific integrated circuits (ASICs), including gate arrays, standard cells, and PC chip The integrated communications systems group sets; bipolar and MOS linear ICs; logic devices; and produces LAN products, factory automation (FA) sys transistors. The company's latest products include the tems, integrated control systems (ICS), and building 1Mb and 4Mb DRAMs, advanced linear ICs, automation systems. SEC uses its own FA and ICS microprocessor peripheral devices, gate arrays, logic systems at its plants in Suwon and Kiheung, South famihes, high-efficiency MOSFETs, and power tran Korea. The Suwon plant is one of the world's largest sistors. electronics integrated manufacturing complexes, covering 370 acres and producing everything from electronic parts and components to finished goods The company's semiconductor segment headquarters such as audio/video products and home appliances. are in Seoul, with major manufacturing plants in Bucheon and Kiheung, South Korea. Established in 1985, Samsung Semiconductor Inc., in San Jose, Computer and Systems Business California, develops and markets memory products and microprocessor peripherals in the United States. SEC produces and exports various kinds of computers SEC also has ASIC design centers in Tokyo, including personal computers, mainframes, and super San Jose, and Seoul. computers. The company also manufacdires computer products and peripherals such as printers, monitors, flexible, hard-disk drives, and workstations. In addi Information Systems tion, SEC produces a wide range of office automation equipment, including teletext recorders, copiers, The company's information systems business segment typewriters, electronic cash registers, and electronic includes the following subsections: fiber-optic com calculators. munications systems, switching systems, telecommu nications equipment, computer and office automation SEC is also committed to the development of equipment, integrated communications systems, and integrated communications systems such as LANs, home automation and new media equipment FA, ICS, and building automation systems.

Fiber-optic communications systems consist of optical In 1991, Samsung Information Systems America Inc. fibers, optical cables, and optical transmission equip introduced its first UNIX-only product, the SCGS-19 ment. SEC products are used in long-distance X ^^ndow Systems Terminal, a 19-inch monochrome telecommunications applications such as fiber-optic X-terminal based on die Advanced Micro Devices LAN systems, data computer networks, and optical 29000 RISC microprocessor. In addition, Samsung teleconferencing. They will also be used in South announced the SystemMaster 486/33TE, a 33-MHz Korea's future Integrated Services Digital Networks. UNIX-compatible version of its 80486-based EISA engineering workstation and file server. Both products are designed to be sold by UNIX VARs that The switching systems segment produces electronic require a competitive, low-cost solution for technical switching systems. By the end of 1988, SEC had and high-end commercial applications. installed more than 3.5 miUion electronic circuits in South Korea. One of the most recent product developments in this segment is SEC's TDX-1, a Samsung Information Systems America also digital switching system. In addition, SEC is develop introduced a new addition to its family of slim-line ing data communications switching equipment, IBM-compatible computers, the DeskMaster 386S/20. known as private automatic branch exchange. Current The company also announced 40- and 60MB versions models include the SDX-L and COREX systems. of its NoteMaster 386S/16 notebook computer. The

addition of the DeskMaster 386S/20 to Samsung's electronic products. Video products include televi DeskMaster product line is in keeping with the com sions, VCRs, and camcorders. Audio equipment pany's commitment to provide corporate users with ranges from portable cassette players to conq>act disc hardware solutions that maximize the capabilities of players to large home entertainment centers. The ^^^dows 3.0. SEC's overall strategy is to increase its home appUance segment produces microwave ovens, share of the PC network hardware market, the area in washing machines, vacuiun cleaners, refrigerators, which these products are targeted. and commercial vending machines, and freezers.

Consumer Electronics Samsung also produces a variety of audio and home appUance systems. SEC's line of audio equipment The consumer electronics business segment is com ranges from miniature portable cassette players to posed of several subsegments: industrial electronics large home entertainment centers. SEC produces equipment, video equipment, audio equipment, and many different types of home appUances, including home appliances. washing machines, vacuum cleaners, ulfrasonic humidifiers and dehumidifiers, and microwave ovens. The industrial electronics equipment segment produces FA equipment The company produces a variety of automated equipment including parts- insertion machines, carriers, industrial robots, printed circuit board in-circuit testers, and line-monitoring Further Information systems. For further information on the company's business SEC's video, audio, and home apphance segments segments, please contact Dataquest's Semiconductors produce the bulk of the company's consumer Asia service.

Table 1 Corporate Highlights (Millions of U.S. Dollars)

1987 1988 1989 Three-Year Revenue 2,917.0 4,249.3 6,063.4 Percent Change 45.67 31.95

Capital Expenditure 193.6 279.8 1,248.1 Percent of Revenue 6.64 6.58 20.58

R&D Expenditure NA NA NA Percent of Revenue 0 0 0

Number of Employees 22,965 38,079 43,000 Revenue (US$K)/Employee 127 112 141

Net Income 41.8 138.7 233.4 Percent Change 231.82 55.64 Exchange Rate (US$1=W) 825.94 734.25 679.00

1990 Calendar Year Ql Q2 Q3 Q4 Quarterly Revenue NA NA NA NA Quarterly Profit NA NA NA NA

NA = Not available Source: Samsung Electronics Company Ltd. Annual Reports Dataquest (October 1991) l^ble 2 Revenue by Geographic Region (Percent)

Region 1987 1988 1989 North America 27.38 29.65 NA International 72.62 70.35 NA

Source: Samsung Electronics Company Ltd. Animal Reports Dataquest (October 1991)

1991 SALES OFFICE LOCATIONS SUBSIDIARIES

North America—8 North America Europe—7 Samsung Electronics America Inc. (United States) Japan—2 Samsimg Electronics Canada Inc. (Canada) Asia/Pacific-ROW—19 Samsimg Information Systems America Inc. (United States) Samsung International Inc. (United States) Samsung Semiconductor Inc. (United States)

MANUFACTURING LOCATIONS Europe Samsung Electronica Portuguesa SARL (Portugal) North America Samsung Electronics Espanola S.A. (Spain) Samsimg Electronics France (France) Ledgewood, New Jersey Samsung Electronics GmbH (Germany) Color televisions Samsung Electronics Hungarian (Hungary) Saddlebrook, New Jersey Samsung Electronics Manufacturing UK (United Electronics Kingdom) San Jose, California Samsung Hectrooics UK Ltd. (United Kingdom) Semiconductors Samsung Electronics Europe GmbH (Germany)

Japan Europe Samsung Electronics Japan Co. Ltd. (Japan) BiUingham, England VCRs and microwave ovens Estoril, Portugal ROW Color televisions Samsung Electronic Australia Pty Ltd. (Australia) Samsung Electronic H.K. Co. Ltd. (Hong Kong) AsialPacific Samsung Electronics Panama S.A. (Panama) Samsung Electronics Ticaret A.S. (Turkey) Bangkok, Thailand Samsung Maspion Indonesia (Indonesia) Video products Samsung Mexicana S.D. De C.V. (Mexico) Bucheon, South Korea Thai-Samsung Electronics Co. Ltd. (Thailand) Linear IC, ASIC IC, Logic IC, MOS IC, MICOM, transistors Kiheimg, South Korea DRAM semiconductors Kiuni, South Korea ALLIANCES, JOINT VENTURES, AND Switching systems, telecommunications LICENSING AGREEMENTS equipment, fiber-optic communications systems Suwon, South Korea 1991 FA equipment, video, audio, cooUng/heating systems, home appliances Army Microsystems Inc. Under a five-year agreement with Array Microsystems, Samsung Electronics wiU manufac ROW ture high-performance digital signal processing chips codeveloped by engineers from both Sam Hjuana, Mexico sung and Array Microsystems. The design and Color televisions development will take place in the Array

Microsystems headquarters in Colorado Springs, development and production support using Applied Colorado, while the manufacturing wUl take place Materials' Precision 5000 Etch system. The agree at Samsung's manufacturing facilities in Bucheon, ment follows an earlier one in May 1990 between near Seoul, Korea. The two companies will con the two on chemical vapor deposition process tribute a total of about $5 million to the joint development with Samsimg's Kiheung Research effort. and Development Center. The new agreement is aimed at meeting Samsung's current and future Genus Incorporated requirements in production fabs, and covers virtu Genus signed a joint-development pact with ally all of Applied Materials' etch technologies, Samsung Electronics Co. to develop advanced including single-crystal silicon, polysilicon, tungsten processes for Samsung's coming 16Mb tungsten siUcide, and silicon oxide etching. and 64Mb DRAMs. Genus of Mountain "V^ew, Cahfomia, will provide on-site support at Sam Mass860 sung's facility in Seoul to help Samsung develop Intel and five of its largest customers—Alliant, volume-production technologies for submicron IBM, Okidata, Olivetti Systems, and Samsung applications. Electronics—^formed a consortium called M]ass860 to speed up porting of useful applications to Intel's Hewlett-Packard Company i860 RISC microprocessor. Besides promoting a Samsung has an agreement with Hewlett-Packard standard ABI for a wide range of hardware plat- whereby Samsung will manufacture the PA-RISC foims using the i860, the Mass860 program will MPU and will develop other compatible devices provide software developers with porting help, used to manufacture the HP Apollo 9000 Series technical support, and joint market opportunities. 7000. (Also see Yokogawa Hewlett-Packard.) Sequa Ingram Micro Inc. Samsung will jointly develop nonstop minicom Samsung Information Systems America signed a puters with Sequa. Samsung will supply die com distribution agreement with Ingram Micro, the puters on an OEM basis to Sequa and will market world's largest distributor of microcomputer them in South Korea. products. This deal makes Ingram Micro one of Samsung's select distributors of personal com Sequoia Systems Inc. puters, notebooks, peripherals, and color and Sequoia Systems and SEC have agreed to terms of monochrome monitors. an OEM contract in which Samsung will resell Sequoia's fault-tolerant computers and pay for Texas Instruments Inc. development of a new low-end UNIX-based com Texas Instruments and Samsung Electronics Co. puter. The new machine will be marketed under signed a five-year cross-licensing agreement in the Samsung name in South Korea. which both companies will pay royalties to each other for the use of their respective patented mem Skydata Inc. ory chip technology. Texas Instruments expects Skydata of Melbourne, Florida, and two other royalty payments from Samsung to gready exceed companies—Matra of Paris, France, and the amounts received by TI imder the previous Samsung—have agreed to jointiy develop a com agreement, which expired at the end of 1990. plete line of satellite and data communication products and systems. Matra will be responsible Yokogawa Hewlett-Packard (YHP) for marketing Skydata products and systems in By the end of 1991, YHP will begin to market a Europe, the Middle East, and Africa. Skydata will low-end version of the "HP Apollo 9000 Series be responsible for product development and mar 700" RISC station, which will be manufactured keting for the remainder of the world, while by Samsung Electronics Co. (Also see Hewlett- Samsung will be involved in manufacturing. Packard.) Teradyne Inc. Teradyne and SEC have agreed to joindy develop 1990 a next-generation memory test system targeted at 16Mb and 64Mb DRAMs. Samsung will help Applied Materials Inc. characterize the system's capabilities and Applied Materials has a joint-development agree parameters; Teradyne wUl design the hardware and ment with SEC on advanced plasma etch process software.

USSR Novell Inc. Samsung Electronics will develop an assembly SEC signed an agreement with Novell to market factory for VCRs, CRTs, and microwave ovens LAN hardware systems with Novell's NetWare. near Moscow. SEC will also export $500 million Samsung Information Systems America and worth of semifinished VCRs and $1 billion worth Novell comarketed the PC terminal and file servers of parts and equipment to the Soviet Union. until August 1989, at which time Samsung became the sole distributor of the servers. 1989

Hewlett-Packard Company (HP) SEC licensed HP's RISC-based Precision MERGERS AND ACQUISITIONS Architecture (PA). SEC will manufacture the HP-PA chips for use in HP and third-party sys tems. In return for manufacturing the chips, SEC In November, 1988, SEC merged with Samsung gains advanced CMOS technology and a version Semiconductor and Telecommunications Company. of the UNIX operating system.

IBM Corporation SEC and IBM signed a cross-Ucensing agreement for semiconductor technology. In addition, SEC KEY OFFICERS and IBM signed an agreement giving SEC access to IBM's personal computer patents. Jin-Ku Kang Intergraph Corporation Chairman and chief executive officer SEC was signed as the first alternate source for Kwang-Ho Kim Intergraph's CUpper microprocessor, a 32-bit RISC President, Semiconductor Business chip. Samsung also has worldwide marketing rights for the processor. Yong-Moon Jung Executive vice president. Information Systems Microsoft Corporation Samsimg licensed Microsoft's PostScript software Sun-Doo Hwang for iise with its printer products. Executive vice president. Domestic Operations USSR Young-Soo Kim Samsimg agreed to export $81 million worth of Executive vice president. Computers and Systems semifinished and finished VCRs to the USSR. Jong-Yong Yun Executive vice president, Consimier Electronics 1988 Ixys SEC signed a licensing agreement with Ixys to produce power MOSFETs and smart-power ICs PRINCIPAL INVESTORS developed by Ixys.

NCR Corporation Samsung life Insurance—8.7 percent SEC and NCR signed a technology licensing and Lee Kun Hee—8.5 percent exchange agreement that gives Samsung access to Samsung Company—4.2 percent NCR's 1.5- and 2-micron CMOS ASICs. NCR will have access to manufacture and market SEC's 64K and 256K SRAMs. As part of the agreement, SEC will also Ucense NCR's ASIC design soft ware for workstations, NCR's high-density ROMs, FOUNDERS and will be able to subhcense the NCR products to SEC customers. The Samsung Group

Table 3 Balance Sheet Fiscal Year Ending in December (Millions of U.S. Dollars)

Balance Sheet 1987 1988 1989 Cash 98.6 200.6 79.6 Receivables 362.1 512.4 512.0 Maiketable Securities 5.2 18.7 2.8 Inventory 224.7 615.1 865.9 Other Current Assets 70.7 198.3 127.7 Total Current Assets 761.3 1,545.1 1,587.9 Net Property, Plants 438.9 1,662.2 2,107.6 Other Assets 176.8 418.6 589.5 Total Assets 1,377.0 3,625.9 4,285.0 Total Current Liabilities 886.5 1,597.9 1,506.9 Long-Term Debt 151.2 1,051.2 1,413.6 Other Liabilities 71.8 261.9 309.3 Total Liabilities 1,109.5 2,910.2 3,229.8 Converted Preferred Stock NA NA 27.5 Common Stock 84.1 266.8 268.9 Other Equity 50.6 130.4 244.8 Retained Earnings 132.8 318.5 513.9 Total Shareholders' Equity 267.5 715.7 1,055.2 Total Liabilities and Shareholders' Equity 1,377.0 3,625.9 4,285.0 NA = Not available Soince: Samsimg Electronics Company Ltd. Annual Reports Dataquest (October 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending in December (Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement 1987 1988 1989 Revenue 2,917.0 4,595.1 6,063.4 Domestic Revenue 798.6 1,408.6 2,370.80 International Revenue 2,118.4 3,186.5 3,692.6 Cost of Sales 2,480.5 3,762.9 4,554.3 R&D Expense NA NA NA SG&A Expense 265.9 440.6 789.7 Capital Expense 193.6 302.5 1,248.1 Pretax Income 55.4 188.4 293.6 Pretax Margin (%) 1.90 4.10 4.84 Effective Tax Rate (%) NA NA NA Net Income 41.8 138.7 233.4 Shares Outstanding, Millions 13.9 36.2 36.5

Per Share Data Earnings 9.50 8.24 14.08 Dividend 0.01 0 0 Book Value 15.90 13.42 28.91 Exchange Rate (US$1=W) 825.94 734.25 679.00

NA = Not available Soutce: Samsung Electronics Company Ltd. Annoal Rqxnts Dataquest (October 1991)

Table 5 Balance Sheet Fiscal Year Ending in December (Billions of Won)

Balance Sheet 1987 1988 1989 Cash 81.5 136.2 54.0 Receivables 299.0 347.9 347.6 Marketable Securities 4.3 12.7 1.9 Inventory 185.6 417.7 587.9 Other Current Assets 58.4 134.6 86.7 Total Current Assets 628.8 1,049.1 1,078.1 Net Property, Plants 362.6 1,128.7 1,431.1 Other Assets 146.1 284.2 400.3 Total Assets 1,137.5 2,462.0 2,909.5 Total Current Liabilities 732.3 1,084.5 1,023.2 Long-Term Debt 124.9 713.8 959.8 Other Liabilities 59.3 177.8 210.0 Total Liabilities 916.5 1,976.1 2,193.0 Common Stock 69.5 181.1 182.6 Other Equity 41.8 88.5 166.3 Retained Earnings 109.7 216.3 349.0 Total Shareholders' Equity 221.0 485.9 716.5 Total Liabilities and Shareholders' Equity 1,137.5 2,462.0 2,909.5

Source: Samsung Electronics Company Ltd. Annual Repotts Dataquest (October 1991)

Table 6 Consolidated Income Statement Fiscal Year Ending in December (Billions of Won, except per Share Data)

Consolidated Income Statement 1987 1988 1989 Revenue 2,381.3 3,028.2 4,006.8 Domestic Revenue 650.2 905.7 1,499.6 International Revenue 1,731.2 2,122.6 2,507.3 Cost of Sales 2,048.9 2,555.0 3,092.4 R&D Expense NA NA NA SG&A Expense 219.7 299.2 536.2 Capital Expense 159.9 205.4 847.4 Pretax Income 45.8 127.9 199.4 Pretax Margin (%) 1.92 4.22 4.98 Effective Tax Rate (%) NA NA NA Net Income 34.5 101.8 158.5 Shares Outstanding, Millions 13.9 36.2 36.5

Per Share Data Earnings 7.89 5.98 9.56 Dividend 0.24 0.56 0 Book Value 15.90 13.42 19.63

Source: Samsniig Electronics Coiiq>any Ltd. Annual Repoits Dataqoest (October 1991)

Tkble 7 Key Financial Ratios Fiscal Year Ending in December Key Financial Ratios 1987 1988 1989 Liquidity Current (Times) 0.86 0.97 1.05 Total Assets/Equity (%) 514.83 506.67 406.06 Current Liabilities/Equity (%) 331.44 223.19 142.79 Total Liabilities/Equity (%) 414.81 406.68 306.06 Profitability (%) Return on Assets 0.03 0.04 0.05 Return on Equity 0.16 0.21 0.22 Profit Margin 1.45 3.36 3.96 Other Key Ratios R&D Spending % of Revenue 0 0 0 Capital Spending % of Revenue 6.71 6.78 21.15 Employees 22,965 38,079 43,000 Revenue (W K)/Employee 104 80 93 Capital Spending % of Assets 14.06 8.34 29.13 Exchange Rate (US$1=W) 825.94 734.25 679.00 NA s Not available Source: Samsong Electronics Conq>any Ltd. Annual Repoits Dataqoest (October 1991)

BACKGROUND AND OVERVIEW Semikron International was founded in 1951, in Nuremberg, West Germany, by Dr. Fritz Martin and several executives from ITT Semiconductors. Initially established to produce selenium rectifiers, the Company has grown to be a profitable worldwide operation. The Company relies on niche products, technological excellence, and maximum flexibility for the customer. Tables 1 and 2 give Dataquest estimates of Semikron's European and worldwide semiconductor revenue, respectively.

Table 1 Semikron International Estimated Eur(q>ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1983 1994 3-99? 1996 1987

Total Semiconductor $25 $27 $30 $43 $49 Total Integrated Circuit 0 0 0 0 0 Bipolar Digital 0 0 0 0 0 MOS 0 0 0 0 0 Linear 0 0 0 0 0

Total Discrete $25 $27 $30 $43 $49 Transistor 0 0 0 0 0 Diode 9 10 11 17 19 Thyristor 10 10 11 13 15 Other 6 7 8 13 15 Total Optoelectronic 0

Source: Dataquest January 1989

Table 2 SemikrcMi Intemati<»al Estimated Worldwide SemioMiductor Revenue by Product Line (Millions of U.S. Dollars)

1993 1994 199? 1990 1987

al Semiconductor $36 $40 $48 $72 $79

Total Integrated Circuit 0 0 0 0 0 Bipolar Digital 0 0 0 0 0 MOS 0 0 0 0 0 Linear 0 0 0 0 0

Total Discrete $36 $40 $48 $72 $79 Transistor 0 0 0 0 0 Diode 12 14 18 28 30 Thyristor 14 15 17 22 26 Other 10 11 13 22 23

Total Optoelectronic 0 0 0 0 0

Source : Dataque;S t January 1989

PRODUCTS AND MARKETS SERVED From early production of selenium rectifiers, the Company has specialized in the development of semiconductor rectifiers, thyristors, assemblies (bridge rectifiers), and other specific power products. Semikron has a strong capability in, and a flexible approach to packaging, a key area in high-power discrete devices. Dataquest believes that the major market outlets for Semikron's products are industrial electronic end-equipment makers, consumer electronics houses, and other end-user segments.

OUTLOOK Semikron has estalished itself as a leader in a specialized area of the merchant semiconductor market. The Company aims to maintain this position by being innovative and flexible. Dataquest believes that Semikron will continue growing steadily and that its reputation will be enhanced, both by this and by operating results, which have shown a profit for every year of operation to date.

BACKGROUND AND OVERVIEW SGS-Thomson Microelectronics B.V. (SGS-Thomson) was formed on May 21, 1987, and results from the combination of the total semiconductor business of IRI-STET and the civil semiconductor business of Thomson-CSF. The Company is owned 50 percent by Thomson-CSF, 45 percent by IRI, and 5 percent by its subsidiary, IRI-Finmeccanica. The Company is registered in Amsterdam, The Netherlands. The Company employs approximately 17,000 people worldwide at 18 factories, 7 R&D centers, 13 design centers, 42 direct sales offices in 20 countries, and more than 600 representatives and distributors worldwide. Table 1 lists the locations of these facilities. Table 1 Location of SGS^-Thomson Facilities

Total Revenue 1988: $1,085 million (1987: $859 million) Employees 17,000 Factories 18 France: Grenoble, Maxeville (Nancy), Rennes, Rousset (Aix-En-Provence), Tours Italy: Agrate (Milan), Castelletto (Milan), Catania Malaysia: Muar Malta: Kirkop, S. Gwann Morocco: Casablanca (2 factories) Singapore: Ang Mo Kio, Toa Payoh U.S.A.: Dallas, Montgomeryville (Philadelphia), Phoenix Advanced R&D Centers 7 France: Grenoble, Rousset (Aix-En-Provence), Tours Italy: Agrate (Milan), Castelletto (Milan), Catania U.S.A.: Dallas Design Centers France: Grenoble, Rennes, Paris (Gentilly) Italy: Agrate (Milan) Germany: Grafing, Munich Malaysia: Singapore Sweden: Stockholm (Kista) U.K.: London (Marlow) U.S.A.: Dallas, Montgomeryville (Philadelphia), Phoenix, Santa Clara Sales Offices 42 direct sales offices in 20 countries, more than 600 reps and distributors

Source: SGS-Thomson Dataquest June 1989

In the last 18 months, Mr. Pasquale Pistorio, the Company's president and CEO, restructured the Company. SGS-Thomson closed or sold five factories and reorganized its production by shifting approximately 100 processes. Since January 1, 1988, the Company has been acting as a single unit. The Company's 1988 results were good—sales grew approximately 26 percent, productivity increased from $44,000 per employee to $62,000 per employee in the last 18 months, and there was a small operating profit of $2.2 million. Although small in real terms, the profit is significant because it shows a reversal in the Company's performance from the day of its creation. In 1988, approximately 20 percent of total sales was spent on R&D, and 17.6 percent was spent on capital investments. R&D efforts are focused on high-growth market segments, while a high level of cooperation is being maintained in national and European R&D programs like ESPRIT, RACE, and Eureka. In October 1988, SGS-Thomson, Philips, and Siemens reached an agreement over the launch of the ECU 3.8 billion (US$4.2 billion) joint research and development program called Joint European Submicron Silicon (JESSI). However, some remaining issues still have to be resolved, such as funding from the European Commission's ESPRIT programs, and the identity of other participants in parts of the program, which is expected to include smaller semiconductor companies, users, and suppliers from all over Europe.

Products and Markets Served In 1988, SGS-Thomson's semiconductor revenue was mainly in Europe (60.0 percent) followed by the United States (21.3 percent), Asia/Pacific (17.7 percent), and Japan (1.0 percent). By end use, the split was as follows: Industrial (24 percent), computer (19 percent), consumer (19 percent), telecommunications (25 percent), automotive (10 percent), and military (3 percent). Although sales in Japan are small, that country has the same footing in the Company's organizational structure as any other region. SGS-Thomson's worldwide and European semiconductor activities are illustrated by product line in Tables 2 and 3, respectively. The Company's product range includes standard ICs, dedicated ICs, discrete products, semicustom ICs, and subsystems. Table 4 lists the Company's main product licenses and cooperation agreements with other companies.

Table 2 SGS-Thomson Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 19H 1985 1986 1987 1988 Total Semiconductor $545 $539 $700 $859 $1,085 Total Integrated Circuit N/A N/A N/A $646 $ 831 Bipolar Digital N/A N/A N/A 20 20 MOS N/A N/A N/A 344 459 Linear N/A N/A N/A 282 352 Total Discrete N/A N/A N/A $213 254 Transistor N/A N/A N/A 113 142 Diode N/A N/A N/A 44 68 Thyristor N/A N/A N/A 28 44 Other N/A N/A N/A 28 0 Total Optoelectronic

N/A := Hot Available

Table 3

SGS-TlKjmson Estimated Eurcpean Semiconductcn* Revenue by Product Line (Millions of U.S. Dollars)

1984 1985 1986 1987 1988

Total Semiconductor $343 $370 $468 $537 $650 Total Integrated Circuit N/A N/A N/A $397 $483 Bipolar Digital N/A N/A N/A 14 11 MOS N/A N/A N/A 209 262 Linear N/A N/A N/A 174 210 Total Discrete N/A N/A N/A $140 $167 Transistor N/A N/A N/A 65 85 Diode N/A N/A N/A 31 50 Thyristor N/A N/A N/A 20 32 Other 0 0 0 24 0 Total Optoelectronic

N/A = Not Available Source: Dataquest June 1989

Table 4 SGS-Thomson Main Licenses and Agreements

Main Technology and Product Licenses

Motorola: MPUs-MCUs Zilog: MPUs-MCUs LSI-Logic; Gate arrays NSC: MCUs Lattice: GAL family Cadence: CAD

Main Product Cooperation Agreements

Toshiba: High-speed CMOS National Semiconductor: Telecom ISDN Philips: Power package Oki: DRAM manufacturing

Source: SGS-Thomson Dataquest June 1989

OUTLOOK The corporate goal is to be a profitable and viable broad-range supplier of semiconductors and subsystems. This goal implies operating on a worldwide basis on the merchant market and growing to be, and remaining, among the top 10 suppliers in the world. The Company has a five-year expansion program, to expand to between 4 and 5 percent of the worldwide market by 1993. Sixty-five percent of the funding for this program is expected to come from internal resources, the rest is to come from further equity injections by shareholders and from the banks. SGS-Thomson grew 26.3 percent in 1988 over 1987. The Company believes there is room to grow without any new portfolios. However, in order to be among the leaders, SGS-Thomson must have DRAMs and 32-bit microprocessors. Later this year, the Company hopes to make a decision on how to incorporate DRAMs into the product portfolio (through strategic alliances or other means). As far as microprocessors are concerned, the Company hopes to have the resources through the acquisition of InMOS. To date, SGS-Thomson has signed a letter of intent to purchase InMOS. If the Company is successful in its acquisition, it would be the first step into the personal computer market.

© 1989 Dataquest Incorporated June ESIS Volume III 0003912 Siemens AG Wittelsbacherplatz 2, D-800 Munich Federal Republic of Germany Telephone: Oil 49 89 234-0 Fax: 234-42 42 Dun's Number: 31-606-7164 Date Founded: 1847

CORPORATE STRATEGIC DIRECTION Informationssysteme AG had a loss of DM 348 milhon (U.S.$216 milUon) worldwide. Siemens AG provides a comprehensive range of products from electronic components to office and In October 1990, the activities of Dr.-Ing Rudolf Hell telecommunication systems, and from production GmbH were transferred to Linotype AG. Siemens, equipment, power, and medical engineering to trans which was the parent company of HeU, holds a portation systems and automotive electronics. minority interest in the company, which has been Siemens has positioned itself as a global company renamed Linotype-HeU AG. The two companies with sales to its domestic German market accounting together will have an estimated annual revenue of for 45 percent and sales to the rest of world account approximately DM 500 miUion (U.S.$310.4 million). ing for 55 percent of total worldwide sales in fiscal This makes the company one of the largest electronic 1990. Currendy, Siemens' operations in the United prepress companies in the industry. States exceed 10 percent of total sales. In October 1990, Siemens acquired 49 percent Siemens AG is one of the world's major electrical interest in Maimesmann TaUy GmbH, a computer engineering and electronics companies with 1990 printer manufacturer. This places Europe's printer sales of DM 63.1 billion (U.S.$39.2 billion). (Percen industry in a very strong positioiL Maimesmann Tally tage changes refer only to DM amoimts; U.S.$ per was quick to maximize on the broadened range of centage changes wiU differ because of fluctuations in products by introducing a new printer that was Dataquest exchange rates.) According to Dataquest, designed-by-Siemens AG. in 1990 semiconductor sales totaled DM 2.0 billion (U.S.$1.1 billion). This ranks Siemens as Europe's third-largest semiconductor company. Its data and In November 1990, Siemens acquired a 50 percent information systems sales of DM 7.7 billion stake in Stromberg-Carlson Corporation, a U.S. tele (U.S.$4.8 biOion) rank the company as one of the phone exchange business from GEC Plessey world's largest information systems vendors. And Telecommunications Ltd. (GPT). Siemens merged its with pubhc and private telecommunication equipment Siemens Private Commimication Systems Inc. with sales of DM 13.8 billion (U.S.$8.6 billion), Siemens Stromberg-Carlson to create Siemens Stromberg- is one of the world's largest telecommunication Carlson and became one of the largest U.S. public vendors. network equipment suppliers.

In April 1990, Siemens acquired a majority interest In addition, several structural changes took place of common stock in Nixdorf Computer AG. On within the company. The former Peripherals and Ter October 1, 1990, the Data and Information Systems minals Group was dissolved as of April 1, 1990; its Group was integrated into Nixdorf to form Siemens fields of operation were assigned to units involved in Nixdorf Informationssysteme AG (SNI). The integra related product hnes. tion of Siemens and Nixdorf represents a major expansion of the company. Although the company plaimed to increase business volume by nearly Currendy, Siemens AG has 13 business groups, 2 DM 6 biUion (U.S.$3.7 billion), in April 1991, special divisions, and 1 legally independent unit. The Siemens AG aimounced that Siemens Nixdorf 13 business groups include: Industrial and Building

Systems, Drives and Standard Products, Automation, totaled DM 7.0 bUHon (U.S.$4.4 billion) in fiscal Automotive Systems, Power Generation (KWU), 1990, representing 7.0 percent of revenue. In fiscal Power Transmission and Distribution, Semiconduc 1990, approximately 43,000 employees worldwide tors, Medical Engineering, Public Communication were engaged in R&D activities. About 90 percent of Networks, Passive Components and Electron Tubes, the R&D work was carried out by the operating Private Communication Systems, Defense Electron groups, while the remaining 10 percent was done by ics, and Transportation Systems. The two special the Corporate Research and Development and the divisions are Audio and Video Systems and Elec Corporate Production and Logistics Division. tromechanical Components; the legally independent imit is Osram GmbH. More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Siemens' strategy is to further enhance its position in Direction" and present corporate highlights and reve Europe in aU important sectors of electrical engineer nue by region. Information is not available on reve ing and electronics while continuing to build a broad nue by distribution chaimel. Tables 3 through 7 at the business base in the United States. Siemens' goal in end of this backgrounder present comprehensive the new German states is to achieve the same market financial information. The financial information does position that it enjoys iu the western part of the not include Nixdorf Computer AG because its con- country. Over the next few years, Siemens plans to sohdation will not be completed until the 1990 to invest more than DM 1 billion in the new German 1991 fiscal year. estates and to employ locally some 25,000 to 30,000 people in research and development, production, dis tribution, installation, and service. Ehiring 1990, Sie mens employed 373,000 people worldwide, which is a 2 percent increase from 1989. BUSINESS SEGMENT STRATEGIC DIRECTION

Siemens' sales by business segment, excluding inter segment sales, were as follows for fiscal 1990: Power Data and Information Systems Generation, 5.8 percent; Power Transmission and Distribution, 5.0 percent; Industrial and Building Sys The activities of Data and Information Systems were tems, 7.6 percent; Drives and Standard Products, transferred to Siemens Nixdorf Informationssysteme 6.3 percent; Automation, 5.5 percent; Data and Infor AG in October 1990. ^th a spectrum ranging ftom mation Systems, 7.7 percent; Private Communication notebook PCs to advanced mainframes, from Systems, 4.8 percent; Defense Electronics;-1.1 per organizational-isolutions for offices and plants to net cent; Transportation Systems, 1.2 percent; Automo works for large companies with global operations, tive Systems, 1.8 percent; Medical Engineering, Siemens Nixdorf Iirformationssysteme AG is the 6.6 percent; Public Communication Networks, largest European computer manufacturer. 9.1 percent; Semiconductors, 2.0 percent; Passive Components and Electron Tubes, 1.7 percent; Elec The Data and Information Systems segment tromechanical Components, 0.8 percent; Audio and contributed significantly to Siemens' overall growth Video Systems, 0.1 percent; Osram, 2.6 percent; Hell, in 1990. New orders increased 15 percent to 1.0 percent DM 7.5 billion (U.S.$4.7 billion) and sales increased 28 percent to DM 7.7 billion (U.S.$4.8 billion) from Total revenue increased by 20.7 percent to 1989. This growth was significanfly higher than the DM 63 biUion (U.S.$39.2 bilUon) in fiscal 1990 from industry average and increases were registered in both DM 61 billion (U.S.$32.5 billion) in fiscal 1989. Net domestic and international markets. Siemens believes income increased 23.5 percent to DM 1.7 billion that a major share of this favorable business was attributable to BS2000-driven, general-purpose com (U.S.$1.1 billion) in fiscal 1990 from DM 1.5 bilUon puters. For the third straight year, the MX300 and (U.S.$931 miUion) in fiscal 1989. MX500 Sinix computer families led both German and European markets for multiuser computers using the Research and development expenditure totaled UNIX operating system. The company's market posi DM 7.0 billion (U.S.K3 billion) in fiscal 1990, tion for special systems, such as point-of-sale termi representing 6.9 percent of revenue. Capital spending nals, also continued to grow.

Mainframes crucial standards-making committees of the CCll'l'. It is strongly entrenched in Eiu-ope and has a solid The 7500 Series of general-purpose computers using reputation for weU-engineered and well-manufactured the BS2000 operating system offers a broad spectrum products. It also has developed an expertise in ISDN. ranging in performance from 1 to 100 mips, covering Siemens plans to install 200,000 lines in the former desktop units to large general-purpose computers. The BS2000, with its high degree of upward compatibiU- East Germany and to acquire a large share of this ty, is seen as a main foundation for development and market. has been merged with BASF's plug-compatible mar keting arm to fonn Coinparex. Siemens is attempting In 1990, ROLM Systems, which develops and to gain more market share in the IBM mainframe manufactures communications systems, was market. integrated into Siemens Private Commimication Sys tems Inc. (SPCS). ROLM Company, however, is a joint venture that is equally owned by IBM Corpora Midrange tion and Siemens. It distributes the communications Growth in the MX300 and MX500 Sinix computer systems in the United States manufactured by ROLM famihes led both Grerman and European markets for Systems. multiuser computers using UNIX operating systems. The MX300 and MX500 systems can coimect up to 24 and 64 terminals, respectively. During 1990, the PBX WX200 Sinix workstation was one of the new In October 1990, Siemens reorganized its PBX- products introduced. Siemens suppUed one of the related communications businesses in the United largest supphers of UNIX-based multiterminal sys States. This created a new company called Siemens tems in Europe. Private Communication Systems Inc. This new com pany includes ROLM Systems, Tel Plus Communi Personal Computers cations and Siemens' interest in ROLM Company, a 50-50 joint venture with IBM. ROLM is the third MS-DOS PC sales ahnost doubled during fiscal 1990. largest PBX supplier in the United States, with Growth was especially high in the high-performance 14.0 percent market share, while Siemens ranks sixth category. This was, in part, the result of developing a witii 3.9 percent SPCS will include a PBX develop highly regarded line of fiiUy MS-DOS-compatible PC ment division, a manufacturing plant, and the Gold models. The two main lines are the PC D-2, which is Seal Dealer marketing and government sales units. based on the Intel 80286 processor, and the PC D-3, Part of the new company will also include such which is based on the 80386 processor. support functions as financial controls, strategic plan ning, market research, and marketing communica tions.'During 1990, the company's business in Spain Industry Standards and the Netherlands developed particularly well. Siemens strongly supports European data processing standards and was a founding member of the X Open group of European Companies working on develop ISDN ment of a common appUcations environment This btisiness is expected to grow because of the computer-aided telephony access to ISDN. Smaller Peripherals and Terminals systems and worldwide networking are examples of services that offer additional benefits. In an effort to Although the peripherals and terminals accoimted for avoid problems, including interoperability, that have about one-fifth of the Peripherals and Terminals Group business in 1989, the activities were trans stood in the way of the acceptance of ISDN, an ferred to Data and Information Systems of Siemens agreement was made between AT&T, Northern Tele Nixdorf Informationssysteme during 1990. The stron com, Inc., and Siemens Stromberg-Carlson to imple gest growth was in personal computers, fax machines, ment key ISDN standards. The companies hope that office printers, and telephone terminals, especially the service may be extended to nuUions of users by digital feature phones. the end of 1992.

Telecommunication Digital Public Telephone Switching System In the telecommunication business, Siemens has a Siemens entered into alliances in eastern Germany global presence as a participant or leader in all of the with former state-owned businesses, including a

Leipzig plant that will manufacture public telephone Semiconductors switching systems (EWSD). The merger of Stromberg-Carlson with U.S.-based Siemens Commu Siemens reached a technological level equal to that of nication Systems Inc. provided additional market its major competitors with the Mega Project, its share in the United States. During fiscal 1990, 107 megabit DRAM development project Although ship telecommunication administrators worldwide ordered ments of 4Mb DRAMs doubled during 1990, revenue EWSD exchanges. A total of approximately 28 mil dropped because of falling prices. During fiscal 1990, lion lines were ordered or delivered, which is an the semiconductor business was marked by a dra increase of approximately 50 percent over fiscal matic fall in memory prices and fierce competition, 1989. In addition, the first contract for the installation precipitated by excess capacity on the world market of a digital telephone network was signed in the new and the declining exchange rates of the dollar and the German states. yen.

In fiscal 1990, the Semiconductor group's new Defense orders decreased 12 percent to DM 2.1 billion (U.S.$1.2 billion) and sales decreased 12 percent to In the defense sector, the acquisition of Plessey oper DM 2.0 biUion (U.S.$1.1 billion). Siemens attributes ations strengthened its competitive position. The this drop in revenue to the dramatic fall in semicon integration of two British companies, Siemens Ples ductor prices, fierce competition, and the declining sey Defence Systems Ltd. and Siemens Plessey Radar exchange rates of the dollar and the yen. Ltd., provided Siemens with local production facili ties in two of Europe's key regional markets—Great Britain and Germany. In addition, IBM and Siemens signed an agreement to manufacture 16Mb DRAM chips at IBM's facility in Corbeil-Essonnes, France. Production is to begin at Higher sales volumes were generated primarily by the the end of 1991, with output set for the second half of Patriot air defense missile system. Siemens is the 1992. general contractor in charge of adapting Patriot for German defense requirements. Current political developments are expected to cause substantial Further Information changes in the structures of NATO and the German Federal Armed Forces and will, therefore, affect For further information about the company's business previously planned development and procurement segments, please contact the appropriate Dataquest projects. industry service.

Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars)

1986 1987 1988 1989 1990 Five-Year Revenue 21,669.6 28,572.8 33,356.2 32,514.9 39,245.3 Percent Change 1.17 31.86 16.74 (2.52) 20.70

Capital Expenditure 3,155.8 2,951.7 2,927.0 4,187.4 4,388.8 Percent of Revenue 6.71 5.74 4.93 6.85 6.95

R&D Expenditure 2,488.9 3,450.6 3,640.4 3,656.9 4,335.4 Percent of Revenue 5.29 6.71 6.13 5.98 6.86

Number of Employees 359,000 359,000 353,000 365,000 373,000 Revenue ($K)/Employee 60.36 79.59 94.49 89.08 105.22

Net Income 679.3 708.3 781.5.1 838.8 1,036.0 Percent Change 30.71 4.28 10.32 7.34 23.51

Exchange Rate (U.S.$1=DM) 2.17 1.80 1.78 1.88 1.61

1990 Fiscal Year Ql Q2 Q3 Q4 Quarterly Revenue NA NA NA NA Quarterly Profit NA NA NA NA

NA = Not available Source: Siemens AG Aimual Reports Dataquest (November 1991) Table 2 Revenue by Geographic Region (Percent) Region 1986 1987 1988 1989 1990 Germany 45 _. -49. .. ,„ . 52 - 47 45 International 55 51 48 53 55

Source: Siemens AG Aimual Reports Dataquest (November 1991)

Ostram Ltd. (England) Osram S.A. (France) 1990 SALES OFFICE LOCATIONS Osram S.A. (Spain) Osram-GEC Ltd. (United Kingdom) North America—^70 Osram Societa Ruinite Osram Edison-Qerici S.p.A. Europe—88 (Italy) Asia^acific—^25 Rofin-Sinar Laser GmbH (Germany) Japan—2 Siemens AB, Stockholm (Sweden) ROW—60 Siemens A.E., Elektrotechnische Projekte und Erzeugnisse (Greece) Siemens AG Osterreich (Austria) Siemens-Albis AG (Switzerland) Siemens A/S (Denmark) Siemens A/S, Oslo (Norway) MANUFACTURING LOCATIONS Siemens Automotive S.A (France) Siemens BeteUigungen AG (Switzerland) Infonnation is not available. Siemens-Elema AB (Sweden) Siemens Finanzierungsgesellschaft furr Informationstechnik GmbH (Germany) Siemens Ltd., Dublin (Ireland) Siemens Ltd., London (United Kingdom) SUBSIDIARIES Siemens Matsushita Components GmbH & Co. (Germany) Siemens Miet- und Portfolio- GmbH &, Co. OHG, i^orih America (Germany) Nixdorf Computer Corporation Siemens Nederland N.V. (Netherlands) Siemens Automotive Ltd. (Canada) Siemens Osakeyhtio (Finland) Siemens Electric Ltd. (Canada) Siemens pic (England) Siemens Automotive L.P. (United States) Siemens Plessy Electronic Systems Ltd. (England) ROLM Systems (United States) Siemens S.A. (Belgium) Siemens Private Communication Systems Inc. Siemens S.A. (France) (United States) Siemens S.A., Lisbon (Portugal) Siemens Components Inc. (United States) Siemens S.A., Madrid (Spain) Siemens Energy & Automation Inc. (United States) Siemens_Sj).A. (Italy) Siemens Information Systems (United States) Siemens Telecomunicazioni S.p.A. C^taly) Siemens KWU Inc. (United States) Siemensstadt-Gnmdstucksverwaltung GmbH & Co. Siemens Medical Systems Inc. (United States) (Germany) Sietec Siemens-Systemtechnik imd Portfolio GmbH & Co. (Germany) Europe Simko Ticaret ve Sanayi (Turkey) Turk Siemens Kablo ve Elektrik Sanayii A.S. ATEA N.V. (Belgium) CHirkey) Dr.-Ing Rudolf Hell GmbH (Germany) Vacuumschmelze GmbH (Grermany) Duewag AktiengeseUschaft Heimaim GmbH (Germany) Interatom GmbH (Germany) Japan Nixdorf AG (Switzerland) Siemens K.K. (Japan) Nixdorf Computer AG (Germany) Nixdorf Computer France S.A. (France) Nixdorf Computer Ges.m.b.H. (Austria) ROW Nixdorf Computer Ltd. (England) Nixdorf Computer S.A (Spain) Equitel S.A. (Argentina) Nixdorf Computer A.G. (Switzerland) Osram Argentina S.A.C.I. (Argentina) Osram do Brasil-Companhia de Lampadas Electricas NRG Nuklearrohr-Gesellschaft GmbH (Germany) S.A. (Brazil) Osram GmbH (Germany)

Osram S.A. de C.V. (Mexico) PBX will supply customers with ISDN-LAN Siemens Components (Pte.) Ltd. (Singapore) connections. Siemens Components Sdn. Bhd. (Malaysia) IBM Corporation Siemens Ltd. (AustraUa) IBM and Siemens signed a contract to build a Siemens Ltd. (India) factory that wiU manufacture 16Mb DRAM Siemens Pakistan Engineering Co. Ltd. (Pakistan) microprocessors at an estimated cost of $7(X) mil Siemens Ltd. (South Africa) lion. The facility is planned to be located in Siemens S.A. (Columbia) CorbeU-Essonnes. The agreement leaves room for Siemens S.A. (Venezuela) additional partners providing the plant produces Siemens S.A. de C.V. (Mexico) more microprocessors than the two companies Siemens S.A., Sao Paulo (Brazil) need themselves. As part of the agreement Sie Siemens S.A.I.C.F.I.yM. (Argentina) mens will use the chips in specialized products, Siemens Western Finance N.V. (Netherlands Antilles) while IBM wiU use the chips in its own machines. Taicom Systems Ltd. (Taipei) Matsushita Electric Industrial Company Ltd. Matsushita and Siemens Nixdorf Informations- systeme AG signed an alliance to exchange per sonal computers in Europe. Siemens will sell Mat ALLIANCES, JOINT VENTURES, AND sushita notebook computers under its own name, LICENSING AGREEMENTS and Matsushita will seU Siemens machines under its Panasonic trade name in Europe. Under the agreement, the equipment wiU be jointly developed 1991 by both companies' R&D operations in their Appian Technology respective countries. Appian Technology signed an agreement to supply Motorola Incorporated Siemens with custom VGA graphics boards for a Motorola and Siemens agreed to joindy market range of personal computers. equipment for contracts imder a $30 billion Euro AT&T, Siemens Stromberg-Carlson, and Northern pean cellular network. Telecom Inc. Nippon Telephone and Telegraph (NTT) An agreement was developed among AT&T, Sie NTT selected Siemens to participate in the mens Stromberg-Carlson, and Northem Telecom development of the \^sual. Intelligent and Personal Inc. These companies will begin to implement program. Fiber optic cables and the asynchronous ISDN standards in order to extend the service to transfer mode principle will be the technological minions of users by 1992. .. . . —basis of-vaiieus services for speech, text, data, and pictures. China Great Wall Industry Siemens signed an agreement that allows two fac Storage Technology Corporation tories to build the Hicom 3(K) private branch Storage Technology and Siemens Nixdorf agreed exchange system. The agreement was signed with to merge their nonimpact printer operations in the China Great Wall Industry and permits each of the United States in a joint venture that became opera factories to produce up to 100,(XX) subscriber lines tional in January 1991. Siemens Nixdorf owns 51 per year within 4 years. percent, and Storage Technology owns 49 percent GPT Ltd. SynOptics Communications Inc. GPT Ltd. and Siemens AG merged their British Siemens signed a three-year OEM agreement with PABX distribution operations to create a joint ven SynOptics Communications (Santa Clara, Califor ture. GPT Sales and Service and Siemens Commu nia) in which Siemens wiU market LAN products nications Systems are being merged to form GPT such as concentrators, ethemet, and token-ring Communications Systems. Siemens will have a connections in Europe. 50 percent ownership. 1990 Gandalf Technologies Siemens and Gandalf Technologies have agreed to VEB Robotron jointly market Gandalf's communications server Siemens and VEB Robotron plan to enter into a and Siemen's PBX. Under the agreement, joint venture. The software and computer systems Gandalf's Starmaster server and Siemen's Hicom company will be based in Dresden.

BB-Data GeseUschaft wiU market and support Saber as an OEM product Siemens and BB-Data GeseUschaft fuer worldwide, integrated with its SIGRAPH-EL ' Infonnations-und Kommumkationssysteme are to product line. cooperate in marketing the BB-Data Domino CASE tool. The companies also will jointly market General Electric Aerospace, Thompson-CFS, tools for Computer Reverse Engineering (CARE). Thorn EMI Siemens will support BB-Data in the development Siemens, General Electric Aerospace, Thompson- of further Domino products. CFS, and Thorn EMI signed a memorandum of ' understanding establishing a consortium known as Digital Equipment Corporation, Hewlett-Packard Euro-Art. The consortium will develop an Company, IBM Corporation, Unisys Corporation advanced groimd-based weapons-locating radar for Siemens has established worldwide PBX and com the armed forces of France, Germany, and the puter teaming alliances with Digital Equipment, United Kingdom. Hewlett-Packard, IBM, and Unisys to provide voice/data solutions to end users. MAP Deutschland Siemens and MAP Deutschland entered into a SGS-Thompson cross-licensing pact covering Siedcon connector Siemens and SGS-Thompson agreed to cooperate and RV-100-4 transfer systems for the connectors. in the field of high-performance microcontrollers. The products are produced by the Electromechani The objective is to provide a comprehensive and cal Component Divisions of the respective compa integrated common solution for high-end 8-bit and nies with Siemens manufacturing the connectors 16-bit MCU applications. Siemens and SGS- and MAP producing the transfer system. Thompson also entered into a cooperative agree ment wherein both companies agreed to act as Rational second sources for each other's high-performance Siemens and Rational are to cooperate on the Ada microcontrollers in 8-bit and 16-bit applications. programming language for computer-aided software engineering (CASE). The move is Unitrode intended to help both companies expand in the Siemens and the Micro Networks Division of Uni CASE sector. trode entered into a licensing agreement. Under the agreement, Micro Networks wiU sell Siemens' Coming high-speed flash A/D converters. The licensing Siemens and Coming have agreed to joindy agreement initially covers the purchase and repack develop passive fiber-optic transmission compo- aging of Siemens' 6-bit and 8-bit, 75-MHz to —aents that will-help iMing optical communications 300-MHz sampling A/Ds. technology to the home.

Chinon Industries Inc. Siemens and Chinon Industries entered into an 1988 to 1989 agreement to cooperate in the development, production, and marketing of peripherals for PCs MIPS Corporation and of communications devices. The companies Siemens bought MIPS' design for the newest also plan to cooperate in the development of 32-bit RISC microprocessor. facsimile machines and image scanners. BASF (Comparex) VEB Numerik Karl Mark, VEB Niles, WMV BASF agreed to manage Siemens' IBM- International Handelgesellschaft compatible, non-Fujitsu-based mainframes. Siemens, VEB Numerik Karl Mark, VEB NUes, and WMV International Handelgesellschaft will Iskra form a joint venture to produce electrical and The companies are manufacturing telecom equip electronic machine tool equipment. ment (EWSD).

Analogy Inc. ROLM Systems Siemens and Analogy entered into an OEM agree Siemens acquired this telecom product marketing ment. Under the terms of the agreement, Siemens and servicing company. i ©1991 Dataquest Incorporated November—Reproduction Prohibited 0011569 Siemens AG

Advanced Integrated Circuit Design Aids (AIDA) AIDA is developing semiconductor technology. MERGERS AND ACQUISITIONS AMD The companies are developing a common chipsets for ISDN. AMD second sources Siemens' 80515 1991 and 82258 DM A controllers. Anlagenbau Teltow JESSI .. Siemens confirmed that it will buy Anlagenbau Siemens participates in JESSI to develop semicon Teltow, the BerUn-based electrical components ductor technology with Philips and Thomson. manufacturer.

Megaproject Cardion Electronics Inc. Siemens is developing DRAMs and SRAMs with Siemens acquired Cardion Electronics Inc. from Philips. Ferranti International of England. The company manufactures and markets commercial and defense Open Software Foundation (OSF) electronic navigation systems. The new name of Siemens joined this UNIX development standards the company is Cardion Inc. group. EG&G Inc. 'Toshiba and General Electric EG&G Inc. of Wellesley, Massachussetts, signed a The companies are participating in the develop letter of intent to acquire a majority interest in ment of standard cell libraries. Heimann, subsidiary of Siemens AG. Heimann GmbH is a producer of optoelectronic devices Acer based in Wiesbaden, Germany. The companies have an OEM agreement to resell the mdustrial PC 16-05. Ferranti Business Communications Ferranti Business Communication was acquired by Apollo Siemens. Siemens will relocate the firm to its new The companies have an OEM agreement covering site in Manchester. die bottom end of midrange computers. GPT Fujitsu Siemens Communications Systems and GPT Sales The companies have an OEM agreement to resell and Services, the largest UK telecommunications the MX500 processor and VP Series of vector • manufacturer, have agreed to merge their British processors. distribution companies for computerized switch boards. Siemens and GEC will each indirectiy own NEC 17 percent of the venture directly with the The companies have an OEM agreement to resell remainder coming through its 40 percent stake of die NEAX2400 PBX. GPT. The venture will be financially consolidated into GPT, which wUl own 83 percent Sequent The companies have an OEM agreement to resell Relcon UNIX equipment and products. Relcon, producer of electronic drive systems, has been acquired by ASI, a Siemens division that is Taylorix involved in drive and switchboard technology. \^a Siemens manufactures PCs for resale. Relcon products, Siemens aims to increase it pres ence in the electronic drive systems markets in the Toshiba United States and Mexico. Siemens is licensed to manufacture 1.2-micFon CMOS 1Mb DRAMs. Texas Instruments Inc. Texas Instruments Inc. signed a letter of intent to Zenith sell its Industrial Controls unit to Siemens Corp. The companies have an OEM agreement to resell Included in the sale are TI's products, facilities 80286-based laptops. equipment, and sales/support activities.

1990

Dr.-Ing Rudolf Hell GmbH KEY OFFICERS Linotype AG acquired Dr.-Ing, parent company being Siemens. Siemens will be the largest share Karlheinz Kaske, Dr.-Ing. holder, with 33 1/3 percent of the stock. President and CEO GPT Ltd. Karl-Hermann Baumann, Dr.rer.oec. GPT Ltd. and Siemens AG merged their ,.U.S. " Executive vice president. Corporate Finance operations. The new company is called Siemens Stromberg-Carlson. Siemens and GPT will each Heinrich von Pierer, Dr. jur. own 50 percent. Vice chairman Mannesmann Tally GmbH Hermann Franz Siemens acquired Mannesmann, a computer printer Executive vice president. Corporate Planning and manufacturer, and merged it into Siemens' Office Development Products Division. Mannesmann is now 51 percent owned by Mannesmann AG and 49 percent by Claus Kessler, Dr.-Ing Siemens AG. Executive vice president. Corporate Production and Logistics Nixdorf Computer Siemens AG acquired 78 percent of Nixdorf Com Hans-Gerd Neglein puter. The new company, a majority-owned sub Executive vice president, regional administrator sidiary of Siemens called Siemens-Nixdorf Infor- mationssyteme AG, combines the Siemens data Hans Baur, Dr.-Ing and information systems activities with those of Executive vice president Nixdorf. Klaus Barthelt, Dr.-Ing.E.h. Executive vice president 1989 Horst Langer, Dr.-Ing ROLM Company Executive vice president Siemens acquired ROLM from IBM. The Plessey Company In partnership with Britain's General Electric Com pany (GEC), Siemens acquired The Plessey Com PRINCIPAL INVESTORS pany, an electronics firm based in Dford, Essex, England. Information is not available.

1988 Allied Signal Inc. Siemens AG acquired Bendix Electronics Group FOUNDERS from AlUed Signal Inc. to strengthen its position in the automotive electronics market Information is not available.

Table 3 Balance Sheet Fiscal Year Ending September 30 (Millions of U.S. Dollars) Balance Sheet 1986 1987 1988 1989 1990 Cash* 0 0 0 0 00 Receivables " • 6,644.2 •8,141.1 -8,858.4 10,206.5 11,907.0 Marketable Securities NA NA NA 10,364.5 9,743.1 Inventory 1,119.4 1,009.4 2,200.6 3,663.6 4,542.9 Other Current Assets 10,013.8 12,805.6 13,465.2 963.0 2,304.8 Total Current Assets 17,777.4 21,956.1 24,524.2 25,197.7 28,497.8 Net Property, Plants 5,701.4 7,467.2 7,653.4 7,394.3 8,978.9 Other Assets 741.5 1,067.8 1,315.2 1,661.4 2,554.3 Total Assets 24,220.3 30,491.1 33,492.7 34.253.3 40,031.1 Total Current Liabilities 1,914.9 1,958.9 2,193.5 2,248.3 2,520.6 Long-Term Debt 11,088.0 14,334.1 16,021.7 16,388.5 19,773.7 Other Liabilities 3,955.3 5,139.6 5,370.9 5,747.7 6,831.7 Total Liabilities 16,958.2 21,432.6 23,586.1 24,384.4 29,126.0 Converted Preferred Stock 21.3 25.7 26.0 24.6 28.7 Common Stock 1,085.5 1,324.4 1,349.0 1,299.8 1,591.4 Other Equity* 2,690.0 3,348.0 3,445.4 3,471.6 4,590.7 Retained Earnings 3,465.3 4,360.4 5,086.2 5,072.8 4,694.2 Total Shareholders' Equity 7,262.0 9,058.5 9,906.6 9,868.9 10,905.1 Total Liabilities and Shareholders' Equity 24,220.3 30,491.1 33,492.7 34,253.3 40,031.1 Exchange Rate (U.S.$1=DM) 2.17 1.80 1.78 1.88 1.61

*Other capital is paid-in coital. Source: Siemens AG NA = Not available Annual Reports and Fonns 10-K Dataquest (November 1991)

Table 4 Consolidated Income Statement Fiscal Year Ending September 30 (Millions of U.S. Dollars, except Per Share Data) Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue 21,669.6 28,572.8 33,356.2 32,514.9 39,245.3 Domestic 10,184.3 13,896.1 17,278.1 15,132.4 17,609.9 International 11,485.3 14,676.7 16,111.8 17,382.4 21,635.4 Cost of Sales 25,508.3 20,478.9 23,552.8 13,409.6 16,618.0 R&D Expense 2,488.9 3,450.6 3,640.4 3,656.9 4,335.4 SG&A Expense 9,807.1 12,715.5 13,397.3 13,778.8 16,762.8 Capital Expense 3,155.8 2,951.7 2,927.0 4,187.4 4,388.8 Pretax Income 1,245.6 1,443.3 1,390.4 1,482.8 1,753.5 Pretax Margin (%) 5.75 5.05 4.17 4.56 4.47 Effective Tax Rate (%) 46.00 50.00 44.00 43.00 43.00 Net Income 679.3 708.3 718.5 838.8 1,036.0 Shares Outstanding, Millions 48.0 48.6 48.9 49.8 52.2 Per Share Data Earnings 14.01 13.94 15.11 15.74 18.45 Dividend 5.53 6.11 6.18 6.65 8.07 Book Value 143.59 177.56 193.48 190.74 199.94 Exchange Rate (U.S.$1=DM) 2.17 1.80 1.78 1.88 1.61 - Source: Siemens AG Annual Reports and Fonns 10-K Dataquest (November 1991)

Table 5 Balance Sheet Fiscal Year Ending September 30 (Millions of Deutsche Marks) Balance Sheet 1986 1987 1988 1989 1990 Cash* 0 0 0 0 0 Receivables 14,418.0 14,654.0 15,768.0 19,188.2 19,170.3 Marketable Securities 0 0 0 19,485.3 15,686.4 Inventory 2,429.0 1,817.0 3,917.0 6,887.6 7,314.1 Other Current Assets 21,730.0 23,050.0 23,968.0 1,810.5 3,710.7 Total Current Assets 38.577.0 23,050.0 43,653.0 47,371.6 45,881.5 Net Property, Plants 12,372.0 39,521.0 13,623.0 13,901.2 14,456.1 Other Assets 1,609.0 1,922.0 2,341.0 3,123.4 4,112.4 Total Assets 52,558.0 54,884.0 59,617.0 64,396.2 64,450.0 Total Current Liabilities 4,155.4 3,526.1 3,904.5 4,226.8 4,058.1 Long-Term Debt 24,060.9 25,801.3 28,518.6 30,810.3 31,835.7 Other Liabilities 8,583.0 9,251.3 9,560.2 10,805.6 10,999.0 Total Liabilities 36,799.4 38,578.7 41,983.3 45,842.7 46,892.8 Converted Preferred Stock 46.2 46.2 46.2 46.2 46.2 Common Stock 2,355.5 2,383.9 2,401.2 2,443.7 2,562.2 Other Equity* 5,837.3 6,026.4 6,132.9 6,526.7 7,391.1 Retained Earnings 7,519.6 7,848.8 9,053.4 9,536.9 7,557.7 Total Shareholders' Equity 15,758.6 16,305.3 17,633.7 18,553.5 17,557.2 Total Liabilities and Shareholders' Equity 52,558.0 54,884.0 59,617.0 64,396.2 64,450.0 Exchange Rate (U.S.$1=DM) 2.17 1.80 1.78 1.88 1.61

*OtheT capital is paid-in coital. Souice: Siemens AO Annual Reports and Forms 10-K Dataquest (Novembor 1991)

Table 6 Consolidated Income Statement Fiscal Year Ending September 30 (Millions of Deutsche Marks, except Per Share Data) Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue 47,023.0 51,431.0 59.374.0 61,128.0 63,185.0 Domestic 22,100.0 25,013.0 30,755.0 28,449.0 28,352.0 International 24,923.0 26,418.0 28,679.0 32,679.0 34,833.0 Cost of Sales 55,353.0 36,862.0 41,924.0 25,210.8 26,754.9 R&D Expense 5,401.0 6,211.0 6,480.0 6,875.0 6,980.0 SG&A Expense 21,281.3 22,887.9 23,847.2 25,904.2 26,988.1 Capital Expense 6,848.0 5,313.0 5,210.0 7,872.4 7,066.0 Pretax Income 2,703.0 2,598.0 2,475.0 2,787.6 2,823.1 Pretax Margin (%) 5.7 5.1 4.2 4.6 4.5 Effective Tax Rate (%) 46.00 50.00 44.00 43.00 0 Net Income 1,474.0 1,275.0 1,391.0 1,577.0 1,668.0 Shares Outstanding, Millions 48.0 48.6 48.9 49.8 52.2 Per Share Data Earnings 30.40 25.10 26.90 29.60 29.70 Dividend 12.00 11.00 11.00 12.50 13.00 Book Value 311.60 319.60 344.40 358.60 321.90 Exchange Rate (U.S.$1=DM) 2.17 1.8 1.78 1.88 1.61

Source: Siemens AG Annual Reports and Foims 10-K Dataquest (November 1991) Table 7 Key Financial Ratios Fiscal Year Ending September 30 Key Financial Ratios 1986 1987 1988 1989 1990 Liquidity Current (Times) 9.28 11.21 11.18 11.21 11.31 Total Assets/Equity (%) 333.52 336.60 338.09 347.08 367.09 Current Liabilities/Equity (%) 26.37 21.63 22.14 22.78 23.11 Total Liabilities/Equity (%) 233.52 236.60 238.09 247.78 26.09 Profitability (%) Return on Assets 0.06 0.04 0.04 0.05 0.04 Return on Equity 0.09 0.08 0.08 0.08 0.10 Profit Margin 3.13 2.48 2.34 2.58 2.64 Other Key Ratios R&D Spending % of Revenue 11.49 12.08 10.91 11.25 11.05 Capital Spending % of Revenue 14.56 10.33 8.77 12.88 11.18 Employees 359,000 359,000 353,000 365,000 373,000 Revenue (DM K)/Employee 130.98 143.26 168.20 167.47 169.40 Capital Spending % of Assets 28.27 17.42 15.56 22.98 17.65 Exchange Rate (U.S.$1=DM) 2.17 1.8 1.78 1.88

Source: Siemens AG Annual Reports and Forms 10-K Dataquest (November 1991)

14 ©1991 Dataquest Incorporated November—Reproduction r*rohibited 0011569 MciMst I Sony Corporation 7-35, Kitashinagawa 6-chome Shinagawa-ku Tokyo 141, Japan Telephone: (03) 448-2111 Fax: (03) 448-2244 Dun's Number: 04-065-3636 Date Founded: 1946

CORPORATE STRATEGIC DIRECTION spectrum of market needs. Other areas of targeted growth include recording media, semiconductors, Sony Corporation, founded in Tokyo in 1946, is one electronic components, computer systems, infor of the world's leading manufacturers of video and mation processing, and telecommunications. audio equipment, televisions, displays, semiconduc • Sony will intensify its activities in the entertain tors, computers, computer peripherals, factory auto ment field by strengtiiening its music and image- mation equipment, and engineering workstations. based software operations, and by creating synergy with its electronics business. Efforts will be cen tered on Sony Music Entertainment Inc. (known Sony's business philosophy is to provide innovative before January 1, 1991, as CBS Records Inc.) and and attractive products to its customers worldwide. Columbia Pictures Entertainment Inc. Sony is one of Japan's leaders in global marketing; it • Sony has committed to a companywide efficiency had ¥3.6 trillion (IJ.S.$25.6 billion) in revenue for the upgrade in aU areas of business, as well as to the fiscal year ended March 31, 1991. Because of its promotion of more efficient allocation of the com strong international customer base, the company is pany's capital, personnel, and management especially susceptible to fluctuations in international resources. trade markets. The Gulf War, which occurred during • Sony will seek to bring aU facets of its overseas fiscal 1991, had severe repercussions in the world operations, including procurement of components, economy and directly affected Sony's performance. R&D, production, and marketing, in closer contact The United States entered a recession in the second with local communities. half of the year, the European economy evidenced sluggish performance, and the Japanese economy Sony's ¥3.6 tiillion (U.S.$25.6 billion) total revenue faced higher interest rates. Even with this difficult for the year ended March 31, 1991, represents an environment, Sony attained the highest sales and increase of 27.11 percent over the year ended March profit figures in the company's history. Sony points to 31, 1990. The increase in sales was led by a strong growth in its electronics and entertainment 178.4 percent increase in filmed entertainment reve industries as the key factors in its growth. nue. Television sales increased 33.2 percent, video equipment sales grew 23.7 percent, and audio equip ment sales increased 23.5 percent. Growth of Sony's long-term strategy to improve product perfor 30.6 percent in the other products group can be mance and meet customer expectations includes the attributed to the strong growth of information-related following policies: equipment (Percentage changes refer to U.S. dollar • In consumer electronics, Sony will strive to amounts.) accelerate the development and marketing of attractive and original products. Expansion will Sony is an international company with 26.3 percent occur in such areas as high-definition television of its sales occurring in Japan, 29.2 percent in the (HDTV) products and information-related equip United States, 28.1 in Europe, and 16.4 percent in all ment for the home. other regions. Europe posted the highest growth rate, • In industrial electronics, Sony will seek to iucreasing sales 43.9 percent, while the United States strengthen its operations in broadcast- and grew 24.4 percent and other international maikets professional-use videocassette recorders and play grew 37.3 percent The Japanese market grew at a ers (VTRs) and displays while addressing a varied significantiy lower rate of 10.9 percent

Net income increased 13.7 percent to ¥116.9 billion More detailed information is available in Tables 1 and (U.S.$829.3 million) in fiscal year 1991 from 2, which appear after "Business Segment Strategic ¥102.8 billion (U.S.$654.8 million) for fiscal 1990. Direction" and present corporate higUights and reve Sony employed approximately 112,900 people in nue by region. Information on revenue by distribution 1990, an increase of 18.1 percent over the 1990 channel is not available. Tables 3 through 7 at the end year-end total of 95,600 employees. of this backgrounder present comprehensive financial information. R«&D expenditure increased 24.6 percent to ¥205.8 bilUon (U.S.$1.2 billion) for the year ended March 31, 1991, fi-om ¥165.2 biUion (U.S.$1.2 bil Uon) in the year ended March 31, 1990. R&D BUSINESS SEGMENT STRATEGIC represented 5.7 percent of revenue for the year ended DIRECTION March 31, 1991. Capital expenditure for the year ended March 31, 1991, increased 27.1 percent from the previous year's ¥323.8 billion (U.S.$2.3 bilhon) Lines of Business to ¥411.7 billion (U.S.$2.9 billion), representing 11.4 percent of total revenue. The increased expendi ture primarily was used for expanding production Video Equipment facilities for semiconductors; image-based devices such as color picture tubes; magnetic products; and The video equipment product group revenue totaled audio and video equipment. About 35 percent of the ¥908 biUion (U.S.$6.4 bilhon) for die year ended capital development expenses were appropriated for March 31, 1991, or 25.1 percent of sales. Products overseas facilities. Sony intends to maintain a high include VTRs, video cameras, camcorder systems, level of capital investment and expects next year's videotapes, optical videodisk players, and high- expenditure to exceed this year's figure. definition video systems.

Audio Equipment Sony's pohcy is to base its manufacturing operations in markets where its products are sold. By doing this, The audio equipment product group revenue totaled Sony brings its products closer to customers and ¥883 billion (U.S.$6.2 biUion) for the year ended avoids trade problems and exchange rate variations. March 31, 1991, or 24.4 percent of total sales. Accordingly, Sony maintains its principal manufactur Products include tape recorders, audiotapes, cassette ing facihties in Japan, the United States, and Europe. players, car stereos, amplifiers, tuners, turntables, speaker systems, CD players, digital audiotape (DAT) In January 1991, Sony Music Entertainment Inc. recorders, headphones, microphones, and compact discs. (SMEI) and a subsidiary of Time-Warner Inc. formed The Columbia House Company, a 50:50 partnership consisting of the former Columbia House Division of Music Entertainment SMEI. Columbia House is a direct marketer of music and home video products in the United States and Sony's music entertainment business reported revenue Canada. of ¥474 bilUon (U.S.$3.4 bUUon) for the year ended March 31, 1991, or 13.1 percent of total revenue. Performers on the Sony label include Mariah Carey, In November 1989, Sony purchased Columbia Pic New Kids on the Block, George Michael, BiUy Joel, tures Entertainment, adding image-based software to Michael Bolton, Gloria Estefan, the Vaughan its software business. This purchase emphasized Brothers, and Harry Connick, Jr. strengthening of the company's software operations primarily through the record and video business. TV Equipment On January 5, 1988, Sony purchased CBS Records Sony's television product group reported revenue of Inc. and now holds 100 percent of the shares. The ¥553.4 bUUon (U.S.$3.9 bilUon) for the year ended U.S.$2 billion (¥256.5 billion) acquisition was based March 31, 1991, or 15.3 percent of total revenue. Key on Sony's beUef in the important relationship between products include color TVs and monitors, projection the software and hardware sides of the consumer TVs, JumboTRON, direct broadcasting sateUite electronics business. reception systems, and security systems.

Filmed Entertainment Workstations Sony's filmed entertainment reported revenue of Sony Microsystems was formed in February 1988 to ¥257 billion (U.S.$1.8 billion), or 7.1 percent of sales market Sony's NEWS workstation, a 32-bit UNIX for the year ended March 31, 1991. Fiscal 1991 fihn workstation designed primarily for software develop releases included Total Recall, Look Who's Talking ment appUcations. Dataquest estimates that Sony had Too, Misery, Awakenings, Postcards from the Edge, 6.6 percent of the worldwide workstation market and Flatliners, share for calendar 1989. Dataquest estimates that Sony ranked fourth in the entry-level workstation market with U.S.$137.2 million m factory revenue for Other Products 1989. Dataquest also estunates that Sony ranked third in the Japanese workstation market, with a 9.8 per The groups producing other products reported reve cent market share and $133.7 million in factory nue of ¥543 billion (U.S.$3.8 billion) for the year revenue. ended March 31, 1991. Key products include the 3.5-inch microfloppy disk systems, microcomputers, workstations, CD-ROM systems, information In May 1990, Sony introduced its laptop NEWS processing systems, semiconductor devices, electronic workstation to the European market and later to the components, dictating machines, word processors, Japanese market Sony had two major design goals induction cooking ranges, telephones, telecommuni for its new workstation, as follows: cations systems, factory automation systems, batter • The same level of performance and fimctionahty as ies, accessories, and audio and video software. the NEWS desktop workstation • Compatibility with NEWS software and hardware products Company Positioning The laptop workstation is priced between $10,000 and $15,000 and is targeted toward the technical user Computer Storage with a requirement for a transportable, fuUy func Sony was one of the leading flexible disk drive tional techiucal workstation. (FDD) vendors in 1990. Dataquest estimates that Sony maintained its market leadership in the world In 1989, Sony introduced a RISC-based workstation wide 3.5-inch FDD market with a 25 percent market using MIPS R3000 processors. Sony expanded its share and $226.5 million ia factory revenue. We NEWS line to include lower-priced models, and high- estimate that Sony shipped 5 million 3.5-inch disk performance 32-bit CPU versions. Sony added drives in 1989. In the worldwide overall FDD desktop publishing software to the NEWS line of (3.5-inch and 5.25-inch) market, Sony dropped from workstations. third in 1989 to fourth in 1990, with a market share of 13.6 percent. Sony continues to emphasize the Personal Computers 3.5-inch market, beginning production of 3.5-inch drives in Malaysia in May 1990. In July 1991, Sony released a new PalmTop series of personal computers, featuring the abiUty to input characters witii a ligjit pen. The PTC-300, weighing According to Dataquest estimates, Sony ranked first in at 35Sg, offers significant improvements in porta in the optical disk drive market in 1990 Avith bility. Sony does not market its computers in the $125.6 million in factory revenue and a 36.2 percent United States and held less than 1 percent of the market share. Sony dominates the rewritable market worldwide PC market, according to Dataquest in optical disk drives with 49.0 percent of the market, estimates. 39,200 units shipped, and $49 miUion in factory revenue. Sony also moved up to second in the 12-inch write-once, read-many (WORM) drive mar Semiconductors ket with a 29.9 percent market share and Sony began marketing semiconductors in 1984 and $19.4 million in factory revenue. currentiy produces a range of devices, including static random-access memory (SRAM) chips, charge- Sony has entered the 3.5-inch rigid disk drive market coupled devices (CCDs), and bipolar ICs for con Dataquest expects Sony to offer a broad range of sumer audiovisual equipment In capital expansion, rigid drives with capacities between 40MB and Sony completed a new wing at Sony Nagasaki Cor 200MB and access times of less than 20ms. poration with a clean room for the manufacture of

SRAMs and other leading-edge semiconductor Sony ranks 19th in the total worldwide semiconductor devices and a design center for large-scale integration market, while in Japan, Sony ranked 9th for the third (LSI) technologies. In addition, Sony began opera year in a row, with a 4.0 percent market share. Japan tions at its first overseas semiconductor manufactur represented 77.7 percent of Sony's semiconductor ing facility, Sony Semiconductor (Thailand) Com revenue for 1990. pany Ltd., which will center on the assembly of bipolar ICs. Computer Software

In the area of research and development, Sony Sony Computer Science Laboratory Inc. was estab announced in October 1990 the successful develop lished by Sony Corporation to develop distributed ment of the world's fastest large-scale gallium operating systems, programming langiiages, system arsenide gate array. The device wiU be used in work architectures, and user interfaces. stations, image-processing equipment, and other equipment requiring high-speed data processing capabihties. Further Information

Dataquest estimates that Sony's 1990 worldwide For further information about the company's business semiconductor market share was 1.9 percent, with segments, please contact the appropriate Dataquest U.S.$1.1 billion in revenue. Dataquest estimates that industry services.

Table 1 Five-Year Corporate Highlights (Billions of U.S. Dollars)

1987 198S 1989 1990 1991 Five-Year Revenue 3.4 10.4 16.7 20.1 25.6 Percent Change -42.67 202.02 41.94 20.84 27.11

Capital Expenditure 0.6 1.0 1.7 2.3 2.9 Percent of Revenue 18.55 9.33 10.05 11.25 11.38

R&D Expenditure 0.8 0.9 1.1 1.2 1.5 Percent of Revenue 9.27 8.91 6.62 5.74 5.69

Number of Employees 47,583 71,000 78,900 95,600 112,900 Revenue (U.S.$K)/Employee 72.15 146.04 212.01 210.76 226.84

Net Income 0.1 0.3 0.6 0.7 0.8 Percent Change -55.98 218.98 112.61 27.23 15.10

Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21

1991 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue 5.41 6.23 7.84 6.34 Quarterly Profit 0.16 0.19 0.39 0.11

Source: Sony Corporation Anmial Reports Dataquest (January 1992)

Table 2 Revenue by Geographic Region (Percent)

Region 1987 1988 1989 1990 1991 United States 27 28 27 30 29 Japan 35 35 34 30 26 Europe 24 23 23 25 28 All Other Regions 14 14 16 15 17

Source: Sony Corporation Annual Reports Dataquest (January 1992)

Hagiwara Electronics (Japan) TVMdeo equipment 1990 SALES OFFICE LOCATIONS Mac Precision Products (Japan) (Includes sales subsidiaries only) Precision parts Miyagi \^deo-Tech (Japan) Asia/Pacific—19 Magnetic tapes Intemational—14 Motomiya Denshi (Japan) Trinitron gun, security systems, flat display tubes, TV parts Nakada Magnetics (Japan) Ferrites Sony Akebono Denshi (Japan) MANUFACTURING LOCATIONS Rrinted circuit boards Sony Audio (Japan) North America Audio, video, camera, and optical systems Sony Bonson (Japan) Digital Audio Disc (United States) Tape recorders, flat TVs, radios CDs Sony Chemicals (Japan) Sony Engineering and Manufacturing of America Magnetic tapes, chemical products (United States) Sony Computer Science Lab (Japan) TVs, CRTs, 32-bit workstations, 3.5-inch FDDs, R&D of computer systems/software CD-ROM drives, monitors, audio speakers, factory Sony Denshi (Japan) automation equipment TVs and parts Sony Magnetic Products Inc. (United States) Sony Electronics (Japan) Magnetic tapes, flexible disks Radiocassette tape recorders Sony Microelectronics Corporation (United States) Sony Ichinomiya (Japan) Semiconductors VCRs, color TVs Sony Music Entertainment (United States) Sony Inazawa (Japan) Phonograph records, tapes, CDs Color CRTs Sony Professional Products Company (United States) Sony Itakura (Japan) Professional AV equipment CD players, radiocassette recorders Sony USA (United States) Sony Kisarazu (Japan) Electronic equipment VCRs, CD players Sony Kohda (Japan) Video equipment Europe Sony Kokubu Semiconductor (Japan) DADC Austria (Austria) Bipolar ICs, CCDs CDs Sony Magnescale (Japan) Sony (United Kingdom) Electronic measuring instruments TVs, CRTs Sony Magnetic Products (Japan) Sony Espana (Spain) Magnetic tapes, ferrites, videotapes TVs, VCRs Sony Minokama (Japan) Sony France (France) Video equipment CD players, video cameras, VHS video decks Sony Mizunami (Japan) Sony-Wega Productions (United Kingdom) Color CRTs TVs Sony Nagasaki (Japan) Television Division Europe (France) Semiconductors Development, design of TVs Sony Oita (Japan) Semiconductors Sony Precision Engineering (Japan) AsialPacific ftecision parts for audio equipment for Sony's subsidiaries worldwide Aiwa Company (Japan) Sony Semiconductor (Japan) High-fidelity audio systems, headphone stereos Bipolar ICs

Sony Shiroishi Semiconductor (Japan) Sony of Canada Ltd. (Canada) Semiconductors Sony Pictures Entertainment (United States) Sony Soimd Tec (Japan) Sony Trans Com Systems Division (United States) Microphones, PA systems, furniture, hearing aids Sony USA Inc. (United States) Sony TV-Video (Japan) Color TVs Sony Tektronix (Japan) Europe Electronic measurements, displays, control DADC Austria GesmbH (Austria) instruments, computer graphics products Sony Belgium N.V. (Belgium) Sony Video Taiwan (Taiwan) Sony Broadcast & Communications Limited (United VCRs IQngdom) Sound Magnetics (Japan) Sony Communication Products B.V. (Netherlands) Magnetic heads Sony Deutschland GmbH (Germany) Sound System (Japan) Sony Espana S.A. (Spain) VCRs, CD players Sony Euro-Finance B.V. (Netherlands) Taron Corporation (Japan) Sony Europa GmbH (Germany) Audio and video products Sony France S.A. (France) Tohkai Electronics (Japan) Sony GesmbH (Austria) PC boards Sony Italia S.p.A. (Italy) Toyo Radio (Japan) Sony Nederland B.V. ^etiierlands) Audio products Sony Overseas S.A. (Switzerland) Video Magnetics (Japan) Sony Portugal Lda. (Portugal) Ferrites Sony Scandinavia A/S (Denmark) Sony (Schweiz) A.G. (Switzerland) Sony Service Centre (Europe) N.V. (Belgium) ROW Sony (U.K.) Limited (United Kingdom) Sony-Wega Productions GmbH (Germany) Magneticos de Mexico (Mexico) Magnetic tapes, floppy disks Sony da Amazonia (Brazil) Asia/Pacific VCRs Sony de Venezuela (Venezuela) Aiwa Co. Ltd. (Japan) Color TVs Akebono Electronics Inc. (Japan) Sony "V^deobras (Brazil) CBS/Sony Group Inc. (Japan) Video cameras, video equipment Hasso Electronics Corporation (Japan) "N^deotec de Mexico (Mexico) Korea Toyo Radio Co. Ltd. (South Korea) Video equipment Max Precision Products Corporation (Japan) Motomiya Denshi Corporation (Japan) Sony (Australia) Pty. Limited (Australia) Sony Asco Inc. (Japan) Sony Bonson Corporation (Japan) SUBSIDIARIES Sony Broadcast Products Corporation (Japan) Sony Chemicals Corporation (Japan) As of March 31, 1991, Sony had 625 consolidated Sony Corporation of Hong Kong Limited (Hong subsidiaries. The list below gives the company's Kong) principal subsidiaries and affiliated con^anies as of Sony Creative Products Inc. (Japan) April 30, 1991. Sony Denshi Corporation (Japan) Sony Electronics (Malaysia) Sdn. Bhd. (Malaysia) Sony Energytec Inc. (Japan) North America Sony Engineering Corporation (Japan) Sony Enterprise Co. Ltd. (Japan) Digital Audio Disc Corporation (United States) Sony Finance International Inc. (Japan) Materials Research Corporation (United States) Sony Ichinomiya Corporation (Japan) Sony Corporation of America (United States) Sony Inazawa Corporation (Japan) Sony Music Entertainment Inc. (United States) Sony International (Singapore) Pte. Ltd. (Singapore)

Sony Kisarazu Corporation (Japan) Apple Computer Inc. Sony Kohda Corporation (Japan) Sony wiU manufacture major portions of the laptop Sony Kokubu Semiconductor Corporation (Japan) Macintosh computer under development by Apple. Sony Logistics (Singapore) Pte. Ltd. (Singapore) Bell Microproducts Inc. Sony Logistics Corporation (Japan) BeU added Sony's read-write optical drives to its Sony Magnescale Inc. (Japan) current franchise list. Sony Magnetic Products Inc. (Japan) Sony Magnetic Products (Thailand) Digital Equipment Corporation Sony Magnetic Tape Sales Corporation (Japan) Digital and Sony entered an agreement through Sony Minokamo Corporation (Japan) which Digital will produce optical subsystems Sony Mizunami Corporation (Japan) based on Sony optical disk drives. Sony Nagasaki Corporation (Japan) Matsushita Electric Industrial Sony Oita Corporation (Japan) Matsushita Electric Industrial and seven other Sony PCL Inc. (Japan) companies (Kyushu Matsushita Electric, Sega Sony Plaza Co. Ltd. (Japan) Enterprises, Chinon Industries, Casio Computer, Sony Precision Engineering Center (Singapore) Pte. Ricoh, Canon, and Sanyo Electric) wiU make CD- Ltd. (Singapore) ROMs based on Sony specifications. Sony Procurement Service Corporation (Japan) Sony Pruco Life Insurance Co. Ltd. (Japan) Nihon Silicon Graphics K.K. (NSG) Sony Service Co. Ltd. (Japan) Sony and NSG signed a marketing agreement in Sony Shiroishi Semiconductor Inc. (Japan) wliich Sony will market a high-definition computer Sony Shoji Corporation (Japan) graphics system for NSG's Iris 4-D Power "N^ion Sony Singapore Pte. Ltd. (Singapore) graphics workstation. Sony Sound Tec Corporation (Japan) Ricoh Company Sony TV Video (Malaysia) Sdn. Bhd. (Malaysia) Ricoh will provide its Design Base Jr. three- Sony Trading Corporation (Japan) dimensional model-generation software package to Sony Tsukuba Corporation (Japan) Sony to be bundled with Sony's new NWB-236 Sony Video Taiwan Co. Ltd. (Taiwan) processor. Sony/Tektronix Corporation (Japan) Sound System Corporation (Japan) SGS-Thomson Microelectronics Taron Corporation (Japan) SGS-Thomson Microelectronics wiU second- Tohkai Electronics Corporation (Japan) source a chip set for high-speed serial digital video transmission developed by Sony. ROW Software Toolworks Magneticos de Mexico, S.A. de C.V. (Mexico) Sony and Software Toolworks signed a licensing Sony CSA, S.A. (Panama) agreement allowing Sony to use special versions of Sony Chile Ltda. (Chile) Software Toolworks' CD-ROM software with Sony Corporation of Panama S.A. (Panama) Sony's CD-ROM optical disk player. Sony da Amazonia Ltda. (Brazil) VideoLogic Inc. Sony de Venezuela S.A. (Venezuela) Sony signed an agreement with \^deoLogic allow Sony Saudi Arabian Company Ltd. (Saudi Arabia) ing Sony to sell multimedia products through com puter resellers and video dealers. Wave Front Technologies Wave Front wiU supply Sony with its TPV com ALLIANCES, JOINT VENTURES, AND puter graphics software, to be bimdled with Sony's LICENSING AGREEMENTS latest three-dimensional computer graphics board, the NWB-256. J991 1990 Advanced Micro Devices Inc. (AMD) Sony and AMD signed a broad patent and copy Exabyte Corporation right cross-licensing agreement covering wafer Exabyte renewed a supply agreement with Sony processes, design, and architectures for integrated under which Sony wiU supply Exabs^te with circuits. 5.2S-inch form factor tape drives.

Compression Labs Inc. Apple Computer Inc. Sony entered into a reseller agreement with Com Sony signed a contract with Apple to supply pression Labs under which Sony will resell Com 40MB rigid disk drives for the Macintosh. pression Labs video coder/decoders. The agree ment marks Sony's entry into the U.S. Hewlett-Packard Company (HP) videoconferencing market Sony agreed to supply 5.25-inch rewritable optical disk storage products to HP for the new HP Texas Instruments C17QA Optical Disk Library System. Texas Instruments agreed to produce semiconduc Pinnacle Micro tors in Europe for Sony on a consignment basis. Sony announced plans to supply $1 million NJK Ltd. (¥128.3 nuUion) worth of 5.25-inch rewritable NJK Ltd. signed as a distributor for Sony's NEWS optical disk storage products to Pinnacle Micro. workstations. Advanced Micro Devices (AMD) Sony and AMD entered a joint venture agreement Fujitsu for an SRAM memory product Sony and Fujitsu jointly developed a trial common rule to develop CD-ROM XA software for their personal computers. 1988 Oracle Corporation Daewoo Electronics Oracle' agreed to supply the Oracle relational data Sony and Daewoo agreed to jointiy develop 256K base management systems and applications SRAMs, 64K SRAMs, 8- and 16-bit MPUs, and development software products for the Sony other microchips. NEWS family of UNIX workstations. Engineering Mechanics Research (EMR) NoveU K.K. Sony and EMR agreed to a joint venture in CAE Novell K.K. was formed as a joint marketing software technology and sales. EMR is marketing venture to sell NetWare products in Japan. Novell Sony's engineering workstations (EWSs) that and six partners—Canon, Fujitsu, NEC, Softbank, employ its software in the United States while Sony supports sales agents of EMR's software in Sony, and Toshiba—Whelped fund the project Japan by supplying its EWS. Advanced Micro Devices (AMD) N.V. Philips Gloeilampenfabrieken AMD agreed to enter a joint manufacturing and Sony and Philips agreed to a joint development of educational pact with Sony to manufacture extended architecture CD-ROMs for audio use. SRAMs. Motorola Inc. Summus Computer Systems Sony Microsystems agreed to incorporate dual Summus agreed to sell, distribute, and service Motorola 68030 MPUs in high-end models of 4mm DAT drives from Sony. Summus agreed to be Sony's NEWS UNIX workstation family. an original equipment manufacturer (OEM) of Sony and to integrate hardware and software that Symbolics offers turnkey storage subsystems for the Apple Sony and SymboUcs completed a sales agreement Macintosh, Digital, and Sun Microsystems Inc. PC for Sony's workstations in the U.S. market Sony markets. Microsystems began supplying its workstations to Symbolics in May 1988 for sale in the United States under the SymboUcs brand name. The two 1989 companies agreed to jointiy develop a new model of workstation using Symbolics' Al chips. Parallex Graphics Inc. Sony Microsystems agreed to incorporate Texas Instruments Inc. (TI) Parallex's color graphics and video graphics con TI Japan and Sony jointly developed the trollers in Sony's workstations. CXD1144AP high-performance digital filter LSI for digital audio equipment Matsushita Philips Sony, Matsushita, and Philips agreed to develop, Advanced Micro Devices (AMD) manufacture, and maricet interactive compact disk Sony and AMD agreed to a sales tie-up for Sony's drives. workstations in South Korea.

MERGERS AND ACQUISITIONS KEY OFFICERS

1991 Akio Morita Chairman and representative director National Broadcasting Company Sony purchased NBC's 50 percent stake in RCA/ Norio Ohga Columbia Home \^deo, resulting in Sony's com President and chief executive officer plete ownership of the company. Masaaki Morita Deputy president 1989 Nobuo Kanoi Trans Com Systems Division Deputy president Sony purchased all assets and liabilities of Trans Ken Iwaki Com Systems, a division of Simdstrand Corpora Deputy president tion. Trans Com designed, manufactured, and installed in-flight AV entertainment systems in Tsunao Hashimoto commercial aircraft worldwide. Deputy president Materials Research Corporation (MRC) Sony acquired all of the outstanding shares of common stock of MRC and its affihates. MRC manufactured and suppUed sputtering and etching equipment, high-purity metals, and ceramics. PRINCIPAL INVESTORS

Columbia Pictures Entertainment Information is not available Sony acquired all of the outstanding shares of common stock of Columbia Pictures, which was primarily in the filmmaking business. Guber-Peters Entertainment Company (GPEC) Sony acquired GPEC, which was in the filmmak FOUNDERS ing business. Masaru Ilsuka AMo Morita 1988 CBS Records Inc. Sony purchased CBS Records for U.S.$2 billion (¥256.5 billion) and held 100 percent of the shares. (The acquisition was made using U.S. currency.)

Table 3 Balance Sheet Fiscal Year Ending March 31 (BilUons of U.S. Dollars)

Balance Sheet 1987* 1988 1989 1990 1991 Cash 1.0 1.6 2.3 3.2 3.1 Receivables 1.6 2.4 3.4 5.8 5.8 Marketable Securities 0.8 0.7 0.7 0.4 0.2 Inventory 1.9 2.4 3.8 4.8 5.2 Other Current Assets 0.5 0.7 1.0 1.2 1.5 Total Current Assets 5.8 7.8 11.2 15.4 15.8 Net Property, Plants 2.2 3.1 4.2 6.1 7.4 Other Assets 0.9 2.6 3.0 9.1 9.4 Total Assets 8.8 13.5 18.4 30.6 32.6 Total Current Liabilities 3.7 6.8 8.7 14.0 14.9 Long-Term Debt 0.9 1.4 1.7 4.5 4.9 Other Liabilities 0.5 0.6 0.8 2.0 2.3 Total Liabilities 5.0 8.8 11.2 20.5 22.1 Converted Preferred Stock 0 0 0 0 0 Common Stock 0.1 0.2 0.9 1.9 2.1 Other Equity 0.4 0.4 1.5 3.3 2.9 Retained Earnings 3.4 4.1 4.8 4.9 5.4 Total Shareholders' Equity 3.8 4.7 7.2 10.1 10.5 Total Liabilities and Shareholders' Equity 8.8 13.5 18.4 30.6 32.6 Exchange Rate (U.S.$1:^ 159.56 138.03 128.25 142.93 141.21

*Fbr die five-month period ending Maich 31, 1987. Effective Maich 31, 1987, the paient conq)8ny Source: Sony Coipoiatlon and ahnost all subsidiaries and affiliates changed their fiscal yeai-end firom Animal Reports October 31 to Maich 31. Accordingly, (he fiscal period ended Maich 31, 1987, inclnded Dataquest (Januaiy 1992) only 5 mondis of operations, wh«^ other fiscal yeais consisted of 12 months.

Table 4 Consolidated Income Statement Fiscal Year Ending March 31 (Billions of U.S. Dollars, except Per Share Data) Consolidated Income Statement 1987* 1988 1989 1990 1991 Revenue 3.4 10.4 16.7 20.1 25.6 Japanese Revenue 1.1 3.5 5.7 6.1 6.7 Non-Japanese Revenue 2.3 6.9 11.0 14.1 18.9 Cost of Sales 2.6 7.7 11.5 13.6 17.7 R&D Expense 0.8 0.9 1.1 1.2 1.5 SG&A Expense 0.8 2.4 4.4 5.0 6.3 Capital Expense 0.6 1.0 1.7 2.3 2.9 Pretax Income 0.1 0.5 1.3 1.6 1.9 Pretax Margin (%) 4.36 5.14 7.71 7.90 7.32 Effective Tax Rate (%) 58.00 56.00 56.00 54.00 51.00 Net Income 0.1 0.3 0.6 0.7 0.8 Shares Outstanding, Thousands 231,236 238,769 282,603 331,929 338,593 Per Share Data Earnings 0.34 1.04 1.88 2.15 2.02 Dividend 0.12 0.32 0.28 0.32 0.32 Book Value 16.50 19.71 25.57 30.50 30.88 Exchange Rate (U.S.$1^ 159.56 138.03 128.25 142.93 141.21

*FoT the five-month period ending March 31, 1987. Effective Match 31, 1987, the parent Source: Sony Coiporation conq>aDy and almost all subsidiaries and affiliates changed their fiscal year-end from Annual Reports October 31 to March 31. Accordingly, the fiscal period ended March 31, 1987, included Dataquest (Jamiaiy 1992) only 5 months of operations, whereas other fiscal years consisted of 12 numths.

Table 5 Balance Sheet Fiscal Year Ending March 31 (Billions of Yen)

Balance Sheet 1987* 1988 1989 1990 1991 Cash 152.9 218.0 297.9 451.7 442.9 Receivables 256.6 325.7 433.4 832.9 815.1 Marketable Securities 132.2 99.4 91.1 54.8 33.5 Inventory 302.9 334.7 483.7 693.0 731.7 Other Current Assets 77.6 99.1 127.7 169.2 211.2 Total Current Assets 922.2 1,076.9 1,433.8 2,201.6 2,234.4 Net Property, Plants 343.1 426.3 544.7 868.1 1,046.8 Other Assets 145.9 363.7 386.2 1,300.4 1,321.2 Total Assets 1,411.2 1,866.9 2,364.7 4,370.1 4,602.4 Total Current Liabilities 587.0 945.0 1,119.0 1,995.9 2,104.6 Long-Term Debt 143.4 196.0 220.8 646.0 694.5 Other Liabilities 72.1 76.3 98.2 281.3 327.0 Total Liabilities 802.5 1,217.3 1,438.0 2,923.2 3,126.1 Converted Preferred Stock 0 0 0 0 0 Common Stock 12.0 23.7 114.6 278.0 296.4 Other Equity 56.5 60.9 195.6 473.4 413.5 Retained E^unings 540.2 565.0 616.5 695.5 766.4 Total Shareholders' Equity 608.7 649.6 926.7 1,446.9 1,476.3 Total Liabilities and Shareholders' Equity 1,411.2 1,866.9 2,364.7 4,370.1 4,602.4 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21

Sonice: Sony Cotpoiation Aimual Reports Dataqoest (Jauuaiy 1992)

Table 6 Consolidated Income Statement Fiscal Year Ending March 31 (Billions of Yen, except Per Share Data) Consolidated Income Statement 1986 1987 1988 1989 1990 Revenue 547.8 1,431.2 2,145.3 2,879.9 3,616.5 Japanese Revenue 177.5 479.4 731.3 869.5 952.5 Non-Japanese Revenue 370.3 951.8 1,414.0 2,010.4 2,664.0 Cost of Sales 407.8 1,064.6 1,475.4 1,938.0 2,505.6 R&D Expense 131.2 127.5 142.1 165.2 205.8 SG&A Expense 131.0 336.3 565.6 712.0 887.8 Capital Expense 101.6 133.5 215.6 324.0 411.7 Pretax Income 23.6 73.5 165.5 227.4 264.6 Pretax Margin (%) 4.36 5.14 7.71 7.90 7.32 Effective Tax Rate (%) 58.00 56.00 56.00 54.00 51.00 Net Income 13.3 36.7 72.5 102.8 116.9 Shares Outstanding, Thousands 231,236 238,769 282,603 331,929 338,593 Per Share Data Earnings 54.2 143.8 219.7 279.0 285.9 Dividend 18.5 44.6 40.5 45.5 45.5 Book Value 0 0 0 0 0 Exchange Rate (U.S.$1^ 159.56 138.03 128.25 142.93 141.21

*For the five-month period ending March 31, 1987. Effective March 31, 1987, the parent Source: Sony Corporation coiiq)any and almost all subsidiaries and afiSUates changed their fiscal year-end from Aniiual Reports October 31 to March 31. Accordingly, the fiscal period ended March 31, 1987, included Dataquest (January 1992) only S months of operations, whereas other fiscal years consisted of 12 months.

Table 7 Key Financial Ratios Fiscal Year Ending March 31 Key Financial Ratios 1987 1988 1989 1990 1991 Liquidity Current (Hmes) 1.57 1.14 1.28 1.10 1.06 Total Assets/Equity (%) 231.85 287.39 255.17 302.03 311.75 Current Liabilities/Equity (%) 96.44 145.47 120.75 137.94 142.56 Total Liabilities/Equity (%) 131.84 187.39 155.17 202.03 211.75 Profitability (%) Return on Assets 0.94 2.24 3.43 3.05 2.23 Return on Equity 2.19 5.83 9.20 8.66 6.96 Profit Margin 2.43 2.56 3.38 3.57 2.84 Other Key Ratios R&D Spending % of Revenue 23.95 8.91 6.62 5.74 4.57 Capital Spending % of Revenue 18.55 9.33 10.05 11.25 8.96 Employees 47,583 71,000 78,900 95,600 112,900 Revenue (¥M)/Employee 11.51 20.16 27.19 30.12 32.03 Capital Spendine % of Assets 7.20 7.15 9.12 7.41 7.04 Exchange Rate (U.S.$1=*) 159.56 138.03 128.25 142.93 141.21

Source: Sony Corporation Aniuial Reports Dataquest (Jamiary 1992)

BACKGROUND AND OVERVIEW

AEG-Telefunken AEG-Telefunken was founded in 1893 and quickly grew to become West Germany's second-largest electrical group. Early in 1970, the Company started to face financial difficulties after it lost a nuclear power contract, and in September 1978, Siemens took over AEG-Telefunken's nuclear power activities by buying out AEG-Telefunken's stake in Kraftenwerk-Union. AEG-Telefunken's semiconductor division, based in Heilbronn, West Germany, suffered tremendously during this period. Although the division had many good designs—for example, it developed the first European microprocessor, the CP3-F—it was increasingly starved of funds from its ailing parent company. As a result, many new development programs had to be postponed or scrapped. In addition, the division was required to behave more like a captive supplier, building semiconductor devices that its parent wanted for its own end-equipment production. Many of these devices were relatively unsuccessful on the open semiconductor market.

In 1979, faced with near bankruptcy, AEG-Telefunken was rescued by a group of West German banks after the West German government refused to supply it with direct aid. The prime purpose of this rescue plan was to provide the Company with protection from its creditors while it carried out a major reorganization of its activities. It was against this background, coupled with the global semiconductor recession of the early 1980s, that the semiconductor division sought to reestablish itself. This was achieved by forming an alliance with United Technologies Corporation (UTC) of Hartford, Connecticut, and its Texas-based subsidiary, Mostek Corporation.

Telefunken Electronic GmbH

Telefunken Electronic GmbH (TEG) was formed by an agreement in which UTC and AEG-Telefunken each hold 49 percent of the Company, while the remaining 2 percent is held by the SUdeutsche Industrie-Beteiligung GmbH, a subsidiary of the Dresdner Bank AG, AEG-Telefunken's primary creditor. Under the terms of this agreement, TEG was to continue the business activities of the former electronic components division of AEG-Telefunken and, at the same time, assume full ownership of the division's headquarters facility in Heilbronn, West Germany, and its production plants. These include the seven production plants spread throughout West Germany; one in Vocklabruck, Austria (Telefunken Electronic GesbH); and one in Manila, Philippines (Telefunken Semiconductors Philippines Inc.). Dataquest believes that UTC paid $40 million for its 49 percent share in TEG.

In February 1983, TEG acquired 43.6 percent of Eurosil Electronics GmbH, a Munich-based producer of complementary MOS (CMOS) integrated circuits. In August 1986, UTC sold its stake in Eurosil to TEG, which now has total management responsibility for the joint venture. Eurosil and TEG are trading processing information, but neither company receives technological input from Mostek any longer. (See ESIS Volume II, Section 4, Eurosil company profile, for further details.) In 1983, its first full year of operation under new ownership, TEG returned to modest profitability. Dataquest believes that this achievement was aided by the general worldwide semiconductor recovery.- Apart from its Eurosil investment, Dataquest estimates that TEG invested approximately $20 million in capital investment in 1985, and a further $14 million in research and development (R&D) expenditure. In April 1988, AEG AG announced that it was repurchasing the 49 percent stake in TEG that it had sold to UTC in 1982 for an undisclosed sum. Tables 1 and 2, respectively, give Dataquest's estimates of TEG's European and worldwide semiconductor revenue for 1983 through 1987.

Table 1 Telefunken Electronic GmbH Estimated £ur(^}ean Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1983 1994 1995 1986 1987

Total Semiconductor $109 $133 $133 $164 $209

Total Integrated Circuit $ 35 $ 46 $ 46 $ 49 $ 78 Bipolar Digital 0 0 0 • 0 15 MOS 7 11 11 • 11 14 Linear 28 35 35 38 49

Total Discrete $ 47 $ 54 $ 53 $ 66 $ 65 Transistor 17 19 18 20 16 Diode 19 21 21 31 27 Thyristor 10 12 12 11 17 Other 1 2 2 4 5

Total Optoelectronic $ 27 $ 33 $ 34 $ 49 $ 66

Source: Dataquest November 1988

Table 2 Telefunken Electronic GmbH Estimated Worldwide Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1993 1984 1985 1986 1987

Total Semiconductor $134 $161 $172 $219 $258

Total Integrated Circuit $ 51 $ 63 $ 68 $ 79 $ 95 Bipolar Digital 0 0 0 0 0 MOS 8 13 13 18 25 Linear 43 50 55 61 70

Total Discrete $ 53 $ 60 $ 63 $ 82 $ 97 Transistor 20 22 23 30 33 Diode 22 24 26 37 43 . Thyristor 10 12 12 11 14 Other 1 2 2 4 7

Total Optoelectronic $ 30 $ 38 $ 41 $ 58 $ 66

Source: Dataquest November 1988

Products and Markets Served Telefunken's electronics product range covers most of the semiconductor product categories, but its strongest areas are bipolar (linear) ICs, diodes, and transistor devices. Dataquest estimates that discrete semiconductors accounted for approximately 32 percent of TEG's worldwide revenue in 1987. Furthermore, Telefunken is well positioned with its new BICMOS process to exploit its strength in consumer ICs in the automotive segment and emerging high-growth markets for cellular telephones.

Table 3 lists the main processes and potential applications in which Telefunken has key strength.

Dataquest estimates that television and consumer IC products represent approximately 70 percent of Telefunken's IC sales, with the major areas being front-end tuner ICs for televisions and FM radio. They supply all noncaptive factories in Europe as well as some Far-Eastern manufacturers in Europe. In Japan, Dataquest estimates that Telefunken has sales of approximately US$15 million.

Table 3 Key Technology and Applications

Process Application

BICMOS in R&D Remote controlled car keys with low-density EEPROM

CMOS H-Well 2.5u Entertainment ICs (TV and FM tuners) PMOS 4u

Bipolar ft 30 MHZ, 3-5A, 40V Automotive Bipolar ft 100 MHZ, 5V

ECL with Dialectics 3 GHZ Cellular Radio, TV, FM, and IF

Source: Dataguest November 1988

OUTLOOK Dataquest believes that under TEG's new ownership, the Company is attempting to deemphasize its prior dependence on the television, hi-fi, and consumer end-user markets in favor of the higher-growth automotive and telecommunications areas. Furthermore, we believe that the Company will concentrate on special niche product areas, using predominantly bipolar technologies where there is less competition, rather than attempting to participate in the high-volume, standard product memory, and microprocessor areas. With Eurosil concentrating more on ASICs, primarily in CMOS technology, product duplication between the companies has been minimized. With its good connections to a number of West German banks and the recent increased activity by the West German government toward support of emerging high-technology industries, TEG's medium-term future seems assured.

BACKGROUND AND OVERVIEW Texas Instruments, Inc. (TI), was formed in 1951 by Erik Jonsson, Cecil Green, and Patrick Haggerty as the manufacturing division for the sophisticated electronic equipment required to further the reflection seismology activities run by Geophysical Services Inc., an organization that was started in 1930. Semiconductor interest took shape in 1952, when TI bought one of the first licenses to manufacture the transistor, which was invented at Bell Laboratories in 1949. By 1953, these devices were in production, and a year later, prices had been reduced to a level where the first transistor radio became cost-feasible. In 1958, Jack Kilby, a TI engineer, invented the first integrated circuit dC). Since that time, the Company has been considered a leader in IC technology and production. European operations began in 1957 in Bedford, the United Kingdom. This was the Company's first site outside the United States, and it has since been supplemented by the addition of many more sites worldwide. The Company is now a broad product base supplier to all sectors of industry. At the present time, there are some 21 manufacturing sites in the Americas, 7 in Europe, and 9 in the Far East. However, not all of these sites manufacture semiconductors, since TI has diversified its business base into end equipment, both professional and consumer.

There are three wafer fabrication sites and six semiconductor assembly sites in Europe; these manufacture a broad range of products from discrete power transistors to advanced complex integrated circuits. Dataquest estimates that, in 1987, TI's European semiconductor revenue was $492 million as shown in Table 1, which gives Dataquest's estimate of TI's European semiconductor revenue. TI has an impressive record of industry firsts, ranging from the invention of the first IC to the development of the first microprocessor, the first microcomputer, and the first hand-held electronic calculator. In addition, TI has been a pioneer in speech synthesis. The Company's strength in semiconductors has permitted it to gain important market shares in computers, calculators, learning aids, terminals, peripherals, and programmable controllers. Table 2 shows TI's sales by business area, and Table 3 shows sales by geographic area.

Table 1 Texas Instruments, Inc. Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars) 1982 1983 19?4 1985 1986 1987

Total Semiconductor $319 $330 $522 $468 $488 $492

Total Integrated Circuit $260 $283 $475 $434 $448 $449 Bipolar Digital 111 132 204 182 183 161 MOS 89 93 176 142 157 193 Linear 60 58 95 110 108 95

Total Discrete $ 36 $ 27 $ 29 $ 23 $ 27 $ 28 Transistor 31 25 27 21 27 28 Diode 3 0 0 0 0 0 Thyristor 1 1 1 1 0 0 Other 1 1 1 1 0 0

Total Optoelectronic $ 23 $ 20 $ 18 $ 11 $ 13 $ 15

Source: Dataquest February 1989

Table 2 Texas Instruments, Inc. Net Sales by Business Area—Year Ending December 31 (Millions of U.S. Dollars) 1985 1986 1987

Components Trade $1,941 $1,997 $2,391 Intersegment 100 fefi 52 Total Components Sales $2,041 $2,065 $2,448

Defense Electronics Trade $1,458 $1,698 $1,967 Intersegment Zl 19 12

Total Defense Sales $1,480 $1,717 $1,979

(Continued)

Table 2 (Continued) Texas Instruments, Inc. Net Sales by Business Area—Year Ending December 31 pillions of U.S. Dollars) 1985 1986 1987

Digital Products Trade $ 958 $ 877 $ 852 Intersegment 42 54 as Total Digital Sales $1,000 $ 931 $ 891

Metallurgical Materials Trade $ 145 $ 126 $ 131 Intersegment 42 54 27

Total Metallurgical Sales $ 187 $ 180 $ 158

Services Trade t 407 S- 2^9 $ 240 Adjustments (191) (178) (121)

Total Sales $4,924 $4 ,974 $5,595

Source: Texas Instruments 1987 Annual Report

Table 3 Texas Instruments, Inc. Net Sales by Geographic Area—Year Ending December 31 (Millions of U.S. Dollars) 1985 1986 1987

United States $3,729 $3,693 $4^,05 3 Europe 817 815 967 East Asia 953 1,196 1-,548 Other Areas 325 216 201 Adjustments (900) (946) (1,,17 4

$4,924 $4,974 $5,595

Source: Texas Instruments 1987 Annual Report

PRODUCTS AND MARKETS SERVED TI is one of the world's broadest-range semiconductor manufacturers and offers products ranging from discrete transistors to gate arrays and advanced microprocessors. The Company is the market leader in bipolar logic integrated circuits and is also strong in linear and memory products. It is a major supplier of 256K dynamic RAMs (DRAMs). The Company is also building toward volume production of 1Mb DRAMs and added to its U.S. capacity during 1988. The Company serves all market segments, the major users being industrial, computer, and consumer goods manufacturers. Recent product developments have permitted even more involvement with the industrial and telecommunications markets, although TI has sustained its presence in the government and military end-user segments. TI is also investing in artificial intelligence (AI) and industrial automation as emerging areas of opportimity. During 1987, the Company acquired the control systems and industrial systems business of Rexnord Automation. In 1985, while many semiconductor manufacturers were pulling out of DRAM production, TI was stepping up DRAM production, and began sampling 1Mb DRAMs. However, by 1986, DRAMs were declining in relative importance, while application-specific integrated circuits (ASICs), application processors, military semiconductors, and VLSI logic emerged as the primary thrust areas. AI is a rapidly growing activity and is now TI's second biggest R&D item after VLSI. In 1986, TI introduced the TMS320C25, the first second-generation DSP chip. TI is considered the world leader in the single-chip DSP market. The same year, TI opened a $350,000 surface-mount technology center at Bedford, TI's U.K. headquarters. In February 1986, TI joined with Signetics Corporation and Philips to develop and manufacture a 1-micron advanced CMOS logic (ACL) chip family. In June 1986, the Company introduced a 2-micron CMOS family of standard cells called System Cell. In August 1986, TI introduced the TMS34010, a 32-bit CMOS graphics systems processor (GSP), which is a general-purpose processor with special capabilities for supporting high-performance computer graphics applications. In 1988, TI announced a family of 1-micron CMOS gate arrays, its TGCIOO series, which is available in gate densities of 3,200 to 8,896. TI is also releasing a military version called the TGCIOOM for operations from -55 to 125 degrees Celsius. TI has recently consolidated its worldwide memory operations within its Japanese organization.

OUTLOOK Our research leads us to conclude that TI differs from its major Far Eastern competitors in two major ways. The first point of contrast is that TI is driven by its components business rather than by its systems business. Second is that it has been more selective about the type of business it targets. The Company's thrust is to be both a leading semiconductor supplier and a leading supplier to the military market. For many of its Far Eastern competitors, semiconductor components are a much less prominent piece of their overall business. By contrast, TI's semiconductor operations are based not on its internal requirements, which it nonetheless supports, but on its fundamental objective of becoming the leading components supplier to the U.S. market, as well as a major global market participant. So, although TI is not vertically integrated in the same fashion or to the same degree as many of its competitors, it represents a good example of vertical integration U.S.-style, and its semiconductor business represents a firm foundation on which to build or support other business activities.

TI is committed to making investments of strategic importance from a corporate view, thus enhancing its ability to maximize the synergy generated by the many constituents of its business. TI's choice of investment contends that, contrary to popular belief, we are now in the information age. We are, in fact, data rich but information poor. Dataquest believes that TI exhibits the strengths necessary to compete with other vertically integrated competitors worldwide, and that, in response to the changing nature of global competition, the Company has planned well and invested wisely for the shape of things to come.

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Toshiba Corporation 1-1 Shibaura 1-chome Minato-ku, Tokyo 105, Japan Telephone: (03) 457-4511 Fax: (03) 456-1631 Dun's Number: 06-499-3082 Date Founded: 1875

CORPORATE STRATEGIC DIRECTION of business and by making strategic alliances. For gFowdi, Toshiba plans to increase total sales about 60 percent by 1993. This wiU be done by offering Toshiba Corporation is one of the largest electronics value-added products that imify the collective exper companies worldwide. Its main business activity is tise of Toshiba's numerous divisions and group com the development, manufacturing, and marketing of panies. In addition, the contribution of overseas sales electrical and electronics equipment and electronic is scheduled to rise from 35 to 39 percent of total components. The business is divided into the follow sales. In order to meet this goal, Toshiba will need to ing segments: Information/Communication Systems build on its commitment to developing markets and Electronic Devices, which accounts for 50 per worldwide. Global represents how Toshiba will build cent of net sales; Heavy Electrical Apparatus, which on its global presence. Toshiba plans to raise overseas accounts for 19 percent of net sales; and Consumer sales as a percentage of total sales by increasing Products, which accoimts for 31 percent of net sales. overseas production and strengthening marketing operations in local markets. Toshiba is one of two leaders of the Toshiba-IHI Group; the other is Ishikawajima-Harima Heavy R&D is structured by Toshiba to incorporate both Industries (IHI). These parents have close capital and long- and short-term planning by developing projects business connections. Their subsidiaries are engaged of varying time frames. Corporate level undertakes in electrical and electronics products, construction, projects with a five- to ten-year time frame, division trading and finance, and shipbuilding. level operates under diree-year time fr'ames, division engineering level goes by one-year time frames, and division manufacturing strives for continuous day-to Total revenue for 1991 amounted to $33.3 billion,* an day improvement Therefore, Toshiba can take both increase of 12 percent over 1990 revenue of long- and short-term perspectives. $29.7 biUioa Domestic sales decreased slightly from 60.73 percent in 1990 to 54.99 percent in 1991. Inter national sales also dropped slightly from 31.62 per R&D expenditure increased 13 percent from cent to 30.98 percent Fierce competition in the key $1.86 billion in 1990 to $2.1 billion in 1991 and semiconductor and computer markets led to a represented 6.37 percent of sales in 1991. This expen decrease in net income of 7.15 percent during 1991. diture was concentrated primarily on 16Mb and 64Mb Net income totaled $856.2 million, compared with DRAMs, large color liquid crystal displays (LCDs), $922.1 in 1990. new high temperature superconducting materials for future electronic devices, and various equipment for train systems. A large share of activities was also Toshiba has developed a "Sixth Medium-Term focused on information and communications systems, Plan." This plan wiU cover the period from 1991 such as broadband ISDN (BISDN) switching equip through 1993. The focus of this plan is group, growth, ment. Toshiba plans to raise R&D expenditure and global. Group represents Toshiba's goal to 7 percent during the 1992 fiscal year. strengthen its group of companies. This will be done by building on the synergies that exist among its lines Capital expenditure for the same period totaled *AU dollar amounts are in U.S. dollais. $3.1 billion, a 35 percent increase over 1990,

which totaled $2,3 billioa The rise in capital spend second, with a 9.2 percent market share and ing during fiscal 1990 and 1991 was primarily the $838 miUion in revenue, in the MOS logic semicon result of development and production of 4Mb and ductor segment and third in the MOS digital semicon 16Mb DRAMs. Over $1.4 bilhon was invested in the ductor segment with $2.9 bilhon in revenue. In the semiconductor group during the fiscal year; and analog semiconductor industry Toshiba ranked third, several new factories are either currently under con capturing a 5.8 percent market share, according to struction or already completed. During fiscal 1992, Dataquest capital expenditure is expected to be approximately $3.5 bUlion. In the DRAM market, Toshiba is committed to increasing 4Mb DRAM production and has More detailed information is available in Tables 1 and responded to demand by developing and producing a 2, which appear after "Business Segment Strategic wide range of products. In October 1991, Toshiba Direction" and present corporate highlights and reve announced a new series of 4Mb DRAMs with a nue by region. Information on revenue by distribution channel is not available. Tables 3 through 7 at the end 512Kx9 structure. The device has the standard data of this backgrounder present comprehensive financial capacity of 512Kx8, plus an additional 512Kxl information. capacity for a parity bit Dataquest believes that this is one of what will be many announcements for this type of product

According to Dataquest in 1990 Toshiba remained BUSINESS SEGMENT STRATEGIC the largest suppUer of 1Mb DRAMs to worldwide DIRECTION markets for the second consecutive year. It was sec ond in the 4Mb product area, having held the top spot Information/Communication Systems and during 1989. However, during 1990 Toshiba adjusted Electronic Devices to a 4Mb DRAM market shift, from a 350-mil-wide- device, the 4Mb part with which it started, to the now Fiscal 1991 sales in this segment were $16.7 billion industry-standard 300-mil part During 1991 and and accounted for 50 percent of company sales. 1992, file company will emphasize the 4Mb DRAM density and de-emphasize the 256K DRAMs and A companjrwide program developed by Toshiba to 1Mb DRAMs. Toshiba should remain a leader in the strengthen its capabUities in information and commu DRAM market for the foreseeable future and a major nications systems contributed to the sale of notebook player in the 4Mb video RAM (VRAM) segment as and laptop computers, which were up 40 percent that market emerges. Toshiba ranked first in tiie MOS during 1991. Although semiconductor memory sales memory semiconductor arena with $1.6 billion in rev were flat, sales of ASICs grew 6 percent in that enue and a 12.4 percent market share. product segment Toshiba also introduced a second generation 4Mb DRAM that features a smaller chip size and faster access time. Dataquest ranked Toshiba third in the worldwide optoelectronic semiconductor industry, with an 11.6 percent share of the 1990 market Semiconductors According to Dataquest, Toshiba remained the second-largest semiconductor suppUer in 1990, with During fiscal 1991, Toshiba invested approximately 8.3 percent of the worldwide market share and reve $226 million in its LCD business. Preparations for nue of $4.8 billion. Toshiba also was the third-largest expansion into this market included the construction semiconductor supplier in Japan. Toshiba's diversified of LCD manufacturing facilities for the joint venture product portfoUo emphasizes balance among analog, with IBM Japan, Display Technologies Inc. discrete, bipolar, MOS logic, memory devices, and ASICs. Personal Computers Toshiba was also the largest worldwide suppUer of Toshiba is developing sophisticated, high- discrete devices in 1988, 1989, and 1990. In 1990, performance PC systems to position the company at Toshiba captured an 11.0 percent market share total the forefront of current and emerging high-growth ing $904 minion in revenue. Toshiba has stated its fields. In 1990, according to Dataquest Toshiba to remain No. 1 in disaetes. Toshiba ranked ranked tenth worldwide and captured 3.6 percent of

the worldwide PC market Dataquest believes that account for 85 percent of the market, and there is Toshiba is now the dominant player in the world very little differentiation among their technologies. market for laptops, with a 1990 market share of For 1990, according to Dataquest, Toshiba ranked 29.4 percent in the worldwide laptop/DC market and fifth in the key telephone systems area in the United a 21.6 percent market share in the worldwide laptop/ States with a 5.7 percent market share. AC market

Printers Workstations Toshiba manufactures dot matrix, laser, and thermal Toshiba markets a line of UNIX engineering transfer printers, with the overwhelming majority of workstations incorporating original hardware business in the first two product areas. According to and Japanese-version software. This line has done Dataquest, for 1990 Toshiba had less than a one well in -the Japanese market percent share of die North America printer market

Telecommunications Equipment Copiers Under a development contract with NTT, Toshiba is developing an asynchronous transfer mode (ATM) Toshiba sells and manufactures plain paper copiers switching system for BISDN, the next-generation (PPCs) on a global scale. According to Dataquest, telecommunications network. Also, in a joint effort Toshiba is one of the top 10 PPC manufacturers in the with Kokusai Denshin Denwa (KDD), Japan's inter United States, placing 51.9 thousand PPCs during national telephone service corporation, Toshiba has 1990. developed the firstsatellit e communications system in Japan for installation in conmiercial airliners to enable air-to-ground telephone communication. Computer Storage Demand from the growing mobile portable and cordless telephone markets is being met, and an Toshiba is one of the leading optical drive suppliers. ultralight, ultracompact portable telephone that con According to Dataquest for 1990 Toshiba ranked forms to U.S. standards has been developed. Accord fourth in the 12-inch worldwide write-once/reading to Dataquest, in 1990 Toshiba ranked ninth in the many (WORM) market with a 10.0 percent market United States in total PBX systems with a 2.5 percent share. In the CD-ROM market it also ranked fourth market share. with a 9.2 percent market share. Toshiba ranked fifth in the total optical disk drive market with a maricet share of 3.5 percent worldwide. Toshiba is a major supplier of facsimile products worldwide. Much of its success stems finom the effec tive diversification of the product line to best suit the Heavy Electrical Apparatus trends in market demand. Toshiba meets the high-end demand with products that will transmit a standard In fiscal 1991, Toshiba's Heavy Electrical Apparatus document in just 13 seconds. The products feature segment accounted for 19 percent of its net sales, one-touch dialing and automatic Optical Mark Recog totaling $6.4 billion compared with $618.6 million in nition (OMR) dialing. Toshiba also has models diat offer an ad^tional electronic memoiy, which adds 1990, reflecting a 14 percent increase over 1990. such valuable functions as broadcasting, mailbox, and Domestic sales grew due to completion of large-scale relay transmission. In addition, Toshiba offers com nuclear power plants and high demand for electrical pact, entiy-level machines with one-touch dialing. In equipment stimiilated by brisk capital investment 1990, according to Dataquest, Toshiba ranked sixth However, exports were down because of decreased worldwide with a 5.6 percent market share. plant dehveries.

Toshiba is one of the top 10 suppliers of key tele Toshiba will continue to emphasize the development phone systems to the U.S. market These systems are of its energy business, focusing on tiiree systems. In ciistomer-premises telephone switching systems that the nuclear power generation sector, Toshiba is con allow telephones to interface to the public network tinuing to develop advanced, simplified systems that without dialing access codes. Competition is stiff in incorporate improvements in safety, reliability, and this market segment because the top 10 suppliers operability. Th: second system is thermal power

plants. Toshiba is developing and refining a system The consumer products business has been restruc that includes a combined cycle that will achieve new tured to reflect the continuing development of the levels of turbine efficiency. The third system is fuel infonnation society and the personal and household cells. According to Toshiba, the fuel cells show great use of ioformation and communications devices. The promise as a superior next-generation source of clean Consumer Products Group has been separated into energy. two business units, the \^deo & Electronics Media Group and the Airconditioners & Appliances Group. The Video & Electronics Media Group aims to posi Consumer Products tion Toshiba as a major presence in multimedia.

Fiscal 1991 sales of products in this segment rose 9 percent to $10.2 billion, accounting for 31 percent Further Information of Toshiba's net sales. The high added value of products in the domestic market and smooth expan sion of overseas manufacturing operations both con For further infonnation about the company's business tributed to the gain. Domestic demand centered on air segments, please contact the appropriate Dataquest conditioners, large-screen TVs incorporating broad industry service. cast satellite tuners, lighting products, and materials.

Table 1 Five-Year Corporate Highlights (Millions of U.S. Dollars)

1987 1988 1989 1990 1991 Five-Year Revenue 20,734.7 25,881.3 29,636.6 29,748.8 33,251.2 Percent Change 36.01 24.82 14.51 0.38 11.77

Capital Expenditure 1,337,1 1,359.7 2,086.5 2.263.3 3,122.3 Percent of Revenue 6.45 5.25 7.04 7.61 9.39

R&D Expenditure 1,260.7 1,575.0 1,796.5 1,860.4 2,117.4 Percent of Revenue 6.08 6.09 6.06 6.25 6.37

Number of Employees 121,000 122,000 125,000 142,000 162,000 Revenue ($K)/Employee 171.36 212.14 237.09 209.50 205.25

Net Income 214.4 439.8 9,310.0 922.1 856.2 Percent Change (20.15) 105.13 2,016.87 (90.10) (7.15)

Exchange Rate (U.S.$1^ 159.56 138.03 128.25 142.93 141.21

1991 Fiscal Year Qi Q2 Q3 Q4 Quarterly Revenue NA NA NA NA Quarterly Profit NA NA NA NA

NA= Not avajlatde Sowce: Toshiba CorpoTation Anmial Reports Dataquest (Jaimaiy 1992)

Table 2 Revenue by Geographic Region (Percent) Region 1987 1988 1989 1990 1991 Japan 69.14 69.03 67.93 60.73 54.99 Overseas 30.86 30.97 32.07 31.62 30.98

Source: Toshiba Catponttion Animal Reports Dataquest (Jannary 1992)

Buzen Toshiba Electronics Co. Ltd. (Japan) Semiconductors 1991 SALES OFHCE LOCATIONS Hankook Tungsten (South Korea) Tungsten, molybdenum wires and parts Harison Denki (Japan) Europe—4 Asia/Pacific—11 Electric lamps Himeji Toshiba Electronics (Japan) Japan—67 ROW—11 ICs, lead frames for semiconductors Hokuto Electronics (Japan) CRTs Iwate Toshiba Electronics Co. Ltd. (Japan) Semiconductors Kaga Toshiba Electronics (Japan) MANUFACTURING LOCATIONS Semiconductors Kitashiba Electric Co. Ltd. (Japan) North America Transformers, electric motors Kitsuki Toshiba Electronics (Japan) Intemational Fuel Cells Semiconductors A joint venture with United Technologies to Korea Electronics (South Korea) produce fuel cells Semiconductors, TVs Microelectronics Center Kumdong Lighting (South Korea) Semiconductors Fluorescent lamps Toshiba America Inc. Leechun Electric Mfg. (South Korea) TVs, microwave ovens, VCRs, toners, telephones, Generators, motors, transformers, pumps medical equipment Marcon Electronics Co. Ltd. (Japan) Toshiba Intemational Capacitors, hybrid ICs Motors, circuit boards, control equipment Nishishiba Electric Co. Ltd. (Japan) Toshiba Westinghouse Electronics Electric marine equipment A joint venture to produce color CRTs Nougata Toshiba Electronics (Japan) Semiconductors Europe Olivetti Corporation of Japan (Japan) Data communications equipment, computers, word Compagnie Europeen Pour La Fabrication processing systems, Qrpewriters D'Enceintes A Micro-Ondes (France) Onkyo Corporation (Japan) A joint venture with Thomson of France to Audio equipment and parts produce microwave ovens Shibauia Engineering Works Co. Ltd. (Japan) Toshiba Consumer Products GmbH (Germany) Motors, electric tools VCRs, TVs Sold Computer (Japan) Toshiba Consumer Products Ltd. (United Kingdom) Microcomputer and peripherals TVs, VCRs, microwave ovens Tatung Co. (Taiwan) Toshiba Consumer Products S.A. (France) TVs, reMgerators, transformers Lamps for copiers Thai Toshiba Electric Industries Co. Ltd. (Thailand) Toshiba Semiconductor GmbH (Germany) A joint venture with Siam Cement of Thailand to Semiconductors produce TVs, reMgerators, electric fans, electric Toshiba Systemes S.A. (France) rice cookers, motors A joint venture with ROHM Poulanc to produce Thai Toshiba Fluorescent Lamp Co. Ltd. (Thailand) plain paper copiers Glass tubes for fluorescent lanq>s Thai Toshiba Lighting Co. Ltd. (Thailand) AsicUPacific Fluorescent lamps Tohoku Semiconductor (Japan) Amori Taic (Japan) Semiconductors Radio cassette recorders, record players, Toki Electric Industrial (Japan) component stereos Electric lamps, lighting equipment

Tokyo Electric Co. Ltd. (Japan) Business machines, lighting equipment, home appliances SUBSIDIARIES Tokyo Electronic Industry Co. Ltd. (Japan) Industrial video equipment, control equipment Tokyo Optical (Japan) North America Optical uistruments GE Toshiba Lighting Corporation (United States) Toshiba Battery (Japan) Ottawa Design Center (Canada) Dry batteries, battery applied products Toshiba America Consumer Products Inc. (United Toshiba Ceramics (Japan) States) Ceramics Toshiba America Electronic Components Inc. (United Toshiba Chemical Corporation (Japan) States) Plastic products, insulating materials Toshiba America, Inc. (United States) Toshiba Cold Chain (Japan) Toshiba America Information Systems Inc. (United Freezers, vending machines States) Toshiba Components Co. Ltd. (Japan) Toshiba America Medical Systems Inc. (United Semiconductors States) Toshiba Electric Equipment Co. Ltd. (Japan) Toshiba Display Devices Inc. (United States) Lighting fixtures Toshiba Hawaii Inc. (United States) Toshiba Electronics Malaysia Sdn. Bhd. (Malaysia) Toshiba International Corporation (United States) IC memories Toshiba of Canada Ltd. (Canada) Toshiba Electronic Systems Co. Ltd. (Japan) A joint venture with General Electric to produce Europe and market electronic equipment Toshiba Engineering & Construction Co. Ltd. (Japan) Compagnie European Pour La Fabrication Electric facilities D'Enceintes A Micro-Ondes (France) Toshiba Glass Co. Ltd. (Japan) Toshiba AG (Switzerland) Glass products Toshiba Consumer Products GmbH (Germany) Toshiba Heating Appliances (Japan) Toshiba Consumer Products Ltd. (United Kingdom) Oil heating equipment Toshiba Consumer Products S.A. (France) Toshiba Deutschland GmbH (Germany) Toshiba Kiki (Japan) Toshiba Electronics Espana S.A. (Spain) Lighting equipment, etc. Toshiba Electronics Europe GmbH (Germany) Toshiba Machine (Japan) Toshiba Electronics Italiana S.R.L. (Italy) Machinery, machine tools Toshiba Electronics Ltd. (United Kingdom) Toshiba Medical Systems Co. Ltd. (Japan) Toshiba Electronics Scandinavia AB (Sweden) Medical electronic equipment Toshiba Europa GmbH (Germany) Toshiba Seiki (Japan) Toshiba Information Systems (Belgium) Automatic precision apparatus Toshiba Information Systems Ltd. (United Kingdom) Toshiba Singapore Pte. Ltd. (Singapore) Toshiba Information Systems S.A. (Spain) Color TVs, TV parts, audio equipment Toshiba Information Systems S.p.A. (Italy) Toshiba Steel Tube Co. Ltd. (Japan) Toshiba Informationssyteme GmbH (Germany) Steel tubes, electric conduit tubes Toshiba International (Europe) Ltd. (United Toshiba 'I\mgaloy (Japan) Kingdom) Special alloy tools Toshiba International Finance B.V. (Netherlands) Toshiba International Finance Ltd. (United Kingdom) Toshiba Ltd. (United Kingdom) ROW Toshiba Medical Systems Europe B.V. (Netherlands) Toshiba Semiconductor GmbH (Germany) Industria Mexicana Toshiba S.A. (Mexico) Toshiba Systemes S.A. (France) Semiconductors Semp Toshiba Amazonas S.A. (Brazil) TVs, audio equipment Asia/Pacific Toshiba Electromex S.A. de C.V. (Mexico) Iwate Toshiba Electronics Co. Ltd. (Japan) Color TV parts for Toshiba America Kitashiba Electric Co. Ltd. (Japan)

Kyodo Building Corporation (Japan) Toshiba de Brasil S.A. (Brazil) Man On Toshiba Ltd. (Hong Kong) Toshiba de Panama S.A. (Panama) Maroon Electronics Co. Ltd. (Japan) Toshiba Electromex S.A. de C.V. (Mexico) Minato Building Co. Ltd. (Japan) Toshiba Medical de Brasil Ltda. (Brazil) Nikko Jitsdugyo Co. Ltd. (Japan) Nishishiba Electric Co. Ltd. (Japan) Onkyo Corporation (Japan) Shibaura Engineering Works Co. Ltd. (Japan) TDH, Inc. (Japan) ALLIANCES, JOINT VENTURES, AND Thai Toshiba Electric Industries Co. Ltd. (Thailand) LICENSING AGREEMENTS Tokyo Electric Co. Ltd. (Japan) Toshiba Automation Co. Ltd. (Japan) Toshiba Battery Co. Ltd. (Japan) 1991 Toshiba Builders Appliance Co. Ltd. (Japan) Motorola Inc. Toshiba Building Corporation (Japan) Motorola Inc.'s semiconductor products sector Toshiba Ceramics Co. Ltd. (Japan) signed a joint-development agreement with Toshiba Chemical Corporation (Japan) Toshiba to design a MUSE (Miiltiple Sub-nyquist Toshiba Components Co. Ltd. (Japan) Encoding) decoder chip set for HDTV systems Toshiba Consumer Products Co. Ltd. (Thailand) used in JapaiL The chips are expected to be com Toshiba Credit Corporation (Japan) pleted by the middle of 1992. Toshiba Display Devices Co. Ltd. (Thailand) Toshiba Electric Appliances Co. Ltd. (Japan) Sun Microsystems Inc. Toshiba Electric Equipment Corp. (Japan) Sun Microsystems Inc. and Toshiba will jointly Toshiba Electronic Systems Co. Ltd. (Japan) develop the technology required to commercialize Toshiba Electronics Asia, Ltd. (Hong Kong) multimedia workstations, which will be compatible Toshiba Electronics Malaysia Sdn. Bhd. (Malaysia) with the BISDN telecommunications service. Toshiba Electronics Taiwan Corporation (Taiwan) Synergy Semiconductor Toshiba Elevator & Escalator Service Co. Ltd. Toshiba has acquired approximately a 10 percent (Japan) minority stake in Synergy Semiconductor. This Toshiba Engineering & Construction Co. Ltd. (Japan) strategic alliance will provide for a joint- Toshiba Engineering Co. Ltd. (Japan) development effort to build libraries of higih-speed Toshiba Glass Co. Ltd. (Japan) ECL and E-BiCMOS ASIC designs. Under the Toshiba Heating Appliances Co. Ltd. (Japan) agreement, Toshiba will buUd 6-inch submicron Toshiba Higashinihon Consumer Electronics Co. Ltd. production lines in Japan for the to-be-designed (Japan) ECL and E-BiCMOS ASICs. Toshiba Information Equipment Co. Ltd. (Japan) Toshiba International Corporation Pty. Ltd. Echelon Corporation (Australia) Echelon has licensed to Toshiba and Motorola the Toshiba Li^tec Corporation (Japan) Neuron chip fEimily, its local operating network Toshiba Medical Systems Co. Ltd. (Japan) (LON) product lines. The chip family comprises of Toshiba Physical Distribution Co. Ltd. (Japan) two members: the 3210 and 3150. Toshiba Pty. Ltd. (Australia) Toshiba Sdes and Services Sdn. Bhd. (Malaysia) TEC Electronics Toshiba Silicone Co. Ltd. (Japan) Toshiba has licensed TEC Electronics, a subsidiary Toshiba Singapore Pte. Ltd. (Singapore) of its Tokyo Electric Corp. affiliate, to market its Toshiba Steel Tube Co. Ltd. (Japan) Dynabook notebook personal computers, along Toshiba Thailand Co. Ltd. (Thailand) with the point-of-sale terminals that Toshiba manufactures. ROW Bull Micral of America Toshiba entered into the PC logic chip set business Industria Mexicana Toshiba S.A. (Mexico) with a chip set for 486-based Micro Chaimel sys Semp Toshiba Amazonas S.A. (Brazil) tems licensed from Bull Micral of America, an T and S Servicos Industrias S/C Ltda. (Brazil) affiliate of Groupe Bull.

Texas Instruments Inc. generation of intelligent power-controller chips Texas Instruments Inc. and Toshiba signed a being developed by Echelon Systems. Under the 10-year patent cross-licensing agreement Toshiba terms of the agreement, Toshiba's Semiconductor wiU pay Texas Instruments royalties for using the Group will manufacture and market the Echelon- patented chip technology. designed ICs. The agreement also permits Toshiba to design, manufacture, and market enhanced ver sions of the chips. 1990

IBM Japan Ltd. 1989 Toshiba and IBM Japan are jointly constructing a plant that will have a production capability of EDA Systems Inc. 50,000 LCD panels a year. EDA signed a purchase agreement with Toshiba for its Powerframe product, a design management Motorola Inc. framework that integrates third-party CAD/CAE Toshiba and Motorola reportedly plan to sign an tools and speeds the overall electronic design agreement to exchange gate array technology to process. allow the companies to act as mumal second sources. In the United States, Motorola will pro IBM Corporation duce gate arrays designed and developed by Toshi The two companies agreed to the joint develop ba, which Motorola intends to market for use in ment of a color fiat panel display for computers workstations. In Japan, Tohoku Semiconductor that is larger and clearer than any demonstrated Inc., a joint venture of the two companies, will previously. produce gate arrays based on Motorola technology Digital Equipment Corporation for supply to local companies. Toshiba and Moto The companies have a technology exchange agree rola also plan to expand their technological cooi>er- ment that will ensure the integration of Toshiba's ation to include discrete semiconductors. laptop personal computers into Digital's network Businessland ing environment Businessland Japan will be formed by Business- Weitek Corporation land, Canon, Fujitsu, software distributor Softbank, Under a joint development agreement, Weitek wUl Sony, and Toshiba to provide systems integration manufacture some of its semiconductors in Toshi services for international firms. Businessland will ba's plant; Toshiba wiU gain access to some of have a 54 percent stake in the joint venture, Soft Weitek's floating-point product technology. bank will have 26 percent, and the other firmswil l have 5 percent each. McDonnell Douglas McDonnell Douglas has agreed to port its PRO-IV Spectrum Cellular Corp. appUcation development language to minicom Toshiba will market Dallas-based Spectrum Cellu puters manufactured by Toshiba. lar's new cellular/landline modem with its laptop computers as the T24D/X, and Spectrum will also Cummins Engine Co. develop five separate versions of its new The companies have undertaken a joint venture to SmartCable product for sale by Toshiba. market silicon nitride ceramic components in North America. General Electric (GE) GE and Toshiba have entered into a joint market Sun Microsystems Inc. ing agreement covering the sale of GE's The companies signed a worldwide licensing CompuScene PT2000 in Japan. The visual simula agreement to bundle the SPARC MPU architec tion system and other Compu-Scene products will ture, the SunOS operating system, and the Open be distributed by Toshiba Electronics Systems, a Look Graphics interface into a series of small- GE/Toshiba joint venture company. footprint, low-cost computers. Echelon Systems Corp. Siemens Motorola and Toshiba have become the first semi The companies extended their long-standing alli conductor makers to license the rights to a new ance in ASICs.

1988 Zoran MERGERS AND ACQUISITIONS The companies agreed to a technology and manufacturing alliance. 1991 Motorola Inc. Under a joint venture, the companies formed UNIX System Laboratories Tohoku Semiconductor. Tohoku is using Toshiba's AT&T sold one-fifth of its UNIX System Labora marketing channels to market Motorola's 68000 tories to eleven computer companies, includiag series MRUs in Japan. Toshiba. The other computer companies involved are Motorola Inc., Novell Inc., Sun Microsystems Advanced Silicon Corporation Inc., NEC America Inc., England's ICL, Ing. Toshiba agreed to provide Advanced Silicon Cor C. Olivetti & Co. of Italy, the Institute for Informa poration with 6-inch CMOS wafers and jointly tion Industry of Taiwan, Fujitsu Ltd., and Old develop ASIC software. Electric Industries Co. Ltd. Siemens and G£ Vertex Semiconductor Corporation The companies agreed to joindy develop a com mon cell library. Toshiba America Electronic Components Inc. acquired Vertex Semiconductor Corporation for SGS-Thomson approximately $20 million. Vertex is a designer The companies extended a six-year agreement to and manufacturer of high-performance, multichip patent cross-licensing related to semiconductor ASICs for high gate cotmt, performance-driven technology. electronic systems. Toshiba had already owned a 14 percent equity stake under a three-year agree ment signed in 1989. 1987

GRiD 1990 Toshiba agreed to supply GRiD with an IBM PC AT-compatible kneetop computer. Toshiba Display Devices Inc. and Toshiba America Electronic Components Inc. Mitsui Petrochemical These two Toshiba subsidiaries have been merged The companies imdertook the joint development of to complete the consolidation of all of Toshiba's a magnetic tape emulator. North American components marketing, sales, and manufacturing operations. Viewlogic Systems \^ewlogic Systems is the principal worldwide sup Power and Design plier of CAE software for Toshiba. Toshiba has acquired Power and Design, a Belgian distributor for Toshiba. The new subsidiary will be Aida Corporation Toshiba agreed to provide Aida with its TC17G renamed Toshiba Information Systems and will gate array library models. Toshiba is gaining deal with marketing and sales for Toshiba-made access to Aida's semicustom IC design equipment printers, photocopiers, personal computers, and fax machines. The subsidiary is the seventh sales out SGS-ATES let for Toshiba communications and information The companies made a five-year technical collabo equipment in Europe. ration agreement allowing Toshiba to use SGS- ATES' semiconductor sales network in Europe and Integrated CMOS Systems Inc. (ICS) allowing SGS-ATES to receive LSI fab technology Toshiba has acquired equity stake in ICS. The and technical training for its engineers from acquisition will enable Toshiba to use the U.S. Toshiba. firm's design tools with existing customers, and, under its own name, Toshiba will market a new SDA Systems array family that will be developed using sub- The companies undertook a five-year joiat venture micron CMOS technology. (Note: ICS subse- to cooperatively develop CAD systems for IC quendy changed its name to Vertex Semiconductor design. Corporation.)

KEY OFFICERS PRINCIPAL INVESTORS

Joichi Aoi The Dai-ichi Mutual Life Insurance Company—4.3 President and chief executive officer percent Nippon Life Insurance Company—3.6 percent Tsuyoshi Kawanishi The Mitsubishi Trust & Banking Corporation—^3.1 Senior executive vice president percent The Mitsui Bank Limited—3.1 percent Keiichi Komlya Senior executive vice president Kinichi Kadono Senior executive vice president FOUNDERS Fumio Sato Senior executive vice president Information is not publicly available.

Table 3 Consolidated Balance Sheet Fiscal Year Ending in March (Millions of U.S. Dollars)

Balance Sheet 1987 1988 1989 1990 1991 Cash 1,279.5 3,681.8 4,964.5 7,127.3 5,998.9 Receivables 4212.6 5,223.5 6,885.8 7,131.5 8,288.4 Marketable Securities 1,284.5 1,409.8 1,334.1 1,323.7 1,373.8 Inventory 3,363.8 5,308.7 6,434.3 6,716.6 7,808.2 Other Current Assets 1,153.5 1,333.8 1,613.3 1,784.8 1,882.3 Total Current Assets 12,347.7 17,030.4 21,232.0 24,083.8 25,351.6 Net Property, Plants 4,666.5 5,346.6 6,158.3 6,336.0 7,915.2 Other Assets 3.573.2 4,399.8 5,402.7 5,830.8 5,896.9 Total Assets 20,587.4 26,776.8 32,793.0 36,250.6 39,163.7 Total Current Liabilities 11,500.1 15,018.5 19,002.7 19,287.1 20,713.1 Long-Term Debt 4,570.0 5,642.3 6,007.0 8,429.3 9,112.7 Other Liabilities 800.5 915.0 918.6 937.5 991.4 Total Liabilities 16,870.6 21,575.8 25,928.3 28,653.9 30,817.2 Common Stock 951.6 1,424.3 1,791.0 1,831.0 1,924.8 Other Equity 935.3 1,489.5 1,894.0 2,359.2 2,475.7 Retained Eiumings 1,829.7 2,287.2 3,180.0 3,406.6 3,945.9 Total Shareholders' Equity 3,716.8 5,201.0 6.864.7 7,596.7 8,346.4 Total Liabilities and Shareholders' Equity 20,587.4 26,776.8 32,793.0 36,250.6 39,163.7 Exchange Rate (U.S.$1^ 159.56 138.03 128.25 142.93 141.21

Source: Toshiba Coipoiation Animal Rq>otts Dataquest (Januaty 1992)

Table 4 Consolidated Income Statement Fiscal Year Ending in March (Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement 1987 1988 1989 1990 1991 Revenue 20.734.7 25,881.3 29,636.6 29,748.8 33,251.2 Japanese Revenue 14,336.8 17,865.7 20,133.3 18,065.5 18,285.5 Non-Japanese Revenue 6,397.9 8,015.6 9,503.3 9.405.3 10,302.4 Cost of Sales 15,223.8 18,640.2 20,150.0 20,037.8 22,509.0 R&D Expense 1,260.7 1,575.0 1,796.5 1,860.4 2,117.4 SG&A Expense 5,187.4 6,443.5 7,553.2 7,500.9 8,886.1 Capital Expense 1,337.1 1,359.7 2,086.5 2,263.3 3,122.3 Pretax Income 489.0 909.2 1,830.8 1,886.9 1,833.4 Pretax Margin (%) 2.36 3.51 6.18 6.3 5.5 Effective Tax Rate (%) 58.00 56.00 56.00 54.0 51.0 Net Income 214.4 439.8 922.1 922.1 856.2 Shares Outstanding, Millions 2,732.5 2,939.4 3,074.6 3,172.5 3,206.1 Per Share Data Earnings 0.07 0.15 0.29 0.28 0.25 Dividend 0.05 0.06 0.06 0.07 0.07 Book Value 1.36 1.77 2.23 1.68 1.82 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21

Source: Tosbiba Coipoiation Aiiiiual Reports Dataquest (Januaiy 1992)

Table 5 Consolidated Balance Sheet Fiscal Year Ending in March (BUlions of Yen)

Balance Sheet 1987 1988 1989 1990 1991 Cash 204.1 508.2 636.7 1,018.7 847.1 Receivables 671.9 721.0 883.1 1,019.3 1,170.4 Marketable Securities 204.9 194.6 171.1 189.2 194.0 Inventory 536.6 742.7 825.2 960.0 1,102.6 Otiier Current Assets 184.0 184.1 206.9 255.1 265.8 Total Current Assets 1,969.7 2,350.7 2,723.0 3,442.3 3,579.9 Net Property, Plants 744.5 737.9 789.8 905.6 1,117.7 Other Assets 569.9 607.4 692.9 833.4 832.7 Total Assets 3,284.1 3,696.0 4,205.7 5,181.3 5,530.3 Total Current Liabilities 1,834.5 2,073.0 2,437.1 2,756.7 2,924.9 Long-Term Debt 729.0 778.8 770.4 1,204.8 1,286.8 Other Liabilities 127.7 126.3 117.8 134.0 140.0 Total Liabilities 2,691.2 2,978.1 3,325.3 4,095.5 4,351.7 Converted Preferred Stock 0 0 0 0 0 Common Stock 151.8 196.6 229.7 261.7 271.8 Other Equity 149.2 205.6 242.9 337.2 349.6 Retained Earnings 291.9 315.7 407.8 486.9 557.2 Total Shareholders' Equity 592.9 717.9 880.4 1,085.8 1,178.6 Total Liabilities and Shareholders' Equity 3.284.1 3,696.0 4,205.7 5,181.3 5,530.3 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21

SooTce: Toshiba Coipoiation Annual Rq)arts Dataquest (Januaiy 1992)

Table 6 Consolidated Income Statement Fiscal Year Ending in March (Billions of Yen, except Per Share Data)

Consolidated Income Statement 1987 1988 1989 1990 1991 Revenue 3,307.6 3,572.4 3,800.9 4,252.0 4.695.4 Japanese Revenue 2,287.0 2,466.0 2,582.1 2,582.1 2,582.1 Non-Japanese Revenue 1,020.6 1,106.4 1,218.8 1,344.3 1,454.8 Cost of Sales 2,428.5 2,572.9 2,584.2 2,864.0 3,178.5 R&D Expense 201.1 217.4 230.4 265.9 299.0 SG&A Expense 827.5 889.4 968.7 1,072.1 1,254.8 Capital Expense 213.3 187.7 267.6 323.5 440.9 Pretax Income 78.0 125.5 234.8 269.7 258.9 Pretax Margin (%) 2.4 3.5 6.2 6.3 5.5 Effective Tax Rate (%) 58.0 56.0 56.0 54.0 51.0 Net Income 34.2 60.7 119.4 131.8 120.9 Shares Outstanding, Millions 2,732.5 2,939.4 3,074.6 3,172.5 3,206.1 Per Share Data Earnings 11.86 20.37 37.27 40.11 35.72 Dividend 8.00 8.00 8.00 10.00 10.00 Book Value 216.98 244.23 286.35 342.3 367.6 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21

Soiuce: Toshiba Coiporation Annual Reports Dataquest (Jamiaiy 1992)

Table 7 Key Financial Ratios Fiscal Year Ending in March Key Financial Ratios 1987 1988 1989 1990 1991 Liquidity Current (Times) 1.07 1.13 1.12 1.25 1.22 Total Assets/Equity (%) 553.90 514.83 477.70 477.19 469.23 Current Liabilities/Equity (%) 309.41 288.76 276.82 253.89 248.17 Total Liabilities/Equity (%) 453.90 414.83 377.70 377.19 369.23 Profitability (%) Return on Assets 1.04 1.64 2.84 2.54 2.19 Return on Equity 5.77 8.46 13.56 12.14 10.26 Profit Margin 1.03 1.70 3.14 3.10 2.57 Other Key Ratios R&D Spending % of Revenue 6.08 6.09 6.06 6.25 6.37 Capital Spending % of Revenue 6.45 5.25 7.04 7.61 9.39 Employees 121,000 122,000 125,000 142,000 162,000 Revenue (¥M)/Employee 27.34 29.28 30.41 29.94 28.98 Capital Spending % of Assets 6.49 5.08 6.36 6.24 7.97 Exchange Rate (U.S.$1=¥) 159.56 138.03 128.25 142.93 141.21

Source: Ibsbiba Coiporation Annual Reports Dataquest (January 1992)

BACKGROUND AND OVERVIEW TRW, Inc., originally known as Thompson Ramo Wooldridge, Inc., adopted its present name in 1965. The Company was formed in 1958 with the merger of Thompson Products, founded as the Cleveland Cap Screw Company on January 2, 1901, and the Ramo Wooldridge Corporation, which had been launched in 1953 with the financial support of Thompson Products. The Cleveland Cap Screw Company, as Thompson Products, became the leading producer of automotive and aircraft valves in the United States. The Ramo Wooldridge Corporation, specializing in the concept of systems engineering, was named as systems engineer and technical advisor to the U.S. Air Force in early 1955. In this role, Ramo Wooldridge was overseeing 220 prime contractors and thousands of subcontractors involved in a $17 billion crash effort for the U.S. ballistic missile program by 1957. This took TRW, Inc., into the aerospace industry and enabled the Company to become an early leader in the design and manufacture of unmanned spacecraft.

Today, TRW employs some 80,000 people worldwide. The Company provides products and services with a high-technological or engineering content to the space, defense, information systems, automotive, and energy markets. Recently, TRW has disposed of almost all its electronic components operations except for LSI products. This former division is now a full subsidiary called TRW LSI Products Inc. Contrary to recent press statements, TRW LSI Products is a merchant market supplier (less than 0.5 percent of its turnover is captive). TRW LSI Products' European headquarters is in Munich, West Germany. It also has European marketing and sales sites in Guildford, United Kingdom, and Paris, France. All LSI products are now manufactured in the United States and imported into Europe. Table 1 shows Dataquest's estimate of TRW's European semiconductor revenue.

Table 1 TRW, Inc. Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

1983 1984 1985 1986 1987

Total Semiconductor $ 17 $ 21 $ 21 $ 20 $ 11

Total Integrated Circuit $ 8 $ 10 $ 9 $ 8 0 Bipolar Digital 4 4 4 4 0 MOS 0 0 0 1 0 Linear 4 6 5 3 0

Total Discrete $ 5 $ 6 $ 4 $ 4 $ 2 Transistor 4 5 4 4 2 Diode 1 1 0 0 0 Thyristor 0 0 0 0 0 Other 0 0 0 0 0

Total Optoelectronic $ 5 $ 8 $ 8 $ 9

Source: Dataquest February 1989

PRODUCTS AND MARKETS SERVED TRW LSI Products manufactures ICs, hybrids, and printed circuit boards in the area of data conversion, and linear, arithmetic, and signal processing products for imaging, test equipment, military, telecommunications, and instrumentation equipment.

OUTLOOK The Company is concentrating on producing higher-performance, higher-resolution data conversion especially in hybrids, as well as more complete DSP functions on a single chip.

^ Zilog, Inc.

BACKGROUND AND OVERVIEW Zilog, Inc., was founded in November 1974 by F. Faggin and R. Ungermann, both previously with Intel Corporation. The Company was established to manufacture and sell microprocessor products. In June 1975, Exxon Enterprises, Inc., the oil company, showed an interest in the newly formed company and offered capital assistance. Zilog is now an affiliate of Exxon Enterprises. In October 1976, Zilog's headquarters were established in Cupertino, California. Over the next few years, widespread recognition for the Z80, Zilog's improved second-generation version of Intel's highly successful 8080 8-bit microprocessor, brought rapid growth and expansion for the Company. Zilog opened its first in-house component manufacturing facility, designed to employ the latest state-of-the-art technology, in Campbell, California. In addition, a systems manufacturing facility was also opened in Cupertino, and a component assembly plant in Manila, the Philippines. Zilog also opened its first domestic facility outside California, a manufacturing plant in Nampa, Idaho. The addition of this facility considerably increased Zilog's wafer fabrication potential. In November 1984, Dr. Ed Sack took over as president and chief executive. He began reorganizing the Company from one driven by technology to one led by market needs. Zilog has always had a reputation for technological excellence, but in the past it did not have good sales and earnings. Dr. Sack became actively involved in every aspect of the Company's operations and geared it to perceiving customers' needs. This resulted in Zilog moving into profit in 1986, and increasing sales still further in 1987. Table 1 shows Zilog's European semiconductor revenue by technology.

Table 1 Zilog, Inc. Estimated European Semiconductor Revenue by Product Line (Millions of U.S. Dollars)

2M2 1983 1984 1985 1986

Total Semiconductor $9 $10 $13 $9 $12

Total Integrated Circuit $9 $10 $13 $9 $12 Bipolar Digital 0 0 0 0 0 MOS 9 10 13 9 12 Linear 0 0 0 0 0

Total Discrete 0 0 0 0 0 Transistor 0 0 0 0 0 Diode 0 0 0 0 0 Thyristor 0 0 0 0 0 Other 0 0 0 0 0

Total Optoelectronic

Source: Dataquest February 1988

PRODUCTS AND MARKETS SERVED Zilog developed the Z80 microprocessor in 1976 and has since added a broad line of peripheral devices. The Company introduced the first members of two new families, the Z8, a single-chip, 8-bit microcomputer aimed at high-performance, cost-sensitive applications, and the Z8000, a 16-bit microcomputer that took Zilog into the high-end microcomputer market. Zilog has a wide product range in the systems area, including development systems, a complete line of Z80-based microcomputer boards and general-purpose microcomputer systems, and a vast array of software support. As regards the Z80000 family, Zilog was sampling the Z80000 microprocessor throughout 1986. Production began in March 1987, and small quantities of the device are currently available. Full production is scheduled for early this year.

Zilog has several 32-bit devices aimed at more specialized markets. The latest in this family is the Z320 microprocessor launched in November 1987. With its $26 price tag, it is aimed at starting a trend toward lower-price 32-bit processors. The device is supported by the range of hardware design and software development tools already available for the Z8000 family. In 1988, Zilog plans to include ADA compilers for embedded control, an IBM PC AT single-board computer, evaluation board ATZ80K, and a real-time operating system. The Company has agreements with other suppliers including AT&T, Catalyst, Hitachi, NEC, Sharp, Toshiba, and VLSI Technology.

OUTLOOK Dr. Sack sees four main trends in the processor market: • The 8-bit market still has plenty of life left because designers are still working with 8-bit microcomputers. • The processor market has three camps—the Intel devices driving IBM personal computers and compatibles, the "UNIX engine" market dominated by Motorola, and the embedded processor and microcomputer market where standards are less of an issue. • There is a trend toward higher levels of chip integration. • ASIC devices have fueled the processor market, so companies with proprietary processor architectures become valuable to the ASIC supplier. Zilog's main future thrust will be in the direction of superintegration, with 8-bit processor cores well placed to form the heart of superintegrated solutions. The Company is pursuing the superintegration goal through two routes. The first is to increase the integration level of its own proprietary processors; the second is to work closely with selected customers to develop standard devices tailored for specific applications (cable TV decoders and modems, for example).

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Market Share Executive Summary

1987 EUROPEAN MARKET SHARE ESTIMATES The following table summarizes the data in our "Market Share" service section, which is located in Volume HI, "Companies," of the European Semiconductor Industry Service notebooks (directly following this section). The European revenue shown in the table is given by product and supplier bases. All figures are reported in millions of dollars.

European Revenue—^Market Share Executive Summary (Millions of Dollars)

1981 198? 1983 1984 1985 1986 1997

Total Semiconductor $3,041 $3,167 $3,370 $4,805 $4,720 $5,532 $6,355 European Companies 1,285 1,297 1,358 1,721 1,809 2,323 2,714 U.S. Companies 1,596 1,656 1,680 2,475 2,377 2,539 2,746 Japanese Companies 160 214 332 609 534 664 845 Rest of World Companies 0 0 0 0 0 6 50 Total Integrated Circuit $1,892 $1,988 $2,323 $3,634 $3,556 $4,088 $4,693 European Companies 649 641 751 1,059 1,115 1,447 1,697 U.S. Companies 1,103 1,157 1,270 2,003 1,953 2,043 2,196 Japanese Companies 140 190 302 572 488 592 750 Rest of World Companies 0 0 0 0 0 6 50 Total Bipolar Digital $ 454 $ 434 $ 483 $ 724 $ 709 $ 782 $ 725 European Companies 157 138 123 180 194 219 243 U.S. Companies 287 285 342 526 491 529 439 Japanese Companies 10 11 18 18 24 34 43 Rest of World Companies 0 0 0 0 0 0 0 Total Bipolar TTL $ 413 $ 394 $ 446 $ 659 $ 641 $ 705 $ 564 European Companies 141 124 110 161 168 192 147 U.S. Companies 262 259 318 480 449 486 389 Japanese Companies 10 11 18 18 24 27 28 Rest of World Companies 0 0 0 0 0 0 0

Total Bipolar ECL $ 41 $ 40 $ 37 $ 65 $ 68 $ 77 $ 161 European Companies 16 14 13 19 26 27 96 U.S. Companies 25 26 24 46 42 43 50 Japanese Companies 0 0 0 0 0 7 15 Rest of World Companies 0 0 0 0 . 0 0 0

Total Bipolar Digital (recap) $ 454 $ 434 $ 483 $ 724 $ 709 $ 782 $ 725 European Companies 157 138 123 180 194 219 243 U.S. Companies 287 285 342 . 526 491 529 439 Japanese Companies 10 11 18 18 24 34 43 Rest of World Companies 0 0 0 0 0 0 0

(Continued)

® 1988 Dataquest Incorporated September ESIS Volume m 0001391 Market Share Executive Summary

Eur(^)ean Revenue—^Market Share Executive Summary (Millions of Dollars)

laSl 19S2 1983 1984 1965 1986 1987

Total Bipolar Memory $ 103 $ 100 $ 107 $ 149 $ 157 $ 172 $ 85 European Companies 18 17 24 33 41 42 21 U.S. Companies 80 78 76 107 103 108 51 Japanese Companies 5 5 7 9 13 22 13 Rest of World Companies 0 0 0 0 0 0 0 Total Bipolar Logic $ 351 $ 334 $ 376 $ 575 $ 552 $ 610 $ 640 European Companies 139 121 99 147 153 177 222 U.S. Companies 207 207 266 419 388 421 388 Japanese Companies 5 6 11 9 11 12 30 Rest of World Companies 0 0 0 0 0 0 0 Total MOS Digital $ 882 $ 948 $1,227 $2,092 $1,953 $2,280 $2,753 European Companies 210 206 319 523 531 722 825 U.S. Companies 551 572 639 1,034 975 1,014 1,221 Japanese Companies 121 170 269 535 447 538 657 Rest of World Companies 0 0 0 0 0 6 50 Total MMDS $ 607 $ 650 $ 824 $1,443 $1,232 $1,294 $1,434 European Companies 117 103 186 329 298 381 366 U.S. Companies 392 410 425 724 624 567 716 Japanese Companies 98 137 213 390 310 346 343 Rest of World Companies 0 0 0 0 0 0 9 Total CMOS $ 189 $ 214 $ 353 $ 617 $ 702 $ 976 $1,284 European Companies 45 57 116 181 226 338 443 U.S. Companies 121 124 181 291 339 440 490 Japanese Companies 23 33 56 145 137 192 310 Rest of World Companies 0 0 0 0 0 6 41

Total Hi-CMOS $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 24 European Companies 0 0 0 0 0 0 14 U.S. Companies 0 0 0 0 0 0 7 Japanese Companies 0 0 0 0 0 0 3 Rest of World Companies 0 0 0 0 0 0 0

(Continued)

Eurcq)ean Revenue—^Market Share Executive Summary (Millions of Dollars)

1981 IS31 1983 1984 1985 1986 1987

Total Other MOS 86 $ 84 $ 50 32 19 10 $ 11 European Companies 48 46 17 13 7 3 2 U.S. Companies 38 38 33 19 12 7 8 Japanese Companies 0 0 0 0 0 0 1 Rest of World Companies 0 0 0 0 0 0 0 Total MOS Digital (recap) $ 882 $ 948 $1,227 $2,092 $1,953 $2,280 $2,753 European Companies 210 206 319 523 531 722 825 U.S. Companies 551 572 639 1,034 975 1,014 1,221 Japanese Companies 121 170 269 535 447 538 657 Rest of World Companies 0 0 0 0 0 6 50 Total MOS Memory $ 426 $ 469 $ 581 $ 995 $ 750 $ 822 $ 838 European Companies 33 45 86 137 107 131 114 U.S. Companies 289 281 278 457 346 322 285 Japanese Companies 104 143 217 401 297 363 394 Rest of World Companies 0 0 0 0 0 6 45 Total MOS Microcomponent $ 149 $ 168 $ 239 $ 465 $ 485 $ 578 $ 794 European Companies 17 27 41 86 97 147 168 U.S. Companies 119 123 161 278 277 307 448 Japanese Companies 13 18 37 101 111 124 178 Rest of World Companies 0 0 0 0 0 0 0 Total MOS Logic $ 307 $ 311 $ 407 $ 632 $ 718 $ 880 $1,121 European Companies 160 134 192 300 327 444 543 U.S. Companies 143 168 200 299 352 385 488 Japanese Companies 4 9 15 33 39 51 85 Rest of World Companies 0 0 0 0 0 0 5 Total Linear $ 556 $ 606 $ 613 $ 818 $ 894 $1,026 $1,215 European Companies 282 297 309 356 390 506 629 U.S. Companies 265 300 289 443 487 500 536 Japanese Companies 9 9 15 19 17 20 50 Rest of World Companies 0 0 0 0 0 0 0

(Continued)

® 1988 Dataquest Incorporated September ESIS Volume m 0001391 Market Share Executive Summary

Eurc^>ean Revenue—^Market Share Executive Summary (Millions of Dollars)

1981 3-982 2M1 1984 1985 1M& 1M2

Total Discrete $ 995 $1,011 $ 866 $ 963 $ 954 $1,153 $1,384 European Companies 571 579 518 560 575 711 839 U.S. Companies 407 412 325 375 346 395 478 Japanese Companies 17 20 23 28 33 47 67 Rest o£ World Companies 0 0 0 0 0 0 0 Total Transistor $ 463 $ 468 $ 408 $ 450 $ 463 $ 540 $ 655 European Companies 262 261 238 260 276 303 357 U.S. Companies 190 194 154 173 169 207 252 Japanese Companies 11 13 16 17 18 30 46 Rest of World Companies 0 0 0 0 0 0 0 Total Small Signal Transistor 251 $ 247 $ 210 $ 223 $ 207 $ 247 0 European Companies 141 136 118 125 121 135 H/A U.S. Companies 100 99 76 82 71 89 K/A Japanese Companies 10 12 16 16 15 23 N/X Rest of World Companies 0 0 0 0 0 0 H/A

Total Power Transistor 212 $ 221 $ 198 $ 227 $ 256 $ 293 0 European Companies 121 125 120 135 155 168 H/A U.S. Companies 90 95 78 91 98 118 N/A Japanese Companies 1 1 0 1 3 7 H/A Rest of World Companies 0 0 0 0 0 0 H/A

Total Diode $ 384 $ 391 $ 327 $ 358 $ 342 $ 432 $ 431 European Companies 210 213 181 186 186 265 252 U.S. Companies 172 176 144 170 150 157 175 Japanese Companies 2 2 2 2 6 10 4 Rest of World Companies 0 0 0 0 0 0 0 Total Small Signal Diode 157 $ 154 $ 125 $ 132 $ 119 $ 145 0 European Companies 99 98 78 77 77 101 H/A U.S. Companies 57 55 46 54 40 36 H/A Japanese Companies 1 1 1 1 2 8 H/A Rest of World Companies 0 0 0 0 0 0 H/A

(Contixmsd)

ESIS Volume ffl ® 1988 Dataquest Incorporated September 0001391 Market Share Executive Summary

European Revenue—^Market Share Executive Summary (Millions of Dollars)

IMl JMl laM liM 133^ 12M ISSl Total Power Diode $ 192 $ 202 $ 174 $ 193 $ 189 $ 247 0 European Companies 89 93 83 87 90 139 N/A U.S. Companies 102 108 90 105 96 106 N/A Japanese Companies 1 1 1 1 3 2 M/A 0 0 0 0 Rest of World Companies 0 0 N/A Total Zener Diode 35 $ 35 $ 28 $ 33 $ 34 $ 40 0 European Companies 22 22 20 22 19 25 N/A U.S. Companies 13 13 8 11 14 15 H/A Japanese Companies 0 0 0 0 1 0 M/A Rest of World Companies 0 0 0 0 0 N/A Total Thyristor 103 105 $ 91 $ 103 $ 100 $ 125 $ 183 European Companies 73 77 70 75 77 102 152 U.S. Companies 29 27 20 25 20 19 28 Japanese Companies 1 1 1 3 3 4 3 Rest of World Companies 0 0 0 0 0 0 0 Total Other Discrete 45 $ 47 $ 40 $ 52 $ 49 $ 56 $ 115 European Companies 26 28 29 39 36 41 78 U.S. Companies 16 15 7 7 7 12 23 Japanese Companies 3 4 4 6 6 3 14 Rest of World Companies 0 0 0 0 0 0 0 Total Optoelectronic 154 $ 168 $ 181 $ 208 $ 210 $ 291 $ 278 European Companies 65 77 89 102 119 165 178 U.S. Companies 86 87 85 97 78 101 72 Japanese Companies 3 4 7 9 13 25 28 Rest of World Companies 0 0 0 0 0 0 0 Total LED Lamp 41 $ 44 $ 45 $ 55 55 76 0 European Companies 21 24 27 33 36 44 N/A U.S. Companies 20 20 18 21 16 24 N/A Japanese Companies 0 0 0 1 3 8 N/A Rest of World Companies 0 0 0 0 0 0 N/A

(Continued)

Eurc^>ean Revenue—^Market Share Executive Summary (Millions of Dollars)

1981 1982 1983 1984 1985 1986 1987

Total LED Display 57 $ 65 66 70 62 87 0 European Companies 18 26 27 30 33 47 N/A U.S. Companies 39 39 39 40 28 34 M/A Japanese Companies 0 0 0 0 1 6 N/A Rest of World Companies 0 0 0 0 0 0 H/A Total Optical Coupler 27 $ 28 $ 32 40 41 $ 56 0 European Companies 14 14 17 17 22 27 N/A U.S. Companies 13 14 15 23 18 28 N/A Japanese Companies 0 0 0 0 1 1 N/A Rest of World Companies 0 0 0 0 0 0 H/A Total Other Optoelectronic 29 31 $ 38 $ 43 $ 52 72 0 European Companies 12 13 18 22 28 47 N/A U.S. Companies 14 14 13 13 16 15 N/A Japanese Companies 3 4 7 8 8 10 N/A Rest of World Companies 0 0 0 0 0 0 N/A

Source: Dataquest September 1988

ESIS Volume ffl ® 1988 Dataquest Incorporated September 0001391 Market Share Executive Summary

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An integral part of Dataquest's European Semiconductor Industry Service data base is the analysis of semiconductor markets through estimation of market share by manufacturer. This analysis provides insights into the semiconductor markets and reinforces estimates of consumption, shipments, and company revenue that were made using other data. The tables are grouped in two parts: the first part gives worldwide market shares for European semiconductor companies, and the second part shows European market shares for all major European, U.S., and Japanese semiconductor companies. The tables included in Appendix B are as follows: • Tables B-1 through B-7—Worldwide market shares of European semiconductor companies by product line • Tables B-8 through B-23—European market shares of all major European, U.S., Japanese, and Rest of World semiconductor companies by product line A full index of the tables is included for easy reference. The totals given for the companies reflect worldwide production. For example, Texas Instruments, Inc., manufactures semiconductors in many parts of the world, but its entire production is included under the U.S. companies' market share section. Where a company has a subsidiary, the subsidiary's revenue is included in the worldwide revenue of the parent company.

DEFINITIONS AND CONVENTIONS Dataquest uses a common manufacturer base for all data tables. This base includes all noncaptive suppliers to the semiconductor market. It excludes captive suppliers, such as IBM, that manufacture devices solely for the benefit of the parent company, but it includes companies that actively market their semiconductor devices to industry as well as to other divisions of their own companies. For these companies, both external shipments and internal consumption are included. Devices that are used internally are valued at current market prices. All estimates given in these tables have been converted to U.S. dollars to make the tables useful in comparing companies based in different countries. The dollar was chosen as the common currency because of the U.S. producers' large presence in European markets and because much of the source data are expressed in U.S. dollars. Construction of the tables involves combining data from many countries, each of which has different and changing exchange rates. Dataquest uses International Monetary Fund average exchange rates for each year, and, as far as possible, the estimates are prepared in terms of local currencies before conversion to U.S. dollars.

NEED FOR CAREFUL INTERPRETATION Despite the care taken in gathering and analyzing the available data and in attempting to categorize those data in a meaningful way, careful attention must be paid to the definitions and assumptions used here when interpreting the estimates presented in these tables. Various companies, government agencies, and trade associations may use slightly different definitions of product categories and regional groupings, or they may include different companies in their summaries. These differences should be kept in mind when making comparisons between these data and those provided by other sources.

INDEX OF TABLES

Product Segment Table Worldwide Market Shares of European Semiconductor Companies by Product Line: Total Semiconductor B-1 Integrated Circuit B-2 Bipolar Digital B-3 MOS B-4 Linear B-5 Discrete B-6 Optoelectronic B-7 European Market Shares of Major Semiconductor Companies by Product Line: Total Semiconductor B-8 Integrated Circuit B-9 Bipolar Digital B-10 Bipolar Memory B-11 Bipolar Logic B-12 MOS Digital B-13 MOS Memory B-14 MOS Microcomponent B-15 MOS Logic B-16 Linear B-17 Discrete B-18 Transistor B-19 Diode B-20 Thyristor B-21 Other Discrete B-22 Optoelectronic B-23

Table B-1 Worldwide Semiconductor Market Share Estimates of Eurc^an Companies (Millions of U.S. Dollars)

1981 1982 19B3 1984 1985 1986 1987

;al $1,903 1,929 2,215 3,183 2,850 3,446 4,201

ASEA Brown Boveri* 10 13 14 22 28 35 103 Austria Mikro Systeme* 0 0 0 0 0 0 32 Brown Boveri* 24 24 20 25 29 35 0 ES2* 0 0 0 0 0 0 7 Eurosil 15 15 15 20 21 30 25 Ferranti 48 82 85 105 98 95 102 Inmos 4 26 58 146 85 80 91 Matra-Harris 6 13 13 41 42 47 48 MEDL 19 21 25 31 35 39 47 Mietec* 0 0 0 0 0 0 32 Philips* 828 797 917 1,325 1,068 1,356 1,603 Plessey 49 53 61 82 99 112 120 Rifa 7 7 7 11 12 12 41 Semikron 29 34 36 40 48 72 79 SGS Thomson* 160 175 230 335 300 370 859 Siemens* 337 329 333 450 420 429 657 STC (Stantel)* 0 0 34 40 17 18 12 TAG 21 21 17 20 18 18 21 Telefunken Electronic* 138 143 134 161 170 219 273 Thomson* 180 148 195 301 324 436 0 Others 28 28 21 28 36 43 49

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-2 Worldwide Integrated Circuit Market Share Estimates of European Companies (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1986 1987

Total $1,080 1,150 1,470 2,273 1,911 2,348 2,846

ASEA. Brown Boveri* 5 7 7 13 18 22 26 Austria Mikro Systeme* 0 0 0 0 0 0 32 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 7 Eurosil 15 15 15 20 21 30 25 Ferranti 34 68 68 85 78 78 80 Inmos 4 26 58 146 85 80 91 Matra-Harris 6 13 13 41 42 47 48 MEDL 8 9 12 16 20 22 27 Mietec* 0 0 0 0 0 0 32 Philips* 590 570 694 1,090 808 1,041 1,187 Plessey 46 50 58 75 89 98 103 Rifa 7 7 7 11 12 12 39 Semikron 0 0 0 0 0 0 0 SGS Thomson* 110 126 177 263 240 291 646 Siemens* 155 160 178 230 205 216 354 STC (Stantel)* 0 0 30 38 16 18 12 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 38 36 51 63 68 82 110 Thomson* 59 60 99 174 197 293 0 Others 3 3 3 8 12 18 27

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: DatagueSt September 1988 0588-07

Table B-3 Worldwide Bipolar Digital Market Share Estimates of Eun4>ean Companies (Millions of U.S. Dollars)

1981 1992 1983 1994 199$ 1986 1997

Total $405 $404 $464 $752 $556 $573 $595 ASEA Brovm Boveri* 0 0 0 0 0 0 0 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 14 32 36 46 49 43 37 Inmos 0 0 0 0 0 0 0 1 3 Matra-Harris 0 0 0 4 4 0 0 0 0 0 MEDL 0 0 0 0 0 0 0 0 0 Mietec* 298 278 344 589 372 427 406 Philips* 18 19 21 27 30 30 31 Plessey 6 6 6 9 9 5 12 Rifa 0 0 0 0 0 0 0 Semikron 14 5 10 20 26 20 20 SGS Thomson* 52 56 36 35 41 36 63 Siemens* 0 0 0 0 0 0 0 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0 15 Telefunken Electronic* 2 7 10 21 24 10 0 Thomson* 1 1 1 1 1 1 8 Others

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-4 Worldwide MOS Market Share Estimates of Eurcq>ean Companies (Millions of U.S. Dollars)

19?1 19?2 ^9?3 1994 1985 1996 1997

Total $294 $335 $528 $912 $778 1,022 1,250 A.SEA Brown Boveri* 5 7 7 13 18 22 26 Austria Mikro Systeme* 0 0 0 0 0 0 29 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 7 Eurosil 15 15 15 20 21 30 25 Ferranti 4 13 11 12 6 11 12 Ininos 4 26 58 146 85 80 91 Matra-Harris 6 13 13 33 36 44 43 MEDL 8 9 12 16 20 22 27 32 Mietec* 0 0 0 0 0 0 100 99 155 266 228 314 342 Philips* 11 14 19 26 35 39 39 Plessey 1- 1 1 2 3 4 11 Rifa 0 0 0 0 0 0 0 Semikron 33 45 68 102 88 106 344 SGS Thomson* 65 64 80 126 92 89 171 Siemens* 0 0 30 38 16 18 12 STC (Stantel)* 0 0 0 0 0 0 0 TAG 11 5 8 13 13 19 23 Telefunken Electronic* 30 23 50 93 107 210 0 Thomson* 1 1 1 6 10 14 16 Others

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-5 Worldwide Linear Market Share Estimates of Eurqpean Companies (Millions of U.S. Dollars)

laai 1982 1983 1984 1985 1980 1987 Total $381 $411 $478 $609 $577 $753 1,001

ASEA Brown Boveri* 0 0 0 0 0 0 0 Austria Mikro Systeme* 0 0 0 0 0 0 3 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 16 23 21 27 23 24 31 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 4 2 2 2 0 0 0 0 0 0 MEDL 0 0 0 0 0 0 0 0 Mietec* 192 193 195 235 208 300 439 Philips* 17 17 18 22 24 29 33 Plessey 0 0 0 0 0 3 16 Rifa 0 0 0 0 0 0 0 Semikron 63 76 99 141 126 165 282 SGS Thomson* 38 40 62 69 72 91 120 Siemens* 0 0 0 0 0 0 0 STC (Stantel)* 0 0 0 0 0 0 0 TAG 27 31 43 50 55 63 72 Telefunken Electronic* 27 30 39 60 66 73 0 Thomson* 1 1 1 1 1 3 3 Others

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-6 Worldwide Discrete Market Share Estimates of £un^>ean Companies (Millions of U.S. Dollars)

i9n 1982 19S3 1984 1995 ).9?$ ).987 Total $741 $686 $642 $764 $770 $904 1,125

ASEA Brown Boveri* 4 5 4 5 5 7 69 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 24 24 20 25 29 35 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 14 14 17 20 20 17 22 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 0 0 0 0 MEDL 11 12 13 15 15 17 20 Mietec* 0 0 0 0 0 0 0 Philips* 219 208 204 217 235 288 390 Plessey 0 0 0 0 0 0 0 Rifa 0 0 0 0 0 0 0 Semikron 29 34 36 40 48 72 79 SGS Thomson* 50 49 53 72 60 79 213 Siemens* 146 131 114 150 140 133 218 STC (Stantel)* 0 0 4 2 1 0 0 TAG 21 21 17 20 18 18 21 Telefunken Electronic* 82 82 53 60 61 84 86 Thomson* 121 88 96 127 123 138 0 Others 20 18 11 11 15 16 7

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-7 Worldwide Optoelectronic Market Share Estimates of Eurc^iean Companies (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1986 Ififil

Total $82 $93 $103 $146 $169 $194 $230

ASEA Brown Boveri* 1 1 3 4 5 6 8 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 0 0 0 0 0 0 0 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 0 0 0 0 MEDL 0 0 0 0 0 0 0 Mietec* 0 0 0 0 0 0 0 Philips* 19 19 19 18 25 27 26 Plessey 3 3 3 7 10 14 17 Sifa 0 0 0 0 0 0 2 Semikron 0 0 0 0 0 0 0 SGS Thomson* 0 0 0 0 0 0 0 Siemens* 36 38 41 70 75 80 85 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 18 25 30 38 41 53 77 Thomson* 0 0 0 0 4 5 0 Others 5 7 . 7 9 9 9 15

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-8 Total European Semiconductor Nfarket Share Estimates (Millions of U.S. Dollars)

1991 1982 2M1 1984 1985 1996 1997

Total $3,041 3,167 3,370 4,805 4,720 5,532 6,355 European Companies $1,285 1,297 1,358 1,721 1,809 2,323 2,714 ASEA Brown Boveri* 10 13 14 21 25 32 91 Austria Mikro Systeme* 0 0 0 0 0 0 32 Brown Boveri* 22 22 18 22 24 26 0 ES2* 0 0 0 0 0 0 6 Eurosil 8 8 8 10 10 14 11 Ferranti 30 45 54 67 65 66 67 Inmos 1 4 9 25 18 16 20 Matra-Harris 5 12 12 37 36 40 35 MEDL 16 18 21 26 30 32 37 Mietec* 0 0 0 0 0 0 32 Philips* 457 436 454 546 596 820 930 Plessey 34 35 38 51 66 78 84 Rifa 7 7 7 11 11 13 34 Semikron 22 24 25 27 30 43 49 SGS Thomson* 116 115 120 180 201 244 537 Siemens* 241 249 252 280 270 370 475 STC (Stantel)* 0 0 24 27 12 13 5 TAG 17 17 14 16 12 14 16 Telefunken Electronic* 125 128 109 133 133 164 209 Thomson* 144 133 157 210 240 302 0 Others 30 31 22 32 30 36 44

U.S. Companies $1,596 1,656 1,680 2,475 2,377 2,539 2,746 AMD* 46 58 83 170 174 172 235 Analog Devices 26 27 28 44 51 65 77 Fairchild* 112 111 95 110 105 102 0 GE Solid State* 41 41 38 43 34 34 122 General Instrument 52 50 44 50 42 37 40 Harris 25 26 28 40 31 39 40 Hewlett-Packard 31 32 31 41 39 46 17 Intel 139 140 140 225 212 214 283 International Rectifier 25 26 24 30 31 37 53 ITT* 131 135 126 171 185 215 243 LSI Logic* 0 0 0 0 0 0 40 Monolithic Memories* 25 27 30 36 42 48 0

(Continued)

Table B-8 (Continued) Total European Semiconductor Market Share Estimates (Millions of U.S. Dollars)

1981 2M1 1983 ISM 1985 1M4 2M1

U.S. Companies (Continued) Motorola 238 252 280 385 389 425 478 National Semiconductor* 131 149 159 237 218 236 345 Powerex* 12 12 9 10 10 12 19 RCA* 56 58 60 88 80 85 0 Siliconiz 19 20 20 25 24 33 38 Texas Instruments 314 318 330 522 468 488 492 TRW 16 17 17 21 21 20 11 VLSI Technology* 0 0 0 0 0 0 22 Zilog 19 9 10 13 9 12 17 Others 138 148 128 214 212 219 174 Japanese Companies $160 $214 $332 $609 $534 $664 $845 Fujitsu 10 21 33 58 64 74 110 Hitachi 61 71 110 201 169 177 157 Matsushita 6 6 7 9 9 9 26 Mitsubishi 4 6 15 21 17 33 53 NEC 54 76 109 203 174 229 249 Oki 2 4 15 28 22 25 41 Toshiba 18 25 39 82 72 110 188 Others 5 5 4 7 7 7 21

ROW Companies 0 0 0 0 0 $6 $50 Goldstar* 0 0 0 0 0 2 11 Samsung* 0 0 0 0 0 3 35 Others 0 0 0 0 0 1 4

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-9 Total Eur(^)ean Integrated Circuit Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1986 ISSl

Total $1,892 1,988 2,323 3,634 3,556 4,088 4,693 European Companies $649 $641 $751 1,059 1,115 1,447 1,697 ASEA Brown Boveri* 5 7 7 12 15 19 23 Austria Mikro Systeme* 0 0 0 0 0 0 32 Brovm Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 6 Eurosil 8 8 8 10 10 14 11 Ferranti 21 35 42 52 50 52 51 Inmos 1 4 9 25 18 16 20 Matra-Harris 5 12 12 37 36 40 35 MEDL 7 8 11 15 19 17 21 Mietec* 0 0 0 0 0 0 32 Philips* 264 252 273 351 384 557 618 Plessey 33 34 37 45 58 65 69 Ri£a 7 7 7 11 11 11 32 Semikron 0 0 0 0 0 0 0 SGS Thomson* 77 80 86 137 153 193 397 Siemens* 124 100 122 160 145 186 244 STC (Stantel)* 0 0 20 25 11 13 5 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 35 33 35 46 46 49 78 Thomson* 59 58 79 125 147 203 0 Others 3 3 3 8 12 12 23

U.S. Companies $1,103 1,157 1,270 2,003 1,953 2,043 2,196 AMD* 46 58 83 170 174 172 235 Analog Devices 26 27 28 44 51 65 77 Fairchild* 86 86 78 97 95 95 0 GE Solid State* 16 15 16 20 19 21 92 General Instrument 27 24 23 28 21 12 13 Harris 25 26 28 40 31 39 40 Hewlett-Packard 0 0 0 0 0 0 0 Intel 139 140 140 225 212 214 283 International Rectifier 0 0 0 0 0 0 0 ITT* 58 60 61 87 95 116 132 LSI Logic* 0 0 0 0 0 0 40 Monolithic Memories* 25 27 30 36 42 48 0

(Continued)

Table B-9 (Continued) Total Eurcq)ean Integrated Circuit Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1986 1987

U.S. Companies (Continued) Motorola 135 142 179 265 265 279 302 National Semiconductor* 119 138 151 233 215 232 335 Powerex* 0 0 0 0 0 0 0 RCA* 26 28 46 73 64 64 0 Siliconix 10 11 12 14 17 22 25 Texas Instruments 239 256 281 475 434 448 449 TRW 5 5 8 10 9 8 0 VLSI Technology* 0 0 0 0 0 0 22 Zilog 19 9 10 13 9 12 17 Others 102 105 96 173 200 196 134 Japanese Companies $140 $190 $302 $572 $488 $592 $750 Fujitsu 9 20 32 58 64 74 110 Hitachi 56 66 104 193 161 168 146 Matsushita 2 2 2 3 3 5 8 Mitsubishi 4 5 14 20 15 28 48 NEC 51 70 103 198 169 211 243 Oki 2 4 15 28 22 25 41 Toshiba 15 22 31 71 53 80 142 Others 1 1 1 1 1 1 12

ROW Companies 0 0 0 0 0 $6 $50 Goldstar* 0 0 0 0 0 2 11 Samsung* 0 0 0 0 0 3 35 Others 0 0 0 0 0 1 4

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-10 Total Eur(^>ean Bipolar Digital Market Share Estimates (Millions of U.S. Dollars)

1991 1952 1983 1984 1985 1986 1987

al $454 $434 $483 $724 $709 $782 $725

European Companies $157 $138 $123 $180 $194 $219 $243 ASEA Brown Boveri* 0 0 0 0 0 0 0 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 10 14 22 26 28 29 26 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 4 4 3 3 MEDL 0 0 0 0 0 0 0 Mietec* 0 0 0 0 0 0 0 Philips* 71 61 52 82 86 106 97 Plessey 10 8 8 9 13 16 15 Rifa 6 6 6 9 9 5 5 Semikron 0 0 0 0 0 0 0 SGS Thomson* 14 4 2 11 12 14 14 Siemens* 43 38 24 24 24 33 61 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 0 0 0 0 0 0 15 Thomson* 2 6 8 14 17 10 0 Others 1 1 1 1 1 3 7

U.S. Companies $287 $285 $342 $526 $491 $529 $439 AMD* 23 27 37 55 56 65 109 Analog Devices 0 0 0 0 0 0 0 Fairchild* 49 48 52 62 61 67 0 GE Solid State* 2 1 2 0 0 0 0 General Instrument 0 0 0 0 0 0 0 Harris 12 12 14 20 18 7 0 Hewlett-Packard 0 0 0 0 0 0 0 Intel 8 7 4 20 10 13 8 International Rectifier 0 0 0 0 0 0 0 ITT* 0 0 0 0 0 0 0 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 22 22 24 29 39 46 0

(Continued)

Table B-10 (Continued) Total Eurqpean Bipolar Digital Market Share Estimates (Millions of U.S. Dollars)

1981 1962 1983 1984 1965 199g ISSl

U.S. Companies (Continued) Motorola 29 31 38 69 67 74' 53 National Semiconductor* 38 35 42 58 41 48 94 Powerex* 0 0 0 0 0 0 0 RCA* 0 0 0 0 0 0 0 Siliconix 0 0 0 0 0 0 0 Texas Instruments 101 99 123 204 182 189 161 TRW 2 2 4 4 4 4 0 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 1 1 2 5 13 16 14 Japanese Companies $10 $11 $18 $18 $24 $34 $43 Fujitsu 0 2 5 5 9 16 26 Hitachi 8 8 11 10 10 11 5 Matsushita 0 0 0 0 0 0 2 Mitsubishi 0 0 0 0 12 3 NEC 2 12 3 4 5 5 Oki 0 0 0 0 0 0 2 Toshiba 0 0 0 0 0 0 0 OtherROW Companies s 0 0 0 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 Others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-ll £urc^)ean Bipolar Memory Market Share Estimates (Millions of U.S. Dollars)

1981 199? 19?3 1984 1985 liM 1987 al $103 $100 $107 $149 $157 $172 $85

European Companies $18 $17 $24 $33 $41 $42 $21 XSEA Brown Boveri* 0 0 0 0 0 0 0 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 0 0 0 0 0 0 0 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 4 4 3 3 MEDL 0 0 0 0 0 0 0 Mietec* 0 0 0 0 0 0 0 Philips* 14 12 18 19 23 27 14 Plessey 0 0 0 0 0 0 0 Ri£a 0 0 0 0 0 0 0 Semikron 0 0 0 0 0 0 0 SGS Thomson* 0 0 0 0 0 0 0 Siemens* 2 1 1 2 4 6 3 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 0 0 0 0 0 0 0 Thomson* 2 4 5 8 10 5 0 Others 0 0 0 0 0 1 1

U.S. Companies $80 $78 $76 $107 $103 $108 $51 AMD* 8 10 13 23 21 24 26 Analog Devices 0 0 0 0 0 0 0 Fairchild* 14 14 10 17 15 19 0 GE Solid State* 2 1 2 0 0 0 0 General Instriunent 0 0 0 0 0 0 0 Harris 10 9 10 15 14 5 0 Hewlett-Packard 0 0 0 0 0 0 0 Intel 7 6 4 1 0 0 0 International Rectifier 0 0 0 0 0 0 0 ITT* 0 0 0 0 0 0 0 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 19 19 18 19 22 15 0

(Continued)

Table B-11 (Continued) European Bipolar Memory Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1986 1987

U.S. Companies (Continued) Motorola 7 9 7 9 2 3 1 National Semiconductor* 3 3 3 5 4 9 9 Powerez* 0 0 0 0 0 0 0 RCA* 0 0 0 0 0 0 0 Siliconix 0 0 0 0 0 0 0 Texas Instruments 9 6 8 16 20 24 10 TRW 0 0 0 0 0 0 0 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 1112 5 9 5 Japanese Companies $5 $5 $7 $9 $13 $22 $13 Fujitsu 0 1 2 3 5 12 8 Hitachi 3 3 3 3 4 5 2 Matsushita 0 0 0 0 0 0 0 Mitsubishi 0 0 0 0 0 0 0 NEC 2 1 2 3 4 5 3 Oki 0 0 0 0 0 0 0 0 0 0 0 0 0 Toshiba 0 0 0 0 0 0 0 0 Others ROW Companies 0 0 0 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 Others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-12 European Bipolar Logic Market Share Estimates (Millions of U.S. Dollars)

1991 199? 1983 1984 1985 1986 1987

al $351 $334 $376 $575 $552 $610 $640

European Companies $139 $121 $99 $147 $153 $177 $222 A.SEA Brown Boveri* 0 0 0 0 0 0 0 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 10 14 22 26 28 29 26 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 0 0 0 0 MEDL 0 0 0 0 0 0 0 Mietec* 0 0 0 0 0 0 0 Philips* 57 49 34 63 63 79 83 Plessey 10 8 8 9 13 16 15 Rifa 6 6 6 9 9 5 5 Semikron 0 0 0 0 0 0 0 SGS Thomson* 14 4 2 11 12 14 14 Siemens* 41 37 23 22 20 27 58 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 0 0 0 0 0 0 15 Thomson* 0 2 3 6 7 5 0 Others 1 1 1 1 1 2 6

U.S. Companies $207 $207 $266 $419 $388 $421 $388 AMD* 15 17 24 32 35 41 83 Analog Devices 0 0 0 0 0 0 0 Fairchild* 35 34 42 45 46 48 0 GE Solid State* 0 0 0 0 0 0 0 General Instrument 0 0 0 0 0 0 0 Harris 2 3 4 5 4 2 0 Hewlett-Packard 0 0 0 0 0 0 0 Intel 1 1 0 19 10 13 8 International Rectifier 0 0 0 0 0 0 0 ITT* 0 0 0 0 0 0 0 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 3 3 6 10 17 31 0

(Continued)

Table B-12 European Bipolar Logic Market Share Estimates pillions of U.S. Dollars)

X99; 19B2 19?? 1984 1985 ;99$ 1997 U.S. Companies (Continued) Motorola 22 22 31 60 65 71 52 National Semiconductor* 35 32 39 53 37 39 85 Powerex* 0 0 0 0 0 0 0 RCA* 0 0 0 0 0 0 0 Siliconiz 0 0 0 0 0 0 0 Texas Instruments 92 93 115 188 162 165 151 TRW 2 2 4 4 4 4 0 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 0 0 1 3 8 7 9 Japanese Companies $5 $6 $11 $9 $11 $12 $30 Fujitsu 0 1 3 2 4 4 18 Hitachi 5 5 8 7 6 6 3 Matsushita 0 0 0 0 0 0 2 Mitsiibishi 0 0 0 0 1 2 3 NEC 0 0 0 0 0 0 2 Oki 0 0 0 0 0 0 2 Toshiba 0 0 0 0 0 0 0 Others 0 0 0 0 0 0, 0

ROW Companies 0 0 0 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 Others 0 0 0 0 0 0 0

^This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-13 Total European MOS Digital Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1986 1987

Total $882 $948 1,227 2,092 1,953 2,280 2,753

European Companies $210 $206 $319 $523 $531 $722 $825 ASEA Brown Boveri* 5 7 7 12 15 19 23 Austria Mikro Systeme* 0 0 0 0 0 0 29 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 6 Eurosil 8 8 8 10 10 14 11 Ferranti 2 7 8 8 4 4 4 Xnmos 1 4 9 25 18 16 20 Matra-Harris 5 12 12 29 30 35 30 MEDL 7 8 11 15 19 17 21 Mietec* 0 0 0 0 0 0 32 Philips* 58 56 91 147 162 255 262 Plessey 10 13 17 23 29 30 31 Rifa 1 1 1 2 2 3 11 Semikron 0 0 0 0 0 0 0 SGS Thomson* 23 27 36 62 65 81 209 Siemens* 49 36 55 88 70 81 103 STC (Stantel)* 0 0 20 25 11 13 5 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 10 4 7 11 11 11 14 Thomson* 30 22 36 60 75 135 0 Others 1 1 1 6 10 8 14 U.S. Companies $551 $572 $639 1,034 $975 1,014 1,221 AMD* 18 24 40 108 101 94 116 Analog Devices 0 0 0 0 0 0 0 Fairchild* 11 10 10 12 13 10 0 4 GE Solid State* 6 4 5 2 7 64 17 10 General Instrument 24 21 20 24 11 10 14 8 14 Harris 8 9 14 0 0 0 0 Hewlett-Packard 0 0 0 136 205 202 201 Intel 131 133 275 0 0 0 0 International Rectifier 0 0 0 33 53 57 ITT* 33 33 70 99 0 0 0 0 0 0 LSI Logic* 40 0 0 0 0 3 2 Monolithic Memories* 0

(Continued)

Table B-13 (Continued) Total Eurcv>ean MOS Digital Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1M£ USl

U.S. Companies (Continued) Motorola 66 67 95 135 133 130 163 National Semiconductor* 35 44 50 75 70 93 121 Powerex* 0 0 0 0 0 0 0 RCA* 14 16 35 58 51 53 0 Siliconix 1 1 2 2 0 6 8 Texas Instruments 86 100 102 176 142 155 193 TRW 0 0 0 0 0 1 0 VLSI Technology* 0 0 0 0 0 0 22 Zilog 19 9 10 13 9 12 17 Others 99 101 91 157 165 156 78 Japanese Companies $121 $170 $269 $535 $447 $538 $657 Fujitsu 9 18 27 53 55 58 84 Hitachi 46 55 90 179 147 153 136 Matsushita 0 0 0 0 0 1 1 Mitsubishi 4 5 13 19 14 26 45 KEC 46 65 93 187 157 199 215 Oki 2 4 15 28 22 25 39 Toshiba 13 22 30 68 51 75 125 Others 1 1 1 1 1 1 12

ROW Companies 0 0 0 0 0 $6 $50 Goldstar* 0 0 0 0 0 2 11 Samsung* 0 0 0 0 0 3 35 Others 0 0 0 0 0 1 4

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-14 Total European MOS Memory Market Share Estimates (Millions of U.S. Dollars)

1991 1982 1983 1984 J995 1986 1987

al $426 $469 $581 $995 $750 $822 $838

European Companies $33 $45 $86 $137 $107 $131 $114 ASEA Brown Boveri* 0 0 0 0 0 0 0 Austria Mikro Systeme* 0 0 0 0 0 0 2 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 2 1 1 0 0 0 0 Ferranti 0 0 0 0 0 0 0 Inmos 1 4 9 25 17 10 7 Matra-Harris 4 8 9 15 13 15 9 MEDL 0 0 0 0 0 2 1 Mietec* 0 0 0 0 0 0 0 Philips* 5 2 2 4 10 7 8 Plessey 0 0 0 0 0 0 0 Rifa 0 0 0 0 0 0 0 Semikron 0 0 0 0 0 0 0 SGS Thomson* 9 7 8 13 15 16 53 Siemens* 8 17 25 38 24 30 33 STC (Stantel)* 0 0 16 18 4 6 0 TAG 0 0 0 0 0 o" 0 Telefunken Electronic* 0 0 0 0 0 0 0 Thomson* 4 6 16 24 24 44 0 Others 0 0 0 0 0 1 1

U.S. Companies $289 $281 $278 $457 $346 $322 $285 AMD* 15 16 20 56 45 38 27 Analog Devices 0 0 0 0 0 0 0 Pairchild* 3 2 2 2 2 2 0 GE Solid State* 4 2 1 1 1 2 7 General Instriunent 4 5 3 3 2 0 0 Harris 5 5 5 7 2 10 6 Hewlett-Packard 0 0 0 0 0 0 0 Intel 73 70 71 95 85 89 98 International Rectifier 0 0 0 0 0 0 0 ITT* 12 12 0 0 0 0 0 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 0 0 0 0 0 0 0

(Continued)

Table B-14 (Continued) Total European MOS Memory Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 MM 1M2

U.S. Companies (Continued) Motorola 33 33 42 45 27 11 12 National Semiconductor* 20 19 13 17 14 14 12 Powerex* 0 0 0 0 0 0 0 RCA* 2 3 6 9 12 7 0 Siliconix 0 0 0 0 0 0 0 Texas Instruments 70 70 72 136 109 116 108 TRW 0 0 0 0 0 0 0 VLSI Technology* 0 0 0 0 0 0 1 Zilog 0 0 0 0 0 0 0 Others 48 44 43 86 47 33 14 Japanese Companies $104 $143 $217 $401 $297 $363 $394 Fujitsu 7 14 18 49 46 50 68 Hitachi 42 48 74 143 109 115 83 Matsushita 0 0 0 0 0 1 1 Mitsubishi 4 5 12 16 11 22 39 NEC 38 54 76 111 77 106 100 Oki 2 4 12 23 16 13 26 Toshiba 11 18 25 59 38 56 77 Others 0 0 0 0 0 0 0

ROW Companies 0 0 0 0 0 $6 $45 Goldstar* 0 0 0 0 0 2 9 Samsung* 0 0 0 0 0 3 32 Others 0 0 0 0 0 1 4

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-15 Total European MOS Microcomponent Market Share Estimates (Millions of U.S. Dollars)

19?1 13M 1993 J.9?4 1985 1986 1987 al $149 $168 $239 $465 $485 $578 $794

European Companies $17 $27 $41 $86 $98 $147 $168 ASEA Brown Boveri* 0 0 0 0 0 0 0 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 1 1 1 1 2 2 Ferranti 0 2 2 1 0 0 0 Inmos 0 0 0 0 2 6 13 Matra-Harris 1 4 1 9 11 14 15 MEDL 0 0 0 0 0 0 1 Mietec* 0 0 0 0 0 0 0 Philips* 3 4 14 30 33 50 54 Plessey 0 0 0 0 0 0 0 Rifa 0 0 0 0 0 0 0 Semikron 0 0 0 0 0 0 0 SGS Thomson* 6 8 10 16 13 16 60 Siemens* 3 2 5 14 13 17 23 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0' 0 Telefunken Electronic* 0 0 0 0 0 0 0 Thomson* 4 6 8 15 25 42 0 Others 0 0 0 0 0 0 0

U.S. Companies $119 $123 $161 $278 $276 $307 $448 AMD* 2 5 15 43 30 28 36 Analog Devices 0 0 0 0 0 0 0 Fairchild* 4 4 3 4 3 1 0 GE Solid State* 0 0 0 1 3 4 12 General Instrument 5 4 3 4 3 2 2 Harris 0 0 0 0 0 4 8 Hewlett-Packard 0 0 0 0 0 0 0 Intel 52 55 56 96 105 100 162 International Rectifier 0 0 0 0 0 0 0 ITT* 1 2 3 5 10 12 10 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 0 0 0 0 0 0 0

(Cont:Lnued )

Table B-15 (Continued) Total Eur(q>ean MOS Microcomponent Market Share Estimates (Millions of U.S. Dollars)

1991 19?Z l,Sg3 1994 1985 1986 19?7

U.S. Companies (Continued) Motorola 13 14 21 38 47 59 98 National Semiconductor* 5 10 20 30 29 39 54 Powerex* 0 0 0 0 0 0 0 RCA* 1 1 8 16 8 16 0 Siliconix 0 0 0 0 0 0 0 Texas Instrxunents 7 10 11 15 13 17 38 TRW 0 0 0 0 0 0 0 VLSI Technology* 0 0 0 0 0 0 0 Zilog 19 9 10 13 9 12 17 Others 10 9 11 13 16 13 11 Japanese Companies $13 $18 $37 $101 $111 $124 $178 Fujitsu 2 3 6 1 1 2 4 Hitachi 3 4 11 27 29 31 44 Matsushita 0 0 0 0 0 0 0 Mitsubishi 0 0 1 3 3 4 6 NEC 6 8 12 60 64 70 90 Oki 0 0 3 5 6 8 12 Toshiba 1 2 3 4 7 8 21 Others 1 1 1 1 1 1 1

ROW Companies 0 0 0 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 Others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-16 European MOS Logic Market Share Estimates (Millions of U.S. Dollars)

1981 198? 1983 1984 1985 1986 1987

;al $307 $311 $407 $632 $718 $880 1,121

European Companies $160 $134 $192 $300 $327 $444 $543 ASEA Brown Boveri* 5 7 7 12 15 19 23 Austria Mikro Systeme* 0 0 0 0 0 0 27 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 6 Eurosil 6 6 6 9 9 12 9 Ferranti 2 5 6 7 4 4 4 Ixunos 0 0 0 0 0 0 0 Matra-Harris 0 0 2 5 6 6 6 MEDL 7 8 11 15 19 15 19 Mietec* 0 0 0 0 0 0 32 Philips* 50 50 75 113 119 198 200 Plessey 10 13 17 23 29 30 31 Rifa 1 1 1 2 2 3 11 Semikron 0 0 0 0 0 0 0 SGS Thomson* 8 12 18 33 37 49 96 Siemens* 38 17 25 36 33 34 47 STC (Stantel)* 0 0 4 7 7 7 5 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 10 4 7 11 11 11 14 Thomson* 22 10 12 21 26 49 0 Others 1 1 1 6 10 7 13

U.S. Companies $143 $168 $200 $299 $352 $385 $488 AMD* 1 3 5 9 26 28 53 Analog Devices 0 0 0 0 0 0 0 Fairchild* 4 4 5 6 7 7 0 GE Solid State* 2 2 4 0 0 1 45 General Instrument 15 12 14 17 12 8 9 Harris 3 4 5 7 6 0 0 Hewlett-Packard 0 0 0 0 0 0 0 Intel 6 8 9 14 12 12 15 International Rectifier 0 0 0 0 0 0 0 ITT* 20 19 30 48 47 58 89 LSI Logic* 0 0 0 0 0 0 40 Monolithic Memories* 0 0 0 0 3 2 0

(Continued)

Table B-16 (Continued) European MOS Logic Market Share Estimates (Millions of U.S. Dollars)

1981 1962 1983 1984 1985 1986 1987

U.S. Companies (Continued) Motorola 20 20 32 52 59 60 53 National Semiconductor* 10 15 17 28 27 40 55 Powerex* 0 0 0 0 0 0 0 RCA* 11 12 21 33 31 30 0 Siliconix 11 2 2 0 6 8 Texas Instruments 9 20 19 25 20 22 47 TRW 0 0 0 0 0 10 VLSI Technology* 0 0 0 0 0 0 21 Zilog 0 0 0 0 0 0 0 Others 41 48 37 58 102 110 53 Japanese Companies $4 $9 $15 $33 $39 $51 $85 Fujitsu 0 1 3 3 8 6 12 Hitachi 13 5 9 9 7 9 Matsushita 0 0 0 0 0 0 0 Mitsubishi 0 0 0 0 0 0 0 NEC 2 3 5 16 16 23 25 Oki 0 0 0 0 0 4 1 Toshiba 12 2 5 6 11 27 OtherROW Companies s 0 0 0 0 0 0 1$15 Goldstar* 0 0 0 0 0 0 2 Samsung* 0 0 0 0 0 0 3 Others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-17 Total European Linear Market Share Estimates (Millions of U.S. Dollars)

1951 1992 1993 1984 1995 1986 1987

:al $556 $606 $613 $818 $894 1,026 1,215

European Companies $282 $297 $309 $356 $390 $506 $629 ASEA Brown Boveri* 0 0 0 0 0 0 0 Austria Mikro Systeme* 0 0 0 0 0 0 3 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 9 14 12 18 18 19 21 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 4 2 2 2 MEDL 0 0 0 0 0 0 0 Mietec* 0 0 0 0 0 0 0 Philips* 135 135 130 122 136 196 259 Plessey 13 13 12 13 16 19 23 Rifa 0 0 0 0 0 3 16 Semikron 0 0 0 0 0 0 0 SGS Thomson* 40 49 48 64 76 98 174 Siemens* 32 26 43 48 51 72 80 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 25 29 28 35 35 38 49 Thomson* 27 30 35 51 55 58 0 Others 1 1 1 1 1 1 2

U.S. Companies $265 $300 $289 $443 $487 $500 $536 AMD* 5 7 6 7 17 13 10 Analog Devices 26 27 28 44 51 65 77 Fairchild* 26 28 16 23 21 18 0 GE Solid State* 8 10 9 18 15 14 28 General Instrument 3 3 3 4 4 2 2 Harris 5 5 4 6 5 18 26 Hewlett-Packard 0 0 0 0 0 0 0 Intel 0 0 0 0 0 0 0 International Rectifier 0 0 0 0 0 0 0 ITT* 25 27 28 34 38 46 33 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 3 5 6 7 0 0 0

(Continued)

Table B-17 (Continued) Total Eurcqjean Linear Market Share Estimates (Millions of U.S. Dollars)

1981 1962 12fil 1984 1985 19B6 1987

U.S. Companies (Continued) Motorola 40 44 46 61 65 75 86 National Semiconductor* 46 59 59 100 104 91 120 Powerex* 0 0 0 0 0 0 0 RCA* 12 12 11 15 13 11 0 Siliconix 9 10 10 12 17 16 17 Texas Instruments 52 57 56 95 110 104 95 TRW 3 3 4 6 5 3 0 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 2 3 3 11 22 24 42 Japanese Companies $9 $9 $15 $19 $17 $20 $50 Fujitsu 0 0 0 0 0 0 0 Hitachi 2 3 3 4 4 4 5 Matsushita 2 2 2 3 3 4 5 Mitsubishi 0 0 - 1 1 0 0 0 NEC 3 4 8 a 8 7 23 Oki 0 0 0 0 0 0 0 Toshiba 2 0 1 3 2 5 17 Others 0 0 0 0 0 0 0

ROW Companies 0 0 0 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-18 Total European Discrete Market Share Estimates Opinions of U.S. Dollars)

1991 1982 1983 1994 3.985 1986 1987

al $995 1,011 $866 $963 $954 1,153 1,384

European Companies $571 $579 $518 $560 $575 $711 $839 XSEA Brown Boveri* 4 5 4 5 5 7 63 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 22 22 18 22 24 26 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 9 10 12 15 15 14 16 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 0 0 0 0 MEDL 9 10 10 11 11 15 16 Mietec* 0 0 0 0 0 0 0 Philips* 176 167 164 179 189 231 290 Plessey 0 0 0 0 0 0 0 Rifa 0 0 0 0 0 0 0 Semikron 22 24 25 27 30 43 49 S6S Thomson* 39 35 34 43 48 50 140 Siemens* 92 118 96 85 85 138 178 STC (Stantel)* 0 0 4 2 1 0 0 TAG 17 17 14 16 12 14. 16 Telefunken Electronic* 74 75 47 54 53 66 65 Thomson* 85 75 78 85 91 95 0 Others 22 21 12 16 11 12 6

U.S. Companies $407 $412 $325 $375 $346 $395 $478 AMD* 0 0 0 0 0 0 0 Analog Devices 0 0 0 0 0 0 0 Fairchild* 20 20 10 10 7 7 0 GE Solid State* 22 23 19 13 9 6 23 General Instrument 17 17 13 13 12 15 16 Harris 0 0 0 0 0 0 0 Hewlett-Packard 8 9 6 7 5 6 7 Intel 0 0 0 0 0 0 0 International Rectifier 25 26 24 30 31 37 53 ITT* 72 75 65 84 90 99 111 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 0 0 0 0 0 0 0

(Continued)

Table B-18 (Continued) Total European Discrete Market Share Estimates Opinions of U.S. Dollars)

1981 1982 1331 19B4 1985 ISM IMl

U.S. Companies (Continued) Motorola 100 106 97 117 121 141 170 National Semiconductor* 10 8 6 3 2 2 10 Powerex* 12 12 9 10 10 12 19 RCA* 29 29 13 14 13 15 0 Siliconix 9 9 8 11 7 11 13 Texas Instruments 51 39 29 29 23 25 28 TRW 7 7 5 6 4 4 2 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 25 32 21 28 12 15 26 Japanese Companies $17 $20 $23 $28 $33 $47 $67 Fujitsu 1110 0 0 0 Hitachi 4 4 4 6 6 6 8 Matsushita 3 3 3 4 4 2 15 Mitsubishi 0 11112 2 NEC 3 5 5 4 4 17 5 Oki 0 0 0 0 0 0 0 Toshiba 2 2 6 8 13 19 33 Others 4 4 3 5 5 14

ROW Companies 0 0 0 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 Others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-19 European Transistor Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1986 1987

Total $463 $468 $408 $450 $463 $540 $655

European Companies $262 $261 $238 $260 $276 $303 $357 ASEA Brown Boveri* 0 0 0 0 0 0 1 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 7 6 6 7 8 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 4 5 6 8 8 5 6 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 0 0 0 0 MEDL 2 2 2 2 2 3 4 Mietec* 0 0 0 0 0 0 0 Philips* 103 100 99 107 115 131 175 Plessey 0 0 0 0 0 0 0 Rifa 0 0 0 0 0 0 0 Semikron 0 0 0 0 0 0 0 SGS Thomson* 39 35 34 43 48 50 65 Siemens* 40 55 43 40 41 58 88 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 24 26 17 19 18 20 16 Thomson* 32 23 25 27 29 29 0 Others 11 9 6 7 7 7 2

U.S. Companies $190 $194 $154 $173 $169 $207 $252 AMD* 0 0 0 0 0 0 0 Analog Devices 0 0 0 0 0 0 0 Fairchild* 10 11 5 5 3 3 0 GE Solid State* 8 8 7 4 3 4 15 General Instrument 0 0 0 0 0 0 0 Harris 0 0 0 0 0 0 0 Hewlett-Packard 5 5 3 4 3 3 2 Intel 0 0 0 0 0 0 0 International Rectifier 4 4 5 7 9 11 16 ITT* 13 15 15 19 22 33 39 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 0 0 0 0 0 0 0

(Continued)

Table B-19 (Continued) Eun^^ean Transistor Market Share Estimates (Millions of U.S. Dollars)

19B1 19fl2 19B3 1984 1985 1986 1987

U.S. Companies (Continued) Motorola 56 62 58 70 79 92 112 National Semiconductor* 10 8 6 3 2 2 7 Powerex* 1 1 1 1 1 1 6 RCA* 23 23 9 10 9 11 0 Siliconiz 9 9 8 11 7 11 13 Texas Instruments 35 34 27 27 21 25 28 TRW 5 5 4 5 4 4 2 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 11 9 6 7 6 7 12 Japanese Companies $11 $13 $16 $17 $18 $30 $46 Fujitsu 1 1 1 0 0 0 0 Hitachi 2 2 2 2 2 1 1 Matsushita 2 2 2 2 2 1 14 Mitsubishi 0 0 0 0 0 2 2 NEC 2 4 4 3 3 12 3 Oki 0 0 0 0 0 0 0 Toshiba 2 2 6 8 9 13 22 Others 2 2 1 2 2 1 4

ROW Companies 0 0 0 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-20 Eur(^)ean Diode Market Share Estimates (Millions of U.S. Dollars)

1991 1982 1983 3.984 X985 1986 1987

:al $384 $391 $327 $358 $342 $432 $431

European Companies $210 $213 $181 $186 $186 $265 $252 ASEA Brown Boveri* 0 0 0 0 0 0 13 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 9 10 7 8 8 10 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 5 5 6 7 7 9 10 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 0 0 0 0 MEDL 2 3 3 3 3 4 4 Mietec* 0 0 0 0 0 0 0 Philips* 67 62 60 65 65 91 98 Plessey 0 0 0 0 0 0 0 Rifa 0 0 0 0 0 0 0 Semikron 8 9 9 10 11 17 19 SGS Thomson* 0 0 0 0 0 0 31 Siemens* 36 45 36 29 27 53 48 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 36 35 19 21 21 31 27 Thomson* 42 38 39 41 42 47 0 Others 5 6 2 2 2 3 2

U.S. Companies $172 $176 $144 $170 $150 $157 $175 AMD* 0 0 0 0 0 0 0 Analog Devices 0 0 0 0 0 0 0 Fairchild* 10 9 5 5 4 4 0 GE Solid State* 6 8 6 3 2 0 1 General Instrument 17 17 13 13 12 15 16 Harris 0 0 0 0 0 0 0 Hewlett-Packard 3 4 3 3 2 3 5 Intel 0 0 0 0 0 0 0 International Rectifier 18 19 17 20 19 15 18 ITT* 50 53 50 65 68 66 72 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 0 0 0 0 0 0 0

(Continued)

Table B-20 (Continued) European Diode Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1986 2M1

U.S. Companies (Continued) Motorola 36 37 33 39 32 38 43 National Semiconductor* 0 0 0 0 0 0 3 Powerex* 5 5 4 5 5 7 3 RCA* 0 0 0 0 0 10 Siliconix 0 0 0 0 0 0 0 Texas Instruments 14 3 0 0 0 0 0 TRW 2 2 110 0 0 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 11 19 12 16 6 8 14 Japanese Companies $2 $2 $2 $2 $6 $10 $4 Fujitsu 0 0 0 0 0 0 0 Hitachi 0 0 0 0 0 0 0 Matsushita 0 0 0 0 0 11 Mitsubishi 0 0 0 0 0 0 0 NEC 11111 5 1 Oki 0 0 0 0 0 0 0 Toshiba 0 0 0 0 4 4 2 ROOtherW Companies s 01111 0 0 0 1 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-21 European Thyristor Market Share Estimates (Millions of U.S. Dollars)

1991 19?? 1993 1994 1985 199? 1997

Total $103 $105 $91 $103 $100 $125 $183

European Companies $73 $77 $70 $75 $77 $102 $152 ASEX Brown Boveri* 2 3 2 2 2 3 41 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 3 3 3 4 5 14 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 0 0 0 0 0 0 0 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 0 0 0 0 MEDL 3 3 3 3 3 8 8 Mietec* 0 0 0 0 0 0 0 Philips* 5 4 4 5 6 6 8 Plessey 0 0 0 0 0 0 0 Rifa 0 0 0 0 0 0 0 Semikron 8 9 10 10 11 13 15 SGS Thomson* 0 0 0 0 0 0 20 Siemens* 14 15 14 13 13 19 26 STC (Stantel)* 0 0 0 0 0 0 0 TAG 15 16 13 14 12 14 16 Telefunken Electronic* 12 12 10 12 12 11 17 Thomson* 10 11 10 11 12 13 0 Others 1 1 1 1 1 1 1

U.S. Companies $29 $27 $20 $25 $20 $19 $28 AMD* 0 0 0 0 0 0 0 Analog Devices 0 0 0 0 0 0 0 Fairchild* 0 0 0 0 0 0 0 GE Solid State* 6 5 4 4 3 0 1 General Instrument 0 0 0 0 0 0 0 Harris 0 0 0 0 0 0 0 Hewlett-Packard 0 0 0 0 0 0 0 Intel 0 0 0 0 0 0 0 International Rectifier 3 3 2 3 3 6 10 ITT* 0 0 0 0 0 0 0 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 0 0 0 0 0 0 0

(Continued)

Table B-21 (Continued) Eurc4>ean Thyristor Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 ^99^ IMl

U.S. Companies (Continued) Motorola 6 5 4 5 5 6 7 National Semiconductor* 0 0 0 0 0 0 0 Powerex* 6 6 4 4 4 4 10 RCA* 6 6 4 4 4 3 0 Siliconiz 0 0 0 0 0 0 0 Texas Instruments 111110 0 TRW 0 0 0 0 0 0 0 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 1114 0 0 0 Japanese Companies $1 $1 $1 $3 $3 $4 $3 Fujitsu 0 0 0 0 0 0 0 Hitachi 1112 2 2 3 Matsushita 0 0 0 0 0 0 0 Mitsubishi 0 0 0 0 0 0 0 NEC 0 0 0 0 0 0 0 Oki 0 0 0 0 0 0 0 Toshiba 0 0 0 0 0 2 0 OtherROW Companies s 0 0 0 011 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-22 Eun^>ean Other Discrete Market Share Estimates (Millions of U.S. Dollars)

1S31 m2 1983 1984 1995 1986 1997 :al $45 $47 $40 $52 $49 $56 $115

European Companies $26 $28 $29 $39 $36 $41 $78 A.SEA Brown Boveri* 2 2 2 3 3 4 8 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 3 3 2 3 3 2 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 0 0 0 0 0 0 0 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 0 0 0 0 MEDL 2 2 2 3 3 0 0 Mietec* 0 0 0 0 0 0 0 Philips* 1 1 1 2 3 3 9 Plessey 0 0 0 0 0 0 0 Rifa 0 0 0 0 0 0 0 Semikron 6 6 6 7 8 13 15 SGS Thomson* 0 0 0 0 0 0 24 Siemens* 2 3 3 3 4 8 16 STC (Stantel)* 0 0 4 2 1 0 0 TAG 2 1 1 2 0 0 0 Telefunken Electronic* 2 2 1 2 2 4 5 Thomson* 1 3 4 6 8 6 0 Others 5 5 3 6 1 1 1

U.S. Companies $16 $15 $7 $7 $7 $12 $23 AMD* 0 0 0 0 0 0 0 Analog Devices 0 0 0 0 0 0 0 Fairchild* 0 0 0 0 0 0 0 GE Solid State* 2 2 2 2 1 2 6 General Instrument 0 0 0 0 0 0 0 Harris 0 0 0 0 0 0 0 Hewlett-Packard 0 0 0 0 0 0 0 Intel 0 0 0 0 0 0 0 International Rectifier 0 0 0 0 0 5 9 ITT* 9 7 0 0 0 0 0 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 0 0 0 0 0 0 0

(Continued)

Table B-22 Eim^>ean Other Discrete Market Share Estimates (Millions of U.S. Dollars)

1981 1982 1983 1984 1985 1986 1997

U.S. Companies (Continued) Motorola 2 2 2 3 5 5 8 National Semiconductor* 0 0 0 0 0 0 0 Powerex* 0 0 0 0 0 0 0 RCA* 0 0 0 0 0 0 0 Siliconiz 0 0 0 0 0 0 0 Texas Instruments 1 1 1 1 1 0 0 TRW 0 0 0 0 0 0 0 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 2 3 2 1 0 0 0 Japanese Companies $3 $4 $4 $6 $6 $3 $14 Fujitsu 0 0 0 0 0 0 0 Hitachi 1 1 1 2 2 3 4 Matsushita 1 1 1 2 2 0 0 Mitsubishi 0 1 1 1 1 0 0 NEC 0 0 0 0 0 0 1 Oki 0 0 0 0 0 0 0 Toshiba 0 0 0 0 0 0 9 others 1 1 1 1 1 0 0

ROW Companies 0 0 0 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

Table B-23 Eurc^}ean Optoelectronic Market Share Estimates (Millions of U.S. Dollars)

1981 1992 1993 1984 1985 I9?e 1997

al $154 $168 $181 $208 $210 $291 $278

European Companies $65 $77 $89 $102 $119 $165 $178 ASEA Brown Boveri* 1 1 3 4 5 6 5 Austria Mikro Systeme* 0 0 0 0 0 0 0 Brown Boveri* 0 0 0 0 0 0 0 ES2* 0 0 0 0 0 0 0 Eurosil 0 0 0 0 0 0 0 Ferranti 0 0 0 0 0 0 0 Inmos 0 0 0 0 0 0 0 Matra-Harris 0 0 0 0 0 0 0 MEDL 0 0 0 0 0 0 0 Mietec* 0 0 0 0 0 0 0 Philips* 17 17 17 16 23 32 22 Plessey 1 1 1 6 8 13 15 Rifa 0 0 0 0 0 2 2 Semikron 0 0 0 0 0 0 0 SGS Thomson* 0 0 0 0 0 1 0 Siemens* 25 31 34 35 40 46 53 STC (Stantel)* 0 0 0 0 0 0 0 TAG 0 0 0 0 0 0 0 Telefunken Electronic* 16 20 27 33 34 49 66 Thomson* 0 0 0 0 2 4 0 Others 5 7 7 8 7 12 15

U.S. Companies $86 $87 $85 $97 $78 $101 $72 AMD* 0 0 0 0 0 0 0 Analog Devices 0 0 0 0 0 0 0 FairChiId* 6 5 7 3 3 0 0 GE Solid State* 3 3 3 10 6 7 7 General Instrument 8 9 8 9 9 10 11 Harris 0 0 0 0 0 0 0 Hewlett-Packard 23 23 25 34 34 40 10 Intel 0 0 0 0 0 0 0 International Rectifier 0 0 0 0 0 0 0 ITT* 1 0 0 0 0 0 0 LSI Logic* 0 0 0 0 0 0 0 Monolithic Memories* 0 0 0 0 0 0 0

(Cont:Lnued )

Table B-23 (Continued) Eurc^>ean Optoelectronic Market Share Estimates (Millions of U.S. Dollars)

1981 ISM 1983 1984 1985 1986 1987

U.S. Companies (Continued) Motorola 3 4 4 3 3 5 6 National Semiconductor* 2 3 2 1 1 2 0 Powerez* 0 0 0 0 0 0 0 RCA* 1 1 1 1 3 6 0 Siliconix 0 0 0 0 0 0 0 Texas Instriunents 24 23 20 18 11 15 15 TRW 4 5 4 5 8 8 9 VLSI Technology* 0 0 0 0 0 0 0 Zilog 0 0 0 0 0 0 0 Others 11 11 11 13 0 8 14 Japanese Companies $3 $4 $7 $9 $13 $25 $28 Fujitsu 0 0 0 0 0 0 0 Hitachi 1 1 2 2 2 3 3 Matsushita 1 1 2 2 2 2 3 Mitsubishi 0 0 0 0 1 3 3 NEC 0 1 1 1 1 1 1 Oki 0 0 0 0 0 0 0 Toshiba 1 1 2 3 6 11 13 Others 0 0 0 1 1 5 5

ROW Companies 0 0 0 0 0 0 0 Goldstar* 0 0 0 0 0 0 0 Samsung* 0 0 0 0 0 0 0 Others 0 0 0 0 0 0 0

*This table is to be read in conjunction with footnotes given at the end of this section.

Source: Dataquest September 1988 0588-07

FOOTNOTES

1. ASEA Brown Boveri revenue includes Brown Boveri revenue from 1987 onward

2. Austria Mikro Systems revenue up to 1986 included in U.S. Others

3. Brown Boveri revenue included in ASEA Brown Boveri revenue from 1987 onward

4. European Silicon Structures revenue up to 1986 included in European Others

5. Mietec revenue up to 1986 included in European Others

6. Philips revenue includes Signetics Corporation revenue

7. SGS Thomson revenue includes Thomson revenue from 1987 onward

8. Siemens revenue includes Litroniz revenue from 1983 onward

9. STC revenue included in ITT revenue from 1977 through 1982

10. Telefunken Electronic formerly known as AEG-Telefunken

11. Thomson revenue included in SGS Thomson revenue from 1987 onward. Also, Thomson revenue includes revenue from Thomson-CSF, Thomson-EFCIS, and Eurotechnigue groups onward, and includes Mostek revenue from 1986 onward

12. AMD revenue includes Monolithic Memories revenue from 1987 onward

13. Fairchild revenue included in National Semiconductor revenue from 1987 onward

14. GE Solid State revenue includes RCA revenue from 1987 onward

15. ITT revenue includes STC revenue from 1977 through 1982

16. LSI Logic revenue up to 1986 included in U.S. Others

17. Monolithic Memories revenue included in AMD revenue from 1987 onward

18. National Semiconductor revenue includes Fairchild revenue from 1987 onward

19. Powerez revenue includes Westinghouse revenue from 1986 onward

(Continued)

FOOTNOTES (Continued)

20. RCA revenue included in GE Solid State revenue from 1987 onward

21. VLSI Technology revenue up to 1986 included in U.S. Others

22. Goldstar revenue up to 1986 included in Total Rest of World

23. Samsung revenue up to 1986 included in Total Rest of World

LLuropean Semiconductor Market Share Estimates Final 1989 »

Final 1989 European Semiconductor Market Share Estimates

European Components Group

INTRODUCTION This booklet contains final estimates of semiconductor market shares in the European market for calendar year 1989. It is intended as reference material, with more detailed analysis to follow in the form of Research Newsletters.

SUMMARY

Figure 1 shows the European semiconductor market share by vendor base from 1978 to 1989. The North American vendors' share of the semiconductor market in Europe has been declining, while the Japanese vendors' share is rising year on year. The European vendors maintained a steady market share in their own home territory until 1987, but they too are beginning to lose their grip. This is in part due to the fact that, with the exception of Siemens, the European vendors (Philips, SGS-Thomson, plus the next sixteen largest) have no significant DRAM revenue. Since 1986 we have also seen Korean, and now Taiwanese, companies beginning to make an impact on the competitive scene in Europe. Figure 2 shows the worldwide semiconductor market share by vendor base for the same period. It was a watershed year in 1989 in the European semiconductor market. Philips, which has held number 1 position over the past decade, was almost toppled by Siemens. Contrary to popular belief, Siemens' growth did not come from DRAMs alone; high growth also occurred in its MOS logic, analog and discrete sales. Siemens rose from position 5 to position 2 and hence displaced SGS-Thomson, Motorola, and Texas Instruments into third, fourth and fifth places respectively. Another fundamental change was the brand new entry in the top 10 of Hitachi. Yet again the contributory factors behind this growth are DRAMs in part, but also the fact that the Japanese have been diversifying away from memory products. NEC managed to regain its position over Toshiba in Europe, this time due to declining prices of DRAMs which affected Toshiba more than NEC. In integrated circuits, the most spectacular result is that Siemens in 1989 moved up seven positions to become Europe's number 1 integrated circuit vendor, displacing Philips into second position. Texas Instruments was the third largest IC supplier, followed by SGS-Thomson. The rest of the vendor positioning remained the same, all falling by one position due to displacement by Siemens. The exceptions were Toshiba and AMD, which held their ninth and tenth positions in the IC rankings. With an average market growth of 17 percent the only other rising star was SGS-Thomson with 18.4 percent growth; this, however, was mainly due to its acquisition of Inmos. In bipolar technology both AMD and National Semiconductor moved their position up by one, although Texas Instruments is still the clear leader. In MOS technology, Intel remained in the number 1 slot with its leadership in MOS microprocessors. In MOS memory, Siemens became a clear leader, displacing TI into second position, and Samsung became the fifth largest vendor. In analog ICs, Philips, SGS-Thomson and National Semiconductor remained as the three leading suppliers, followed by Siemens. In discrete there was no change in the top five vendors, with Philips holding the number 1 position followed by Motorola, SGS-Thomson, Siemens and ITT. International Rectifier moved up two positions to number 6. In optoelectronics Hewlett-Packard took over the number 1 slot from Telefunken Electronic, which fell two places to number 3; Siemens remained at number 2.

TABLE OF CONTENTS Page Figure European Semiconductor Market Share by Vendor Base 4 Figure Worldwide Semiconductor Market Share by Vendor Base 4 Table 1 European Companies Worldwide Semiconductor Market Share Rankings 5 Table 2 European Semiconductor Market Share Rankings 6 Table 3 European Integrated Circuit Market Share Rankings 8 Table 4 European Bipolar Digital IC Market Share Rankings 10 Table 5 European Bipolar TTL Market Share Rankings 11 Table 6 European Bipolar ECL Market Share Rankings 12 Table 7 European Bipolar Memory Market Share Rankings 13 Table 8 European Bipolar Logic Circuit Market Share Rankings 14 Table 9 European Bipolar ASIC Market Share Rankings 15 Table 10 European Bipolar Standard Logic Market Share Rankings 16 Table 11 European Bipolar Other Logic Market Share Rankings 17 Table 12 European Digital MOS IC Market Share Rankings 18 Table 13 European NMOS IC Market Share Rankings 20 Table 14 European CMOS IC Market Share Rankings 21 Table 15 European BiCMOS IC Market Share Rankings 23 Table 16 European Other MOS IC Market Share Rankings 24 25 Table 17 European MOS Memory Market Share Rankings Eiuropean MOS Microcomponent Market Share Rankings 26 Table 18 European MOS Logic Market Share Rankings 27 Table 19 European MOS ASIC Market Share Rankings 29 Table 20 European MOS Standard Logic Market Share Rankings 30 Table 21 European Other MOS Logic Market Share Rankings 31 Table 22 European Total Analog Market Share Rankings 32 Table 23 European Monolithic Analog Market Share Rankings 34 Table 24 European Hybrid Analog Market Share Rankings 36 Table 25 European Total Discrete Market Share Rankings 37 Table 26 European Transistor Market Share Rankings 39 Table 27 European Diode Market Share Rankings 40 Table 28 European Thyristor Market Share Rankings 41 Table 29 European Other Discrete Market Share Rankings 42 Table 30 European Optoelectronic Market Share Rimkings 43 Table 31 to the Tables 44 Footnotes Notes to theTable s Column 1 shows market share ranking position in 1988 Column 2 shows market share ranking position in 1989 Column 3 shows the change in ranked position between 1988 and 1989 Colimin 4 shows ranked company's name Column 5 Column 6 shows company's 1988 revenue Column 7 shows company's 1989 revenue Column 8 shows annual growth in revenue in 1989 from 1988 Column 9 shows cumulative market share revenue in 1989 Column 10 shows percentage market share of TAM in 1989 shows cumulative percentage market share of TAM in 1989 Each of the tables also gives a summary showing the sum of all revenues split by vendor regional base. This gives a final estimate for the TAM in each featured product category. TAM = Toal Available Market

Figure 1 European Semiconductor Market Share by Vendor Base Percent of Market 60

40 _.. .,

,,„,- 20 "• —-•.•

0 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 European 45.5 43.3 40.4 42.2 40.9 40.3 35.8 38.3 42 42.7 37.6 36.5 North American 52 53.7 55.7 52.5 52.3 49.8 51.5 50.4 45.9 43.2 43.2 41.3 Japanese ZS 3 3.9 5.3 6.8 9.9 12.7 11.3 12 13.3 17.3 19.8 Asia/PadlkVROW 0 0 0 0 0 0 0 0 0.1 0.8 1.9 2.4 Total Market $M 2.339 3,018 3,686 3,041 3,167 3,370 4,805 4.720 5.532 6,355 8,491 9,755 Sum of Percent 100 100 100 100 100 100 100 100 100 100 100 100

European North American Japanese Asla/PadHc/ROW

Source: Dataquest (June 1990) Figure 2 Worldwide Semiconductor Market Share by Vendor Base Percent of Market

•

1978 1979 1980 19S1 1962 1983 1984 1985 1986 1987 1988 1989 European 16.1 16.1 15.2 12.9 12.6 11.3 11.1 11.7 11.2 11 9.7 9.5 North American 55.3 57.9 57.2 51.4 51.4 49 48.4 45.4 41.5 39 36.5 34.9 Japanese 2a4 25.8 27.4 35.4 35.3 38.8 39.7 41.7 45.9 48.2 51 52.1 Aaia/PadTK^ROW 0.2 0.2 0.2 0.3 0.7 0.9 0.8 1.2 1.4 1.8 za 3.5 Total Maricat$li4 8.963 11,106 14.098 14.801 15,231 19,537 28,825 24,341 30,834 38,251 50,859 57,213

European North American Japanese Asla/PadRc/ROW

Source: Dataquest (June 1990)

Table 1 1989 European Companies Worldwide Semiconductor Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1988 1989 Annual Market 1988 1989 Change Sales Sales Growth Share Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) (Percent)

10 10 0 Philips 1,738 1,716 (1) 3.0 12 13 (1) SGS-Thomson 1,087 1,301 20 2.3 20 16 4 Siemens 784 1,194 52 2.1 31 30 1 Telefiinken Electronic 289 299 3 0.5 32 34 (2) Plessey Semiconductors 284 240 (15) 0.4 62 59 3 Semikron 91 95 4 0.2 67 64 3 Matra MHS 71 85 20 0.1 72 68 4 MEDL 51 60 18 0.1 79 71 8 Austria Mikro Systeme 44 56 27 0.1 71 73 (2) Ericsson Components 52 54 4 0.1 81 77 4 Mietec 42 52 24 0.1 143 79 64 ABB-EXYS 0 50 NA 0.1 117 82 35 TMS 0 45 NA 0.1 53 88 (35) ABB-HAFO 113 37 (67) 0.1 92 98 (6) Eurosil Electronic 29 30 3 0.1 97 100 (3) Fagor Electrotecnica 27 29 7 0.1 100 109 (9) TAG 23 22 (4) 0.0 101 115 (14) STC Components 22 19 (14) 0.0 107 116 (9) European Silicon Structures 13 18 38 0.0 55 0 Inmos 110 0 (100) NA = Not Applicable Source: Dataquest (June 1990)

Table 2 1989 European Semiconductor Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum ilank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Philips 1,018 964 (5.3) 964 9.9 9.9 5 2 3 Siemens 569 937 64.7 1,901 9.6 19.5 2 3 (1) SGS-Thomson* 652 751 15.2 2,652 7.7 27.2 4 4 0 Motorola 616 658 6.8 3,310 6.7 33.9 3 5 (2) Texas Instruments 647 648 0.2 3,958 6.6 40.6 6 6 0 Intel 485 530 9.3 4,488 5.4 46.0 8 7 1 NEC 387 429 10.9 4,917 4.4 50.4 7 8 (1) Toshiba 390 423 8.5 5,340 4.3 54.7 9 9 0 National Semiconductor 386 381 (1.3) 5,721 3.9 58.6 12 10 2 Hitachi 246 291 18.3 6,012 3.0 61.6 10 11 (1) AMD 277 287 3.6 6,299 2.9 64.6 11 12 (1) nr 246 250 1.6 6,549 2.6 67.1 13 13 0 Telefiinken Electronic 217 215 (0.9) 6,764 2.2 69.3 16 14 2 Samsimg 140 201 43.6 6,965 2.1 71.4 20 15 5 Mitsubishi 87 201 131.0 7,166 2.1 73.5 17 16 1 Fujitsu 135 198 46.7 7364 2.0 75.5 41 17 24 Harris* 28 145 417.9 7,509 1.5 77.0 14 18 (4) Plessey Semiconductors* 198 138 (30.3) 7,647 1.4 78.4 25 19 6 Hewlett-Packard 53 96 81.1 7,743 1.0 79.4 19 20 (1) Analog Devices 96 95 (1.0) 7,838 1.0 80.3 27 21 6 Matsushita (Panasonic) 46 95 106.5 7,933 1.0 81.3 22 22 0 LSI Logic 60 73 21.7 8,006 0.7 82.1 26 23 3 Matra MHS* 52 73 40.4 8,079 0.7 82.8 21 24 (3) International Rectifier 66 71 7.6 8,150 0.7 83.5 23 25 (2) Oki Electric 58 69 19.0 8,219 0.7 84.3 64 26 38 Micron Technology* 2 60 2,900.0 8,279 0.6 84.9 28 27 1 Austria Mikro Systeme 44 56 27.3 8,335 0.6 85.4 24 28 (4) Semikron 56 55 (1.8) 8390 0.6 86.0 36 29 7 VLSI Technology 36 55 52.8 8,445 0.6 86.6 30 30 0 Mietec 42 52 23.8 8,497 0.5 87.1 39 31 8 NMB* 30 51 70.0 8,548 0.5 87.6 32 32 0 Maiconi Electronic Devices 41 45 9.8 8393 0.5 88.1 34 33 1 Ericsson Components 40 42 5.0 8,635 0.4 88.5 31 34 (3) Siliconix 41 41 0.0 8,676 0.4 88.9 NA 35 ABB-DCYS* 40 8,716 0.4 89.3 29 36 (7) Burr-Brown 43 39 (9.3) 8,755 0.4 89.7 NA 37 TMS* 38 8,793 0.4 90.1 35 38 (3) IDT 39 36 (7.7) 8,829 0.4 90.5 40 39 1 Powerex 28 33 17.9 8,862 0.3 90.8

(Continued)

Table 2 (Continued) 1989 European Semiconductor Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

50 40 10 General Instrument 18 33 83.3 8,895 0.3 91.2 37 41 (4) Sprague* 32 32 0.0 8,927 0.3 91.5 61 42 19 Sony* 9 31 244.4 8,958 0.3 91.8 18 43 (25) ABB-HAFO* 100 30 (70.0) 8,988 0.3 92.1 44 44 0 Cypress* 21 30 42.9 9,018 0.3 92.4 38 45 (7) Precision Monolithics 30 29 (3.3) 9,047 0.3 92.7 59 46 13 Sharp* 12 27 125.0 9,074 0.3 93.0 52 47 5 Western Digital 17 23 35.3 9,097 0.2 93.3 43 48 (5) Fagor Electrotecnica 21 22 4.8 9,119 0.2 93.5 55 49 6 Rohm Electronics* 16 22 37.5 9,141 0.2 93.7 42 50 (8) STC Components 21 19 (9.5) 9,160 0.2 93.9 54 51 3 Unitrode* 16 19 18.8 9,179 0.2 94.1 47 52 (5) TAG 18 17 (5.6) 9,196 0.2 94.3 51 53 (2) AT&T* 18 17 (5.6) 9,213 0.2 94.4 60 54 6 European Silicon Structures 12 17 41.7 9,230 0.2 94.6 45 55 (10) Zilog 19 16 (15.8) 9,246 0.2 94.8 49 56 (7) Rockwell* 18 16 (11.1) 9,262 0.2 94.9 48 57 (9) Sanyo* 18 15 (16.7) 9,277 0.2 95.1 53 58 (5) Raytheon* 17 14 (17.6) 9,291 0.1 95.2 57 59 (2) Mitel Semiconductor* 14 14 0.0 9,305 0.1 95.4 58 60 (2) Eurosil Electronic 13 14 7.7 9,319 0.1 95.5 63 61 2 Goldstar 4 9 125.0 9,328 0.1 95.6 46 62 (16) Seiko Epson 19 8 (57.9) 9,336 0.1 95.7 15 NA GE Solid State* 141 (100.0) 33 NA Inmos* 40 (100.0) 56 NA Honeywell Solid State* 15 (100.0) 62 NA TRW* 8 (100.0)

European Others 42 37 (11.9) 9,373 0.4 96.1 North American Others 131 291 122.1 9,664 3.0 99.1 Japanese Others 13 64 392.3 9,728 0.7 99.7 Rest of World Others 21 27 28.6 9,755 0.3 100.0

Total All Companies 8,491 9,755 14.9 100.0 Total European 3,196 3,562 11.5 36.5 Total North American 3,664 4,032 10.0 41.3 Total Japanese 1,466 1,924 31.2 19.7 Total Rest of World 165 237 43.6 2.4 • See Footnotes (page 44) NA = Not Applicable Source: Dataquest (June 1990)

Table 3 1989 European Integrated Circuit Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent) 8 1 7 Siemens 373 707 89.5 707 9.1 9.1 1 2 (1) Philips 683 649 (5.0) 1,356 8.3 17.4 2 3 (1) Texas Instruments 602 610 1.3 1,966 7.8 25.2 3 4 (1) SGS-Thomson 485 574 18.4 2,540 7.4 32.6 4 5 (1) Intel 485 530 9.3 3,070 6.8 39.4 5 6 (1) Motorola 415 460 10.8 3,530 5.9 45.3 6 7 (1) NEC 381 410 7.6 3,940 5.3 50.6 m 7 8 (1) National Semiconductor 381 376 (1.3) 4,316 4.8 55.4 9 9 0 Toshiba 321 358 11.5 4,674 4.6 60.0 10 10 0 AMD 277 287 3.6 4,961 3.7 63.7 11 11 0 Hitachi 233 278 19.3 5,239 3.6 67.2 14 12 2 Samsung 139 198 42.4 5,437 2.5 69.8 19 13 6 Mitsubishi 79 181 129.1 5,618 2.3 72.1 15 14 1 Fujitsu 135 170 25.9 5,788 2.2 74.3 13 15 (2) m 143 145 1.4 5,933 1.9 76.1 12 16 (4) Plessey Semiconductors 160 138 (13.8) 6,071 1.8 77.9 34 17 17 Harris 28 117 317.9 6,188 1.5 79.4 17 18 (1) Analog Devices 96 95 (1.0) 6,283 1.2 80.6 18 19 (1) Telefunken Electronic 86 82 (4.7) 6,365 1.1 81.7 20 20 0 LSI Logic 60 73 21.7 6,438 0.9 82.6 22 21 1 Matra MHS 52 73 40.4 6,511 0.9 83.5 30 22 8 Matsushita (Panasonic) 31 72 132.3 6,583 0.9 84.5 21 23 (2) Old Electric 57 69 21.1 6,652 0.9 85.3 56 24 32 Micron Technology 2 60 2,900.0 6,712 0.8 86.1 23 25 (2) Austria Mikro Systeme 44 56 27.3 6,768 0.7 86.8 29 26 3 VLSI Technology 36 55 52.8 6,823 0.7 87.5 25 27 (2) Mietec 42 52 23.8 6,875 0.7 88.2 33 28 5 NMB 30 51 70.0 6,926 0.7 88.9 27 29 (2) Ericsson Components 40 42 5.0 6,968 0.5 89.4 24 30 (6) Burr-Brown 43 39 (9.3) 7,007 0.5 89.9 28 31 (3) IDT 39 36 (7.7) 7,043 0.5 90.4 37 32 5 Cypress 21 30 42.9 7,073 0.4 90.7 52 33 19 Sony 9 30 233.3 7,103 0.4 91.1 NA 34 TMS 30 7,133 0.4 91.5 32 35 (3) Precision Monolithics 30 29 (3.3) 7,162 0.4 91.9 36 36 0 Marccmi Electronic Devices 23 28 21.7 7,190 0.4 92.3 31 37 (6) Sprague 30 25 (16.7) 7,215 0.3 92.6 43 38 5 Westem Digital 17 23 35.3 7,238 0.3 92.9 51 39 12 Sharp 11 23 109.1 7.261 0.3 93.2

(Cont inued)

Table 3 (Continued) 1989 European Integrated Circuit Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

35 40 (5) ABB-HAFO 25 21 (16.0) 7,282 0.3 93.4 38 41 (3) STC Components 20 17 (15.0) 7,299 0.2 93.6 50 42 8 Eiuopean Silicon Structures 12 17 41.7 7,316 0.2 93.9 39 43 (4) Zilog 19 16 (15.8) 7,332 0.2 94.1 42 44 (2) Rockwell 18 16 (11.1) 7,348 0.2 94.3 41 45 (4) SiUconix 18 16 (11.1) 7,364 0.2 94.5 44 46 (2) AT&T 17 14 (17.6) 7,378 0.2 94.7 48 47 1 Mitel Semiconductor 14 14 0.0 7,392 0.2 94.8 49 48 1 Eurosil Electronic 13 14 7.7 7,406 0.2 95.0 45 49 (4) Raytheon 16 13 (18.8) 7,419 0.2 95.2 46 50 (4) Sanyo 15 9 (40.0) 7,428 0.1 95.3 55 51 4 Goldstar 4 9 125.0 7.437 0.1 95.4 40 52 (12) Seiko Epson 19 8 (57.9) 7,445 0.1 95.5 53 53 0 Unitrode 6 8 33.3 7,453 0.1 95.6 54 54 0 Rohm Electronics 6 8 33.3 7,461 0.1 95.7 NA 55 International Rectifier 1 7,462 0.0 95.7 16 NA GE Solid State 106 (100.0) 26 NA Inmos 40 (100.0) 47 NA Honeywell Solid State 15 (100.0)

European Others 28 23 (17.9) 7,485 0.3 96.0 North American Others 116 237 104.3 7,722 3.0 99.1 Japanese Others 6 47 683.3 7,769 0.6 99.7 Rest of World Others 17 25 47.1 7,794 0.3 100.0

Total All Companies 6,669 7,794 16.9 100.0 Total European 2,126 2,523 18.7 32.4 Total North American 3,050 3,325 9.0 42.7 Total Japanese 1,333 1,714 28.6 22.0 Total Rest of World 160 232 45.0 3.0 NA = Not ,\pidicabl e Souice: Dataquest (June 1990)

Table 4 1989 European Bipolar Digital IC Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Texas Instruments 189 142 (24.9) 142 22.2 22.2 3 2 1 AMD 112 97 (13.4) 239 15.2 37.3 4 3 1 National Semiconductor 110 79 (28.2) 318 12.3 49.7 2 4 (2) Philips 117 66 (43.6) 384 10.3 60.0 5 5 0 Plessey Semiconductors 60 66 10.0 450 10.3 70.3 7 6 1 Siemens 28 51 82.1 501 8.0 78.3 6 7 (1) Motorola 55 48 (12.7) 549 7.5 85.8 14 8 6 NEC 6 28 366.7 577 4.4 90.2 9 9 0 Fujitsu 12 13 8.3 590 2.0 92.2 15 10 5 Hitachi 6 8 33.3 598 1.3 93.4 12 11 1 Raytheon 9 7 (22.2) 605 1.1 94.5 NA 12 Mitsubishi 7 612 1.1 95.6 8 13 (5) Telefunken Electronic 19 5 (73.7) 617 0.8 96.4 10 14 (4) SGS-Thomson 11 4 (63.6) 621 0.6 97.0 13 15 (2) STC Components 7 4 (42.9) 625 0.6 97.7 17 16 1 Toshiba 3 2 (33.3) 627 0.3 98.0 19 17 2 Goldstar 1 2 100.0 629 0.3 98.3 NA 18 AT&T 2 631 0.3 98.6 18 19 (1) Matsushita (Panasonic) 3 1 (66.7) 632 0.2 98.8 11 NA Intel 10 (100.0) 16 NA Honeywell Solid State 5 (100.0)

European Others 8 4 (50.0) 636 0.6 99.4 North American Others 1 4 300.0 640 0.6 100.0

Total All Companies 772 640 (17.1) 100.0 Total European 250 200 (20.0) 31.3 Total North American 491 379 (22.8) 59.2 Total Japanese 30 59 96.7 9.2 Total Rest of Worid 1 2 100.0 0.3 NA = Not AppUcaUe Soiuce: Datan^st (June 1990)

Table 5 1989 European Bipolar TTL Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Texas Instruments 189 142 (24.9) 142 28.3 28.3 2 2 0 AMD 111 85 (23.4) 227 17.0 45.3 4 3 1 National Semiconductor 95 62 (34.7) 289 12.4 57.7 3 4 (1) Philips 105 58 (44.8) 347 11.6 69.3 10 5 5 Plessey Semiconductors 7 47 571.4 394 9.4 78.6 5 6 (1) Motorola 38 24 (36.8) 418 4.8 83.4 13 7 6 NEC 5 24 380.0 442 4.8 88.2 14 S 6 Siemens 4 14 250.0 456 2.8 91.0 11 9 2 Hitachi 6 7 16.7 463 1.4 92.4 NA 10 Mitsubishi 7 470 1.4 93.8 9 11 (2) Raytheon 8 6 (25.0) 476 1.2 95.0 12 12 0 Fujitsu 6 6 0.0 482 1.2 96.2 6 13 (7) Telefunken Electronic 19 5 (73.7) 487 1.0 97.2 7 14 (7) SGS-Thomson 11 4 (63.6) 491 0.8 98.0 16 15 1 Goldstar 1 2 100.0 493 0.4 98.4 NA 16 AT&T 2 495 0.4 98.8 15 17 (2) Matsushita (Panasonic) 3 1 (66.7) 496 0.2 99.0 NA 18 Toshiba 1 497 0.2 99.2 8 NA Intel 10 (100.0)

European Others 5 3 (40.0) 500 0.6 99.8 North American Others 1 1 0.0 501 0.2 100.0

Total All Companies 624 501 (19.7) 100.0 Total European 151 131 (13.2) 26.1 Total North American 452 322 (28.8) 64.3 Total Japanese 20 46 130.0 9.2 Total Rest of World 1 2 100.0 0.4 NA = Not Applicabl, e Source: Dataquest (June 1990)

Table 6 1989 European Bipolar ECL Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

2 1 1 Siemens 24 37 54.2 37 26.6 26.6 3 2 1 Motorola 17 24 41.2 61 17.3 43.9 1 3 (2) Plessey Semiconductors 53 19 (64.2) 80 13.7 57.6 4 4 0 National Semiconductor 15 17 13.3 97 12.2 69.8 12 5 7 AMD 1 12 1,100.0 109 8.6 78.4 5 6 (1) Philips 12 8 (33.3) 117 5.8 84.2 7 7 0 Fujitsu 6 7 16.7 124 5.0 89.2 6 8 (2) STC Components 7 4 (42.9) 128 2.9 92.1 11 9 2 NEC 1 4 300.0 132 2.9 95.0 9 10 (1) Toshiba 3 1 (66.7) 133 0.7 95.7 10 11 (1) Raytheon 1 1 0.0 134 0.7 96.4 NA 12 Hitachi 1 135 0.7 97.1 8 NA Honeywell Solid State 5 (100.0)

European Others 3 1 (66.7) 136 0.7 97.8 North American Others 3 139 2.2 100.0

Total AU Companies 148 139 (6.1) 100.0 Total European 99 69 (30.3) 49.6 Total North American 39 57 46.2 41.0 Total Japanese 10 13 30.0 9.4 NA = Not Applicable Souice: DaUquest (June 1990)

Table 7 1989 European Bipolar Memory Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent) 1 1 0 AMD 29 27 (6.9) 27 37.5 37.5 3 2 1 National Semiconductor 10 15 50.0 42 20.8 58.3 2 3 (1) Philips 14 12 (14.3) 54 16.7 75.0 4 4 0 Fujitsu 7 7 0.0 61 9.7 84.7 6 5 1 NEC 3 7 133.3 68 9.7 94.4 8 6 2 Hitachi 2 3 50.0 71 4.2 98.6 7 7 0 Raytheon 2 1 (50.0) 72 1.4 100.0 5 NA Texas Instruments 5 (100.0) 9 NA Motorola 1 (100.0) European Others 1 (100.0)

Total All Companies 74 72 (2.7) 100.0 Total European 15 12 (20.0) 16.7 Total North American 47 43 (8.5) 59.7 Total Japanese 12 17 41.7 23.6 NA = Not Applicable Source: Dataquest (luce 1990)

Table 8 1989 European Bipolar Logic Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum [lank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Texas Instruments 184 142 (22.8) 142 25.0 25.0 4 2 2 AMD 83 70 (15.7) 212 12.3 37.3 5 3 2 Plessey Semiconductors 60 66 10.0 278 11.6 48.9 3 4 (1) National Semiconductor 100 64 (36.0) 342 11.3 60.2 2 5 (3) Philips 103 54 (47.6) 396 9.5 69.7 7 6 1 Siemens 28 51 82.1 447 9.0 78.7 6 7 (1) Motorola 54 48 (11.1) 495 8.5 87.1 17 8 9 NEC 3 21 600.0 516 3.7 90.8 NA 9 Mitsubishi 7 523 1.2 92.1 12 10 2 Raytheon 7 6 (14.3) 529 1.1 93.1 14 11 3 Fujitsu 5 6 20.0 535 1.1 94.2 8 12 (4) Telefunken Electronic 19 5 (73.7) 540 0.9 95.1 15 13 2 Hitachi 4 5 25.0 545 0.9 96.0 9 14 (5) SGS-Thomson 11 4 (63.6) 549 0.7 96.7 11 15 (4) STC Components 7 4 (42.9) 553 0.7 97.4 16 16 0 Toshiba 3 2 (33.3) 555 0.4 97.7 19 17 2 Goldstar 1 2 100.0 557 0.4 98.1 NA 18 AT&T 2 559 0.4 98.4 18 19 (1) Matsushita (Panasonic) 3 1 (66.7) 560 0.2 98.6 10 NA Intel 10 (100.0) 13 NA Honeywell Solid State 5 (100.0)

European Others 7 4 (42.9) 564 0.7 99.3 North American Others 1 4 300.0 568 0.7 100.0

Total All Companies 698 568 (18.6) 100.0 Total European 235 188 (20.0) 33.1 Total North American 444 336 (24.3) 59.2 Total Japanese 18 42 133.3 7.4 Total Rest of World 1 2 100.0 0.4 NA - Not Applicable Sotnce: Dataquest (June 1990)

Table 9 1989 European Bipolar ASIC Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

2 1 1 Plessey Semiconductors 43 54 25.6 54 20.8 20.8 3 2 1 Siemens 28 51 82.1 105 19.6 40.4 1 3 (2) AMD 56 49 (12.5) 154 18.8 59.2 NA 4 NEC 20 174 7.7 66.9 10 5 5 Motorola 5 15 200.0 189 5.8 72.7 4 6 (2) Philips 24 14 (41.7) 203 5.4 78.1 7 7 0 Texas Instruments 15 12 (20.0) 215 4.6 82.7 5 8 (3) National Semiconductor 20 11 (45.0) 226 4.2 86.9 9 9 0 Raytheon 7 6 (14.3) 232 2.3 89.2 6 10 (4) Telefunken Electronic 19 5 (73.7) 237 1.9 91.2 12 11 1 Fujitsu 4 5 25.0 242 1.9 93.1 8 12 (4) STC Components 7 4 (42.9) 246 1.5 94.6 13 13 0 Toshiba 3 2 (33.3) 248 0.8 95.4 NA 14 Mitsubishi 2 250 0.8 96.2 NA 15 AT&T 2 252 0.8 96.9 NA 16 Hitachi 1 253 0.4 97.3 11 NA Honeywell Solid State 5 (100.0) 14 NA SGS-Thomson 1 (100.0)

European Others 4 4 0.0 257 1.5 98.8 North American Others 3 260 1.2 100.0

Total All Companies 241 260 7.9 100.0 Total European 126 132 4.8 50.8 Total North American 108 98 (9.3) 37.7 Total Japanese 7 30 328.6 11.5 NA = Not Applicable Source: Dataquest (June 1990)

Table 10 1989 European Bipolar Standard Logic Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Texas Instruments 169 130 (23.1) 130 46.1 46.1 2 2 0 National Semiconductor 76 53 (30.3) 183 18.8 64.9 3 3 0 Philips 52 37 (28.8) 220 13.1 78.0 4 4 0 Motorola 49 33 (32.7) 253 11.7 89.7 5 5 0 AMD 17 11 (35.3) 264 3.9 93.6 6 6 0 SGS-Thomson 10 4 (60.0) 268 1.4 95.0 8 7 1 Hitachi 4 4 0.0 272 1.4 96.5 NA 8 Mitsubishi 4 276 1.4 97.9 11 9 2 Goldstar 1 2 100.0 278 0.7 98.6 7 10 (3) Plessey Semiconductors 6 1 (83.3) 279 0.4 98.9 9 11 (2) NEC 3 1 (66.7) 280 0.4 99.3 10 12 (2) Matsushita (Panasonic) 3 1 (66.7) 281 0.4 99.6 12 13 (1) Fujitsu 1 1 0.0 282 0.4 100.0

European Others 3 (100.0)

Total AU Companies 394 282 (28.4) 100.0 Total European 71 42 (40.8) 14.9 Total North American 311 227 (27.0) 80.5 Total Japanese 11 11 0.0 3.9 Total Rest of World 1 2 100.0 0.7 NA = Not Applicable Souice: Dataquest (Juivi 1990)

Table 11 1989 European Bipolar Other Logic Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent) 2 1 1 Plessey Semiconductors 11 11 0.0 11 42.3 42.3 4 2 2 AMD 10 10 0.0 21 38.5 80.8 1 3 (2) Philips 27 3 (88.9) 24 11.5 92.3 NA 4 Mitsubishi 1 25 3.8 96.2 3 NA Intel 10 (100.0) 5 NA National Semiconductor 4 (100.0)

North American Others 1 1 0.0 26 3.8 100.0

Total AH Companies 63 26 (58.7) 100.0 Total European 38 14 (63.2) 53.8 Total North American 25 11 (56.0) 42.3 Total Japanese 1 3.8 NA = Not Applicable Souice: Dataquest (June 1990)

Table 12 1989 European Digital MOS IC Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum ^ank Rank in Rank Ranked Companies {$M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Intel 475 530 11.6 530 9.7 9.7 8 2 6 Siemens 243 522 114.8 1,052 9.6 19.3 2 3 (1) NEC 372 378 1.6 1,430 6.9 26.2 3 4 (1) Texas Instruments 308 368 19.5 1,798 6.7 32.9 6 5 1 SGS-Thomson 264 344 30.3 2,142 6.3 39.2 4 6 (2) Toshiba 301 334 11.0 2,476 6.1 45.4 7 7 0 Motorola 255 313 22.7 2,789 5.7 51.1 5 8 (3) Philips 285 267 (6.3) 3,056 4.9 56.0 9 9 0 Hitachi 221 264 19.5 3,320 4.8 60.8 11 10 1 Samsung 137 188 37.2 3,508 3.4 64.3 10 11 (1) AMD 148 168 13.5 3,676 3.1 67.4 15 12 3 Mitsubishi 79 153 93.7 3,829 2.8 70.2 13 13 0 Fujitsu 123 148 20.3 3,977 2.7 72.9 12 14 (2) National Semiconductor 131 137 4.6 4,114 2.5 75.4 14 15 (1) ITT 102 118 15.7 4,232 2.2 77.5 17 16 1 LSI Logic 60 73 21.7 4,305 1.3 78.9 19 17 2 Matra MHS 52 73 40.4 4,378 1.3 80.2 42 IS 24 Harris 10 70 600.0 4,448 1.3 81.5 18 19 (1) Oki Electric 57 69 21.1 4,517 1.3 82.8 29 20 9 Matsushita (Panasonic) 22 67 204.5 4,584 1.2 84.0 49 21 28 Micron Technology 2 60 2,900.0 4,644 1.1 85.1 25 22 3 VLSI Technology 36 55 52.8 4,699 1.0 86.1 20 23 (3) Plessey Semiconductors 51 54 5.9 4,753 1.0 87.1 21 24 (3) Mietec 42 52 23.8 4,805 1.0 88.0 26 25 1 NMB 30 51 70.0 4,856 0.9 89.0 23 26 (3) Austria Mikro Systeme 40 47 17.5 4,903 0.9 89.8 24 27 (3) IDT 39 36 (7.7) 4,939 0.7 90.5 30 28 2 Cypress 21 30 42.9 4,969 0.5 91.0 28 29 (1) Marconi Electronic Devices 23 26 13.0 4,995 0.5 91.5 46 30 16 Sony 5 26 420.0 5,021 0.5 92.0 34 31 3 Western Digital 17 23 35.3 5,044 0.4 92.4 40 32 8 Sharp 11 23 109.1 5,067 0.4 92.8 NA 33 TMS 23 5,090 0.4 93.3 27 34 (7) ABB-HAFO 25 21 (16.0) 5,111 0.4 93.6 39 35 4 European SUicon Structures 12 17 41.7 5,128 0.3 94.0 31 36 (5) ZUog 19 16 (15.8) 5,144 0.3 94.2 35 37 (2) Telefunken Electronic 15 15 0.0 5,159 0.3 94.5 37 38 (1) Eurosil Electronic 13 14 7.7 5,173 0.3 94.8 36 39 (3) AT&T 15 12 (20.0) 5,185 0.2 95.0

(Continued)

Table 12 (Continued) 1989 European Digital MOS IC Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank In Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

33 40 (7) Rockwell 18 9 (50.0) 5,194 0.2 95.2 43 41 2 STC Components 9 8 (11.1) 5,202 0.1 95.3 47 42 5 Sprague 3 8 166.7 5,210 0.1 95.5 32 43 (11) Seiko Epson 18 7 (61.1) 5,217 0.1 95.6 44 44 0 Ericsson Components 6 7 16.7 5,224 0.1 95.7 45 45 0 Analog Devices 6 6 0.0 5,230 0.1 95.8 48 46 2 Goldstar 3 6 100.0 5,236 0.1 95.9 38 47 (9) Sanyo 12 4 (66.7) 5,240 0.1 96.0 16 NA GE Solid State 73 (100.0) 22 NA Inmos 40 (100.0) 41 NA Honeywell Solid State 10 (100.0)

European Others 18 17 (5.6) 5,257 0.3 96.3 North American Others 66 136 106.1 5,393 2.5 98.8 Japanese Others 4 40 900.0 5,433 0.7 99.5 Rest of Worid Otiiers 17 25 47.1 5,458 0.5 100.0

Total All Companies 4,364 5,458 25.1 100.0 Total European 1,138 1,507 32.4 27.6 Total North American 1,814 2,168 19.5 39.7 Total Japanese 1,255 1,564 24.6 28.7 Total Rest of Worid 157 219 39.5 4,0 NA = Not Applicable Source: Dataquest (June 1990)

Table 13 1989 European NMOS IC Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Intel 257 282 9.7 282 14.2 14.2 3 2 1 Siemens 177 233 31.6 515 11.7 26.0 2 3 (1) Texas Instruments 194 223 14.9 738 11.2 37.2 4 4 0 SGS-Thomson 137 152 10.9 890 7.7 44.9 10 5 5 Hitachi 73 128 75.3 1,018 6.5 51.3 6 6 0 NEC 124 122 (1.6) 1,140 6.2 57.5 5 7 (2) AMD 127 100 (21.3) 1,240 5.0 62.5 15 8 7 Mitsubishi 26 94 261.5 1,334 4.7 67.3 7 9 (2) Philips 117 88 (24.8) 1,422 4.4 71.7 9 10 (1) Toshiba 80 87 8.8 1,509 4.4 76.1 11 11 0 Samsung 62 52 (16.1) 1,561 2.6 78.7 12 12 0 ITT 47 52 10.6 1,613 2.6 81.3 26 13 13 Micron Technology 2 52 2,500.0 1,665 2.6 84.0 13 14 (1) Fujitsu 44 47 6.8 1,712 2.4 86.3 8 15 (7) Motorola 108 39 (63.9) 1,751 2.0 88.3 14 16 (2) National Semiconductor 40 30 (25.0) 1,781 1.5 89.8 NA 17 Matsushita (Panasonic) 29 1,810 1.5 91.3 16 18 (2) Oki Electric 22 26 18.2 1,836 1.3 92.6 18 19 (1) Telefunken Electronic 15 15 0.0 1,851 0.8 93.3 22 20 2 Sharp 7 15 114.3 1,866 0.8 94.1 21 21 0 Austria Mikro Systeme 8 11 37.5 1,877 0.6 94.7 20 22 (2) Plessey Semiconductors 10 10 0.0 1,887 0.5 95.2 17 23 (6) ZUog 15 9 (40.0) 1,896 0.5 95.6 19 24 (5) Rockwell 11 9 (18.2) 1,905 0.5 96.1 23 25 (2) Mietec 7 7 0.0 1,912 0.4 96.4 NA 26 TMS 5 1,917 0.3 96.7 28 27. 1 STC Components 1 2 100.0 1,919 0.1 96.8 NA 28 Goldstar 2 1,921 0.1 96.9 24 NA Sanyo 5 (100.0) 25 NA Matra MHS 3 (100.0) 27 NA Inmos 2 (100.0) 29 NA Sprague 1 (100.0)

European Others 6 6 0.0 1,927 0.3 97.2 North American Others 27 38 40.7 1,965 1.9 99.1 Japanese Others 1 18 1,700.0 1,983 0.9 100.0 Rest of World Others 3 (100.0)

Total All Companies 1,759 1,983 12.7 100.0 Total European 483 529 9.5 26.7 Total North American 829 834 0.6 42.1 Total Japanese 382 566 48.2 28.5 Total Rest of Worid 65 54 (16.9) 2.7 NA = Not .Applicabl e Source: Dataquest (June 1990)

Table 14 1989 European CMOS IC Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum ($M) ($M) (Percent) Rank Rank in Rank Ranked Companies ($M) (Percent) (Percent) 13 1 12 Siemens 65 289 344.6 289 8.5 8.5 5 2 3 Motorola 147 274 86.4 563 8.0 16.5 1 3 (2) NEC 230 256 11.3 819 7.5 24.0 3 4 (1) Intel 218 248 13.8 1,067 7.3 31.3 2 5 (3) Toshiba 221 246 11.3 1,313 7.2 38.5 6 6 0 SGS-Thomson 127 184 44.9 1,497 5.4 43.9 4 7 (3) Philips 168 179 6.5 1,676 5.2 49.1 7 8 (1) Texas Instruments 108 142 31.5 1,818 4.2 53.3 11 9 2 Samsung 73 136 86.3 1,954 4.0 57.3 8 10 (2) Hitachi 99 135 36.4 2,089 4.0 61.2 9 11 (2) National Semiconductor 90 103 14,4 2,192 3.0 64.2 10 12 (2) Fujitsu 79 98 24.1 2,290 2.9 67.1 16 13 3 Matra MHS 49 73 49.0 2,363 2.1 69.3 14 14 0 LSI Logic 59 72 22.0 2,435 2.1 71.4 37 15 22 Harris 10 70 600.0 2,505 2.1 73.4 29 16 13 AMD 21 68 223.8 2,573 2.0 75.4 17 17 0 ITT 48 63 31.3 2,636 1.8 77.3 15 18 (3) Mitsubishi 53 59 11.3 2,695 1.7 79.0 21 19 2 VLSI Technology 36 55 52.8 2,750 1.6 80.6 24 20 4 NMB 30 51 70.0 2,801 1.5 82.1 18 21 (3) Plessey Semiconductors 40 44 10.0 2,845 1.3 83.4 22 22 0 Oki Electric 35 43 22.9 2,888 1.3 84.6 27 23 4 Matsushita (Panasonic) 22 38 72.7 2,926 1.1 85.8 19 24 (5) IDT 39 36 (7.7) 2,962 1.1 86.8 23 25 (2) Austria Mikro Systeme 32 36 12.5 2,998 1.1 87.9 28 26 2 Cypress 21 30 42.9 3,028 0.9 88.7 26 27 (1) Marconi Electronic Devices 23 26 13.0 3,054 0.8 89.5 43 28 15 Sony 5 26 420.0 3,080 0.8 90.3 31 29 2 Western Digital 17 23 35.3 3,103 0.7 90.9 32 30 2 Mietec 17 22 29.4 3,125 0.6 91.6 25 31 (6) ABB-HAFO 25 21 (16.0) 3,146 0.6 92.2 NA 32 TMS 18 3,164 0.5 92.7 35 33 2 European Silicon Structures 12 17 41.7 3,181 0.5 93.2 34 34 0 Eurosil Electronic 13 14 7.7 3,195 0.4 93.6 33 35 (2) AT&T 15 12 (20.0) 3,207 0.4 94.0 45 36 9 Sharp 4 8 100.0 3,215 0.2 94.2 NA 37 Micron Technology 8 3,223 0.2 94.5 30 38 (8) Seiko Epson 18 7 (61.1) 3,230 0.2 94.7 41 39 2 Ericsson Components 6 7 16.7 3,237 0.2 94.9

(Continued)

Table 14 1989 European CMOS IC Market Share Rankings (Miilions of U.S. Dollars) (Continued) 1988-89 1989 1989 1989 1988 1989 Annual Cum, Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

44 40 4 ZUog 4 7 75.0 3,244 0.2 95.1 42 41 1 Analog Devices 6 6 0.0 3,250 0.2 95.3 38 42 (4) Sanyo 7 4 (42.9) 3,254 0.1 95.4 46 43 3 Goldstar 3 4 33.3 3,258 0.1 95.5 39 44 (5) STC Components 6 3 (50.0) 3,261 0.1 95.6 12 NA GE Solid State 66 (100.0) 20 NA Inmos 38 (100.0) 36 NA Honeywell Solid State 10 (100.0) 40 NA Rockwell 6 (100.0) 47 NA Sprague 2 (100.0)

European Others 12 11 (8.3) 3,272 0.3 95.9 North American Others 39 93 138.5 3,365 2.7 98.6 Japanese Others 3 22 633.3 3,387 0.6 99.3 Rest of World Others 14 25 78.6 3,412 0.7 100.0

Total All Companies 2,491 3,412 37.0 100.0 Total European 633 944 49.1 27.7 Total North American 962 1,310 36.2 38.4 Total Japanese 806 993 23.2 29.1 Total Rest of World 90 165 83.3 4.8 NA = Not Applicabl. e Source: Dataquest (June 1990)

Table 15 1989 European BiCMOS IC Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

2 1 1 Mietec 18 23 27.8 23 38.3 38.3 NA 2 SGS-Thomson 8 31 13.3 51.7 NA 3 Sprague 8 39 13.3 65.0 7 4 3 National Semiconductor 1 4 300.0 43 6.7 71.7 5 5 0 Texas Instruments 2 3 50.0 46 5.0 76.7 6 6 0 STC Components 2 3 50.0 49 5.0 81.7 NA 7 Fujitsu 3 52 5.0 86.7 3 8 (5) Hitachi 7 1 (85.7) 53 1.7 88.3 8 9 (1) LSI Logic 1 1 0.0 54 1.7 90.0 NA 10 Toshiba 1 55 1.7 91.7 1 NA NEC 18 (100.0) 4 NA GE SoUd State 7 (100.0)

North American Others 5 60 8.3 100.0

Total All Companies 56 60 7.1 100.0 Total European 20 34 70.0 56.7 Total North American 11 21 90.9 35.0 Total Japanese 25 5 (80.0) 8.3 NA = Not Applicable Source: Dataquest (June 1990)

Table 16 1989 European Other MOS IC Market Share Rankings (MiUions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum, 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

2 1 1 ITT 7 3 (57.1) 3 100.0 100.0 1 NA Hitachi 42 (100.0) 3 NA Texas Instruments 4 (100.0) 4 NA Samsung 2 (100.0) 5 NA Siemens 1 (100.0) 6 NA Rockwell 1 (100.0) 7 NA Plessey Semiconductors 1 (100.0)

Total All Companies 58 3 (94.8) 100.0 Total European 2 (100.0) Total North American 12 3 (75.0) 100.0 Total Japanese 42 (100.0) Total Rest of World 2 (100.0) NA = Not Applicable Source; Dataquest (Jui»s 1990)

Table 17 1989 European MOS Memory Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

5 1 4 Siemens 130 338 160.0 338 13.3 13.3 3 2 1 Texas Instruments 216 250 15.7 588 9.8 23.1 1 3 (2) Toshiba 228 247 8.3 835 9.7 32.8 2 4 (2) NEC 223 232 4.0 1,067 9.1 41.9 6 5 1 Samsung 128 186 45.3 1,253 7.3 49.2 4 6 (2) Hitachi 138 172 24.6 1,425 6.8 55.9 9 7 2 SGS-Thomson 84 129 53.6 1,554 5.1 61.0 7 8 (1) Fujitsu 102 120 17.6 1,674 4.7 65.7 10 9 1 Mitsubishi 71 104 46.5 1.778 4.1 69.8 8 10 (2) Intel 97 102 5.2 1,880 4.0 73.8 11 11 0 AMD 56 71 26.8 1,951 2.8 76.6 17 12 3 Matsushita (Panasonic) 22 67 204.5 2,018 2.6 79.2 16 13 3 Motorola 25 60 140.0 2,078 2.4 81.6 29 14 15 Micron Technology 2 60 2,900.0 2,138 2.4 83.9 13 15 (2) NMB 30 51 70.0 2,189 2.0 85.9 12 16 (4) Oki Electric 38 48 26.3 2,237 1.9 87.8 14 17 (3) National Semiconductor 30 30 0.0 2,267 1.2 89.0 18 18 0 Matra MHS 20 28 40.0 2,295 1.1 90.1 25 19 6 Sony 5 26 420.0 2,321 1.0 91.1 15 20 (5) IDT 27 24 (11.1) 2345 0.9 92.0 23 21 2 Sharp 10 22 120.0 2367 0.9 92.9 20 22 (2) CypiBss 16 21 31.3 2388 0.8 93.7 21 23 (2) Philips 14 20 42.9 2,408 0.8 94.5 NA 24 ITT 9 2,417 0.4 94.9 32 25 7 Goldstar 1 4 300.0 2,421 0.2 95.0 31 26 5 Marconi Electronic Devices 1 3 200.0 2,424 0.1 95.1 NA 27 Plessey Semiconductors 2 2,426 0.1 95.2 27 28 (1) Harris 4 1 (75.0) 2,427 0.0 95.3 26 29 (3) VLSI Technology 4 1 (75.0) 2,428 0.0 95.3 NA 30 Sanyo 1 2,429 0.0 95.3 19 NA Inmos 19 (100.0) 22 NA Seiko Epson 11 (100.0) 24 NA GE Solid State 8 (100.0) 28 NA Austria Mikro Systeme 4 (100.0) 30 NA STC Components 1 (100.0)

European Others 2 (100.0) North American Others 18 61 238.9 2,490 2.4 97.7 Japanese Others 1 39 3,800.0 2,529 1.5 99.3 Rest of World Others 11 19 72.7 2,548 0.7 100.0

Total AU Companies 1,797 2,548 41.8 100.0 Total European 275 520 89.1 20.4 Total North American 503 690 37.2 27.1 Total Japanese 879 1,129 28.4 44.3 Total Rest of World 140 209 49.3 8.2 NA = Not Applicable Source: OaUquest (June 1990)

Table 18 1989 European MOS Microcomponent Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) {$M) (Percent) ($M) (Percent) (Percent) 1 i 0 Intel 351 416 18.5 416 28.3 28.3 2 2 0 Motorola 150 179 19.3 595 12.2 40.5 3 3 0 NEC 109 122 11.9 717 8.3 48.8 4 4 0 SGS-Thomson 77 101 31.2 818 6.9 55.7 5 5 0 Hitachi 71 75 5.6 893 5.1 60.8 7 6 1 Siemens 51 67 31.4 960 4.6 65.4 6 7 (1) Philips 55 62 12.7 1,022 4.2 69.6 8 8 0 Texas Instniments 48 60 25.0 1,082 4.1 73.7 21 9 12 Mitsubishi 8 48 500.0 1,130 3.3 76.9 9 10 (1) National Semiconductor 40 45 12.5 1,175 3.1 80.0 11 11 0 Toshiba 27 35 29.6 1,210 2.4 82.4 10 12 (2) AMD 33 34 3.0 1,244 2.3 84.7 14 13 1 Westem Digital 17 23 35.3 1,267 1.6 86.2 24 14 10 Harris 6 21 250.0 1,288 1.4 87.7 17 15 2 Matra MHS 14 20 42.9 1,308 1.4 89.0 15 16 (1) Oki Electric 16 18 125 1,326 1.2 90.3 22 17 5 ITT 7 18 157.1 1,344 1.2 91.5 26 18 8 VLSI Technology 5 17 240.0 1,361 1.2 92.6 13 19 (6) Zilog 19 16 (15.8) 1,377 1.1 93.7 NA 20 TMS 11 1,388 0.7 94.5 20 21 (1) Fujitsu 9 10 11.1 1,398 0.7 95.2 19 22 (3) Rockwell 11 9 (18.2) 1,407 0.6 95.8 25 23 2 Analog Devices 6 6 0.0 1,413 0.4 96.2 NA 24 LSI Logic 6 1,419 0.4 96.6 31 25 6 AT&T 1 4 300.0 1,423 0.3 96.9 23 26 (3) IDT 6 3 (50.0) 1,426 0.2 97.1 30 27 3 Cypress 1 2 100.0 1,428 0.1 97.2 NA 28 Plessey Semiconductors 2 1,430 0.1 97.3 18 29 (11) Sanyo 12 1 (91.7) 1,431 0.1 97.4 28 30 (2) Marconi Electronic Devices 1 1 0.0 1,432 0.1 97.5 29 31 (2) Eurosil Electronic 1 1 0.0 1,433 0.1 97.5 27 32 (5) Sharp 1 1 0.0 1,434 0.1 97.6 12 NA Inmos 21 (100.0) 16 NA GE Solid State 15 (100.0)

North American Others 19 31 63.2 1,465 2.1 99.7 Rest of World Others 4 4 0.0 1,469 0.3 100.0

Total AU Companies 1^212 1,469 21.2 100.0 Total European 220 265 20.5 18.0 Total North American 735 890 21.1 60.6 Total Japatiese 253 310 22.5 21.1 Total Rest of World 4 4 0.0 0.3 NA = Not Applicable Source: Dataquest (June 1990)

Table 19 1989 European MOS Logic Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum [(ank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Philips 216 185 (14.4) 185 12.8 12.8 5 2 3 Siemens 62 117 88.7 302 8.1 21.0 2 3 (1) SGS-Thomson 103 114 10.7 416 7.9 28.9 3 4 (1) rrx 95 91 (4.2) 507 6.3 35.2 4 5 (1) Motorola 80 74 (7.5) 581 5.1 40.3 7 6 1 LSI Logic 60 67 11.7 648 4.6 45.0 8 7 1 AMD 59 63 6.8 711 4.4 49.3 6 8 (2) National Semiconductor 61 62 1.6 773 4.3 53.6 12 9 3 Texas Instruments 44 58 31.8 831 4.0 57.7 11 10 1 Toshiba 46 52 13.0 883 3.6 61.3 13 11 2 Mietec 42 52 23.8 935 3.6 64.9 9 12 (3) Plessey Semiconductors 51 50 (2.0) 985 3.5 68.4 NA 13 Harris 48 1,033 3.3 71.7 15 14 1 Austria Mikro Systeme 36 47 30.6 1,080 3.3 74.9 16 15 1 VLSI Technology 27 37 37.0 1,117 2.6 77.5 20 16 4 Matra MHS 18 25 38.9 1,142 1.7 79.3 14 17 (3) NEC 40 24 (40.0) 1,166 1.7 80.9 19 18 1 Marconi Electronic Devices 21 22 4.8 1,188 1.5 82.4 18 19 (1) ABB-HAFO 25 21 (16.0) 1,209 1.5 83.9 24 20 4 Fujitsu 12 18 50.0 1,227 1.2 85.1 26 21 5 European Silicon Structures 12 17 41.7 1,244 1.2 86.3 23 22 1 Hitachi 12 17 41.7 1,261 1.2 87.5 21 23 (2) Telefunken Electronic 15 15 0.0 1,276 1.0 88.5 25 24 1 Eurosil Electronic 12 13 8.3 1,289 0.9 89.5 17 25 (8) Intel 27 12 (55.6) 1,301 0.8 90.3 NA 26 TMS 12 1,313 0.8 91.1 32 27 5 IDT 6 9 50.0 1,322 0.6 91.7 22 28 (6) AT&T 14 8 (42.9) 1,330 0.6 92.3 29 29 0 STC Components 8 8 0.0 1,338 0.6 92.9 35 30 5 Sprague 3 8 166.7 1,346 0.6 93.4 30 31 (1) Seiko Epson 7 7 0.0 1,353 0.5 93.9 33 32 1 Ericsson Components 6 7 16.7 1,360 0.5 94.4 34 33 1 Cypress 4 7 75.0 1,367 0.5 94.9 36 34 2 Oki Electric 3 3 0.0 1,370 0.2 95.1

(Continued)

Table 19 1989 European MOS Logic Market Share Rankings (Millions of U.S. Dollars) (Continued) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

28 35 (7) Samsung 9 2 (77.8) 1,372 0.1 95.2 37 36 1 Goldstar 2 2 0.0 1,374 0.1 95.4 NA 37 Sanyo 2 1,376 0.1 95.5 NA 38 Mitsubishi 1 1,377 0.1 95.6 10 NA GE Solid State 50 (100.0) 27 NA Honeywell Solid State 10 (100.0) 31 NA Rockwell 7 (100.0)

European Others 16 17 6.3 1,394 1.2 96.7 North American Others 29 44 51.7 1.438 3.1 99.8 Japanese Others 3 1 (66.7) 1,439 0.1 99.9 Rest of World Others 2 2 0.0 1,441 0.1 100.0

Total All Companies 1,355 1,441 6.3 100.0 Total European 643 722 12.3 50.1 Total North American 576 588 2.1 40.8 Total Japanese 123 125 1.6 8.7 Total Rest of World 13 6 (53.8) 0.4 NA = Not Applicable Source: Dataquest (June 1990)

Table 20 1989 European MOS ASIC Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies {$M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 nr 95 91 (4.2) 91 10.4 10.4 2 2 0 LSI Logic 59 67 13.6 158 7.6 18.0 9 3 6 Siemens 28 55 96.4 213 6.3 24.3 3 4 (1) Mietec 42 52 23.8 265 5.9 30.2 4 5 (1) Toshiba 41 50 22.0 315 5.7 35.9 5 6 (1) Plessey Semiconductors 35 49 40.0 364 5.6 41.5 7 7 0 Austria Mikro Systeme 33 47 42.4 411 5.4 46.9 6 8 (2) SGS-Thomson 34 40 17.6 451 4.6 51.4 10 9 1 VLSI Technology 25 37 48.0 488 4.2 55.6 11 10 1 Texas Instruments 25 35 40.0 523 4.0 59.6 8 11 (3) National Semiconductor 30 30 0.0 553 3.4 63.1 13 12 1 NEC 23 24 4.3 577 2.7 65.8 12 13 (1) ABB-HAFO 25 21 (16.0) 598 2.4 68.2 18 14 4 Marconi Electronic Devices 14 21 50.0 619 2.4 70.6 17 15 2 Matra MHS 14 20 42.9 639 2.3 72.9 15 16 (1) Philips 14 19 35.7 658 2.2 75.0 NA 17 Harris 19 677 2.2 77.2 19 18 1 Fujitsu 12 18 50.0 695 2.1 79.2 21 19 2 European Silicon Structures 12 17 41.7 712 1.9 81.2 14 20 (6) Telefiinken Electronic 15 15 0.0 727 1.7 82.9 20 21 (1) Euiosil Electronic 12 13 8.3 740 1.5 84.4 NA 22 TMS 12 752 1.4 85.7 27 23 4 Hitachi 7 11 57.1 763 1.3 87.0 22 24 (2) Intel 11 10 (9.1) 773 1.1 88.1 25 25 0 AT&T 9 8 (11.1) 781 0.9 89.1 31 26 5 Sprague 3 8 166.7 789 0.9 90.0 26 27 (1) Seiko Epson 7 7 0.0 796 0.8 90.8 29 28 1 Ericsson Components 6 7 16.7 803 0.8 91.6 30 29 1 Cypress 4 7 75.0 810 0.8 92.4 28 30 (2) STC Components 6 5 (16.7) 815 0.6 -92^ 33 31 2 AMD 2 5 150.0 820 0.6 93.5 16 32 (16) Motorola 14 4 (71.4) 824 0.5 94.0 32 33 (1) Oki Electric 3 3 0.0 827 0.3 94.3 NA 34 Goldstar 1 828 0.1 94.4 23 NA GE Solid State 11 (100.0) 24 NA Honeywell Solid State 10 (100.0)

European Others 10 10 0.0 838 1.1 95.6 North American Others 19 39 105.3 877 4.4 100.0 Japanese Others 1 (100.0)

Total All Companies 711 877 23.3 100.0 Total European 300 403 34.3 46.0 Total North American 317 360 13.6 41.0 Total Japanese 94 113 20.2 12.9 Total Rest of World 1 0.1 NA = Not Applicable Source: Dataqiiest (June 1990)

Table 21 1989 European MOS Standard Logic Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 AMD 57 58 1.8 58 22.1 22.1 2 2 0 PhiUps 48 46 (4.2) 104 17.5 39.5 3 3 0 Motorola 40 33 (17.5) 137 12.5 52.1 NA 4 Harris 29 166 11.0 63.1 5 5 0 National Semiconductor 21 22 4.8 188 8.4 71.5 6 6 0 Texas Instruments 19 21 10.5 209 8.0 79.5 7 7 0 SGS-Thomson 18 18 0.0 227 6.8 86.3 9 8 1 BDT 6 9 50.0 236 3.4 89.7 11 9 2 Hitachi 5 6 20.0 242 2.3 92.0 13 10 3 STC Components 2 3 50.0 245 1.1 93.2 8 11 (3) Samsung 9 2 (77.8) 247 0.8 93.9 10 12 (2) Toshiba 5 2 (60.0) 249 0.8 94.7 14 13 1 Goldstar 2 1 (50.0) 250 0.4 95.1 NA 14 Mitsubishi 1 251 0.4 95.4 4 NA GE Solid State 39 (100.0) 12 NA AT&T 5 (100.0)

European Others 6 7 16.7 258 2.7 98.1 North American Others 3 3 0.0 261 1.1 99.2 Rest of Worid Others 2 2 0.0 263 0.8 100.0

Total AU Companies 287 263 (8.4) 100.0 Total European 74 74 0.0 28.1 Total North American 190 175 (7.9) 66.5 Total Japanese 10 9 (10.0) 3.4 Total Rest of Worid 13 5 (61.5) 1.9 NA = Not Applicable Souic«: Dataquest (7un)i 1990)

Table 22 1989 European Other MOS Logic Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Philips 154 120 (22.1) 120 39.9 39.9 3 2 1 Siemens 34 62 82.4 182 20.6 60.5 2 3 (1) SGS-Thomson 51 56 9.8 238 18.6 79.1 4 4 0 Motorola 26 37 42.3 275 12.3 91.4 8 5 3 National Semiconductor 10 10 0.0 285 3.3 94.7 11 6 5 Matra MHS 4 5 25.0 290 1.7 96.3 7 7 0 Intel 16 2 (87.5) 292 0.7 97.0 NA g Sanyo 2 294 0.7 97.7 NA 9 Texas Instruments 2 296 0.7 98.3 6 10 (4) Plessey Semiconductors 16 1 (93.8) 297 0.3 98.7 10 11 (1) Marconi Electronic Devices 7 1 (85.7) 298 0.3 99.0 5 NA NEC 17 (100.0) 9 NA Rockwell 7 (100.0) 12 NA Austria Mikro Systeme 3 (100.0) 13 NA VLSI Technology 2 (100.0) 14 NA LSI Logic 1 (100.0)

North American Others 7 2 (71.4) 300 0.7 99.7 Japanese Others 2 1 (50.0) 301 0.3 100.0

Total All Companies 357 301 (15.7) lOO.O Total European 269 245 (8.9) 81.4 Total North American 69 53 (23.2) 17.6 Total Japanese 19 3 (84.2) 1.0 NA = Not Api^cable Source: Dataquest (Juoe 1990)

Table 23 1989 European Total Analog Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Philips 281 316 12.5 316 18.6 18.6 2 2 0 SGS-Thomson 210 226 7.6 542 13.3 32.0 3 3 0 National Semiconductor 140 160 14.3 702 9.4 41.4 6 4 2 Siemens 102 134 31.4 836 7.9 49.3 4 5 (1) Texas Instruments 105 100 (4.8) 936 5.9 55.2 5 6 (1) Motorola 105 99 (5.7) 1,035 5.8 61.0 7 7 0 Analog Devices 90 89 (1.1) 1,124 5.2 66.3 8 8 0 Telefunken Electronic 52 62 19.2 1,186 3.7 69.9 17 9 8 Harris 18 47 161.1 1,233 2.8 72.7 10 10 0 Burr-Brown 43 39 (9.3) 1,272 2.3 75.0 12 11 1 Ericsson Components 34 35 2.9 1,307 2.1 77.1 14 12 2 Precision Monolithics 30 29 (3.3) 1,336 1.7 78.8 11 13 (2) ITT 41 27 (34.1) 1,363 1.6 80.4 18 14 4 Toshiba 17 22 29.4 1,385 1.3 81.7 19 15 4 AMD 17 22 29.4 1,407 1.3 83.0 NA 16 Mitsubishi 21 1,428 1.2 84.2 9 17 (8) Plessey Semiconductors 49 18 (63.3) 1,446 1.1 85.3 15 18 (3) Sprague 27 17 (37.0) 1,463 1.0 86.3 16 19 (3) Siliconix 18 16 (11.1) 1,479 0.9 87.2 20 20 0 Mitel Semiconductor 14 14 0.0 1,493 0.8 88.0 31 21 10 Samsung 2 10 400.0 1,503 0.6 88.6 28 22 6 Austria Mikro Systeme 4 9 125.0 1,512 0.5 89.2 NA 23 Fujitsu 9 1,521 0.5 89.7 23 24 (1) Rolim Electronics 6 8 33.3 1,529 0.5 90.2 22 25 (3) Unitrode 6 8 33.3 1,537 0.5 90.6 NA 26 TMS 7 1,544 0.4 91.0 NA 27 Rockwell 7 1,551 0.4 91.5 21 28 (7) Raytheon 7 6 (14.3) 1,557 0.4 91.8 25 29 (4) Hitachi 6 6 0.0 1,563 0.4 92.2 26 30 (4) STC Components 4 5 25.0 1,568 0.3 92.5 29 31 (2) Sanyo 3 5 66.7 1,573 0.3 92.7 24 32 (8) Matsushita (Panasonic) 6 4 (33.3) 1,577 0.2 93.0 27 33 (6) ScMiy 4 4 0.0 1,581 0.2 93.2 30 34 (4) NEC 3 4 33.3 1,585 0.2 93.5

(Continued)

Table 23 1989 European Total Analog Market Share Rankings (Millions of U.S. Dollars) (Continued) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

NA 35 Marconi Electronic Devices 2 1,587 0.1 93.6 33 36 (3) Seiko Epson 1 1 0.0 1,588 0.1 93.6 NA 37 Goldstar 1 1,589 0.1 93.7 NA 38 International Rectifier 1 1,590 0.1 93.8 13 NA GE Solid State 33 (100.0) 32 NA AT&T 2 (100.0)

European Others 2 2 0.0 1.592 0.1 93.9 North American Others 49 97 98.0 1,689 5.7 99.6 Japanese Others 2 7 250.0 1.696 0.4 100.0

Total All Companies 1,533 1,696 10.6 100.0 Total European 738 816 10.6 48.1 Total North American 745 778 4.4 45.9 Total Japanese 48 91 89.6 5.4 Total Rest of World 2 11 450.0 0.6 NA = Not Applicable Source: Dataquest (June 1990)

Table 24 1989 European Monolithic Analog Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Hank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Philips 247 276 11.7 276 17.7 17.7 2 2 0 SGS-Thomson 210 226 7.6 502 14.5 32.2 3 3 0 National Semiconductor 140 160 14.3 662 10.3 42.4 5 4 1 Siemens 94 125 33.0 787 8.0 50.4 4 5 (1) Texas Instruments 105 100 (4.8) 887 6.4 56.9 6 6 0 Motorola 87 81 (6.9) 968 5.2 62.1 7 7 0 Analog Devices 73 72 (1.4) 1,040 4.6 66.7 8 8 0 Telefunken Electronic 49 59 20.4 1.099 3.8 70.4 16 9 7 Harris 18 45 150.0 1,144 2.9 73.3 11 10 1 Ericsson Components 34 35 2.9 1,179 2.2 75.6 13 11 2 Precision Monolithics 30 29 (3.3) 1,208 1.9 77.4 10 12 (2) ITT 41 27 (34.1) 1,235 1.7 79.2 17 13 4 Toshiba 17 22 29.4 1,257 1.4 80.6 19 14 5 AMD 17 22 29.4 1,279 1.4 82.0 15 15 0 Burr-Brown 23 21 (8.7) 1,300 1.3 83.3 NA 16 Mitsubishi 20 1,320 1.3 84.6 9 17 (8) Plessey Semiconductors 48 18 (62.5) 1,338 1.2 85.8 14 18 (4) Sprague 27 17 (37.0) 1,355 1.1 86.9 18 19 (1) SUiconix 17 16 (5.9) 1,371 1.0 87.9 31 20 11 Samsung 2 10 400.0 1,381 0.6 88.5 20 21 (1) Mitel Semiconductor 10 9 (10.0) 1,390 0.6 89.1 26 22 4 Austria Mikro Systeme 4 9 125.0 1,399 0.6 89.7 24 23 1 Unitrode 5 7 40.0 1,406 0.4 90.1 NA 24 TMS 7 1,413 0.4 90.6 NA 25 Rockwell 7 1,420 0.4 91.0 21 26 (5) Raytheon 6 6 0.0 1,426 0.4 91.4 23 27 (4) Hitachi 6 6 0.0 1,432 0.4 91.8 NA 28 Fujitsu 6 1,438 0.4 92.2 22 29 (7) Matsushita (Panasonic) 6 4 (33.3) 1,442 0.3 92.4 25 30 (5) Rohm Electronics 4 4 0.0 1,446 0.3 92.7 27 31 (4) STC Components 3 4 33.3 1,450 0.3 92.9 28 32 (4) NEC 3 4 33.3 1,454 0.3 93.2 30 33 (3) Sanyo 2 4 100.0 1,458 0.3 93.5 29 34 (5) Sraiy 2 2 0.0 1,460 0.1 93.6

(CcMitinued)

Table 24 1989 European Monolithic Analog Market Share Rankings (Millions of U.S. Dollars) (Continued) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

NA 35 Marconi Electronic Devices 2 1,462 0.1 93.7 NA 36 International Rectifier 1 1,463 0.1 93.8 NA 37 Goldstar 1 1,464 0.1 93.8 12 NA GE Solid State 33 (100.0) 32 NA AT&T 2 (100.0)

European Others 2 2 0.0 1,466 0.1 94.0 North American Others 49 93 89.8 1,559 6.0 99.9 Japanese Others 1 1,560 0.1 100.0

Total All Companies 1,416 1,560 10.2 100.0 Total European 691 763 10.4 48.9 Total North American 683 713 4.4 45.7 Total Japanese 40 73 82.5 4.7 Total Rest of World 2 11 450.0 0.7 NA = Not Applicable Souice: dataquest (June: 1990)

Table 25 1989 European Hybrid Analog Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum ^ank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent) 1 1 0 Philips 34 40 17.6 40 29.4 29.4 2 2 0 Burr-Brown 20 18 (10.0) 58 13.2 42.6 3 3 0 Motorola 18 18 0.0 76 13.2 55.9 4 4 0 Analog Devices 17 17 0.0 93 12.5 68.4 5 5 0 Siemens 8 9 12.5 102 6.6 75.0 6 6 0 Mitel Semiconductor 4 5 25.0 107 3.7 78.7 9 7 2 Rohm Electronics 2 4 100.0 111 2.9 81.6 7 8 (1) Telefunken Electronic 3 3 0.0 114 2.2 83.8 NA 9 Fujitsu 3 117 2.2 86.0 8 10 (2) Sony 2 2 0.0 119 1.5 87.5 NA 11 Harris 2 121 1.5 89.0 11 12 (1) STC Components 0.0 122 0.7 89.7 10 13 (3) Unitrode 0.0 123 0.7 90.4 14 14 0 Sanyo 0.0 124 0.7 91.2 13 15 (2) Seiko Epson 0.0 125 0.7 91.9 NA 16 Mitsubishi 126 0.7 92.6 12 NA Siliconix (100.0) 16 NA Plessey Semiconductors (100.0) 15 NA Raytheon (100.0)

North American Others 4 130 2.9 95.6 Japanese Others 2 6 200.0 136 4.4 100.0

Total All Companies 117 136 16.2 100.0 Total European 47 53 12.8 39.0 Total North American 62 65 4.8 47.8 Total Japanese 8 18 125.0 13.2 NA = Not Applicable Source: Dataquest (June 1990)

Table 26 1989 European Total Discrete Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent) 18.4 1 1 0 Philips 313 294 (6.1) 294 18.4 2 2 0 Motorola 196 193 (1.5) 487 12.1 30.6 41.7 3 3 0 SGS-Thomson 167 177 6.0 664 11.1 51.8 4 4 0 Siemens 135 162 20.0 826 10.2 58.4 5 5 0 ITT 103 105 1.9 931 6.6 62.8 8 6 2 International Rectifier 66 70 6.1 1.001 4.4 7 7 0 Telefiinken Electronic 66 66 0.0 1,067 4.1 66.9 70.4 9 8 1 Semikron 56 55 (1.8) 1,122 3.5 73.3 10 9 1 Toshiba 52 46 (11.5) 1,168 2.9 75.8 NA 10 ABB-DCYS 40 1,208 2.5 11 11 0 Powerex 28 33 17.9 1,241 2.1 77.9 79.9 19 12 7 General Instrument 18 33 83.3 1,274 2.1 81.5 14 13 1 Siliconix 23 25 8.7 1,299 1.6 83.0 NA 14 Harris 24 1,323 1.5 1.4 84.4 13 15 (2) Texas Instruments 25 23 (8.0) 1,346 1,368 1.4 85.8 15 16 (1) Fagor Electrotecnica 21 22 4.8 87.2 NA 17 Fujitsu 22 1,390 1.4 1.3 20 18 2 Matsushita (Panasonic) 13 21 61.5 1,411 88.5 1.3 89.8 24 19 5 Mitsubishi 6 20 233.3 1,431 1.1 90.8 18 20 (2) Marconi Electronic Devices 18 17 (5.6) 1,448 1.1 91.9 16 21 (5) TAG 18 17 (5.6) 1,465 1.1 93.0 27 22 5 Hewlett-Packard 4 17 325.0 1,482 0.9 93.9 22 23 (1) Rohm Electronics 10 14 40.0 1,496 0.9 94.7 25 24 1 NEC 5 14 180.0 1,510 0.7 95.4 21 25 (4) Unitrode 10 11 10.0 1,521 0.6 96.0 23 26 (3) Hitachi 9 9 0.0 1,530 0.4 96.4 28 27 1 Sprague 2 7 250.0 1,537 0.3 96.7 26 28 (2) National Semiconductor 5 5 0.0 1,542 0.3 97.0 30 29 1 Sanyo 1 4 300.0 1,546 0.2 97.2 6 30 (24) ABB-HAFO 69 3 (95.7) 1,549 0.2 97.4 31 31 0 Samsung 1 3 200.0 1,552 100.0 1,554 0.1 97.5 29 32 (3) STC Components 1 2 0.1 97.6 NA 33 TMS 2 1,556 0.1 32 34 (2) Raytheon 1 1 0.0 1.557 97.7 (Continued)

Table 26 1989 European Total Discrete Market Share Rankings (Millions of U.S. Dollars) (Continued) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

NA 35 Sony 1 1,558 0.1 97.7 12 NA GE Solid State 27 (100.0) 17 NA Plessey Semiconductors 18 (100.0) 33 NA AT&T 1 (100.0)

European Others 6 6 0.0 1,564 0.4 98. North American Others 11 11 0.0 1,575 0.7 98.8 Japanese Others 7 17 142.9 1,592 1.1 99.9 Rest of World Others 4 2 (50.0) 1,594 0.1 100.0

Total All Companies 1,516 1,594 5.1 100.0 Total European 888 863 (2.8) 54.1 Total North American 520 558 7.3 35.0 Total Japanese 103 168 63.1 10.5 Total Rest of World 5 5 0.0 0.3 NA =: Not Applicable Source: Dauquest (June 1990)

Table 27 1989 European TVansistor Market Share Rankings (Millions of U.S. Dollars)

1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent) 1 1 0 Philips 185 180 (2.7) 180 23.0 23.0 2 2 0 Motorola 124 127 2.4 307 16.2 39.3 3 3 0 SGS-Thomson 85 90 5.9 397 11.5 50.8 4 4 0 Siemens 66 77 16.7 474 9.8 60.6 5 5 0 Toshiba 36 34 (5.6) 508 4.3 65.0 6 6 0 rrr 32 32 0.0 540 4.1 69.1 8 7 1 Siliconix 23 25 8.7 565 3.2 72.3 7 8 (1) Texas Instruments 25 23 (8.0) 588 2.9 75.2 9 9 0 International Rectifier 20 23 15.0 611 2.9 78.1 NA 10 Fujitsu 22 633 2.8 80.9 13 11 2 Powerex 8 18 125.0 651 2.3 83.2 11 12 (1) Telefunken Electronic 16 17 6.3 668 2.2 85.4 NA 13 Harris 17 685 2.2 87.6 12 14 (2) Matsushita (Panasonic) 12 14 16.7 699 1.8 89.4 19 15 4 NEC 3 11 266.7 710 1.4 90.8 14 16 (2) Rohm Electronics 7 10 42.9 720 1.3 92.1 17 17 0 Mitsubishi 4 10 150.0 730 1.3 93.4 16 18 (2) Marconi Electronic Devices 5 5 0.0 735 0.6 94.0 NA 19 ABB-KYS 5 740 0.6 94.6 23 20 3 Sanyo 1 4 300.0 744 0.5 95.1 20 21 (1) National Semiconductor 3 3 0.0 747 0.4 95.5 24 22 2 Samsung 1 3 200.0 750 0.4 95.9 18 23 (5) Hewlett-Packard 4 2 (50.0) 752 0.3 96.2 21 24 (3) Sprague 2 2 0.0 754 0.3 96.4 26 25 1 Hitachi 1 0.0 755 0.1 96.5 22 26 (4) Semikron 1 0.0 756 0.1 96.7 25 27 (2) Raytheon 1 0.0 757 0.1 96.8 NA 28 TMS 758 0.1 96.9 NA 29 Sony 759 0.1 97.1 10 NA GE Solid State 20 (100.0) 15 NA Plessey Semiconductors 7 (100.0) 27 NA ABB-HAFO 1 (100.0)

European Others 2 2 0.0 761 0.3 97.3 North American Others 7 9 28.6 770 1.2 98.5 Japanese Others 3 10 233.3 780 1.3 99.7 Rest of World Others 4 2 (50.0) 782 0.3 100.0

Total All Companies 709 782 10.3 100.0 Total European 368 378 2.7 48.3 Total North American 269 282 4.8 36.1 Total Japanese 67 117 74.6 15.0 Total Rest of World 5 5 0.0 0,6 NA = Not Applicable Soiuce: Oataquest (June 1990)

Table 28 1989 European Diode Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sates Growth Sum Share Sum [lank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 Philips 111 95 (14.4) 95 19.5 19.5 2 2 0 Motorola 59 55 (6.8) 150 11.3 30.8 3 3 0 SGS-Thomson 50 54 8.0 204 11.1 41.9 4 4 0 ITT 47 47 0.0 251 9.7 51.5 5 5 0 Siemens 35 40 14.3 291 8.2 59.8 10 6 4 General Instrument 18 33 83.3 324 6.8 66.5 6 7 (1) Telefunken Electronic 26 26 0.0 350 5.3 71.9 7 8 (1) International Rectifier 23 22 (4.3) 372 4.5 76.4 9 9 0 Fagor Electrotecnica 21 22 4.8 394 4.5 80.9 8 10 (2) Semikron 21 21 0.0 415 4.3 85.2 NA 11 Hewlett-Packard 15 430 3.1 88.3 NA 12 ABB-EXYS 11 441 2.3 90.6 13 13 0 Unitrode 8 9 12.5 450 1.8 92.4 21 14 7 Matsushita (Panasonic) 1 7 600.0 457 1.4 93.8 15 15 0 Marconi Electronic Devices 4 4 0.0 461 0.8 94.7 17 16 1 Rohm Electronics 3 4 33.3 465 0.8 95.5 14 17 (3) Powerex 5 3 (40.0) 468 0.6 96.1 16 18 (2) Toshiba 3 3 0.0 471 0.6 96.7 18 19 (1) National Semiconductor 2 2 0.0 473 0.4 97.1 19 20 (1) STC Components 1 2 100.0 475 0.4 97.5 20 21 (1) NEC 1 1 0.0 476 0.2 97.7 NA 22 TMS 1 477 0.2 97.9 11 NA ABB-HAFO 14 (100.0) 12 NA Plessey Semiconductors 11 (100.0) 23 NA AT&T 1 (100.0) 22 NA GE Solid State 1 (100.0)

European Others 2 2 0.0 479 0.4 98.4 North American Others 4 2 (50.0) 481 0.4 98.8 Japanese Others 1 6 500.0 487 1.2 100.0

Tcrtal All Companies 473 487 3.0 100.0 Total European 296 278 (6.1) 57.1 Total North American 168 188 11.9 38.6 Total Japanese 9 21 133.3 4.3 NA = Not Applicable Souice: Dataquest (June 1990)

Table 29 1989 European Thyristor Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

2 1 1 SGS-Thomson 32 33 3.1 33 17.8 17.8 3 2 1 Siemens 19 23 21.1 56 12.4 30.3 NA 3 ABB-IXYS 23 79 12.4 42.7 4 4 0 TAG 18 17 (5.6) 96 9.2 51.9 5 5 0 Telefunken Electronic 17 16 (5.9) 112 8.6 60.5 6 6 0 Semikron 17 16 (5.9) 128 8.6 69.2 8 7 1 International Rectifier 13 13 0.0 141 7.0 76.2 7 8 (1) Powerex 15 12 (20.0) 153 6.5 82.7 9 9 0 Philips 9 9 0.0 162 4.9 87.6 10 10 0 Marconi Electronic Devices 9 8 (11.1) 170 4.3 91.9 11 11 0 Motorola 8 6 (25.0) 176 3.2 95.1 12 12 0 Hitachi 3 3 0.0 179 1.6 96.8 13 13 0 Mitsubishi 2 3 50.0 182 1.6 98.4 14 14 0 Unitrode 1 1 0.0 183 0.5 98.9 NA 15 NEC 1 184 0.5 99.5 1 NA ABB-HAFO 46 (100.0)

European Others 1 1 0.0 185 0.5 100.0

Total All Companies 210 185 (11.9) 100.0 Total European 168 146 (13.1) 78.9 Total North American 37 32 (13.5) 17.3 Total Japanese 5 7 40.0 3.8 NA = Not Applicable Source: Dataquest (June 1990)

Table 30 1989 European Other Discrete Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

1 1 0 ITT 24 26 8.3 26 18.6 18.6 3 2 1 Siemens 15 22 46.7 48 15.7 34.3 2 3 (1) Semikron 17 17 0.0 65 12.1 46.4 5 4 1 International Rectifier 10 12 20.0 77 8.6 55.0 6 5 1 Philips 8 10 25.0 87 7.1 62.1 4 6 (2) Toshiba 13 9 (30.8) 96 6.4 68.6 8 7 1 Telefunken Electronic 7 7 0.0 103 5.0 73.6 NA 8 Harris 7 110 5.0 78.6 NA 9 Mitsubishi 7 117 5.0 83.6 10 10 0 Motorola 5 5 0.0 122 3.6 87.1 11 11 0 Hitachi 5 5 0.0 127 3.6 90.7 NA 12 Sprague 5 132 3.6 94.3 7 13 (6) ABB-HAFO 8 3 (62.5) 135 2.1 96.4 12 14 (2) Unitrode 1 1 0.0 136 0.7 97.1 13 15 (2) NEC 1 1 0.0 137 0.7 97.9 NA 16 ABB-EXYS 1 138 0.7 98.6 9 NA GE Solid State 6 (100.0)

European Others 1 1 0.0 139 0.7 99.3 Japanese Others 3 1 (66.7) 140 0.7 100.0

Total All Companies 124 140 12.9 100.0 Total European 56 61 8.9 43.6 Total North American 46 56 21.7 40.0 Total Japanese 22 23 4.5 16.4 NA = Not Applicable Source: Dataquest (June 1990)

Table 31 1989 European Optoelectronic Market Share Rankings (Millions of U.S. Dollars) 1988-89 1989 1989 1989 1988 1989 Annual Cum. Market Cum. 1988 1989 Change Sales Sales Growth Sum Share Sum Rank Rank in Rank Ranked Companies ($M) ($M) (Percent) ($M) (Percent) (Percent)

3 1 2 Hewlett-Packard 49 79 61.2 79 21.5 21.5 2 2 0 Siemens 61 68 11.5 147 18.5 40.1 1 3 (2) Telefunken Electronic 65 67 3.1 214 18.3 58.3 4 4 0 Philips 22 21 (4.5) 235 5.7 64.0 7 5 2 Toshiba 17 19 11.8 254 5.2 69.2 5 6 (1) Texas Instruments 20 15 (25.0) 269 4.1 73.3 10 7 3 ABB-HAFO 6 6 0.0 275 1.6 74.9 NA 8 Fujitsu 6 281 1.6 76.6 NA 9 TMS 6 287 1.6 78.2 11 10 1 Motorola 5 5 0.0 292 1.4 79.6 18 11 7 NEC 1 5 400.0 297 1.4 80.9 12 12 0 Hitachi 4 4 0.0 301 1.1 82.0 16 13 3 Sharp 1 4 300.0 305 1.1 83.1 NA 14 Harris 4 309 1.1 84.2 NA 15 AT&T 3 312 0.8 85.0 13 16 (3) Sanyo 2 2 0.0 314 0.5 85.6 15 17 (2) Matsushita (Panasonic) 2 2 0.0 316 0.5 86.1 6 NA Plessey Semiconductors 20 (100.0) 9 NA GE Solid State 8 (100.0) 8 NA TRW 8 (100.0) 14 NA Mitsubishi 2 (100.0) 17 NA Oki Electric 1 (100.0)

European Others 8 8 0.0 324 2.2 88.3 North American Others 4 43 975.0 367 11.7 100.0

Total All Companies 306 367 19.9 100.0 Total European 182 176 (3.3) 48.0 Total North American 94 149 58.5 40.6 Total Japanese 30 42 40.0 11.4 NA = Not .Aj^licabl e Source: Dataquest (Jum! 1990)

FOOTNOTES TO THE TABLES European Companies

ABB-HAFO ABB-HAFO was formerly known as Asea Brown Boveri.

ABB-DCYS ABB-IXYS was formerly the West German-based power semiconductor division of Asea Brown Boveri.

Inmos hmios revenue is included in SGS-Thomson revenue from 1989 onward.

Matra MHS Matra MHS was formerly known as Matra-Harris Semiconducteurs.

SGS-Thomson SGS-Thomson revenue includes Inmos revenue from 1989 onward.

TMS Thomson Composants Militaires et Spatiaux (TMS) revenue was formerly included in SGS-Thomson (30 percent) and the European Others category (70 percent).

North American Companies

AT&T AT&T revenue was formerly included in the North American Others category.

Cypress Cypress revenue was formerly included in the North American Others category.

Harris Harris revenue includes GE Solid State revenue from 1989 onward.

Micron Technology Micron Technology revenue was formerly included in the North American Others category.

Mitel Semiconductor Mitel Semiconductor revenue was formerly included in the North American Others category.

Raytheon Raytheon revenue was formerly included in the North American Others category.

Rockwell Rockwell revenue was formerly included in the North American Others category.

Sprague Sprague revenue was formerly included in the North American Others category.

Unitrode Unitrode revenue was formerly included in the North American Others category.

Japanese Companies

NMB Nippon Miniature Bearings (NMB) revenue was formerly included in the Japanese Others category.

Rohm Electronics Rohm Electronics revenue was formerly included in the Japanese Others category.

Sanyo Sanyo revenue was formerly included in the Japanese Others category.

Sharp Sharp revenue was formerly included in the Japanese Others category.

Sony Sony revenue was formerly included in the Japanese Others category.

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• fc Ciataqyest huropean Semiconductor Market Share Estimates Preliminary 1988 Preliminary 1988 European Semiconductor Market Share Estimates European Components Group

INTRODUCTION

This booklet contains preliminary estimates of semiconductor market shares in the European market for the 1988 calendar year. For reference purposes, corresponding finalized 1987 estimates are also given. European semiconductor market shares for 1988 will be finalized by June 1989.

A table of contents is given overleaf.

Figure 1. Worldwide Semiconductor Market Shares by Vendor 3 Base Figure 2. European Semiconductor Market Shares by Vendor Base Table 1. Worldwide Total Semiconductor Rankings 4 Table 2. European Total Semiconductor Rankings 5 Table 3. European Total Integrated Circuit Rankings 6 Table 4. European Total Bipolar Digital IC Rankings Table 5. European Bipolar TTL IC Rankings 7 Table 6. European Bipolar ECL IC Rankings 8 Table 7. European Bipolar Memory IC Rankings 9 Table 8. European Bipolar Logic IC Rankings 10 Table 9. European MOS Digital IC Rankings 11 Table 10. European NMOS Digital IC Rankings 12 Table 11. European CMOS Digital IC Rankings 13 Table 12. European BiCMOS Digital IC Rankings Table 13. European Other MOS Digital IC Rankings 14 Table 14. European MOS Memory IC Rankings 15 Table 15. European MOS Microcomponent IC Rankings 16 Table 16. European MOS Logic IC Rankings 17 Table 17. European Analog (Linear) IC Rankings 18 Table 18. European Total Discrete Rankings 19 Table 19. European Total Transistor Rankings 20 Table 20. European Total Diode Rankings Table 21. European Thyristor Rankings 21 Table 22. European Other Discrete Rankings 22 Table 23. European Total Optoelectronic Rankings 23 Table 24. Footnotes to the Tables 24 25 26 NOTES TO THE TABLES 27

The semiconductor market share rankings have been presented to show maximum analysis for each product category.

Column 1 shows market share ranking position in 1987 Column 2 shows market share ranking position in 1988 Column 3 shows ranked company's name Column 4 shows market share in 1987 Column 5 shows market share in 1988 Column 6 shows Column 7 shows market share growth 1987 to 1988 Column 8 shows cumulative market share in 1988 Column 9 shows percent market share of TAM in 1988 cumulative percent market share of TAM in 1988 Each of these tables also contains a summary showing the sum of all revenues split by vendor regional base. This gives a final estimate for the TAM in each featured product category. Some 1987 totals do not add because they include companies which no longer feature in the 1988 ranking.

Figure 2 European Semiconductor Market Shares by Vendor Base Percent of Total Market 70

European Vandws U.S. Vendors 60 Japan^e^Bndors Rest of Vtforld

30 -

20 -

1978 1980 19S2 t9e4 1986 1988 Source: Dataquest April 1989 ESIS 1989 Dataquest Incorporated April Table 1 Preliminary 1988 Worldwide Semiconductor Market Share Rankings Semiconductor Category: Total Semiconductor (Millions of U.S. Dollars)

1987 1988 Ranked 1987 1988 Annual Rank Rank Companies Growth %

7 10 Philips* $1,602 $1,764 10.1 13 13 SGS-THOMSON* 859 1,085 26.3 16 20 Siemens 657 784 19.3 27 31 Telefunken 273 302 10.6 32 32 Plessey Electronic 222 284 27.9 53 47 Inmos 91 137 50.5 50 55 ASEA Brown Boveri 103 113 9.7 58 61 Semi kron 79 91 15.2 68 67 Matra Harris 48 71 47.9 76 70 Ericsson 41 52 26.8 69 71 MEDL 47 51 8.5 80 79 Austria Mikro Systeme 32 43 34.4 81 81 Mietec 32 42 31.3 86 90 Eurosil 25 29 16.0 93 98 TAG 21 23 9.5 102 100 STC 12 22 83.3 103 Fagor 20 107 106 ES2 7 14 100.0

*This table to be read in conjunction with Footnotes page

© 1989 Dataquest Incorporated April ESIS Table 2 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total Semiconductor (Millions of U.S. Dollars) 1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 Philips* $930 $1,002 7.7 $1,002 11.8 11.8 2 2 SGS-THOMSON* 537 650 21.0 1,652 7.7 19.5 3 3 Texas Instruments 492 636 29.3 2,288 7.5 27.0 4 4 Motorola 478 616 8.9 2,904 7.3 34.2 5 5 Siemens* 475 571 20.2 3,475 6.7 40.9 7 6 Intel 283 485 71.4 3,960 5.7 46.6 6 7 National Semiconduc;to r 345 390 13.0 4,350 4.6 51.2 8 8 NEC 249 370 48.6 4,720 4.4 55.6 12 9 Toshiba 188 349 85.6 5,069 4.1 59.7 10 10 AMD* 235 279 18.7 5,348 3.3 63.0 .13 11 Hitachi 157 246 56.7 5.594 2.9 65.9 9 12 ITT* 243 246 1.2 5,840 2.9 68.8 11 13 Telefunken* 209 230 10.0 6.070 2.7 71.5 14 14 Plessey* 151 198 31.1 6,268 2.3 73.8 15 15 GE Solid State* 122 141 15.6 6,409 1.7 5.5 29 16 Samsung* 35 134 282.9 6,543 1.6 77.1 16 17 Fujitsu 110 131 19.1 6,674 1.5 78.6 17 18 ASEA Brown Boveri* 91 100 9.9 6,774 1.2 79.8 18 19 Analog 77 96 24.7 6,870 1.1 80.9 20 20 Mitsubishi 53 86 62.3 6,956 1.0 81.9 19 21 International Recti fier 53 66 24.5 7.022 0.8 82.7 25 22 LSI Logic* 40 64 60.0 7.086 0.8 83.5 22 23 Oki 41 58 41.5 7.144 0.7 84.1 21 24 Semikron 49 56 14.3 7,200 0.7 84.8 37 25 Hewlett-Packard 17 53 211.8 7.253 0.6 85.4 28 26 Matra-Harris 35 52 48.6 7,305 0.6 86.0 35 27 Inmos 20 50 150.0 7.355 0.6 86.6 33 28 Matsushita 26 46 76.9 7.401 0.5 87.2 31 29 Austria Mikro Systeme* 32 43 34.4 7.444 0.5 87.7 30 Burr Brown 43 7.487 0.5 88.2 30 31 Ericsson* 34 43 26.5 7,530 0.5 88.7 32 32 Mietec* 32 42 31.3 7,572 0.5 89.2 27 33 MEDL 37 41 10.8 7,613 0.5 89.7 26 34 Siliconix 38 41 7.9 7,654 0.5 90.1 35 IDT* 39 7,693 0.5 90.6 34 36 VLSI Technology* 22 36 63.6 7,729 0.4 91.0 37 Precision Monolithic* 30 1,759 0.4 91.4 24 38 Harris 40 28 (30.0) 7,787 0.3 91.7 36 39 Powerex* 19 22 15.8 7,809 0.3 92.0 44 40 STC* 5 21 320.0 7,830 0.3 92.2 41 Fagor* 20 7,850 0.2 92.4 42 Seiko Epson* 19 7,869 0.2 92.7 38 43 Zilog 17 19 11.8 7,888 0.2 92.9 23 44 General Instrument 40 18 (55.0) 7,906 0.2 93.1 39 45 AG 16 18 12.5 7.924 0.2 93.3 46 Western Digital* 17 7.941 0.2 93.5 43 47 ES2* 6 13 116.7 7.954 0.2 93.7 40 48 Eurosil* n 13 18.2 7,967 0.2 93.8 49 Sony* 9 7.976 0.1 93.9 41 50 Goldstar* 11 4 (63.6) 7.980 0.1 94.0 42 NA TRW 11 0 (100.0) 7.980 0.0 94.0 European Others $44 $52 18.2 $8,032 0.6 94.6 U.S. Dther( s 174 335 2.5 8.367 4.0 98.5 Japan(Bs e Others 21 102 385.7 8,469 1.2 99.7 Rest (o f World Others 4 22 450.0 8,491 0.3 100.0 Total All Companies $6,355 $8,491 33.6 100.0 Total Europe 2,714 3,215 18.5 37.9 Total U.S. 2,746 3.700 34.7 43.6 Total Japanese 845 1,416 67.6 16.7 Total Rest of World 50 160 220.0 1.9

*This table to be read in conjunction with Footnotes page ESIS © 1989 Dataquest Incorporated April Table 3 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Total Integrated Circuit (Millions of U.S. Dollars)

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % %

1 1 Philips* $618 $685 10.8 $685 10.4 10.4 2 2 Texas Instruments 449 596 32.7 1,281 9.0 19.4 6 3 Intel 283 485 71.4 1,766 7.3 26.7 3 4 SGS-THOMSON* 397 483 21.7 2,249 7.3 34.0 5 5 Motorola 302 415 37.4 2,664 6.3 40.3 4 6 National Semiconductor* 335 385 14.9 3.049 5.8 46.2 7 7 Siemens* 244 375 53.7 3.424 5.7 51.8 8 8 NEC 243 364 49.8 3,788 5.5 57.3 n 9 Toshiba 142 280 97.2 4,068 4.2 61.6 9 10 AMD* 235 279 18.7 4,347 4.2 65.8 10 11 Hitachi 146 233 59.6 4,580 3.5 69.3 13 12 Plessey* 120 160 33.3 4,740 2.4 71.8 12 13 ITT* 132 143 8.3 4,883 2.2 73.9 23 14 Samsung* 35 132 277.1 5,015 2.0 75.9 14 15 Fujitsu 110 131 19.1 5,146 2.0 77.9 15 16 GE Solid State* 92 106 15.2 5,252 1.6 79.5 17 17 Analog 77 96 24.7 5,348 1.5 81.0 16 18 Telefunken* 78 84 7.7 5,432 1.3 82.2 18 19 Mitsubishi 48 78 62.5 5,510 1.2 83.4 21 20 LSI Logic* 40 64 60.0 5,574 1.0 84.4 19 21 Oki 41 57 39.0 5.631 0.9 85.2 22 22 Matra-Harris 35 52 48.6 5.683 0.8 86.0 31 23 Inmos 20 50 150.0 5.733 0.8 86.8 24 24 Austria Mikro Systeme* 32 43 34.4 5,776 0.7 87.4 25 Burr Brown* 43 5,819 0.7 88.1 26 26 Mietec* 32 42 31.3 5,861 0.6 88.7 25 27 Ericsson* 32 41 28.1 5,902 0.6 89.4 28 IDT* 39 5,941 0.6 89.9 29 29 VLSI Technology* 22 36 63.6 5.977 0.6 90.5 36 30 Matsushita 8 31 287.5 6.008 0.5 91.0 31 Precision Monolithic* 30 6.038 0.5 91.4 20 32 Harris 40 28 (30.0) 6.066 0.4 91.8 28 33 ASEA Brown Boveri* 23 25 8.7 6.091 0.4 92.2 30 34 MEDL 21 23 9.5 6.114 0.4 92.6 38 35 STC* 5 20 300.0 6.134 0.3 92.9 36 Seiko Epson* 19 6,153 0.3 93.2 32 37 Zilog 17 19 11.8 6,172 0.3 93.4 27 38 Siliconix 25 18 (28.0) 6,190 0.3 93.7 39 Western Digital* 17 6,207 0.3 94.0 37 40 ES2* 6 13 116.7 6,220 0.2 94.2 34 41 Eurosil* 11 13 18.2 6,233 0.2 94.4 42 Sony* 9 6,242 0.1 94.5 35 43 Goldstar* 11 4 (63.6) 6,246 0.1 94.6 European Others $23 $28 21.7 $6,274 0.4 95.0 U.S. Others 134 262 95.5 6,536 4.0 99.0 Japanese Others 12 46 283.3 6,582 0.7 99.7 Rest of World Others 4 22 450.0 6,604 0.3 100.0 Total All Companies $4,693 $6,604 40.7 100.0 Total Europe 1,697 2,137 25.9 32.4 Total U.S. 2,196 3.061 39.4 46.4 Total Japanese 750 1.248 66.4 18.9 Total Rest of World 50 158 216.0 2.4

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1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 Texas Instruments $161 $204 26.7 $204 25.0 25.0 2 2 AMD* 109 119 9.2 323 14.6 39.6 3 3 Philips* 97 119 22.7 442 14.6 54.2 4 4 National Semiconductor* 94 110 17.0 552 13.5 67.7 7 5 Plessey* 41 60 46.3 612 7.4 75.1 6 6 Motorola 53 55 3.8 667 6.8 81.8 5 7 Siemens* 61 28 (54.1) 695 3.4 85.3 9 8 Telefunken* 15 17 13.3 712 2.1 87.4 8 9 Fujitsu 26 13 (50.0) 725 1.6 89.0 10 10 . SGS-THOMSON* 14 11 (21.4) 736 1.4 90.3 11 11 Intel 8 10 25.0 746 1.2 91.6 12 STC* 7 753 0.9 92.4 13 13 Hitachi 5 6 20.0 759 0.7 93.2 14 14 NEC 5 6 20.0 765 0.7 93.9 12 15 Ericsson* 5 5 0.0 770 0.6 94.5 16 Goldstar* 3 773 0.4 94.9 17 17 Matsushita 2 3 50.0 776 0.4 95.2 18 Toshiba 3 779 0.4 95.6 European Others $7 $8 14.3 $787 1.0 96.6 U.S. Others 14 28 100.0 815 3.4 100.0 Total All Companies $725 $815 12.4 100.0 Total Europe 243 255 4.9 31.3 Total U.S. 439 526 9.8 64.5 Total Japanese 43 31 (27.9) 3.8 Total Rest of World 3 0.4

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1987 1988 Ranked Annual Cum Market Cum Rank Rank Companies 1987 1988 Growth Sum Share Sum $ $ % $ % % 1 1 Texas Instruments 161 204 26.7 204 31.4 31.4 2 2 Philips* 91 107 17.6 311 16.5 47.9 3 3 AMD* 90 95 5.6 406 14.6 62.6 4 4 National Semiconducto r* 75 95 26.7 501 14.6 77.2 . 5 5 Motorola 41 38 (7.3) 539 5.9 83.1 6 6 Telefunken* 15 17 13.3 556 2.6 85.7 7 7 SGS-THOMSON* 14 11 (21.4) 567 88.9 13 9 Plessey* 5 7 40.0 584 1.1 90.0 8 10 Fujitsu 12 6 (50.0) 590 0.9 90.9 12 11 Hitachi 5 6 20.0 596 0.9 91.8 12 Ericsson* 5 5 0.0 601 0.8 92.6 1n4 13 NEC 4 5 25.0 606 0.8 93.4 9 14 Siemens* 9 4 (55.6) 610 0.6 94.0 15 Goldstar* 3 613 0.5 94.5 17 16 Matsushita 2 3 50.0 616 0.5 94.9 European Others 5 5 0.0 621 0.8 95.7 U.S. Others 14 28 100.0 649 4.3 100.0 Total All Companies 564 649 15.1 100.0 Total Europe 147 156 6.1 24.0 Total U.S. 389 470 20.8 72.4 Total Japanese 28 20 (28.6) 3.1 Total Rest of World 3 0.5

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1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 2 1 Plessey* $36 $53 47.2 $53 31.9 31.9 3 2 AMD* 19 24 26.3 77 14.5 46.4 1 3 Siemens* 52 24 (53.8) 101 14.5 60.9 6 4 Motorola 12 17 41.7 118 10.2 71.1 4 5 National Semiconductoir * 19 15 (21.1) 133 9.0 80.1 7 6 Philips* 6 12 100.0 145 7,2 87.4 5 7 Fujitsu 14 7 (50.0) 152 4.2 91.6 8 STC* 7 159 4.2 95.8 9 Toshiba 3 162 1.8 97.6 8 10 NEC 1 1 0.0 163 0.6 98.2 European Others $2 $3 50.0 $166 1.8 100.0 Total All Companies $161 $166 3.1 100.0 Total Europe 96 99 3.1 59.6 Total U.S. 50 56 12.0 33.7 Total Japanese 15 11 (26.7) 6.6

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ESIS © 1989 Dataquest Incorporated April $ Table 7 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Bipolar Memory IC (Millions of U.S. Dollars) 1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 AMD* $26 $30 15.4 $30 32.6 32.6 2 2 Philips* 14 15 7.1 45 16.3 48.9 3 3 Texas Instruments 10 12 20.0 57 13.0 62.0 4 4 National Semiconductor* 9 10 11.1 67 10.9 72.8 5 5 Fujitsu 8 8 0.0 75 8.7 81.5 7 6 NEC 3 3 0.0 78 3.3 84.8 9 7 Hitachi 2 2 0.0 80 2.2 87.0 10 8 Motorola 1 1 0.0 81 1.1 88.0 8 9 Siemens* 3 1 (66.7) 82 1.1 89.1 European Others $1 $1 0.0 $83 1.1 90.2 U.S. Others 5 9 80.0 92 9.8 100.0 Total All Companies $85 $92 8.2 100.0 Total Europe 21 17 (19.0) 18.5 Total U.S. 51 62 21.6 67.4 Total Japanese 13 13 0.0 14.1

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10 © 1989 Dataquest Incorporated April ESIS Table 8 Preliminary 1988 European Semiconductor Market Share Rankings Semiconductor Category: Bipolar Logic IC (Millions of U.S. Dollars) 1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % %

1 1 Texas Instruments $151 $192 27.2 $192 26.6 26.6 4 2 Philips* 83 104 25.3 296 14.4 40.9 2 3 National Semiconductor* 85 100 17.6 396 13.8 54.8 3 4 AMD* 83 89 7.2 485 12.3 67.1 7 5 Plessey* 41 60 46.3 545 8.3 75.4 6 6 Motorola 52 54 3.8 599 7.5 82.9 5 7 Siemens* 58 27 (53.4) 626 3.7 86.6 9 8 Telefunken* 15 17 13.3 643 2.4 88.9 10 9 SGS-THOMSON* 14 11 (21.4) 654 1.5 90.5 10 Intel 8 10 25.0 664 1.4 91.8 n 11 STC* 7 671 1.0 92.8 12 12 Ericsson* 5 5 0.0 676 0.7 93.5 8 13 Fujitsu 18 5 (72.2) 681 0.7 94.2 13 14 Hitachi 3 4 33.3 685 0.6 94.7 15 Goldstar* 3 688 0.4 95.1 15 16 Matsushita 2 3 50.0 691 0.4 95.5 16 17 NEC 2 3 50.0 694 0.4 96.0 18 Toshiba 3 697 0.4 96.4 European Others $6 $7 16.7 $704 1.0 97.3 U.S. Others 9 19 ni.i 723 2.6 100.0 Total All Companies $640 $723 13.0 100.0 Total Europe 222 238 7.2 32.9 Total U.S. 388 464 19.6 64.2 Total Japanese 30 18 (40.0) 2.5 Total Rest of World 3 0.4

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1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % %

1 1 Intel $275 $475 72.7 $475 10.9 10.9 3 2 NEC 215 355 65.1 830 8.2 19.1 5 3 Texas Instruments 193 287 48.7 1,117 6.6 25.7 2 4 Philips* 262 276 5.3 1,393 6.4 32.1 4 5 SGS-THOMSON* 209 262 25.4 1,655 6.0 38.1 8 6 Toshiba 125 260 108.0 1,915 6.0 44.1 6 7 Motorola 163 255 56.4 2,170 5.9 50.0 8 Siemens* 103 245 137.9 2,415 5.6 55.6 n7 9 Hitachi 136 221 62.5 2,636 5.1 60.7 10 10 AMD* 116 146 25.9 2,782 3.4 64.1 9 11 National Semiconductor * 121 130 7.4 2,912 3.0 67.1 19 12 Samsung* 35 125 257.1 3,037 2.9 70.0 13 13 Fujitsu 84 118 40.5 3.155 2.7 72.7 12 14 ITT* 99 102 3.0 3,257 2.4 75.0 15 15 Mitsubishi 45 78 73.3 3.335 1.8 76.8 14 16 GE Solid State* 64 73 14.1 3.408 1.7 78.5 16 17 LSI Logic* 40 64 60.0 3.472 1.5 80.0 17 18 Oki 39 57 46.2 3.529 1.3 81.3 21 19 Matra-Harris 30 52 73.3 3,581 1.2 82.5 18 20 Plessey* 35 51 45.7 3,632 1.2 83.7 26 21 Inmos 20 50 150.0 3,682 1.2 84.8 20 22 Mietec* 32 42 31.3 3,724 1.0 85.8 22 23 Austria Mikro Systeme' 29 39 34.5 3,763 0.9 86.7 24 IDT* 39 3,802 0.9 87.6 24 25 VLSI Technology* 22 36 63.6 3,838 0.8 88.4 23 26 ASEA Brown Boveri* 23 25 8.7 3,863 0.6 89.0 25 27 MEDL 21 23 9.5 3.886 0.5 89.5 37 28 Matsushita 1 22 2.100.0 3,908 0.5 90.0 27 29 Zilog 17 19 11.8 3.927 0.4 90.5 30 Seiko Epson* 18 3.945 0.4 90.9 31 Western Digital* 17 3.962 0.4 91.3 29 32 Telefunken* 14 15 7.1 3.977 0.4 91.6 30 33 Ericsson* 14 27.3 3.991 0.3 91.9 35 34 ES2* n6 13 116.7 4.004 0.3 92.2 31 35 Eurosil* 11 13 18.2 4.017 0.3 92.5 28 36 Harris 14 10 (28.6) 4.027 0.2 92.8 36 37 STC* 5 9 80.0 4,036 0.2 93.0 38 Analog 6 4.042 0.1 93.1 39 Sony* 5 4.047 0.1 93.2 33 40 Goldstar* 11 1 (90.9) 4,048 0.0 93.3 European Others $14 $18 28.6 $4,066 0.4 93.7 U.S. Others 78 207 165.4 4,273 4.8 98.4 Japanese Others 12 46 283.3 4,319 1.1 99.5 Rest of World Others 4 22 450.0 4,341 0.5 100.0 Total All Companies $2,753 $4,341 57.7 100.0 Total Europe 825 1,147 39.0 26.4 Total U.S. 1,221 1,866 52.8 43.0 Total Japanese 657 1,180 79.6 27.2 Total Rest of World 50 148 196.0 3.4

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1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % %

1 1 Intel $229 $257 12.2 $257 14.4 14.4 3 2 Texas Instruments 136 194 42.6 451 10.9 25.3 7 3 Siemens* 96 179 86.5 630 10.1 35.4 5 4 SGS-THOMSON* 117 137 17.1 767 7.7 43.1 6 5 AMD* 111 129 16.2 896 7.3 50.4 2 6 NEC 165 124 (24.8) 1.020 7.0 57.3 4 7 Philips* 118 114 (3.4) 1.134 6.4 63.7 10 8 Motorola 58 108 86.2 1,242 6.1 69.8 13 9 Toshiba 37 80 116.2 1,322 4.5 74.3 8 10 Hitachi 63 73 15.9 1,395 4.1 78.4 19 11 Samsung* 9 60 566.7 1,455 3.4 81.8 12 12 Fujitsu 37 47 27.0 1,502 2.6 84.4 11 13 ITT* 52 47 (9.6) 1,549 2.6 87.0 9 14 National Semiconductor* 62 40 (35.5) 1,589 2.3 89.3 14 15 Mitsubishi 25 26 4.0 1,615 1.5 90.7 15 16 Oki 16 22 37.5 1,637 1.2 92.0 16 17 Telefunken* 14 15 7.1 1,652 0.8 92.8 17 18 Zilog 14 15 7.1 1,667 0.8 93.7 20 19 Plessey* 7 10 42.9 1,677 0.6 94.2 21 20 Austria Mikro Systeme' 6 8 33.3 1,685 0.5 94.7 22 21 Inmos 4 7 75.0 1,692 0.4 95.1 22 Mietec* 7 1,699 0.4 95.5 23 Matra Harris 3 1,702 0.2 95.6 24 STC* 1 1,703 0.1 95.7 European Others $4 $6 50.0 $1,709 0.3 96.0 U.S. Others 43 71 65.1 1,780 4.0 100.0 Total All Companies $1,434 $•1,78 0 24.1 100.0 Total Europe 366 487 33.1 27.4 Total U.S. 716 861 20.3 48.4 Total Japanese 343 372 8.5 20.9 Total Rest of World 9 60 566.7 3.4

*This table to be read in conjunction with Footnotes page

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % n 1 Intel $ 46 $218 373.9 $218 8.9 8.9 9 2 NEC 50 213 326.0 431 8.7 17.6 4 3 Toshiba 88 180 104.5 611 7.4 25.0 1 4 Philips* 144 162 12.5 773 6.6 31.6 2 5 Motorola 104 147 41.3 920 6.0 37.6 3 6 SGS-THOMSON* 92 125 35.9 1.045 5.1 42.7 5 7 Hitachi 70 99 41.4 1,144 4.0 46.7 6 8 National Semiconductor* 59 89 50.8 1,233 3.6 50.4 8 9 Texas Instruments 52 87 67.3 1,320 3.6 53.9 10 10 Fujitsu 46 71 54.3 1,391 2.9 56.8 7 11 GE Solid State* 58 66 13.8 1,457 2.7 59.5 16 12 Samsung* 26 65 150.0 1,522 2.7 62.2 31 13 Siemens* 6 65 983.3 1,587 2.7 64.8 13 14 LSI Logic* 40 63 57.5 1,650 2.6 67.4 22 15 Mitsubishi 20 52 160.0 1.702 2.1 69.5 14 16 Matra-Harris 30 49 63.3 1,751 2.0 71.5 12 17 ITT* 45 48 6.7 1,799 2.0 73.5 24 18 Inmos 16 43 168.8 1,842 1.8 75.3 15 19 Plessey* 27 40 48.1 1.882 1.6 76.9 20 IDT* 39 1.921 1.6 78.5 20 21 VLSI Technology* 22 36 63.6 1.957 1.5 79.9 19 22 Oki 23 35 52.2 1.992 1.4 81.4 18 23 Austria Mikro Systeme* 23 31 34.8 2,023 1.3 82.6 17 24 ASEA Brown Boveri* 23 25 8.7 2,048 1.0 83.7 21 25 MEDL 21 23 9.5 2,071 0.9 84.6 36 26 Matsushita 1 22 2,100.0 2,093 0.9 85.5 27 Seiko Epson* 18 2,111 0.7 86.2 32 28 AMD* 5 17 240.0 2,128 0.7 86.9 23 29 Mietec* 18 17 (5.6) 2,145 0.7 87.6 30 Western Digital* 17 2.162 0.7 88.3 26 31 Ericsson* 11 14 27.3 2.176 0.6 88.9 30 32 ES2* 6 13 116.7 2,189 0.5 89.4 27 33 Eurosil* 11 13 18.2 2,202 0.5 89.9 25 34 Harris 14 10 (28.6) 2,212 0.4 90.3 35 Analog 6 2,218 0.3 90.6 33 36 STC* 5 6 20.0 2,224 0.3 90.8 37 Sony* 5 2,229 0.2 91.0 34 38 Zilog 3 4 33.3 2,233 0.2 91.2 28 39 Goldstar* 11 1 (90.9) 2,234 0.0 91.2 European Others $10 $12 20.0 $2,246 0.5 91.7 U.S. Others 34 134 294.1 2,380 5.5 97.2 Japanese Others 12 46 283.3 2,426 1.9 99.1 Rest of World Others 4 22 450.0 2.448 0.9 100.0 Total All Companies $11,28 4 $2,448 90.7 100.0 Total Europe 443 638 44.0 26.1 Total U.S. 490 981 100.2 40.1 Total Japanese 310 741 139.0 30.3 Total Rest of World 41 88 114.6 3.6

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1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 Mietec* $14 $18 28.6 $18 32.1 32.1 2 NEC 18 36 32.1 64.3 2 3 GE Solid State* 6 7 16.7 43 12.5 76.8 4 89.3 3 Hitachi 3 7 133.3 50 12.5 5 2 92.9 STC* 52 3.6 6 2 54 96.4 7 Texas Instruments 1 55 3.6 98.2 8 LSI Logic* r* 1 56 1.8 100.0 National Semiconductoi 1.8 Total All Companies $24 $56 133.3 100.0 Total Europe 14 20 42.9 35.7 Total U.S. 7 11 57.1 19.6 Total Japanese 3 25 733.3 44.6

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1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % N/A ^ Hitachi $42 $42 73.7 73.7 2 2 ITT* $2 7 250.0 49 12.3 86.0 1 3 Texas Instruments 5 4 (20.0) 53 7.0 93.0 4 4 Plessey* 1 1 0.0 54 1.8 94.7 96.5 5 5 1 1 0.0 55 1.8 Siemens* 1 2 57 3.5 100.0 U.S. Others 100.0 Total All Companies $11 $57 418.2 100.0 Total Europe 2 2 0.0 3.5 Total U.S. 8 13 62.5 22.8 Total Japanese 1 42 4,100.0 73.7

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1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 2 1 NEC $100 $206 106.0 $206 12.5 12.5 1 2 Texas Instruments 108 195 80.6 401 11.8 24.3 5 3 Toshiba 77 187 142.9 588 11.3 35.7 4 4 Hi tachi 83 138 66.3 726 8.4 44.0 9 5 Siemens* 33 130 293.9 856 7.9 51.9 10 6 Samsung* 32 120 275.0 976 7.3 59.2 6 7 Fujitsu 68 97 42.6 1,073 5.9 65.1 3 8 Intel 98 97 (1.0) 1,170 5.9 71.0 7 9 SGS-THOMSON* 53 82 54.7 1,252 5.0 75.9 8 10 Mitsubishi 39 70 79.5 1,322 4.2 80.2 n 11 AMD* 27 54 100.0 1,376 3.3 83.4 12 12 Oki 26 38 46.2 1,414 2.3 85.7 14 13 National Semiconductor* 12 30 150.0 1,444 1.8 87.5 14 IDT* 27 1,471 1.6 89.2 13 15 Motorola 12 25 108.3 1,496 1.5 90.7 19 16 Inmos 7 23 228.6 1,519 1.4 92.1 22 17 Matsushita 1 22 2,100.0 1,541 1.3 93.4 16 18 Matra-Harri s 9 20 122.2 1,551 1.2 94.6 17 19 Philips* 8 14 75.0 1,575 0.9 95.5 20 Seiko Epson* 11 1,586 0.7 96.2 18 21 GE Solid State* 7 8 14.3 1,594 0.5 96.6 22 Sony* 5 1,599 0.3 96.9 20 23 Harris 6 4 (33.3) 1,603 0.2 97.2 24 24 VLSI Technology* 1 4 300.0 1,607 0.2 97.4 21 25 Austria Mikro Systeme* 2 3 50.0 1,610 0.2 97.6 23 26 MEDL 1 1 0.0 1,611 0.1 97.7 27 STC* 1 1,612 0.1 97.7 - European Others $1 $2 100.0 $1,614 0.1 97.8 U.S. Others 14 13 (7.1) 1,627 0.8 98.6 Rest of World Others 4 22 450.0 1,649 1.3 100.0 Total All Companies $838 $•1,64 9 96.8 100.0 Total Europe 114 276 142.1 16.7 Total U.S. 285 457 60.4 27.7 Total Japanese 394 774 96.4 46.9 Total Rest of World 45 142 215.6 8.6

*This table to be read in conjunction with Footnotes page

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 Intel $162 $351 116.7 $351 27.8 27.8 2 2 Motorola 98 150 53.1 501 11.9 39.7 3 3 NEC 90 109 21.1 610 8.6 48.3 4 4 SGS-THOMSON* 60 77 28.3 687 6.1 54.4 7 5 Hitachi 44 71 61.4 758 5.6 60.1 6 6 Philips* 54 56 3.7 • 814 4.4 64.5 10 7 Siemens* 23 50 117.4 864 4.0 68.5 8 8 Texas Instruments 38 48 26.3 912 3.8 72.3 5 9 National Semiconductor* 54 40 (25.9) 952 3.2 75.4 9 10 AMD* 36 34 (5.6) 986 2.7 78.1 14 11 Inmos 13 27 107.7 1.013 2.1 80.3 11 12 Toshiba 21 27 28.6 1,040 2.1 82.4 12 13 Zilog 17 19 11.8 1,059 1.5 83.9 14 Western Digital* 17 1,076 1.4 85.3 16 15 Oki 12 16 33.3 1,092 1.3 86.5 15 16 GE Solid State* 12 15 25.0 1,107 1.2 87.7 13 17 Matra-Harris 15 14 (6.7) 1,121 1.1 88.8 20 18 Fujitsu 4 9 125.0 1,130 0.7 89.5 19 19 Mitsubishi 6 8 33.3 1.138 0.6 90.2 17 20 ITT* 10 7 (30.0) 1,145 0.6 90.7 21 Analog 6 1,151 0.5 91.2 18 22 Harris 8 6 (25.0) 1,157 0.5 91.7 23 IDT* 6 1,163 0.5 92.2 24 VLSI Technology* 5 1,168 0.4 92.6 21 25 Eurosil* 2 1 (50.0) 1,169 0.1 92.7 23 26 MEDL 1 1 0.0 1.170 0.1 92.7 U.S. Others 11 82 645.5 $1,252 6.5 99.2 Japanese Others 1 10 900.0 1,262 0.8 100.0 Total All Companies $794 $1,262 58.9 100.0 Total Europe 168 226 34.5 17.9 Total U.S. 448 786 75.4 62.3 Total Japanese 178 250 40.4 19.8

"This table to be read in conjunction with Footnotes page

1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 Philips* $200 $206 3.0 $206 14.4 14.4 2 2 SGS-THOMSON* 96 103 7.3 309 7.2 21.6 3 3 ITT* 89 95 6.7 404 6.6 28.3 6 4 Motorola 53 80 50.9 484 5.6 33.8 7 5 Siemens* 47 65 38.3 549 4.6 38.4 10 6 LSI Logic* 40 64 60.0 613 4.5 42.9 4 7 National Semiconductor* 55 60 9.1 673 4.2 47.1 5 8 AMD* 53 58 9.4 731 4.1 51.1 9 Plessey* 35 51 45.7 782 3.6 54.7 n.9 10 GE Solid State* 45 50 11.1 832 3.5 58.2 14 11 Toshiba 27 46 70.4 878 3.2 61.4 8 12 Texas Instruments 47 44 (6.4) 922 3.1 64.5 12 13 Mietec* 32 42 31.3 964 2.9 67.4 15 14 NEC 25 40 60.0 1.004 2.8 70.2 13 15 Austria Mikro Systeme* 27 36 33.3 1,040 2.5 72.8 19 16 Intel 15 27 80.0 1.067 1.9 74.7 17 17 VLSI Technology* 21 27 28.6 1.094 1.9 76.5 16 18 ASEA Brown Boveri* 23 25 8.7 1.119 1.8 78.3 18 19 MEDL 19 21 10.5 1.140 1.5 79.8 28 20 Matra Harris 6 18 200.0 1.158 1.3 81.0 20 21 Telefunken* 14 15 7.1 1.173 1.1 82.1 22 22 Ericsson* 11 14 27.3 1.187 1.0 83.1 27 23 ES2* 6 13 116.7 1.200 0.9 84.0 23 24 Eurosil* 9 12 33.3 1.212 0.8 84.8 21 25 Fujitsu 12 12 0.0 1.224 0.8 85.6 25 26 Hitachi 9 12 33.3 1.236 0.8 86.5 29 27 STC* 5 8 60.0 1.244 0.6 87.0 28 Seiko Epson* 7 ^ 1.251 0.5 87.5 29 IDT* 6 1.257 0.4 88.0 30 30 Samsung* 3 5 66.7 1,262 0.4 88.3 32 31 Oki 1 3 200.0 1.265 0.2 88.5 31 32 Goldstar* 2 1 (50.0) 1.266 0.1 88.6 European Others $13 $16 23.1 $1,282 1.1 89.7 U.S. Others 53 112 111.3 1.394 7.8 97.5 Japanese Others 11 36 227.3 1.430 2.5 100.1 Total All Companies $1,121 $1,430 27.6 100.0 Total Europe 543 645 18.8 45.1 Total U.S. 488 623 27.7 43.6 Total Japanese 85 156 83.5 10.9 Total Rest of World 5 6 20.0 0.4

*This table to be read in conjunction with Footnotes page

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % %

1 1 Philips* $259 $290 12.0 $290 20.0 20.0 2 2 SGS-THOMSON« 174 210 20.7 500 14.5 34.5 3 3 National Semiconductor* 120 145 20.8 645 10.0 44.5 5 4 Motorola 86 105 22.1 750 7.3 51.8 4 5 Texas Instruments 95 105 10.5 855 7.3 59.0 6 6 Siemens* 80 102 27.5 957 7.0 66.1 7 7 Analog 77 90 16.9 1,047 6.2 72.3 8 8 Telefunken* 49 52 6.1 1,099 3.6 75.9 9 9 Plessey* 44 49 11.4 1.148 3.4 79.3 10 Burr Brown* 43 1,191 3.0 82.2 10 n ITT* 33 41 24.2 1,232 2.8 85.1 11 12 GE Solid State* 28 33 17.9 1,265 2.3 87.4 13 Precision Monolithic* 30 1,295 2.1 89.4 16 14 Ericsson* 16 22 37.5 1,317 1.5 90.9 12 15 Harris 26 18 (30.8) 1,335 1.2 92.2 14 16 Siliconix 17 18 5.9 1,353 1.2 93.4 15 17 Toshiba 17 17 0.0 1,370 1.2 94.6 17 18 AMD* 10 14 40.0 1,384 1.0 95.6 19 Samsung* 7 1,391 0.5 96.0 18 20 Hitachi 5 6 20.0 1,397 0.4 96.4 19 21 Matsushita 5 6 20.0 1,403 0.4 96.9 20 22 Austria Mikro Systeme* 3 4 33.3 1,407 0.3 97.1 23 Sony* 4 1,411 0.3 97.4 24 STC* 4 1,415 0.3 97.7 13 25 NEC 23 3 (87.0) 1,418 0.2 97.9 26 Seiko Epson* 1 1,419 0.1 98.0 European Others $2 $2 0.0 $1,421 0.1 98.1 U.S. Others 42 27 (35.7) 1,448 1.9 100.0 Total All Companies $1,215 $1,448 19.2 100.0 Total Europe 629 735 16.9 50.8 Total U.S. 536 669 24.8 46.2 Total Japanese 50 37 (26.0) 2.6 Total Rest of World 7 0.5

^This table to be read in conjunction with Footnotes page

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 Philips* $290 $294 1.4 $294 19.3 19.3 3 2 Motorola 170 196 15.3 490 12.9 32.2 4 3 SGS-THOMSON* 140 167 19.3 657 11.0 43.2 2 4 Siemens* 178 135 (24.2) 792 8.9 52.1 5 5 ITT* 111 103 (7.2) 895 6.8 58.9 6 6 Telefunken* 65 73 12.3 968 4.8 63.7 7 7 ASEA Brown Boveri* 63 69 9.5 1,037 4.5 68.2 8 8 International Rectifier 53 66 24.5 1,103 4.3 72.5 9 9 Semikron 49 56 14.3 1,159 3.7 76.2 10 10 Toshiba 33 52 57.6 1,211 3.4 79.6 12 11 GE Solid State* 23 27 17.4 1,238 1.8 81.4 11 12 , Texas Instruments 28 25 (10.7) 1,263 1.6 83.1 19 13 Siliconix 13 23 76.9 1,286 1.5 84.6 13 14 Powerex* 19 22 15.8 1,308 1.5 86.0 15 Fagor* 20 1,328 1.3 87.3 14 16 General Instrument 16 18 12.5 1,346 1.2 88.5 15 17 MEDL 16 18 12.5 1,364 1.2 89.7 16 18 Plessey* 16 18 12.5 1,382 1.2 90.9 17 19 TAG 16 18 12.5 1,400 1.2 92.0 18 20 Matsushita 15 13 (13.3) 1,413 0.9 92.9 21 21 Hitachi 8 9 12.5 1,422 0.6 93.5 24 22 Mi tsubishi 2 6 200.0 1,428 0.4 93.9 20 23 National Semiconductor* 10 5 (50.0) 1,433 0.3 94.2 23 24 NEC 5 5 0.0 1,438 0.3 94.5 22 25 Hewlett-Packard 7 4 (42.9) 1,442 0.3 94.8 26 Samsung* 2 1,444 0.1 94.9 27 STC* 1 1.445 0.1 95.0 European Others $6 $6 0.0 $1,451 0.4 95.4 U.S. Others 26 44 69.2 1,495 2.9 98.3 Japanese Others 4 26 550.0 1,521 1.7 100.0 Total All Companies $1,384 $•1,52 1 9.9 100.0 Total Europe 839 875 4.3 57.5 Total U.S. 478 533 11.5 35.0 Total Japanese 67 111 65.7 7.3 Total Rest of World 2 0.1

"This table to be read in conjunction with Footnotes page

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 Philips* $175 $175 0.0 $175 24.4 24.4 2 2 Motorola 112 124 10.7 299 17.3 41.6 4 3 SGS-THOMSON* 65 85 30.8 384 11.8 53.5 3 4 Siemens* 88 66 (25.0) 450 9.2 62.7 7 5 Toshiba 22 36 63.6 486 5.0 67.7 5 6 ITT* 39 32 (17.9) 518 4.5 72.1 6 7 Texas Instruments 28 25 (10.7) 543 3.5 75.6 12 8 Siliconix 13 23 76.9 566 3.2 78.8 10 9 GE Solid State* 15 20 33.3 586 2.8 81.6 8 10 International Rectifier 16 20 25.0 606 2.8 84.4 9 11 Telefunken* 16 18 12.5 624 2.5 86.9 11 12 Matsushita 14 12 (14.3) 636 1.7 88.6 16 13 Powerex* 6 8 33.3 644 1.1 89.7 15 14 Plessey* 6 7 16.7 651 1.0 90.7 17 15 MEDL 4 5 25.0 656 0.7 91.4 19 16 Hewlett-Packard 2 4 100.0 660 0.6 91.9 20 17 Mitsubishi 2 4 100.0 664 0.6 92.5 14 18 National Semiconductor* 7 3 (57.1) 667 0.4 92.9 18 19 NEC 3 3 0.0 670 0.4 93.3 20 Samsung* 2 672 0.3 93.6 22 21 ASEA Brown Boveri* 1 1 0.0 673 0.1 93.7 23 22 Hitachi 1 1 0.0 674 0.1 93.9 23 Semikron 1 675 0.1 94.0 European Others $2 $2 0.0 $677 0.3 94.3 U.S. Others 12 15 25.0 692 2.1 96.4 Japanese Others 4 26 550.0 718 3.6 100.0 Total All Companies $663 $718 8.3 100.0 Total Europe 357 360 0.8 50.1 Total U.S. 260 274 5.4 38.2 Total Japanese 46 82 78.3 11.4 Total Rest of World 2 0.3

*This table to be read in conjunction with Footnotes page

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 Philips* $98 $109 11.2 $109 22.6 22.6 4 2 Motorola 43 59 37.2 168 12.2 34.8 5 3 SGS-THOMSON* 31 50 61.3 218 10.4 45.1 2 4 ITT* 72 47 (34.7) 265 9.7 54.9 3 5 Siemens* 48 35 (27.1) 300 7.3 62.1 6 6 Telefunken* 27 29 7.4 329 6.0 68.1 8 7 International Rectifier 18 23 27.8 352 4.8 72.9 7 8 Semikron 19 21 10.5 373 4.4 77.2 9 Fagor* 20 393 4.1 81.4 10 General Instrument 8 18 125.0 411 3.7 85.1 n9 11 ASEA Brown Boveri* 13 14 7.7 425 2.9 88.0 10 12 Plessey* 10 11 10.0 436 2.3 90.3 13 13 MEDL 4 4 0.0 440 0.8 91.1 15 14 Powerex* 3 3 0.0 443 0.6 91.7 16 15 Toshiba 2 3 50.0 446 0.6 92.4 14 16 National Semiconductor* 3 2 (33.3) 448 0.4 92.8 17 17 GE Solid State* 1 1 0.0 449 0.2 93.0 18 18 Matsushita 1 1 0.0 450 0.2 93.2 19 19 NEC 1 1 0.0 451 0.2 93.4 20 STC* 1 452 0.2 93.6 European Others $2 $2 0.0 $454 0.4 94.0 U.S. Others 14 29 107.1 483 6.0 100.0 Total All Companies $423 $483 14.2 100.0 Total Europe 252 296 17.5 61.3 Total U.S. 167 182 9.0 37.7 Total Japanese 4 5 25.0 1.0

"This table to be read in conjunction with Footnotes page

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 1 ASEA Brown Boveri* $41 $46 12.2 $46 22.2 22.2 3 2 SGS-THOMSON* 20 32 60.0 78 15.5 37.7 2 3 Siemens* 26 19 (26.9) 97 9.2 46.9 4 4 Telefunken* 17 19 11.8 116 9.2 56.0 5 5 TAG ' 16 18 12.5 134 8.7 64.7 6 6 Semikron 15 17 13.3 151 8.2 73.0 7 7 International Rectifier 10 13 30.0 164 6.3 79.2 8 8 Powerex* 10 11 10.0 175 5.3 84.5 9 9 MEDL 8 9 12.5 184 4.4 88.9 10 10 • Philips* 8 9 12.5 193 4.4 93.2 11 Motorola 7 8 14.3 201 3.9 97.1 n12 12 Hitachi 3 3 0.0 204 1.5 98.6 13 Mitsubishi 2 206 1.0 99.5 European Others $1 $1 0.0 $207 0.5 100.0 Total All Companies $183 $207 13.1 100.0 Total Europe 152 170 11.8 82.1 Total U.S. 28 32 14.3 15.5 Total Japanese 3 5 66.7 2.4

*This table to be read in conjunction with Footnotes page

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % % 1 ITT* $15 $24 $24 21.2 21.2 3 2 Semikron 17 13.3 41 15.0 36.3 2 3 Siemens* 16 15 (5.3) 56 13.3 49.6 6 4 Toshiba 9 13 44.4 69 11.5 61.1 4 5 International Rectifier 9 10 11.1 79 8.9 69.9 7 6 ASEA Brown Boveri* 8 8 0.0 87 7.1 77.0 10 7 Telefunken* 5 7 40.0 94 6.2 83.2 9 8 GE Solid State* 6 6 0.0 100 5.3 88.5 9 Hitachi 4 5 25.0 105 4.4 92.9 n8 10 Motorola 8 5 (37.5) 110 4.4 97.3 12 11 NEC 1 1 0.0 111 0.9 98.2 5 12 Philips* 9 1 (88.9) 112 0.9 99.1 European Others $1 $1 0.0 $113 0.9 100.0 Total All Companies $115 $113 (1.7) 100.0 Total Europe 78 49 (37.2) 43.4 Total U.S. 23 45 95.7 39.8 Total Japanese 14 19 35.7 16.8

*This table to be read in conjunction with Footnotes page

1988 1988 1988 1987 1988 Ranked 1987 1988 Annual Cum Market Cum Rank Rank Companies Growth Sum Share Sum % % %

1 1 Telefunken* $66 $73 10.6 $73 20.0 20.0 2 2 Siemens* 53 61 15.1 134 16.7 36.6 8 3 Hewlett-Packard 10 49 390.0 183 13.4 50.0 3 4 Philips* 22 23 4.5 206 6.3 56.3 4 5 Plessey* 15 20 33.3 226 5.5 61.8 6 6 Toshiba 13 17 30.8 243 4.6 66.4 5 7 Texas Instruments 15 15 0.0 258 4.1 70.5 10 8 GE Solid State* 7 8 14.3 266 2.2 72.7 12 9 ASEA Brown Boveri* 5 6 20.0 272 1.6 74.3 11 10 Motorola 6 5 (16.7) 277 1.4 75.7 13 11 Hitachi 3 4 33.3 281 1.1 76.8 16 12 Ericsson* 2 2 0.0 283 0.6 77.3 14 13 Matsushita 3 2 (33.3) 285 0.6 77.9 15 14 Mitsubishi 3 2 (33.3) 287 0.6 78.4 17 15 NEC 1 1 0.0 288 0.3 78.7 16 Oki 1 289 0.3 79.0 European Others $15 $18 20.0 $307 4.9 83.9 U.S. Others 14 29 107.1 336 7.9 91.8 Japanese Others 5 30 500.0 366 8.2 100.0 Total All Companies $278 $366 31.7 100.0 Total Europe 178 203 14.0 55.5 Total U.S. 72 106 47.2 29.0 Total Japanese 28 57 103.6 15.6

*This table to be read in conjunction with Footnotes page

Footnotes to the Tables

ASEA Brown Boveri ASEA Brown Boveri revenue includes Brown Boveri revenue from 1987 onwards. Austria Mikro Systeme Austria Mikro Systeme revenue up to 1986 included in U.S. Others. Ericsson Ericsson Components AB known as Rifa prior to 1 March 1988. ES2 European Silicon Structures revenue up to 1986 included in European Others. Fagor Fagor revenue up to 1987 included in European Others. Mietec Mietec revenue up to 1986 included in European Others. Philips Philips revenue includes Signetics Corporation revenue. Plessey Plessey revenue includes Ferranti revenue from 1987 SGS-THOMSON onwards. SGS Thomson revenue includes Thomson revenue from 1987 Siemens onwards. Siemens revenue includes Litronix revenue from 1983 STC (Stantel) onwards. STC revenue included in ITT revenue from 1977 through Telefunken Electronic 1982. AMD Telefunken Electronic formerly known as AEG-Telefunken. AMD revenue includes Monolithic Memories revenue from Burr Brown 1987 onwards. GE Solid State Burr Brown revenue up to 1987 included in U.S. Others. GE Solid State revenue includes RCA revenue from 1987 IDT onwards. ITT IDT revenue up to 1987 included in U.S. Others. LSI Logic ITT revenue includes STC revenue from 1977 through 1982. National Semiconductor LSI Logic revenue up to 1986 included in U.S. Others. National Semiconductor revenue includes Fairchild Powerex revenue from 1987 onwards. Powerex revenue includes Westinghouse revenue from 1986 Precision Monolithic onwards. VLSI Technology Precision Monolithic Revenue up to 1987 included in U.S. Others. Western Digital VLSI Technology revenue up to 1986 included in U.S. Others. Seiko Epson Western Digital revenue up to 1987 included in U.S. Others. Sony Seiko Epson revenue up to 1987 included in Japanese Goldstar Others. Sony revenue up to 1987 included in Japanese Others. Samsung Goldstar revenue up to 1986 included in Total Rest of World. Sfimsung revenue up to 1986 included in Total Rest of World.

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Exchange Rate Tables

Dataquest's European exchange rate tables include data from all Western European countries, each of which has different and variable exchange rates against the US dollar. Where applicable, Dataquest estimates are prepared in terms of local currencies before conversion (where necessary) to US dollars. Dataquest uses exchange rates taken from the Wall Street Journal, which are in turn taken from the Bankers Trust Co. All exchange rates previous to 1990 were sourced from the International Monetary Fund (IMF). All forecasts are prepared using fixed exchange rates based on the last complete historical quarter (currently the fomth quarter of 1990). To maintain consistency across all its analyses, Dataquest makes ongoing adjustments to its forecasts for these currency changes during the year. As a result of this policy, forecast growth rates can become distorted when comparing dollar growth rates with European currency growths. Table 1 provides a summary of yearly average exchange rates in local currency per US dollar for each European region and Japan from 1979 to 1990. Included in Table 1 is the European Currency Unit (ECU). This unit, which was established in March 1979, is the weighted average of the currencies of all member countries of the European Conununity (EC). It is calculated by the IMF from each country's gross national product (GNP) and foreign trade. Table 2 shows the quarterly exchange rate for 1990 for each of these regions. Also included is the Semiconductor Industry Weighted Average (SIWA). This unit is based on the semiconductor consumption of each European country featured here (EC and non-EC members) and uses the base year 1980 equal to 100 as a reference point. The SIWA is useful for interpreting the effect of European currency fluctuations with respect to the US dollar, specifically for the European semiconductor industry. Dataquest's European local currency forecasts and historical data has previously been recorded using the SIWA as a measure of local currency. Since September 1990 we have changed to using ECUs. As it is becoming increasingly common for companies to pubUsh their annual reports in ECUs, all future local currency forecasts prepared by Dataquest wUl be published in ECUs.

Table 1

European Currencies—1979 to 1990 (Local Currency per US Dollar) Region 1979 1980 1981 1982 1983 1984

Austria 13.37 12.94 15.93 17.06 17.97 20.00 Belgium 29.32 29.25 37.13 45.69 51.13 57.78 Denmark 5.26 5.64 7.13 8.33 9.15 10.36 Finland 3.90 3.73 4.31 4.82 5.57 6.01 France 4.25 4.23 5.43 6.57 7.62 8.74 Ireland 0.49 0.49 0.62 0.70 0.80 0.92 Italy 830.90 856.50 1,136.80 1,352.50 1,518.90 1,757.00 Luxembourg 29.32 29.24 37.13 45.69 51.13 62.34 Netherlands 2.01 1.99 2.49 2.67 2.85 3.21 Norway 5.06 4.94 5.74 6.45 7.29 8.16 Portugal 48.92 50.07 61.55 79.48 110.78 146.39 Spain 67.13 71.70 92.31 109.86 143.43 160.76 Sweden 4.29 4.23 5.06 6.28 7.67 8.27 Switzerland 1.66 1.67 1.96 2.03 2.10 2.35 United Kingdom 0.47 0.43 0.49 0.57 0.66 0.75 West Germany 1.83 1.82 2.26 2.43 2.55 2.85

ECU 0.69 0.76 0.92 1.02 1.12 1.27

Japan 219.14 226.75 220.54 249.05 237.52 237.44

SIWA (Base 1980 = 100) 101.66 100.00 123.69 141.30 157.59 178.06

(CcHitinued)

Table 1 (Continued)

European Currencies—1979 to 1990 (Local Currency per US Dollar) Region 1985 1986 1987 1988 1989 1990

Austria 20.69 15.26 12.64 12.35 13.24 11.36 Belgium 59.41 44.66 37.34 36.77 39.44 33.41 Denmark 10.60 8.09 0.84 6.73 7.32 6.18 Finland 6.20 5.07 4.40 4.18 4.30 3.82 France 8.98 6.92 6.01 5.96 6.39 5.44 Ireland 0.94 0.75 0.67 0.66 0.71 0.60 Italy 1,909.50 1,490.00 1,296.10 1,301.00 1,373.60 1,197.22 Luxembourg 59.38 44.66 37.34 36.77 39.44 33.41 Netherlands 3.32 2.45 2.03 1.98 2.12 1.82 Norway 8.60 7.39 6.74 6.52 6.91 6.25 Portugal 170.40 149.54 140.88 143.96 157.62 142.40 Spain 170.05 139.97 123.56 116.49 118.55 102.03 Sweden 8.60 7.12 6.34 6.13 6.45 5.92 Switzerland 2.46 1.80 1.49 1.46 1.64 1.39 United Kingdom 0.77 0.68 0.61 0.56 0.61 0.56 West Germany 2.94 2.17 1.80 1.76 1.88 1.62

ECU 1.31 1.02 0.87 0.84 0.92 0.79

Japan 238.54 168.49 144.43 128.11 138.07 144.71

SIWA (Base 1980 = 100) 184.70 145.89 125.52 121.46 130.20 113.78 Souce: Dataquest (Match 1991)

Table 2 1990 Quarterly European Currencies (Local Currency per US Dollar) Region 1Q90 2Q90 3Q90 4Q90 1990

Austria 11.90 11.80 11.21 10.54 11.36 Belgium 35.29 34.60 32.81 30.93 33.41 Denmark 6.52 6.39 6.08 5.74 6.18 Finland 3.99 3.96 3.75 3.59 3.82 France 5.74 5.64 5.34 5.05 5.44 Ireland 0.64 0.63 0.59 0.56 0.60 Italy 1,254.66 1,231.66 1,176.27 1,126.28 1,197.22 Luxembourg 35.29 34.60 32.81 30.93 33.41 Netherlands 1.91 1.89 1.80 1.69 1.82 Norway 6.53 6.49 6.15 5.85 6.25 Portugal 148.86 147.90 140.62 132.22 142.40 Spain 109.08 105.60 98.60 94.85 102.03 Sweden 6.15 6.08 5.86 5.60 5.92 Switzerland 1.51 1.44 1.33 1.27 1.39 0.61 0.60 0.54 0.51 United Kingdom 0.56 1.69 1.68 1.59 1.50 1.62 West Germany ECU 0.83 0.82 0.77 0.73 0.79

Japan 147.92 155.35 145.07 130.50 144.71

SIWA (Base 1980 = 100) 120.18 118.61 111.06 105.26 113.78 Source: Dataquest (Match 1991)

2 March 1990

EUROPEAN SEMICONDUCTOR INDUSTRY SERVICE FILING INSTRUCTIONS

TITLE: Title Page PAGES: 1 page each FILING INSTRUCTIONS; Pile in front of each volume immediately in front of the Introduction tab. This replaces the old Title Page dated 1989, which should now be discarded. AUTHOR: Jennifer Berg

TITLE: Table of Contents PUBLICATION TYPE: Service Section PAGES: 12, each set (3 sets) FILING INSTRUCTIONS; File one set in Volume I, II, and III", directly behind the Table of Contents tab. This section replaces the Table of Contents dated December 1988, which should now be discarded. AUTHOR: Jennifer Berg

TITLE: Newsletter Index PUBLICATION TYPE: Service Section y PAGES: 10, each set (4 sets) FILING INSTRUCTIONS: File one set each in Volume I, II, and III behind the Table of Contents tab, directly behind page 12 of the new Table of Contents. File the fourth set at the front of the Newsletter binder. For your information we have included the 1988 Newsletters. f AUTHOR: Jennifer Berg

1290 Ridder Parl< Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292 *

Page 2

TITLE: Newsletters 1990 tab / PAGES : . . --^h FILING INSTRUCTIONS: File in Newsletters binder, behind page 10 of the Newsletter Index. AUTHOR: Jennifer Berg rCOVERS AND SPINES:- Newsletters Cover and Spine Enclosed you will find a new cover and spine for "your Newsletters 1988-1989 binder. Remove the old cover and spine from the Newsletters 1988-1989 binder and replace them with the new Newsletter cover and spine. Please remove all 1988 newsletters. ? JJ it;- ^•l-T^

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f Dataquest nn a company of MMMB The Dun ScBradstreet Corporation 12 March 1990

EUROPEAN SEMICONDUCTOR INDUSTRY SERVICE FILING INSTRUCTIONS

TITLE: MEMC Electronic Materials SpA PUBLICATION TYPE: Service Section PAGES: FILING INSTRUCTIONS: File in Volume II, behind the 5. Services and Suppliers tab, directly behind page 6 B"^ -. af the LTX Corporation'Êôfiil^. This profile replaces the DNS SpA dated April 1^88, which should now be discarded. H'. AUTHOR: '*^' ^Î^nnifer Berg TITLE: ' Me'fcR' Group fJTT- PUBLICATION TYPE: Service Section PAGES: FILING INSTRUCTIONS: File in Volume II, behind the 5. Services and Suppliers tab, directly behind page 6 of the new MEMC Electronic Materials SpA. This profile replaces the Merck Group dated February 1989, which should now be discarded. AUTHOR: Jennifer Berg TITLE: Plasma Technology, Ltd. PUBLICATION TYPE: Service Section PAGES: FILING INSTRUCTIONS: File in Volume II, behind the 5. Services and Suppliers tab, directly behind page 6 of The Perkin- Elmer Corporation profile. This profile replaces the Plasma Technology, Ltd. dated April 1988, which should now be discarded. AUTHOR: Jennifer Berg

1290 Ridder Parl< Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292 fafge 2

TITLE: Tegadyne, Inc. PUBLICATION TYPE: Service Section PAGES.: S FILING INSfRUCfIONS; File in Volume II, behind the 5. Services and: Suppliers tab, directly behind page 6 of the new Plasma Technology, Ltd profile. This profile replaces the Teradyne, Inc. dafcfd November 1988, which should now he di£MSlieded. AUTHOR: Jennifer B«Eg TITLE: VG Instruments PLC PUBLICATION 'JtPBj Service Section PAGES: 6

FILING INST»tJC^t

AUTHOR: Jennifer Berg TITLE: Toshiba Corporation PUBLICATION TYPE: Service Section UX PAGES: 8 FtLING INSTRUCTIONS; File in Volume III, bfihind the S-T tab, directly behind page 6 of the Texas Instruments, Inc. profile. This profile replaces the Toshiba Corporation dated April 1988, which should now be discarded. ^^^^ J^J-'U AOfaOR: Jennifer Berg ^ ^"^ -^-^^^