North American Company Profiles 8x8

8X8

8x8, Inc. 2445 Mission College Boulevard Santa Clara, California 95054 Telephone: (408) 727-1885 Fax: (408) 980-0432 Web Site: www.8x8.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: 8x8, Inc. • Bucks, England Telephone: (44) (1628) 890984 • Fax: (44) (1628) 890938

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

1992 1993 1994 1995 1996 Sales 36 31 34 20 29 Net Income 5 (1) (0.3) (6) (3) R&D Expenditures 77788

Employees 114 100 105 110 81

Company Overview and Strategy

8x8, Inc. was founded originally as Integrated Information Technology, Inc. (IIT) in 1987 to supply math coprocessors for 286 and later 386 microprocessor chips. Since June 1995, the company has been discontinuing all efforts unrelated to video conferencing, including dropping product lines and development efforts in math coprocessors, x86-compatible microprocessors, graphics ICs, and MPEG decoders.

Along with the new business strategy came the new name, 8x8 Inc., in early 1996. The 8x8 name reflects the company’s focus on programmable integrated circuits for video conferencing applications in a wide range of consumer and PC multimedia products. An 8x8 block of picture elements (pixels) is the basis of many video compression algorithms.

8x8 continues to place greater emphasis on its video compression semiconductors, which for fiscal year 1996 represented 63 percent of total sales, compared to only 12 percent in 1994. The company is planning reliance on a new line of cost effective VideoCommunicators for the consumer video conferencing market.

The company launched its initial public offering in November of 1996. Export sales accounted for almost half of 8x8’s revenue in fiscal 1996.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-1 8x8 North American Company Profiles

Management

Joseph L. Parkinson Chairman and Chief Executive Officer Y. W. Sing Vice Chairman Keith Barraclough President and Chief Operating Officer Paul Voois Executive Vice President Sandra Abbott Vice President, Finance and Chief Financial Officer David Harper Vice President, European Operations Bryan Martin Vice President, Engineering and Chief Technical Officer Chris McNiffe Vice President, Sales and Marketing Michael Noonen Vice President, Business Development Samuel Wang Vice President, Process Technology Doug Bailey Director, Worldwide Sales Kevin Deierling Director, Marketing

Products and Processes

8x8 Inc. develops highly integrated programmable single-chip compression and decompression ICs and related software for video phone and video conferencing equipment.

The company’s family of processors include the following:

• Video Communications Processor (VCP) is a single-chip programmable video subsystem and multimedia communications processor for conferencing over ISDN telephone lines. In early 1997, the company introduced a simple and inexpensive video phone, dubbed ViaTV Phone, that contains the VCP device. • Low-bit-rate Videophone Processor (LVP) is a single-chip programmable video-phone processor for conferencing over ordinary telephone lines. • Multimedia Encode Processor (MEP) for powering a PCI video capture and compression board using Intel’s wavelet-based Indeo interactive video compression technology.

The company’s video compression semiconductors are based on its proprietary architecture, which combines a RISC microprocessor, an advanced DSP core, specialized video processing circuitry, and SRAM technology.

1-2 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles ACC Micro

ACC MICRO

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

Fabless IC Supplier

Company Overview and Strategy

ACC Microelectronics Corporation (ACC Micro™) was established in 1987 to design, develop, and market a variety of VLSI circuit devices for computer system control, computer system board integration, and communication applications. The company's flagship products are a line of single-chip solutions targeted at the desktop, notebook, and subnotebook computer industries.

Management

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

Products and Processes

ACC Micro supplies chipsets and controller chips for 386/486-based and Pentium-based computers. Other products include buffer chips, power management chips, and single-device floppy-disk controllers.

Semiconductor Fabrication Facilities

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-3 Actel North American Company Profiles

ACTEL

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

Fabless IC Supplier

Regional Headquarters/Representative Locations

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

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

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

Employees 168 211 245 320 356

Company Overview and Strategy

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

Military/Aerospace ROW 11% 5%

Japan 10% Computers/ Peripherals Communications/ Europe 21% Networking 18% 46% United States Industrial Control 67% 22%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

1-4 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Actel

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

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

Development Systems 3%

FPGAs 97%

1996 Sales by Product Type

Management

John C. East President and Chief Executive Officer Esmat Z. Hamdy Senior Vice President, Technology and Operations Jeffrey M. Schlageter Senior Vice President, Engineering David M. Sugishita Senior Vice President, Finance and Administration, and Chief Financial Officer Michelle A. Begun Vice President, Human Resources Douglas D. Goodyear Vice President, Worldwide Sales Dennis F. Nye Vice President, Marketing Robert Smith, Ph.D. Vice President, Software David L. Van De Hey Vice President and General Counsel Warren Miller Director, Silicon Planning and Strategic Applications Robert Nalesnik Director, Product Marketing David Stieg Director, North American Distribution Sales

Products and Processes

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-5 Actel North American Company Profiles

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

Integrator Series • The 1200XL family features parts ranging from 2,500 to 8,000 gates and offers system performance of up to 60MHz. This family of circuits is based on 0.65µm CMOS technology. • The 3200DX family is Actel’s newest series of FPGAs with capacities ranging from 6,500 gates to 40,000 gates and offering system performance of up to 100MHz. These high-performance FPGAs offer fast dual-port SRAM, fast decode, and data path circuitry based on 0.65µm double-level-metal CMOS technology.

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

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

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

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

1-6 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Actel

Semiconductor Fabrication Facilities

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

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

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

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

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

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

Key Agreements

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

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-7 Allegro MicroSystems North American Company Profiles

ALLEGRO MICROSYSTEMS

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

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Allegro MicroSystems Europe Ltd. • Annecy, France Telephone: (33) (4) 50-51-2359 • Fax: (33) (4) 50-51-2083

Financial History ($M)

1992 1993 1994 1995 1996 Sales 115 124 161 181 201 Capital Expenditures 13 10 14 61 n/a

Employees 2,000

Company Overview and Strategy

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

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

1-8 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Allegro MicroSystems

Telecommunications 5%

EDP Japan 8% 14% Consumer Far East Industrial 14% 15% 47% United States 52% Automotive Europe 26% 19%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

Management

Allan S. Kimball President Dan Ax Vice President, Business Development Dennis Fitzgerald Vice President, Quality Systems John Kokulis Vice President, Finance and Chief Financial Officer Andy Labrecque Vice President, Operations John MacDougell Vice President, Research and Development Steven W. Miles Vice President, Product Development Fred Windover Vice President and General Counsel Marybeth Perry Director, Human Resources

Products and Processes

Allegro's product offering is outlined below by end-use market segment.

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-9 Allegro MicroSystems North American Company Profiles

Allegro exited the discrete market in December 1996 and sold its inventory of discrete semiconductor diodes and transistors. In recent years, sales of discrete products has represented about 6 percent of Allegro’s total revenues.

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

Semiconductor Fabrication Facilities

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

Allegro plans to invest $80 million to expand wafer capacity at its Worcester fab facility. A 150mm wafer line will be added to support 1.5µm production of its power and smart power ICs and sensor products. Allegro is also planning to double the capacity at its Willow Grove facility.

1-10 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Alliance Semiconductor

ALLIANCE SEMICONDUCTOR

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

Fabless IC Supplier

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

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

Employees 35 40 74 130 150

Company Overview and Strategy

Founded in 1985, Alliance Semiconductor designs, develops, and markets memory products and memory intensive logic products for high-performance applications. Such applications are in the desktop and portable personal computer, networking, telecommunications, and instrumentation markets.

The company originally manufactured its own devices in a fab facility near Kansas City, Missouri, leased from AT&T. However, high overhead costs and low demand in its product markets caused the plant to operate at a significant loss until its closure in February 1990. The company filed for Chapter 11 bankruptcy protection in March 1991 and then emerged with a new business strategy to operate as a fabless supplier of high-performance SRAMs and other memory products.

The majority of Alliance’s revenues historically have been from sale of fast SRAMs in the PC marketplace. Recently, the company has placed greater emphasis on diversifying its product offerings. Its newest product lines include high-performance DRAMs, flash memories, and multimedia user interface (MMUI) accelerators.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-11 Alliance Semiconductor North American Company Profiles

MMUI Accelerators 5%

Europe 18%

Asia North America SRAMs 25% 57% 95%

1996 Sales by Product Type 1996 Sales by Geographic Region

In 1995, Alliance abandoned its “fabless” IC supplier strategy, to a certain extent. The company announced plans in that year calling for a substantial portion of the company’s future wafer capacity to come from fabs in which it has partial ownership. As a result, Alliance made a number of substantial investments in wafer manufacturing facilities, including an equity investment in Chartered Semiconductor (see Semiconductor Fabrication Facilities below).

Management

N. Damodar Reddy Chairman, President, and Chief Executive Officer C.N. Reddy Senior Vice President, Engineering and Operations Charles Alvarez Vice President, Finance and Administration, and Chief Financial Officer Kamal Gunsagar Vice President, Contract Manufacturing Angela Kupps Vice President, Human Resources Ken Poteet Vice President, Integrated Memory Products Phil Richards Vice President, Sales Sunit Saxena Vice President, Product Engineering Bharat Shastri Vice President, Systems Engineering Ritu Shrivastava Vice President, Technology Development Datar Lalvani Director, Marketing

Products and Processes

SRAMs Alliance Semiconductor offers a variety of high-speed asynchronous and synchronous CMOS SRAMs for networking, telecommunications, modem, and mainframe computer applications. Its asynchronous SRAM products range from 5V 64K devices with speeds as fast as 8ns to 3.3V 1M and 4M devices with speeds as fast as 12ns. Its 3.3V synchronous SRAM products include 1M (32K x 32) and 2M (64K x 32) pipeline burst SRAMs designed for high-performance Pentium applications with access times as low as 5ns.

DRAMs Volume production of a new line of high-speed fast page mode and EDO 4M and 16M DRAMs began in mid- and late-1996, respectively.

1-12 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Alliance Semiconductor

Flash Memories Alliance’s flash memory products include 1M and 2M 5.0 volt-only NOR-type devices that are compatible with AMD and Intel flash chips, and 4M 5.0 volt-only devices that are compatible with AMD and Atmel flash chips.

MMUI Accelerators The company's first foray beyond memory chip markets came in late 1994, when it unveiled its line of ProMotion™ MMUI accelerators. The ProMotion line includes the ProMotion-6410 64-bit MMUI accelerator, the ProMotion- 6422 MMUI accelerator with integrated DAC, and the ProMotion-AT24 128-bit accelerator with integrated DAC.

The fourth-generation ProMotion device, the AT3D chip, was introduced in late 1996. The AT3D is a 3D/2D/video accelerator that integrates a 128-bit internal drawing engine, DVD, and live video input port with support for various software drivers.

Currently, most of Alliance’s products are manufactured using 0.45µm CMOS technology, with many of its newest products being developed using a 0.35µm process. The company’s SRAMs are based on a two-poly, one-metal CMOS process and its DRAMs on a three-poly, one-metal CMOS process.

Semiconductor Fabrication Facilities

Alliance’s IC products are manufactured through a combination of independent foundry suppliers and joint venture facilities. The independent foundry suppliers Alliance uses for the manufacture of its ICs include Rohm and TSMC.

In October 1995, Alliance entered an agreement with UMC and other parties to form a separate Taiwanese company, United Silicon Inc. (USI), for the purpose of building and managing a semiconductor manufacturing facility in Taiwan. The investment by Alliance will total approximately $60 million, representing an initial equity ownership of about 10 percent. In return for its investment, Alliance will receive 12.5 percent of the manufacturing capacity in the USI fab, which is expected to move into production in 1Q98.

Earlier in 1995, Alliance entered into a partnership with UMC and S3 Incorporated to establish a new jointly owned wafer foundry company in Taiwan called United Semiconductor Corporation (USC). Alliance’s investment in USC will total approximately $70 million, representing an equity ownership of 19 percent. In return for its investment, Alliance will receive 25 percent of the manufacturing capacity in the USC fab. The fab will be a 200mm wafer, 0.35µm plant capable of producing 5,000 to 6,250 wafers per week. The fab started manufacturing wafers for Alliance, S3, and other semiconductor companies in 3Q96.

Also in 1995, Alliance announced a $52 million investment in Chartered Semiconductor to obtain a minority ownership stake in the company and a guaranteed portion of the capacity in Chartered’s Fab II facility that began production of 200mm wafers in 4Q95.

Alliance’s equity investments in UMC and Chartered so far total about $200 million. By the end of 1997, the company expects wafers from the UMC and Chartered fabs it has invested in will represent more than 50 percent of its capacity.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-13 Alliance Semiconductor North American Company Profiles

Key Agreements

• Alliance and UMC signed an agreement in 4Q95 calling for UMC to expand allocation of wafer fabrication capacity to Alliance for the manufacture of Alliance’s DRAM products. In return, Alliance granted UMC a license to produce for itself a certain number of Alliance DRAM products. As discussed above, UMC and Alliance are also cooperating in the manufacture of ICs through two new IC foundry companies in Taiwan.

• Alliance signed an agreement with 3Dfx Interactive, Inc. in late 1995 to work together on ensuring compatibility between Alliance’s ProMotion multimedia chips and 3Dfx Interactive’s Voodoo Graphics three dimensional graphics accelerator designed for 3D entertainment applications.

• Alliance licensed Aspec Technology's Portfolio™ family of ASIC design tools in 2Q95. These tools will allow the company to create low-cost ASIC gate array and embedded memory array products.

• Alliance entered into a joint development, manufacturing, and marketing agreement with Japan's Rohm Co., Ltd. in mid-1994 calling for Rohm to furnish Alliance with fab capacity for the production of SRAMs. Rohm will also help Alliance sell and market the products in Japan; Alliance will, in turn, assist Rohm in developing high- performance, low-power SRAMs.

1-14 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Altera

ALTERA

Altera Corporation 2610 Orchard Parkway San Jose, California 95134-2020 Telephone: (408) 894-7000 Fax: (408) 435-1394 Web Site: www.altera.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Altera Japan Ltd. • Shinjuku-ku, Tokyo, Japan Telephone: (81) (3) 3340-9480 • Fax: (81) (3) 3340-9487

Europe: Altera U.K. Limited • Buckinghamshire, United Kingdom Telephone: (44) (1494) 602000 • Fax: (44) (1494) 602001

Asia-Pacific: Altera Hong Kong • Kowloon, Hong Kong Telephone: (852) 2538-6895 • Fax: (852) 2538-6896

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

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

Employees 477 527 667 881 918

Company Overview and Strategy

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-15 Altera North American Company Profiles

Development Software Consumer and Hardware 4% Other 6% Military 1% 4%

Industrial 14% Communications CMOS Programmable Computer 58% Logic Chips 19% 94%

1996 Sales by Product Type 1996 Sales by End-Use Market

Asia-Pacific 7%

Japan 19% North America Europe 53% 21%

1996 Sales by Geographic Region

Management

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

Products and Processes

Altera's PLD products extend from 24 to 599 pins with usable gate counts up to 130,000 gates and process technologies advancing to 0.35µm through its fabrication partners. The company has released some details regarding its next major family of PLDs. Code-named Michelangelo, the new family of devices will be pin compatible with the MAX 7000 Family, Altera’s most popular line. Michelangelo PLDs, ranging from 32 macrocells on the low end to 1,008 on the high end, will start shipping in the first half of 1998.

1-16 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Altera

FLEX 10K Family FLEX 10KA Family • 10,000-100,000 usable gates • 10,000-250,000 usable gates • In-circuit reconfigurable • In-circuit reconfigurable • 84-503 pins • 84-599 pins • Performance: 104MHz • Performance: 104MHz • SRAM-based CMOS technology • SRAM-based CMOS technology • 5V operation • 3.3V operation • MultiVolt interface supports 3.3V • MultiVolt interface supports 5V and 2.5V • 0.5µm • Megafunction support • 0.35µm

FLEX 8000 Family MAX 9000 Family • 2,500-16,000 usable gates • 6,000-12,000 usable gates • In-circuit reconfigurable • In-system programmable • 84-304 pins • 84-356 pins • Performance: 125MHz • Performance: 125MHz • SRAM-based CMOS technology • EEPROM-based CMOS technology • MultiVolt interface supports 3.3V • MultiVolt interface supports 3.3V • 0.5µm • 0.5µm-0.65µm

MAX 7000/E Family MAX 7000/S Family • 600-5,000 usable gates • 600-5,000 usable gates • High pin-to-gate ratio • In-system programmable • 44-208 pins • High pin-to-gate ratio • Performance: 178MHz • 44-208 pins • In-system programmable • Performance: 178MHz • EEPROM-based CMOS technology • EEPROM-based CMOS technology • 0.65µm-0.8µm • 0.5µm-0.65µm

MAX 5000 Family Classic Family • 600-3,750 usable gates • 200-900 usable gates • High register count • Zero-standby power • 24-100 pins • 24-68 pins • Performance: 83.3MHz • Performance: 100MHz • 0.65µm • 0.65µm

The company also offers 64K, 213K, and 1M EPROMs designed to configure its FLEX devices, as well as mask- programmed logic devices (MPLDs) for high-volume applications. MPLDs are pin-, function-, and timing- compatible with Altera’s PLDs and are available for all families.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-17 Altera North American Company Profiles

Coinciding with the company’s migration from 0.8µm to 0.6µm in 1993, Altera moved from two to three layers of metal. Today, the FLEX10KA Family is based on a 0.35µm triple-layer metal process, and is expected to add a fourth layer of metal in 1997. The Michelangelo PLDs will be implemented in a 0.35µm EEPROM-based CMOS process with four-layers of metal. For future products with gate densities reaching 250,000 usable gates and above, Altera is developing a 0.25µm, five-layer metal process.

Altera supplies proprietary software development systems (MAX+PLUS II™) to support its PLD products.

Semiconductor Fabrication Facilities

Altera has foundry agreements with Sharp, TSMC, Cypress, and Intel. It owns 17 percent of Cypress Semiconductor's wafer fab in Round Rock, Texas. Through this ownership, Altera has the right to buy a percentage of the wafers produced by Cypress approximately equal to the percentage of its ownership.

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

Key Agreements

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

1-18 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles AMCC

APPLIED MICRO CIRCUITS (AMCC)

Applied Micro Circuits Corporation 6195 Lusk Boulevard San Diego, California 92121-2729 Telephone: (619) 450-9333 Fax: (619) 450-9885 Web Site: www.amcc.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Applied Micro Circuits Corporation • Munich, Germany Telephone: (49) (89) 92404-136 • Fax: (49) (89) 81213-180

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

1992 1993 1994 1995 1996 Sales 39 47 50 51 60

Employees 275 300 310 270 255

Company Overview and Strategy

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

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

Management

David Rickey President and Chief Executive Officer Joel O. Holliday Chief Financial Officer Anil Bedi Vice President, Marketing Laszlo Gal Vice President, Engineering Darwin Slindee Vice President, Operations Thomas Tullie Vice President, Sales Brent Little Director, ASIC Products Carol Oster Director, Quality Assurance

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-19 AMCC North American Company Profiles

Products and Processes

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

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

Sonet/SDH Interface Circuits PCI Bus Controllers Fibre Channel Interface Circuits Crosspoint Switches HiPPI Source and Destination Interface Circuits Clock Generators/Synthesizers Gigabit Ethernet Interface Circuits Clock Drivers ATM Interface Circuits ECL Terminator Q20000 Series ECL/TTL “Turbo” Logic Arrays MicroPower 3V, low power, bipolar, standard cell ASICs

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

Semiconductor Fabrication Facilities

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

Applied Micro Circuits Corporation 6195 Lusk Boulevard San Diego, California 92121 Cleanroom size: 10,000 square feet (Class 10) Capacity (wafers/week): 1,200 Wafer size: 100mm Processes: Bipolar, BiCMOS Products: ASICs, ASSPs, custom ICs Feature sizes: 1.0µm, 2.0µm, 3.0µm

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

1-20 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles AMD

ADVANCED MICRO DEVICES (AMD)

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

IC Manufacturer

Regional Headquarters/Representative Locations

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

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

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

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

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

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

Company Overview and Strategy

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-21 AMD North American Company Profiles

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

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

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

Computation Products Vantis 17% 13% Asia-Pacific 26% North America Communications 47% and Components Europe 70% 27%

1996 Sales by Product Group 1996 Sales by Geographic Region

Management

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

1-22 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles AMD

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

Products and Processes

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-23 AMD North American Company Profiles

Microprocessor Products

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

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

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

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

Embedded Processor Products

For processing/control applications in communications, mobile computing, networking, mass storage, or industrial control systems, AMD offers its E86™ Family of x86-compatible embedded processor products. The E86 family ranges from 16-bit MCUs to 32-bit MPUs, general purpose processors to “PCs on a chip.” The E86 family includes several versions of Am186/188 16-bit microcontrollers, Am386SX/DX and AM486DX 32-bit microprocessors, ElanSC300/310 32-bit microcontrollers based on a 386 core, and ElanSC400/410 32-bit microcontrollers based on a 486 core.

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

Communications, Network, and I/O Products

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

1-24 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles AMD

Non-Volatile Memory Products

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

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

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

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

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

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

Programmable Logic Products

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

Other IC Products

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

Semiconductor Fabrication Facilities

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-25 AMD North American Company Profiles

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

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

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

1-26 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles AMD

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

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

Key Agreements

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

• AMD and Intel signed a new five-year cross-licensing agreement in early 1996 that gives the two companies rights to use each other’s patents and certain copyrights, excluding microprocessor microcode beyond the 486 generation.

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-27 AMI North American Company Profiles

AMERICAN MICROSYSTEMS (AMI)

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

IC Manufacturer

Regional Headquarters/Representative Locations

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

Europe: AMI-GmbH • Dresden, Germany Telephone: (49) (351) 31-99-1500 • Fax: (49) (351) 31-99-1501

Financial History ($M)

1992 1993 1994 1995 1996 Sales 135 150 171 221 256

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

Company Overview and Strategy

Established in 1966, American Microsystems Inc. (AMI) was a pioneer in the development of application specific ICs (ASICs). Today, the company's products and services range from digital and mixed-signal ASICs, to CMOS foundry services, application-specific standard products (ASSPs), and high-level integrated solutions through multichip modules. AMI currently specializes in producing both digital and mixed-signal systems on a chip and is the number one U.S. manufacturer of mask ROMs.

The company is comprised of three business units and two divisions: the Mixed-Signal Business Unit, the Digital ASIC Business Unit, the Foundry Business Unit, the Standard Products Division, and the Multichip Products Division, which specializes in contract manufacturing solutions utilizing multichip modules. Each of the five units has the responsibility, along with the marketing and engineering resources needed, to sell its respective products and services.

Recently, AMI's sales strategy underwent a significant shift from a primary focus on direct sales to increased reliance on the company's growing international network of manufacturer's representatives, distributors, and design centers. This network markets AMI's cell-based and gate array ASICs as well as its ROMs.

1-28 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles AMI

Multichip Standard Products Cell 1% 9% Standard Products 9% Foundry 34% Mixed Signal 16% Gate Array 31%

1996 Sales by Business Segment

In 1997, AMI released several wireless IC devices targeting the direct sequence spread spectrum (DSSS) IC market. The three devices include a transceiver, receiver-only, and a transmit-only device, and are designed for various applications including security systems and remote medical devices.

Also during 1997, AMI acquired Focus Semiconductor, which is located in Gwynedd, Pennsylvania. Focus Semiconductor is a mixed-signal IC vendor who has used AMI as a foundry in the past. Focus will be folded into AMI as a separate business unit and remain in Pennsylvania.

AMI's products serve markets such as telecommunications, consumer electronics, computer peripherals, military, industrial, and automotive equipment.

Medical Other Japan 4% 1% Europe 1% ROW Automotive 3% 1% 6% Industrial 9% Communications Consumer 32% 11% Military EDP North America 14% 23% 95%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-29 AMI North American Company Profiles

Management

Gerald "Jerry" E. Homstad President and Chief Executive Officer Harold Blomquist Senior Vice President, Business Operations Randy Cook Vice President, Multichip Products Division Paul Pimentel Vice President, Finance/Purchasing Tom Schiers Vice President, Digital ASICs Dan Schroeder Vice President, Operations Bob Smith Vice President, Standard Products Division Grant Hulse Director, New Business Development Chris Laytun Director, Mixed-Signal Al Morrison Director, Foundry Troy Murray Manager, Site Services John Rankin Manager, Japanese and Southeast Asian Sales Marv Yancey Manager, Sub-Micron Program

Products and Processes

AMI offers the following products and services:

• Standard-cell and gate array digital ASICs • Mixed-signal ASIC development services • Mask programmable ROMs (16K to 16M density) • Digital and mixed-signal ASIC design software • Wireless ICs (include mask programmable system devices) • Foundry services • Contract design and manufacturing • Multichip modules • Custom packaging

AMI's digital ASIC standard library, which supports both gate arrays and standard cells, contains over 500 cells and operates from 2.5V to 5.5V. The company’s arrays have up to 464,000 usable gates.

AMI's mixed-signal processes allow the analog voltage to run from –5V to +5V or from 0V to 12V, and will accommodate a wide range of functions.

The company's semiconductor products are fabricated using CMOS and NMOS process technologies, with geometries as fine as 0.35µm.

1-30 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles AMI

Semiconductor Fabrication Facilities

AMI AMI 2300 Buckskin Road Pocatello, Idaho Pocatello, Idaho 83201 Fab 10 Cleanroom size: 33,000 square feet (Class 10) Cleanroom size: 40,000 square feet (Class 1) Capacity (wafers/week): 6,500 Capacity (wafers/week): 5,000 Wafer size: 125mm Wafer size: 200mm Processes: CMOS, NMOS Process: CMOS Products: ASICs, ROMs, telecom and datacom ICs, Feature sizes: 0.35µm-0.8µm MCMs, foundry services (Operations began in mid-1997) Feature sizes: 0.6µm-5.0µm CMOS; 3.0µm-5.0µm NMOS

AMI's facility in the Philippines performs sort and final testing, while assembly work is contracted out.

Key Agreements

• AMI has an alliance with WSI Inc. to jointly develop mask-programmable versions of WSI's line of microcontroller peripherals and both companies are separately marketing the complete range of devices. AMI is manufacturing the parts.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-31 Anadigics North American Company Profiles

ANADIGICS

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

IC Manufacturer

Regional Headquarters/Representative Locations

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

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

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

Employees 115 200 270 320 430

Company Overview and Strategy

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

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

1-32 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Anadigics

Engineering Services 5% Fiber Optics/ATM 17%

Wireless Asia-Pacific Europe 35% 29% 36% Cable TV 20% Direct North America Broadcast Systems 35% 23%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

Management

Ron Rosenzweig President and Chief Executive Officer George Gilbert Executive Vice President and Chief Operating Officer Charles Huang, Ph.D. Executive Vice President, Market Research and Business Development John F. Lyons Senior Vice President and Chief Financial Officer Robert Baytuns Vice President, Research and Technology Sheo Khetan Vice President, Manufacturing Javed S. Patel Vice President, Marketing and Sales Phillip Wallace Vice President, Product Development

Products and Processes

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

Semiconductor Fabrication Facilities

In October 1996, the company began to convert its existing fab from 3in to 100mm wafers and expects to complete the conversion by the end of 1997. The company is also in the process of constructing an additional facility for both manufacturing and administration purposes. The building, also located in Warren, New Jersey, will house a 12,000 square-foot Class 100 cleanroom that will manufacture 100mm GaAs wafers. Production at the new facility is not expected to begin before 4Q97.

Anadigics, Inc. Anadigics, Inc. 35 Technology Drive 141 Mt. Bethel Road Warren, New Jersey 07059-5197 Warren, New Jersey 07059 Cleanroom size: 8,000 square feet (Class 100) Cleanroom size: 12,000 square feet (Class 100) Capacity (wafers/week): 500 Capacity (wafers/week): 500 Wafer size: 100mm Wafer size: 100mm Process: GaAs MESFET Process: GaAs MESFET Feature size: 0.5µm (Production to begin in late 1997 or early 1998.)

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-33 Analog Devices North American Company Profiles

ANALOG DEVICES (ADI)

Analog Devices, Inc. One Technology Way P.O. Box 9106 Norwood, Massachusetts 02062-9106 Telephone: (617) 329-4700 Fax: (617) 326-8703 Web Site: www.analog.com

IC Manufacturer

Regional Headquarters/Representative Locations

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

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

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

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

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

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

Company Overview and Strategy

Analog Devices, Inc. (ADI) was founded in 1965 and is today a leading designer and manufacturer of high- performance linear, mixed-signal, and digital integrated circuits that address a wide range of real-world signal processing applications.

The company's products are typically incorporated by OEMs in equipment and systems for a variety of applications, including communications equipment; computers and computer peripherals; engineering, medical, and scientific instruments; factory automation equipment; military/aerospace systems; high-end consumer electronic products; and automotive equipment.

1-34 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Analog Devices

ROW 13% Japan 14% North America 42% Europe 31%

1996 Sales by Geographic Region

Analog Devices’ products can be divided into three groups: general purpose, standard-function linear and mixed- signal ICs (SLICs), including amplifiers and data converters; system-level ICs, including general-purpose digital signal processors (DSPs), special-purpose linear and mixed-signal ICs, and hard disk drive ICs; and assembled products such as hybrids and multichip modules. Integrated circuits accounted for 95 percent of the company's total revenues in fiscal 1996.

Assembled Products 5%

System-Level ICs Standard and DSP ICs Linear ICs 38% 57%

1996 Sales by Product Group

ADI's strategy is to focus on major opportunities for DSPs and system-level ICs as its primary sources of revenue growth, while at the same time, continuing its efforts to sell traditional SLIC product lines. Revenues from the company’s assembled products group has been declining for several years, primarily due to shrinking demand for hybrid devices.

In addition, the company plans to continue to extend its core technologies to include new technologies, such as RF/IF signal processing for wireless communications applications and surface micromachining for automobile air bag system accelerometers. To support its move into the wireless communications market, Analog Devices acquired RF/IF circuits designer Mosaic Microsystems Ltd. of Kent, England, and its U.S. subsidiary Mosaic, Inc. in mid-1996.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-35 Analog Devices North American Company Profiles

Management

Ray Stata Chairman Jerald G. Fishman President and Chief Executive Officer Ross Brown Vice President, Human Resources Dennis Buss Vice President, Technology Development David D. French Vice President and General Manager, Computer Products Division Russell K. Johnsen Vice President and General Manager, Communications Division Robert R. Marshall Vice President, Worldwide Manufacturing Robert McAdam Vice President and General Manager, Standard Linear Products Division Brian P. McAloon Vice President, Sales Joseph E. McDonough Vice President, Finance, and Chief Financial Officer Joe Reichbach Vice President, Sales, North America Volkmar Schaldach Vice President, Sales and Marketing, Europe Shozo Sugiguchi Vice President, Sales and Marketing, Japan H. Goodloe Suttler Vice President, Marketing, Quality, and Planning Geoffrey R.M. Thomas Vice President and Manufacturing General Manager, ADSC Franklin Weigold Vice President and General Manager, Transportation and Industrial Products Division

Products and Processes

Analog Devices offers high-performance linear, digital, and mixed-signal ICs such as data converters, amplifiers, voltage references and comparators, signal processors and conditioners, application-specific ICs for the consumer, disk drive, telecommunications, and automotive industries, and temperature and accelerometer sensors.

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

System-Level ICs ADI’s system-level ICs include general-purpose DSPs and multi-function devices that feature high levels of functional integration on a single chip. All of the company’s DSPs share a common architecture and code compatibility. The company is aggressively pursuing the 32-bit floating-point DSP market with its line of SHARC™ products. In early 1997, its first low-priced SHARC DSP was announced. The ADSP-21061 features high performance of 120 MFLOPS, 1M of on-chip dual-port SRAM, and 240 Mbytes/sec I/O bandwidth.

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

1-36 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Analog Devices

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

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

Semiconductor Fabrication Facilities

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

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

Recent expansions of company-owned fabs have included the conversion of its Wilmington, Massachusetts, fabrication facility from 100mm to 150mm wafer production for high-speed linear devices. In addition, ADI is upgrading and modernizing the fab in Sunnyvale, California, it acquired from Performance Semiconductor in 1995. Production at the fab was scheduled to begin in late 1996, but was delayed because of the slowdown in the market.

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-37 Analog Devices North American Company Profiles

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

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

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

Key Agreements

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

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

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

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

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

1-38 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Analog Devices

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-39 Array Microsystems North American Company Profiles

ARRAY MICROSYSTEMS

Array Microsystems, Inc. 1420 Quail Lake Loop Colorado Springs, Colorado 80906 Telephone: (719) 540-7900 Fax: (719) 540-7950

Fabless IC Supplier

Employees 41

Company Overview and Strategy

Array Microsystems, a privately-held company, was founded in 1990 to design, develop, and market high- performance digital signal processing (DSP) products with a focus on video compression technologies and system level designs for multimedia applications. Array’s mission is to become the leading supplier of optimum performance, low-cost digital video chipset solutions for consumer and professional markets.

Management

Surendar S. Magar, Ph.D. President and Chief Executive Officer Tom Kopet Vice President, Systems Technology Matt Ready Vice President, Sales E. Flint Seaton Vice President and Chief Financial Officer Shannon Shen, Ph.D. Vice President, IC Technology David W. Still Vice President, Engineering Roger Westberg Vice President, Marketing

Products and Processes

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

Semiconductor Fabrication Facilities

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

1-40 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Array Microsystems

Key Agreements

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-41 Atmel North American Company Profiles

ATMEL

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

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Atmel Japan K.K. • Chuo-ku, Tokyo, Japan Telephone: (81) (3) 5641-0211 • Fax: (81) (3) 5641-0217

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

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

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

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

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

Company Overview and Strategy

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

1-42 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Atmel

Networking Military 10% 10% Japan 19% North Telecommunications America Consumer 40% Europe 39% 15% 20% Computer Asia Peripherals 22% 25%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

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

MPR 15% In-System Programmable EPROM Non-Volatile 21% Memories* Logic 42% (PLD, FPGA, ASIC) 22%

*Flash and EEPROMs 1996 Sales by Device Type

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

The company’s most substantial acquisition came in April 1995, when it purchased a majority interest (75 percent) in the French IC manufacturer ES2. By the end of 1995, Atmel increased its ownership of the company to more than 90 percent and renamed it Atmel-ES2. Atmel is expanding Atmel-ES2’s existing fab facility and is constructing a new 0.35µm, 200mm wafer fab at the site that will be operational by late 1997.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-43 Atmel North American Company Profiles

Management

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

Products and Processes

Atmel's products are outlined below.

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

Programmable Logic Devices and Field Programmable Gate Arrays • PLDs—Generic PAL-type ICs including fast, low-power, and 3V flash-based versions of the standard 22V10, 16V8, and 20V8. —Complex PLDs with densities to 5,000 gates. • FPGAs—SRAM-based devices with 2,000 to 40,000 usable gates and very low power. Partial or full reconfiguration, in system, during normal operation. ASIC Devices • Gate arrays—High speed with up to 1.2 million routable gates. • RFID ASICs—Analog, digital, and memory on a single-chip ASIC. • Cell based ASICs—Mixed-technology.

Other Products • Microcontrollers—Combine Intel's 80C51 core logic or Atmel’s proprietary AVR 8-bit RISC core logic with 1K, 2K, 4K or 8K of Atmel's flash memory. • Standard logic devices—Multimedia system, controllers/chipsets. • Flash memory cards. • Spread spectrum cordless phone chipset.

1-44 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Atmel

Atmel uses proprietary CMOS and BiCMOS technologies for the processing of its chips. Most products are produced with 0.6µm and 0.5µm line widths. The company's newest Colorado Springs fab facility is capable of producing ICs with 0.35µm feature sizes, as is the not yet commissioned fab in Rousset, France.

Semiconductor Fabrication Facilities

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

Atmel Corporation Atmel Corporation 1150 East Cheyenne Mountain Boulevard 1150 East Cheyenne Mountain Boulevard Colorado Springs, Colorado 80906 Colorado Springs, Colorado 80906 Telephone: (719) 567-3300 Telephone: (719) 567-3300 Fab 3 Fab 5 Cleanroom size: 33,900 square feet (Class 10) Cleanroom size: 43,000 square feet (Class 1) Capacity (wafers/week): 5,000 Capacity (wafers/week): 9,000 Wafer size: 150mm Wafer size: 150mm Processes: CMOS, BiCMOS Process: CMOS Products: EEPROMs, EPROMs, flash memories, Products: EEPROMs, flash memories, EPROMs PLDs, FPGAs, ASICs, MCUs, linear ICs Feature size: 0.4µm Feature sizes: 0.6µm, 0.8µm, 1.0µm

Atmel-ES2 Atmel-ES2 Zone Industrielle Zone Industrielle 13106 Rousset Cedex 13106 Rousset Cedex France France Telephone: (33) (4) 42-33-40-0 Telephone: (33) (4) 42-33-40-0 Fab 6 Fab 7 Cleanroom size: 15,000 square feet Cleanroom size: 60,000 square feet Capacity (wafers/week): 2,000 Capacity (wafers/week): 7,000 Wafer size: 150mm Wafer size: 200mm Process: CMOS Process: CMOS Products: Cell-based ASICs, MCUs Products: Cell-based ASICs, MCUs Feature sizes: 0.6µm, 0.8µm, 1.0µm Feature sizes: 0.35µm, 0.6µm (Scheduled to start production by 3Q97)

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-45 Atmel North American Company Profiles

Key Agreements

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

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

• Atmel and Paradigm Technology formed an alliance in May 1995 concerning Paradigm's SRAM products. Atmel provides manufacturing capacity for Paradigm's SRAMs in exchange for product rights. Atmel also purchased approximately 19 percent of Paradigm. The companies are developing new-generation SRAMs with speeds below 8ns.

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

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

• Fuji Film Microdevices and Atmel are collaborating in the development of flash memory-based products such as ATA-interface memory cards.

1-46 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Austin Semiconductor

AUSTIN SEMICONDUCTOR

Austin Semiconductor, Inc. 8701 Cross Park Drive Austin, Texas 78754-4566 Telephone: (512) 339-1188 Fax: (512) 339-6641 Web Site: austinsemi.com

Fabless IC Supplier

Financial History ($M)

1993 1994 1995 1996 Sales 7 14 19 21

Employees 60 110 114 150

Company Overview and Strategy

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

The company's business is currently divided into two distinct groups: a custom product line and a standard product line (consisting primarily of the former Micron products). At the end of 1996, about 70 percent of ASI's business was in memory products, with the balance in custom products.

Management

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

Products and Processes

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-47 Austin Semiconductor North American Company Profiles

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

Semiconductor Fabrication Facilities

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

1-48 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Benchmarq

BENCHMARQ MICROELECTRONICS

Benchmarq Microelectronics, Inc. 17919 Waterview Parkway Dallas, Texas 75252 Telephone: (972) 437-9195 Fax: (972) 437-9198 Web Site: www.benchmarq.com

Fabless IC Supplier

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

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

Employees 180 235

Company Overview and Strategy

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

In 1996, international sales accounted for approximately two-thirds of total sales.

Management

Derrell Coker Chairman Al Schuele President and Chief Executive Officer Wallace E. Matthews Chief Technical Officer Will Davies Vice President, Manufacturing and Product Development Reginald McHone Vice President, Finance and Administration, and Chief Financial Officer Jim Vernon Vice President, Sales Gene Armstrong Director, Product Development—Communication and Consumer Components David Freeman Director, Product Development—Industrial and Intelligent Peripherals David Heacock Director, Marketing and Corporate Communications Loren Reifsteck Director, Quality Technology and Assurance Eric Smith Director, Manufacturing Operations

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-49 Benchmarq North American Company Profiles

Products and Processes

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

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

Semiconductor Fabrication Facilities

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

1-50 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Burr-Brown

BURR-BROWN

Burr-Brown Corporation P.O. Box 11400 Tucson, Arizona 85734-1400 Telephone: (602) 746-1111 Fax: (602) 889-1510 Web Site: www.burr-brown.com

IC Manufacturer

Regional Headquarters/Representative Locations

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

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

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

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

Company Overview and Strategy

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-51 Burr-Brown North American Company Profiles

Other Computer and 4% Multimedia 6% Other Communications 7% 15% Industrial and Process Control 30% Analog ICs Data Conversion ICs 47% Digital Audio and 46% Video Test and Instrumentation 20% 25%

1996 Sales by Application 1996 Sales by Product Type

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

Europe 26% Asia 40%

North America 34%

1996 Sales by Geographic Region

Management

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

1-52 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Burr-Brown

Products and Processes

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

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

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

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

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

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

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-53 Burr-Brown North American Company Profiles

Semiconductor Fabrication Facilities

Burr-Brown Corporation 6730 South Tucson Boulevard Tucson, Arizona 85706 Cleanroom size: 30,000 square feet Capacity (wafer/week): 4,200 Wafer size: 100mm (Planning conversion to 150mm wafers) Processes: CMOS, Bipolar, BiCMOS Products: Digital and linear ICs, monolithic and hybrid assembly Feature sizes: 2.0µm-3.0µm

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

Key Agreements

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

1-54 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles C-Cube Microsystems

C-CUBE MICROSYSTEMS

C-Cube Microsystems Inc. 1778 McCarthy Boulevard Milpitas, California 95035 Telephone: (408) 944-6300 Fax: (408) 944-6314 Web Site: www.c-cube.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

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

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

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

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

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

Employees 112 140 254 669

Company Overview and Strategy

Founded in 1988, C-Cube Microsystems is a provider of highly integrated, standards-based, programmable digital video and still image compression products and systems. The company's innovative encoder, decoder, and codec products bring full motion video and still image capabilities to a broad range of end-user products in the consumer electronics, computer, and communications markets. Such products include video CD players, interactive game equipment, and computer add-in cards that allow full-motion video, desktop video conferencing systems, interactive digital cable TV systems, and direct broadcast satellite (DBS) systems.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-55 C-Cube Microsystems North American Company Profiles

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

U.S. 33%

International 67%

1996 Sales by Geographic Region

Management

Alexandre A. Balanski, Ph.D. President and Chief Executive Officer Mark K. Allen Vice President, Operations James G. Burke Vice President, Finance and Administration, and Chief Financial Officer Brian T. Conners Vice President, Sales Alex Daly Vice President, Marketing Richard Foreman Vice President and Chief Information Officer Sai-Wai Fu Vice President, Hardware Engineering Didier Le Gall, Ph.D. Vice President, Research and Development Richard S. Rasmussen Vice President and General Manager, JPEG Division Senjeev Renjen, Ph.D. Vice President, Decoder Engineering Nolan Daines President and Chief Executive Officer, DiviCom Inc.

Products and Processes

C-Cube's single-chip and chipset products include: MPEG 1 video and audio/video encoders and decoders for consumer electronics applications; highly integrated MPEG 1 video and audio/video decoders, JPEG codecs, multistandard codecs, video conferencing codecs, and multimedia video processors for computer applications; and MPEG 2 video encoders and decoders and MPEG 2 transport demultiplexers for communications applications. In February 1997, C-Cube introduced the ZiVA family of single-chip DVD products, which include decoders, encoders, and system-level solutions for consumer and multimedia OEMs.

C-Cube’s IC products are currently manufactured using two- or three-layer metal CMOS process technology with 0.65µm, 0.5µm, or 0.35µm feature sizes.

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

1-56 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles C-Cube Microsystems

Semiconductor Fabrication Facilities

C-Cube does not manufacture its own ICs; it uses independent foundries. The company’s principal IC foundry is Texas Instruments. Other foundry partners include Matsushita, Yamaha, TSMC, and Samsung. AMD is also a foundry partner, but it is not presently manufacturing products for C-Cube. Assembly, test, and packaging of its devices is also subcontracted to third parties.

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

Key Agreements

• In October 1995, C-Cube licensed Sun Microsystems’ MicroSPARC processor core technology for use in a multifunction chip, to be introduced in 1997, intended for digital compression and decompression.

• C-Cube entered into an agreement with Matsushita, JVC, and Sharp to jointly develop MPEG 1 and MPEG 2 decoders. Matsushita also provides C-Cube with preferential access to its 0.5µm and 0.35µm manufacturing processes. In return, Matsushita has the rights to use and sell a limited amount of the decoders.

• C-Cube has an agreement with TI under which TI provides C-Cube with foundry services in exchange for access to its core technology for use in creating derivative products. In addition, C-Cube has access to TI’s MPEG audio decoding technology on a reciprocal basis. C-Cube has a similar agreement with AMD.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-57 California Micro Devices North American Company Profiles

CALIFORNIA MICRO DEVICES (CMD)

California Micro Devices Corporation 215 Topaz Street Milpitas, California 95035-5430 Telephone: (408) 263-3214 Fax: (408) 942-9505

IC Manufacturer

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

1993 1994 1995 1996 1997 Sales 30 27 36 40 33 Net Income 1 (7) (31) 5 1 R&D Expenditures 43434 Capital Expenditures 3 1 4 n/a

Employees 247 273 229 297 300

Company Overview and Strategy

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

Military Technology Auto 2% Other 3% 3% Medical 3% 4% Instruments 6% Semiconductor PCs/Peripherals Products 36% Workstations 33% 16% Thin Film Products 64% Communications/Networking 30%

1996 Sales by End-Use Market 1996 Sales by Product Type

1-58 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles California Micro Devices

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

Foreign sales, primarily in Europe, Canada, and Asia, accounted for approximately 31 percent of net product sales in fiscal 1996.

Management

Wade Meyercord Chairman Jeffrey C. Kalb President and Chief Executive Officer Nick Bacile Vice President, Marketing Robert Filiault Vice President, Worldwide Sales John Jorgensen Vice President, Engineering Rao R. Penumarty Vice President and General Manager, Milpitas Operations Basker B. Rao, Ph.D. Vice President and General Manager, Tempe Operations Arieh Schifrin Vice President, Operations John E. Trewin Vice President and Chief Financial Officer

Products and Processes

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

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-59 California Micro Devices North American Company Profiles

Semiconductor Fabrication Facilities

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

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

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

Key Agreements

• California Micro Devices has a comprehensive strategic alliance with Hitachi Metals, Ltd. (HML), a subsidiary of Hitachi, Ltd., that involves joint IPEC product development, manufacturing, marketing, and worldwide distribution. Also under the alliance, HML holds a 10 percent stake in CMD.

1-60 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Calogic

CALOGIC

Calogic Corporation 237 Whitney Place Fremont, California 94539 Telephone: (510) 656-2900 Fax: (510) 651-3025

IC Manufacturer

Employees 200

Company Overview and Strategy

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

Management

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

Products and Processes

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

CRT Related Products : Video Products : CRT driver amplifiers (30MHz to 185MHz) Widebank buffers and amplifiers Pre-amplifiers Buffers

Instrumentation Products : Full Custom and Semicustom Capabilities : Op amps Design, layout, manufacturing, and test References Analog switches

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-61 Calogic North American Company Profiles

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

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

Semiconductor Fabrication Facilities

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

1-62 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Catalyst

CATALYST SEMICONDUCTOR

Catalyst Semiconductor, Inc. 1250 Borregas Avenue Sunnyvale, California 94089 Telephone: (408) 542-1000 Fax: (408) 542-1200

Fabless IC Supplier

Regional Headquarters/Representative Locations

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

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

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

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

1992 1993 1994 1995 1996 * Sales 29 33 54 49 60 Net Income (7) (2) (22) 2 4 R&D Expenditures 75779

Employees 100 90 60 65 82

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

Company Overview and Strategy

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

The company's strategy is to become a leading supplier of flash memory devices while maintaining its position as a leading supplier of EEPROM products. The company’s development efforts are focused on improving its fabrication processes and the development of advanced products. During 1996, development work began on next-generation versions of its flash memory and EEPROM products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-63 Catalyst North American Company Profiles

Japan 16% United States Europe 40% 21% Far East 23%

1996 Sales by Geographic Region

Management

C. Michael Powell Chairman, President, and Chief Executive Officer Chris Carstens Vice President, Quality and Reliability Heber Clement Vice President, Operations Scott Parker Vice President, Sales and Marketing Alan Renninger Vice President, Technology Development Daryl Stemm Vice President, Finance and Administration, and Chief Financial Officer Radu Vanco Vice President, Engineering Fred Leung Director, Strategic Marketing Richard Palm Director, Marketing

Products and Processes

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

Most of the company's products are designed and manufactured using a 1.0µm CMOS EEPROM process or a 0.7µm flash memory process, however, the move to a 0.8µm CMOS EEPROM process and a 0.5µm flash memory process are currently under way.

Semiconductor Fabrication Facilities

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

1-64 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Catalyst

Key Agreements

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

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-65 Cherry Semiconductor North American Company Profiles

CHERRY SEMICONDUCTOR

Cherry Semiconductor Corporation 2000 South County Trail East Greenwich, Rhode Island 02818-0031 Telephone: (401) 885-3600 Fax: (401) 885-5786 Web Site: www.cherrysemiconductor.com

IC Manufacturer

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

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

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

Employees 415 450 500 550 975

Company Overview and Strategy

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

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

1-66 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Cherry Semiconductor

Europe 5%

Telecom 16% Asia-Pacific 14% Computer 16% Automotive 68% United States 81%

1996 Semiconductor Sales 1996 Semiconductor Sales by End-Use Market by Geographic Region

Management

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

Products and Processes

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

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

Semiconductor Fabrication Facilities

Cherry Semiconductor Corporation 2000 South County Trail East Greenwich, Rhode Island 02818 Cleanroom size: 24,000 square feet Capacity (wafer/week): 2,500 Wafer sizes: 100mm, 150mm Processes: Bipolar, BiCMOS Products: Linear and mixed-signal ICs and ASICs Feature size: 1.4µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-67 Cherry Semiconductor North American Company Profiles

Key Agreements

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

1-68 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Chip Express

CHIP EXPRESS

Chip Express Corporation 2903 Bunker Hill Lane, Suite 105 Santa Clara, California 95054 Telephone: (408) 988-2445 Fax: (408) 988-2449 Web Site: www.chipexpress.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

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

Financial History ($M)

1994 1995 1996 Sales 10 18 28

Employees 80 110 140

Company Overview and Strategy

Chip Express started its operations in 1990 when it was spun out from Elron Electronics Industries Ltd. (an Israeli high technology holding company). The company provides a complete “Time-to-Market Solution™” featuring rapid turn application-specific integrated circuit (ASIC) products and services. The company offers flexible ASIC production with a seamless migration path for transferring a logic design from netlist to fast-turn prototypes and then to volume production. The company’s product, called LPGA (laser programmable gate array), is a customized gate array fabricated with a patented technology.

The company’s product offering includes 24 hour laser prototypes, one week pre-production/low-volume qualities, and one month high-volume ASIC production. Rapid prototyping service is provided utilizing its proprietary QuICk® laser micro-machining system to personalize one die at a time in less than two hours. Low- volume production is provided using the OneMask® technology to personalize a single wafer at a time with a single mask, in a single etch process of multi-layers. Cost-effective mass production is provided by implementing the same layout, using the TwoMask® personalization technology at conventional fabs.

Chip Express believes its ASIC design methodology combined with easy re-spin and fast turnaround time significantly reduces the product development cycle. The company provides complete design kits supporting popular EDA design environments, including Cadence, Viewlogic, and Synopsys.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-69 Chip Express North American Company Profiles

Management

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

Products and Processes

Chip Express offers CMOS gate arrays with densities that range from 4K to 125K gates. In 2Q96, the company introduced the new CX2000 gate array family, which features a 0.6µm triple metal device with approximately 200K gates plus configurable embedded memory of up to 128K bits. In 1Q97, the company introduced the next generation CX2001 product family with added features such as analog PLL, ATPG, and better access to memory. In addition, in 2Q97, the company developed a 0.5µm device.

Planned for release during 1997 is the CX3000 product family featuring a 0.35µm triple-level-metal process technology, which is being co-developed with foundry partners.

Semiconductor Fabrication Facilities

Chip Express provides prototyping and production services with on-site manufacturing. The company has a 37,000 square foot facility that provides gate array prototyping and low volume production services. The laser- based QuICk System operates in a computer room, but the production areas within the machine are cleanroom environments. The prototype is personalized in a self-contained Class 100 laminar air flow cell. Chip Express uses base arrays that are manufactured by international gate array vendors and are compatible with their gate array families. For ASIC prototyping, the QuICk System disconnects the predefined links of multi-layer metal in a single operation with 20,000 per second. A real time computer and image processing system use the Cut-List to control the automatic laser cutting process.

For low-volume ASIC production, Chip Express employs its OneMask technology. The OneMask operation is in a Class 10 cleanroom environment, processing a single wafer at a time, in a single etch step using only a single mask for personalization.

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

1-70 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Chips and Technologies

CHIPS AND TECHNOLOGIES

Chips and Technologies, Inc. 2950 Zanker Road San Jose, California 95134-2126 Telephone: (408) 434-0600 Fax: (408) 894-2082 Web Site: www.chips.com

Fabless IC Supplier

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

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

Employees 400 220 180 185 209

Company Overview and Strategy

Chips and Technologies (also known as Chips) supplies advanced semiconductor devices to the worldwide personal computer industry. The company has a product portfolio that includes display controllers, graphics accelerators, video devices, communications ICs, and system logic chipsets. These products are built into a wide range of systems from compact portables to high-performance desktop computers.

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

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

Today, the focus of Chips is on single-chip systems for emerging markets such as graphics controllers for notebook PCs. Chips’ has been successful in building this business; its flat panel display graphics controllers represented 84 percent of total revenues in fiscal 1996. Future plans are to move beyond graphics, core logic, and I/O to add multimedia products, as well as more communications-related devices.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-71 Chips and Technologies North American Company Profiles

North America 33% Asia and Europe 67%

1996 Sales by Geographic Region

Management

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

Products and Processes

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

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

Planned for release in 1997 is portable graphics controller chips with embedded DRAM, designed with foundry partner Samsung Semiconductor. The two companies announced in mid-1996 a plan to jointly develop integrated memory products as part of a plan by Chips to introduce a new generation of low-power, high- bandwidth, and high-performance products that are software-compatible with its HiQVideo product family.

The majority of Chips’ products are built using 0.6µm and 0.5µm triple-layer-metal CMOS processes. The company plans to utilize 0.5µm and 0.35µm process technology for many of its future products.

1-72 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Chips and Technologies

Semiconductor Fabrication Facilities

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

Key Agreements

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-73 Cirrus Logic North American Company Profiles

CIRRUS LOGIC

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

IC Manufacturer

Regional Headquarters/Representative Locations

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

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

1993 1994 1995 1996 1997 Sales 355 557 889 1,147 917 Net Income 21 45 61 (36) (46) R&D Expenditures 73 127 166 239 231 Capital Expenditures 27 36 47 128 n/a Joint Venture Investment — — 64 45 n/a

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

Company Overview and Strategy

Cirrus Logic, founded in 1984, is a leading supplier of advanced integrated circuits for multimedia (graphics, video, audio), communications (modems, networking, high-speed I/Os), mass storage (magnetic hard disk and CD-ROM), and data acquisition. The company’s products and technologies focus on desktop, portable, and handheld computing systems, as well as industrial and consumer electronics.

Cirrus Logic targets both emerging high growth markets and large existing markets that are undergoing major product or technology transitions. Cirrus Logic’s major customers consist of original equipment manufacturers (OEMs) of personal computers and PC add-in boards, as well as disk drive manufacturers.

1-74 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Cirrus Logic

Europe Mass Storage 7% Graphics Japan 21% 29% 19% North America 40% Communications Crystal 24% Asia-Pacific Semiconductor 34% 26%

1997 Sales by Product Group (est) 1997 Sales by Geographic Region (est)

From its initial public offering in 1989 through its fiscal year 1995, Cirrus Logic posted record revenue growth and was consistently profitable year after year. During this period, the company set industry growth records as it quickly reached the billion dollar revenue run rate. This rapid growth was challenged in fiscal year 1966, as the company faced a combination of softening market conditions, a delayed transition to new products, and a diversion of engineering resources to support manufacturing at a dozen foundries around the world. As a result, Cirrus Logic posted its first-ever losses in fiscal 1996. This prompted the company to streamline operations and intensify its focus on key product development within its core competencies of multimedia, communications, and mass storage. A workforce reduction and the divestiture of non-core businesses was also included in its streamlining efforts.

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

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

In early 1997, Cirrus Logic set up a new organizational structure under which came the establishment of the Office of the President and the integration of the company’s product operations into four divisions: Personal Computer Products—which includes all graphics/video products from the former Graphics Company, the PC audio products from Crystal Semiconductor, and the PC modem chipsets from the former Personal Systems Division; Communications Products—which includes the WAN and LAN networking products from Crystal Semiconductor, and adds enterprise networking and Internet access chip solutions from the former Personal Systems Division; Mass Storage Products—which includes magnetic hard disk and CD-ROM products; and Crystal Semiconductor Products—which includes products from the former Industrial Products Division of Crystal.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-75 Cirrus Logic North American Company Profiles

Management

Michael L. Hackworth President and Chief Executive Officer Suhas S. Patil Chairman and Executive Vice President, Products and Technology George Alexy Chief Products and Marketing Officer, and Office of the President Thomas F. Kelly Chief Operating Officer and Office of the President Michael L. Canning President, Mass Storage Products Company William W.Y. Chu President, Graphics Company James H. Clardy President, Crystal Semiconductor Corporation Robert V. Dickson President, Graphics Company Edward Ross President, Worldwide Manufacturing William D. Caparelli Senior Vice President, Worldwide Sales Kenyon Mei Senior Vice President and GM, Personal Systems Business Unit Robert F. Donohue Vice President and Chief Legal Officer Patrick Boudreau Vice President, Human Resources Thomas P. Rigoli Vice President, Corporate Communications Halappa Ravindra Vice President, Research and Development Ron Shelton Vice President, Finance, and Chief Financial Officer

Products and Processes

Multimedia Graphics/Video Cirrus Logic’s graphics/video chip solutions provide high-performance 2D/3D acceleration and full-motion video for mainstream personal computing for both desktop and portable applications. During fiscal 1997, the company introduced its Laguna3D™ graphics accelerator, the industry’s first graphics chip solution to employ the Rambus memory architecture. Cirrus Logic was also one of the first to sample and demonstrate a 3D graphics chip solution incorporating Intel’s AGP (accelerated graphics port). As Cirrus Logic continues to expand its family of Rambus-based Laguna3D chips, the company is also working closely with Microsoft on the “Talisman” initiative, which will result in a DirectX, Rambus-based, hardware reference design for 2D and 3D graphics, video, and advanced audio functionality. This reference design is expected to facilitate the deployment of Talisman-driven motherboard implementations and graphics accelerator cards beginning in calendar year 1998.

Multimedia Audio Cirrus Logic offers one of the industry’s most advanced audio chip solutions for multimedia PCs through its Crystal Semiconductor subsidiary in Austin, Texas. Crystal has distinguished itself as a leading supplier of 16- bit stereo codecs for PCs, pioneering the use of delta sigma technology in 1988, and enabling 16-bit PC audio with a single-chip codec in 1991. In 1995, Crystal developed the first single-chip audio solution that complied with Windows 95, and in 1996 its leadership continued with the integration of 3D sound into a single-chip solution for PC motherboards. Crystal recently announced the PC industry’s first single-chip solution integrating PCI-compliant 3D audio acceleration and Dolby AC-3 decoding. The company’s portfolio of multimedia audio chips include solutions for audio processing for consumer products such as digital audio tape, digital compact cassettes, and automotive sound systems.

1-76 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Cirrus Logic

Communications Cirrus Logic launched the industry’s first two-chip intelligent fax/data/voice modem in 1992. More recently, the company introduced a high-performance, three-chip version as part of its FastPath™ Telephony Platform. The chipset, which employs a 32-bit Advanced RISC Machines (ARM) processor, is software configurable to accommodate high-speed 56 Kbps Internet access, using the x2 protocol from U.S. Robotics. By simply downloading software, the FastPath platform can be upgraded to conform to the worldwide 56 Kbps standard when it is established. In addition to its powerful family of modem chips, Cirrus Logic also offers high-speed serial and parallel I/O devices for multi-channel, multi-protocol communications. Moreover, through its Crystal Semiconductor subsidiary, the company is a leading supplier of monolithic T1/E1 line interface circuits, CMOS Ethernet LAN line interface circuits, and infrared interface circuits.

Mass Storage Cirrus Logic is a leading supplier of chips that perform the key control function in the most advanced hard disk drives. The company’s controllers comply with AT (IDE), PCMCIA, SCSI, and high-speed SCSI2 standards. Cirrus Logic began offering read-write electronics for disk drives in 1993, and was the first supplier to provide Partial Response Maximum Likelihood (PRML) data-detection technology in its ICs. The company’s most recent PRML chip solutions enable 3.5-inch hard disk drives to achieve more than 1G per platter area density using thin-film read heads. The company’s line of hard-drive controller chips also features “ID-less” technology that can increase the capacity of a hard-disk drive by up to 10 percent. In 1996, Cirrus Logic introduced high-speed encoder/decoder chips for next generation CD-ROM applications. These new encoders support CD-Recordable/Erasable (CD-R/E) capabilities, which lets the end-user record, erase, and re-use the CD. Available in SCSI interface and ATAPI interface versions, the encoders also support the industry’s fastest 18x read and 8x record speeds.

Data Acquisition Through its Crystal Semiconductor subsidiary, Cirrus Logic has established a broad line of analog-to-digital converters consisting of general-purpose and low-frequency measurement devices. The family includes more than twenty products used in industrial automation, instrumentation, medical, military, and geophysical applications.

The majority of Cirrus Logic's IC products are manufactured using 0.8µm, double-layer-metal CMOS and 0.6µm, triple-layer-metal CMOS process technologies, although some use other CMOS processes (high and low voltage), while others use BiCMOS or GaAs processes (for RF chips).

Semiconductor Fabrication Facilities

In 1994, Cirrus Logic made a move to abandon its completely fabless approach by forming a joint venture with IBM to manufacture ICs for both companies at one of IBM's East Fishkill, New York, fab facilities. The venture is operating as a separate company, named MiCRUS (see Key Agreements).

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-77 Cirrus Logic North American Company Profiles

The initial phase of the program resulted in the expansion of MiCRUS and the formation of Cirent Semiconductor, a new joint venture with Lucent Technologies, that operates within an existing Lucent wafer manufacturing facility in Orlando, Florida. Cirent is 40 percent owned by Cirrus Logic and 60 percent by Lucent Technologies. The two firms will equally split the production output of the new 200mm wafer facility, which is initially focusing on 0.35µm, with plans to migrate to 0.25µm processing in 1998.

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

Under a foundry venture agreement with UMC and two other U.S. semiconductor companies, a new company, United Silicon, Inc., has been formed in Hsinchu, Taiwan. Production at the new fab is scheduled to commence in 1Q98. Meanwhile, Cirrus Logic will expand its current relationship with TSMC to include a long-term purchase agreement.

MiCRUS Cirent Semiconductor 1580 Route 52 9333 South John Young Parkway Hopewell Junction, New York 12533 Orlando, Florida 32819 Telephone: (914) 892-2121 Telephone: (407) 345-6000 Capacity (wafers/week): 9,000 Capacity (wafers/week): 2,500 Wafer size: 200mm Wafer size: 200mm Process: CMOS Process: CMOS Products: DRAMs, MPRs Products: ASICs, MPRs Feature sizes: 0.35µm-0.6µm Feature sizes: 0.35µm, 0.5µm (Joint venture with IBM Microelectronics. (See Key Agreements.) See Key Agreements.)

Key Agreements

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

• Cirrus Logic licensed the Rambus high-performance DRAM interface architecture in early 1995. The license gives Cirrus the right to use the Rambus interface in its graphics controllers.

• Cirrus Logic is licensed to embed Advanced RISC Machines' ARM processor in its future ICs for communications, computer, consumer, and other applications.

• IBM and Cirrus Logic formed a joint manufacturing venture called MiCRUS in 1994. IBM and Cirrus Logic own 52 percent and 48 percent of MiCRUS, respectively. Volume production of logic chips for Cirrus and memory ICs for IBM began in mid-1995. The agreement does not include product and/or technology exchange. In 1996, Cirrus Logic entered into a similar joint venture agreement with Lucent Technologies to form Cirent Semiconductor in Orlando, Florida. In each joint venture, Cirrus Logic has rights to 50 percent of the manufacturing output.

1-78 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Crosspoint Solutions

CROSSPOINT SOLUTIONS

Crosspoint Solutions, Inc. 694 Tasman Drive Milpitas, California 95035 Telephone: (408) 324-0200 Fax: (408) 324-0123

Fabless IC Supplier

Company Overview and Strategy

With equity funding from ASCII Corporation, Crosspoint Solutions was founded in 1989 to develop a field- programmable replacement for standard gate arrays. A proprietary cell and routing architecture, coupled with a unique interconnect technology, enables Crosspoint to meet the performance and density demands of the mainstream CMOS gate array market. Crosspoint was one of the first companies offering a field-programmable challenge to gate arrays.

Management

Robert N. Blair President and Chief Executive Officer Thomas Chan Vice President, Manufacturing John Daws Vice President and Chief Financial Officer Scott Graham, Ph.D. Vice President, Technology Development Michael Levis Vice President, Business Development and Product Marketing

Products and Processes

The gate array granularity and transistor-level interconnect of Crosspoint's FPGA are made possible by the company's proprietary cell and routing architecture and a unique antifuse technology. An antifuse is a programmable switch that has a very high impedance initially, but exhibits a low resistance after programming.

Crosspoint's unique antifuse fabrication technique provides antifuse elements with very low capacitance and low "on" resistance. This translates directly to higher operating speed. The programming is permanent and non- volatile, resulting in one-time-programmable (OTP) devices.

In 1996, Crosspoint unveiled its CP20K CrossFire™ family of FPGAs. The CP20K series consists of six gate density options covering the 2.2K to 20K range with I/O counts ranging from 91 to 250. The FPGAs are manufactured using a high-performance 0.6µm two-layer-metal CMOS process and are architecturally compatible with standard mask-programmable gate arrays.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-79 Crosspoint Solutions North American Company Profiles

Also in 1996, Crosspoint announced its CoreBank™ program for realizing system-level FPGAs. CoreBank comprises a rich library of systems building blocks developed by Crosspoint Solutions and its CoreBank program partners. CoreBank includes digital signal processing, communications, computer, and networking cores, as well as a large selection of functions ranging from register files to interface circuits.

Semiconductor Fabrication Facilities

Crosspoint has a long-standing foundry partnership with Hitachi. LG Semicon was added on in 1996 as a foundry partner (see Key Agreements).

Key Agreements

• In 1Q96, Crosspoint gave LG Semicon limited licensing, manufacturing, and marketing rights to its CP20K FPGA architecture in exchange for foundry access to LG’s 0.8µm and 0.6µm two- and three-layer-metal IC technology.

1-80 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Cypress Semiconductor

CYPRESS SEMICONDUCTOR

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

IC Manufacturer

Regional Headquarters/Representative Locations

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

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

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

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

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

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

Company Overview and Strategy

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-81 Cypress Semiconductor North American Company Profiles

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

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

Programmable International Products 27% 19% Memory Data Communications Products North America and Computation 51% 73% Products 30%

1996 Sales by Geographic Region 1996 Sales by Product Division

During 1996, Cypress experienced a decline in sales due to price erosion in the memory market, but still had a profitable year. Cypress entered 1997 with a reinforced strategy to continue developing new products and processes utilizing its proprietary technologies to address the needs of its target markets as well as enter new markets in order to reduce its dependence on specific markets.

Several strategic activities took place at Cypress during the late-1996 to early-1997 timeframe. Cypress entered the microcontroller market in late 1996 with its first 8-bit RISC-based family of universal serial bus (USB) microcontrollers. Designed for use in peripherals and hub products, the MCUs integrate digital logic, analog, PROM, SRAM, and microcontroller logic.

In early 1997, Cypress announced the creation of the Non-Volatile Memory Division that will focus directly on the EPROM market. The creation of this business unit reinforces the company’s commitment to remain a key player in the EPROM market.

Also in early 1997, Cypress announced that it would no longer market its FPGA products. As part of a new agreement with QuickLogic (see Key Agreements), Cypress will no longer be a second-source for QuickLogic’s FPGA products and will only produce FPGA devices for QuickLogic. Cypress will redirect its efforts toward its PLD products. For 1997, the company plans to reach the 20,000 gate level.

1-82 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Cypress Semiconductor

Another market Cypress entered in the first part of 1997 was the slow-speed SRAM market. In March 1997, Cypress rolled out a family of ultra-low power, slow asynchronous SRAM devices that feature access times of 70ns and range from 1.65V to 5V. The devices are manufactured using Cypress’ proprietary six-transistor (6T), 0.5µm RAM3 process technology.

Management

Pierre Lamond Chairman T.J. Rodgers President and Chief Executive Officer Antonio Alvarez Vice President, Research and Development Dan Barrett Vice President, European Sales and Marketing Lou Chetaud Vice President, Worldwide Manufacturing Bernard Glasauer Vice President, Quality and Reliability Assurance Emmanuel Hernandez Vice President, Finance, and Chief Financial Officer Larry Jordan Vice President, Marketing Jeff Kaszubinski Vice President, Memory Products Division Paul Keswick Vice President, New Products Division Jim Kupec Vice President, Products Division Jeff Linden Vice President, Non-Volatile Memory Division Lothar Maier Vice President, Worldwide Wafer Manufacturing J. Daniel McCranie Vice President, Sales and Marketing Christopher Norris Vice President, Programmable Logic Division Rich Parker Vice President, North American Distribution John Ramacciotti Vice President, Procurement Sean Salehi Vice President, Management Information Systems and Chief Information Officer R. Michael Starnes Vice President, Process Technology Joyce Sziebert Vice President, Human Resources Bruce Threewit Vice President, Systems Development John Torode Vice President, Computer Products Division Ron Treadway Vice President, Data Communications Division William Verde Vice President, Strategic Accounts Michael Villott Vice President, North American Sales

Products and Processes

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

SRAMs Specialty Memories and Memory Modules • 4K to 1M CMOS SRAMs • Industry-standard FIFOs • 64K and 256K BiCMOS SRAMs • Bidirectional FIFOs • 1K and 16K ECL SRAMs • Clocked FIFOs • 64-bit x 18 cache tag RAMs • Asynchronous FIFOs • 128K and 256K cache RAMs • Dual-port RAMs • Memory accelerator MCMs

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-83 Cypress Semiconductor North American Company Profiles

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

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

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

Semiconductor Fabrication Facilities

In 3Q96, Cypress announced its decision to restructure its Fab I facility. Previously, Fab I was used for low- production but now is used for research and development purposes only. Also during 3Q96, Cypress put construction of Fab V, which began in 1995, on hold until market conditions look more favorable.

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

1-84 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Cypress Semiconductor

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

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

Key Agreements

• In February 1997, Cypress and QuickLogic announced the cancellation of a previous joint-develop, licensing, and foundry agreement for high-performance FPGA products and released plans for establishing a new foundry alliance. As part of a new five-year agreement, Cypress will no longer market and sell antifuse FPGA products, but will continue to serve as a foundry for QuickLogic’s FPGAs. In addition, QuickLogic agreed to purchase all of Cypress’s existing FPGA inventory. Cypress holds a stake of less than 10 percent in QuickLogic.

• In 2Q96, Cypress settled its PLD litigation with AMD with a cross-licensing agreement.

• Cypress expanded its agreement with Altera Corporation regarding Altera's MAX 5000 EPLD line to bring a family of smaller, faster devices to market.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-85 Cyrix North American Company Profiles

CYRIX

Cyrix Corporation 2703 North Central Expressway Richardson, Texas 75080-2010 Telephone: (214) 994-8388 Fax: (214) 699-9857 Web Site: www.cyrix.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Cyrix K.K. • Kohoku-ku, Yokohama, Japan Telephone: (81) (45) 471-1661 • Fax: (81) (45) 471-1666

Europe: Cyrix International, Ltd. • Swindon, Wiltshire, United Kingdom Telephone: (44) (1793) 417777 • Fax: (44) (1793) 417799

Asia-Pacific: Cyrix International, Ltd. • Hong Kong Telephone: (852) 2485-2285 • Fax: (852) 2485-2920

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

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

Employees 150 220 309 400 391

*As part of the agreement made with IBM in early 1994, Cyrix purchases substantially all of the equipment required by IBM to manufacture Cyrix products.

Company Overview and Strategy

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

1-86 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Cyrix

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

Plans for 1997 include a focus on promoting the company’s 6x86 while managing a transition to a successor product, code-named M2. The M2 will feature significant architectural enhancements and will be fully compatible with multimedia extension (MMX) technology. In addition, Cyrix has developed a new product called the MediaGX™ processor that is targeted at the sub-$1,000 consumer PC market. The MediaGX™ integrates audio, video, and certain system functions within the processor unit, providing a complete system solution. Cyrix also designed the entire reference system for the MediaGX to accelerate market acceptance and enable quick time-to- market for manufacturers.

Asia-Pacific 24% North America 46% Europe 30%

1996 Sales by Geographic Region

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

Management

Harvey B. Cash Chairman James W. Swent* Chief Financial Officer and Acting Chief Executive Officer Kenneth B. Edoff Senior Vice President, Sales Kevin C. McDonough* Senior Vice President, Engineering Mark W. Bluhm Vice President, Strategic Planning and Business Development Nancy B. DeChaud* Vice President, Manufacturing Russell N. Fairbanks, Jr. Vice President and General Counsel Robert D. Maher Vice President, Engineering Lewis R. Paceley Vice President, Marketing Richard Rippeteau Vice President, Sales, Americas Everett J. Roach Vice President, Sales, Asia-Pacific Stephen A. Tobak Vice President, Corporate and Channel Marketing

*Office of the President

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-87 Cyrix North American Company Profiles

Products and Processes

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

Cyrix’s 6x86 (formerly called the M1) is based on a superscalar, superpipelined architecture and a RISC core. The 6x86 is offered at several performance levels ranging from PR133+ to PR200+. The PR+ nomenclature suggests which specific higher-clock-rate Intel Pentium each of the members best compete with.

Launching of the company’s M2 processor was scheduled to occur in May 1997. Building on the 6x86 core, the six-million-transistor M2 features Cyrix’s fully compatible MMX technology, a quadrupled (64KByte) internal cache, enhanced memory management, and other architectural and performance innovations. The M2 is claimed to deliver up to twice the performance of the 6x86 processors on 32-bit applications. Meanwhile, the development of the seventh-generation processor, called the M3 or 7x86, is under way.

Cyrix began shipping its first MediaGX processors in early 1997. Due to the number of functions integrated on- chip, the MediaGX eliminates the need for L2 cache, memory controller, graphics controller, graphics memory, and audio card. Although not socket compatible with competing Pentium processors with MMX, Cyrix’s 120MHz and 133MHz MediaGX processors have equivalent Winstone 97 performance to Intel 120MHz and 133MHz processors. The MPU interfaces with the Cyrix-designed Cx5510 core logic chipset that provides a PCI-ISA bridge. By the end of 1997, the MediaGX is expected to reach 200MHz.

The company currently uses 0.35µm five-layer-metal CMOS technology for its 6x86 products. The initial MediaGX processor is being produced with IBM’s 0.44µm three-layer-metal CMOS process, with a 0.4µm process scheduled for implementation by the end of 1997. The M2 is being produced with IBM’s 0.33µm five-layer-metal CMOS process.

Semiconductor Fabrication Facilities

Cyrix currently has relationships with IBM Microelectronics and SGS-Thomson for the manufacture of its ICs. SGS- Thomson has been a manufacturing partner of Cyrix since October 1990. In early 1994, their pact was extended and is now valid through the end of 1997. The two companies are said to be negotiating another extension. Most, if not all, the 6x86 production by SGS-Thomson is currently being sold under the ST name and not sold back to Cyrix.

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

1-88 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Cyrix

To complement its partnerships with SGS-Thomson and IBM, Cyrix is negotiating to sign up a third manufacturing partner. However, the arrangement will likely be for foundry supply only. IBM and SGS-Thomson are licensed to also produce Cyrix-designed x86 processors under their own names.

The construction of its own fabrication facility is not part of the company’s current business plan. However, the option is not being ruled out. A jointly owned fab is a more likely option.

Key Agreements

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

• Cyrix extended its wafer supply agreement with SGS-Thomson in 1994. Under the new arrangement, SGS- Thomson increased the number of wafers it produces for Cyrix and is allowed to make a certain percentage of those same wafers for itself. In addition, Cyrix granted SGS-Thomson the right to use certain Cyrix-designed chips as part of SGS-Thomson’s ASIC libraries. SGS-Thomson is allowed to produce and sell such ASIC products under its own name in unlimited quantities, with Cyrix receiving royalties from the sale of the devices. Also, Cyrix has the right to sell the SGS Thomson-designed ASICs under its own name.

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-89 Dallas Semiconductor North American Company Profiles

DALLAS SEMICONDUCTOR

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

IC Manufacturer

Regional Headquarters/Representative Locations

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

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

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

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

Employees 696 748 850 1,000 1,300

Company Overview and Strategy

Founded in 1984, Dallas Semiconductor designs, manufactures, and markets high performance CMOS ICs and semiconductor-based systems that provide innovative and cost-effective solutions to electronic design problems in a wide range of markets. The company's continuous new product development strategy serves as a means to increase future revenues and avoid dependence upon a single industry, market, or customer. Its products are sold to OEMs in the personal computer and workstation, scientific and medical equipment, industrial control, automatic information, telecommunications, and other markets.

1-90 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Dallas Semiconductor

Europe Computing Industrial 19% 33% 34% North America Asia 51% Communications 30% 33%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

Management

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

Products and Processes

Dallas Semiconductor's product groups include:

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

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-91 Dallas Semiconductor North American Company Profiles

Semiconductor Fabrication Facilities

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

1-92 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Digital Semiconductor

DIGITAL SEMICONDUCTOR

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

Captive IC Manufacturer

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

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

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

Employees 2,500

*Calendar year

Company Overview and Strategy

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-93 Digital Semiconductor North American Company Profiles

Management

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

Products and Processes

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

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

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

Semiconductor Fabrication Facilities

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

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

1-94 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Digital Semiconductor

Key Agreements

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

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

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-95 Dionics North American Company Profiles

DIONICS

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

IC Manufacturer

Employees 35

Company Overview and Strategy

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

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

Management

Bernard L. Kravitz President Sherman Gross Vice President

Products and Processes

Photovoltaic ICs, SSRs, and MOSFET-drivers.

Semiconductor Fabrication Facilities

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

1-96 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles DSP Group

DSP GROUP

DSP Group, Inc. 3120 Scott Boulevard Santa Clara, California 95054 Telephone: (408) 986-4300 Fax: (408) 986-4323 Web Site: www.dspg.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: DSP Group Japan • Tokyo, Japan Telephone: (81) (3) 5496-1611

Europe: DSP Group Europe • Massy, France Telephone: (33) (2) 47-68-67-54

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

1992 1993 1994 1995 1996 Sales 9 12 29 50 53 Net Income (6) (0.4) 4 7 6 R&D Expenditures 42488

Employees 106 115 120

Company Overview and Strategy

DSP Group, Inc. develops, licenses, and markets digital signal processing (DSP) ICs, cores, and related software targeted at digital speech applications in the multimedia personal computer, consumer telephony, and computer telephony markets.

DSP Group began business in 1987 with the purchase of a small design house that was involved in paramilitary DSP-related design for applications such as noise cancellation and eavesdropping. The company began developing its own DSPs and established a design center in Israel in 1990.

The company’s strategy is to combine three key technologies—speech processing algorithms, telephony algorithms, and digital signal processors—to deliver a wide range of enabling application-specific DSPs to its target markets.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-97 DSP Group North American Company Profiles

Royalties/ Licensing/Other 23%

DSPs 77%

1996 Sales by Product Type

Much of DSP Group’s revenues are generated in international markets, primarily in Europe and Asia.

Management

Igal Kohavi Chairman Eli Ayalon President and Chief Executive Officer Martin Skowron Senior Vice President, Operations Avi Basher Vice President, Finance, and Chief Financial Officer Irving Gold Vice President, DSP Core Technology Moshe Shahaf Chief Technology Officer Gideon Wertheizer Vice President, VLSI Design Center Serdar Yurdakul Vice President, PC Telephony and TrueSpeech Licensing

Products and Processes

DSP Group has developed a family of low-power consumption, low-cost DSP core architectures that are suitable for consumer, mobile computer, and wireless communications products. The company’s products are manufactured using 0.6µm-0.8µm CMOS technologies.

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

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

1-98 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles DSP Group

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

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

Current licensees of the PineDSPCore and OakDSPCore architectures include Adaptec, Asahi Kasei Microsystems, Atmel-ES2, DSP Communications, GEC Plessey Semiconductors, Harris, Hyundai/Symbios Logic, Integrated Circuit Systems, LSI Logic, NEC, Rohm, Samsung, Siemens, TI/Silicon Systems, TEMIC, TSMC, VLSI Technology, and Xicor.

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

Semiconductor Fabrication Facilities

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-99 EDI North American Company Profiles

ELECTRONIC DESIGNS (EDI)

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

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Electronic Designs Europe Ltd. • Surrey, United Kingdom Telephone: (44) (1276) 472637 • Fax: (44) (1276) 473748

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

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

Employees 85 125

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

Company Overview and Strategy

Electronic Designs, Inc. was originally established in 1984 under the name of Crystallume. From 1984 to October 1995, the company had been primarily engaged in research and development of diamond coatings using CVD technologies. In October 1995, Crystallume acquired Electronic Designs, Inc., a fifteen-year-old privately held Massachusetts-based company involved in the manufacture of high density memory components and active- matrix LCDs. As a result of the acquisition, the company has shifted its emphasis from diamond coatings to the design, manufacture, and sale of semiconductor and flat panel display products. To reflect this shift in business focus, the company changed its name from Crystallume to Electronic Designs, Inc. (EDI) in March 1996.

1-100 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles EDI

Diamond Products Displays 2% 6%

Memory Products 92%

1996 Sales by Product Type

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

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

The company’s diamond research is focused on improving tooling products and related diamond coating processes as well as developing numerous other applications for its diamond coating process. Furthermore, EDI is developing a semiconductor product incorporating diamond as a heat spreader to significantly improve heat removal and thus improve device performance and reliability in heat sensitive applications.

In fiscal 1996, approximately 34 percent of EDI’s revenues were represented by export sales to customers primarily in Europe.

Management

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

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-101 EDI North American Company Profiles

Products and Processes

EDI's products include the following:

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

Semiconductor Fabrication Facilities

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

Key Agreements

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

• EDI signed a licensing agreement with Thomson-CSF that enables EDI to make and market products using the French company's technology for 3D stack memory products.

1-102 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles EG&G Optoelectronics

EG&G OPTOELECTRONICS

EG&G, Inc. Optoelectronics Group 2175 Mission College Boulevard Santa Clara, California 95054 Telephone: (408) 565-0700 Fax: (408) 565-0777

IC Manufacturer

Regional Headquarters/Representative Locations

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

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

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

Optoelectronics Sales 210 201 213 259 270

Company Overview and Strategy

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

Optoelectronics 19% Technical Services Mechanical 39% Components 19% Instruments 23%

1996 Sales by Business Segment

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-103 EG&G Optoelectronics North American Company Profiles

The divisions involved in the production of integrated circuit-related devices are EG&G Reticon and EG&G IC Sensors. Reticon was founded in 1971 and became a subsidiary of EG&G in 1976. From its start, Reticon has been a leader in image sensing and signal processing technology. It was among the first semiconductor companies to specialize in solid-state imaging components and vision system products. IC Sensors was formed originally as a spin-off from Foxboro/ICT in 1982 and was acquired by EG&G in 1994. It is a leading developer and manufacturer of pressure sensors, accelerometers, valves, and custom microstructures utilizing advanced silicon micromachining technology.

Management

Richard Brownhill General Manager, EG&G IC Sensors Chris Raanes General Manager, EG&G Reticon

Products and Processes

EG&G Reticon Products • Image sensing products—character scan devices, instrumentation devices, multiplexer array chips, photodiode arrays, pinned photodiode arrays, and CCDs. • Solid state camera products.

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

Semiconductor Fabrication Facilities

EG&G Reticon EG&G IC Sensors 345 Potrero Avenue 1701 McCarthy Boulevard Sunnyvale, California 94086 Milpitas, California 95035 Telephone: (408) 738-4266 Telephone: (408) 432-1800 Fax: (408) 738-3832 Fax: (408) 434-6681 Capacity (wafers/week): 625 Cleanroom size: 10,000 square feet Wafer size: 100mm Wafer size: 100mm Processes: CMOS, PMOS, CCD Process: Bipolar Products: Linear ICs and image sensing devices Products: MEMS devices and sensors Feature size: 2.0µm

1-104 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Elantec Semiconductor

ELANTEC SEMICONDUCTOR

Elantec Semiconductor, Inc. 1996 Tarob Court Milpitas, California 95035 Telephone: (408) 945-1323 Fax: (408) 945-9305 Web Site: www.elantec.com

IC Manufacturer

Regional Headquarters/Representative Locations

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

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

1992 1993 1994 1995 1996 Sales 15 18 23 27 37 Net Income 0.3 1134 R&D Expenditures 4456 Capital Expenditures 1122

Employees 110 120 125 155 162

Company Overview and Strategy

Elantec Semiconductor, Inc., founded in 1983, designs, manufacturers, and markets high-performance analog and mixed-signal integrated circuits for the video/multimedia, data processing, instrumentation, and communications markets. The company serves these markets with standard products and application-specific standard products (ASSPs), using primarily high-speed complementary bipolar and advanced CMOS technologies.

Elantec has transformed itself from a military hybrid IC supplier to a company focused on providing high- performance analog intensive functions for growing commercial markets. At one time, military hybrid sales accounted for 90 percent of the company's total sales, versus about nine percent in 1996.

In October 1995, the company completed its initial public offering.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-105 Elantec Semiconductor North American Company Profiles

Europe 13%

North America Asia 48% 39%

1996 Sales by Geographic Region

Management

Donald T. Valentine Chairman David O'Brien, Ph.D. President and Chief Executive Officer Richard E. Corbin Vice President, Bipolar Design Ralph S. Granchelli, Jr. Vice President, Marketing and Sales Terrence W. Plette Vice President, Finance, and Chief Financial Officer Barry L. Siegel Vice President, Engineering

Products and Processes

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

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

Elantec has developed and used a variety of technologies for its products. In particular, Elantec has focused on developing advanced complementary bipolar technology, using dielectric isolation and silicon-on-insulator (SOI) techniques, and advanced CMOS technology. The company utilizes external foundries for other technologies such as ultra high-speed bipolar and BiCMOS.

Semiconductor Fabrication Facilities

Elantec Semiconductor, Inc. 1996 Tarob Court Milpitas, California 95035 Cleanroom size: 4,000 square feet Capacity (wafers/week): 300 Wafer size: 100mm Processes: Complementary bipolar, complementary bipolar dielectric isolation (DI), JI bipolar, CMOS Products: Analog ICs Feature sizes: 5.0µm (bipolar); 1.2µm, 2.0µm (CMOS)

1-106 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles ESS Technology

ESS TECHNOLOGY

ESS Technology, Inc. 48401 Fremont Boulevard Fremont, California 94538 Telephone: (510) 492-1088 Fax: (510) 492-1098 Web Site: www.esstech.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Asia-Pacific: ESS Technology, Inc. • Taipei, Taiwan Telephone: (886) (2) 346-5300 • Fax: (886) (2) 346-1698

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

1992 1993 1994 1995 1996 Sales 24 15 33 106 227 Net Income 5 0.2 8 30 22 R&D Expenditures 434920

Employees 145 253

Company Overview and Strategy

ESS Technology, founded in 1984, designs, develops, and markets highly integrated mixed-signal semiconductor solutions for multimedia applications in the PC and consumer markets, primarily to multimedia desktop and notebook computer manufacturers. ESS is a leading supplier of mixed-signal PC audio solutions that integrate all essential audio components on a single chip. In 1996, PC audio products represented 92 percent of sales.

In an effort to broaden its product offerings, ESS made two company acquisitions in 1Q96. The company acquired VideoCore Technology, Inc., a developer of digital video technology, and OSEE Technology, Inc., a developer of fax/modem technology.

Current development is focused on new PC audio and multimedia products for the PC and consumer markets that provide video and fax/modem/voice capabilities.

In 1996, 92 percent of ESS Technology’s total sales were to international customers.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-107 ESS Technology North American Company Profiles

Management

Fred S.L. Chan Chairman, President, and Chief Executive Officer Robert L. Blair Executive Vice President, Operations Nicholas A. Aretakis Vice President, Sales John H. Barnet Vice President and Chief Financial Officer Hoover J. Chen Vice President, Engineering Johnston Chen Vice President, Asia-Pacific Sales Jan Fandrianto Vice President, Video Group Hadi Ibrahim Vice President, Engineering, Multimedia Technology Design (Austin, Texas) Robert S. Plachno Vice President, Research and Development Roger K. Shum Vice President, Manufacturing Chi-Shin Wang Vice President and Chief Technical Officer Gary Breeding Director, Marketing Communications

Products and Processes

ESS Technology has three principal product lines: the AudioDrive™ family, which targets the PC digital audio market; the VideoDrive™ family, which targets MPEG-1 and MPEG-2 decompression-based consumer products, such as DVD, video compact disk players, and set-top boxes; and the TeleDrive™ family, which focuses on integrated audio-fax/modem applications, including full duplex speakerphone, digital simultaneous voice and data, and videoconferencing.

ESS Technology’s audio chips have migrated from 12-bit to 16-bit and from mono to stereo sound. The company has also developed a core library of audio semiconductor designs, including microcontroller, bus interface, codec, mixer, filter and FM synthesizers, and device drivers, as well as application software.

The company’s chips are manufactured using mixed-signal 0.5µm and 0.6µm CMOS process technologies.

Semiconductor Fabrication Facilities

ESS has contracts with several independent foundries for the manufacture of its products. The majority of its devices are currently manufactured by Taiwan Semiconductor Manufacturing Company (TSMC), its primary supplier since 1989. The company also uses UMC, Sharp Corporation, and IC Works.

In December 1995, ESS announced a wafer supply program to commit approximately $62 million, and an option to commit another $31 million, over a three year period for expanding manufacturing capacity and developing advanced technology. The company expanded its relationship with TSMC by entering into a long term agreement for an increased amount of wafer capacity. ESS agreed to pay approximately $32 million to TSMC in exchange for wafer supply through 1999. ESS also obtained an option to further expand this agreement for additional capacity.

ESS also entered into a joint venture agreement with United Microelectronics Corporation (UMC) of Taiwan. ESS agreed to invest $30 million for a five percent equity ownership in UMC’s new 200mm wafer joint manufacturing facility, United Integrated Circuits Corporation (UICC). The wafer fab, located in Taiwan, was expected to begin production by mid-1997.

1-108 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Exar

EXAR

Exar Corporation 48720 Kato Road Fremont, California 94538 Telephone: (510) 668-7000 Fax: (510) 668-7017 Web Site: www.exar.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Exar Japan Corporation • Kawasaki-shi, Kanagawa, Japan Telephone: (81) (44) 922-9411 • Fax: (81) (44) 922-9368

Europe: Exar, Ltd. • Crowborough, East Sussex, United Kingdom Telephone: (44) (1892) 665718 • Fax: (44) (1892) 664354

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

1993 1994 1995 1996 1997 Sales 146 162 159 126 92 Net Income 14 16 (11) 14 (9) R&D Expenditures 11 11 14 16 14

Employees 500 525 468 447 325

Company Overview and Strategy

Founded in 1971, Exar Corporation is involved primarily in the design and marketing of analog and mixed-signal application-specific standard products, primarily for use in communications, consumer electronics, and computer products. Nearly 80 percent of the company’s revenues are generated from sales to these three markets. Other markets served by Exar include automotive, industrial, and medical. The company also produces digital ICs and general-purpose analog ICs that are used primarily to complement its other products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-109 Exar North American Company Profiles

ROW Sensor and Accelerometer 1% 1%

PC Asia 11% 10% Consumer Europe 11% Telecommunications 12% North America 32% 45% Industrial, Automation, Japan Data Converter 32% and Specialty 31% 14%

1996 Sales by Product Line 1996 Sales by Geographic Region

Exar’s business strategy has changed significantly in recent years. Before 1990, Exar was a wholly owned subsidiary of Rohm in Japan. As of January 1994, Rohm was no longer an affiliate of the company and today, holds less than one percent ownership in Exar. In April 1994, Exar transferred its epitaxial and bipolar wafer manufacturing operations to Rohm, thereby making Exar a fabless IC supplier.

In mid-1995, Exar withdrew from two long-standing businesses, mass storage ICs and Rohm-designed consumer electronics IC products. Its departure from the hard disk drive market was involuntary, a result of actions taken by SGS-Thomson, its foundry supplier of wafers for mass storage ICs.

To counter its discontinued businesses, Exar has made a series of acquisitions. In 2Q94, the company acquired Origin Technology, Inc. for its automatic speech recognition technology and products, and Micro Power Systems, Inc. for its data acquisition technology and access to the document imaging market. In 1995, Exar acquired Startech Semiconductor, Inc., a supplier of ASSPs for a variety of markets, and Silicon Microstructures, Inc., a company involved in silicon sensors for the medical, automotive, and consumer markets. These acquisitions complement the company’s strategy to apply its mixed-signal technology expertise to niche segments within the automotive, industrial, and medical markets.

Although Exar’s total revenues have been on the decline for the past few years, its core business has been growing. Its core business represented nearly all of total revenues in fiscal 1996 versus about 45 percent in fiscal 1993.

Management

Donald L. Ciffone President and Chief Executive Officer Ronald W. Guire Executive Vice President and Chief Financial Officer Aurelio E. Fernandez Senior Vice President, Worldwide Sales Roubik Gregorian Vice President, Chief Technical Officer, and General Manager, Communications and Computer Division Jim Knutti Vice President and General Manager, Silicon Microstructures Division John Sramek Vice President and General Manager, Video and Imaging Division Suhas "Sid" Bagwe Vice President, Strategic Planning and Long Range Development Thomas W. Jones Vice President, Reliability and Quality Assurance Stephen W. Michael Vice President, Operations Division

1-110 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Exar

Products and Processes

Exar’s IC products can be divided into five major market groups: communications, data communications, video and imaging, silicon microstructures, and other products.

• For the communications market, the company offers T1/E1 and T3/E3/STS1 line interface circuits, network interface circuits, speech recognition devices through its Origin Technology subsidiary, speakerphone and other telephony-oriented components, PLLs, and tone decoders.

• For the data communications market, Exar supplies UARTs/DUARTs/QUARTs, clock oscillators/clock multipliers, line drivers/receivers, frequency timing generators and Super I/O devices through its Startech Semiconductor subsidiary, and fax/data/voice modem chipsets.

• For video and imaging applications, Exar supplies A/D and D/A converters, CCD analog signal processors and conditioners, automatic track finding (ATF) circuits, switched capacitor filters, and BBE® sound enhancement circuits.

• Subsidiary Silicon Microstructures currently offers high-precision pressure sensors for applications such as engine control and tire pressure in automobiles, angioplasty and inter uterine pressure in medical instruments, and HVAC and pressure transducers in industrial equipment. Silicon Microstructures also supplies accelerometers for automotive applications.

• Other products include general purpose analog-to-digital and digital-to-analog converters for a wide variety of applications, including pace makers, handheld digital voltmeters, and high-speed digital communications.

Through several foundry partnerships, Exar has access to a multitude of process technologies, including bipolar, silicon gate and moly gate CMOS, and BiCMOS. The design rules of its bipolar processes range from 2.0µm to 6.0µm. The CMOS processes in use include 0.6µm 2P3M, 0.8µm 2P2M, 1.2µm 2P2M, and 1.6µm 2P2M (5V/18V). Exar plans to implement a 3.3V 0.5µm 1P3M CMOS process in 1997 and a 0.35µm 1P2M process in 1998. For BiCMOS, the company uses a 0.8µm process and plans to move to a 0.6µm process in 1997.

Semiconductor Fabrication Facilities

Exar obtains approximately half of its wafer requirements from Rohm. Its other foundry partners are American Microsystems, Nippon Precision Circuits, TSMC, and Chartered Semiconductor.

In 1995, Exar announced an agreement with IC Works calling for Exar to invest $15 million to help upgrade IC Works’ fab from 125mm to 150mm wafers and improve its process technology. In return, Exar was to receive a guaranteed portion of the fab output over a five-year period. In early 1997, it was announced that the agreement was terminated as a result of dramatically changed market conditions for wafer pricing and availability, the recent business redirection of Exar, and delays in the commencement of anticipated production by the foundry.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-111 Fairchild Semiconductor North American Company Profiles

FAIRCHILD SEMICONDUCTOR

Fairchild Semiconductor Corporation 333 Western Avenue South Portland, Maine 04106 Telephone: (207) 775-8100 Fax: (207) 761-6027 Web Site: www.national.com/fairchild

IC Manufacturer

Employees 6,400

Company Overview and Strategy

Fairchild Semiconductor was relaunched in March 1997 when the combined logic, memory, and discrete businesses of National Semiconductor were purchased by private investors. Fairchild Semiconductor originally emerged in the late 1950’s when the late Sherman Mills Fairchild sponsored a small group of scientists—among them Robert Noyce and Gordon Moore—in the development of a new process for the manufacturing of transistors. The team reached their goal in 1959 with the introduction of the Planar process. A facility was established in 1962 in South Portland, Maine, for the manufacture, test, and assembly of transistors.

Beginning in 1978, Fairchild became a major force in the development and production of logic circuits. Its first innovation was the FAST® (Fairchild Advanced Schottky Technology) family of advanced Schottky TTL logic circuits. Next came the invention of the FACT™ (Fairchild Advanced CMOS Technology) family of logic circuits in 1985. Still today, Fairchild is the leading supplier of FAST and FACT, as well as LCX, logic products.

In 1987, National Semiconductor purchased Fairchild from Schlumberger Ltd., a French conglomerate that had acquired the company in 1979. National dropped the Fairchild name, but resurrected it in mid-1996 when its logic, memory, and discrete businesses were combined to form the Fairchild Semiconductor Division. The division was sold in March 1997. National retains a 16 percent stake in Fairchild.

Together with its advanced logic IC products, Fairchild’s high-performance non-volatile memory and discrete semiconductor technologies form the foundation of the new company’s product portfolio. The fiscal 1996 (ended May 31) revenues from these products were approximately $600 million.

Fairchild is investing in research and development to enhance its portfolio in the fast-growth areas of CMOS, low- voltage logic, power and small-signal discretes, and non-volatile standard and application-specific memories. Applications for Fairchild’s products include automotive entertainment systems, communications products, desktop and portable computers, security, consumer products, and satellites and aerospace systems.

1-112 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Fairchild Semiconductor

Management

Kirk Pond Chairman, President, and Chief Executive Officer Colin Cohen Vice President, Finance, and Chief Financial Officer Stephen Hamilton Vice President and General Manager, Memory Products Group Darrell Mayeux Vice President, Sales and Marketing

Products and Processes

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

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

Logic Products Fairchild offers 17 families of standard logic devices utilizing CMOS, bipolar, and BiCMOS process technologies. The company claims to be the world’s third-largest supplier of standard logic ICs.

Its logic products include FAST® high-speed, low-power bipolar devices; FACT™ high-performance advanced CMOS devices; FACT QS™ low-noise, high-performance advanced CMOS devices; LVQ low-voltage CMOS devices, LCX/LVX high-performance, low-voltage CMOS devices with over-voltage protection; and VHC HC- replacement, low-noise, high-speed CMOS devices.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-113 Fairchild Semiconductor North American Company Profiles

Memory Products Fairchild’s memory products include several varieties of non-volatile memory ICs. It is among the world’s leading suppliers of serial EEPROMs and EPROMs. Its EEPROM product group includes several families of standard devices as well as application-specific devices such as a Plug-and-Play controller for ISA cards, a serial presence detect (SPD) device for the memory module market, and the HiSEC™ family of products for remote keyless entry applications. The company’s EPROM products include 5V devices with densities ranging from 16K to 4M and low- voltage 1M parts.

Through an alliance formed originally by National and Toshiba in 1992, Fairchild also offers flash memory devices compatible with Toshiba’s NAND and NOR architectures.

Discrete Products Fairchild’s principal discrete products are DMOS power MOSFETs. Its other discrete products are small-signal components such as small-signal transistors, JFETs, and diodes.

Semiconductor Fabrication Facilities

Fairchild Semiconductor Corp. Fairchild Semiconductor Corp. 333 Western Avenue 3333 West 9000 South South Portland, Maine 04106 West Jordan, Utah 84088 Telephone: (207) 775-8100 Telephone: (801) 562-7000 Fax: (207) 761-6027 Fax: (801) 562-7500 Cleanroom size: 51,000 square feet Cleanroom size: 86,000 square feet Capacity (wafers/week): 12,350 Capacity (wafers/week): 8,000 Wafer sizes: 100mm, 125mm, 150mm Wafer size: 150mm Processes: CMOS, bipolar, BiCMOS Processes: CMOS, DMOS Products: Logic ICs, discretes Products: EPROMs, EEPROMs, logic ICs, discretes Feature sizes: 0.8µm-2.5µm Feature size: 0.8µm

Some of Fairchild’s IC products continue to be produced at fabs owned by National Semiconductor and vice versa. Fairchild’s semiconductor assembly and test plants are located in Penang, Malaysia, and Cebu in the Philippines.

Key Agreements

• National and Fairchild remain closely linked through a long-term agreement to make the transition as smooth as possible. The two companies also share and swap fab capacity.

• Motorola, Toshiba, and Fairchild Semiconductor announced in early 1997 they would jointly develop next- generation high-speed CMOS logic ICs. The three companies will work to develop 2.5V and 3.3V devices with a propagation delay time of 2ns.

• Fairchild has a long-term partnership with Toshiba for the development, licensing, design, and manufacture of NAND and NOR flash memories. The agreement was signed by Toshiba and National Semiconductor in 1992.

1-114 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Genesis Microchip

GENESIS MICROCHIP

Genesis Microchip Inc. 200 Town Centre Boulevard Suite 400 Markham, Ontario Canada L3R 8G3 Telephone: (905) 470-2742 Fax: (905) 470-2447 Web Site: www.genesis-video.com

Fabless IC Supplier

Employees 70

Regional Headquarters/Representative Locations

North America: Genesis Microchip Corporation • Mountain View, California Telephone: (415) 428-4277 • Fax: (415) 428-4288

Company Overview and Strategy

Founded in 1987, Genesis Microchip is a technology leader in digital video/image manipulation. The company designs, develops, and markets leading-edge ICs targeted at both existing and emerging applications demanding high-quality video/image processing. Genesis sets the standard in video/image resizing. Markets are divided into high-end chips (gm865 class), middle tier (gm833 class), and commodity, low-cost, high-performance cores.

Management

Paul M. Russo President and Chief Executive Officer Peter Dakin Vice President, Manufacturing Operations Eric Erdman Vice President, Finance and Administration Hamid Farzaneh Vice President, Worldwide Sales Lance Greggain Vice President, Product Development Operations Stephen Solari Vice President, Marketing and Business Development Scott Baker Director, Product Development Operations Perry Chappell Director, Sales Jordan Du Val Director, Marketing Shyam Nagrani Director, Sales Jay Giblon Manager, Information Systems David Green Manager, Sales Graham Loveridge Manager, Customer and Product Support Peter Mandl Manager, Video DSP Technology

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-115 Genesis Microchip North American Company Profiles

Products and Processes

Genesis' products include the Genesis Scaling™ series of video/image resizing ICs (gm865x1, gm833x2, gm833x3, gm833x3F), the gm2242B half-band filter, and the gmVLD family of video line doublers plus supporting evaluation boards and software. The patented algorithms and architectures provide improvement in computational efficiency over traditional finite impulse response (FIR) filter structures. All of Genesis' design efforts currently employ 0.8µm (and below) CMOS technology. Several products are described below.

• gm865x1—This is the first of the Genesis Scaling chip series. The gm865x1 IC is a single-channel device that provides high-quality video/image processing technology for medical imaging, broadcast equipment, and projection systems.

• gm833x2—This is the second of the Genesis Scaling chip series and first in the mid-range family of GenScale chips. The gm833x2 is a dual-channel device for use in workstation, projection systems, and multimedia applications.

• gm833x3—This is a triple-channel version in the 833 class designed for use in projection systems, videographic workstations, and scan conversion equipment.

• gm833x3F (fast) “Bullet”—This is a 68MHz version of an RGB scaler, featuring low power and an advanced 0.35µm, 3.3V CMOS process.

• gm2242B Half-Band Filter—This is a decimating/interpolating digital filter for use in applications requiring pre- or post-filtering of digital video signals. The gm2242B supports NTSC, PAL, SECAM, and square pixel video standards.

• gmVLD8/gmVLD10 Video Line Doublers—This is a single-chip de-interlacing device for use in equipment such as large screen televisions, video walls, projection systems, video-in-a-window workstations, and home theater screens.

1-116 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Gennum

GENNUM

Gennum Corporation P.O. Box 489, Station A Burlington, Ontario Canada L7R 3Y3 Telephone: (905) 632-2996 Fax: (905) 632-2055 Web Site: www.gennum.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Gennum Japan K.K. • Suginami-ku, Tokyo, Japan Telephone: (81) (3) 3334-7700 • Fax: (81) (3) 3247-8839

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

1992 1993 1994 1995 1996 Sales 26 27 33 42 53 Net Income 445710 R&D Expenditures 778910 Capital Expenditures 32345

Employees 233 240 247 255 300

Company Overview and Strategy

Gennum Corporation, formed in 1973, is a Canadian high technology company that designs, manufactures, and markets electronic components, primarily silicon integrated circuits and thick-film hybrid circuits, for special applications in the information world.

The company's products include low-voltage audio electronic amplifiers and analog signal processing circuits supplied to the world hearing instrument industry; video signal distribution and processing components sold to the professional video and broadcast television markets; and user specific ICs for a wide variety of specific applications where information is being conditioned, transmitted, or interpreted.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-117 Gennum North American Company Profiles

User-Specific ICs 3%

Canada 9% Pacific Rim United States Video/Broadcast 20% Hearing Instrument 42% Components Components 42% Europe 55% 29%

1996 Sales By Geographic Region 1996 Sales By Product Type

Management

H. Patrick Thode Chairman H. Douglas Barber, Ph.D. President and Chief Executive Officer Michael R. Fielding Vice President, Marketing and Sales David L. Lynch Vice President, Research and Development Ian L. McWalter, Ph.D. Vice President, Manufacturing Operations C. Timothy Zahavich Vice President, Finance and Administration, and Chief Financial Officer

Products and Processes

Gennum produces analog arrays, linear ICs, and thick-film hybrid circuits using bipolar process technology. The company has developed a DMOS process, though it has not put it into production, and CMOS designs are contracted out for manufacture by external foundries.

Semiconductor Fabrication Facilities

Gennum Corporation 3435 Landmark Road Burlington, Ontario L7M 1T4 Cleanroom size: 18,000 square feet Capacity (wafers/week): 350 Wafer size: 100mm Process: Bipolar Products: Linear ICs, ASICs, thick-film hybrid circuits Feature sizes: 1.5µm-4µm

1-118 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Harris Semiconductor

HARRIS SEMICONDUCTOR

Harris Semiconductor 2401 Palm Bay Road Northeast Palm Bay, Florida 32905 Telephone: (407) 724-7000 Fax: (407) 729-5691 Web Site: www.semi.harris.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Harris Semiconductor • Brussels, Belgium Telephone: (32) (2) 724-2111 • Fax: (32) (2) 724-2205

Asia-Pacific: Harris Semiconductor China Ltd. • Shanghai, China Telephone: (86) (21) 6247-7923 • Fax: (86) (21) 6247-7926

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

1992 1993 1994 1995 1996 Corporate Sales 3,004 3,099 3,336 3,444 3,621 Net Income 75 111 112 155 178

Semiconductor Sales 585 591 635 659 708 Net Income (20) 17 31 42 52 Capital Expenditures 22 27 44 80 140

Employees 8,000 8,100 8,100

Company Overview and Strategy

Harris Semiconductor is one of the four major business sectors of Harris Corporation, a worldwide manufacturer of electronic systems, semiconductors, communications products, and office systems with sales of over $3.6 billion and more than 26,000 employees.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-119 Harris Semiconductor North American Company Profiles

Semiconductor 20% Lanier Worldwide 31% Communications 23% Electronic Systems 26%

1996 Corporate Sales by Business Sector

Harris Semiconductor originated as the Microelectronics Division of Radiation, Inc. in 1962. It became Harris Semiconductor in 1967 through the merger of Harris and Radiation. Then in 1988, Harris Semiconductor nearly tripled in size through the acquisition of the General Electric Solid State semiconductor business.

Harris Semiconductor manufactures and markets advanced analog, digital, power, and mixed-signal integrated circuits and discrete semiconductors for power, signal-processing, data-acquisition, and logic applications. Plans for 1997 include a focus on its wireless communications and multimedia technologies. Products recently brought to market in these areas include its Prism line of RF integrated devices for communications and a video encoder/decoder chipset for multimedia applications.

Plans for 1997 also include decreasing emphasis on its military product business and maximizing its discrete product sales.

Data Acquisition 8% Intelligent Power 12% Power Discretes 30% 29% Signal Processing 14% Digital Integrated Circuits Mixed-Signal 20% 71% 16%

1996 Semiconductor Sales 1996 Semiconductor Sales by Application by Device Type

Below are applications served by Harris’ semiconductor products.

Automotive—multiplexing systems, antilock braking systems, engine controls, emission controls, engine knock sensing, air bag systems, and entertainment systems. This is Harris' largest commercial end market.

Communications—wireless local area network (LAN) systems, cellular base stations, satellite communications systems, set-top boxes, and PBX, central office, wireless local loop, and fiber-in-the-loop equipment.

1-120 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Harris Semiconductor

Video/Multimedia—video and image processing systems, video teleconferencing, and multimedia systems. In early 1997, the company released the first of many planned multimedia devices. The device was an HTSC/PAL video encoder/decoder chipset. The device is designed for use in VCR-to-PC editing systems, PC video capture, teleconferencing systems, DVD players, and digital VCRs. The device is manufactured by foundry partner, TSMC, using 0.6µm technology.

Power and Load Control—motor controllers, disk drives, power supplies, distributed power systems, and power switching.

Power Protection—surge suppression equipment, uninterruptible power supplies, house electrical panel protection, and on-board electronic circuit protection.

Other Applications—test equipment, industrial controls, consumer electronics, medical imaging, computer peripherals, hand-held portable equipment, and military and aerospace equipment.

Management

Harris Corporation Phillip W. Farmer Chairman, President and Chief Executive Officer Bryan R. Roub Senior Vice President and Chief Financial Officer

Harris Semiconductor Sector John C. Garrett President F. Scott Moody Vice President, Military and Aerospace Products Division W. Russell Morcom Vice President and GM, Semiconductor Products Division Dyer Matlock Vice President, Engineering Bill McLean Vice President (North America), Sales Carleton Smith Vice President (Asia), Sales Ron Van Dell Vice President and GM, Worldwide Sales and Marketing Edward Verbeek Vice President (Europe), Sales

Products and Processes

Harris offers a broad range of standard, semicustom, and custom ICs and discrete semiconductors, including intelligent power devices, data acquisition and signal processing circuits, digital microprocessor, peripheral, and logic ICs, as well as radiation-hardened circuits for spacecraft and satellite applications.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-121 Harris Semiconductor North American Company Profiles

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

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

Process technologies used by Harris Semiconductor include: CMOS, BiCMOS, power BiMOS, high-frequency bipolar/power MOS, high-voltage bipolar/power MOS, complementary bipolar dielectric isolation (bonded wafer), CMOS/SOI (silicon-on-insulator), CMOS/SOS (silicon-on-sapphire), and radiation hardening.

Semiconductor Fabrication Facilities

Harris supplements its internal semiconductor production capabilities with foundry agreements with external semiconductor manufacturers. For example, the company uses foundries for the fabrication of triple-layer-metal CMOS devices like signal processing ICs.

Harris Semiconductor (Ohio), Inc. Harris Semiconductor (Florida), Inc. 1700 Fostoria Road P.O. Box 883 Findlay, Ohio 45840 Palm Bay, Florida 32905 Telephone: (419) 423-0321 Telephone: (407) 724-7000 Cleanroom size: 57,500 square feet Cleanroom size: 53,000 square feet Capacity (wafers/week): 15,000 Capacity (wafers/week): 7,000 Wafer sizes: 100mm, 125mm Wafer sizes: 3in, 100mm, 125mm Processes: CMOS, bipolar, BiCMOS Processes: CMOS, PMOS, bipolar Products: Custom digital, linear, logic, and Products: MPUs, SRAMs, linear and digital ICs, mixed-signal ICs discretes Feature sizes: 1.2µm, 1.5µm, 2.0µm Feature sizes: 0.8µm, 1.0µm, 2.0µm, 4.0µm

1-122 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Harris Semiconductor

Harris Semiconductor (Pennsylvania), Inc. Harris Semiconductor (Pennsylvania), Inc. Crestwood Industrial Park Mountaintop, Pennsylvania 125 Crestwood Road Cleanroom size: 25,000 Mountaintop, Pennsylvania 18707-2189 Capacity (wafers/week): 5,000 Telephone: (717) 474-6761 Wafer size: 200mm Cleanroom size: 74,000 square feet Process: MOS Capacity (wafers/week): 4,000 Products: Discretes, smart power ICs Wafer sizes: 100mm, 125mm, 150mm Feature size: 1.0µm Processes: MOS, bipolar, BiCMOS Products: Discretes, hybrids, ASICs Feature sizes: 1.0µm, 2.0µm, 5.0µm

In early 1996, Harris began building a new IC assembly and test facility in Suzhou, China. The company expects construction to be completed by summer of 1998. The new facility will assemble and test digital logic, microperipheral, and analog and mixed-signal devices. Harris has existing semiconductor assembly factories in Kuala Lumpur, Malaysia, and Dundalk, Ireland.

Key Agreements

• In 4Q95, Harris announced a license agreement with DSP Group Inc. Harris licensed DSP Group’s Oak and Pine DSP cores for use in devices for audio-band signal processing applications.

• Harris has a product agreement with Sony. Under the agreement, Harris expanded its line of 10-bit, 12-bit, and 14-bit data converters to include Sony’s 6-bit and 8-bit converters.

• Harris has a second-source agreement with Xilinx for radiation-hardened FPGAs.

• Harris formed an agreement with Noise Cancellation Technologies to develop and manufacture proprietary chips for application of NCT's active noise reduction technology.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-123 Honeywell North American Company Profiles

HONEYWELL SSEC

Honeywell, Incorporated Solid State Electronics Center (SSEC) 12001 Highway 55 Plymouth, Minnesota 55441 Telephone: (612) 954-2301 Fax: (612) 954-2504 Web Site: www.ssec.honeywell.com

IC Manufacturer

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

1992 1993 1994 1995 1996 Corporate Sales 6,223 5,963 6,057 6,731 7,312 Net Income 247 322 279 334 403

Semiconductor IC Sales 53 45 45 58 60

Employees 500 523 550

Company Overview and Strategy

Founded in 1885, Honeywell is an international company that provides control components, products, systems, and services for the home and building, industrial, space and aviation, and defense and marine markets.

Other* 2%

Space and Aviation Control 22% Home and Building Control 46% Industrial Control 30%

*Includes sales from the SSEC 1996 Corporate Sales by Business Segment

1-124 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Honeywell

Honeywell established its Solid State Electronics Center (SSEC) in 1965 to support the high technology demands in the markets served by the parent company. This growing reliance on microelectronics led SSEC to become a niche market manufacturer of specialized ICs and solid-state sensors.

Over the years, Honeywell SSEC has taken on numerous military contracts. Two of the more well known programs are the Very High Speed Integrated Circuit (VHSIC) program and the Enhanced Modular Signal Processor (EMSP) program. These programs helped position SSEC for its future in control, memory, and spaceborne applications.

The SSEC's mission is to develop and produce niche semiconductor technologies and products which are focused in the market areas of sensors, radiation-hardened space components, and specialized ICs for its parent's needs and select external markets. SSEC is the world’s leading supplier of SOI CMOS ICs for space and industrial applications. Approximately 50 percent of the SSEC's IC production is sold to external customers.

Management

Michael R. Bonsignor Chief Executive Officer D. Larry Moore President and Chief Operating Officer Larry C. Welliver Vice President, SSEC Lou Del Monte Director, Business Management, SSEC Bryan Johnson Director, Human Resources and Facilities, SSEC Pravin Parekh Director, Operations, SSEC Jay Schrankher Director, Quality and Information Systems, SSEC Jim Becker Manager, Material Management, SSEC Peggy Kvam Manager, ASIC Products, SSEC

Products and Processes

Honeywell SSEC's key business areas are outlined below.

Space components (for commercial, military space, and tactical and strategic missile applications). • SRAMs • ROMs (SOI and bulk) • Gate arrays (SOI and bulk) with ultra low power options • Bus interface products (1773 and 1553)

Sensors (for industrial control, automotive, medical, and aircraft applications). • Precision pressure • High-accuracy magnetic

High-temperature products (for oil service industry, industrial control, and gas turbine control applications). All SOI devices. • Op amps • Switches • A/D converters and controllers

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-125 Honeywell North American Company Profiles

About 90 percent of Honeywell's ICs are manufactured using CMOS or radiation-intensive CMOS (RICMOS™) processes and 10 percent using an advanced bipolar process.

Semiconductor Fabrication Facilities

Honeywell, Incorporated Solid State Electronics Center 12001 Highway 55 Plymouth, Minnesota 55441 Cleanroom size: 16,750 square feet Capacity (wafers/week): 1,250 Wafer size: 100mm Processes: CMOS, bipolar Products: Rad-hard memories, ASICs, analog ICs, digital ICs, sensors, foundry services Feature sizes: 0.5µm, 0.7µm, 0.8µm, 1.2µm, 0.3µm, 0.4µm, 4.5µm

Key Agreements

• Honeywell SSEC licensed Micron Technology's Softool known-good die technology. It plans to use the test method to provide known-good die to the military and commercial markets, primarily for space applications.

1-126 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles HP

HEWLETT-PACKARD (HP)

Hewlett-Packard Company 3000 Hanover Street Palo Alto, California 94304-1112 Telephone: (415) 857-1501 Fax: (415) 857-5518 Web Site: www.hp.com

Captive IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Hewlett-Packard Company • Geneva, Switzerland Telephone: (41) (21) 780-8111

Asia-Pacific: Hewlett-Packard Company • Causeway Bay, Hong Kong Telephone: (852) 2599-7777

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

1992 1993 1994 1995 1996 Corporate Sales 16,410 20,317 24,991 31,519 38,420 Net Income 549 1,177 1,599 2,433 2,586

Semiconductor* Sales 745 880 1,085 1,250 1,420 IC Sales 400 475 585 655 740 Internal Sales 350 410 540 615 705 External Sales 50 65 45 40 35 Discrete Sales** 345 405 500 595 680

*Calendar year **Includes internal and external sales

Company Overview and Strategy

Hewlett-Packard (HP) is one of the world's leading designers and manufacturers of electronic, medical, analytical, and computing instruments and systems. HP divides its business into five product categories: computer products, electronic test and measurement instruments and systems, medical electronic equipment, analytical instruments, and electronic components.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-127 HP North American Company Profiles

Analytical Instruments Medical 2% Electronic Electronics Components

Test/ 4% 2% Measurement Instruments Asia 10% 21% U.S. 44% Computers Europe 82% 35%

1996 Corporate Sales by 1996 Corporate Sales by Product Group Geographic Region

Hewlett-Packard's Components Group is a leading supplier of microwave semiconductors and optoelectronic devices for the fiber-optic, wireless and visual communications, computer equipment, industrial, and automotive markets.

In 1992, HP completed the acquisition of Avantek, Inc. Through Avantek, HP gained a wider customer base in the components market. Those Avantek products targeted for commercial markets became part of the Communications Components Division. Those products whose main applications are defense-related make up the Avantek subsidiary of the Components Group.

Also under the wings of Hewlett-Packard is HP Labs, which is one of the world's leading electronic research centers.

Management

Lewis E. Platt Chairman, President, and Chief Executive Officer Richard W. Anderson Vice President and GM, Microwave and Communications Group William F. Craven Vice President and GM, Components Group Alan Marty Vice President and GM, Integrated Circuits Business Division Frederic N. Schwettmann Vice President and GM, Circuit Technology Group Rich Sevcik Vice President and GM, Systems Technology Group Neal Carney Manager, Marketing, IC Business Division Lance Mills Manager, Research and Development, IC Business Division

Products and Processes

HP's semiconductor products range from analog and high-speed digital ICs to RF, microwave, and optoelectronic semiconductors. The company also offers motion control devices, solid-state relays, and millimeter-wave components. In addition, HP manufactures RISC MPUs that are designed using what it calls Precision Architecture-RISC (PA-RISC).

1-128 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles HP

In early 1997, HP introduced the latest product from its PA-8000 RISC microprocessor family of 64-bit MPUs for high-end systems—the 12-million transistor PA-8500. Claiming to be HP’s most powerful microprocessor, the PA- 8500 incorporates 1.5MB of memory on chip and was designed on a 0.25µm process. Target applications for the device include Internet access, database access and management, computer-aided design and manufacturing (CAD/CAM), and communications.

HP uses sophisticated semiconductor technologies based on silicon, GaAs, and InP materials.

Semiconductor Fabrication Facilities

In April 1997, Hewlett-Packard announced the development of a new joint venture foundry company with foundry company, Chartered Semiconductor, and the Economic Development Board (EDB) of Singapore. This is the second fab facility investment HP has made in Singapore.

The new venture, called Chartered Silicon Partners, will be located adjacent to Chartered’s exiting facilities in the Woodlands Industrial Park in Singapore. Construction of a 200mm wafer manufacturing facility is expected to begin in September 1997 with production beginning in mid-1999. HP will receive a specified amount of wafers (0.35µm and 0.25µm ASICs) from the venture in exchange for its investment, while the remaining capacity will be offered as part of Chartered’s usual foundry services. Chartered will hold the majority interest of the venture while HP and the EDB will hold minority positions.

Hewlett-Packard Hewlett-Packard 350 West Trimble Road 39201 Cherry Street San Jose, California 95131-1008 Newark, California 95131 Telephone: (408) 435-7400 Telephone: (408) 435-6765 Capacity (wafers/week): 1,100 Cleanroom size: 13,000 square feet Wafer sizes: 3in, 100mm Capacity (wafers/week): 1,250 Processes: Bipolar, GaAs Wafer size: 100mm Products: ASICs, optoelectronics, discretes Process: Bipolar Feature sizes: 0.5µm-5.0µm Products: Analog ICs, RFICs

Hewlett-Packard Hewlett-Packard 3404 East Harmony Road 1050 Northeast Circle Boulevard Fort Collins, Colorado 80525 Corvalis, Oregon 97330 Telephone: (303) 229-3800 Capacity (wafers/week): 5,600 Capacity (wafers/week): 1,250 Wafer sizes: 100mm, 150mm Wafer sizes: 100mm, 150mm Process: CMOS Processes: CMOS, bipolar Products: ASICs, MPUs, MPRs, DSPs Products: RFICs, microwave ICs, MPUs, ASICs Feature sizes: 0.5µm-1.0µm Feature sizes: 0.35µm-1.0µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-129 HP North American Company Profiles

Hewlett-Packard Avantek, Inc. Santa Rosa, California Santa Clara, California Capacity (wafers/week): 1,000 Cleanroom size: 17,000 square feet Wafer size: 2in Capacity (wafers/week): 225 Process: Bipolar Wafer size: 3in Products: Discretes Process: GaAs Products: ICs and discretes

TECH Semiconductor Singapore Pte. Ltd. P.O. Box 2093, SE 9040 990 Bendemeer Road Singapore 1233 Telephone: (65) 298-1122 Cleanroom size: 40,000 square feet Capacity (wafers/week): 6,250 Wafer size: 200mm Process: CMOS Products: DRAMs Feature sizes: 0.35µm, 0.5µm (Joint venture with Texas Instruments, the Economic Development Board of Singapore, and Canon.)

Key Agreements

• AT&T Microelectronics (now Lucent Technologies) and Hewlett-Packard signed an agreement in early 1995 to develop and dual-source fiber-optic transceivers for SONET/SDH and ATM applications.

• To promote and coordinate the use of its PA-RISC architecture, Hewlett-Packard formed PRO, the Precision RISC Organization. Some of the founding members are Convex Computer, Hitachi, Oki, Hughes Aircraft, and Mitsubishi. Other members include Sequoia Systems and Winbond Electronics.

• Although not a PRO member, Samsung has the right to manufacture PA-RISC ICs to sell on the merchant market and use in its own workstations.

• HP formed an alliance with Analog Devices for the joint development of advanced mixed-signal processes based on HP's submicron CMOS and BiCMOS technologies.

• Hewlett-Packard and Intel announced a wide ranging joint research and development alliance in 1994 under which the partners are seeking to design a superior next-generation 64-bit microprocessor by 1999, a year later than originally planned. The processor will be binary-compatible with both Intel x86 code and HP PA-RISC code.

1-130 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Hughes Electronics

HUGHES ELECTRONICS

Hughes Electronics Corporation

Delco Electronics Corporation Hughes Aircraft Company One Corporate Center Microelectronics Division Kokomo, Indiana 46904-9005 500 Superior Avenue Telephone: (317) 451-5700 Newport Beach, California 92663 Fax: (317) 451-5426 Telephone: (714) 759-2411 Web Site: www.delco.com Fax: (714) 759-2986 Web Site: www.hughes.com

Captive IC Manufacturer

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

1992 1993 1994 1995 1996 Corporate Sales 12,297 13,518 14,099 14,772 15,918 Net Income (922) 922 1,049 1,108 1,151

Semiconductor Sales 341 350 360 340 330 Delco Electronics 205 220 235 240 250 Internal Sales 195 205 215 215 215 External Sales 10 15 20 25 35 Hughes Aircraft 136 130 125 100 80 Internal Sales 81 72 64 45 30 External Sales 55 58 61 55 50

Company Overview and Strategy

Hughes Electronics Corporation (HE), known as GM Hughes Electronics Corporation prior to March 1995, is a subsidiary of General Motors Corporation. HE's principal operating organizations are Delco Electronics Corporation and Hughes Aircraft Company. Its other business units are Hughes Telecommunications and Space Company, DirecTV, Inc., and Hughes Network Systems, Inc.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-131 Hughes Electronics North American Company Profiles

Other 1%

Telecommunications and Space 26%

Aerospace and Defense Systems 40% Automotive Electronics 33%

1996 Corporate Sales by Business Segment

Delco Electronics (DE) is a world leader in the development, manufacture, and marketing of vehicle and driver systems for the global automotive market, and Hughes Aircraft, acquired by GM in 1985, is a world leader in aerospace, defense electronics, and information systems.

Delco Electronics, alone, is the third largest captive IC manufacturer. Its fabrication facilities produce about 40 percent of its semiconductor needs. The company produces advanced ICs that perform a variety of functions, such as deciphering radio frequency signals for audio systems, controlling the release of an airbag, suspension system control, and fuel, electrical, and ignition management. Some of its new technologies include night vision systems, collision avoidance systems, navigation systems, keyless start systems, tire pressure warning systems, and reconfigurable LCD head-up displays.

Hughes Aircraft continues to restructure its business to adapt to severe cuts in U.S. defense spending. The company intends to maintain its leadership in key defense markets, while at the same time, explore new marketplaces and exploit new technologies. Some commercial ventures the company is involved in include: digital cellular communications systems, advanced acoustic technologies, light projection systems, digital signal compression, character recognition, and airport integration systems.

In January 1997, GM and Hughes Electronics announced a series of strategic transactions designed to strengthen the position of GM in two key areas—telecommunications and space, and automotive electronics. GM has a definitive agreement with Raytheon to spin off Hughes Aircraft from Hughes Electronics and then merge the operation into Raytheon. Separately, Delco Electronics will be transferred from Hughes Electronics to GM’s Delphi Automotive Systems. Both of these transactions are expected to take place in 3Q97.

Management

C. Michael Armstrong Chairman and Chief Executive Officer, Hughes Electronics Corporation Michael J. Burns Executive Vice President, Hughes Electronics Corporation; General Manager, Delco Electronics Corporation John C. Weaver Senior Vice President, Hughes Electronics Corporation; President, Hughes Aircraft Company

1-132 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Hughes Electronics

Products and Processes

IC Delco, DE's automotive semiconductor unit, designs and manufactures custom analog and digital ICs for specific automotive applications such as anti-lock brake systems, engine controllers, suspension control systems, communications, and instrumentation. IC Delco also produces silicon-based electronic sensors.

Among the semiconductor devices Hughes Aircraft designs and manufactures are ASICs, memory devices, microcomponents, rad-hard circuits, monolithic microwave integrated circuits (MMICs), and millimeter-wave devices using a variety of process technologies including CMOS, BiCMOS, GaAs, and InP.

Semiconductor Fabrication Facilities

Delco Electronics Corporation Hughes Aircraft Company IC Delco Business Unit Microelectronics Division 700 East Firmin Street 500 Superior Avenue Kokomo, Indiana 46902-2340 Newport Beach, California 92663-3627 Cleanroom size: 125,000 square feet (3 fabs) Telephone: (714) 759-2411 Capacity (wafers/week): 12,000 Capacity (wafers/week): 1,600 Wafer sizes: 100mm, 125mm Wafer sizes: 100mm Processes: NMOS, CMOS, BiCMOS, bipolar Processes: CMOS, BiCMOS, SOS, CryoCMOS Products: MPUs, MCUs, ASICs, logic and Products: ASICs, memories, MCUs, LCD drivers, linear ICs, discretes linear ICs, rad-hard ICs, foundry services Feature sizes: 1.0µm-2.0µm Feature sizes: 1.25µm-5.0µm

Hughes Aircraft Company Hughes Microelectronics Europa, Ltd. Hughes Communications Products Fullerton Road 3100 Lomita Boulevard Queensway Industrial Estate Torrance, California 90509 Glenrothes, Fife, Scotland KY7-5PY Telephone: (310) 517-6880 Telephone: (44) (1592) 754-311 Fax: (310) 517-6883 Fax: (44) (1592) 610-186 Capacity (wafers/week): 250 Capacity (wafers/week): 1,600 Wafer size: 3in Wafer size: 100mm Processes: GaAs, InP Processes: CMOS, MOS Products: MMICs, MM-wave devices, discretes Products: ASICs, memories, custom ICs Feature sizes: 0.25µm-0.5µm Feature size: 3.0µm

Key Agreements

• Delco Electronics and Texas Instruments jointly developed a new methodology, called Prism, that is claimed to cut the high cost and long lead time of taking complex mixed-technology designs from concept to silicon. Prism is being used by DE to produce configurable 16-bit microcontrollers for GM cars.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-133 IBM Microelectronics North American Company Profiles

IBM MICROELECTRONICS

IBM Microelectronics 1580 Route 52, Building 504 Hopewell Junction, New York 12533 Telephone: (914) 894-2121 Fax: (914) 894-6891 Web Site: www.chips.ibm.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: IBM Microelectronics Europe • Geneva, Switzerland Telephone: (41) (22) 918-4600 • Fax: (41) (22) 918-4650

Asia-Pacific: IBM Singapore Pte., Ltd., Microelectronics • Singapore Telephone: (65) 320-1000 • Fax: (65) 227-8721

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

1992 1993 1994 1995 1996 Corporate (IBM Corp.) Sales 64,523 62,716 64,052 71,940 75,947 Net Income (4,965) (8,101) 3,021 4,178 5,429

Semiconductor Sales 3,775 3,885 4,575 5,705 5,100 Internal Sales 3,725 3,510 3,605 4,020 3,550 External Sales 50 375 970 1,685 1,550 Capital Expenditures 650 1,000 1,500

Employees (IBM Microelectronics) 22,000

Company Overview and Strategy

International Business Machines (IBM) was founded by Thomas J. Watson in 1924. Since then, IBM has grown into one of the world's largest corporations that sells in over 140 countries. IBM develops, manufactures, and sells advanced information processing products, including computers and microelectronics technology, software, networking systems, and information technology-related services.

1-134 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles IBM Microelectronics

Finance and Other 5% Latin America OEM Hardware* 9% 4% Maintenance 9%

Information Asia-Pacific Technology North America Software 19% Products 39% 17% 44% Europe/ Services Middle East/Africa 21% 33%

*Includes external sales of semiconductors. 1996 Corporate Sales by 1996 Corporate Sales by Product/Service Group Geographic Region

The Microelectronics Division of IBM develops, manufactures, and markets a wide range of integrated microelectronic products and technologies. Products and services range from semiconductor design and fabrication to fully assembled and tested functional assemblies.

Prior to 1992, IBM Microelectronics supplied its products and services exclusively to one customer—IBM Corporation. Spurred by both a comprehensive restructuring of IBM into independent business units and the high cost of developing advanced semiconductor technologies, IBM Microelectronics launched a worldwide microelectronics merchant market effort in 1992 by offering to sell virtually every product and service in its technology portfolio. Its products and services are targeted at manufacturers of computers, communications, and consumer electronics systems.

IBM Microelectronics’ strategic products are its PowerPC RISC microprocessors and embedded controllers, x86 microprocessors, memory ICs, ASICs, and leading-edge packaging services. Other important microelectronic products include analog and mixed-signal ICs, digital signal processors, and graphics chips. By combining several of its chips to form system solutions, IBM is seeking to strengthen its presence in the data processing, consumer electronics, and communications markets.

To bolster its technological leadership, IBM has entered into several major alliances. Examples of these alliances are Toshiba, Siemens, and Motorola in process technology, the PowerPC microprocessor alliance with Motorola and Apple Computer, and work in the area of X-ray lithography with Lucent Technologies, Motorola, and Lockheed-Martin Federal Systems.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-135 IBM Microelectronics North American Company Profiles

Management

IBM Corporation Louis V. Gerstner, Jr. Chairman and Chief Executive Officer J. Thomas Bouchard Senior Vice President, Human Resources Nicholas M. Donofrio Senior Vice President and Group Executive, Server Group J. Bruce Harreld Senior Vice President, Strategy Paul M. Horn Senior Vice President, Research Ned C. Lautenbach Senior Vice President and Group Executive, Sales and Service Lawrence R. Ricciardi Senior Vice President and General Counsel Robert M. Stephenson Senior Vice President and Group Executive, Personal Systems and Technology Group G. Richard Thoman Senior Vice President and Chief Financial Officer John M. Thompson Senior Vice President and Group Executive, Software Group David B. Kalis Vice President, Communications Abby F. Kohnstamm Vice President, Corporate Marketing

IBM Microelectronics Division Michael J. Attardo General Manager, IBM Microelectronics Division Orest Bilous General Manager, Manufacturing and Process Development James K. Picciano General Manager, Applications and Solutions Development John C. Gleason Vice President and Assistant GM, Worldwide Sales and Marketing John Kelly Vice President, Strategy and Technology Peter Draheim Chief Executive Officer, SubMicron Semiconductor Technologies GmbH Stanley J. Grubel Chief Executive Officer, MiCRUS

Products and Processes

IBM Microelectronics offers the following products:

Memory Products • 4M, 16M, and 64M DRAMs (standard and low power versions). The company announced in April 1997 that it was halting production of 4M DRAMs to make more room for ASIC production. • 16M and 64M synchronous DRAMs (SDRAMs). • 8M and 16M synchronous graphics RAMs (SGRAMs). • 4M enhanced DRAMs (EDRAMs) through its partnership with Enhanced Memory Systems Inc. • 4M VRAMs. • 1M and 4M high-performance CMOS synchronous SRAMs (250MHz and 225MHz, respectively).

1-136 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profile IBM Microelectronics

ASIC Products • CMOS digital ASICs—gate arrays and standard cells with gate counts ranging from 50,000 to 3.2 million gates (max.). IBM’s system cores include PowerPC and x86 MPUs, DSPs, peripheral circuits, I/O circuits, USB devices, audio/video/graphics components, and communications interfaces. • Bipolar analog and mixed-signal ASICs. • CMOS analog and mixed-signal ASICs. • BiCMOS analog and mixed-signal ASICs. • High-performance BiCMOS analog and mixed-signal ASICs. • IBM abandoned its FPGA development and production program in 1996.

Microprocessors and Controllers • 6x86, 5x86C, 486 DX4, and 486 DX2 microprocessors (the 5x86C and 6x86 are designed by Cyrix). • PowerPC™ 600 Series 32-bit and 64-bit RISC microprocessors (clock speeds of up to 250MHz). • PowerPC™ 400 Series 32-bit RISC embedded controllers. • MC196 16-bit microcontrollers (compatible with Intel’s MCS-96 16-bit architecture). • Mwave™ digital signal processor (DSP) products for multimedia and communications applications.

Communications, Networking, Interface, and Graphics Products • PCI core logic chipsets and PCI-to-PCI bridge chips. • Firewire (IEEE 1394) high-speed (200Mbps) serial bus transceiver chips. • High-end RGB series of palette digital-to-analog converters for 2D and 3D graphics. • Adaptive Lossless Data Compression (ALDC) ICs and MPEG-2 digital video encoders and decoders. • High-performance ATM, Ethernet, and Token Ring networking chips and ASIC cores (made available to the merchant market in 3Q96). • Silicon-germanium-based wireless communications and data-conversion devices. • Infrared transceivers and communications controllers.

Other Products and Services • Semiconductor contract manufacturing services for advanced ICs. Process technologies offered through IBM’s foundry services include the CMOS 5S1 0.5µm process, the CMOS 5SF 0.35µm SPQM process, and the CMOS 6SF 0.25µm SPQM process, which will be available for volume production in 2Q98. • Deep-UV photoresists. • Semiconductor test equipment. • Semiconductor packaging services for single or multiple chip applications. • Printed circuit boards and cards. • PCMCIA infrared wireless and data/fax modem products and solid state file storage products.

IBM has developed and uses some of the industry's most advanced CMOS processing technologies including the following: 0.35µm, 0.5µm, and 0.6µm CMOS with up to five layers of metal. The company unveiled its 0.25µm CMOS 6S process technology in mid-1996. While digital CMOS is the company's principal technology, various other processes are used, including bipolar, analog CMOS, BiCMOS, complementary BiCMOS, and silicon- germanium (SiGe).

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-137 IBM Microelectronics North American Company Profiles

Semiconductor Fabrication Facilities

IBM Microelectronics IBM Microelectronics East Fishkill Facility 1000 River Street 1580 Route 52 Essex Junction, Vermont 05452 Hopewell Junction, New York 12533 Telephone: (802) 769-0111 Telephone: (914) 894-5647 Capacity (wafers/week): 15,000 Cleanroom size: 230,000 square feet Wafer size: 200mm Capacity (wafers/week): 16,750 Processes: CMOS, BiCMOS, bipolar Wafer sizes: 125mm, 200mm Products: DRAMs, SRAMs, logic ICs, mixed-signal ICs, Processes: CMOS, BiCMOS, SiGe linear ICs, ASICs, MPUs, foundry services Products: Logic ICs, linear ICs, mixed-signal ICs, Feature sizes: 0.25µm-1.0µm memories, R&D Feature sizes: 0.25µm-0.8µm (IBM's ASTC—Advanced Semiconductor Technology Center is located here)

IBM Microelectronics IBM United Kingdom Labs Ltd. Thomas J. Watson Research Center Hursley Park Route 134 North Winchester Yorktown Heights, New York 10598 Hampshire SO21 2JN Telephone: (914) 945-3000 England Capacity (wafers/week): 1,500 United Kingdom Wafer size: 100mm Telephone: (44) (962) 84-4433 Process: CMOS Wafer size: 200mm Products: R&D Processes: Bipolar, MOS Feature size: 0.25µm Products: R&D

IBM France IBM/Siemens 224 Bd. John Kennedy Corbeil-Essonnes Cedex P.O. Box 58 France F-91102 Corbeil Essones-Cedex Cleanroom size: 116,000 square feet France Capacity (wafers/week): 3,000 Telephone: (33) (1) 60-88-51-51 Wafer size: 200mm Cleanroom size: 390,000 square feet Process: CMOS Capacity (wafers/week): 10,750 Products: DRAMs (logic ICs in future) Wafer sizes: 125mm, 200mm Feature sizes: 0.35µm-0.5µm Process: CMOS Products: MPUs, MCUs, ASICs, DRAMs, SRAMs Feature sizes: 0.35µm-0.8µm

1-138 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles IBM Microelectronics

IBM Duetschland GmbH IBM Japan Ltd. Werk Singdelfingen 800 Ohaza Ichimayake, Yasu-Machi Postfach 266 Yasu-gun, Shiga-ken 520-23, Japan Singdelfingen, Germany Telephone: (81) (755) 88-2511 Telephone: (49) 7031-910 Capacity (wafers/week): 10,000 Capacity (wafers/week): 18,750 Wafer sizes: 125mm, 200mm Wafer sizes: 125mm, 200mm Process: CMOS Processes: Bipolar, CMOS Products: MPUs, DSPs, ASICs, logic ICs Products: DRAMs, SRAMs, ASICs, DSPs, MPUs Feature sizes: 0.6µm, 0.8µm Feature sizes: 0.8µm-2.0µm (DRAM production discontinued here in 1996.)

MiCRUS SubMicron Semiconductor Technologies GmbH (SMST) 1580 Route 52 Schoenaicherstrasse 220 Hopewell Junction, New York 12533 Boeblingen Hulb, Germany Telephone: (914) 892-2121 Cleanroom size: 107,640 square feet (Class 1) Capacity (wafers/week): 9,000 Capacity (wafers/week): 4,000 Wafer size: 200mm Wafer size: 200mm Process: CMOS Process: CMOS Products: DRAMs, MPRs Products: DRAMs, logic ICs Feature sizes: 0.35µm-0.6µm Feature size: 0.65µm (Joint venture with Cirrus Logic. (Joint venture with Philips. The partners plan See Key Agreements.) to upgrade the fab to handle 0.5µm line widths. See Key Agreements.)

Dominion Semiconductor LLC 9600 Godwin Drive Manassas, Virginia 22110 Telephone: (703) 367-3280 Fax: (703) 367-3271 Cleanroom size: 90,000 square feet Capacity (wafers/week): 7,500 Wafer size: 200mm Process: CMOS Products: DRAMs Feature size: 0.35µm (Joint venture with Toshiba. Scheduled to begin production in early 1998. See Key Agreements.)

Key Agreements

• In mid-1996, IBM announced an agreement with Mitsubishi that allows the Japanese company to sell IBM PowerPC embedded controller chips under the Mitsubishi brand name.

• IBM and Synopsys announced a six-year R&D agreement in February 1996 to jointly develop tools and methodologies for designing complex ICs with as many as 10 million gates.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-139 IBM Microelectronics North American Company Profiles

• IBM licensed the Rambus ASIC Cell (RAC) high-bandwidth interface technology in early 1996 from Rambus to use in its SystemCore ASIC megacell library.

• IBM granted licensing rights to Exponential Technology, Inc. to develop and market a new ultra-high- performance BiCMOS microprocessor based on the PowerPC architecture. Volume shipments of Exponential’s MPU are expected to begin in early 1997.

• In late 1995, IBM and Toshiba began building a new 64M DRAM plant at the site of a closed IBM fab in Manassas, Virginia. IBM and Toshiba will each own 50 percent of the facility, which will operate under the name Dominion Semiconductor. First silicon is expected from the fab in late 1997 with production beginning in 1998.

• Ramtron signed a manufacturing agreement with IBM in May 1995 for EDRAM production. Under the agreement, IBM is serving as a foundry for the production of Ramtron-subsidiary Enhanced Memory Systems' EDRAMs, and IBM has a non-exclusive license to sell the devices.

• In 1994, Philips agreed with IBM Microelectronics to form a joint venture to manufacture ICs at IBM's fab facility in Boeblingen Hulb, Germany. Philips holds 51 percent and IBM 49 percent of the new company, called SubMicron Semiconductor Technologies GmbH (SMST). SMST is supplying products solely to IBM and Philips, manufacturing DRAMs for IBM and logic ICs for Philips. Separately, Philips acquired the rights to IBM’s 16M DRAM technology for embedded applications. Embedded DRAM products will also be produced by SMST.

• IBM and Cirrus Logic formed a joint manufacturing venture called MiCRUS in 1994. MiCRUS fabricates wafers for both companies in a former IBM plant in East Fishkill, New York. IBM and Cirrus Logic own 52 percent and 48 percent of MiCRUS, respectively. For the time being, the agreement does not include product and/or technology exchange.

• S3 Incorporated signed an agreement with IBM for the production of S3's graphics accelerators at IBM's fab in Essex Junction, Vermont.

• The PowerPC RISC architecture has been, and continues to be, codeveloped by IBM, Motorola, and Apple Computer. The trio of companies are also working on combining the PowerPC technology with an open hardware platform supporting a range of operating systems.

• IBM is jointly developing with Siemens and Toshiba, 0.25µm technology for shrink-version 64M DRAMs and 256M DRAMs. Additionally, in 3Q96, Toshiba, IBM, and Siemens agreed to jointly develop system-on-a-chip devices. As part of a separate agreement, Siemens and IBM are jointly producing 16M DRAMs in Corbeil- Essonnes, France.

• Toshiba licensed the PowerPC microprocessor technology from IBM Microelectronics. Although Toshiba was not given the right to sell PowerPC MPUs on the merchant market, it does have the right to develop and manufacture its own derivatives of the processor. For now, IBM will produce the MPUs for Toshiba.

1-140 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles IBM Microelectronics

• IBM and Cyrix announced a five-year agreement in early 1994 calling for IBM to manufacture Cyrix's 486, 5x86, and 6x86 MPUs. The two companies equally share the output of the Cyrix-designed chips.

• IBM and Analog Devices announced in late 1993 plans to jointly design, produce, and market mixed-signal and RF chips based on IBM's silicon-germanium (SiGe) process technology. In 1996, Hughes Electronics joined IBM in a program to develop SiGe chips for commercial communications applications.

• IBM is working with Motorola, Lockheed-Martin Federal Systems, and Lucent Technologies to establish a manufacturing infrastructure for X-ray lithography. The team hopes to have a manufacturing capability by the end of 1997.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-141 IC Works North American Company Profiles

IC WORKS

IC Works, Inc. 3725 North First Street San Jose, California 95134-1700 Telephone: (408) 922-0202 Fax: (408) 922-0833

IC Manufacturer

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

1994 1995 1996 1997 Sales 21 26 41 47

Employees 125 150 200 250

Company Overview and Strategy

IC Works was established in June 1992 when it acquired the San Jose fabrication facility, process technology, and engineering and manufacturing staff of Samsung Semiconductor, the U.S. business of Korea’s Samsung.

As an independent company, IC Works designs, manufactures, and markets mixed-signal products using its design and in-house facility, and provides quick-turn, submicron foundry services to selected mixed-signal semiconductor companies.

IC Works operates three complementary mixed-signal businesses—clock products, wireless communications products, and submicron foundry services.

Management

Ilbok Lee, Ph.D. President and Chief Executive Officer John Hagedorn Vice President and Chief Financial Officer John Kelly Vice President, Fab Operations Richard Miller Vice President, Marketing Chen Wang Vice President, Engineering

1-142 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles IC Works

Products and Processes

IC Works' product and services include high-performance clock generator ICs, wireless communication circuits, and foundry services. New products for the computer and data communications markets are being developed.

Foundry Services IC Works’ in-house foundry provides special services to mixed-signal semiconductor companies for the development, prototyping, and early production of new products.

Clock Products IC Works offers a wide range of high performance phase-locked-loop (PLL)-based clock ICs for system manufacturers in a variety of markets. The main applications within the clock market include PC motherboards, communications, mass storage, multimedia, and workstations. Products include clock buffers and single and dual PLL clocks.

Wireless Communications Utilizing its PLL and BiCMOS process technologies, IC Works is developing RF solutions for the wireless marketplace, focusing on data communications. This product strategy includes development of component level functional block products and ASSPs.

As part of the buyout, Samsung licensed IC Works to use its scaleable submicron CMOS and BiCMOS process technologies. Currently, the majority of IC Works’ production wafer output is processed to 0.7µm design rules with a migration to 0.6µm under way. Future plans include development of finer geometry processes down to 0.35µm.

Semiconductor Fabrication Facilities

IC Works, Inc. 3725 North First Street San Jose, California 95134-1700 Cleanroom size: 15,000 square feet (Class 1) Capacity (wafers/week): 1,200 (expanding) Wafer size: 125mm (upgrading to 150mm) Processes: CMOS, BiCMOS Products: Mixed-signal ICs, foundry services Feature sizes: 0.5µm, 0.7µm (0.35µm under development)

IC Works is in the process of expanding its fab capacity with financial support from its fab partners, which include Sierra Semiconductor and TelCom Semiconductor Inc. The $50 million expansion, which includes moving from 125mm to 150mm wafers, is scheduled to be completed in 1997.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-143 IC Works North American Company Profiles

Key Agreements

• In 1996, IC Works and Motorola announced a second-source agreement for the development and manufacture of CMOS and BiCMOS-based mixed-signal timing circuits. Motorola will contribute high-performance timing solutions targeted at workstations, servers, and network applications, while IC Works will provide “clock” solutions targeting personal computers and peripheral applications.

• IC Works has a foundry agreement with TelCom Semiconductor. Under the agreement, TelCom will invest $10 million in equipment and the expansion of IC Works’ submicron wafer fabrication facility, in return for wafer capacity. The agreement covers a five-year period which is expected to begin in late 1997.

1-144 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles ICS

INTEGRATED CIRCUIT SYSTEMS (ICS)

Integrated Circuit Systems, Inc. 2435 Boulevard of the Generals P.O. Box 968 Valley Forge, Pennsylvania 19482-0968 Telephone: (610) 630-5300 Fax: (610) 630-5399 Web Site: www.icst.com

Fabless IC Supplier

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

1992 1993 1994 1995 1996 Sales 37 78 94 104 100 Net Income 4 11 12 5 4 R&D Expenditures 7 9 10 11 12

Employees 224 314 336 219 206

Company Overview and Strategy

Founded in 1976, Integrated Circuit Systems (ICS), designs, develops, and markets mixed-signal integrated circuits primarily for data communications, clock, and multimedia applications. The company also provides custom application specific ICs (ASICs) for the consumer, medical, telecommunications, and aerospace industries.

ICS’s primary focus is to combine its innovation, market position, and competency in mixed-signal and phase locked-loop technology to capitalize on the trend convergence of computer, communications, and consumer applications, especially in the LAN/WAN communications marketplace.

For most of its formative years ICS concentrated on supplying its mixed-signal technology in custom ASIC designs for OEMs. In the late 1980’s, ICS began to develop proprietary standard products. ICS entered the frequency timing generator (FTG) business in 1989 with a pioneering FTG for video clocks.

In 1992, ICS completed the acquisition of the Avasem Corporation, the leader in motherboard clocks. Together, ICS and Avasem offer a breadth of clock products unequaled by any other company.

In April 1995, ICS purchased a majority interest in ARK Logic Inc., a Santa Clara, California-based developer of graphical user interface (GUI) accelerator devices. ARK Logic's graphics controller technology was merged with ICS's audio and mixed-signal RAMDAC and video clock generator technologies to provide complete PC multimedia solutions.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-145 ICS North American Company Profiles

In 1995, ICS introduced a line of high-performance transceiver chips designed for international use in the latest network systems. These devices work in local area networks (LANs) and wide area networks (WANs), including the newest technologies such as Sonet/SDH fiber optic systems, asynchronous transfer mode (ATM) copper/fiber systems, and fast Ethernet systems.

In December 1996, ICS sold its subsidiary, Turtle Beach Systems Inc., in an effort to focus on its core businesses. In a separate move, ICS sold its battery charge controller business.

Multimedia/ ARK Logic 13%

ASICs 17% Clock ICs 49% Turtle Beach 21%

1996 Sales by Product Group

Sales outside of the United States, primarily to the Pacific Rim, reached approximately 48 percent of total sales in 1996.

Management

Henry I. Boreen Chairman and Interim Chief Executive Officer Stavro Prodromou President and Chief Executive Officer Hock E. Tan Senior Vice President, Finance and Administration, Chief Financial Officer, and Chief Operating Officer Gregory J. Richmond Vice President, FTG Business Group (San Jose, CA) William H. Weir Vice President, Data Communications Business Group Ronald J. Wenger Vice President, Sales Edward Christiansen Director, Operations John Klein Director, Custom Products Allan Havemose President, ARK Logic, Inc.

Products and Processes

ICS's products are outlined below. The products are designed and produced using CMOS processing technologies ranging from 0.35µm to 3.0µm.

Data Communications Products Multimedia Audio Products • Fast Ethernet LAN • Music synthesizers • ATM • Audio codecs (coders and decoders) • Sonet/SDH • Software for wavetable music synthesis

1-146 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles ICS

Clock Products ARK Logic • Motherboard timing generators • GUI controller chips and software drivers • Video timing generators • Multimedia accelerators • Graphics timing for workstations • Special-purpose FTGs for Pentium Pro and Custom ICs PowerPC microprocessors and chipsets • Mixed-signal ICs for a broad range of applications

Semiconductor Fabrication Facilities

All of ICS's wafers are currently manufactured by outside foundries, two of which meet a substantial majority of the company's wafer needs. ICS’s foundry partners include AMI and Chartered Semiconductor.

Key Agreements

• During fiscal year 1996, ICS established an agreement with Chartered Semiconductor to secure a minimum wafer supply from Chartered covering a five year period.

• ICS acquired a 51 percent interest in ARK Logic, Inc. in 3Q95. ICS plans to combine its audio design specialty with ARK’s video graphics expertise to develop a chip that handles 3D graphics, VGA control, and audio and video processing. ICS may purchase the remaining 49 percent of ARK Logic.

• In October 1992, ICS entered into an alliance with American Microsystems Inc. under which ICS secured wafer processing capacity through the year 2000.

• ICS licensed DSP Group’s Pine digital signal processing and TrueSpeech voice compression technologies for use in its next-generation audio components.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-147 ICT North American Company Profiles

ICT

ICT Inc. 2123 Ringwood Avenue San Jose, California 95131 Telephone: (408) 434-0678 Fax: (408) 434-0688 Web Site: www.ictpld.com

Fabless IC Supplier

Company Overview and Strategy

ICT Inc., founded in November 1991, designs, manufactures, and markets programmable logic devices (PLDs) for a variety of applications such as PCs, telecommunications, industrial, medical, and consumer electronics. The company was originally established in 1983 by International CMOS Technology.

ICT is organized into two divisions: the Programmable Logic Division (PLD) and the Personal Computer Products Division (PCPD). The PLD designs, develops, and markets user-programmable integrated circuits specializing in programmable logic devices (PLDs). The PCPD designs and markets PC core logic chipsets and peripheral controller products.

Management

David Sears, Ph.D. Chairman and acting Chief Executive Officer Edward D. Barnett President and Chief Operating Officer Volker Cathrein Chief Financial Officer and Secretary Donald E. Robinson Vice President, Special Products Beverly Schirl Director, Marketing

Products and Processes

ICT's programmable logic product line consists of two families of CMOS PLDs—PEEL (Programmable Electrically Erasable Logic) Devices and PEEL Arrays—in addition to supporting development tools. PEEL Devices are simple PLDs designed as replacements for standard 20-pin and 24-pin PAL/GAL devices with speed grades ranging from 5ns to 25ns. PEEL Arrays are complex PLDs (CPLDs) that combine a non-segmented PLA with FPGA-like logic cells with wide single-level delays as fast as 9ns/15ns (internal/external). PEEL Arrays are used for combinatorial logic, with clocking frequencies running up to 80MHz for sequential functions.

1-148 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles ICT

PEEL Devices PEEL Arrays PEEL 16V8 PA7024 PEEL 18CV8 PA7128 PEEL 20V8 PA7140 PEEL 22CV8 PEEL 22CV10A PEEL 22CV10AZ PEEL 22LV10AZ PEEL 22V10

ICT's PLDs are designed and manufactured using proprietary 0.8µm CMOS EEPROM technology.

The company's PC product line consists of Pentium and 486 portable and desktop core logic chipsets, programmable peripheral interface ICs, and peripheral controller ICs.

Semiconductor Fabrication Facilities

As with other fabless IC suppliers, ICT utilizes external fabrication and assembly facilities. ICT wafers are currently fabricated by two companies: Chartered Semiconductor Manufacturing of Singapore and Rohm Co. of Japan. Assembly and test work is handled by multiple vendors in the Philippines, Thailand, and Taiwan.

Key Agreements

• ICT has a license agreement with AMD involving PLD products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-149 IDT North American Company Profiles

INTEGRATED DEVICE TECHNOLOGY (IDT)

Integrated Device Technology, Inc. 2972 Stender Way Santa Clara, California 95054 Telephone: (408) 727-6116 Fax: (408) 727-8043 Web Site: www.idt.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Integrated Device Technology–Nippon–K.K. • Chiyoda-ku, Tokyo, Japan Telephone: (81) (3) 3221-9821 • Fax: (81) (3) 3221-9824

Europe: Integrated Device Technology, Ltd. • Leatherhead, Surrey, United Kingdom Telephone: (44) (1372) 363339 • Fax: (44) (1372) 378851

Asia-Pacific: Integrated Device Technology, Asia, Ltd. • Tsimshatsui, Hong Kong Telephone: (852) 2736-0122 • Fax: (852) 2375-2677

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

1993 1994 1995 1996 1997 Sales 236 330 422 680 537 Net Income 5 40 78 120 (42) R&D Expenditures 54 64 78 133 151 Capital Expenditures 28 38 95 287 201

Employees 2,414 2,615 2,965 3,875 4,380

Company Overview and Strategy

Integrated Device Technology, Inc. (IDT), founded in 1980, designs, manufactures, and markets high- performance integrated circuits and modules that are used in products serving its targeted markets segments: personal computing (desktop and portable PCs), distributed computing systems, communications equipment, and office automation. IDT enhances its customers’ ability to optimize the cost and performance of their microprocessor-based systems by providing innovative solutions based on four product groups: high-speed SRAMs; communications products including FIFOs, multi-port memories and ATM products; high-performance logic products; and RISC microprocessors.

In an effort to diversify its products and reduce its reliance on one particular market, IDT is moving towards other growth areas of SRAMs such as the communications market.

1-150 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles IDT

RISC MPUs 12% Logic Communications Products Products 20% 36% SRAMs 32%

Fiscal 1997 Sales by Product Group

Office

Automation 7% Other Asia Data 10% Japan 7% Distributed Communications 13% Computing 28% 10% Europe United States Personal 17% Telecom Computing 63% 23% 22%

Fiscal 1997 Sales by End-Use Market Fiscal 1997 Sales by Geographic Region

Management

D. John Carey Chairman Leonard C. Perham President and Chief Executive Officer Ray Famham Executive Vice President Stuart Bardach Vice President, Quality Charles R. Clark Vice President, Subsystems Products/SRAM Products William B. Cortelyou Vice President, Wafer Operations Dave Côté Vice President, Marketing Randy Frederick Vice President, Logic Products Robin H. Hodge Vice President, Assembly and Test Jimmy Lee Vice President, FIFO Products Daniel L. Lewis Vice President, Worldwide Sales Chuen-Der Lien Vice President, Technology Development John R. Mick Vice President, Applications Engineering Daniel R. Morris Vice President, ATM Products Tom North Vice President, DRAM Products Bob Phillips Vice President, Worldwide Manufacturing Robert Proebsting Vice President, Advanced Design Concepts Christopher P. Schott Vice President, Specialty Memory Products William D. Snyder Vice President, Finance, and Chief Financial Officer Jerry Taylor Vice President, Memory Products Thomas B. Wroblewski Vice President, Human Resources

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-151 IDT North American Company Profiles

Products and Processes

IDT produces SRAMs, logic products, communications products, and RISC microprocessors. These products are designed and manufactured using proprietary advanced submicron CMOS and BiCMOS process technologies, including the company's CMOS VIII 0.5µm process and its next-generation 0.35µm process. IDT's product groups are outlined below.

SRAMs • Fast CMOS asynchronous SRAMs with 16K to 1M densities and access times as fast as 10ns; 4M density devices will be available in 1998. • Fast CMOS ZBT™ synchronous SRAMs that optimize system performance in applications that frequently turn the data bus around between reads and writes. Available in 1M density with 4M density devices that will support clock speeds up to 133MHz planned for 1998. • Fast CMOS synchronous pipelined burst SRAMs (PBSRAMs) in 1M to 2M densities with clock speeds up to 100MHz to support zero wait state performance in cache applications. • BiCMOS cache tag SRAMs for Pentium and PowerPC processors with high speed address-to-match times up to 8ns. • Ultra low-power CMOS SRAMs in 1M density with competitive standby and active supply current specifications. • High-speed industry-standard and custom CMOS SRAM modules.

Communications Memory Products • High-speed CMOS multi-port SRAMs in densities from 8K to 512K with both synchronous and asynchronous interfaces. • High-density CMOS first-in, first-out memories (FIFOs) in synchronous unidirectional or bidirectional and asynchronous unidirectional or bidirectional versions, covering depths from 64K to 64K bytes and widths from 4 to 36 bits. • Low-cost Asynchronous Transfer Mode (ATM) 25 to 155 Mbps segmentation and reassembly (SAR) controllers and physical layer (PHY) transceivers for use in network interface cards.

Logic Products • High-speed FCT CMOS logic devices. • High-speed 3.3V CMOS FCT logic devices. • Low skew clock drivers. • High-speed error detection and correction devices. • Zero delay bus switch devices.

RISC Microprocessors • R3000- and R4000-based 32-bit microprocessors, as well as the fourth generation R4700 and R5000 Orion 64-bit microprocessors. • RISC subsystems.

1-152 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles IDT

Semiconductor Fabrication Facilities

Integrated Device Technology Integrated Device Technology 1566 Moffett Street 2670 Seeley Road Salinas, California 93905 San Jose, California 95134 Fab 2 Telephone: (408) 944-0114 Cleanroom size: 24,000 square feet (Class 3) Fab 3 Capacity (wafers/week): 2,050 Cleanroom size: 24,000 square feet (Class 1) Wafer size: 150mm Capacity (wafers/week): 2,050 Process: CMOS Wafer size: 150mm Products: SRAMs, FIFOs, MPUs Processes: CMOS, BiCMOS Feature sizes: 0.5µm-0.8µm Products: SRAMs, FIFOs, RISC MPUs, logic ICs, R&D Feature sizes: 0.5µm-0.8µm

Integrated Device Technology Hillsboro, Oregon Fab 4 Cleanroom size: 48,000 square feet (Class 1) Capacity (wafers/week): 1,875 (3,000 when fully outfitted) Wafer size: 200mm Processes: CMOS, BiCMOS Feature sizes: 0.35µm, 0.5µm (Began operations in 1Q96)

Key Agreements

• IDT gained the right to make, market, and distribute multi-banked DRAM (MDRAM) memory architecture through a licensing agreement with MoSys Inc. The agreement also serves to expand the existing foundry agreement between the two companies. IDT plans to introduce a 9M MDRAM chip in mid-1997, using 0.35µm process technology at its Hillsboro facility. IDT is a minority investor in MoSys, Inc.

• IDT codesigned its Mips-based Orion 64-bit RISC microprocessor with its partner, Quantum Effect Design.

• IDT signed an alternate source agreement with Texas Instruments for logic products. TI and IDT are also jointly developing FIFO memory devices.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-153 IMI North American Company Profiles

INTERNATIONAL MICROCIRCUITS (IMI)

International Microcircuits Inc. 525 Los Coches Street Milpitas, California 95035-5423 Telephone: (408) 263-6300 Fax: (408) 263-6571 Web Site: www.imicorp.com

IC Manufacturer

Employees 80

Company Overview and Strategy

International Microcircuits Inc. (IMI) was formed in 1972 to manufacture high quality chrome photomasks. In the early 1990's IMI began developing niche application-specific standard products (ASSPs), building on its years of experience in ASICs. The company has a particular strength in the area of frequency synthesis using phase- locked loop (PLL) techniques.

IMI has positioned itself as a leading supplier of clock circuits and is focusing its efforts on the consumer, computer, and wireless communications markets. The company is expanding its frequency timing generator technology to include other markets such as high-speed modems, digital video disks (DVDs), and printer applications. In the area of wireless communications, IMI is developing integrated solutions for the ISM and DECT wireless communications applications.

Export sales accounted for almost 80 percent of total revenue in fiscal 1996.

Europe Japan 4% 7%

North America 21% Asia 68%

1996 Sales by Geographic Region

1-154 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles IMI

Management

Frank Deverse Chairman and Chief Executive Officer Ilhan Refioglu President and acting Chief Financial Officer Orhan Tozun Vice President, Engineering Ed Walsh Vice President, Manufacturing George Gary Director, Computer Products Rick Reifer Director, Marketing and Sales Kazuo Tomari Drector, Wireless Communications and New Business Development Larry Zuckerman Director, Wireless Communications

Products and Processes

IMI's products are focused on two major applications: frequency synthesis for telecommunications and clock generation for digital systems. These products include clock generation devices for PC motherboards (including those based on the latest CISC and RISC processors) and PLLs and phase detectors for cellular phones, cordless phones, satellite receivers, and cable TV boxes. IMI is also a pioneer in the integration of spread spectrum technology for reducing EMI.

Semiconductor Fabrication Facilities

To supplement its own wafer production capacity, IMI has foundry agreements with IBM, GMT Microelectronics, and Seiko.

International Microcircuits Inc. 525 Los Coches Street Milpitas, California 95035-5423 Cleanroom size: 2,000 square feet (Class 10) Wafer size: 150mm Process: CMOS Products: ASSPs Feature sizes: 0.35µm, 0.8µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-155 IMP North American Company Profiles

IMP

IMP, Inc. 2830 North First Street San Jose, California 95134-2108 Telephone: (408) 432-9100 Fax: (408) 434-0335 Web Site: www.impweb.com

IC Manufacturer

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

1993 1994 1995 1996 1997 Sales 56 48 60 77 65 Net Income (2) 0.4 1 5 (12) R&D Expenditures 10 9 9 10 10 Capital Expenditures 2557n/a

Employees 324 340 400 425 200

Company Overview and Strategy

IMP was founded in 1981 as International Microelectronic Products, but changed its name to IMP, Inc. in 1993. Originally in the custom IC business, IMP began marketing its silicon foundry in 1987 and exited the custom IC business in 1990 with the introduction of its first standard product. IMP is a supplier of high-integration and programmable, analog and mixed-signal ICs and wafer manufacturing services to the computer, communications, and control markets. The company is a technology leader in analog signal processing and programmable analog design techniques.

IMP is comprised of two business groups, the Application-Specific Standard Products group and the Customer- Specific Products group (wafer foundry). The company's ASSP group designs, manufacturers, and markets a proprietary line of value-added ICs for tape and disk drive manufacturers. The CSP group provides a wide range of CMOS IC manufacturing processes (specializing in mixed-signal) to companies in the computer and computer peripherals markets, as well as to fabless semiconductor companies and IMP's own ASSP group. Value-added processes include 0.8µm CMOS, EECMOS, 3-volt, and BiCMOS.

1-156 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles IMP

Europe and Pacific Basin ASSP 30% CSP 48% 52% North America 70%

1997 Sales by Product Group 1997 Sales by Geographic Region

To address the need for wafer capacity by small fabless startup companies, IMP announced the establishment of its Silicon Venture Partners (SVP) program in May 1995. Under the SVP program, IMP provides access to wafer fabrication capabilities to fabless semiconductor startups. This includes absorbing some of the expenses of developing and producing a new IC in exchange for product, marketing, and/or technology rights, a share of future profits, or other compensation.

Management

David A. Laws President and Chief Executive Officer George Rassam Chief Financial Officer Russ Almand Vice President, Sales Tarsaim Batra Vice President, Manufacturing Robert J. Crossley Vice President, Administration Jerry L. DaBell Vice President, Product Planning Moiz B. Khambaty, Ph.D. Vice President, Technology Gregory Koskowich Vice President, Product Development

Products and Processes

Application-Specific Standard Products • High-frequency programmable filters for tape and disk drives. • Read channel ICs with both 3V and 5V operation for tape and disk drives. • Electrically programmable analog circuits (EPAC™)—Analog counterparts to digital FPGAs that are designed for signal conditioning applications in the sensor, instrumentation, and industrial control markets. The EPACs are based on IMP's mixed-signal 1.2µm EECMOS process.

Customer-Specific Products—IMP provides specialized or value-added foundry services. The firm is capable of running multiple processes in the same fab. • CMOS Analog Processes: For analog and mixed-signal applications in mass storage products, fax modems, local area networks, cellular phones, and computers. • EECMOS Process: Suitable for customization or personalization of customer designed circuits through on- chip electrical programming. • High-Voltage Processes: Allows a chip to be designed with some sections functioning up to 18 volts and other sections at the typical 5 volts. • 3-volt Processes: To be used with circuits designed for portable system applications.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-157 IMP North American Company Profiles

IMP's process technologies include: 0.8µm double-poly/double-metal CMOS, 1.0µm single- and double- poly/double-metal CMOS, 1.2µm low-voltage and high-voltage CMOS, 1.2µm double-poly/double-metal BiCMOS, and 1.2µm double-poly/double-metal EECMOS.

Semiconductor Fabrication Facilities

IMP, Inc. 2830 North First Street San Jose, California 95134 Cleanroom size: 16,000 square feet (Class 10) Capacity (wafers/week): 3,000 Wafer size: 125mm Processes: CMOS, BiCMOS, EECMOS Products: ASSPs, ROMs, foundry services Feature sizes: CMOS: 0.8µm, 1.0µm, 1.2µm, 2.0µm, 3.0µm, 5.0µm BiCMOS: 1.2µm EECMOS: 1.2µm

Key Agreements

• In July 1995, IMP signed a five-year foundry agreement with Rockwell Semiconductor Systems for the fabrication of Rockwell’s mixed-signal modem ICs.

• IMP joined with Zilog and Allegro MicroSystems in a marketing alliance. The team is marketing what they call a ZIA disk drive chipset, with ZIA standing for Zilog, IMP, and Allegro. IMP's contribution to the ZIA chipset are the read channel ICs and ROMs.

• In 1992, IMP signed a technology and distribution agreement with Asahi Kasei Microsystems (AKM) covering ASSPs.

• IMP has a design and process technology transfer agreement with South African Microelectronic Systems (SAMES). SAMES purchased the rights to IMP's 1.2µm and 2.0µm mixed-signal process technologies and has been qualified as a second source for IMP’s high-volume manufacturing processes.

1-158 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Infinite Technology

INFINITE TECHNOLOGY

Infinite Technology Corporation 2425 North Central Expressway, Suite 323 Richardson, Texas 75080 Telephone: (972) 437-7800 Fax: (972) 437-7810 Web Site: www.infinite-tech.com

Fabless IC Supplier

Employees 30

Company Overview and Strategy

Established in 1991, Infinite Technology Corporation (ITC) is involved in the research, design, development, and marketing of high-performance reconfigurable function and application specific semiconductor products and technology. It also provides design support and design services.

ITC has developed a field-programmable, in-system reconfigurable architecture that efficiently addresses the need for high performance arithmetic datapath functionality required to accelerate data stream algorithms for image processing in video editing, digital still cameras, broadcast video, pattern recognition, medical instrumentation, and virtual reality. Other applications for the company’s products include robotics, communications, satellites, data storage, and military equipment.

Management

Tim Smith Chairman and Chief Executive Officer Lavelle Gibson President and Chief Operating Officer Art Berger Chief Financial Officer Glen Haas, Jr. Vice President, Engineering George Landers Vice President, Sales and Marketing Mark R. Smith Vice President, Business Services Robert L. (Les) Veal Manager, Business Development

Products and Processes

ITC’s products and services include: reconfigurable arithmetic datapath (RAD™) IC products, which are essentially reconfigurable DSPs; technology license agreements for programmable logic, reconfigurable arithmetic datapath, and digital signal processing architectures; ASIC design services, including custom macrocell development; and software development services.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-159 Infinite Technology North American Company Profiles

ITC’s RAD5A4 device features four 100MHz 16-bit MacroSequencer processors, a built-in dual PLA, and five data buses. The company believes the RAD5A4 offers concurrent parallel processing performance (up to 3.2 billion operations per second) for less than the cost of a single-chip DSP.

The company’s ASIC design services cover custom development of ICs and design cell libraries specializing in digital, analog, and mixed-signal devices, as well as memories. Design libraries include a range of custom I/Os (including SCSI and PCI), dense RAMs, PLLs, oscillators, and high-speed multipliers.

The company also offers its Cheetah high-performance hard datapath core for complex system-level ASICs. The Cheetah datapath generator core required no synthesis, is software configurable, and can be integrated with popular microprocessor cores. The Cheetah core can also be used to design custom RAD ICs.

ITC’s architecture features single-poly, double-level-metal 0.5µm or 0.6µm CMOS technology. A 0.35µm process is under development.

Infinite Technology also functions as the U.S. representative for Nippon Precision Circuits and has a close relationship with the Japanese company involving technology and design.

Semiconductor Fabrication Facilities

ITC’s RAD devices are manufactured by TSMC through Nippon Precision Circuits.

1-160 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Integrated Silicon Solution

INTEGRATED SILICON SOLUTION (ISSI)

Integrated Silicon Solution Inc. 2231 Lawson Lane Santa Clara, California 95054 Telephone: (408) 588-0800 Fax: (408) 588-0806 Web Site: www.issiusa.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: ISSI Europe • Planegg, Germany Telephone: (49) (89) 899-30193 • Fax: (49) (89) 899-0399

Asia-Pacific: ISSI Taiwan • Taipei, Taiwan Telephone: (886) (2) 397-9070 • Fax: (886) (2) 394-4024

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

1992 1993 1994 1995 1996 Sales 29 53 61 123 132 Net Income 1 6 5 30 1 R&D Expenditures 3 6 9 15 21

Employees 190 228 311 385

Company Overview and Strategy

Integrated Silicon Solution, Inc. (ISSI), founded in 1988, designs and markets high-performance SRAM and non- volatile memory ICs. The company’s initial development efforts were focused on high-performance SRAMs for cache memory applications and introduced its first SRAM products in 1990. ISSI has since expanded its product offering to include high-speed EPROMs, serial EEPROMs, and flash memory devices, and has expanded its markets to include networking applications, telecommunications, office automation, instrumentation, and consumer markets.

To date, SRAM sales have accounted for substantially all of ISSI's product sales. In an effort to reduce its dependency on the memory market, ISSI entered the microcontroller market in early 1997 with the introduction of a microcontroller family.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-161 Integrated Silicon Solution North American Company Profiles

Telecom 2% Japan Disk Drives 3% Other Asia/Other 5% 8% Europe 11% 10% Networks Modem 10% 40% United States Distributors Taiwan 52% 13% Computers 24% 22%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

Management

Jimmy S.M. Lee Chairman, President, and Chief Executive Officer Gary L. Fischer Executive Vice President, Finance and Administration, and Chief Financial Officer Kong-Yeu Han Executive Vice President and General Manager, ISSI-Taiwan Mo Bandali Vice President, Test and Product Engineering Robert G. Cushman Vice President, Corporate Marketing Thomas Doczy Vice President, Memory Marketing Business Unit Robert Shen Vice President, Corporate Planning Paul Song Vice President, Design Engineering John Unger Vice President, Quality Assurance Chung Wang Vice President, Technology

Products and Processes

ISSI designs and markets a family of high-performance SRAMs, as well as several families of non-volatile memory products, such as high-speed, high-density EPROMs, serial EEPROMs, and flash memories. In early 1997, ISSI introduced the first products in a new family of microcontrollers with integrated non-volatile memory.

SRAM Products • 5V SRAMs in 64K, 256K, 512K, and 1M density levels with access speeds as low as 10ns. • 3.3V SRAMs in 256K, 512K, and 1M density levels with access speeds as low as 12ns. • 3.3V 1M and 2M synchronous SRAMs with access speeds as low as 4ns for Pentium and PowerPC cache applications.

EPROM Products • 5V EPROMs in 256K, 512K, and 1M density levels with access speeds of 30ns to 90ns. • 3.3V EPROMs in 512K and 1M density levels with 90ns access times. • 2.4V voice EPROMs with embedded speech algorithm technology.

1-162 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Integrated Silicon Solution

EEPROM Products • 3.3V and 5V serial EEPROMs in 1K, 2K, and 4K density levels.

Flash Memory Products • 1M Intel-compatible bulk-erase flash memories. The company plans to introduce a 2M bulk-erase and 1M, 2M, and 4M boot block flash chips in 1996.

Microcontroller Products • The company offers variations on the industry-standard 8051 and 8031 8-bit MCUs with embedded ROM. A flash version, as well as 16-bit and 32-bit parts, are planned for introduction in 3Q97.

Other Products • ISSI entered the voice-chip market in 1996 with the introduction of a one-time programmable (OTP) voice chip. The device features ADPCM compression and pop noise reduction and is the first in a planned product line of OTP voice devices.

ISSI develops its advanced CMOS process technology in collaboration with its Asian manufacturing partners. Through these alliances, ISSI has jointly developed and taken into production six generations of CMOS memory technology with 1.2µm, 1.0µm, 0.8µm, 0.6µm, 0.5µm, and 0.35µm feature sizes. The company currently has several development programs with Taiwan Semiconductor Manufacturing Company (TSMC), including a program based on a 0.35µm design for advanced SRAM applications and a 0.5µm design for a high-speed flash memory product. ISSI is currently in the process of developing 0.3µm and 0.25µm SRAM processes.

The company also has collaborative programs with Chartered Semiconductor Manufacturing (CSM) in Singapore for 0.5µm SRAM process technology and with Belling Semiconductor in China for EEPROM design and process technology.

Semiconductor Fabrication Facilities

ISSI’s principal manufacturing partner is TSMC, with whom it also jointly develops process technology. Since 1993, ISSI has also used Chartered as a foundry for some SRAM and flash products.

In addition to securing capacity with independent foundries, ISSI has invested in several joint venture agreements, further guaranteeing capacity. In June 1996, ISSI entered into a joint venture with TSMC, along with Altera, Analog Devices, and other investors, to create a wafer fabrication facility, called WaferTech LLC, to be located in Camas, Washington. ISSI also has a similar agreement with United Microelectronics Corporation (UMC), located in Taiwan, for additional supply of wafers. (see Key Agreements below).

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-163 Integrated Silicon Solution North American Company Profiles

Key Agreements

• In July 1996, ISSI signed a manufacturing and joint venture agreement with TSMC, along with other investors. The agreement calls for ISSI to receive a minimum wafer capacity from TSMC in return for a four percent equity stake in the new venture. Construction of WaferTech LLC began in June 1996 with production expected to start in 2Q98 (see separate profile of TSMC).

• In early 1996, ISSI announced an agreement with Intel. ISSI licensed flash-related patents from Intel and will pay royalty fees to Intel for the revenues generated from certain flash-based products.

• In fiscal 1995, ISSI and UMC signed a manufacturing and joint venture agreement. Under terms of the agreement, ISSI agreed to invest $30 million for an equity stake in a joint manufacturing venture (UICC) that will provide ISSI with an additional supply of wafers beginning in 2H97.

1-164 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Intel

INTEL

Intel Corporation Robert Noyce Building 2200 Mission College Boulevard P.O. Box 58119 Santa Clara, California 95052-8119 Telephone: (408) 765-8080 Fax: (408) 765-1821 Web Site: www.intel.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Intel Corporation (UK) Ltd. • Swindon, Wiltshire, United Kingdom Telephone: (44) (1793) 403-000

Japan: Intel K.K. • Tsukuba-shi, Ibaraki, Japan Telephone: (81) (289) 47-8522

Asia-Pacific: Intel Semiconductor Ltd. • Hong Kong Telephone: (852) 2844-4555

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

1992 1993 1994 1995 1996 Sales 5,844 8,782 11,521 16,202 20,847 IC Sales 4,950 7,550 9,850 13,590 17,870 Net Income 1,067 2,295 2,285 3,566 5,157 R&D Expenditures 780 970 1,111 1,296 1,808 Capital Expenditures 1,228 1,933 2,441 3,550 3,024

Employees 25,800 29,500 32,600 41,600 48,500

Company Overview and Strategy

Intel Corporation was established in 1968 to pursue the potential of integrating large numbers of transistors into silicon chips. The company created the first DRAM, the first EPROM, and the first microprocessor, revolutionizing the electronics industry by making possible small and powerful computing systems. Intel originally flourished as a MOS memory supplier. However, in 1985 Intel abandoned the DRAM business, in favor of microprocessors.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-165 Intel North American Company Profiles

Today, Intel is by far the world's leading supplier of MOS microprocessors. The company's other principal products are microprocessor-related board-level products, core-logic chipsets, embedded processors and microcontrollers, flash memory devices, network and communications products, and conferencing products. Its IC products are sold to manufacturers of computer systems and peripherals, automotive equipment, industrial systems, and telecommunications products.

Flash Memories 5% Systems/

Other 15% Japan 12% Asia-Pacific North America 18% 42% Microcomponents Europe 80% 28%

1996 Sales by Product Group 1996 Sales by Geographic Region

Thanks to strong demand for its microprocessors, Intel grew to become the world's largest semiconductor manufacturer in 1993. Part of Intel's strategy to maintaining momentum and supporting demand for its products is heavy reinvesting with its profits. Since 1991, Intel has invested more in new plants and equipment each year than any other semiconductor company in the world. The company expects to expend approximately $4.5 billion for capital additions in 1997.

Intel believes that communications and multimedia will be decisive areas for the PC industry in the next decade. For this reason, the company continues to introduce new hardware and software products for local area network (LAN) management and personal computer conferencing systems. Intel is also pushing its MMX™ media enhancement technology, which the company says speeds up the execution of multimedia-related functions by routing compute-intensive code to the central processor, rather than through dedicated silicon. The first processors to use the MMX instruction set were introduced in January 1997. Intel’s other chips are expected to gain MMX capability in 1997.

Due to the growth of Pentium microprocessor-based systems, Intel has become a major supplier of core-logic chipsets. The company’s Intel430 PCIset products, designed for desktop and mobile Pentium processors, were the first chipsets to support the Universal Serial Bus (USB) high-performance bus architecture.

In flash memories, Intel has dominated the market essentially from the beginning. However, its share of the market has dropped from 75 percent or more in the early 1990’s to about 44 percent in 1996 as several other players have aggressively pursued the market.

1-166 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Intel

Over the past couple of years Intel has stepped up its strategy of investing in other companies, typically startups, to help facilitate new application software content and hardware. The company investments number in the “hundreds,” and are not limited to chip companies. Companies in which it has recently invested include I/O chip specialist Standard Microsystems Corp.; Avid Technology Inc., which makes digital content-creation products; Case Technology, a Denmark-based company that makes Fast Ethernet products; and Xircom Inc., a PC-Card modem vendor.

Management

Gordon E. Moore Chairman Emeritus Andrew S. Grove Chairman and Chief Executive Officer Craig R. Barrett President and Chief Operating Officer Frank C. Gill Executive Vice President and GM, Internet and Communications Group Paul S. Otellini Executive Vice President and Director, Sales and Marketing Group Gerhard H. Parker Executive Vice President and GM, Technology and Manufacturing Group Leslie L. Vadasz Senior Vice President and Director, Corporate Business Development Ronald J. Whittier Senior Vice President and GM, Content Group Albert Y.C. Yu Senior Vice President and GM, Microprocessor Products Group Michael A. Aymar Vice President and GM, Desktop Products Division Andy D. Bryant Vice President and Chief Financial Officer Louis J. Burns Vice President and Director, Information Technology Dennis L. Carter Vice President and Director, Sales and Marketing Group Sunlin Chou Vice President and Director, Components Technology Development Richard A. DeLateur Vice President, Finance, Intel Architecture Group F. Thomas Dunlap, Jr. Vice President, General Counsel, and Secretary Carlene M. Ellis Vice President and Director, Information Technology Patrick P. Gelsinger Vice President and GM, Desktop Products Group Hans G. Geyer Vice President and GM, European Operations Thomas L. Hogue Vice President and Director, Materials Harold E. Hughes, Jr. Vice President and Director, Planning and Logistics James W. Jarrett President, Intel PRC Corporation Robert T. Jenkins Vice President and Director, Corporate Licensing Patrick S. Jones Vice President, Finance, and Corporate Controller D. Craig Kinnie Vice President and Assistant GM, Internet and Communications Group Michael C. Maibach Vice President, Government Affairs Edward A. Masi Vice President, Enterprise Server Group Avram C. Miller Vice President and Director, Business Development John H.F. Miner Vice President and GM, Enterprise Server Group Patricia Murray Vice President and Director, Human Resources Stephen P. Nachtsheim Vice President and GM, Mobile/Handheld Products Group Robert H. Perlman Vice President, Finance and Director, Tax, Customs, and Licensing Ronald J. Smith Vice President and GM, Computing Enhancement Group Arvind Sodhani Vice President and Treasurer Michael R. Splinter Vice President and Assistant GM, Technology and Manufacturing Group

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-167 Intel North American Company Profiles

Microprocessor Products Group Michael J. Fister Vice President and General Manager, Microprocessor Division 6 Dov Frohman Vice President and General Manager, Israel Operations David Perlmutter Vice President and General Manager, Israel Development Center Stephen L. Smith Vice President and General Manager, Santa Clara Processor Division Robert P. Colwell Director, IA-32 Architecture John H. Crawford Director, Microprocessor Architecture Paul D. Madland Director, Circuit Technology Frederick J. Pollack Director, Measurement, Architecture, and Planning Uri C. Weiser Director, Israel Development Center, Architecture Robert B. Wirt Director, Microcomputer Labs Internet and Communications Group Mark A. Christensen Vice President and General Manager, Network Products Division Kirby A. Dyess Vice President and Director, New Business Development Edward D. Ekstrom Vice President and General Manager, Systems Management Division James B. Johnson Vice President and General Manager, Internet Services Operation Steven D. McGeady Vice President and Director, Strategy Kevin C. Kahn Director, Communications Infrastructure Lab Technology and Manufacturing Group Frank Alvarez Vice President and General Manager, Strategic Components Manufacturing Robert J. Baker Vice President and GM, Microprocessor Components Manufacturing Luther G. Disney Vice President and Director, Corporate Services Youssef A. El-Mansy Vice President and Director, Portland Technology Development Robert M. Jecmen Vice President and Director, California Technology and Manufacturing Bruce H. Leising Vice President and General Manager, Peripheral Components Manufacturing David B. Marsing Vice President and General Manager, Assembly/Test Manufacturing Frank A. McCabe Vice President and General Manager, Ireland Operations Boon Chye Ooi Vice President and General Manager, Systems Manufacturing Jacob A. Peña, Jr. Vice President and General Manager, Philippine Operations John F. Slusser Vice President and Director, Corporate Quality Network William M. Siu Vice President and Director, Assembly Technology Development Kenneth M. Thompson Vice President and GM, Technology Manufacturing Engineering Keith L. Thomson Vice President and Manager, Oregon Site Gregory E. Atwood Director, Flash Memory Architecture Mark T. Bohr Director, Process Architecture and Integration Paolo A. Gargini Director, Technology Strategy Eugene S. Meieran Director, Manufacturing Strategic Support Leo D. Yau Director, Innovative Technology Models Ian A. Young Director, Advanced Circuit and Technology Integration

1-168 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Intel

Desktop Products Group John E. Davies Vice President and Director, Consumer Desktop Marketing William A. Swope Vice President and Director, Business Desktop Marketing James H. Yasso Vice President and General Manager, Reseller Products Division Richard L. Coulson Director, I/O Architecture Peter D. MacWilliams Director, Platform Architecture Computing Enhancement Group William O. Howe Vice President and General Manager, Memory Components Division William B. Pohlman Vice President and General Manager, Central Logic Engineering Sales and Marketing Group Edwin G. Bauer Vice President and Director, Americas Sales and Marketing Nobuyuki Denda Vice President and Executive Vice President, Japan Operations Sean M. Maloney Vice President and General Manager, Asia-Pacific Operations Ikuo Nishioka Vice President and President, Japan Operations Pamela L. Pollace Vice President and Director, Worldwide Press Relations Earl L. Whetstone Vice President and General Manager, European Operations Ellen R. Konar Director, Corporate Strategic Marketing Content Group Claude M. Leglise Vice President and Director, Entertainment/Education Developer Relations

Products and Processes

Intel's principal products are microprocessors, core logic chipsets based on the PCI bus, embedded processors and microcontrollers, flash memory chips, computer modules and boards, network and communications products, personal conferencing products, and scalable parallel processing computers. Some of these products are described in more detail below.

• Microprocessors—Intel's 32-bit microprocessors include the fifth-generation Pentium family and the sixth- generation Pentium Pro family. The company significantly expanded its Pentium family in 1996, introducing new versions operating at 150, 166, and 200MHz. The 120 and 133MHz versions of the Pentium have become the company’s entry-level processors. In January 1997, Intel introduced versions of the Pentium incorporating MMX media enhancement technology, which is said to significantly enhance media-rich and communications applications. Also in early 1997, the company introduced the Intel Mobile Module, an integrated Pentium-based module that plugs into a mobile system’s motherboard. The Mobile Module is thought to be the kick off of Intel’s planned sales shift from processors to processor modules.

The Pentium Pro, which is available in 150MHz, 166MHz, 180MHz, and 200MHz speed grades, makes use of RISC-like techniques that Intel has chosen to call "dynamic execution.” To date, the Pentium Pro has been designed primarily into servers and workstations. In early 1997, Intel named its new Pentium Pro processor with MMX technology the Pentium II processor. Initially, the Pentium II will be targeted at business desktop PC applications.

Intel’s microprocessor products also include OverDrive processors, a family of upgrade MPUs. OverDrive processors allow users to upgrade their Intel486 or older Pentium processors to newer versions of the Pentium (120MHz to 166MHz). A Pentium MMX version will be introduced in 1997.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-169 Intel North American Company Profiles

Intel announced in early 1996 that it would phase out its commercial-grade 486SX2 and DX processor lines by the end of 1997. The company will continue to offer 486SX, DX2, and DX4 MPUs, as well as its new ultra-low- power 486SX, but only for embedded applications.

• Chipsets—Based on the Peripheral Components Interconnect (PCI) bus, Intel’s core-logic chipsets include the Intel430 PCIset family for desktop and mobile Pentium microprocessors and the Intel440 and 450 PCIset families for the Pentium Pro microprocessors.

• Embedded Processors and Microcontrollers—This product group includes the company's i960 family of 32-bit RISC processors, the embedded Intel386 and Intel486 processor families, the 16-bit 80C186 processor family, 8-bit MCS 51 and MCS 251 microcontrollers, and 16-bit MCS 96 microcontrollers. These products are targeted at a variety of applications, such as automobile engine and braking systems, hard disk drives, laser printers, input/output control modules, cellular phones, home appliances, factory automation control products, commercial and military avionics, and medical instrumentation.

On December 24, 1997, Intel will stop taking orders for mil-spec versions of its i960 MPU and i860 DSP products. Intel has said it is exiting the market for military ICs because parts for the commercial market are far more lucrative than mil-spec parts. Other military-grade products to be discontinued include SRAMs, EPROMs, flash memories, and x86 and Pentium processors.

• Flash Memory Chips—Intel continues to be the largest flash memory producer. In early 1996, Intel announced that it was scaling back production of low-density (256K and 512K) flash parts to open up capacity for higher density devices. The company provides a broad line of flash memory devices, with densities ranging from 1M to 32M. Included are the 2.7V High-Integration Boot Block flash devices (1M to 8M) that are targeted at wireless communications applications; the High Performance Fast Flash devices (16M) that have either a synchronous burst-read interface or a DRAM system read interface; the High Value FlashFile™ Memory products (8M to 32M) that are partitioned into independently erasable 64K blocks, making them optimal for partial code updates or file storage applications; and the first-generation bulk erase flash memories (1M and 2M) that were designed for EPROM-type replacement applications.

In April 1997, Intel introduced its newest family of flash memories—the Smart3 Advanced Boot Block family of devices. The new flash architecture, in conjunction with a new software program called Flash Data Integrator (FDI), allows for the storage of both code and data on a single flash IC. Intel expects the Smart3 flash chips will eliminate the need for EEPROMs in cellular phone applications.

Intel uses advanced CMOS and BiCMOS process technologies in the manufacture of its integrated circuits. In 1996, most of Intel’s IC products were manufactured using 0.35µm and 0.4µm process technologies. During 1997, the company will migrate its microprocessor production to the 0.25µm level. At 0.25µm, the company believes it will be able to surpass the 400MHz mark for its MPU speeds. Some of Intel’s products are still manufactured with 0.6µm, 0.8µm, and 1.0µm process technologies.

1-170 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Intel

Semiconductor Fabrication Facilities

Intel Corporation Intel Corporation Ronler Acres 3601 Juliet Lane Hillsboro, Oregon 97007 Santa Clara, California 95050 Telephone: (503) 681-8080 Telephone: (408) 496-9023 Fab D1B Fab D2 Cleanroom size: 70,000 square feet Cleanroom size: 60,000 square feet (Class 1) Capacity (wafers/week): 1,000 (6,250 in 1998) Capacity (wafers/week): 5,000 Wafer size: 200mm Wafer size: 200mm Process: CMOS Processes: CMOS, BiCMOS Products: MPUs, R&D Products: MPUs, flash memories, R&D Feature sizes: 0.18µm, 0.25µm Feature sizes: 0.25µm-0.8µm

Intel Corporation Intel Corporation 2111 Northeast 25th Avenue 5000 West Chandler Boulevard Aloha, Oregon 97124 Chandler, Arizona 85226-3699 Telephone: (503) 681-8080 Telephone: (602) 554-8080 Fab 5 (former Fab D1 R&D fab) Fab 6 Cleanroom size: 10,000 square feet Cleanroom size: 35,000 square feet Capacity (wafers/week): 500 Capacity (wafers/week): 5,375 Wafer size: 150mm Wafer size: 150mm Processes: CMOS Processes: CMOS Products: Logic and memory ICs, MPUs, R&D Products: MPUs, MCUs Feature sizes: 0.6µm, 0.8µm, 1.0µm Feature sizes: 0.8µm, 1.0µm

Intel Corporation Intel Israel, Ltd. 4100 Sara Road SE Jerusalem, Israel Rio Rancho, New Mexico 87124 Fab 8 Telephone: (505) 893-7000 Cleanroom size: 10,000 square feet Fab 7 Capacity (wafers/week): 3,500 Cleanroom size: 60,000 square feet Wafer size: 150mm Capacity (wafers/week): 8,000 Process: CMOS Wafer size: 150mm Products: MPUs, MCUs, logic ICs Process: CMOS Feature sizes: 0.6µm-1.0µm Products: Flash memories Feature sizes: 0.4µm, 0.6µm, 0.8µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-171 Intel North American Company Profiles

Intel Corporation Intel Ireland, Ltd. 4100 Sara Road SE Collinstown Industrial Park Rio Rancho, New Mexico 87124 Leixlip, County Kildare, Ireland Telephone: (505) 893-7000 Telephone: (353) (1) 707-7000 Fab 9 Fab 10 Cleanroom size: 60,000 square feet Cleanroom size: 60,000 square feet (Class 1) Capacity (wafers/week): 7,000 Capacity (wafers/week): 6,000 Wafer size: 150mm Wafer size: 200mm Process: CMOS Process: BiCMOS Products: Flash memories Products: MPUs Feature sizes: 0.4µm, 0.6µm Feature size: 0.6µm

Intel Corporation Intel Corporation 4100 Sara Road SE Chandler, Arizona Rio Rancho, New Mexico Fab 12 Telephone: (505) 893-7000 Cleanroom size: 160,000 square feet (Class 1) Fab 11 Capacity (wafers/week): 12,000 Cleanroom size: 185,000 square feet (Class 1) Wafer size: 200mm Capacity (wafers/week): 10,000 Processes: CMOS, BiCMOS Wafer size: 200mm Products: MPUs Processes: BiCMOS, CMOS Feature size: 0.35µm (0.25µm capable) Products: MPUs, logic ICs Feature sizes: 0.35µm-0.6µm

Intel Ireland, Ltd. Intel Corporation Collinstown Industrial Park 3585 Southwest 98th Avenue Leixlip, County Kildare, Ireland Aloha, Oregon 97007 Telephone: (353) (1) 707-7000 Telephone: (503) 681-8080 Fab 14 (Startup in 1998) Fab 15 (former D1A R&D fab) Cleanroom size: 75,000 square feet (Class 1) Cleanroom size: 20,000 square feet Capacity (wafers/week): 7,000 Capacity (wafers/week): 3,225 Wafer size: 200mm Wafer size: 200mm Processes: CMOS, BiCMOS Process: CMOS Products: MPUs Products: MPUs Feature size: 0.25µm (0.18µm capable) Feature sizes: 0.35µm-0.6µm

Intel Corporation Intel Israel, Ltd. Fort Worth, Texas Kiryat Gat, Israel Fab 16 (Startup in 1999) Fab 18 (Startup in 1998) Cleanroom size: 75,000 square feet Cleanroom size: 86,000 square feet (Class 1) Wafer size: 200mm Capacity (wafers/week): 7,500 Process: CMOS Wafer size: 200mm Products: MPUs Process: CMOS Feature sizes: 0.18µm, 0.25µm Products: Flash memories Feature sizes: 0.25µm, 0.4µm

1-172 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Intel

The majority of Intel’s semiconductor assembly and testing takes place at the company’s facilities in Penang, Malaysia, and Manila, the Philippines. Some assembly and testing is performed in the U.S. In addition, the company is building new assembly and test factories in Shanghai, China, and San Jose, Costa Rica, both scheduled for completion in 1998.

Key Agreements

• Moving to ensure itself a steady supply of high-density DRAMs, Intel in early 1997 purchased an equity stake in Samsung’s new $1.3 billion fab in Austin, Texas. The fab is expected to begin production of 64M DRAMs in late 1997 or early 1998. Separately, Intel has made a move to back Rambus Technology in the development of very-high bandwidth Direct Rambus DRAMs. Intel has been given the option to purchase $10 million worth of Rambus stock after the technology for Direct RDRAMs, which will link directly to Intel’s chipsets, is developed.

• Integrated Silicon Solution Inc. (ISSI) licensed flash memory-related patents from Intel in early 1996.

• Intel and AMD signed a five-year patent cross-licensing agreement near the end of 1995 giving the two companies rights to use each other’s MPU-related patents and certain copyrights—excluding microprocessor code. AMD agreed not to use Intel microcode beyond the 486 MPU generation.

• In October 1995, Intel and flash memory card maker SanDisk agreed to cross-license the full inventory of their respective flash memory patent portfolios. The deal does not include a physical exchange of technology.

• Micron signed a cross-licensing agreement with Intel in 1995 covering flash memory ICs, making Micron a true alternate source for Intel’s flash devices.

• Intel and Hewlett-Packard announced a wide ranging joint research and development alliance in 1994 under which the partners are seeking to design a superior next-generation 64-bit microprocessor by 1999, a year later than originally planned. The processor will be binary-compatible with both Intel x86 code and HP PA-RISC code. As part of a separate agreement made in November 1996, Intel and HP are codeveloping computer encryption chips for use in PCMCIA cards.

• In 1992, Intel and Sharp signed an agreement to develop their flash memory business jointly. Sharp is currently shipping Intel's 32M and smaller flash devices on an OEM basis, and the two firms have developed parts that Sharp markets under its own brand name. In 1995, Sharp was able to expand into the lucrative U.S. market after its initial licensing agreement with Intel, which restricted it to the flash market in Japan, expired.

• Intel and Philips extended a patent cross-license agreement they made in 1977 to include all of each other's semiconductor devices except certain proprietary Intel MPUs and Philips video products. The agreement is now valid until the year 2000.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-173 Interdesign North American Company Profiles

INTERDESIGN

Interdesign Custom Arrays Corporation 525 Del Ray Avenue Sunnyvale, California 94086-3515 Telephone: (408) 749-1166 Fax: (408) 749-1718

Fabless IC Supplier

Company Overview and Strategy

Founded in 1984, Interdesign is a member of the ELEX Group of companies headquartered in Belgium. Through its association with ELEX, Interdesign offers mixed-signal CMOS custom and standard cell ASICs in addition to its own MM and MV bipolar arrays.

The ELEX Group also has a wafer foundry, X-FAB, located in Germany with technologies that include N-well and P- well CMOS, vertical DMOS, MOS analog to 40V, and micro sensors. Foundry services are available to U.S. semiconductor and sensor companies, through Interdesign acting as an interface between the foundry and the customers.

"Interdesign" has been registered as a trademark and the company has commenced doing business as Interdesign.

Management

Robert W. Townley President William H. Hass Vice President, Finance

Products and Processes

Interdesign supplies mixed-signal CMOS ASICs, both custom and standard cell.

Semiconductor Fabrication Facilities

Interdesign occupies an 8,000-square-foot facility devoted to assembly, test, and engineering.

1-174 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles International Rectifier

INTERNATIONAL RECTIFIER (IR)

International Rectifier Corporation 233 Kansas Street El Segundo, California 90245 Telephone: (310) 322-3331 Fax: (310) 322-3332 Web Site: www.irf.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: International Rectifier Far East Co., Ltd. • Toshima-ku, Tokyo, Japan Telephone: (81) (3) 3983-0641 • Fax: (81) (3) 3983-0642

Europe: International Rectifier Company (Great Britain) Ltd. • Oxted, Surrey, United Kingdom Telephone: (44) (1883) 713215 • Fax: (44) (1883) 714234

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

1992 1993 1994 1995 1996 Sales 265 282 329 429 577 IC Sales* 15 17 22 29 40 Net Income 9 (3) 16 39 66 R&D Expenditures 9 14 16 20 27 Capital Expenditures 35 17 25 107 112

Employees 3,000 2,700 3,100 3,310 3,915

*Calendar year

Company Overview and Strategy

International Rectifier (IR) was founded in 1947 and is today a major worldwide manufacturer of power semiconductors with applications in the automotive, consumer electronics, computer/peripheral, industrial, lighting, telecommunications, and government/space markets.

The company's growth products recently have been HEXFET® power MOSFETs, insulated gate bipolar transistors (IGBTs), control ICs, and high-performance diodes. In control ICs, new development efforts concentrate on devices tailored to specific applications. New control ICs are tuned to specific power levels, features, and circuit topologies in motor control, lighting, and power supply applications. During 1996, IR’s focus was in the area of “solution” products that combine multiple components and technologies to benefit the customers’ overall circuit size, cost, and performance.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-175 International Rectifier North American Company Profiles

Asia 26% North America 46% Europe 28%

1996 Sales by Geographic Region

Management

Eric Lidow Chairman and Founder Alexander Lidow Chief Executive Officer Derek B. Lidow Chief Executive Officer Robert J. Mueller Executive Vice President, External Affairs and Business Development Michael P. McGee Vice President and Chief Financial Officer

Products and Processes

IR manufactures power semiconductors, including HEXFET power MOSFETs, IGBTs, high-voltage control ICs, diodes, rectifiers, thyristors, and standard and custom power modules.

IR’s high-voltage control ICs combine power MOSFETs with analog and digital control circuitry on a single chip. They are used in a wide variety of power supply, motor, and lighting control applications, including motor controls, solenoid drivers, welding equipment, telecom switches, computer peripherals, instrumentation and test equipment, electronic lighting ballasts, and compact fluorescent light bulbs.

In late 1995, IR introduced its next-generation manufacturing technology, a four-step mask, low-voltage process called Gen5. By the end of fiscal 1996, IR had over 200 Gen5 HEXFET devices in volume production.

Semiconductor Fabrication Facilities

International Rectifier International Rectifier (HEXFET America) 233 Kansas Street 41915 Business Park Drive El Segundo, California 90245 Temecula, California 92390 Telephone: (310) 322-3331 Telephone: (714) 676-7500 Capacity (wafers/week): 3,250 Cleanroom size: 45,000 square feet Wafer size: 100mm Capacity (wafers/week): 13,100 Processes: CMOS, BCDMOS Wafer sizes: 125mm, 150mm Products: Discretes, power ICs Processes: CMOS, BCDMOS Feature size: 5.0µm Products: Discretes, power ICs Feature sizes: 1.0µm-5.0µm

1-176 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles International Rectifier

International Rectifier Italiana, S.p.A. Via Privata Liguria 49 10071 Borgoro, Turin, Italy Telephone: (39) (11) 470-14-84 Capacity (wafers/week): 6,250 Wafer size: 100mm Products: Discretes

Key Agreements

• International Rectifier signed a cross-licensing and alternate-source agreement with Motorola covering power ICs and power discretes.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-177 ISD North American Company Profiles

INFORMATION STORAGE DEVICES (ISD)

Information Storage Devices, Inc. 2045 Hamilton Avenue San Jose, California 95125 Telephone: (408) 369-2400 Fax: (408) 369-2422 Web Site: www.isd.com

Fabless IC Supplier

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

1992 1993 1994 1995 1996 Sales 5 23 39 55 41 Net Income (3) — 4 6 (9) R&D Expenditures 123712

Employees 70 122 134

Company Overview and Strategy

Information Storage Devices, Inc. (ISD), designs, develops, and markets integrated circuits for voice recording and playback using the company’s proprietary ChipCorder™ storage technology. The company’s ChipCorder products are targeted at the consumer, communications, and industrial market segments.

In 1991, ISD introduced its first commercially available products—non-volatile chips that store analog signals in analog form. From its inception in December 1987, ISD's charter has been to develop such devices for storage of voice, music, and other forms of analog information on a single chip.

In early 1997, ISD purchased National’s CompactSpeech processor product line. The purchase enables ISD to add long duration record and playback chips to its ChipCorder product line. The CompactSpeech product line includes a family of RISC-based speech processors that feature advanced DSP technology designed for voice applications in the communications market.

ISD's storage technology is adaptable to a variety of small form factor applications, such as hand-held products, alarms, answering machines, cellular phones, greeting cards, and implantable medical devices. The firm's original chips were capable of storing up to 20 seconds of information. However, ISD’s newest devices are able to store up to four minutes of information. The company has received twelve patents with several others pending. ISD became a public company in February 1995.

1-178 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles ISD

Industrial 7%

Europe 11% Consumer 21% United States Asia 35% 54% Communications 72%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

Management

David L. Angel Chairman and Chief Executive Officer Eric J. Ochiltree President and Chief Operating Officer James Brennan Vice President, Technology and Development Michael Geilhufe Vice President, Quality and Reliability Paul Ross Hayden Vice President, Sales Carl R. Palmer Vice President, Engineering Felix J. Rosengarten Vice President, Finance and Administration, and Chief Financial Officer Al Woodhull Vice President, Manufacturing Karin Bootsma Managing Director, Marketing

Products and Processes

ISD's ChipCorder™ products are solid-state memory devices based on flash technology that store analog signals in a multilevel format. The company currently offers six product families incorporating its ChipCoder technology. All of the company’s ChipCoder products feature an on-chip oscillator, microphone preamplifier, automatic gain control, anti-aliasing filter, smoothing filter, and speaker amplifier. The devices are being built using 0.8µm CMOS technology.

Its most recent product family, the 33000 series is based on the company’s multilevel storage methodology that stores 256 distinct voltage levels in each memory cell. The series operates at 3 volts and extends voice storage capacity up to four minutes, making it possible to have an answering machine built into a digital or analog cellular phone.

Semiconductor Fabrication Facilities

ISD currently has foundry agreements with Rohm, Sanyo, and Samsung.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-179 IXYS North American Company Profiles

IXYS

IXYS Corporation 3540 Bassett Street Santa Clara, California 95054 Telephone: (408) 435-1900 Fax: (408) 435-0670 Web Site: www.ixys.com

Fabless IC Supplier

Company Overview and Strategy

IXYS Corporation designs, develops, and markets a broad spectrum of power semiconductors, integrated circuits, and modules for the global power market. IXYS products are incorporated into various industrial, commercial, and military systems.

Founded in 1983, IXYS has been an innovator in power MOS semiconductor products and technologies since its inception. However, it has differentiated itself by focusing on the higher voltage and higher power end of the MOSFET and IGBT spectrum. The company's strategy is to provide cost-effective systems solutions for its target markets. To that end, it provides several lines of low-cost chipsets for various applications.

In April 1989, IXYS acquired the Asea Brown Boveri (ABB) power semiconductor operation in Lampertheim, Germany. Now called IXYS Semiconductor GmbH, the firm is recognized for pioneering direct copper bonding-to- ceramic packaging technology and provides IXYS with a strong foothold in the European market.

Management

Nathan Zommer, Ph.D. President and Chief Executive Officer Peter Ingram Managing Director, IXYS Semiconductor GmbH Arnold Agbayani Vice President, Finance Rich Fassler Vice President, Sales and Marketing

Products and Processes

The IGBT discrete and IGBT module product lines are the company's flagship products. They are targeted at the AC motor drive market first and at electric vehicles for the long-term market.

1-180 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles IXYS

IXYS's key product lines include:

Modules • IGBT modules • High current thyristor and rectifier modules • Rectifier bridges • Custom (customer-specific) power modules

Discretes • Ultra-fast and short circuit-rated IGBTs • MegaMOSFET™ devices • HiPer FET™ power MOSFETs • High-voltage BiMOSFET™ devices • Ultra-fast recovery epitaxial diodes (FREDs) • High-current rectifiers and switching current regulators • High-power thyristors and rectifiers

Smart Power ICs • High-voltage current regulators • Half-bridge (high side/low side) smart power ICs • Pulse width modulation controllers

Direct Copper Bond (DCB) Ceramic Substrates

For the design of its products, IXYS uses a proprietary HDMOS (high performance DMOS) technology, which is compatible with standard bulk CMOS.

Semiconductor Fabrication Facilities

The company’s semiconductor products are fabricated in external wafer fabrication facilities through technology and foundry relationships with a number of semiconductor companies throughout the world.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-181 Lansdale Semiconductor North American Company Profiles

LANSDALE SEMICONDUCTOR

Lansdale Semiconductor, Inc. 2502 West Huntington Drive Tempe, Arizona 85282 Telephone: (602) 438-0123 Fax: (602) 438-0138 Web Site: ssi.syspac.com/~lansdale

IC Manufacturer

Employees 50

Company Overview and Strategy

Founded in 1964, Lansdale Semiconductor is a semiconductor life cycle extender dedicated to manufacturing past and present technologies as long as the market requires them. The privately-held company is a strategic resource for critical military programs, telecommunications systems, and semiconductor OEMs wishing to offer their products longer than the normal lifecycle dictates.

The company purchases lines as they are discontinued by large semiconductor companies such as Intel, Signetics, Harris, National, and Motorola. It actively seeks new product licenses from semiconductor manufacturers as part of its niche strategy and supports OEM semiconductor companies by manufacturing wafers on a foundry basis to extend their product lifecycles.

Military weapons systems typically operate for approximately 25 years while the commercial lifecycle of a semiconductor chip is about seven years. Lansdale manufactures and supports these products on a continuing basis making it possible to extend the lifecycles of the system and its products.

Management

R. Dale Lillard Owner and President

Products and Processes

Lansdale's current product lines (about 2,600 parts) include NMOS 8-bit MPUs and bipolar general purpose logic, MPU, SRAM, PROM, and linear ICs, as well as bipolar full custom devices.

1-182 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Lansdale Semiconductor

Original Manufacturer Product Line AMD Digital Bipolar ICs Raytheon DTL 200 Series ICs Signetics DTL, TTL ICs, 54LS, 82S, 54S, 54H, LSI, 8X Motorola SUHL ICs, 5400 TTL, 3000 TTL, 900 DTE, RTL, Linear Harris 0512 Bipolar PROMs, 7600 Bipolar PROMs/Diode Matrices National PMOS ICs Intel 8080A and peripherals, 828x Peripherals

Semiconductor Fabrication Facilities

Lansdale Semiconductor, Inc. 2502 West Huntington Drive Tempe, Arizona 85282 Cleanroom size: 10,000 square feet (Class 100) Capacity (wafers/week): 2,000 Wafer sizes: 100mm, 3in Processes: Bipolar, LS, Linear, TTL Products: Foundry service, bipolar ICs Feature size: 3µm, two-layer metal

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-183 Lattice Semiconductor North American Company Profiles

LATTICE SEMICONDUCTOR

Lattice Semiconductor Corporation 5555 Northeast Moore Court Hillsboro, Oregon 97124-6421 Telephone: (503) 681-0118 Fax: (503) 681-0347 Web Site: www.latticesemi.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Lattice Semiconductor K.K. • Taito-ku, Tokyo, Japan Telephone: (81) (3) 5820-3533 • Fax: (81) (3) 5820-3531

Europe: Lattice Semiconductor Ltd. • Waybridge, Surrey, United Kingdom Telephone: (44) (1932) 831180 • Fax: (44) (1932) 831181

Asia-Pacific: Lattice Semiconductor Asia, Ltd. • Kowloon, Hong Kong Telephone: (852) 2319-2929 • Fax: (852) 2319-2750

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

1993 1994 1995 1996 1997 Sales 103 126 144 198 204 Net Income 17 22 27 42 45 R&D Expenditures 17 21 23 27 28

Employees 352 394 438 450 500

Company Overview and Strategy

Lattice Semiconductor, founded in 1983, is a leader in the design, development, and marketing of high-density and low-density programmable logic devices (PLDs) and related software development systems. Its proprietary Generic Array Logic (GAL®), pLSI®, and ispLSI® devices are sold worldwide, primarily to OEMs in the fields of communications, industrial control, and military systems. In 1992, the company pioneered the development of a family of in-system programmable products called Lattice ISP. Lattice ISP products give customers the ability to program a PLD without removing it from the circuit board, subsequently increasing the PLD’s flexibility. ISP products have emerged as the de facto standard in the high density PLD market.

1-184 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Lattice Semiconductor

Lattice's strategy is to offer a full line of high-performance in-system programmable devices based on innovative architectures. The company supports its products with sophisticated logic development tools providing high functionality at low cost that can be easily adopted and fully integrated with common third-party CAE development systems.

International sales represented 48 percent of the company’s total sales in fiscal 1996.

Management

Cyrus Y. Tsui Chairman, President, and Chief Executive Officer Steven A. Laub Senior Vice President and Chief Operating Officer Steven A. Skaggs Senior Vice President, Chief Financial Officer, and Secretary Jonathan K. Yu Corporate Vice President, Business Development Martin R. Baker Vice President and General Counsel Randy D. Baker Vice President, Manufacturing Albert L. Chan Vice President, California Product Development Stephen M. Donovan Vice President, International Sales Paul T. Kollar Vice President, Sales Rodney F. Sloss Vice President, Finance Kenneth K. Yu Vice President and Managing Director, Lattice Asia

Products and Processes

Lattice entered the high-density complex PLD (CPLD) market in 1992 and currently offers four families of ispLSI® products. The ispLSI 1000E family incorporates familiar GAL-like logic building blocks and offers performance up to 125MHz (7.5ns) and densities of 2,000 to 8,000 gates. The ispLSI 2000 family provides speeds of up to 180MHz (5.0ns) and 3.3V and 5V operating voltages. The ispLSI 3000 family offers densities of 7,000 to 14,000 gates, while retaining performance up to 125MHz (7.5ns). The ispLSI 6000 family extends the company’s CPLD density range to 25,000 gates and enables integration of complete logic subsystems. The family utilizes an innovative cell-based architecture that combines a general-purpose high-density CPLD with memory and other function specific circuit blocks.

Lattice offers one of the industry’s high performance and broadest line of low density CMOS PLDs. The company sells the industry standard GAL16V8, GAL20V8, GAL22V10, GAL20RA10, and GAL20XV10 architectures in a variety of speed grades (as fast as 3.5ns), with 5V or 3.3V signal compatibility. Lattice also offers several proprietary architectures, the GAL26CV12, GAL18V10, GAL16VP8, GAL20VP8, and GAL6001/2, each of which is optimized for specific applications. In 1994, the company extended its GAL line by introducing the ispGAL22V10, bringing the advantages of in-system programmability to the low density market.

In April 1997, Lattice unveiled its ispGDX™ product family designed primarily for routing applications. According to the company there is no control logic on the chips, allowing them to operate faster than conventional PLDs. The family includes four devices with 64, 80, 120, and 160 programmable I/Os, with input-to-output delays of 5ns, clock-to-output delays of 5ns, and operating frequencies of 111MHz.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-185 Lattice Semiconductor North American Company Profiles

Lattice also offers its ispGDS™ (Generic Digital Switch) family of in-system programmable switching matrices targeted at mechanical dip switch replacement and connectivity applications.

The company's products are based on a proprietary EECMOS process technology, called UltraMOS®. The current mainstream processes, UltraMOS V (0.65µm) and UltraMOS VI (0.5µm) are advanced double-metal CMOS technologies.

Semiconductor Fabrication Facilities

Most Lattice Semiconductor products are produced by Seiko Epson in Japan. In 1994, Lattice advanced to Seiko Epson $42 million for the expansion of Seiko’s submicron wafer fab in Sakata, Japan. The investment will provide Lattice with additional submicron manufacturing capacity through 1997. The foundry relationship between Lattice and Seiko Epson was further strengthened in early 1997. As part of their latest agreement, Lattice agreed to invest up to $150 million in Seiko Epson’s Sakata, Japan, wafer fab facility in exchange for a production line dedicated to Lattice.

Lattice added Taiwan’s United Microelectronics Corporation (UMC) as a foundry partner in 1995. In October 1995, Lattice said it would invest $60 million over a two and a half year period for a 10 percent equity stake in one of UMC’s joint-venture fabs that will come on-line in mid-1997. Additionally, UMC agreed to provide Lattice with interim wafer capacity from one of its existing fabs.

In December 1996, Lattice secured additional future capacity by signing a foundry and technology development agreement with Taiwan-based Holtek Microelectronics (see Key Agreements below).

Key Agreements

• Lattice signed a foundry and technology agreement with Holtek Microelectronics in December 1996. Under the agreement, Lattice will make an equity investment in Holtek’s 200mm wafer facility that is currently under construction in Taiwan. In return, Holtek will provide Lattice with foundry capacity from the facility, which is expected to be operational by January 1998. Additionally, Holtek plans to develop non-volatile memory products for Lattice.

• Lattice entered into a joint venture with UMC and other US-based fabless IC companies. Lattice will invest $60 million to gain a 10 percent equity stake in a new joint-venture wafer fab UMC is building in Taiwan. The joint venture fab, called United Integrated Circuits Corporation (UICC), was expected to begin production in mid- 1997.

• In 1994, Lattice signed a production agreement with Seiko Epson. As part of the agreement, Lattice advanced Seiko $42 million to finance additional submicron wafer capacity at its fab in Sakata, Japan. In 1995, Lattice invested an additional $2 million for the development of submicron process technology. In early 1997, Lattice signed an agreement to advance up to $150 million to Seiko Epson, in return for a dedicated production line in Seiko Epson’s Sakata wafer fab that was expected to begin production in mid-1997.

• Lattice has a cross-licensing agreement with AMD under which patents for AMD's PALs have been exchanged for Lattice's GAL patents.

1-186 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Level One Communications

LEVEL ONE COMMUNICATIONS

Level One Communications Inc. 9750 Goethe Road Sacramento, California 95827 Telephone: (916) 855-5000 Fax: (916) 854-1101 Web Site: www.level1.com

Fabless IC Supplier

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

1992 1993 1994 1995 1996 Sales 14 26 47 78 112 Net Income 2 4 8 10 13 R&D Expenditures 3 6 10 17 22

Employees 70 139 221 300 408

Company Overview and Strategy

Level One Communications, Inc., founded in 1985, is a leading supplier of silicon connectivity solutions for complex mixed-signal communications and networking applications. The company name “Level One” refers to the company’s initial focus on the physical layer, “layer one”, of the seven layer network model developed by the International Standards Organization (ISO).

The company specializes in the development of ASSPs and custom derivatives, such as transceivers, repeaters, and related devices used in two key areas of the telecommunications and data communications industry: interface solutions for digital transmission systems; and local and wide area networking (LAN/WAN) solutions, including Ethernet LAN, datacom, and digital modems. Most of Level One’s ICs feature complex functions incorporated on a single silicon chip for applications formerly requiring multiple chips.

In June 1995, the company acquired San Francisco Telecom, which operates as a wholly owned subsidiary and develops products for the Sonet/SDH, wireless, and cable modem communications markets. In 4Q96, Level One acquired Silicon Design Experts Inc. (SDE) to accelerate its development of Gigabit Ethernet and xDSL products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-187 Level One Communications North American Company Profiles

Management

Robert D. Pepper, Ph.D. Chairman, President, and Chief Executive Officer J. Francois Crepin Vice President, Business Development John Kehoe Vice President, Finance and Chief Financial Officer Daniel S. Koellen Vice President, Quality and Reliability Assurance Manuel Yuen Vice President, Operations

Products and Processes

Level One’s semiconductor products include T1/E1 transceivers, receivers, repeaters, and clock adapters; digital subscriber line (DSL) chipsets; PDM multiplexers; and Ethernet transceivers and repeaters.

Semiconductor Fabrication Facilities

Level One utilizes several foundries in the U.S., Europe, and the Far East for the fabrication of its ICs, but does all its chip testing in-house.

Key Agreements

• In 1995, Level One entered into a technology agreement with Maker Communications Inc. for the development of asynchronous transfer mode (ATM) products.

1-188 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Linear Systems

LINEAR SYSTEMS

Linear Integrated Systems, Inc. 4042 Clipper Court Fremont, California 94538 Telephone: (510) 490-9160 Fax: (510) 353-0261

Fabless IC Supplier

Company Overview and Strategy

Linear Integrated Systems (LIS), a.k.a. Linear Systems, was formed in 1987 with the goal of establishing a market niche by taking advantage of refractory-metal interconnect technology. Most firms have stayed away from refractory metals and instead prefer to use CVD and silicon-gate technologies.

Linear Systems specializes in developing integrated circuits for applications in systems where obsolete devices or processes are no longer available or require upgrading. Existing IC products include operational amplifiers, voltage references, and multiplexers. Besides proprietary products, Linear Systems also supplies a broad range of second source and obsolete devices manufactured to customer's requirements.

In addition to semiconductor design and custom manufacturing services, state-of-the-art precision thin-film services are also offered.

Management

John H. Hall President Don Howland Manager, Eastern U.S. Marketing Paul Norton Manager, Western U.S. Marketing

Products and Processes

Linear Systems’ proprietary product line includes bipolar linear ICs (e.g., amplifiers, voltage references, multiplexers) and discretes, as well as full custom bipolar, CMOS, and BiCMOS ICs.

Using CMOS, bipolar, and dielectric isolation processes, Linear Systems offers a family of second-source products including multiplexers, monolithic dual N-channel JFETs, monolithic dual PNPs and NPNs, switches, and amplifiers.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-189 Linear Technology North American Company Profiles

LINEAR TECHNOLOGY

Linear Technology Corporation 1630 McCarthy Boulevard Milpitas, California 95035-7487 Telephone: (408) 432-1900 Fax: (408) 434-0507 Web Site: www.linear-tech.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Linear Technology K.K. • Shinjuku-ku, Tokyo, Japan Telephone: (81) (3) 3267-7891 • Fax: (81) (3) 3267-8570

Europe: Linear Technology SARL • Chantenay Malabry, France Telephone: (33) (1) 41-07-95-55 • Fax: (33) (1) 46-31-46-13

Asia-Pacific: Linear Technology Pte., Ltd. • Singapore Telephone: (65) 753-2692 • Fax: (65) 754-4133

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

1992 1993 1994 1995 1996 Sales 119 151 201 265 378 Net Income 25 36 57 85 134 R&D Expenditures 12 10 9 9 8 Capital Expenditures 10 8 16 22 70

Employees 800 870 1,000 1,350 1,650

Company Overview and Strategy

Linear Technology Corporation (LTC) was founded in 1981 to design, manufacture, and market a broad line of high-performance standard linear integrated circuits. Its devices monitor, condition, amplify, or transform continuous analog signals associated with such physical properties as temperature, pressure, weight, position, light, sound, or speed.

The company targets its product and marketing efforts toward the high-performance segments of the linear circuit market. Applications for its products include telecommunications; notebook and desktop computers; video/multimedia; computer peripherals; cellular telephones; industrial, automotive and process controls; network and factory automation products; and satellites.

1-190 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Linear Technology

Other 13% Japan 16% U.S. 48% Europe 23%

1996 Sales By Geographic Region

Management

Robert H. Swanson, Jr. President and Chief Executive Officer Paul Chantalat Vice President, Quality, Reliability, and Service Paul Coghlan Vice President, Finance, and Chief Financial Officer Timothy D. Cox Vice President, North American Sales Clive B. Davies, Ph.D. Vice President and Chief Operating Officer Robert C. Dobkin Vice President, Design and Engineering Sean T. Hurley Vice President, Operations Louis Di Nardo Vice President, Marketing Hans J. Zapf Vice President, International Sales

Products and Processes

Linear Technology products include: operational, instrumentation, and audio amplifiers; voltage regulators, power management devices, references, comparators, and data converters; switched-capacitor filters; communications interface circuits; single-chip data acquisition sub-systems; pulse width modulators; and sample-and-hold devices. The company markets approximately 5,000 finished part types, of which more than 80 percent are proprietary.

Linear Technology uses a variety of process technologies in the design and fabrication of its chips, including standard bipolar, CMOS, BiCMOS, and complementary bipolar, as well as thin-film and laser trimming technologies.

Semiconductor Fabrication Facilities

Linear Technology Corporation Linear Technology Corporation 1630 McCarthy Boulevard Camas, Washington Milpitas, California 95035-7487 Fab 3 Fabs 1 and 2 Capacity (wafers/week): 2,500 Cleanroom size: 170,000 square feet Wafer size: 150mm Capacity (wafers/week): 4,500 Processes: CMOS, bipolar Wafer size: 100mm Products: Linear ICs Processes: CMOS, BiCMOS, bipolar Feature sizes: ≤2.0µm Products: Linear ICs (Began production in early 1997.) Feature sizes: 2.0µm-3.0µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-191 Linfinity Microelectronics North American Company Profiles

LINFINITY MICROELECTRONICS

Linfinity Microelectronics Inc. 11861 Western Avenue Garden Grove, California 92641-2119 Telephone: (714) 898-8121 Fax: (714) 898-2781

IC Manufacturer

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

1992 1993 1994 1995 1996 Corporate Sales 69 88 98 103 106 Net Income 2 6 7 10 7

Semiconductor Sales 27 31 39 40 38 Capital Expenditures 12255

Company Overview and Strategy

Linfinity Microelectronics Inc. (LMI) is a wholly owned subsidiary of Symmetricom, Inc. (formerly Silicon General, Inc.). It was founded in 1968 as Silicon General Semiconductors and adopted its current name in 1993. LMI designs, manufactures, and markets linear bipolar, CMOS, and BiCMOS integrated circuits for industrial, commercial, automotive, and military applications. Linfinity's special area of expertise is in power management with an emphasis on mixed-signal technology. Sales from power supply products, represented over 50 percent of total sales in fiscal 1996.

The company is expanding the value-added products and services it currently provides for power supply systems, while adding product lines to serve new areas such as signal conditioning and motion control systems. The company currently offers about 400 standard products.

Management

James Peterson President (acting) Ralph Brandi Vice President, Sales Shufan Chan Vice President, Development Mark Granahan Vice President, Marketing James Hartman Vice President, Manufacturing

1-192 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Linfinity Microelectronics

Products and Processes

Linfinity's products generally address four main markets: power supply systems, motion control, analog signal conditioning, and data communications.

Power Supply Linfinity is a leading supplier of a wide variety of power management products, including pulse width modulators (PWMs), voltage regulators, supervisory circuits, and power factor conversion chips. Typical applications for these products include desktop and portable computers, portable communications equipment, video monitors, automotive entertainment, HVAC products, satellites, and lighting. The new product focus in this area includes controllers, linear regulators, DC-DC converters, FET drivers, and voltage supervisors.

Motion Control Linfinity makes two kinds of motion control integrated circuits: one that controls the spin motor in computer disk drives and another that controls the position of the read-write head. The new product focus in this area includes sensorless spindle controllers, voice coil controllers, and brushless DC motor controllers.

Analog Signal Conditioning Linfinity's signal conditioning circuits include operational amplifiers, comparators, and voltage references. Typical applications include instrumentation, industrial controls, telecommunications, and audio equipment.

Data Communications A relatively new product area for Linfinity, the company’s data communications ICs include small computer systems interface products and high speed, parallel communications buses, which permit high data transfer rates between computers and various peripheral devices.

Linfinity uses a wide range of process technologies that address linear and mixed-signal product requirements.

Bipolar Two main process flows are available in this technology. Option A provides a rugged, high-voltage (60V), high-power process for applications such as off-line power supplies and motor drivers. Option B provides a high-performance, low-voltage (20V) process for applications in high-speed, low-noise signal conditioning equipment.

CMOS Exhibiting all the characteristics of a good analog CMOS process it provides 18V MOS transistors coupled with high density 3.0µm feature sizes for optimal packing density. Limited logic capability is available at this feature size.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-193 Linfinity Microelectronics North American Company Profiles

BiCMOS The BiCMOS process combines the Option B bipolar and CMOS processes into a single flow. The process is idealized for mixed-signal applications requiring excellent analog performance in conjunction with logic capability. A double-level metal option is available for optimum packing density. Applications include power supply controllers and high-performance disk drive motor controllers.

Semiconductor Fabrication Facilities

Linfinity Microelectronics Inc. 11861 Western Avenue Garden Grove, California 92641 Capacity (wafers/week): 1,700 Wafer size: 100mm Processes: Bipolar, CMOS, BiCMOS Products: Linear ICs, ASICs Feature size: 3.0µm

1-194 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Logic Devices

LOGIC DEVICES

Logic Devices Incorporated 1320 Orleans Drive Sunnyvale, California 94089 Telephone: (408) 542-5400 Fax: (408) 542-0080 Web Site: www.logicdevices.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Logic Devices Incorporated • Warminster, Wiltshire, United Kingdom Telephone: (44) (1985) 218699

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

1992 1993 1994 1995 1996 Sales 12 13 13 17 13 Net Income 0.1 0.3 1 1 1 R&D Expenditures 11111

Employees 61 49 44 49 58

Company Overview and Strategy

Logic Devices Incorporated was founded in 1983. It develops and markets high-performance digital integrated circuits for applications requiring high operating speeds and low operating power. Such applications include computers, workstations, video image processing, medical instrumentation, telecommunications, and military signal processing.

Logic Devices was founded as a supplier of building-block DSPs, but later entered the growing 1989 SRAM market. It was driven from the SRAM market in 1992 due to cost and quality problems with its then supplier of SRAM wafers. Sales of the company’s SRAM products rebounded in 1994 and 1995, but then suffered price erosion during 1996. SRAM products fell from representing 45 percent of the company’s sales in 1995 to 14 percent in 1996. While the company plans to remain a player in fast SRAMs and other niche SRAM markets, it has also placed a greater emphasis on DSP devices, which grew to represent 86 percent of sales in 1996, up from 55 percent in 1995.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-195 Logic Devices North American Company Profiles

Far East SRAMs 8% 14% Europe 19%

DSP Devices North America 86% 73%

1996 Sales by Device Type 1996 Sales by Geographic Region

In April 1995, Logic Devices acquired Star Semiconductor, which developed the Sproc programmable digital signal processor architecture. The Sproc architecture enables multiple processors to efficiently share data via a common memory array, resulting in high processing throughput.

Research efforts during 1997 will focus on DSP circuits to address broadcast, studio, and audio and video image processing applications, and new products utilizing the company’s SRAM technology.

Management

Howard L. Farkas Chairman William J. Volz President Todd J. Ashford Chief Financial Officer Anthony G. Bell Vice President, Technology William L. Jackson Vice President, Manufacturing

Products and Processes

High-speed, low-power CMOS SRAMs and DSP circuits are Logic Devices' principal product lines. Its DSPs primarily target video editing, broadcast special effects, and studio production applications, where lossless manipulation of very high bandwidth data is required. The company also offers specialty memories, register products, and high-performance CMOS SCSI controllers.

Ultrafast SRAM Fast Logic Specialty Memory 16K family Pipeline registers Cache-tag memories 64K family Register files Resettable memories 256K family Shadow registers Cache-data memories 1M family FIFOs

Computational Interface Multipliers SCSI bus controllers Multiplier-accumulators Filters Arithmetic logic units Digital correlators Barrel shifters

1-196 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Logic Devices

The company's chips are produced using 0.5µm, 0.8µm, and 1.0µm CMOS technologies, and a sub-half-micron CMOS process is expected to be implemented in 1997.

Semiconductor Fabrication Facilities

Logic Devices has teamed with three foundry partners to manufacture its products: Oki in Japan, TSMC in Taiwan, and Zentrum Mikroelektronik Dresden (ZMD) in Germany.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-197 LSI Computer Systems North American Company Profiles

LSI COMPUTER SYSTEMS

LSI Computer Systems, Inc. 1235 Walt Whitman Road Melville, New York 11747-3086 Telephone: (516) 271-0400 Fax: (516) 271-0405

Fabless IC Supplier

Company Overview and Strategy

LSI Computer Systems, Inc. (LSI/CSI) began operations in 1969 and is thought to be the world’s first “fabless” semiconductor company. The privately held company utilizes a broad array of LSI process technologies in the design of full custom and standard ICs for products in applications ranging from consumer and industrial to military and aerospace.

LSI Computer Systems is recognized as one of the leading suppliers of lighting control ICs and full custom ICs, and was the first company to develop and market ICs for brushless DC motors.

Management

Al Musto Chief Executive Officer

Products and Processes

LSI Computer Systems supplies both standard and full custom ICs. Its standard ICs include programmable digital delay timers, CMOS dividers, incremental encoder interface chips, counters, melody generators, lighting control ICs, AC and brushless DC motor controllers, LCD drivers, telephone line switch controllers, programmable digital lock circuits, and PIR detection circuits.

The company’s analog and digital full custom IC service is called Extra-Custom. The use of several external mask and wafer foundries that offer a broad range of process technologies makes the Extra-Custom service flexible in meeting the needs of a variety of applications and provides automatic second-sourcing of product. LSI Computer Systems custom designs every detail of each Extra-Custom IC thereby providing protection of the customer’s proprietary product techniques.

1-198 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles LSI Logic

LSI LOGIC

LSI Logic Corporation 1551 McCarthy Boulevard Milpitas, California 95035 Telephone: (408) 433-8000 Fax: (408) 433-7715 Web Site: www.lsilogic.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: LSI Logic K.K. • Minato-ku, Tokyo, Japan Telephone: (81) (3) 5463-7811 • Fax: (81) (3) 5463-7825

Europe: LSI Logic Europe, Ltd. • Bracknell, Berkshire, United Kingdom Telephone: (44) (1344) 426544 • Fax: (44) (1344) 481039

Asia-Pacific: LSI Logic Hong Kong, Ltd. • Hong Kong Telephone: (852) 2405-8600 • Fax: (852) 2412-7820

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

1992 1993 1994 1995 1996 Sales 617 719 902 1,268 1,239 Net Income (110) 54 109 238 147 R&D Expenditures 79 79 99 124 184 Capital Expenditures 143 88 166 233 362

Employees 3,400 3,370 3,750 3,750 3,910

Company Overview and Strategy

LSI Logic is a leading designer and manufacturer of high-performance ASICs and related products and services. Founded in 1981, the company uses advanced process technology and design methodology to design and develop highly complex ASICs and other integrated circuits. Customers of LSI Logic are primarily original equipment manufacturers (OEMs) in the electronic data processing, consumer electronics, telecommunications, and certain office automation industries. Within these industries, the company emphasizes digital video, digital broadcasting, networking and wireless communications, desktop and personal computing, and office automation applications.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-199 LSI Logic North American Company Profiles

ASIC Design and Services Pacific Rim 6% 4%

Europe 17%

Japan North America Component Products 21% 58% 94%

1996 Sales by Business 1996 Sales by Geographic Region

As process technology becomes more sophisticated, allowing greater density and increased functionality, the "system-on-a-chip" is becoming the foundation of LSI Logic's business. In fact, the company has trade marked the term “The System on a Chip Company™.” Its product libraries, including its CoreWare® libraries, combined with its deep submicron process technologies provide the company with the ability to combine microprocessor "engines", logic blocks (including industry standard functions, protocols, and interfaces), and memory with a customer’s proprietary logic on a single chip.

LSI Logic’s CoreWare technology is at the center of its shift toward more consumer and communications products. In 1996, these two segments accounted for 60 percent of the company’s revenue, versus 44 percent in 1995. New industry-standard cores added to the CoreWare library in 1996 included those for the GSM wireless market, Internet and Intranet applications, satellite set-top boxes, networking, and DVD products. In 1H97, the company entered the cable modem market with the introduction of its Cablestream™ QAM Receiver core.

Other 6% Computers Communications 34% 28%

Consumer 32%

1996 Sales by End-Use Application

1-200 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles LSI Logic

Management

Wilfred J. Corrigan Chairman and Chief Executive Officer Moshe N. Gavrielov Executive Vice President, LSI Logic Products Cyril F. Hannon Executive Vice President, Worldwide Operations W. Richard Marz Executive Vice President, Geographic Markets R. Douglas Norby Executive Vice President and Chief Financial Officer Joseph M. Zelayeta Senior Vice President, Research and Development, and General Manager, U.S. Wafer Fab Operations Maniam B. Alagaratnam Vice President, Product Development Elias J. Antoun Vice President and President, LSI Logic K.K. Ronald K. Bell Vice President and General Manager, Computer and Advanced Architecture Jean-Louis Bories Vice President, ASIC Technology John P. Daane Vice President and General Manager, Communication Products John J. D’Errico Vice President and General Manager, Pan Asia Simon P. Dolan Vice President, Strategic Marketing Bruce L. Entin Vice President, Worldwide Customer Marketing, Geographic Markets Donald J. Esses Vice President, U.S. Manufacturing Amnon Fisher Vice President and General Manager, Consumer Products Jeffrey L. Hilbert Vice President, Worldwide Customer Engineering, Geographic Markets James W. Hively Vice President, ASIC Product Development Charles E. Laughlin Vice President and General Manager, LSI Logic Japan Semiconductor, Inc. Theodore Leno Vice President, Assembly and Test Operations Bryon Look Vice President, Corporate Development R. Gregory Miller Vice President, Corporate Controller Pierre Nadeau Vice President and General Manager, LSI Logic Europe Ltd. Willsie H. Nelson Vice President, Logistics David E. Sanders Vice President, General Counsel, and Secretary Richard D. Schinella Vice President, Wafer Process R&D and Santa Clara Operations Chiaki Terada Vice President, Industrial Engineering Frank Tornaghi Vice President, North America Sales Shubha S. Tuljapurkar Vice President, Business and Personal Systems Lewis C. Wallbridge Vice President, Human Resources Edward K. Wan Vice President, North America Engineering

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-201 LSI Logic North American Company Profiles

Products and Processes

LSI Logic's broad product line includes high-performance gate array, cell-based, and embedded array ASICs with up to five million gates. The company's CoreWare library contains cells and cores based on industry-standard functions, interfaces, and protocols. Example cores from the CoreWare library include Ethernet controllers, the ATMizer™ II segmentation and reassembly engine, and the GigaBlaze G10™ SeriaLink 1.25-gigabit/second transceiver for communications applications; PCI and USB bus interfaces and Fibre Channel protocol circuits for computer applications; MPEG-2 and DVD decoders for digital video applications; and a GSM baseband processor for GSM mobile phones. In addition, cores such as these may be combined with LSI Logic’s MiniRISC™ family of Mips-based RISC microprocessor cores, including the TinyRISC™ 16-/32-bit compressed-code MPU, and/or special-purpose memory circuits to realize system-level applications on a single chip.

In addition, LSI Logic offers a family of application-specific standard product (ASSP) high-speed digital signal and image processing devices that handle many common digital signal processing functions. Some of the ASSPs designed by LSI Logic are included in the company’s CoreWare library. The company also sells stand-alone SPARC- and Mips-based RISC microprocessors.

The company has developed and uses advanced CMOS technologies to manufacture its IC products. Its G10™ 0.35µm (0.25µm, Leff) 3-volt CMOS process, introduced in 1995, allows for up to 49 million transistors (or up to five million usable gates) on a single chip. In early 1997, LSI Logic formally announced its next-generation G11™ process technology featuring a 0.25µm (0.18µm, Leff) gate length, providing up to 64 million transistors (or up to 8.1 million usable gates) and allowing greater density and increased functionality on a single chip. Devices in the G11 ASIC family will operate on 1.8V, 2.5V, or 3.3V, and consume one-fourth of the power of the G10 devices. Initial production of G11 ASICs is due to begin in 4Q97.

In a significant step to increase yields and allow for greater chip customization, LSI Logic during 1996 installed chemical mechanical polishing (CMP) equipment in its Japanese fabrication facilities. In addition, the company started using flip-chip interconnect package technology for its most complex chips.

Semiconductor Fabrication Facilities

Most of LSI Logic's wafers are manufactured by its Japanese subsidiary, LSI Logic Japan Semiconductor, Inc., (JSI) which prior to January 1995 was jointly owned by LSI Logic (55 percent) and Kawasaki Steel Corporation (45 percent). LSI Logic is now the sole owner of JSI, as a result of the purchase of Kawasaki Steel's interest.

LSI Logic also obtains wafers from Chartered Semiconductor in Singapore. In 1995, LSI Logic made a $20 million equity investment in Chartered, in exchange for guaranteed wafer capacity for products based on 0.6µm technology and smaller for a period of 10 years.

1-202 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles LSI Logic

In 1996, the company closed its aging fab in Milpitas, California, and delayed by six months the launch of its new 200mm wafer fab under construction in Gresham, Oregon. The Gresham facility is now scheduled to begin production at the beginning of 1998.

LSI Logic Corporation LSI Logic Corporation 3115 Alfred Street Gresham, Oregon Santa Clara, California 95054 Capacity (wafers/week): 4,000 Telephone: (408) 433-6666 Wafer size: 200mm Capacity (wafers/week): 250 Process: CMOS Wafer size: 150mm Products: ASICs, ASSPs Processes: CMOS, BiCMOS Feature sizes: 0.25µm, 0.35µm Products: R&D, ASICs (Operations to begin in 1Q98.) Feature sizes: 0.25µm-0.5µm

LSI Logic Japan Semiconductor, Inc. (formerly known as Nihon Semiconductor) 10 Kitahara, Tsukuba-shi Ibaraki-ken 300-32, Japan Telephone: (81) (298) 64-7229 Fax: (81) (298) 64-33362 Fabs I and II Cleanroom size: 50,000 square feet Capacity (wafers/week): 10,000 Wafer size: 150mm Processes: CMOS, BiCMOS Products: ASICs, MPUs, MPRs Feature sizes: 0.35µm-1.0µm

Key Agreements

• In early 1997, LSI Logic licensed the ARM 32-bit RISC microprocessor core of Advanced RISC Machines.

• In 3Q96, LSI Logic and Mips Technologies, Inc. extended and expanded the scope of the architecture license that allows LSI Logic to produce Mips-based RISC microprocessors and microprocessor cores. The new license will expire in the year 2004.

• LSI Logic joined Mentor Graphics to form a 10-year alliance that couples Mentor’s open design tools within LSI Logic’s submicron design and manufacturing environment to ensure “right-first-time” ASICs.

• The company formed a five-year alliance with Argonaut Software to develop a family of 3D graphics accelerators. Incorporating LSI’s system-on-a-chip, the companies will develop upgradeable 3D graphics cores for LSI’s ASIC library.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-203 LSI Logic North American Company Profiles

• LSI Logic entered into an agreement with InterDigital Communications Corporation that calls for LSI Logic to develop and produce custom chips for InterDigital to use in Personal Communications Services (PCS) handsets and Wireless Local Loop equipment. The cores that LSI Logic will use in the design are based on the company’s G10 0.35µm process technology.

• LSI Logic established a joint development agreement with Sanyo Electric to design the core of an HDTV system.

• LSI Logic signed an agreement with Philips to collaborate on developing video compression ICs for HDTV applications.

1-204 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Lucent Technologies

LUCENT TECHNOLOGIES

Lucent Technologies Inc. Microelectronics Group Two Oak Way Berkeley Heights, New Jersey 07922-2727 Telephone: (800) 372-2447 Web Site: www.lucent.com/micro

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Lucent Technologies, Microelectronics Group • Shinagawa-ku, Tokyo, Japan Telephone: (81) (3) 5421-1600 • Fax: (81) (3) 5421-1700

Europe: Lucent Technologies, Microelectronics Group • Bracknell, Berkshire, United Kingdom Telephone: (44) (1344) 865900 • Fax: (44) (1344) 865990

Asia-Pacific: Lucent Technologies, Microelectronics Group • Singapore Telephone: (65) 778-8833 • Fax: (65) 777-7495

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

1992 1993 1994 1995 1996

Sales (Lucent Technologies) 17,312* 17,734* 19,765* 20,258 23,286 Net Income (3,778)* 482* (867)* 553 1,054

Semiconductor** Sales 1,018 1,186 1,463 1,836 2,312 Capital Expenditures 105 143 170 259 498

Employees (Microelectronics) 20,000 20,000 18,500 18,000 18,000

*Data for fiscal years ended December 31. In 1996, the fiscal year was changed to start in October. **Calendar year

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-205 Lucent Technologies North American Company Profiles

Company Overview and Strategy

Lucent Technologies Microelectronics Group (formerly AT&T Microelectronics) designs and manufactures advanced integrated circuits, power systems, and optoelectronic components. Its product line is built upon strengths in digital signal processing, networked computing, and communications technologies. The company's products are used in applications such as personal computers/multimedia systems, local-area networks (LANs), cellular base stations, TV set-top boxes, telephones, and answering machines. It is a leader in digital signal processors (DSPs), cell-based ASICs, video conferencing ICs, and telecommunication power systems.

AT&T Corporation’s restructuring began with an announcement on September 20, 1995, to separate the $80 billion corporation into three independent companies: AT&T Corporation (communications), Lucent Technologies (systems and technology), and NCR Corporation (business computing).

The company name, Lucent, was chosen for its meaning “marked by clarity” or “glowing with light” to distinguish itself from AT&T. Lucent Technologies is made up of five business groups: Network Systems, Business Communications Systems, Microelectronics, Consumer Products, and Bell Laboratories.

Other Consumer 3% 6% Microelectronics 10%

Communications Network Systems Systems 57% 24%

1996 Sales by Product Group

Lucent’s semiconductor roots stretch back to the late 1940's, when Bell Labs, the research and development arm of Lucent Technologies, was credited with the invention of the transistor. Bell Labs was given the Nobel Prize for its invention in 1956. After nearly three decades of supplying its parent with chips, AT&T Microelectronics, as it was then known, decided to offer its products on the merchant market. Today, only about 15 to 20 percent of the company’s output goes to Lucent customers, versus about 70 percent in 1990.

Lucent Technologies’ Microelectronics Products business can be divided into three product groups: integrated circuits for use in communications and computing products and systems; energy systems, electronic power supplies, and associated magnetic components for the telecommunications and electronic data processing industries; and optoelectronic products for the telecommunications, cable television, and network computing markets. The company sold its interconnect products, Paradyne subsidiary, and custom manufacturing systems businesses in 1996.

1-206 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Lucent Technologies

Much of Lucent’s recent growth in sales of Microelectronic Products have been due to higher sales of DSPs and ASICs to OEMs, particularly in the Asia-Pacific region. International revenues represented approximately half of the Microelectronic Products Group’s sales in fiscal 1996.

Consumer Japan 6% 6%

Asia-Pacific 18% Data Processing Communications North America 38% 56% 50% Europe 26%

1996 Semiconductor Sales by 1996 Semiconductor Sales by End-Use Market Geographic Region

Management

Lucent Technologies Henry B. Schacht Chairman and Chief Executive Officer Richard A. McGinn President and Chief Operating Officer Curtis J. Crawford President, Microelectronics Group William T. O’Shea President, Bell Laboratories Patricia F. Russo President, Business Communications Systems Daniel C. Stanzione President, Network Systems and Bell Laboratories

Lucent Technologies Microelectronics Group Curtis J. Crawford President John T. Dickson Vice President, Integrated Circuits Kenneth W. Dorushka Vice President, Sales Peter R. McCarthy Vice President, Sales Development and Operations Peter T. Panousis, Ph.D. Vice President, Silicon Manufacturing and Development, and President, Cirent Semiconductor John V. Pilitsis Vice President, Optoelectronics William R. Spivey Vice President, Systems and Components Jay A. Walters Vice President and Chief Operating Officer, Power Systems

Products and Processes

Lucent utilizes CMOS, BiCMOS, and bipolar processes in the manufacture of its integrated circuits. The following are Lucent’s primary semiconductor products: 16-bit and 32-bit DSPs (including modem DSPs), ASICs (digital and mixed-signal standard cells, gate arrays), FPGAs, MPEG-2 digital TV devices, and communication ICs (e.g., network interface ICs, transceivers, and line card ICs).

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-207 Lucent Technologies North American Company Profiles

Recent new product unveilings have included the new ORCA 3 series of FPGAs that will carry the ORCA™ family into 0.25µm processes and 320,000 vendor-defined gates, a 56-Kbps modem chipset, and a DSP with 120MIPS performance (claimed to be the first to exceed 100MIPS).

The company also provides bipolar IC foundry services to outside companies. The Bipolar Foundry utilizes two industry leading advanced complementary bipolar process technologies, called CBIC-U2 and CBIC-V2.

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

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

Semiconductor Fabrication Facilities

Lucent Technologies Inc. Lucent Technologies Inc. Allentown Works Reading Works 555 Union Boulevard P.O. Box 13396 Allentown, Pennsylvania 18103 Reading, Pennsylvania 19612 Telephone: (610) 712-6011 Telephone: (610) 939-7011 Cleanroom size: 80,000 square feet Cleanroom size: 70,000 square feet Capacity (wafers/week): 15,000 Capacity (wafers/week): 5,000 Wafer sizes: 125mm, 150mm Wafer sizes: 100mm (2in for optoelectronics) Processes: NMOS, CMOS, bipolar Processes: Bipolar, HVCMOS, BCDMOS Products: Linear and logic ICs, DSPs, ASICs, Products: Linear ICs, optoelectronics, FPGAs foundry services Feature sizes: 0.5µm-2.5µm Feature sizes: 1.5µm-3.5µm

1-208 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Lucent Technologies

Lucent Technologies Inc. Lucent Technologies Microelectronica S.A. Orlando Plant Poligono Industrial de Tres Cantos 9333 South John Young Parkway S/N (Zona Oeste), 28770 Colmenar Viejo Orlando, Florida 32819 Madrid, Spain Telephone: (407) 345-6000 Cleanroom size: 20,000 square feet Cleanroom size: 35,000 square feet Capacity (wafers/week): 5,000 Capacity (wafers/week): 8,250 Wafer size: 150mm Wafer size: 150mm Process: CMOS Process: CMOS Products: ASICs, FPGAs, communications ICs, DSPs Products: ASICs, FPGAs, DSPs, R&D Feature sizes: 0.35µm, 0.45µm, 0.9µm, 1.25µm Feature sizes: 0.35µm-1.25µm

Lucent Technologies Inc. Cirent Semiconductor Optoelectronics Center 9333 South John Young Parkway 9901 Hamilton Boulevard Orlando, Florida 32819 Breiningsville, Pennsylvania 18031-9359 Telephone: (407) 345-6000 Telephone: (610) 391-2000 Capacity (wafers/week): 2,500 Cleanroom size: 10,000 square feet Wafer size: 200mm Wafer size: 2in Process: CMOS Process: LPMDCVD Products: ASICs, MPRs Products: Optoelectronics Feature sizes: 0.35µm, 0.5µm Feature sizes: 0.1µm-5.0µm (Joint venture with Cirrus Logic. See Key Agreements.)

Key Agreements

• In April 1997, Lucent announced it had licensed Advanced RISC Machines’ high-performance, low-power RISC microprocessor core technology (ARM7TDMI) for integration with Lucent’s ASIC library.

• Lucent and Mitsubishi established an alliance in mid-1996 to jointly develop a set of ICs that together will perform all of the functions needed for next-generation HDTV sets for the U.S. market. The first samples of the chipset are expected to become available in early 1998.

• In October 1995, Lucent signed an agreement with Cirrus Logic to form a $600 million joint manufacturing venture in Orlando, Florida. The new company, called Cirent Semiconductor, is 60 percent owned by Lucent and 40 percent by Cirrus. Production began in early 1997, beginning with a 0.35µm process (with plans to move to 0.25µm in the future). Lucent and Cirrus equally share Cirent’s output.

• Lucent signed an agreement with Hewlett-Packard in 1995 to develop and dual-source fiber-optic transceivers for SONET/SDH and ATM applications.

• Lucent (then AT&T Microelectronics) struck an agreement with Standard Microsystems Corp. (SMC) in 1994 under which SMC agreed to buy equipment for installation in Lucent's fab in Spain in return for a guaranteed portion of the fab output for a period of five years.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-209 Lucent Technologies North American Company Profiles

• Lucent is working with IBM, Lockheed-Martin Federal Systems, and Motorola to establish a manufacturing infrastructure for x-ray lithography. The team hopes to have a manufacturing capability by the end of 1997.

• Lucent has been collaborating with NEC on the development of advanced CMOS process technologies since 1991. The team completed development of a 0.25µm process flow in early 1997 and are currently working on a successor 0.18µm program, which is targeted for completion in 1999.

• Lucent has several agreements with TriQuint Semiconductor involving the development, manufacture, and marketing of GaAs ICs for high-performance wireless and telecommunications systems. As part of the deal, Lucent discontinued its production of GaAs wafers and now relies on TriQuint for the manufacture of its GaAs wafers. The two companies are developing an epitaxial process based on Lucent's GaAs intellectual property.

• Lucent is teamed with Sandia National Laboratories to develop new lithography patterning technologies for the production of high-density ICs with geometries below 0.2µm.

1-210 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Maxim Integrated Products

MAXIM INTEGRATED PRODUCTS

Maxim Integrated Products, Inc. 120 San Gabriel Drive Sunnyvale, California 94086 Telephone: (408) 737-7600 Fax: (408) 737-7194 Web Site: www.maximic.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Maxim Japan Co., Ltd. • Tokyo, Japan Telephone: (81) (3) 3232-6141

Europe: Maxim Integrated Products (UK), Ltd. • United Kingdom Telephone: (44) (1734) 303388

Asia-Pacific: Maxim Integrated Products Inc. • Hong Kong Telephone: (852) 2376-3000

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

1992 1993 1994 1995 1996 Sales 87 110 154 250 422 Net Income 14 17 24 39 123 R&D Expenditures 13 16 13 42 48 Capital Expenditures 4 13 22 36 75

Employees 554 638 1,016 1,552 1,987

Company Overview and Strategy

Established in 1983, Maxim Integrated Products is a leading designer, developer, and manufacturer of linear and mixed-signal integrated circuits. Maxim's products are the interface between the real, analog world and the world of digital processing. They detect, measure, amplify, and convert real world signals, such as temperature, pressure, or sound, into the digital signals necessary for computer processing. Its circuits are used in a wide variety of microprocessor-based equipment, including PCs and peripherals, test equipment, handheld products, wireless communicators, and video displays. The company also provides a range of high-frequency design processes and capabilities that can be used in custom design.

Maxim’s main objective is to actively develop and market both proprietary and industry standard analog integrated circuits that meet the increasing quality standards demanded by customers.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-211 Maxim Integrated Products North American Company Profiles

In mid-1994, Maxim acquired substantially all of the assets of the Tektronix's Integrated Circuits Operation in Beaverton, Oregon, for about $22 million. The acquisition provided Maxim with additional wafer production capacity, leading-edge high-frequency bipolar technologies that have broadened the firm's presence in the wireless and optic communications markets, as well as in high-speed data acquisition, RF signal processing, and video products.

United States Europe and 43% Pacific Rim 57%

1996 Sales By Geographic Region

Management

Jack F. Gifford Chairman, President and Chief Executive Officer Frederick G. Beck Vice President, Marketing and Sales Ziya G. Boyacigiller Vice President Michael J. Byrd Vice President and Chief Financial Officer Stephen R. Combs, Ph.D. Vice President, Operations Tunc Doluca Vice President, Research and Development Dave J. Fullager Vice President, Research and Development Anthony C. Gilbert Vice President, and Secretary Kenneth J. Huening Vice President William N. Levin Vice President Robert F. Scheer Vice President, Wafer Operations Richard E. Slater Vice President and Chief Accounting Officer Vijay Ullal Vice President

Products and Processes

Maxim Integrated Products offers a broad range of linear and mixed-signal ICs, including data converters, interface circuits, microprocessor supervisory circuits, operational amplifiers, power control circuits, timers and counters, display circuits, multiplexers and switches, battery chargers, voltage detectors, filters, comparators, and voltage reference circuits.

1-212 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Maxim Integrated Products

Semiconductor Fabrication Facilities

During fiscal year 1996, Maxim converted over half of its wafer fabrication capacity from 100mm to 150mm wafers. To supplements its own IC production capacity, Maxim has foundry agreements with independent foundry companies.

Maxim Integrated Products Maxim Integrated Products 430 West Maude Avenue 14320 Southwest Jenkins Sunnyvale, California 94086 Beaverton, Oregon 97005 Telephone: (408) 746-2650 Telephone: (503) 641-3737 Cleanroom size: 15,000 square feet (Class 10) Cleanroom size: 60,000 square feet Capacity (wafers/week): 3,000 Capacity (wafers/week): 2,000 Wafer sizes: 100mm, 150mm Wafer size: 100mm Processes: CMOS, BiCMOS, bipolar Process: Bipolar Products: Linear and mixed-signal ICs Products: Mixed-signal ICs Feature sizes: 1.2µm-3.0µm Feature sizes: 0.8µm-2.0µm (purchased from Tektronix in mid-1994)

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-213 Micrel Semiconductor North American Company Profiles

MICREL SEMICONDUCTOR

Micrel Semiconductor, Inc. 1849 Fortune Drive San Jose, California 95131 Telephone: (408) 944-0800 Fax: (408) 944-0970

IC Manufacturer

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

1992 1993 1994 1995 1996 Sales 18 19 36 53 66 Net Income 11379 R&D Expenditures 23469

Employees 150 160 180 345 400

Company Overview and Strategy

Micrel Semiconductor, founded in 1978, designs, develops, and manufactures a range of high-performance analog ICs targeting the communications, computer, and industrial markets. In 1982, Micrel acquired an IC fabrication facility in Sunnyvale, California, from Siemens Components and began acting as a silicon foundry. This led to the company's development of semicustom and standard linear smart power ICs. In early 1993, Micrel moved its headquarters and manufacturing operations from Sunnyvale to San Jose. The new fab, formerly owned by Seeq Technology, tripled Micrel's fab capacity.

The company’s products are divided into three key areas: standard ICs, custom ICs, and foundry services. In 1996, the majority of the company’s revenues were from sales of standard products. The company’s standard products have grown from representing 14 percent of total revenues in 1992 to 66 percent in 1996. Micrel currently offers over 800 standard products.

Custom ICs/ Foundry Services 34% Standard ICs 66%

1996 Sales by Product

1-214 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Micrel Semiconductor

In addition to standard products, the company manufactures custom analog and mixed-signal circuits and provides wafer foundry services for customers who produce electronic systems for communications, consumer, and military applications.

Military/Other 7% Consumer 8% Europe 11% Telecom Computer Asia North America 14% 42% 30% 59% Industrial 29%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

Micrel is focusing its efforts on the design and marketing of its high-performance analog power ICs to become a strong force in portable computing, desktop computing, communications, and automotive and aviation electronics. Future plans include a continued transition toward standard products, while maintaining its presence in the custom IC and foundry business.

Management

Raymond D. Zinn President and Chief Executive Officer George T. Anderl Vice President, Sales and Marketing Robert J. Barker Vice President, Finance, and Chief Financial Officer John D. Husher Vice President, Fabrication Division Warren H. Muller Vice President, Test Operations Larry R. Sample Vice President, Design

Products and Processes

Micrel supplies both standard and custom products. The company's key standard product lines include high- current low-side power MOSFET drivers, high-side power MOSFET drivers, low dropout (LDO) linear regulators, high-efficiency switching regulators, PCMCIA power control matrices, power latched drivers, display drivers, P- channel MOSFETs, and open drain power switches. Micrel also continues to offer the use of its fabrication facilities as a foundry source.

Micrel uses and offers a full range of processes: CMOS, DMOS, bipolar, BiCMOS, and BCDMOS. The company’s fab is capable of handling metal-gate, silicon-gate, double-metal and double-poly architectures with feature sizes down to 1.0µm.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-215 Micrel Semiconductor North American Company Profiles

Semiconductor Fabrication Facilities

Micrel Semiconductor, Inc. 1849 Fortune Drive San Jose, California 95131 Cleanroom size: 24,000 square feet (Class 10) Capacity (wafers/week): 5,000 Wafer size: 100mm (moving to 150mm) Processes: CMOS, bipolar, DMOS, BiCMOS/DMOS, BCD Products: Linear ICs, custom ICs, foundry services Feature sizes: 1.0µm-2.0µm

1-216 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Micro Linear

MICRO LINEAR

Micro Linear Corporation 2092 Concourse Drive San Jose, California 95131 Telephone: (408) 433-5200 Fax: (408) 432-0295 Web Site: www.microlinear.com

Fabless IC Supplier

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

1992 1993 1994 1995 1996 Sales 37 34 42 57 54 Net Income 3 — 3 11 7 R&D Expenditure 7 8 9 10 11

Employees 210 210 225 251 251

Company Overview and Strategy

Established in 1983, Micro Linear designs, develops, and markets analog and mixed-signal ICs for a broad range of applications within the communications, computer, and industrial markets. Such applications include local-area networks (LANs), mass storage, personal computers, notebook computers, personal digital assistants (PDAs), voice-band telecommunications, data acquisition, motor control, and power management.

Micro Linear targets high growth applications that require substantial analog and mixed signal content. Using its designs, the company integrates electronic subsystems or several analog building block circuits into a single circuit or chipset. Current development projects include the development of new standard and semi-standard products

In 1991, Micro Linear implemented a strategy to diversify its business and lessen its dependence on the hard disk drive industry. As a result, hard disk drive product sales in 1996 represented only six percent of total revenues, compared to 81 percent in 1990. Micro Linear expects that sales of hard disk products will continue to represent less than 10 percent of total revenues.

International sales represented approximately 38 percent of total revenues in 1996.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-217 Micro Linear North American Company Profiles

Other ICs 37% Computer Networking ICs 57%

Hard Disk Drive ICs 6% 1996 Sales by Device Type

Management

Arthur B. Stabenow Chairman, President, and Chief Executive Officer Robert Whelton Executive Vice President Carlos A. Laber Vice President, Engineering Chris A. Ladas Vice President, Operations Marty Levy Vice President, Sales Ray A. Reed Vice President, Business Development J. Philip Russell Vice President, Finance and Administration, and Chief Financial Officer Paul E. Standish Vice President, Marketing and Applications

Products and Processes

Micro Linear provides second-source products and proprietary standard products as well as semi-standard parts and ASICs using bipolar, CMOS, and BiCMOS processes, with a particular emphasis placed on its 1.5µm BiCMOS technology. Its product offerings are broken down by market application below.

Mass storage (HDD, MOD, and tape): Pulse detectors Data separators Read/write amplifiers Frequency synthesizers Motor, servo controllers Trajectory generators Servo demodulators Voice coil drivers Read channel Filters SCSI terminators Buffers Clock generators

LANs: Data quantizer Transceivers for ATM Transceivers for MPR, FOIRL Fiberoptic LED drivers Transceivers for AUI/FDDI

Voiceband telecommunications: Gain/attenuators Equalizers Tone detectors Dual filters Sine-wave generators

1-218 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Micro Linear

Power and motion control: Motor controllers Synchronized power supply chips Power factor correctors Resonant controllers Battery—DC/DC converters Phase modulation controllers PWM controllers LCD backlight IC

Data conversion: 12-bit ADCs 8-bit ADCs 10-bit ADCs 8-bit DACs

Semiconductor Fabrication Facilities

Micro Linear utilizes wafer foundries for the production of its ICs.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-219 Micro Networks North American Company Profiles

MICRO NETWORKS

Micro Networks Corporation Microelectronics Business Unit 324 Clark Street Worcester, Massachusetts 01606 Telephone: (508) 852-5400 Fax: (508) 853-8296

Fabless IC Supplier

Company Overview and Strategy

Micro Networks Corporation designs and manufactures custom and semi-custom data acquisition products, clock oscillators, application-specific ICs (ASICs), and custom hybrid microcircuits for worldwide high reliability aerospace/defense, industrial, and commercial applications.

MNC was established in 1969 as a hybrid producer and quickly became a dominant player in data conversion products. A second product line, frequency control products, was added in 1991. Micro Networks also designs and manufactures custom microelectronics products including thick- and thin-film substrates, hybrids, and multichip modules. Typical applications for its custom microelectronics products are avionics, imaging, portable satellite terminals, military electronics equipment and submarine communications receivers.

In September 1996, MNC acquired the assets of GTE Microelectronics from GTE Corporation, one of the world's largest suppliers of communications systems, equipment, and services for commercial and government/defense applications. GTE Microelectronics was an organization within the Communications Systems Division of GTE Government Systems, one of GTE Corporation's two operating groups. With the assets of GTE Micro, MNC expanded its monolithic capabilities and its custom microelectronics product line to include capabilities in ASIC design, manufacture, and test. With regard to ASICs, MNC specializes in the conversion of ASIC designs and the manufacture of secure ASIC products.

Approximately 60 percent of MNC’s sales, which are forecast to be about $15 million for 1997, are from military- related products. Commercial-related products make up the remaining 40 percent.

Management

Debbie Cremin Director, Microelectronics Business Unit John Condon Sales Manager, Custom Microelectronics Business Unit

1-220 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Micro Networks

Products and Processes

Micro Networks’ custom microelectronics products include ASICs, FPGAs, multichip modules, and hybrid circuits. The company specializes in rapid prototyping, small production runs, custom packaging, and conversion of hybrids to ASICs.

The companies’ ASIC offerings include a variety of standard cell and gate array technologies down to submicron CMOS, BiCMOS, and bipolar for digital, analog, and mixed-signal circuits.

Micro Networks also provides custom test services for test development and production of analog, digital, and mixed-signal circuits including temperature testing, characteristics, and qualification.

Semiconductor Fabrication Facilities

For the production of its ICs, MNC works with a number of wafer foundries including National Semiconductor, Symbios Logic, and Mitel Semiconductor.

Key Agreements

• As part of the acquisition of GTE Microelectronics in September 1996, MNC established an alliance with GTE Government Systems that calls for MNC to supply GTE Government Systems with custom ASICs, which were previously supplied by GTE Micro.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-221 Microchip Technology North American Company Profiles

MICROCHIP TECHNOLOGY

Microchip Technology Inc. 2355 West Chandler Boulevard Chandler, Arizona 85224-6199 Telephone: (602) 786-7200 Fax: (602) 899-9210 Web Site: www.microchip.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Microchip Technology International Inc. • Yokohama, Kanagawa, Japan Telephone: (81) (45) 471-6166 • Fax: (81) (45) 471-6122

Europe: Arizona Microchip Technology Ltd. • Bourne End, Buckinghamshire, England Telephone: (44) (1628) 851077 • Fax: (44) (1628) 850259

Asia-Pacific: Microchip Technology, Inc. • Kwai Fong, Hong Kong Telephone: (852) 2401-1200 • Fax: (852) 2401-3431

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

1993 1994 1995 1996 1997 Sales 89 139 208 286 334 Net Income 4 19 36 52 57 R&D Expenditures 9 14 21 27 32 Capital Expenditures 3 35 71 115 n/a

Employees 1,070 1,260 1,430 1,665 1,900

Company Overview and Strategy

Microchip Technology was organized in 1989 by a group of venture capital investors to acquire General Instrument Corporation's Microelectronics division, which was established in 1960. Since the acquisition, Microchip Technology has shifted its focus from commodity memory and logic products to embedded control system products.

The company is now a leading manufacturer of highly integrated, field-programmable RISC microcontrollers, complementary ASSPs, and related specialty memory products for high-volume embedded control applications. Microchip sells its products to a broad and diverse customer base in the consumer, automotive, communications, office automation, and industrial markets.

1-222 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Microchip Technology

Commodity Memories

and Logic Products 7%

United States EEPROMs and Microcontrollers Other 35% Specialty EPROMs and associated (primarily Asia, 34% development systems Europe, and Japan) 59% 65%

1996 Sales by Product Category 1996 Sales by Geographic Region

Microchip's embedded control products (microcontrollers, serial and parallel EEPROMs, and high-speed and low- power EPROMs) represented 93 percent of total product sales in fiscal 1996 compared to only eight percent of total product sales in fiscal 1990. The remaining 7 percent in fiscal 1996 was represented by the company’s commodity memory and logic products.

In 1995, Microchip acquired the “KeeLoq” hopping code and secure smart card technology and patents developed by Nanoteq of South Africa. The $10 million acquisition also provided Microchip with worldwide marketing rights to the technology. New products have been, and continue to be, developed that combine the KeeLoq and smart card technology with Microchip’s 8-bit MCUs and serial EEPROMs for enhanced security applications in wireless/remote controlled systems.

Management

Steve Sanghi Chairman, President, and Chief Executive Officer Timothy B. Billington Vice President, Manufacturing Operations Frederick J. Bruwer Vice President, Secure Data Products C. Philip Chapman Vice President, Chief Financial Officer, and Secretary Steve Drehobl Vice President, ASIC Products Division Harold R. Fischer Vice President, Far East Sales Lanny Fleesas Vice President, Worldwide Distribution Sales Franc C. Guerrini Vice President, Europe Sales Michael J. Jones Vice President, Human Resources and Information Systems Adrian Kuzdas Vice President, Advanced Microcontroller and Technology Products David S. Lambert Vice President, Process Development and Manufacturing Engineering Robert A. Lanford Vice President, Worldwide Sales Mitchell R. Little Vice President, Standard Microcontroller and ASSP Division Robert J. Lloyd Vice President, Facilities Management Sumit K. Mitra Vice President, Systems and Applications John F. Oatley Vice President, Manufacturing Operations-Pacific Rim Gordon W. Parnell Vice President, Controller, and Treasurer George P. Rigg Vice President, Advanced Microcontroller and Technology Division Richard J. Simoncic Vice President, Memory and Specialty Products Division Howard C. Teeter Vice President, Americas Sales Ernest M. Villicaña Vice President, Advanced Microcontroller and Technology Division Marketing William Yang Vice President, Finance-Pacific Rim

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-223 Microchip Technology North American Company Profiles

Products and Processes

During the 1970's and 1980's, a high-volume ROM and EPROM business was then-General Instrument's primary revenue generator. Since then, however, Microchip has placed designs derived from microcontrollers at the forefront of its strategy, and has limited nonvolatile offerings to specialty areas such as serial EEPROMs. Although commodity EPROM shipments will continue to decrease as a percentage of total sales, the company intends to manage EPROM production levels to maintain optimal manufacturing capacity utilization.

Microchip's integrated circuit products are outlined below. These products are based on CMOS process technology with lithography dimensions down to 0.7µm.

Microcontroller Products • PIC16/17 8-bit microcontrollers that combine a high-performance RISC processor with one-time-programmable (OTP) EPROM technology or reprogrammable EEPROM or flash memory technology. Current PIC16/17 microcontroller product families include advanced features such as sophisticated timers, embedded A/D converters, extended instruction/data memory, inter-processor communication (I2C/Microwire/SPI™ bus ports and USARTs), and ROM, RAM, EPROM, EEPROM, and flash memories. Some of Microchip’s MCUs operate from power supplies as low as 2.0V. • In 1996, Microchip unveiled the industry’s first 8-pin MCU family of devices—the PIC12. The PIC12 packs the 8-bit high-speed RISC architecture of the PIC16/17 families into the smallest footprint microcontroller. The MCU also integrates a 10-bit A/D converter without increasing the pin count.

Application-Specific Standard Products (combinations of PIC16/17 MCU architecture, non-volatile memory, and selected application-specific software technologies) • TrueGauge™ intelligent battery capacity monitoring and charge controller IC. • Mouse and trackball controller IC for all Apple Computer- and IBM PC-compatible formats. • Energy management controller IC for reducing power consumption of AC induction motors. • Cost effective PICSEE PIC16/17 MCUs with 1K of on-chip serial EEPROM for applications such as automotive security, keyless entry, remote control, telecommunications, and data acquisition.

QuickASIC™ Products • In 1996, Microchip acquired quick-turn ASIC specialist ASIC Technical Solutions, Inc. Through the acquisition, Microchip now offers the QuickASIC family, which replace standard FPGAs and CPLDs with a lower-cost mask- programmed gate array ASICs. The QuickASIC business includes what the company calls a Zero-NRE™ program. Microchip is developing the technology to allow the combination of the company’s PIC16/17 MCU core with configurable gate arrays, thereby providing a wider range of flexibility, power ranges, and custom functionality.

EEPROM Products • Serial CMOS EEPROMs with densities ranging from 1K to 64K and featuring data transfer rates up to 1MHz and a 10 million erase/write cycle endurance. The company’s serial EEPROMs are offered with a wide operating voltage range (1.8V to 6.0V). Microchip also developed the world’s first 64K smart serial EEPROM. • Parallel CMOS EEPROMs available in 4K, 16K, and 64K densities with 10,000 to 100,000 erase/write cycles (typ).

1-224 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Microchip Technology

EPROM Products • Standard CMOS EPROMs with densities ranging from 64K to 512K. • Low-voltage (as low as 3.0V) CMOS EPROMs with densities ranging from 64K to 512K. • High-speed 256K CMOS EPROMs with access times as fast as 55ns.

Secure Data Products • KeeLoq family of secure data products. The encoder and decoder devices, which feature Microchip’s patented KeeLoq code hopping technology, are suitable for remote keyless entry, logical/physical access control systems, alarm and immobilizer systems, garage door openers, and home security systems.

Semiconductor Fabrication Facilities

Microchip plans to install a 200mm wafer pilot line in its Fab 2 facility in 1997, and will completely convert the fab over to 200mm wafers over time. Construction of the company’s Fab 3, 200mm wafer fab is expected to begin in 1998.

Microchip Technology Inc. Microchip Technology Inc. 2355 West Chandler Boulevard 1200 South 52nd Street Chandler, Arizona 85224 Tempe, Arizona 85281 Fab 1 Fab 2 Cleanroom size: 24,000 square feet (Class 10) Cleanroom size: 25,000 square feet (Class 10) Capacity (wafers/week): 4,500 Capacity (wafers/week): 8,000 Wafer sizes: 125mm, 150mm Wafer size: 150mm Process: CMOS Process: CMOS Products: MCUs, EEPROMs, EPROMs, ASSPs Products: MCUs, EEPROMs, ASSPs, ASICs Feature sizes: 0.7µm-1.5µm Feature sizes: 0.7µm-0.9µm

Microchip’s IC products are assembled and tested primarily at a subsidiary in Kaohsiung, Taiwan, and by a third- party contractor in Bangkok, Thailand. Other third-party assembly and test suppliers used by Microchip are located in the Philippines and other Asian countries.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-225 Micron Technology North American Company Profiles

MICRON TECHNOLOGY

Micron Technology, Inc. 8000 South Federal Way P.O. Box 6 Boise, Idaho 83707-0006 Telephone: (208) 368-4000 Fax: (208) 368-4435 Web Site: www.micron.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Micron Technology Japan, K.K. • Minato-ku, Tokyo, Japan Telephone: (81) (3) 3436-5666 • Fax: (81) (3) 3436-1444

Europe: Micron Europe, Ltd. • Crowthorne, Berkshire, United Kingdom Telephone: (44) (1344) 750750 • Fax: (44) (1344) 750710

Asia-Pacific: Micron Semiconductor Asia Pacific Pte. Ltd. • Singapore Telephone: (65) 841-4066 • Fax: (65) 841-4166

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

1992 1993 1994 1995 1996 Sales 506 828 1,629 2,953 3,654 IC Sales 455 737 1,368 2,287 2,210 Net Income 7 104 401 844 594 R&D Expenditures 48 57 83 129 192 Capital Expenditures 102 163 377 961 1,699

Employees 4,300 4,900 5,400 8,080 9,900

Company Overview and Strategy

Micron Technology, Inc. (MTI) was founded in 1978 as a semiconductor design consulting firm. In 1981, the company opened its first fabrication facility, and in late 1982, entered the memory market with a 64K DRAM, which had a significantly smaller die size than competing products.

Today, Micron is a leading developer and manufacturer of DRAMs, very fast SRAMs, flash memories, and other semiconductor memory components, as well as personal computer systems, RF identification chips and systems, and complex printed circuit board assemblies. Its memory products continue to feature some of the smallest die sizes in the industry.

1-226 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Micron Technology

MTI is comprised of several operating companies. Among them are Micron Semiconductor Products, Inc., which is responsible for the sales and support of MTI’s semiconductor products; Micron Electronics, Inc., which develops, manufactures, markets, and supports PC systems, workstations, and custom-manufactured printed circuit boards; Micron Display Technology, Inc., which develops and manufactures small-area field emission displays (FEDs); Micron Communications, Inc., which develops and manufactures a line of MicroStamp™ remote intelligent communications (RIC) products; Micron Quantum Devices, Inc., which designs, develops, and markets flash memory IC products and systems; and Micron Construction, Inc., which provides customized construction services for customers in the microelectronics, industrial, commercial, and institutional industries.

Other Japan 5%

2% SRAMs Asia Pacific 2% Other 9% 10% Europe PCs DRAMs/ 10% 31% Specialty DRAMs 57% North America 74%

1996 Corporate Sales by Product Type 1996 Corporate Sales by Geographic Region

MTI’s customers are primarily computer and computer peripheral manufacturers. Other customers represent the consumer electronics, CAD/CAM, telecommunications, office automation, data processing, and graphics display industries.

Management

Steven R. Appleton Chairman, President, and Chief Executive Officer Donald D. Baldwin Vice President, Sales Kipp A. Bedard Vice President, Corporate Affairs Eugene H. Cloud Vice President, Marketing Robert M. Donnelly Vice President, Memory Products D. Mark Durcan Vice President, Process Research and Development Jay L. Hawkins Vice President, Manufacturing Administration and Back End Edward J. Heitzeberg Vice President, Engineering Leo B. Jurica Vice President, Lehi Operations Roderic W. Lewis Vice President, Legal Affairs, General Counsel, and Corporate Secretary James E. O’Toole Vice President, Product Development Nancy M. Self Vice President, Administration Steven L. Stout Vice President, Facilities W. G. Stover, Jr. Vice President, Finance and Chief Financial Officer Mark E. Tuttle Vice President, Manufacturing

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-227 Micron Technology North American Company Profiles

Products and Processes

Micron's semiconductor product strategy is focused on the design, development, and manufacture of memory products, primarily DRAMs, for standard and custom memory applications. In recent years, the company has been applying its core semiconductor technology in other areas, such as RFID products and flat panel displays, in order to diversify its business.

Standard and Specialty DRAMs • 4M, 16M, and 64M standard DRAMs—fast page, extended data-out (EDO), and burst EDO modes. • 16M synchronous DRAMs (SDRAMs)—offered in speed grades of 12ns/83MHz or 10ns/100MHz. • 4M EDO DRAMs for graphics applications—x16 configuration and access times as low as 40ns. • 8M synchronous graphics RAMs (SGRAMs)—x32 configuration, with speed grades of 15ns/66MHz, 12ns/83MHz, and 10ns/100MHz. • DRAMs are also offered in bare-die form or module form.

Synchronous SRAMs • 1M and 2M flow-through or pipelined burst SRAMs—the flow-through devices support bus frequencies up to 67MHz and the pipelined devices up to 125MHz. • SRAMs are also offered in bare-die form or module form.

Flash Memories • 2M, 4M, and 8M NOR-type boot block flash memories using Intel-licensed SmartVoltage technology. • 8M and 16M NOR-type sector erase flash memories using Intel-licensed SmartVoltage technology. • Micron introduced a line of solid-state flash memory cards in 2H96.

Communications ICs • The MicroStamp Engine™ is a single-chip device that integrates an 8-bit microcontroller, 256 bytes of SRAM, and a microwave radio to produce a stamp size remote intelligent communications (RIC) product. The MicroStamp unit can be encoded with information and attached to almost any object. The stored data can then be retrieved or modified remotely at distances of 10-20 feet.

Micron’s semiconductor products are based on CMOS process technology, with the majority of chip designs at the 0.43µm and 0.35µm geometry levels. The company’s research and development efforts are focused on shrink versions of its 16M DRAMs, 64M synchronous DRAMs, and a move from 0.35µm to 0.25µm and 0.18µm process technologies. Other development efforts are devoted to 64M, 256M, and 1G DRAMs, and the design of new flash memory and RIC products.

1-228 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Micron Technology

Semiconductor Fabrication Facilities

Micron recently completed the conversion of its 150mm wafer lines (Fabs I/II and III) to 200mm wafers. Furthermore, in mid-1995, the company began construction of a new $2.5 billion 200mm wafer fab complex in Lehi, Utah. However, Micron announced in early 1996 that it would complete only the shell of the fab, and hold off on outfitting and equipping the facility until market conditions warrant. When completed, the new plant will be capable of processing 10,000 wafers per week, utilizing 0.25µm technology.

Micron Technology, Inc. Micron Technology, Inc. 8000 South Federal Way 8000 South Federal Way Boise, Idaho 83707-0006 Boise, Idaho 83707-0006 Fab I/II Fab III Cleanroom size: 32,400 square feet Cleanroom size: 32,000 square feet Capacity (wafers/week): 6,500 Capacity (wafers/week): 7,000 Wafer size: 200mm Wafer size: 200mm Process: CMOS Process: CMOS Products: DRAMs, SRAMs, RFID ICs Products: DRAMs, SRAMs, flash memories Feature sizes: 0.35µm-0.7µm Feature sizes: 0.35µm, 0.43µm

Micron Technology, Inc. 8000 South Federal Way Boise, Idaho 83707-0006 Fab IV Capacity (wafers/week): 700 Wafer size: 200mm Process: CMOS Products: Memory R&D Feature sizes: 0.25µm, 0.35µm

Micron’s ICs are tested and assembled at its own facilities located at the site of its headquarters and fabs in Boise, Idaho.

Key Agreements

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

• Micron signed a cross-licensing agreement with Intel in 1995 covering flash memory ICs, making Micron a true alternate source for Intel’s flash devices.

• Micron announced in 1992 a memorandum of understanding with NEC on the mutual OEM sales of each other's semiconductor memory products.

• Micron has made a number of agreements to license its known-good die (KGD) technology. Licensees include Honeywell SSEC, Chip Supply, nChip, and Cybex Technologies.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-229 Mitel Semiconductor North American Company Profiles

MITEL SEMICONDUCTOR

Mitel Semiconductor 360 Legget Drive P.O. Box 13089 Kanata, Ontario Canada K2K 1X3 Telephone: (613) 592-2122 Fax: (613) 592-4784 Web Site: www.semicon.mitel.com

IC Manufacturer

Regional Headquarters/Representative Locations

North America: Mitel Semiconductor • Mt. Dora, Florida Telephone: (352) 383-8877 • Fax: (352) 383-8822

Financial History ($M, Canadian)

1992 1993 1994 1995 1996 Sales* 45 69 80 110 197 R&D Expenditures 867917

Employees 529 552 564 633 1,061

*External sales only. Mitel Semiconductor also supplies ICs and hybrids to its parent Mitel Corporation.

Company Overview and Strategy

Mitel Semiconductor, founded in 1976, designs, manufactures, and markets ICs, hybrids, and optoelectronic components. It supplies analog and digital telecommunications ICs, thick-film hybrids, and board-level products to designers of products such as PBXs, EDs, MUXs, and computer/telephony systems. These products are used in telecommunications, data communications, video, aerospace, industrial, instrumentation, and medical applications. Mitel Semiconductor also offers a high-quality custom wafer fabrication service.

In March 1996, Mitel Semiconductor acquired Swedish semiconductor manufacturer ABB Hafo.

1-230 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Mitel Semiconductor

Thermal Print Heads Canada 1% 5%

Wafers Japan Hybrids 9% 8% 11% Europe ROW 35% Opto 18% 11% ICs 68% United States 34%

1996 Sales by Product Category 1996 Sales by Geographic Region

Management

John Millard President and Chief Executive Officer, Mitel Corporation Kirk Mandy Vice President and General Manager, Semiconductor Division

Products and Processes

Mitel Semiconductor's product line includes analog and digital switches; DTMF and caller-ID devices; subscriber line circuits (SLICs); telephone-set, ISDN, and line interface devices; and broadband ISDN primary rate and ATM products. Mitel Semiconductor also offers a custom wafer foundry service.

Semiconductor Fabrication Facilities

Mitel Semiconductor is in the process of upgrading its Bromont fabrication facility to 150mm wafers. Additional 100mm capacity is also being added to the Järfälla facility in Sweden.

Mitel Semiconductor Mitel Semiconductor AB 18 Airport Boulevard Bruttovägen 1, P.O. Box 520 Bromont, Quebec, Canada J0E 1L0 S-175 26 Järfälla, Sweden Telephone: (514) 534-2321 Telephone: (46) (8) 580 24500 Fax: (514) 534-3201 Fax: (46) (8) 580 20190 Cleanroom size: 18,000 square feet Cleanroom size: 13,000 square feet Capacity (wafers/week): 2,700 Capacity (wafers/week): 750 Wafer size: 100mm Wafer size: 100mm Processes: CMOS, double poly/triple metal, Processes: CMOS, DMOS, SOS CCD, metal gate Feature sizes: 1.25µm, 1.5µm, 2.0µm, 3.0µm Feature sizes: 0.8µm, 1.2µm, 1.5µm, 2.0µm, 3.0µm, 4.0µm, 5.0µm, 9.0µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-231 Mosaic Semiconductor North American Company Profiles

MOSAIC SEMICONDUCTOR

Mosaic Semiconductor, Inc. 7420 Carroll Road, Suite 300 San Diego, California 92121-9727 Telephone: (619) 271-4565 Fax: (619) 271-6058

Fabless IC Supplier

Employees 25

Company Overview and Strategy

Founded in 1988, Mosaic Semiconductor is a supplier of high reliability memory components and subsystems for military, aerospace, industrial, and medical markets. Mosaic's customers are mainly in the U.S. and Canada. European customers are serviced by the England-based operation, HMP.

Management

David Armstrong President and Chief Executive Officer Anthony Swaddle Executive Vice President and General Manager Jaime Conde Manager, North American Sales

Products and Processes

Mosaic’s memory products include EPROM, EEPROM, flash and SRAM in 8, 16, and 32-bit widths, and are available in both ceramic and hi-rel plastic packages. Screening levels available range from commercial to MIL-STD 883C screen.

Semiconductor Fabrication Facilities

Mosaic's ICs are currently manufactured by various North American and off-shore semiconductor manufacturers. The company maintains an assembly, test, and package design facility in San Diego.

1-232 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles MOSAID Technologies

MOSAID TECHNOLOGIES

MOSAID Technologies Incorporated P.O. Box 13579 Kanata, Ontario Canada K2K 1X6 Telephone: (613) 836-3134 Fax: (613) 831-0796 Web Site: www.mosaid.com

Fabless IC Supplier

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

1992 1993 1994 1995 1996 Sales 7 10 15 24 38 Net Income (1) 2348 R&D Expenditures 22357

Employees 61 58 74 93 132

Company Overview and Strategy

MOSAID Technologies was founded in 1975 to provide MOS memory design and consulting services. Today, the company is a recognized leader in the design of memory chips and a leading supplier of engineering memory test systems. The company operates from two divisions: the Semiconductor Division, which designs advanced memory chips for both standard memory and application-specific memory (ASM) requirements, and the Systems Division, which designs, manufactures, markets, and services memory test systems focused primarily on engineering testing requirements. Approximately 93 percent of MOSAID's sales revenue is generated outside of Canada.

Other 11% Taiwan Japan 11% 34%

North America 21% Korea 23%

1996 Sales by Geographic Region

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-233 MOSAID Technologies North American Company Profiles

Management

Richard C. Foss, Ph.D. Chairman George J.J. Cwynar President and Chief Executive Officer Robert C. Albrow Vice President, Strategic and Technical Development Richard D. Broadway Vice President, Finance and Administration, and Chief Financial Officer G. Glenn Evans Vice President and General Manager, Systems Division

Products and Processes

MOSAID has experience in nine generations of DRAM designs, from 4K to 256M. Some recent memory chip designs include: a 143MHz, four-bank, 64M SDRAM supporting x4, x8, and x16 configurations, a high- performance 16M synchronous DRAM supporting data transfer rates of up to 200Mbps, a low-voltage 16M DRAM upgrading the capabilities of portable computers, a low-voltage word-wide 4M DRAM, and a low-power SRAM.

Macrocell designs intended for use as blocks within ASICs include high-speed pipelined SRAMs and DACs for RAMDAC function, high-performance embedded DRAM, and HDRAM™ (high-density DRAM)—MOSAID’s proprietary DRAM technology for single poly logic processes. A yield enhancement vehicle closely integrated with MOSAID’s engineering testers is also available.

Key Agreements

• MOSAID announced in February 1997 that its HDRAM embedded memory technology would be ported to TSMC’s 0.35µm logic process.

• MOSAID signed a distribution agreement with Synopsys Inc. in February 1997 for the integration of the company’s HDRAM technology into Synopsys’ cell-based array technology.

• MOSAID is involved in the SLDRAM Consortium (formerly the SyncLink Consortium). Its role is to examine the feasibility, chip architecture, and bus interface of the new SLDRAM standard, as well as provide the demonstration design.

• MOSAID announced a cooperative development agreement with Oki Electric Company in July 1996, for the development of an advanced 16M SDRAM and a 64M Outer Data Inner Control SDRAM.

• In November 1995, MOSAID acquired 12 percent of Edge Semiconductor Inc, a designer and supplier of ICs for the automatic test equipment (ATE) market, based in San Diego, California.

• In 1994, MOSAID teamed up with Symbionics Ltd., Standard Microsystems Corp., and three venture capital firms to form the joint venture company Accelerix, which is developing a single-chip graphics accelerator.

1-234 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Motorola

MOTOROLA

Motorola, Inc. Semiconductor Products Sector (SPS) 3102 North 56th Street Phoenix, Arizona 85018 Telephone: (602) 952-3000 Fax: (602) 952-6100 Web Site: motserv.indirect.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Motorola, European Semiconductor Group • Geneva, Switzerland Telephone: (41) (22) 7991-1111 • Fax: (41) (22) 7341-086

Asia-Pacific: Motorola Silicon Harbor Centre • Tai Po, Hong Kong Telephone: (852) 2666-8333 • Fax: (852) 2666-6123

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

1992 1993 1994 1995 1996 Corporate Sales 13,303 16,963 22,245 27,037 27,973 Net Income 453 1,022 1,560 1,781 1,154

Semiconductor Sales 4,470 5,800 6,960 8,540 7,858 IC Sales 3,606 4,825 5,600 6,850 6,379 Discrete Sales 864 975 1,360 1,690 1,479 Capital Expenditures 666 1,120 1,640 2,530 1,400

Employees (SPS) 41,000 44,000 46,000 52,000 52,000

Company Overview and Strategy

Established in 1928, Motorola's first products were battery eliminators and private label radio sets. Shortly after WWII Motorola entered the television and semiconductor businesses. Today, Motorola, Inc. (based in Schaumburg, Illinois) supplies a wide range of electronic products, including cellular telephones, semiconductors, two-way radios, paging and data communications products, defense and space electronics, computers, and other electronic components, modules, and systems for automotive, industrial, transportation, navigation, communication, energy systems, consumer, and lighting markets.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-235 Motorola North American Company Profiles

Land Mobile Other 13% 11% General Systems 37% Messaging, Information, Semiconductor and Media 26% 13%

1996 Corporate Sales by Product Group/Sector

In 1949, Motorola set up a solid-state research laboratory in Phoenix, Arizona, and then established its semiconductor products sector in 1954. The company has since continued to be one of the world’s largest producers of semiconductors. It offers one of the industry's broadest portfolios of semiconductor products, including high-performance microprocessors and microcontrollers, digital signal processors, memories, mixed- signal components, programmable logic devices, advanced CMOS ASICs, customizable standard products, RF and microwave devices, sensors, optoelectronics, and discretes. Applications for these products are primarily in the communications, computer, and industrial markets, but also in the automotive and consumer markets.

Consumer Japan 10% 8% Automotive Asia/Pacific Communications 15% 18% 34% Americas 51% Industrial Europe Computing 17% 23% 24%

1996 Semiconductor Sales by 1996 Semiconductor Sales by End-Use Market (est) Geographic Region

Motorola Semiconductor Products Sector (SPS) is organized into five product groups:

Communications and Advanced Consumer Technology Group (based in Austin, Texas) Advanced Digital Consumer Division Wireless Division Imaging and Storage Division Wireline Division

Communications, Power, and Signal Technologies Group (based in Phoenix, Arizona) RF Semiconductor Division Power Products Division Sensor Products Division Optoelectronic and Signal Products Division

1-236 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Motorola

Logic and Analog Technologies Group (based in Phoenix, Arizona) Analog IC Division Logic IC Division

Microcontroller Technologies Group (based in Austin, Texas) Advanced Microcontroller Division Motorola Segments Division CISC Automotive and Industrial Division Custom Microcontroller Solutions Division CISC Consumer, Communications, and Smartcard Division

Microprocessor and Memory Technologies Group (based in Austin, Texas) RISC Microprocessor Division Dynamic Memory Products Division Fast Static RAM Division

It is estimated that Motorola SPS sells approximately 20 percent of its semiconductor output to other Motorola groups and sectors.

Management

Motorola, Inc. Gary L. Tooker Chairman Christopher B. Galvin Chief Executive Officer Robert L. Growney President and Chief Operating Officer Carl F. Koenemann Executive Vice President and Chief Financial Officer

Motorola Semiconductor Products Sector Hector Ruiz President and General Manager Bertrand Cambou Senior Vice President and Director, Technology Larry L. Gartin Senior Vice President and Director, Finance Gary M. Johnson Senior Vice President and GM, Service, Panning, and Logistics Paul J. Shimp Senior Vice President and Director, Quality and Support Operations Fred Shlapak Senior Vice President and GM, Communications and Advanced Consumer Technologies Group C.D. Tam Senior Vice President and GM, Microcontroller Technologies Group Barry Waite Senior Vice President and GM, Microprocessor and Memory Technologies Group Pete Bingham Vice President and GM, Wireline IC Division Jim George Vice President and GM, Imaging and Storage Division Steve Hanson Vice President and GM, European Semiconductor Group Bill Seiferth Vice President and GM, Communications, Power, and Signal Technologies Group George Turner Vice President and GM, Logic and Analog Technologies Group Peter Gill Vice President and Director, Manufacturing Technology Brian Hilton Vice President and Director, World Marketing

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-237 Motorola North American Company Profiles

L.J. Reed Vice President and Director, Application Specific IC Division Bud Broeker Corporate Vice President and GM, Dynamic Memory Products Division Carlos Genardini Corporate Vice President and GM, Asia-Pacific Semiconductor Group Thomas Gunter Corporate Vice President and GM, RISC Microprocessor Division Greg White Corporate Vice President and GM, Custom Microcontroller Solutions Division Brian Wilkie Corporate Vice President and GM, Advanced Microcontroller Division

Products and Processes

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

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

Digital Bipolar 7% MOS Memory 10%

MOS Micro Analog 36% 13% MOS Logic Discrete/Opto 15% 19%

1996 Semiconductor Sales by Device Type

1-238 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Motorola

Provided below are details concerning Motorola’s semiconductor products.

Analog ICs Motorola offers an extensive line of linear ICs, including amplifiers and comparators, power supply circuits, power and motor control devices, voltage references, data converters, interface circuits, communications circuits, consumer electronics ICs, automotive ICs, and other special purpose linear ICs like RF circuits. These devices are manufactured using bipolar or MOS technology. In early 1997, the company introduced a 1.0V rail-to-rail dual op amp.

Application-Specific ICs (ASICs) Motorola’s ASIC products include CMOS, bipolar, and BiCMOS gate arrays and FPGAs. Its most advanced digital µ gate arrays (M5C Series) are based on three-layer-metal 0.45 m (Leff) CMOS process technology, which allows for up to 557,000 available gates and 556 I/Os.

The company’s programmable logic products include its Motorola Programmable Arrays (MPAs), which are SRAM- based fine-grain FPGAs. Based on technology from U.K.-based Pilkington Microelectronics, which Motorola acquired in March 1997, the MPA devices are built using a 0.6µm triple-level-metal CMOS process and are available with gate densities ranging from 8,000 to 22,000 gates. Motorola and Pilkington have had a working relationship since 1992 (see Key Agreements).

Customizable Standard Products (CSPs) The company launched its Customizable Standard Product (CSP) program in June 1995, following two years of development. Motorola currently offers CSPs for asynchronous transfer mode (ATM) local and wide area network applications in its MC92000 Series.

Discretes, Optoelectronics, and Sensors These products include a variety of bipolar and MOS transistors, diodes, RF and microwave devices, thyristors, optoelectronics, pressure and temperature sensors, fiber optic devices, and power modules.

Logic ICs From the beginning, Motorola has been a leader in the market for digital logic devices. Its product line includes a broad range of bipolar MECL (Motorola emitter-coupled logic), MECL10K, MECL10KH, MECL III, ECLinPS (ECL in picoseconds), ECLinPS Lite, low-power TTL, and fast TTL logic IC families, as well as CMOS high-speed, low- voltage, and metal-gate logic IC families.

Memory ICs Motorola manufactures and markets dynamic and fast static RAMs, including processor-specific SRAMs, synchronous SRAMs, and BurstRAM devices. Its fast SRAMs are based on 0.8µm to 0.4µm BiCMOS and high- performance CMOS technologies with access times as low as 4.5ns and operating frequencies greater than 200MHz.

The company’s DRAMs include 4M and 16M parts designed using 0.6µm and 0.5µm high-performance CMOS technologies. 64M DRAMs will be available in late 1997.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-239 Motorola North American Company Profiles

In late 1996, Motorola added flash memory products to its portfolio through an alliance with Mitsubishi (see Key Agreements). The first MobileFlash product to be offered by Motorola was an 8M 3.3V-only boot-block DINOR flash memory device for portable and handheld equipment applications.

Microcontrollers and Digital Signal Processors Motorola offers one of the most comprehensive selections of high-performance single-chip microcontrollers, ranging from industry-standard 8-bit controllers to state-of-the-art 16-bit and 32-bit modular controllers.

The company’s 68HC05 and 68HC08 families of 8-bit MCUs are part of the Motorola Customer Specific IC (CSIC) program, which is targeted for high-volume projects that require the cost-efficiency of standard devices, but have requirements that cannot be met by “off-the-shelf” components.

Motorola’s 16-bit MCUs include the 68HC11 controller family and the 68HC16 modular controller family. Its 32-bit MCUs include the 6833x controller family and the PowerPC-based MPC5xx controller family.

Motorola’s digital signal processor products include the 56100 and 56800 families of 16-bit general-purpose DSPs, the 56000, 56300, and 56800 families of 24-bit general-purpose DSPs, and the 96002 family of 32-bit general-purpose floating-point DSPs. The company is working to regain a dominant position in the merchant digital signal processor market by developing new DSPs for the personal and wireless communications applications.

Microprocessors and Embedded Processors Motorola manufactures and markets high-performance microprocessors for computer applications and embedded processors for a variety of applications, including communications, imaging, office peripherals, multimedia systems, games, and industrial controls.

The PowerPC RISC microprocessor family has replaced the 680x0 family of CISC MPUs as Motorola’s mainstream processors for computer applications. However, the 680x0 MPUs still have a strong presence in the market for embedded processors.

• PowerPC 601 Microprocessor—The first member of the PowerPC family, the 2.8-million-transistor 32-bit 601 is designed for application in desktop computers. The newest 100MHz version (601v) is based on a 0.5µm µ (0.25 m Leff) CMOS process.

• PowerPC 602 Microprocessor—The 1-million-transistor 32-bit 602 is intended for use in portable and small form factor equipment, such as PDAs.

• PowerPC 603/603e Microprocessors—The 32-bit 603 is a 1.6-million-transistor high-performance RISC MPU with integrated power management features for the notebook and energy-sensitive desktop PC markets. In 4Q96, Motorola (and its partner IBM) introduced 225MHz and 240MHz versions of the 603e, and set a goal of reaching 300MHz by the end of 1997.

• PowerPC 604/604e Microprocessors—The 32-bit 604 and 604e processors are targeted at mainstream desktop PC and server applications. The 604e is expected to surpass its current 200MHz clock rate to eventually exceed 300MHz.

1-240 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Motorola

• PowerPC 620 Microprocessor—The 620 is the first 64-bit implementation of the PowerPC RISC architecture. It is intended for use in server and high-end workstation computers. The 133MHz 620 is based on a four-level- metal 0.5µm CMOS process and has about 7 million transistors.

• PowerPC G3 Series—The new G3 Series are the initial products in a line of next-generation PowerPCs. Based on enhanced 603, 604, and 620 processor cores, the G3 processors are expected to deliver about twice the performance of the earlier PowerPC chips. Initially the G3 PowerPCs will be built using a 0.35µm CMOS process and will move, during 1997, to a 0.25µm process, giving the processors on-chip speed of 300MHz to 400MHz. The G4 Series, expected to be in systems in 1999, will feature a completely new microarchitecture for the PowerPC and will take the product line to the 0.18µm process level.

Motorola’s embedded processor products include: the 680x0 family, the ColdFire (MCF51xx and MCF52xx) processors, the Embedded PowerPC (MPC8xx and MPC6xx) processors, the FlexCore products, the 683xx family of integrated microprocessors, data communications controllers and peripherals, and physical interface products. Motorola is attempting to drive the ColdFire line into emerging applications areas such as DVD and CD- ROM players, cable modems, HDTV, and digital cameras.

Mixed-Signal ICs The company’s mixed-signal ICs are targeted at applications including wireless and wireline communications, multimedia systems, automotive equipment, and control networks.

Semiconductor Fabrication Facilities

Motorola has several fab facility projects underway, including the construction of a new 200mm wafer fab (MOS 17) in Tianjin, China, where CMOS and BiCMOS ICs will be produced. Other projects include the construction of a new fab facility (MOS 19) near Richmond, Virginia, for the production of PowerPC chips; and an expansion of the Nippon Motorola fab in Aizu, Japan. In addition, Motorola and Siemens are building a jointly owned DRAM plant in Richmond, Virginia. Construction of the joint venture, which goes by the name White Oak Semiconductor, began in 1996, with initial production of 64M parts scheduled to start in 1998.

Motorola, Ltd. Motorola, Inc. Colvilles Road 3501 Ed Bluestein Boulevard Kelvin Estate, East Kilbride Austin, Texas 78721 Glasgow G75 0TG, Scotland Telephone: (512) 928-6000 United Kingdom MOS 2 Telephone: (44) (35) 52-39101 Cleanroom size: 30,000 square feet MOS 1 Capacity (wafers/week): 10,000 Cleanroom size: 30,000 square feet Wafer size: 100mm Capacity (wafers/week): 11,000 Process: CMOS Wafer size: 150mm Products: Logic ICs, ASICs Processes: CMOS, HMOS Feature sizes: 1.2µm-2.0µm Products: MCUs, linear and logic ICs Feature sizes: 0.8µm, 1.2µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-241 Motorola North American Company Profiles

Motorola, Inc. Motorola, Inc. 3501 Ed Bluestein Boulevard 5005 East McDowell Road Austin, Texas 78721 Phoenix, Arizona 85008 Telephone: (512) 928-6000 Telephone: (602) 244-6900 MOS 3 MOS 4 Cleanroom size: 20,000 square feet Capacity (wafers/week): 3,000 Capacity (wafers/week): 12,000 Wafer size: 150mm Wafer size: 100mm Process: MOS Processes: CMOS, MOS Products: Power MOS discretes Products: MCUs Feature sizes: 0.5µm-5.0µm Feature size: 1.2µm

Motorola, Inc. Motorola, Inc. 2200 West Broadway Road 2200 West Broadway Road Mesa, Arizona 85202 Mesa, Arizona 85202 Telephone: (602) 962-2011 Telephone: (602) 962-2011 MOS 5 MOS 6 Cleanroom size: 48,000 square feet Cleanroom size: 150,000 square feet Capacity (wafers/week): 6,000 Capacity (wafers/week): 3,500 Wafer size: 125mm Wafer size: 150mm Processes: CMOS, MOS, bipolar Processes: CMOS, BiCMOS, Products: MCUs, logic, linear, and digital ICs Products: SRAMs, ASICs Feature size: 1.0µm Feature sizes: 0.8µm-1.2µm

Nippon Motorola, Ltd. Motorola, Inc. Aizu Facility 3501 Ed Bluestein Boulevard 1 Oyagi, Kofune Austin, Texas 78721 Shiokawa-machi, Yama-gun Telephone: (512) 928-6000 Fukushima-ken 969-35, Japan MOS 8 Telephone: (81) (241) 27-2231 Cleanroom size: 100,000 square feet MOS 7 Capacity (wafers/week): 7,000 Cleanroom size: 30,000 square feet Wafer size: 125mm Capacity (wafers/week): 10,000 Process: CMOS Wafer size: 150mm Products: MCUs, MPUs, SRAMs, DSPs Process: CMOS Feature sizes: 0.7µm-1.5µm Products: MCUs, logic and smart power ICs Feature sizes: 1.0µm, 1.2µm (This fab is being upgraded to produce logic ICs with 0.5µm to 0.65µm feature sizes on 200mm wafers. Operations are planned to start in 1999.)

1-242 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Motorola

Motorola, Ltd. Motorola, Inc. Colvilles Road 8105 Irvine Center Drive Kelvin Estate, East Kilbride Irvine, California 92718 Glasgow G75 0TG, Scotland, UK Telephone: (714) 932-5000 Telephone: (44) (35) 52-39101 MOS 10 MOS 9 Capacity (wafers/week): 1,500 Cleanroom size: 30,000 square feet Wafer size: 150mm Capacity (wafers/week): 7,500 Process: CMOS Wafer size: 150mm Products: DSPs, linear ICs Processes: CMOS, BiCMOS Feature size: 0.65µm Products: MPUs, MCUs, DSPs, SRAMs (Acquired from Western Digital) Feature sizes: 0.5µm, 0.65µm, 0.8µm, 1.0µm

Motorola, Inc. Motorola, Inc. 6501 William Canon Drive West 1300 North Alma School Road Austin, Texas 78735-8598 Chandler, Arizona 85224 Telephone: (512) 891-2000 Telephone: (602) 814-4691 MOS 11 MOS 12 Cleanroom size: 70,000 square feet Cleanroom size: 40,000 square feet (Class 1) Capacity (wafers/week): 4,000 Capacity (wafers/week): 4,000 Wafer size: 200mm Wafer size: 200mm Processes: CMOS, BiCMOS Process: CMOS Products: MCUs, MPUs, SRAMs, DSPs Products: MCUs, DSPs, linear ICs Feature sizes: 0.5µm-0.8µm Feature sizes: 0.5µm-0.65µm

Motorola, Inc. Motorola, Inc. 3501 Ed Bluestein Boulevard 3026 Cornwallis Road Austin, Texas 78721 Research Triangle Park, North Carolina 27709 Telephone: (512) 928-6000 Telephone: (919) 549-3100 MOS 13 MOS 15 Cleanroom size: 45,000 square feet Cleanroom size: 29,800 square feet (Class 10) Capacity (wafers/week): 5,000 Capacity (wafers/week): 5,000 Wafer size: 200mm Wafer size: 150mm Process: CMOS Process: CMOS Products: MPUs, SRAMs Products: MCUs, logic ICs Feature sizes: 0.35µm-0.5µm (0.25µm capable) Feature sizes: 0.8µm, 1.0µm (Acquired from Harris Semiconductor)

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-243 Motorola North American Company Profiles

Motorola, Ltd. Motorola Headrig Road XiQing, Tianjin, China South Queensferry MOS 17 West Lothian EH 30 9SH, Scotland Capacity (wafers/week): 3,500 MOS 16 Wafer size: 200mm Capacity (wafers/week): 5,000 Processes: CMOS, BiCMOS Wafer size: 150mm Products: MCUs Processes: BiCMOS, CMOS Feature sizes: 0.5µm-1.0µm Products: MPUs, logic ICs (Scheduled to begin production in 1998) Feature sizes: 0.5µm-0.75µm (Acquired from Digital Equipment Corporation)

Motorola, Inc. Motorola, Inc. West Creek, Virginia Development MOS 19 5005 East McDowell Road Wafer size: 200mm Phoenix, Arizona 85008 Process: CMOS Center for Integrated Systems (formerly COM 1) Products: MPUs Wafer size: 150mm Feature sizes: 0.35µm, 0.25µm Process: CMOS (Currently on hold. Construction may start in Products: Communications ICs, MCUs, DSPs late 1997 or early 1998.) Feature size: 0.65µm

Motorola, Inc. Motorola, Inc. 2200 West Broadway Road 2200 West Broadway Road Mesa, Arizona 85202 Mesa, Arizona 85202 Telephone: (602) 962-2011 Telephone: (602) 962-2011 BP 1 BP 2 Cleanroom size: 20,000 square feet Cleanroom size: 80,000 square feet Capacity (wafers/week): 10,000 Capacity (wafers/week): 10,000 Wafer size: 100mm Wafer size: 100mm Processes: Bipolar, BiCMOS Processes: Bipolar, BiCMOS Products: Linear and smart power ICs Products: Linear ICs, ASICs Feature size: 3.0µm Feature sizes: 1.0µm-2.0µm

Motorola, Inc. Motorola Semiconducteurs 2200 West Broadway Road 126 Avenue du General Eisenhower Mesa, Arizona 85202 Le Mirail BP 1029 Telephone: (602) 962-2011 31023 Toulouse Cedex, France BP 3 Telephone: (33) (5) 61-41-11-88 Cleanroom size: 20,000 square feet BP 4/Bipolar Power Fab Capacity (wafers/week): 5,000 Cleanroom size: 40,000 square feet Wafer size: 100mm Capacity (wafers/week): 7,500 Processes: Bipolar, BiCMOS` Wafer size: 100mm (moving to 150mm in 1995) Products: ASICs, logic and linear ICs Processes: Bipolar, MOS Feature size: 1.0µm Products: Linear, smart power, RF ICs, discretes/opto Feature sizes: 1.0µm-3.0µm

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Motorola, Inc. Tohoku Semiconductor Corporation 5005 East McDowell Road Izumi-ku, Sendai-shi, Phoenix, Arizona 85008 Miyagi Prefecture, Japan Telephone: (602) 244-6900 Capacity (wafers/week): 13,750 RF Power and Rectifier Fabs Wafer sizes: 150mm, 200mm Cleanroom size: 80,000 square feet Process: CMOS Capacity (wafers/week): 18,000 Products: DRAMs, SRAMs, MPUs, MCUs, MPRs Wafer sizes: 100mm, 125mm Feature sizes: 0.5µm-0.8µm Processes: Bipolar, GaAs (Joint venture with Toshiba.) Products: Discretes, RF MMICs, optoelectronics Feature sizes: 1.5µm-10.0µm

White Oak Semiconductor White Oak Technology Park Richmond, Virginia Capacity (wafers/week): 5,000 Wafer size: 200mm Process: CMOS Products: DRAMs Feature sizes: 0.25µm, 0.35µm (Joint venture with Siemens. Currently under construction. Operations are planned to begin in the spring of 1998.)

Key Agreements

• Motorola licensed the SRAM-based FPGA technology of Pilkington Microelectronics Ltd. (PMeL) of the United Kingdom in 1992. Motorola's first FPGAs were announced in 1995. In late 1995, Motorola also licensed Pilkington’s field programmable analog array (FPAA) technology. In March 1997, Motorola acquired the PMeL business from Pilkington plc., a world leader in glass products. PMeL was absorbed into Motorola’s Programmable Logic division and was renamed the Motorola Programmable Technology Center (MPTC).

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

• Motorola, Toshiba, and Fairchild Semiconductor announced in early 1997 they would jointly develop next- generation high-speed CMOS logic ICs. The three companies will work to develop 2.5V and 3.3V devices with a propagation delay time of 2ns.

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• Motorola and Mitsubishi announced a couple of joint cooperation agreements in 1996. In October, Motorola agreed to exchange its 32-bit ColdFire RISC and 68EC000 embedded MPU technologies for Mitsubishi’s M32R microprocessor with embedded DRAM technology. In December, the two companies agreed to jointly market MobileFlash™ memory devices based on the DINOR flash technology developed by Mitsubishi. Motorola and Mitsubishi have said that their alliance in flash memories may be expanded in the future to include a joint venture fab dedicated to the manufacture of flash chips.

• In mid-1996, Motorola signed a nonexclusive agreement with Hewlett-Packard’s IC Business Division to license Motorola’s 68000, 68020, and 68030 microcontrollers, as well as the ColdFire RISC microprocessor cores.

• In early 1996, Motorola and IC Works entered into an agreement under which IC Works became an authorized second source of selected Motorola CMOS and BiCMOS mixed-signal timing circuits. Moreover, the two companies will work together to broaden their existing lines with complementary timing-circuit devices.

• International Rectifier signed a cross-licensing and alternate-source agreement with Motorola in early 1995 covering power ICs and power discretes.

• Motorola and IBM are jointly developing, producing, and marketing the PowerPC family of RISC microprocessors (Apple Computer also plays a part in the design of the MPUs).

• Motorola and Cherry Semiconductor have an agreement to develop mixed-signal ASICs for the automotive market.

• Motorola has an RFID product agreement with Matsushita and ferroelectric memory pioneer Symetrix Corp. Motorola's subsidiary Indala Corp. agreed to jointly produce a family of read/write RFID chips with Matsushita incorporating Symetrix's ferroelectric memory technology (Matsushita has an equity stake in Symetrix and has the right to relicense its technology).

• Motorola is working with IBM, Lockheed Martin Federal Systems, and Lucent Technologies to establish a manufacturing infrastructure for X-ray lithography. The team hopes to have a manufacturing capability by the end of 1997.

1-246 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles National Semiconductor

NATIONAL SEMICONDUCTOR

National Semiconductor Corporation 2900 Semiconductor Drive P.O. Box 58090 Santa Clara, California 95052-8090 Telephone: (408) 721-5000 Fax: (408) 739-9803 Web Site: www.national.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: National Semiconductor Ltd. • Tokyo, Japan Telephone: (81) (43) 299-2308 • Fax: (81) (43) 299-2408

Europe: National Semiconductor GmbH • Fürstenfeldbruck, Germany Telephone: (49) (180) 532-7832 • Fax: (49) (180) 530-8586

Asia-Pacific: National Semiconductor HK Ltd. • Kowloon, Hong Kong Telephone: (852) 2737-1600 • Fax: (852) 2736-9960

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

1992 1993 1994 1995 1996 Sales 1,718 2,014 2,295 2,374 2,623 Net Income (120) 130 264 264 185 R&D Expenditures 208 229 256 283 361 Capital Expenditures 189 235 271 479 628

Employees 27,200 23,400 22,300 22,400 20,300

Company Overview and Strategy

National Semiconductor was established in Danbury, Connecticut, as a manufacturer of transistors in 1959. In 1967, the company moved to Santa Clara, California, where it began producing proprietary ICs.

National has since remained a leading supplier of analog and mixed-signal semiconductor products. The company focuses on four strategic markets: communications, personal systems, industrial, and consumer. System applications within these four markets include computers and computer peripherals, cellular phones, fax machines, local and wide area networks, telecommunications equipment, automotive electronics, industrial controls, and military and aerospace products. National is also a leader in power management solutions.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-247 National Semiconductor North American Company Profiles

At the beginning of fiscal 1997, National reorganized into four operating divisions: the Analog Division, the Communications and Consumer Division, the Personal Systems Division, and the Fairchild Semiconductor Division. In March 1997, as part of its effort to focus on systems solutions, National divested itself of its Fairchild Semiconductor business, which consisted of National’s family logic, non-volatile memory, and discrete semiconductor product lines. The high-volume, manufacturing intensive business model of Fairchild differs significantly from National’s business of providing highly integrated system chip solutions for specific applications. For fiscal 1996, the Fairchild product lines represented approximately $600 million of the consolidated revenues of the two companies.

Non-Volatile Memory 6% CMOS Logic 7% Bipolar Logic Japan 7% 10% Discretes Europe Americas 7% Analog and 24% 42% Digital and Other Mixed-Signal 60% 13% Southeast Asia 24%

1996 Sales by Product Type 1996 Sales by Geographic Region

Management

Brian Halla President and Chief Executive Officer Kamal Aggarwal Executive Vice President, Central Technology and Manufacturing Patrick J. Brockett Executive Vice President, International Sales and Marketing Donald Macleod Executive Vice President, Finance, and Chief Financial Officer Michael Bereziuk Senior Vice President and GM, Personal Systems Division John M. Clark III Senior Vice President, General Counsel, and Secretary Douglas M. McBurnie Senior Vice President and GM, Communications and Consumer Division Gobi Padmanabhan Senior Vice President, Process Technology Edgar R. Parker Senior Vice President, Quality and Reliability Robert M. Penn Senior Vice President and GM, Analog Division Richard L. Sanquini Senior Vice President, Strategic Business and Technology Roland Anderson Vice President, European Division Michael D. Burger Vice President and GM, Southeast Asia Division Gordon C. Chilton Vice President, Asia Pacific Operations David S. Dahmen Vice President and Treasurer Rich Freeman Vice President, Worldwide Wafer Fab Operations Tatsuo Ishihara Vice President, Japan Division Keith M. Kolerus Vice President, Americas Division Mark Levi Vice President, Corporate Marketing and Communications Robert B. Mahoney Vice President and Controller Prem Nath Vice President and President, Mediamatics Inc. Richard A. Wilson Vice President, Human Resources

1-248 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles National Semiconductor

Products and Processes

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

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

Analog Products Analog products and technology has been one of National’s core competencies since its inception. The company continues to be a leader in the analog IC industry. Its analog products include operational amplifiers and buffers, power management circuits, data acquisition circuits, voltage regulators and references, motor control ICs, audio ICs, custom linear ASICs (CLASICs), and other general and special purpose linear devices.

Comlinear Corporation, acquired by National in 1995, operates as a separate business unit within the Analog Division. Fort Collins, Colorado-based Comlinear is a supplier of high-frequency amplifiers, current-feedback devices, analog-to-digital converters, and other analog signal processing circuits.

Communications Products National is one of the world’s leading suppliers of LAN Ethernet and Fast Ethernet controller chipsets. The company also offers FDDI circuits.

For telecommunications applications, National offers ATM, ISDN, and Sonet/SDH families of networking devices, as well as single-chip Digital European Cordless Telephone (DECT) radio transceivers. In 1996, National’s Comlinear business unit released a new family of serial digital video chipsets for transmitting high-speed video signals through cable networks.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-249 National Semiconductor North American Company Profiles

For wireless communications applications, National offers its line of PLLatinum™ RF chips. In 1996, National introduced its Fast IR product family of wireless data communications chips using fast infrared technology.

Personal Systems Products National’s personal systems products consist of peripheral function devices that work in tandem with the host microprocessor in desktop and notebook computer systems. These products include its family of Super I/O™ products that consolidate many dependent functions on the motherboard, high-performance disk drive ICs, bus interface circuits (including USB types), data transmission chips, display drivers, clocks and clock support circuits, DRAM management ICs, and UARTs. National added low-power system logic ICs to its product portfolio in 1996 when it acquired PicoPower Technology from Cirrus Logic.

Consumer Products National’s IC products for consumer applications include audio control circuits, audio noise reduction devices, and audio amplifiers. The company’s Boomer™ series of single-chip CMOS audio amplifiers is used in wireless telephones and multimedia computers, as well as CD players, video players, and VCRs.

In March 1997, National acquired Mediamatics Inc., an MPEG audio/video decoder firm, for approximately $100 million. Mediamatics is operating as a wholly owned subsidiary based in Fremont, California. The two companies are working to incorporate National’s tuner, demodulator, A/D and D/A conversion, and other technologies with Mediamatics’ software and hardware MPEG audio/video and Dolby AC-3 audio products to create new products, or cores, for the consumer electronics market.

Also in early 1997, National sold to ISD its CompactSpeech line of RISC-based speech processors for voice applications in products such as answering machines and cordless phones.

Embedded Technologies Products This product line includes 4-bit, 8-bit (COP8 Family), and 16-bit microcontrollers and 16-bit and 32-bit microprocessors (including its NS486 embedded processor). National is also a licensee of the Advanced RISC Machines ARM 32-bit processor core.

Military and Aerospace Products National is the second largest supplier of military/aerospace-related semiconductors. It is driving advances in avionics, telecommunications, cryptography, navigation systems, and displays.

National Semiconductor's primary process technology, M2CMOS, is built around a core double-level-metal CMOS process. To this core, modules are added to provide a third level of metallization for analog, EEPROM, and BiCMOS applications. Optimized for analog and mixed-signal applications, the M2CMOS process is used by the majority of the communications and computing group product lines. A wide range of design rules (down to 0.55µm) are supported by the M2CMOS process. Plans are to further shrink the process to 0.35µm by the end of 1997.

1-250 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles National Semiconductor

In addition to its family of M2CMOS processes, National also utilizes a high-performance core VLSI bipolar process named ASPECT, which stands for Advanced Poly Emitter-Coupled Technology. ASPECT and its BiCMOS module, ABiC, are used for high-performance gate arrays, customer-owned designs, and wireless communications. ASPECT has been scaled from 2.0µm to 0.8µm and will be replaced with BiCMOS at 0.5µm and beyond. The current versions of ASPECT and ABiC offer up to four-layers of metallization in addition to a level zero local interconnect.

A variety of analog processes are used to produce a broad line of linear products. Notable process technologies are VIP, a high speed complementary bipolar process for operational amplifiers, LB, a medium voltage automotive market oriented process, LMDMOS, a high power mixed-signal process, and LFAST and LCMOS, which are used for CLASICs.

Semiconductor Fabrication Facilities

National is installing a 200mm wafer line at its fab in Maine for the fabrication of ICs with 0.35µm geometries. The new $830 million facility will include 40,000 square feet of Class 1 cleanroom and is scheduled to be ready for production in 4Q97.

National Semiconductor Corp. National Semiconductor Corp. 2900 Semiconductor Drive 2900 Semiconductor Drive Santa Clara, California 95012 Santa Clara, California 95012 Telephone: (408) 721-5000 Telephone: (408) 721-5000 Cleanroom size: 20,000 square feet Cleanroom size: 20,000 square feet Wafer size: 150mm Wafer size: 200mm Process: CMOS Processes: CMOS, BiCMOS Products: Linear ICs, ASICs, R&D Products: R&D Feature sizes: 0.55µm-0.8µm Feature sizes: 0.35µm, 0.5µm

National Semiconductor Corp. National Semiconductor Corp. 1111 West Bardin Road 1111 West Bardin Road Arlington, Texas 76017 Arlington, Texas 76017 Telephone: (817) 468-6400 Telephone: (817) 468-6400 Fab 1 Fab 2 Cleanroom size: 33,000 square feet Cleanroom size: 72,000 square feet Capacity (wafers/week): 4,500 Capacity (wafers/week): 9,850 Wafer size: 150mm Wafer size: 150mm Process: CMOS Processes: CMOS, BiCMOS Products: Logic ICs, EEPROMs, EPROMs, Products: Logic, linear, and mixed-signal ICs, ASICs microcomponents, ASICs Feature sizes: 0.35µm-0.65µm Feature size: 1.0µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-251 National Semiconductor North American Company Profiles

National Semiconductor Corp. National Semiconductor (UK) Ltd. 333 Western Avenue Earnhill Road, Larkfield Industrial Estate South Portland, Maine 04106 Greenock PA16 OEQ, Scotland, UK Telephone: (207) 775-8100 Telephone: (44) (1475) 633733 Cleanroom size: 40,000 square feet Fab 1 Wafer size: 200mm Cleanroom size: 40,300 square feet Processes: CMOS, BiCMOS Capacity (wafers/week): 10,000 Products: Linear and mixed-signal ICs Wafer size: 100mm Feature size: 0.35µm Process: Bipolar (Operations to begin in 4Q97) Products: Logic and linear ICs Feature sizes: 1.2µm-5.0µm

National Semiconductor (UK) Ltd. National Semiconductor (UK) Ltd. Earnhill Road, Larkfield Industrial Estate Earnhill Road, Larkfield Industrial Estate Greenock PA16 OEQ, Scotland, UK Greenock PA16 OEQ, Scotland, UK Telephone: (44) (1475) 633733 Telephone: (44) (1475) 633733 Fab 2 Fab 3 Cleanroom size: 18,400 square feet Cleanroom size: 30,100 square feet Capacity (wafers/week): 2,500 Capacity (wafers/week): 7,500 Wafer size: 150mm Wafer size: 150mm Processes: Bipolar, CMOS Processes: CMOS, BiCMOS Products: Linear ICs Products: Linear and logic ICs, MCUs, ASICs Feature sizes: 1.2µm-2.0µm Feature sizes: 0.8µm-1.2µm

Some of National’s IC products continue to be produced at the fabs now owned by Fairchild Semiconductor and vice versa.

National’s semiconductor assembly and test plants are located in Toa Payoh, Singapore, and Malacca, Malaysia.

Key Agreements

• National and Fairchild remain closely linked through a long-term agreement to make the transition as smooth as possible. The two companies also share and swap fab capacity.

• In early 1996, National joined up with the Belgian research firm IMEC to develop process technology for the 0.25µm and 0.18µm generations.

• National signed a three-year agreement in mid-1995 with Tower Semiconductor Ltd. under which Tower was to increase its wafer production commitment to National. Tower’s fab in Israel was originally owned by National, which retains a 3.5 percent interest in the foundry.

• In November 1994, National formed a long-term alliance with Synaptics Inc. to jointly develop computer controls based on human senses (sight, touch, and sound).

1-252 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles National Semiconductor

• National formed an alliance with 8x8 Inc. (formerly Integrated Information Technology) in 1993. The partners are developing embedded processor, video, and data compression technologies.

• National entered a resale and joint-development agreement with NEC for Ethernet ICs in 1993.

• National entered a cooperative relationship with Matsushita, including joint development and manufacturing (1992).

• National signed a 10-year semiconductor patent cross-licensing agreement with Hitachi in 1991.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-253 Oak Technology North American Company Profiles

OAK TECHNOLOGY

Oak Technology Inc. 139 Kifer Court Sunnyvale, California 94086 Telephone: (408) 737-0888 Fax: (408) 737-3838

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Oak Technology, K.K. • Musashino-shi, Tokyo, Japan Telephone: (81) (422) 56-3761

Asia-Pacific: Oak Technology, Taiwan • Taipei, Taiwan Telephone: (886) (2) 784-9123

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

1992 1993 1994 1995 1996 Sales 43 30 46 111 248 Net Income (3) (5) 4 21 37 R&D Expenditures 5 6 15 31

Employees 225 370

Company Overview and Strategy

Oak Technology Inc. designs, develops, and markets high-performance integrated semiconductors and related software solutions for OEMs worldwide who serve the multimedia PC, digital video consumer electronics, and digital office equipment markets. The company targets these markets through five core technologies: optical storage, video/graphics (2D and 3D), MPEG imaging, audio/communications, and digital imaging.

Founded in 1987, Oak’s initial product offerings were PC graphics chips. In 1988, the company expanded into Super VGA graphics controllers and grew to become a unit volume leader in the SVGA market segment between 1989 and 1991. Furthermore, Oak developed the first commercially available CD-ROM controller in 1990 and pioneered the development of an IDE/ATAPI (integrated drive electronics/AT attachment packet interface) CD- ROM controller in 1993. With the IDE/ATAPI established as an interface standard for CD-ROM drives, Oak is one of the largest merchant suppliers of CD-ROM controllers.

1-254 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Oak Technology

In October 1995, Oak Technology acquired Pixel Magic, a leader in image processing technology. Pixel Magic’s strengths in compression and image enhancement technology are expected to play a key role in the new generation of digital office equipment.

Other 9%

CD-ROM Controllers 91%

1996 Sales by Product Type

Oak plans to continue designing and developing new CD-ROM controllers, while moving aggressively into new markets to diversify its business. Oak plans to continue development of optical storage technology to address the CD-R (Recordable), CD-RW (ReWritable), and DVD-ROM markets. Oak’s other product developments include MPEG video decoders, such as the company’s MPEG-2/Dolby Digital decoder for DVD players.

Virtually all of Oak’s revenues in 1996 were from international sales, principally in Japan, Singapore, and Taiwan.

Management

David D. Tsang Chairman, President, and Chief Executive Officer Sidney Faulkner Vice President, Finance, and Chief Financial Officer Kenji Fujimoto Vice President, Oak Technology; General Manager, Oak Technology, K.K. Aydin Koc Vice President, Optical Storage Business Unit Abel Lo Vice President, Oak Technology; General Manager, Oak Technology, Taiwan Ben T. Taniguchi Vice President, Sales Mou Hsin Yang , Ph.D. Vice President, Operations

Products and Processes

Oak’s products include CD-ROM controllers, MPEG video decoders, video compression/expansion processors (VCEPs), 64-bit multimedia video/graphics accelerators, and 16-bit digital audio controllers.

Recent product announcements include the OTI-975 CD-R/CD-RW controller for CD-R/CD-RW drives, the OTI- 64217 Eon™ 64-bit DirectX accelerator for video/graphics applications, and an audio/communications accelerator called the OTI-611 TelAudio 3D™.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-255 Oak Technology North American Company Profiles

Semiconductor Fabrication Facilities

Oak Technology is a fabless IC supplier. The company's devices are produced by wafer foundry companies.

In 1995, Oak Technology entered into several long-term agreements with TSMC and Chartered Semiconductor, securing additional wafer capacity through 2001. Also in 1995, the company entered into agreement with UMC to form, along with other investors, a separate Taiwanese company called United Integrated Circuits Corporation (UICC), for the manufacture of ICs. Oak agreed to invest approximately $60 million for a 10 percent equity position in UICC. UICC began manufacturing 200mm wafers in mid-1997.

1-256 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles OPTi

OPTI

OPTi Inc. 888 Tasman Drive Milpitas, California 95035 Telephone: (408) 486-8000 Fax: (408) 486-8001 Web Site: www.opti.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: OPTi Japan K.K. • Tokyo, Japan Telephone: (81) (3) 5454-0178 • Fax: (81) (3) 5454-0168

Europe: OPTi Inc. • Oxon, United Kingdom Telephone: (44) (1869) 369161

Asia-Pacific: OPTi Inc. • Taipei, Taiwan Telephone: (886) (2) 325-8520 • Fax: (886) (2) 325-6520

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

1992 1993 1994 1995 1996 Sales 98 85 134 164 119 Net Income 9 9 15 11 (14) R&D Expenditures 6 7 9 11 14

Employees 220 224 210

Company Overview and Strategy

OPTi Inc. was spun out from Chips and Technologies in 1989 to focus on developing and supplying core logic chipsets to the personal computer industry. The company’s products are divided into three core areas within the PC industry: notebook products, desktop products, and multimedia products. In addition to its core logic chipsets, OPTi supplies peripheral and multimedia chipsets as well as custom ICs for audio/telephone, power management, graphics/video, and storage control applications. The company’s chipsets provide in one or a few semiconductor devices the core logic functions of a PC as well as the multimedia-related functions.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-257 OPTi North American Company Profiles

OPTi’s core logic chipset sales shifted in 1996. In 1995, its core logic chipset sales were largely made up of desktop logic chipsets. However, due to Intel’s aggressive moves to gain marketshare in the desktop core logic market, OPTi shifted to notebook logic chipsets, which represented 59 percent of core logic chipset revenues in 1996, up from 14 percent in 1995.

Europe/Other 6%

North America 14% Audio/ Graphics Chips 29%

Core Logic Chipsets Far East 71% 80%

1996 Sales by Product Type 1996 Sales by Geographic Region

Management

Jerry Chang Chairman and Chief Executive Officer Stephen Dukker President David Zacarias Chief Financial Officer Patrick Ang Vice President, Multimedia Products Jun-Wei Chen Vice President, Foundry and Technology Services Richard D’Sa Vice President, North America and Europe Sales George Fang Vice President, Asia-Pacific Sales Steve Wu Vice President, Mobile Products

Products and Processes

OPTI’s product offering includes multimedia and peripheral chipsets, core logic chipsets, and audio controllers, as well as custom ICs.

The initial member of its Viper family of Pentium-class chipsets was unveiled in 1994. The second member of the family, the Viper-N, is designed for Pentium PCI-based portable computers, and the third member, the Viper-M, is a multimedia-enhanced chipset for Pentium PCI-based desktop computers. In addition to the Pentium, the Viper products will support compatible AMD and Cyrix microprocessors.

In the first part of 1997, OPTi introduced two 64-bit single-chip core logic devices, the Vendetta for Pentium desktop computers and the Firestar for Pentium notebook computers. The Vendetta is the first core logic product to incorporate SoundBlaster audio functionality for higher integration and lower cost solutions, and features auxiliary 66MHz PCI for support of Intel’s new accelerated graphics port architecture. Vendetta features an array of control and monitoring options and can be scaled to work in entry level to high-end workstations and servers. Firestar combines high performance features with space saving design capabilities and power management for mobile and embedded applications.

1-258 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles OPTi

In addition to Vendetta and Firestar, OPTi introduced the Discovery chipset for Pentium Pro-based desktop systems. The chipset is a 64-bit core logic product that features an integrated PCI and unified memory architecture.

In 1993, OPTi began to broaden its product line to include peripheral chips. In the fourth quarter of that year, the company acquired MediaChips Inc., a designer of audio chips. Through the MediaChips acquisition, OPTi began supplying 16-bit audio controller ICs featuring an on-chip sigma-delta audio codec/mixer. That move was followed by an entrance into the graphics chip market with an LCD controller for notebook computers in early 1994. Its other peripheral ICs include IDE disk drive controllers and bus-interface bridge chips.

The process technologies used by OPTi in the design and manufacture of its semiconductors include 0.6µm and 0.8µm CMOS.

Semiconductor Fabrication Facilities

Fabless OPTi has three principal foundry partners, IBM Microelectronics, Ricoh, and UMC. The company also uses, to a certain extent, Chartered Semiconductor, TSMC, Samsung, Winbond, and Toshiba for the fabrication of its wafers.

In 1995, OPTi signed a manufacturing and foundry venture agreement with United Microelectronics Corporation (UMC). Under the agreement, OPTi agreed to make a $30 million equity investment in UMC’s joint venture IC foundry, called United Integrated Circuits Corporation (UICC), located in Taiwan. The fab began producing 200mm wafers in mid-1997.

Key Agreements

• In July 1996, OPTi licensed its super VGA LCD controller to NEC Electronics who planned to integrate the device into embedded applications such as handheld terminals and PDAs.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-259 Orbit Semiconductor North American Company Profiles

ORBIT SEMICONDUCTOR

Orbit Semiconductor, Inc. 116 Java Drive Sunnyvale, California 94089 Telephone: (408) 744-1800 Fax: (408) 747-1263 Web Site: www.orbitsemi.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Orbit Europe • Surrey, England Telephone: (44) (1932) 346288 • Fax: (44) (1932) 347110

Asia-Pacific: DII Group • Singapore Telephone: (65) 298-0866 • Fax: (65) 298-3689

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

1992 1993 1994 1995 1996 Corporate (DII Group) Sales 258 397 459 Net Income 9 23 10

Semiconductor Sales 25 34 50 62 64

Employees (Orbit) 120 154 184 278 400

Company Overview and Strategy

Orbit Semiconductor specializes in semiconductor design, manufacturing, and engineering support services that allow system designers to manage application-specific integrated circuit (ASIC) development, production, scheduling, and inventory control. In August 1996, Orbit Semiconductor was acquired by DII Group, Inc., who serves as a global network of companies that provide design, manufacturing, product development, and support services to the electronics industry. Orbit operates as a wholly-owned subsidiary of DII Group.

Orbit's customers include companies that design various electronic systems and products for application in the medical, communications, consumer, aerospace and military, computers and peripherals, and other industries.

1-260 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Orbit Semiconductor

Asia-Pacific

PCs 8% 2% Consumer Other Medical Products 15% Europe 24% 6% 14% Military Communications 10% 16% MPRs North America Industrial 13% 78% 14%

1996 Corporate Sales by 1996 Corporate Sales by End-Use Market Geographic Region

In October 1992, Orbit introduced its Encore! program that converts FPGAs and other IC designs into Orbit digital gate arrays for more cost-effective solutions or accelerated delivery. Orbit also offers a mixed-signal (analog/digital) design service that provides rapid development of custom mixed-signal ASICs. A shared wafer-processing program, Foresight, is provided for cost-effective prototyping of mixed-signal ASICs. In addition, Orbit offers contract manufacturing programs including hi-rel manufacturing, a low-cost prototyping service, and charge coupled device (CCD) fabrication.

Management

DII Group Ronald R. Budacz Chairman and Chief Executive Officer Carl R. Vertuca, Jr. Senior Vice President and Chief Financial Officer C.Y. Cheong Vice President and Managing Director, Asia-Pacific

Orbit Semiconductor Gary P. Kennedy President and Chief Executive Officer, Orbit Semiconductor Steve Kam Executive Vice President, Technology and Chief Technology Officer Richard B. Kash Executive Vice President, Mixed-Signal Design Joseph K. Wai Executive Vice President, Chief Operating Officer, and Secretary Edward Rodriguez Group Vice President, Sales, Marketing, Engineering, and Customer Service Fernando A. Bettencourt Vice President, Operations Brian Gillings Vice President, Marketing George W. Lewicki Vice President, Software Engineering Betty Y. Newkirk Vice President, Foundry Business Unit and Customer Service

Products and Processes

Orbit's manufacturing services include several IC fabrication programs. The most popular program, Encore!, is a service that converts netlists for gate arrays or FPGAs into Orbit gate arrays with 270 to 37,000 usable gates. The resulting circuits are functionally equivalent, but lower in price. Another program, Foresight, supports multi- project, multi-technology runs and reduces NRE charges. Subscribers of Foresight's processes see lower costs because they share space on masks and wafers.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-261 Orbit Semiconductor North American Company Profiles

Both Encore! and Foresight users have access to all of Orbit's processes. They include: 1.0µm and 1.2µm N-well and P-well CMOS processes with various options such as a second poly layer for capacitors and gates, NPN bipolar transistors with high or low collector resistances, classical EEPROM, imaging buried channel CCDs with an oxide nitride gate insulator to maintain low leakage on large arrays, and conventional N-channel and P-channel transistors to allow on-chip digital logic.

Orbit offers additional programs based on its independent manufacturing capabilities. Its low-volume manufacturing programs include a "High Reliability Manufacturing Program" in support of medical companies and military contractors and a low-cost prototyping service, typically used by fabless semiconductor companies.

Semiconductor Fabrication Facilities

In late 1996, Orbit purchased Paradigm’s 0.6µm, 150mm wafer production facility for $20 million. Orbit plans to move all existing property from its Sunnyvale facility to the San Jose fab by the end of 1997.

Orbit also maintains a relationship with Chartered Semiconductor to supplement its wafer production capabilities.

Orbit Semiconductor, Inc. Orbit Semiconductor, Inc. 169 Java Drive 71 Vista Montana Sunnyvale, California 94089 San Jose, California 95134 Cleanroom size: 12,500 square feet Cleanroom size: 18,000 square feet Capacity (wafers/week): 2,400 Capacity (wafer/week): 1,250 Wafer size: 150mm Wafer size: 150mm Processes: CMOS, CCD Process: CMOS Products: ASICs, foundry services Products: ASICs, foundry services Feature sizes: 0.8µm, 1.0µm, 1.2µm, 2.0µm Feature sizes: 0.6µm, 0.8µm (0.5µm in future) (Will be closed by end of 1997) (Purchased from Paradigm in 1996)

1-262 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Paradigm Technology

PARADIGM TECHNOLOGY

Paradigm Technology, Inc. 694 Tasman Drive Milpitas, California 95035 Telephone: (408) 954-0500 Fax: (408) 954-8913 Web Site: www.prdm.com

Fabless IC Supplier

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

1992 * 1993 * 1994 * 1995 1996 Sales 15 25 32 52 36 Net Income (9) (18) (4) 5 (36) R&D Expenditures 12156

Employees 140 190 205 244 85

*Data for fiscal years ended March 31. In 1994, the company changed its fiscal year ending date to the end of December. For the period April 1 to December 31, 1994, Paradigm’s sales totaled $26 million and net income was $11 million.

Company Overview and Strategy

Paradigm Technology designs and markets high-speed, high-density SRAMs and SRAM modules. Target markets for its SRAM products include telecommunications, networks, workstations, high-performance PCs, advanced modems, and complex military/aerospace systems. The company focuses on the high-performance, 10ns and faster, segment of the SRAM industry. In 1996, 10ns and faster SRAMs accounted for approximately 36 percent of the company’s sales.

When established in 1987, Paradigm Technology initially focused on the development of high-speed 256K and 1M SRAMs. In 1989, the company opened a wafer fabrication facility in San Jose, California. Costs associated with operating the fab and developing its technology, coupled with a less than optimal sales mix, drove the company to bankruptcy in 1994. The majority of Paradigm’s high-performance SRAM products were being sold into lower margin commodity markets. As part of the restructuring in 1994, Paradigm’s new management team adopted a strategy of focusing on emerging markets for higher performance asynchronous and synchronous SRAMs and specialty products. With the help of investments from Singapore-based AMCA Limited and National Semiconductor, the company emerged with record sales in the quarter ended September 1994. Unfortunately, the weakness in the SRAM market that began in late 1995 has had an adverse effect on Paradigm’s revenues.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-263 Paradigm Technology North American Company Profiles

In 2Q96, Paradigm made a move to expand its product line beyond SRAMs by acquiring startup NewLogic Corporation, a developer of logic designs with large memory arrays. However, in early 1997, the NewLogic operation was closed down so that Paradigm could focus on its core SRAM products and markets. In November 1996, Paradigm adopted a fabless supplier strategy by selling its fab to Orbit Semiconductor, thereby gaining greater flexibility and lowering it fixed costs. Orbit purchased Paradigm’s fab, which was newly converted from 125mm to 150mm wafers, for $20 million.

Approximately 25 percent of Paradigm’s sales in 1996 were attributable to sales outside the U.S., primarily in Asia and Europe.

Management

Michael Gulett President and Chief Executive Officer James H. Boswell Vice President, Sales and Marketing David G. Campbell Vice President, Finance and Chief Financial Officer Dennis McDonald Vice President, Human Resources Richard Morley Vice President, Operations Philip Siu Vice President, Engineering

Products and Processes

Paradigm Technology’s products include high-performance 256K, 1M, and 4M asynchronous SRAMs, 100MHz FIFO buffer-memory chips, high-speed processor-specific synchronous burst SRAMs, pipelined burst SRAMs, and high-speed cache RAM modules. Paradigm’s most recent product announcements include a 256K CMOS SRAM featuring an access time of 7ns.

The proprietary technology of Paradigm involves a 0.6µm dual-well CMOS process consisting of two polysilicon layers and two metal layers, with three of the four layers fully configurable. The company has also developed a 0.35µm process.

Semiconductor Fabrication Facilities

In November 1996, Paradigm sold its wafer manufacturing facility to Orbit Semiconductor and therefore, now operates as a fabless IC supplier. Paradigm has established foundry agreements with Orbit and Atmel in the U.S., NKK Corporation in Japan, and UMC in Taiwan.

Key Agreements

• In November 1996, Paradigm sold its wafer fab facility to Orbit Semiconductor for $20 million. After the purchasing agreement was complete, the two companies entered into an agreement that calls for Paradigm to receive a supply of wafers from Orbit over a specified timeperiod.

1-264 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Paradigm Technology

• Paradigm and Atmel signed a five-year manufacturing, product, and technology agreement in May 1995. Terms of the agreement include guaranteed wafer supply from Atmel to Paradigm for a five year period. Moreover, Paradigm transferred its 0.6µm SRAM process to Atmel, and the two companies are jointly developing 0.5µm and 0.4µm technologies. Atmel also purchased a significant equity interest in Paradigm.

• Paradigm has an extensive relationship with Japan's NKK Corporation. NKK holds a 10 percent stake in Paradigm as well as a technology and product license for 256K and 1M SRAMs and FIFOs. The two companies worked together to codevelop the latest 4M technology. Paradigm also has access to NKK's state-of-the-art 200mm wafer fabrication facility in Japan.

• Paradigm has a strategic alliance with National Semiconductor that provides National exclusive marketing and sales rights to Paradigm’s products for military and aerospace applications. National also made an equity investment in Paradigm.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-265 Peregrine Semiconductor North American Company Profiles

PEREGRINE SEMICONDUCTOR

Peregrine Semiconductor Corporation 6175 Nancy Ridge Drive San Diego, California 92121 Telephone: (619) 455-0660 Fax: (619) 455-0770 Web Site: www.peregrine-semi.com

Fabless IC Supplier

Employees 25

Company Overview and Strategy

Founded in 1990, Peregrine Semiconductor develops and markets high-performance commercial integrated circuits based on its patented UTSi™ (ultra thin silicon) process. Initially, Peregrine focused on developing the UTSi process and today, through joint research and product development, uses this proprietary technology to develop high-performance products targeted at specific applications such as wireless communications, portable computing, and high-speed memory.

Management

Ronald E. Reedy, Ph.D. Chairman, President, and Chief Executive Officer James S. Cable Vice President, Technology and Operations Bill Peavey Vice President and Chief Financial Officer David R. Staab Vice President, Engineering and Design Milt Mills Director ,Sales Jon Siann Director, Marketing

Products and Processes

Peregrine products include the Microcommunicator™ family of frequency synthesizers, which are capable of operating at frequencies as high as 2.5GHz. This family of communications products provides integrated solutions to wireless system design problems in applications such as satellites, cellular and cordless telephones, and cable and direct broadcast satellite televisions. Other products produced by Peregrine include a Xilinx-compatible FPGA, a 64K SRAM, and other various microwave devices. Peregrine’s UTSi FPGA chip was developed in cooperation with Xilinx. Peregrine has a license to manufacture and market 3V UTSi versions of Xilinx’s XE3000 family.

Semiconductor Fabrication Facilities

The company's devices are currently produced by Asahi Kasei Microsystems in Japan.

1-266 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Peregrine Semiconductor

Key Agreements

• In January 1996, Peregrine signed a six-year fab agreement with Asahi Kasei Microsystems Co. (AKM) of Japan. AKM will provide wafer fabrication to Peregrine in exchange for process technologies. The two companies are also negotiating a joint development agreement for future products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-267 Pericom Semiconductor North American Company Profiles

PERICOM SEMICONDUCTOR

Pericom Semiconductor Corporation 2380 Bering Drive San Jose, California 95131 Telephone: (408) 435-0800 Fax: (408) 435-1100 Web Site: www.pericom.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Pericom • Bridport, Corset, United Kingdom Telephone: (44) (1308) 458986

Asia-Pacific: Pericom Technology (Shanghai) Co., Ltd. • Shanghai, China Telephone: (86) (21) 6485-0576 • Fax: (86) (21) 6485-2181

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

1992 1993 1994 1995 1996 Sales 0.5 6 19 23 41

Employees 26 40 50 100 122

Company Overview and Strategy

Pericom Semiconductor, founded in 1990, designs and markets ultra fast digital and mixed-signal CMOS and BiCMOS ICs that provide solutions to bottlenecks in high-performance computing and communications systems. The company's first products were high-performance cache SRAMs. However, its current product line includes CMOS 5V and 3V logic clock generators and drivers, networking ICs, and application-specific switching devices. Pericom's 3V, 5V, and 3V/5V products are applicable in computing, data communications, and networking systems.

Founded originally as Pioneer Semiconductor, the company changed its name to Pericom Semiconductor in 1993 to avoid becoming confused with a number of other technology companies with "Pioneer" in their names.

1-268 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Pericom Semiconductor

Management

Alex Hui President and Chief Executive Officer Patrick Brennan Vice President, Finance, and Chief Financial Officer John Chi-Hung Hui, Ph.D. Vice President, Technology Hank O'Hara Vice President, Sales Michael Yen Vice President, Applications and Systems Engineering Van Lewing Director, Marketing Dan Wark Director, Operations

Products and Processes

Employing proprietary 0.8µm and 0.6µm CMOS and BiCMOS technologies, Pericom provides advanced logic, clock, and mixed-signal products.

• High-speed FCT bus interface logic chips with propagation delays as low as 3.2ns • High-speed clock distribution series, including PLL implementation for high clock rates • Fast switching, low impedance bus switches and true analog switches • Wide architecture 16-bit FCT logic families • Low voltage 3.3V, high-performance 8- and 16-bit FCT, LPT, LCX, and ALVCH logic families • Frequency synthesizer ICs that provide several PLL generated output frequencies for PCs, modems, and laser printers • Networking products for Token Ring, 100VG, and Fast Ethernet

Semiconductor Fabrication Facilities

Pericom has foundry relationships with Austria Mikro Systeme, Chartered Semiconductor, New Japan Radio, and TSMC.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-269 Power Integrations North American Company Profiles

POWER INTEGRATIONS

Power Integrations Inc. 477 North Mathilda Avenue Sunnyvale, California 94086 Telephone: (408) 523-9200 Fax: (408) 523-9300

Fabless IC Supplier

Employees 90

Regional Headquarters/Representative Locations

Japan: Power Integrations, Inc. • Kohoku-ku, Yokohama-shi, Japan Telephone: (81) (45) 471-1021 • Fax: (81) (45) 471-3717

Europe: Power Integrations Europe Ltd. • Windsor, Bershire, United Kingdom Telephone: (44) (1753) 622-208 • Fax: (44) (1753) 622-209

Company Overview and Strategy

Power Integrations, founded in 1988, is a privately held company focused on the power conversion market. The company designs, develops, and markets integrated circuits that combine low-voltage analog and digital control capability with high-voltage power output devices in monolithic form.

The company's technology is used to build innovative high-voltage products for the power supply, battery charging, telecommunications, motor control, and lighting markets.

Management

Howard Earhart President and Chief Executive Officer Balu Balakrishnan Vice President, Marketing and Engineering Vladimir Rumennik, Ph.D. Vice President, Technology Dan Selleck Vice President, Sales Robert Staples Vice President, Finance and Administration Clifford Walker Vice President, Corporate Development Shyam Dujari Director, Marketing

1-270 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Power Integrations

Products and Processes

Power Integrations utilizes a standard CMOS process and adds one implant to generate high voltage MOSFETs integrated into power supply and interface products. The process is capable of combining 1,200V N-channel MOSFETs, 700V P-channel MOSFETs, and 400V L-IGBTs with 5-15V CMOS and bipolar logic devices.

TOPSwitch®-II is the newest family of products for power conversion applications. In addition to integration benefits of the high voltage process technology, this family also has patented circuit and system design innovations.

The company's power supply IC product line is targeted at the needs of portable and small form-factor products such as portable computers, camcorders, cellular telephones, PBX line cards, and feature phones. The high- voltage outputs of Power Integrations' power supply circuits provide universal input voltage (85-256 VAC) capability. The high-frequency switching capability and low system component count enables low-cost, small form-factor power supply/chargers to be realized. The power supply ICs cover universal input voltage applications from 1 watts to 90 watts (1 watts to 50 watts from 100 VAC). A one-watt buck converter for non-isolated ISDN applications is also available.

Its interface IC products are designed for use in energy-efficient, variable-speed electric motors for appliances such as room air conditioners. The high-voltage capability of these products provides cost-effective level shifting capability and control for those 110/220 VAC applications. The latest product is the INT 100 half-bridge MOSFET driver, providing 800-volt level shifting and control for electric motors in the 50W to 3kW power range.

Semiconductor Fabrication Facilities

Foundry relationships with Panasonic Semiconductor group of Matsushita and Oki Electric have been established for wafer fabrication utilizing Power Integrations' proprietary process.

Key Agreements

• Power Integrations granted Matsushita access to its technology and products for internal consumption worldwide, and for non-exclusive distribution of the products in Japan and other selected geographical areas in return for providing foundry support.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-271 QLogic North American Company Profiles

QLOGIC

QLogic Corporation 3545 Harbor Boulevard Costa Mesa, California 92626 Telephone: (714) 438-2200 Fax: (714) 668-5008 Web Site: www.qlc.com

Fabless IC Supplier

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

1993 1994 1995 1996 1997 Sales 52 45 58 54 70 Net Income 6 (5) 2 1 6 R&D Expenditures 998710

Employees 130 161 145 190

Company Overview and Strategy

QLogic Corporation develops and markets a full line of host and peripheral I/O controller chips and host adapter cards used to connect hard disk drives, optical storage devices, CD-ROMs, and other peripherals to computer systems. In addition, the company develops small computer system interface (SCSI) target and disk controller chips used in peripherals and host computers themselves.

QLogic was originally known as Emulex Micro Devices (EMD), a subsidiary of Emulex Corporation. In 1993, the subsidiary changed its name to QLogic and became a publicly-held company in February of 1994.

To position itself as a major supplier of computer and peripheral controllers, the company is expanding its SCSI technology. QLogic is devoted to providing its customers with products that optimize the transfer and management of data between computer systems and peripheral devices, by developing IC chips, host adapters boards, and software that combine a range of features and technologies.

In 1996, 55 percent of revenues were to foreign customers, primarily in the Pacific Rim region.

1-272 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles QLogic

Management

Gary E. Liebl Chairman H.K. Desai President and Chief Executive Officer Thomas R. Anderson Vice President and Chief Financial Officer Mark Edwards Vice President, Sales and Corporate Marketing Larry Fortmuller Vice President and GM, Computer Systems Group David Tovey Vice President and GM, Peripheral Products Group

Products and Processes

QLogic’s semiconductor product families include:

• The FAS (Fast Architecture SCSI) Family of fast and wide SCSI controller ICs for host and peripheral applications.

• The ESP (Enhanced SCSI Processor) Family of SCSI controller ICs based on the industry standard advanced SCSI core.

• The TEC (Triple Embedded Disk Controller) Family of 8-bit and 16-bit wide SCSI HDD controllers.

• The ISP (Intelligent SCSI Processor) Family of fast and wide, bus master host adapter ICs for 32-bit interfaces.

QLogic is working with Apple Computer to develop a new version of its high performance Fast!SCSI IQ PCI card for the Power Macintosh platform.

Semiconductor Fabrication Facilities

The company relies on outside vendors for the manufacturing of its semiconductor and circuit board products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-273 Quality Semiconductor North American Company Profiles

QUALITY SEMICONDUCTOR

Quality Semiconductor, Inc. 851 Martin Avenue Santa Clara, California 95050-2903 Telephone: (408) 450-8000 Fax: (408) 496-0773 Web Site: www.qualitysemi.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Quality Semiconductor, Inc. • Hampshire, United Kingdom Telephone: (44) (1420) 563333 • Fax: (44) (1420) 561142

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

1992 1993 1994 1995 1996 Sales 18 28 37 46 45 Net Income (5) 3 3 5 (1) R&D Expenditures 5 6 7 Capital Expenditures 1 2 7

Employees 100 160 160 160 197

Company Overview and Strategy

Established in 1989, Quality Semiconductor, Inc. (QSI) is a provider of high-performance logic devices and networking and logic-intensive memory semiconductor products. Quality's strategy is to go after existing areas with higher performance parts, then create new niches that can be developed. The company targets systems manufacturers principally in the networking, personal computer and workstation, and communications industries, but also sells devices for military and high-reliability applications.

In early 1996, Quality Semiconductor purchased AWA MicroElectronics, Pty. Ltd. (now Quality Semiconductor Australia) from AWA Limited, acquiring AWA’s fab facility, foundry business, and design center in Australia. During 1996, QSI upgraded the facility from 1.5µm to 0.8µm process technologies. The new subsidiary continues to provide foundry services to AWA and its existing foundry customers. AWA Limited retains some ownership in the new subsidiary and is jointly developing new products and technologies with Quality Semiconductor.

1-274 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Quality Semiconductor

Australia Europe 4% 5%

Far East 34% United States 57%

1996 Sales by Geographic Region

Management

Quality Semiconductor Inc. Chun P. Chiu Chairman and Chief Technical Officer R. Paul Gupta President and Chief Executive Officer Edward J. Bradley, Jr. Vice President, Manufacturing Albert R. Enamait Vice President, Sales and Marketing Farzin Firoozmand Vice President, Networking Products Jacob H.V. Foraker Vice President, Logic and Memory Gilbert C. Jones Vice President, Marketing Operations Stephen H. Vonderach Vice President, Finance, and Chief Financial Officer

Quality Semiconductor Australia Phil Cavanagh President Andy Brawley Manager, Operations Andrew Greatbach Manager, Marketing Clive Potter Manager, Engineering

Products and Processes

Quality Semiconductor produces high-performance 5V and 3.3V CMOS FCT logic devices, high-speed digital logic switches, clock management circuits, fast FIFOs, analog devices, JTAG devices, and advanced networking products. Sales of interface logic devices account for a significant majority of the company’s net product revenues.

Networking Products—QSI offers advanced CMOS Fast Ethernet transceivers for access equipment and LAN applications, as well as a 4:1 ATM multiplexer/demultiplexer with on-chip FIFO buffering for ATM switch fabric and transmission applications.

Specialty Memory Products—QSI’s memory products include a variety of asynchronous and synchronous FIFOs, as well as dual-port and shared-port RAMs.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-275 Quality Semiconductor North American Company Profiles

Logic Products—QSI offers a variety of standard 3.3V and 5V FCT logic devices in 8-, 16-, and 32-bit configurations, as well as a new line of LCX logic devices for mixed-voltage applications.

Clock Management Devices—These products include high-performance 3.3V and 5V devices with low skew, low jitter, and low EMI-noise characteristics.

QuickSwitch® Products—The QuickSwitch product line was invented to meet the requirement for zero propagation delay multiplexing and switching functions in high-performance computing and networking systems.

QuickScan™ Products—These are derived from QSI’s QuickSwitch product line and add JTAG boundary scan capabilities.

Analog Switch Devices—This is a new family of devices designed for advanced high-performance video, audio, and networking applications.

All of QSI’s products are manufactured using advanced CMOS process technologies with geometries ranging from 0.8µm to 1.5µm. A 0.6µm CMOS process is under development.

Semiconductor Fabrication Facilities

In addition to using its newly acquired fabrication facility in Australia, QSI has foundry partners from which it receives fabricated wafers. Its current foundry partners include Seiko Instruments, Ricoh, Yamaha, and TSMC. In 1996, approximately 85 percent of QSI’s wafers were manufactured by Seiko and Ricoh.

Quality Semiconductor Australia, Pty, Ltd. (QSA) 8 Australia Avenue Homebush, NSW, 2140 Australia Telephone: (61) (2) 763-4105 Fax: (61) (2) 746-1501 Cleanroom size: 5,000 square-feet Capacity (wafers/week): 1,250 Wafer size: 150mm Processes: CMOS, BiCMOS Products: Logic and memory ICs, ASICs, foundry services Feature sizes: 0.8µm, 1.0µm, 1.2µm, 1.5µm (0.6µm in development)

Key Agreements

• Quality is developing new products and technologies through a strategic alliance with AWA Limited.

• Quality formed a second-source and product development alliance with Sharp Corporation in April 1995 that covers a variety of specialty memory products for advanced networking, multimedia data communications, and high-performance I/O subsystem applications.

1-276 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles QuickLogic

QUICKLOGIC

QuickLogic Corporation 1277 Orleans Drive Sunnyvale, California 94089-1138 Telephone: (408) 990-4000 Fax: (408) 990-4040 Web Site: www.quicklogic.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: QuickLogic Corporation • London, England Telephone: (44) (181) 563-7624 • Fax: (44) (181) 563-0489

Financial History ($M)

1994 1995 1996 Sales 7 15 30

Employees 40 90 115

Company Overview and Strategy

QuickLogic was founded in 1988 by the inventors of the programmable array logic (PAL) device. Today, the privately-held company designs and sells high density CMOS field programmable gate arrays (FPGAs) featuring high speeds and low power consumption, along with high productivity design software.

QuickLogic’s FPGAs compete with conventional high density programmable local devices and gate arrays in applications such as graphics processing, high-speed memory control, video and image processing, DSP support logic, and data acquisition.

QuickLogic has indicated that it may announce its initial public offering sometime during 1997, depending on market conditions. Currently, international sales represent about 40 percent of QuickLogic’s total sales, and the company is working to increase that number.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-277 QuickLogic North American Company Profiles

Management

Irwin B. Federman Chairman E. Thomas Hart President and Chief Executive Officer John Birkner Vice President, CAE Andrew Chan Vice President, Product Development H.T. Chua Vice President, Technology Development Richard Johnson Vice President, Worldwide Sales Vincent McCord Vice President, Finance, and Chief Financial Officer Philip Ong Vice President, Operations Ronald Zimmerman Vice President, Human Relations Edward Smith Director, Marketing

Products and Processes

QuickLogic's programmable ASIC (pASIC) devices are implemented in a submicron CMOS process and deliver high speeds and low power consumption. All of the company's existing devices are offered in both 5V and 3.3V power supply versions. They are based on QuickLogic's proprietary metal layer, amorphous silicon ViaLink® antifuse programming element technology that offers high speeds and high densities (up to 20,000 usable gates). QuickLogic also supplies a comprehensive set of CAE development tools, operating on PCs and popular workstation platforms. An open architecture approach allows popular third-party tools to interface to the company's development environment. pASIC 1 FPGA Family—Consists of four parts in densities ranging from 1,000 usable gates to 8,000 usable gates (96 to 768 logic cells) and I/O pin counts ranging from 64 pins to 180 pins. The pASIC 1 devices are based on high-speed, low-power, two-layer-metal 0.65µm CMOS process technology. pASIC 2 FPGA Family—Consists of seven parts in densities ranging from 3,000 usable gates to 20,000 usable gates (192 to 1,440 logic cells) and I/O pin counts ranging from 120 pins to 336 pins. The pASIC 2 devices are based on high-speed, low-power, three-layer-metal 0.65µm CMOS process technology.

Future product development includes a hybrid PLD device that will combine FPGA and ASIC functionality. The company plans to introduce this new product family during 1997.

Semiconductor Fabrication Facilities

QuickLogic does not fabricate its own ICs, it has a manufacturing and technology agreement with Cypress Semiconductor. However, QuickLogic does perform all FPGA product testing for both companies. To supplement the capacity it receives from Cypress, QuickLogic established a foundry agreement with TSMC in 1996 (see Key Agreements).

1-278 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles QuickLogic

Key Agreements

• In February 1997, Cypress and QuickLogic announced the cancellation of a previous joint-develop, licensing, and foundry agreement for high-performance FPGA products and released plans for establishing a new foundry alliance. As part of a new five-year agreement, Cypress will no longer market and sell antifuse FPGA products, but will continue to serve as a foundry for QuickLogic’s FPGAs. In addition, QuickLogic agreed to purchase all of Cypress’s existing FPGA inventory. Cypress holds a stake of less than 10 percent in QuickLogic.

• In late 1996, QuickLogic established a foundry agreement with Taiwan foundry, TSMC. The two companies will work together to integrate QuickLogic’s antifuse technology into TSMC’s 0.35µm process technology. Originally, the agreement called for using 0.5µm technology, however, a decision was later announced to bypass 0.5µm and move directly to a 0.35µm process. The agreement also allows QuickLogic to move from 150mm to 200mm wafers.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-279 Ramtron North American Company Profiles

RAMTRON

Ramtron International Corporation 1850 Ramtron Drive Colorado Springs, Colorado 80921 Telephone: (719) 481-7000 Fax: (719) 481-9170 Web Site: www.csn.net/ramtron

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Ramtron K.K. • Yokohama, Japan Telephone: (81) (45) 473-9372 • Fax: (81) (45) 473-9373

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

1992 1993 1994 1995 1996 Sales 1 7 20 29 31 Net Income (23) (27) (20) (2) (6) R&D Expenditures 15 19 16 11 13 Capital Expenditures 33211

Employees 129 140 121 88 105

Company Overview and Strategy

Ramtron was established in 1984 to produce non-volatile memory products by combining the unique characteristics of ferroelectric materials with conventional integrated circuitry. The company was the first to manufacture ferroelectric memory devices. It holds 89 U.S. and international patents covering its proprietary technologies and products and more than 90 are pending.

Ramtron's principal business focus is directed toward the development of the commercial manufacture of ferroelectric RAMs (FRAMs). The company sites benefits of FRAMs as having fast write times, high write endurance, non-volatile retention, small form factors, and minimal power consumption. Applications for FRAM devices include consumer electronics, business machines, communications equipment, test instruments, industrial controls, and medical equipment.

Besides ferroelectric RAMs, Ramtron is also involved in the development and sale of very high speed DRAMs the company calls enhanced-DRAMs (EDRAMs), that are based on standard volatile DRAM technology. In 1995, Ramtron spun off its EDRAM business into a wholly owned subsidiary called Enhanced Memory Systems, Inc., (EMS) which has the sole responsibility of developing EDRAMs.

1-280 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Ramtron

FRAMs* 11% License and Development Semiconductor EDRAMs* Fees Devices 89% 43% 57%

*Includes license and development fee revenues. 1996 Sales by Device Type 1996 Sales by Business Segment

EDRAMs have been demonstrated to provide SRAM performance with DRAM density in a product that approaches DRAM pricing. A large portion of the company’s EDRAM business is targeted at replacement of fast (≤15ns) SRAMs in high-performance systems. As such, EDRAMs applications include a wide variety of the highest performing systems such as personal computer motherboards, accelerator boards, multiprocessor systems, disk controllers, embedded computer modules, digital signal processing systems, and video graphic systems.

Ramtron's business strategy is to manufacture its own products, to license its products on a contract basis to other companies, and to license its proprietary technologies to a limited number of IC manufacturers in exchange for royalties and access to advanced manufacturing capabilities. The company has forged alliances with IBM Microelectronics, Fujitsu, Hitachi, Rohm, Toshiba, Nippon Steel Semiconductor, Samsung, and SGS-Thomson.

International sales represented 21 percent of sales in 1996.

Management

L. David Sikes Chairman and Chief Executive Officer Greg B. Jones President and Chief Operating Officer Richard L. Mohr Executive Vice President and Chief Financial Officer Elliot M. Philofsky, Ph.D. Senior Vice President and Chief Technical Officer Donald G. Carrigan Vice President, Sales and Marketing Craig Rhodine General Manager, Enhanced Memory Systems, Inc.

Products and Processes

Ramtron first demonstrated a working 256bit FRAM prototype in 1987 and in 1993, began commercial sales of 4K FRAMs. Commercial 16K and prototype 64K devices were introduced in 1994. Production of 256K FRAMs started in the second half of 1995. Ramtron is pursuing the development, through its strategic alliance partners, of new high-density (1M and above) FRAM products. Ramtron's FRAM products are pin compatible with many serial and parallel EEPROMs on the market.

The nonvolatile storage element in Ramtron's FRAMs is a capacitor constructed from two metal electrodes with a thin-film ferroelectric material between the transistor and metallization layers of an industry standard CMOS manufacturing process.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-281 Ramtron North American Company Profiles

In addition to nonvolatile memories, Ramtron has identified other products in which ferroelectric technology may be integrated, including microcontrollers, programmable logic devices (PLDs), and radio frequency identification devices (RFIDs). Ramtron's joint venture affiliate, Racom ID Systems, Inc., is engaged in the development of ferroelectric RFID chips and systems.

Enhanced Memory Systems' enhanced-DRAM (EDRAM) products were developed in cooperation with United Memories Inc. (UMI) and Nippon Steel Semiconductor (then NMB Semiconductor). Colorado Springs-based UMI was formed by Ramtron and NMB in 1990 (see Key Agreements). The EDRAMs are fabricated at Nippon Steel Semiconductor's fab facility in Japan.

During 1996, EMS began development of a 133MHz, 16M enhanced synchronous DRAM (ESDRAM) based on the company’s EDRAM technology. Sample shipments of the device are expected to begin in late 1997. In early 1997, EMS introduced the Enhanced 10ns family of EDRAMs that features upgraded performance speeds up to 10ns. The 10ns family is manufactured by IBM using 0.6µm process technology.

Semiconductor Fabrication Facilities

Ramtron International Corporation 1850 Ramtron Drive Colorado Springs, Colorado 80921 Cleanroom size: 11,500 square feet Capacity (wafers/week): 1,625 Wafer size: 150mm Processes: Ferroelectric CMOS and standard CMOS Products: Specialty memory ICs Feature size: 1.0µm

Ramtron's wafers are also manufactured by Rohm, Nippon Steel Semiconductor, IBM Microelectronics, and Hitachi (see Key Agreements).

Key Agreements

• In February 1997, Ramtron established a relationship with SGS-Thomson that will cover FRAM production. The agreement calls for SGS-Thomson to provide CMOS wafers to Ramtron, who will return the wafers to ST as finished 64K FRAMs. The two companies may extend this relationship in the future to include joint foundry or technology licensing agreements.

• Ramtron signed a non-exclusive licensing agreement with Samsung. Under the agreement, Ramtron licensed its FRAM technology to Samsung in exchange for certain licensing and royalty considerations.

• Ramtron signed a manufacturing agreement with IBM Microelectronics in May 1995 for EDRAM production. Under the agreement, IBM is serving as a foundry for the production of Enhanced Memory Systems' EDRAMs, and IBM has a non-exclusive license to sell the devices. The first products manufactured by IBM became available in October 1996.

1-282 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Ramtron

• Ramtron added Fujitsu to the list of companies with which it maintains joint design and licensing deals for ferroelectric memories. The two firms are developing a 1M FRAM device, and in June 1996, Fujitsu completed a feasibility study for 16M FRAMs. In August 1996, the agreement was amended allowing Fujitsu to use FRAM technology in the development and manufacture of embedded memory FRAM products.

• In late 1994, Ramtron signed a cross-licensing deal with ferroelectric memory competitor, Symetrix, also located in Colorado Springs. Both companies are jointly developing a 3-volt 16K FRAM based on Symetrix's Y-1 ferroelectric material technology. In addition, Ramtron's ferroelectric technology is now licensable by Symetrix to its strategic partners, which include Motorola and Matsushita, and Ramtron may license Symetrix's technology to its partners. The deal also called for Ramtron to purchase half of Symetrix for about $6 million.

• Ramtron and Rohm signed a joint manufacturing, development, and marketing deal in 1993 giving Rohm access to Ramtron's line of FRAM products. Under the agreement, Rohm is supplying Ramtron with wafers and is selling completed devices in Japan under both logos. In addition, joint development of new ferroelectric- based circuits, including microcontrollers and custom products will take place. Volume production of FRAM memories by Rohm is expected to begin in the second half of 1997.

• A joint program to integrate Ramtron's ferroelectric technology with Hitachi's DRAM manufacturing process was established in 1992. In early 1994, Hitachi indicated it was satisfied with its pilot program of testing and packaging midrange density FRAMs. As a result, Hitachi is working with Ramtron to design and develop 256K, 1M, and 4M FRAMs. Volume production of the 256K FRAM is expected to begin in the second half of 1997. Ramtron also agreed to license all its non-standard and standard FRAM products to Hitachi. Ramtron will rely on Hitachi as a foundry for the devices since its own fab is not capable of the feature sizes required for the larger memories.

• Toshiba agreed to jointly develop and second-source Ramtron’s FRAMs in densities of 256K and above.

• In 1988, Ramtron and NMB Semiconductor (now Nippon Steel Semiconductor) entered into a product development and license agreement for conventional 1M and 4M DRAMs. Then, in 1990, the two companies established United Memories, Inc. (UMI) to design and develop advanced memory devices (not involving Ramtron's ferroelectric technology) for both companies. In 1995, Ramtron sold all its remaining interest in UMI to Nippon Steel. Now, Nippon Steel manufactures and sells 4M EDRAM products to Enhanced Memory Systems for resale to EMS’s customers.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-283 Raytheon North American Company Profiles

RAYTHEON

Raytheon Company 141 Spring Street Lexington, Massachusetts 02173 Telephone: (617) 862-6600 Web Site: www.raytheon.com

IC Manufacturer

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

1992 1993 1994 1995 1996 Corporate Sales 9,122 9,334 10,098 11,804 12,331 Net Income 635 693 597 793 761

Semiconductor Sales 105 105 110 110 115

Employees 1,700

Company Overview and Strategy

Founded in 1922 as the American Appliance Company, the company adopted the Raytheon name in 1925. Early expertise was in the field of radio tubes and missile guidance. In 1964, Raytheon launched a diversification program to broaden its business base by adding commercial operations.

Today, Raytheon consists of four major business segments: electronics, engineering and construction, aircraft products, and major appliances. Approximately 60 percent of its sales are from commercial customers and 40 percent from government and defense electronics customers.

Major Appliances 12%

Aircraft Products Electronics 19% 44% Engineering and Construction 25%

1996 Corporate Sales by Business Segment

1-284 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Raytheon

In electronics, Raytheon’s principal business is the design, manufacture, and servicing of advanced electronic devices, equipment, and systems for governmental and commercial markets. The company is seeking to greatly enhance its defense electronics business through the acquisition of the Defense Systems and Electronic business of Texas Instruments and the Hughes Aircraft business of Hughes Electronics. Both of the transactions are expected to be completed in 3Q97. Once Raytheon, TI DS&E, and Hughes Aircraft are combined, Raytheon’s revenues with be on the order of $21 billion, more than $13 billion of which will be in defense electronics.

Raytheon’s commercial electronics business consists of Raytheon Marine Company, a supplier of marine-related electronics and systems; Raytheon Semiconductor, which specializes in the design and manufacture of multimedia video circuits and analog ICs; Raytheon Microelectronics, which produces GaAs ICs for wireless communications and satellite applications; Seiscor Technologies, Inc., a supplier of telephone transmission equipment; and Switchcraft, Inc., a supplier of a wide range of electronic components.

Raytheon Semiconductor is made up of three business units. The Multimedia Business Unit, based in San Diego, California, is a leading designer and manufacturer of high-performance digital and mixed-signal ICs for computer graphics, multimedia, imaging, and communications applications. The Analog Business Unit, based in Mountain View, California, provides a wide range of analog and mixed-signal IC products for PC, broadcast video, automatic test equipment (ATE), and set-top box applications. The High Speed Communications Business Unit offers ICs for Fast Ethernet, Fibre Channel, and Fibre Distributed Data Interface (FDDI) applications. More than 90 percent of Raytheon Semiconductor’s devices are sold to commercial customers.

Management

Dennis J. Picard Chairman and Chief Executive Officer Peter R. D’Angelo Executive Vice President and Chief Financial Officer Christoph L. Hoffmann Executive Vice President, Law and Corporate Affairs William H. Swanson Executive Vice President and GM, Raytheon Electronic Systems Philip W. Cheney Vice President and Group Executive, Raytheon Electronics Shi-Chuan Lee President, Raytheon Semiconductor James V. DiLorenzo General Manager, Advanced Device Center, Raytheon Microelectronics Arthur J. Hoage Manager, Manufacturing Services, Raytheon Semiconductor Peter F. Bejarano Director, VLSI Products, Raytheon Semiconductor Scott Keller Director, Linear and Mature Products, Raytheon Semiconductor Les Welborn Director, Worldwide Sales, Raytheon Semiconductor

Products and Processes

Raytheon Semiconductor's products are focused primarily on video/multimedia, ATE and instrumentation, PC, and communications applications. They include analog audio, video, and special function circuits; analog-to-digital and digital-to-analog converters; DC/DC converters; ATE pin electronics drivers; digital video decoders, encoders, and genlocks; imaging and video processors and filters; line regulators and references; memory and storage products; operational amplifiers; standard PROMs and power-switched SPROMs; transceivers; and voltage regulator modules. Raytheon Semiconductor also offers IC design, test, and manufacturing foundry services.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-285 Raytheon North American Company Profiles

Technologies used in the manufacture of Raytheon Semiconductor’s IC products include CMOS processes, a complementary BiCMOS process, a 5GHz high-speed complementary bipolar process, and a wide range of bipolar processes (up to 32V). Submicron CMOS process capabilities are obtained from contract foundry suppliers.

Raytheon Microelectronics manufactures a wide range of RF, microwave, and millimeter-wave GaAs ICs, including cellular/PCS circuits, digital broadcast satellite (DBS) devices, and wideband circuits. Raytheon Microelectronics also offers custom MMIC solutions and foundry services. There are five standard GaAs processes offered through its foundry services program, a 0.25µm power PHEMT process, a 0.25µm LN PHEMT process, a 0.5µm E/D MESFET process, a 0.5µm LN MESFET process, and a 0.5µm power MESFET process.

Semiconductor Fabrication Facilities

Raytheon Semiconductor Raytheon Semiconductor 350 Ellis Street Hartwell Road Mountain View, California 94039 Bedford, Massachusetts 01730 Telephone: (415) 966-7784 Telephone: (617) 274-5000 Cleanroom size: 23,300 square feet Cleanroom size: 12,000 square feet Capacity (wafers/week): 2,000 Capacity (wafers/week): 1,000 Wafer size: 100mm Wafer size: 100mm Processes: Bipolar, CMOS, BiCMOS Processes: NMOS, CMOS, bipolar Products: Linear, logic, ASICs, discretes, foundry Products: Logic and custom ICs Feature sizes: 1.0µm-5.0µm Feature sizes: 0.5µm-1.0µm

Raytheon Microelectronics Raytheon Electronic Systems Advanced Device Center 350 Lowell Street 350 Lowell Street West Andover, Massachusetts 01810 West Andover, Massachusetts 01810 Telephone: (508) 475-5000 Telephone: (508) 470-5000 Cleanroom size: 17,000 square feet Cleanroom size: 17,000 square feet Capacity (wafers/week): 875 Capacity (wafers/week): 360 Wafer size: 125mm Wafer size: 100mm Processes: NMOS, CMOS, bipolar, BiCMOS Process: GaAs Products: Logic, custom, and linear ICs Products: MMICs, discretes, foundry Feature size: 0.9µm Feature sizes: 0.25µm-0.5µm

Through the acquisitions of the defense electronics businesses of TI and Hughes Electronics, Raytheon may gain control of the following IC fabs: a TI GaAs MMIC fab in Dallas, Texas, a Hughes silicon IC fab in Newport Beach, California, a Hughes GaAs MMIC fab in Torrance, California, and a Hughes silicon IC fab in Scotland.

1-286 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Rochester Electronics

ROCHESTER ELECTRONICS

Rochester Electronics Inc. 10 Malcolm Hoyt Drive Newburyport, Massachusetts 01950 Telephone: (508) 462-9332 Fax: (508) 462-9512 Web Site: www.rocelec.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Rochester Electronics, Ltd. • Luton, Bedfordshire, England Telephone: (44) (1582) 488680 • Fax: (44) (1582) 488681

Company Overview and Strategy

Rochester Electronics was established in 1981 to supply discontinued semiconductors. Rochester offers entire discontinued lines, both commercial and military, from manufacturers that reduce support for old parts to rationalize scarce manufacturing and service resources. Increased military cutbacks have also led chip makers to reduce their support for military parts as they shift to more commercial offerings.

Rochester handles discontinued lines from companies such as AMD, National, Texas Instruments, Harris, Intel, AT&T/Lucent, and Raytheon.

Management

Curt Gerrish President

Products and Processes

Rochester has more than 450 million devices in stock, some over 20 years old. Its product lines include SRAMs, DRAMs, VRAMs, PROMs, logic chips, and linear devices. The company also stocks unfinished wafers and original mask sets.

Semiconductor Fabrication Facilities

Rochester uses more than 30 foundries to manufacture its product lines.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-287 Rockwell Semiconductor Systems North American Company Profiles

ROCKWELL SEMICONDUCTOR SYSTEMS

Rockwell Semiconductor Systems Rockwell International Corporation 4311 Jamboree Road P.O. Box C Newport Beach, California 92658-8902 Telephone: (714) 221-4600 Fax: (714) 221-6544 Web Site: www.nb.rockwell.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Rockwell International Japan Co., Ltd., Semiconductor Systems • Shibuya-ku, Tokyo, Japan Telephone: (81) (3) 5371-1520 • Fax: (81) (3) 5371-1501

Europe: Rockwell Semiconductor Systems SARL • Valbonne, Sophia Antipolis Cedex, France Telephone: (33) (4) 93-00-33-35 • Fax: (33) (4) 93-00-33-03

Asia-Pacific: Rockwell International Hong Kong, Ltd., Semiconductor Systems • Wanchai, Hong Kong Telephone: (852) 2827-0181 • Fax: (852) 2827-6488

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

1992 1993 1994 1995 1996 Corporate* Sales 5,856 6,204 7,029 9,065 10,373 Net Income 483 562 634 742 726

Semiconductor Systems Sales 431 530 691 875 1,593 Capital Expenditures 151 175 414

Employees (Semiconductor Systems) 1,695 4,000 4,500

*Restated to reflect continuing operations. Rockwell sold its Graphics Systems and Aerospace and Defense Businesses in 1996.

1-288 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Rockwell Semiconductor Systems

Company Overview and Strategy

Rockwell International Corporation was incorporated in 1928 and is engaged in the research, development, and manufacture of diversified products, including industrial automation equipment and systems, avionics products and systems and related communications technologies primarily for commercial and military aircraft and defense electronics systems, system-level semiconductor chipsets for personal communication electronics markets, and automotive components and systems.

Avionics and Communications 14% Semiconductor Systems 16% Electronics 40%

Automotive 30%

1996 Corporate Sales by Business Segment

In 1996, Rockwell made several acquisitions and divestitures to sharpen its business focus. Its divestitures included the sale of its Graphics Systems business to Stonington Partners in October 1996 and the December 1996 sale of its Aerospace and Defense business to Boeing for $3.2 billion. Meanwhile, Rockwell’s acquisitions were focused on gaining semiconductor technologies. In September 1996, the company acquired Brooktree Corporation, a supplier of high-performance chipsets for computer graphics, multimedia, imaging, and communications applications for $278 million, and then in December 1996 acquired the Wireless Semiconductor Products group of the Cirrus Logic subsidiary Pacific Communications Sciences Inc. (PCSI) for $18.1 million and certain graphics and multimedia technology assets of Weitek Corporation. As a result of these transactions, Rockwell is now predominantly an electronics company with 70 percent of 1996 sales coming from its electronics business compared to in 1984 when 63 percent of the company’s sales were aerospace- and defense-related.

The transformation of Rockwell has continued into 1997. In April 1997, the company acquired the Hi-Media broadband communications chipset business of ComStream Corporation for approximately $50 million. By the end of September 1997, Rockwell plans to spin-off of its Automotive business into a separate, publicly-traded company.

Meanwhile, Rockwell’s sales outside the U.S. have grown to 43 percent of total sales in 1996 compared to 13 percent in 1984.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-289 Rockwell Semiconductor Systems North American Company Profiles

Rockwell Semiconductor Systems is the fastest-growing business segment of Rockwell and comprises the Multimedia Communications Division (MCD), the Wireless Communications Division (WCD), the Network Access Division (NAD), and the Digital Infotainment Division. The MCD is the world’s leading supplier of facsimile and PC modem devices. The WCD offers semiconductor systems for advanced cordless telephony and Global Positioning Systems (GPS) receiver engines and is developing products and technologies to address the Personal Communications Services (PCS) and wireless packet data markets. NAD offers a broad line of high- bandwidth communications and networking devices. The Digital Infotainment Division focuses on products for the digital consumer electronics information and entertainment markets.

Management

Rockwell International Corporation Donald R. Beall Chairman and Chief Executive Officer Don H. Davis, Jr. President and Chief Operating Officer W. Michael Barnes Senior Vice President, Finance, and Chief Planning Officer William J. Calise, Jr. Senior Vice President, General Counsel, and Secretary William D. Fletcher Senior Vice President, Technology and Business Development Robert H. Murphy Senior Vice President, Organization and Human Resources Earl S. Washington Senior Vice President, Communications Lee H. Cramer Vice President and Treasurer Lawrence J. Komatz Vice President and Controller Thomas A. Madden Vice President, Corporate Development

Rockwell Semiconductor Systems Dwight W. Decker, Ph.D. President A.C. D’Augustine Vice President and General Manager, Digital Infotainment Division Raouf Halim Vice President and General Manager, Network Access Division Vijay Parikh Vice President and General Manager, Multimedia Communications Division Vijay Parikh (acting) Vice President and General Manager, Wireless Communications Division

Products and Processes

Rockwell Semiconductor Systems specializes in system-level semiconductor solutions. The company has a history of leadership in the development and application of mixed-signal technologies. Rockwell introduced the first modem to the worldwide communications market in 1995 and has since played a key role in helping the industry turn those original three-board modems into today’s low-cost single-chip devices. The company is the world’s leading supplier of advanced voice, fax, and data modem products, with a 70 percent share of the total modem marketplace. Rockwell claims that its installed base of data modems is more than 150 million and that over 80 percent of all fax machines use its fax-modem digital signal processors and chipsets.

Rockwell believes its core competencies in IC design include digital signal processing (DSP) architectures and algorithms, submicron CMOS technology, application-specific IC (ASIC) design, interconnect technology, embedded memory, mixed-signal integration, and radio frequency (RF) technology. The company’s product portfolio is organized around five product platforms: personal computing products; digital infotainment appliances; wireless devices for cordless phones, cellular/PCS handsets, and Global Positioning Systems (GPS); personal imaging systems; and network access equipment.

1-290 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Rockwell Semiconductor Systems

Personal Computing Products Through its Multimedia Communications Division, Rockwell serves the PC market with its fax, data, and integrated data/fax/voice modem devices with transmission speeds of up to 56Kbps. In September 1996, Rockwell was the first company to announce 56Kbps modem technology. Through the acquisition of Brooktree, Rockwell expanded its product portfolio to include video encoding and decoding products, creating a complete offering of multimedia and connectivity products for desktop PCs, notebook PCs, and PDAs.

Digital Infotainment Products Rockwell’s Digital Infotainment Division was formed in April 1997. Much of the products from this division stem from Rockwell’s Brooktree, Weitek, and ComStream Hi-Media acquisitions. The products include video decoders/encoders and other graphics and video ICs; broadband wireless and cable demodulation products and tuners; WaverArtist PC audio system devices, WaveStream™ software synthesizers, and the EndlessWave™ unlimited-capacity wavetable synthesis sampling engine; and the MediaPacket™ silicon architecture and TrueView™ video display technology for advanced multimedia applications.

Wireless Communications Products Rockwell’s Wireless Communications Division focuses on chips, chipsets, and modules for spread-spectrum digital cordless telephones, GPS receivers, and cellular/PCS handsets. These products are supported by a wide variety of semiconductor processes, including advanced CMOS (used for digital and mixed-signal devices), a new silicon bipolar process for RF applications, and an HBT (heterojunction bipolar transistor) GaAs process for wireless power amplifiers. Rockwell is developing pager-chipset solutions for personal Air Communications Technology (pACT), a narrowband two-way messaging system.

Personal Imaging Products At the core of Rockwell’s personal imaging platform offering is its Advanced FAX ENGINE™ family, a highly integrated technology featuring a digital answering machine coupled with fax functions such as modem, fax protocols, and compression/decompression, as well as scanner and printer interfaces.

Network Access Products Formed in April 1997, the Network Access Division is focused on the underlying infrastructure tying together all of the company’s other strategic product platforms. The Brooktree acquisition brought Rockwell a broad family of high-speed digital data communications products spanning the company’s existing Central Site modems and Brooktree’s HDSL and other T1/E1 products, and packet-switched products for ATM and SMDS (switched multi- megabit data services).

Semiconductor Fabrication Facilities

In August 1995, Rockwell purchased the United Technologies Microelectronics Center (UTMC) wafer fab facility in Colorado Springs, Colorado. The company plans to invest up to $1.3 billion to build a 450,000 square-foot fab facility at this site to produce 7,500 wafers per week. Construction of Phase I, which began in March 1996, will include a 65,000 square-foot, Class 1 cleanroom. The exterior shell will be completed in 1998, but Rockwell has decided to hold off on starting volume production until late 1999. The company has cited the attractive cost and availability of external resources as the reason for the delay.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-291 Rockwell Semiconductor Systems North American Company Profiles

In early 1994, the company executed an agreement to acquire additional 200mm wafer capacity through a minority equity investment in Chartered Semiconductor Manufacturing, Ltd., of Singapore. Under the agreement, Rockwell is guaranteed capacity in Chartered’s $1.3 billion Fab 2 facility in Singapore.

In early 1996, Rockwell and Submicron Technology announced a long-term technology transfer and wafer supply agreement. Rockwell agreed to transfer its 0.5µm and 0.35µm CMOS process technologies in return for guaranteed wafer capacity (up to 25 percent) at Submicron Technology’s new $1.2 billion, 200mm fab facility located near Bangkok, Thailand. Operations at the Thai fab are scheduled to begin in 1998.

Rockwell’s long-term wafer capacity target calls for a mix of about 70 percent in-house and 30 percent outsourced.

Rockwell Semiconductor Systems Rockwell Semiconductor Systems Digital Communications Division Digital Communications Division 4311 Jamboree Road 4311 Jamboree Road Newport Beach, California 92660 Newport Beach, California 92660 Fab 4 Fabs 5 and 6 Cleanroom size: 15,000 square feet Cleanroom size: 40,000 square feet Capacity (wafers/week): 3,750 Capacity (wafers/week): 2,500 Wafer size: 125mm Wafer size: 200mm Process: CMOS Process: CMOS Products: MPRs, MPUs, DSPs, ASICs, Products: MPRs, DSPs, memory ICs, linear ICs Feature sizes: 0.35µm-0.65µm Feature sizes: 0.8µm-2.0µm

Rockwell Semiconductor Systems Rockwell Semiconductor Systems 1575 Garden of the Gods Road 1575 Garden of the Gods Road Colorado Springs, Colorado 80907-3486 Colorado Springs, Colorado 80907-3486 Fab 7 Fab 8 Cleanroom size: 25,000 square feet Cleanroom size: 65,000 square feet (Class 1) Capacity (wafers/month): 750 Capacity (wafers/month): 3,750 Wafer size: 125mm Wafer size: 200mm Process: CMOS Process: CMOS Products: Linear ICs, ASICs, MPRs, MPUs Products: MPRs, MPUs, DSPs, ASICs Feature sizes: 0.8µm, 1.0µm Feature size: 0.35µm (Purchased from UTMC in 1995) (Operations to start in late 1999)

1-292 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Rockwell Semiconductor Systems

Rockwell Semiconductor Systems Microelectronic Technology Center 2427 West Hillcrest Drive Newbury Park, California 91320 Telephone: (805) 375-1256 Capacity (wafers/week): 400 Wafer size: 100mm Processes: HBT, MESFET GaAs Products: ASICs, receivers, power amps, high-speed digital circuits Feature sizes: 0.5µm-2.0µm

Key Agreements

• In early 1997, Rockwell licensed the ARM810 and the ARM7TDMI “Thumb” 32-bit RISC microprocessor core technologies of Advanced RISC Machines Ltd., as well as a core to be developed in the future. Rockwell will integrate the cores into a variety of communications products.

• In 4Q96, Rockwell and Lucent Technologies jointly announced plans to make the two companies’ 56Kbps modem products interoperable.

• In July 1995, Rockwell signed a five-year foundry agreement with IMP, Inc. for the wafer fabrication of CMOS mixed-signal ICs.

• Rockwell is teamed with McCaw Cellular Communications to develop and provide a Cellular Digital Packet Data (CDPD) chipset that enables portable PCs to send digital data over cellular phone networks.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-293 Ross Technology North American Company Profiles

ROSS TECHNOLOGY

Ross Technology 5316 Highway 290 West Austin, Texas 78735 Telephone: (512) 349-3108 Fax: (512) 349-3101 Web Site: www.ross.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: Ross Europe • La Hulpe, Belgium Telephone: (32) (2) 652-1014 • Fax: (32) (2) 652-1062

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

1995 1996 1997 Sales 39 101 100 Net Income (11) 18 n/a R&D Expenditures 13 16 n/a

Employees 75 175 235

Company Overview and Strategy

Ross Technology is an independent wholly owned subsidiary of Fujitsu Ltd., which acquired the firm from Cypress Semiconductor in mid-1993 for about $22 million. In November 1995, Ross completed its initial public offering, reducing Fujitsu’s share to 60 percent. A minority position in Ross is also held by Sun Microsystems (five percent).

Originally established in 1988, Ross is involved in the design, development, and marketing of advanced RISC microprocessors based on the SPARC architecture pioneered by Sun Microsystems. Besides SPARC microprocessors, Ross also offers a complete line of high-end motherboards and systems through its Ross Microcomputer business unit, which was established in February 1996.

1-294 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Ross Technology

Other OEM 17%

CPU Upgrade Sun Microsystems 19 % 45% Fujitsu 19%

1996 Sales by Customer

Management

Fred T. May Chairman and Acting Chief Executive Officer Frank A Baffi Vice President, Worldwide Sales Carter Godwin Chief Accounting Officer and Controller John Rasco Vice President, Marketing Francis A. “Kit” Webster Chief Financial Officer

Products and Processes

Ross Technology's current family of RISC microprocessors include the 32-bit Colorado™ 2, 3, and 4 hyperSPARC™ lines. The superscaler, superpipelined hyperSPARC processors are based on a 0.4µm triple- level-metal CMOS process and deliver performance of up to 200MHz. The company continues to develop its next-generation Viper microprocessor technology.

To support its hyperSPARC microprocessors, Ross also offers core logic chipsets.

Semiconductor Fabrication Facilities

The company's devices are manufactured by Fujitsu.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-295 S-MOS Systems North American Company Profiles

S-MOS SYSTEMS

S-MOS Systems, Inc. 150 River Oaks Parkway San Jose, California 95134 Telephone: (408) 922-0200 Fax: (408) 922-0238 Web Site: www.smos.com

Fabless IC Supplier

Financial History ($M)

1992 1993 1994 1995 1996 Sales 152 137 135 190 210

Employees 210 210 220 210 215

Company Overview and Strategy

S-MOS Systems Inc., established in 1983, designs, develops, and markets a full line of very-low-power and low- voltage (2V) advanced CMOS integrated circuits for a variety of market applications including desktop, notebook, and palmtop computers, handheld instrumentation, data and telecommunications, and mobile and portable communications devices. The company is divided into four key business units: Semiconductor Contract Manufacturing, Standard Products, ASICs, and Card Products. The company provides silicon foundry services through its Japanese affiliate, Seiko Epson Corporation.

Card Products 2%

ASIC 20% Semiconductor Contract Standard Manufacturing Products 57% 21%

1996 Sales by Business Unit

1-296 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles S-MOS Systems

Management

Tadakatsu Hayashi Chairman, President, and Chief Executive Officer Tom Endicott Vice President, Sales and Marketing Eiichi Suda Vice President, Product Creation Kai P. Yiu Vice President, Advanced Systems Division Ian R. Mackintosh Executive Director, ASIC Business Unit Takami Takeuchi Executive Director, Finance Dan Beck Director, Marketing Communications Dev Chakravarty Manager, ASIC Marketing

Products and Processes

Standard Products Business Unit Memories—SRAMs, mask ROMs, EEPROMs Controllers—VGA-LCD controllers, 3D graphics accelerators Drivers—LCD drivers Microcontrollers—low-power 4-bit and 8-bit microcontrollers

ASIC Business Unit Gate Arrays —SLA40000 Series: 0.45µm CMOS process with two or three layers of metal, 13K to 288K raw gates, and 128 to 400 available I/Os. —SLA30000 Series: 0.6µm CMOS process with two or three layers of metal, 18K to 216K raw gates, and 128 to 376 available I/Os. —SLA20000 Series: 0.65µm CMOS process with two and three layers of metals, 12K to 200K raw gates, and 64 to 368 available I/Os. —SLA9000F Series: 0.6µm CMOS process, 3K to 44K raw gates, and 80 to 256 I/Os. —SLA9000 Series: 1.0µm CMOS process with two layers of metals, 4K to 36K raw gates, and 82 to 240 available I/Os. —SLA100X Series: 2.0µm CMOS process with two layers of metals, 1K to 8K raw gates, and 78 to 178 available I/Os. Standard Cells —SSC5000 Series: 0.8µm CMOS process, 7K to 107K raw gates, and 112 to 432 available I/Os. —SCC2500 Series: 1.6µm CMOS process, 300 to 16K raw gates, and 44 to 256 I/Os. —SCC2000 Series: 2.0µm CMOS process, 250 to 11K raw gates, and 40 to 192 I/Os. Embedded Arrays —SSL20000-1: RAM-DAC embedded array for PC video and graphics applications. —SSL20000-2: LAN/Ethernet embedded array for LAN controller applications. —SSL20000-3: RAM/ROM embedded array for pager, cellular phone, and PDA applications.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-297 S-MOS Systems North American Company Profiles

Card Products Business Unit Subsystem design and assembly

Contract Manufacturing Services Foundry, test, and packaging services through Japanese affiliate Seiko Epson.

Semiconductor Fabrication Facilities

Design, engineering, and marketing of S-MOS's products are handled at its San Jose headquarters. Manufacturing is done at Seiko Epson's fabrication facility in Fujimi, Nagano Prefecture, Japan.

1-298 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles S3

S3

S3 Incorporated 2801 Mission College Boulevard Santa Clara, California 95052-8058 Telephone: (408) 588-8000 Fax: (408) 980-5444 Web Site: www.s3.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: S3 Japan K.K. • Tokyo, Japan Telephone: (81) (3) 3345-7360 • Fax: (81) (3) 3345-7390

Asia-Pacific: S3 Taiwan • Taipei, Taiwan Telephone: (886) (2) 757-6768 • Fax: (886) (2) 757-6880

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

1992 1993 1994 1995 1996 Sales 31 113 140 316 465 Net Income 4 19 6 35 48 R&D Expenditures 5 12 18 42 63 Foundry Fab Investment — — — 36 93

Employees 68 141 230 444 678

Company Overview and Strategy

S3 Incorporated, founded in 1989, pioneered graphics acceleration in 1991 when it introduced the industry’s first single-chip graphics accelerator, significantly improving the performance of personal computers. The 16-bit accelerator was followed by 32-bit and 64-bit families in 1992 and 1993, respectively. In addition, S3 delivered the first integrated 2D and 3D graphics and video accelerator designed for the mainstream PC market.

As multimedia continues to become pervasive in PCs, S3 has leveraged its expertise to accelerate 3D graphics and video, offer optimized UMA (Unified Memory Architecture) and MPEG solutions, and introduce new products, such as an audio signal processor.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-299 S3 North American Company Profiles

Beginning in 1997, S3 plans to bring greater technology differentiation to the PC by exploiting the best of the consumer electronics proprietary technologies, such as compression, communications, high-quality video and audio, and life-like 3D graphics. In addition, the company intends to further extend the capabilities of its 2D, 3D, and audio accelerators into new markets and technologies emerging from consumer electronics and the Internet.

United States 39% Asia/Europe/ROW 61%

1996 Sales by Geographic Region

Management

Diosdado “Dado” P. Banatao Chairman Terry N. Holdt Vice Chairman Gary Johnson President and Chief Executive Officer G. “Ven” Venkatesh Executive Vice President, Graphics and Audio Communications Harry L. Dickinson Senior Vice President, Sales Paul G. Franklin Senior Vice President, Operations Dale Lindly Controller and acting Chief Financial Officer Neal D. Margulis Senior Vice President, Research and Technology Ronald T. Yara Senior Vice President, Strategic Marketing Edwin DeSouza Vice President and General Manager, Networking Cecilia Hayes Vice President, Human Resources Wei-Chan Hsu Vice President, Analog Technology Michael P. Nell Vice President, Business Development Greg Paley Vice President, Central Software Engineering Operations Werner Stahel Vice President, Central Engineering

Products and Processes

S3 offers a variety of 32-bit and 64-bit graphics and multimedia accelerator ICs, as well as supporting software drivers. In 1995 and 1996, the company significantly expanded its product offerings from 2D graphics acceleration to video acceleration, MPEG decoding, audio processing, 3D acceleration, and mobile multimedia acceleration. S3’s IC products are listed below.

1-300 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles S3

Products for home PC applications • Trio32™ and Trio64™ DRAM-based integrated mixed-signal graphics accelerators for cost-sensitive users. • Trio64V+™ 64-bit, DRAM-based, multimedia accelerator with high-end video and graphics capabilities. • Trio64UV+™ 64-bit, UMA-based, video-enable graphics accelerator. Optimized for next-generation Pentium processor designs. • ViRGE™ and ViRGE/VX™ 64-bit graphics and video accelerators, which integrate 3D rendering, 2D GUI, and video acceleration with a RAMDAC and clock synthesizer on a single chip. • Sonic/AD™ CD-quality, programmable, sigma-delta audio DAC. S3’s first audio product. • SonicVibes™ PCI-based audio processor that integrates the capabilities of a “sound card on a chip.” • Scenic/MX2™ MPEG-1 audio/video decoder. Connects to the Trio64V+ multimedia accelerator.

Products for desktop PC applications • Vision864™ and Vision964™ graphics and video accelerators. The DRAM-based Vision864 enables 64-bit performance in midrange PCs, while the VRAM-based Vision964 is targeted for power users that need higher resolutions, color depths, and refresh rates. • Vision868™ and Vision968™ 64-bit multimedia accelerators with an integrated video playback engine. The Vision868 is DRAM-based and the Vision968 is VRAM-based. • Trio32 and Trio64 graphics accelerators (see above). • Trio64V+ multimedia accelerator (see above). • Trio64V2™ graphics and multimedia accelerator that brings high-quality hardware assisted video playback to the mainstream business desktop PC. The Trio64V2 provides an upgrade path to synchronous memory technologies for even higher performance. • ViRGE/DX/GX™ 3D-enabled multimedia accelerators based on the S3d™ architecture, which significantly increases the performance of S3’s 3D platform. The ViRGE/DX is DRAM-based and the ViRGE/GX is SDRAM/SGRAM-based. • Plato/PX™ Integrated Platform Accelerator™. Based on a shared memory architecture (SMA), the Plato/PX integrates a PC’s system controller and multimedia accelerator onto a single chip, eliminating the need for a separate graphics subsystem. • Scenic/MX2 MPEG-1 decoder (see above). • Sonic/AD programmable audio DAC (see above).

Products for mobile PC applications • Aurora64V+™ 64-bit multimedia accelerator. The Aurora64V+ provides notebook computer users with desktop-equivalent graphics performance and multimedia capability, as well as the industry’s first dual display support.

Semiconductor Fabrication Facilities

The majority of S3's silicon products are currently manufactured by IBM Microelectronics, Hewlett-Packard, TSMC, and UMC. In 1995, S3 entered into a partnership with UMC and Alliance Semiconductor to establish a new jointly owned wafer foundry company in Taiwan called United Semiconductor Corporation (USC). S3 enjoys 20 percent ownership in USC, which began processing 200mm wafers in 3Q96. S3 has the right to purchase up to about 31 percent of the USC fab’s output. See UMC’s profile for data on USC’s fab facility.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-301 Seeq Technology North American Company Profiles

SEEQ TECHNOLOGY

Seeq Technology, Inc. 47200 Bayside Parkway Fremont, California 94538 Telephone: (510) 226-7400 Fax: (510) 657-2837 Web Site: www.seeq.com

Fabless IC Supplier

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

1992 1993 1994 1995 1996 Sales 37 33 21 23 31 Net Income (11) (4) (8) 1 3 R&D Expenditures 53333

Employees 190 161 67 67 74

Company Overview and Strategy

Seeq Technology was established in 1981 to develop, produce, and market EEPROMs. Over the years the company has undergone a series of transitions that has created a company that is today much different than it was founded to be. Seeq began developing Ethernet products in 1982 and adopted a strategy to have its products manufactured by outside foundries in 1989. As a result of the foundry alliances that were established, the company shut down its wafer fab facility in 1992 and thus became a fabless IC supplier. In early 1994, the company abandoned the market it had itself created by selling its EEPROM business to competitor Atmel Corporation for $10 million. Additionally, the company's Ethernet adapter board product line was discontinued in early 1994.

Seeq now focuses exclusively on local area network (LAN) communication devices and subsystems. These products are targeted at system manufacturers in the personal computer, workstation, printer, networking, and telecommunications markets. Fast Ethernet devices accounted for 31 percent of total revenues in 1996.

1-302 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Seeq Technology

Europe 6%

Asia-Pacific 19%

U.S. 75%

1996 Sales by Geographic Region

Management

Alan V. Gregory Chairman Phillip J. Salsbury, Ph.D. President and Chief Executive Officer Stephen Dreyer Vice President, Engineering Walter B. Gebaur Vice President, Manufacturing Barry Gray Vice President, Marketing Robert O. Hersh Vice President, Finance and Chief Financial Officer Philip A. Ortiz Vice President, Worldwide Sales Albert Schadlick Vice President, Eastern Sales

Products and Processes

Seeq supplies Ethernet data communication controllers, encoder/decoders, coaxial and unshielded twisted pair cable CMOS transceivers, and networking modules. The company also sells media signaling ICs for the high- speed ATM (Asynchronous Transfer Mode) LAN market. Its products are designed using proprietary digital and mixed-signal CMOS processes, including submicron technologies (0.8µm and 0.6µm).

Semiconductor Fabrication Facilities

Seeq has established several agreements with wafer-based and ASIC-based foundry suppliers. Its volume wafer processing partners are AMI, Hualon Microelectronics Corporation (HMC), Ricoh, and Rohm. VLSI Technology and Samsung are used for turn-key manufacturing using either a standard cell or a gate array approach.

Key Agreements

• In 1995, Seeq re-established its foundry relationship with HMC for the manufacture of its mixed-signal products with an agreement that guarantees foundry services through July 1998. Seeq is also sharing resources with HMC to co-develop new generations of analog circuits for Ethernet data communications products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-303 Semtech North American Company Profiles

SEMTECH

Semtech Corporation 652 Mitchell Road Newbury Park, California 91320 Telephone: (805) 498-2111 Fax: (805) 499-5487 Web Site: www.semtech.com

IC Manufacturer

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

1993 1994 1995 1996 1997 Sales 20 21 36 62 65 Net Income 0.4 1278 R&D Expenditures 11234 Capital Expenditures 1 4 4

Employees 340 372 500 505

Company Overview and Strategy

Semtech Corporation, incorporated in 1960, manufactures and markets a wide variety of semiconductor products focused at both commercial and military applications. Initially, Semtech only supplied semiconductor devices to the military and aerospace industries. However, in 1990, Semtech began its migration into commercial markets with the acquisition of Lambda Electronics. This equipped Semtech with an IC fab facility in Corpus Christi, Texas. In 1992, the company acquired Modupower Inc., a supplier of solid state modules, further moving Semtech into the commercial marketplace. In late 1995, Semtech acquired ECI Semiconductor, an analog semiconductor manufacturer located in Santa Clara, California. From ECI, Semtech gained new process technology, additional wafer fab capacity, and ECI’s foundry customer base.

Today, Semtech’s primary focus is on the personal computer and telecommunications markets, though it still maintains a presence in the military and aerospace markets. In fiscal 1997, military and aerospace revenues accounted for 14 percent of total revenues, down from 40 percent in 1995.

1-304 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Semtech

Communications 8%

Military and Aerospace European 14% 13% Computer 41% Far East North America Foundry 33% 54% 15% Industrial 22%

1997 Sales by Geographic Region 1997 Sales by End-Use Market

Management

John D. Poe President and Chief Executive Officer Raymond E. Bregar Executive Vice President, Corporate Operations David I. Anderson Vice President, IC Design and Development David G. Franz, Jr. Vice President, Finance, and Chief Financial Officer Jean Claude Zambelli Vice President, Sales and Marketing

Products and Processes

Semtech offers a wide range of integrated circuits and discrete devices including transient voltage suppressors, linear and switching voltage regulators, DC-to-DC power modules, rectifiers, high voltage monolithic ceramic capacitors, and modular assemblies.

Through its acquisition of ECI Semiconductor, Semtech now offers linear and mixed-signal CMOS arrays, linear bipolar arrays, standard analog circuits, and RF discretes, in addition to offering foundry services.

Semiconductor Fabrication Facilities

Semtech Corpus Cristi Semtech Santa Clara (formerly ECI Semiconductor) 121 International Boulevard 975 Comstock Street Corpus Christi, Texas 78406 Santa Clara, California 95054 Telephone: (512) 289-0403 Capacity (wafers/week): 2,000 Wafer size: 100mm Wafer sizes: 100mm, 125mm Process: Bipolar Processes: CMOS, bipolar Products: Linear ICs Products: ASICs, linear ICs, discretes, foundry Feature size: 3.0µm Feature sizes: 3.0µm, 4.0µm, 5.0µm

Semtech Corporation 652 Mitchell Road Newbury Park, California 91320 Telephone: (805) 498-2111 Products: Discretes

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-305 Sensory North American Company Profiles

SENSORY

Sensory, Inc. 521 East Weddell Drive Sunnyvale, California 94089 Telephone: (408) 744-9000 Fax: (408) 744-1299 Web Site: www.sensoryinc.com

Fabless IC Supplier

Employees 29

Company Overview and Strategy

Founded in 1994, Sensory, Inc. is a privately held company that designs and markets high-quality low-cost ICs that perform speech recognition, speaker verification, speech and music synthesis, audio record/playback, and general purpose product control for consumer electronic applications, including telecommunications devices, interactive toys, home appliances, personal electronics, and security devices.

Management

Todd Mozer President and Chief Executive Officer Mark Frankel Vice President, Sales Robert Savoie Vice President, Technology Keith Kitami Director, Marketing

Products and Processes

Sensory’s current products include the Interactive Speech™ line of integrated circuits (ICs). This family of chips is designed to “bring life to products” through Sensory’s speech and audio technologies. The Interactive Speech single-chip ICs utilize neural network technology to deliver high-quality low-cost speech recognition and speaker verification solutions to telecommunications and consumer electronic products.

Other services offered by Sensory include product specification, vocabulary development for recognition and synthesis, circuit board design, application programming, product design consulting, and custom ICs.

Sensory’s complete product line is produced using a 0.6µm CMOS process technology.

1-306 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Sierra Semiconductor

SIERRA SEMICONDUCTOR

Sierra Semiconductor Corporation 2222 Qume Drive San Jose, California 95131 Telephone: (408) 434-9300 Fax: (408) 894-0218 Web Site: www.pmc-sierra.com/sierra_semi_site

Fabless IC Supplier

Regional Headquarters/Representative Locations

Europe: PMC-Sierra, Inc. • Warrington, Cheshire, United Kingdom Telephone: (44) (1925) 651122 • Fax: (44) (1925) 650033

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

1992 1993 1994 1995 1996 Sales 92 83 105 189 188 Net Income 12 (13) (9) 1 (51) R&D Expenditures 13 15 16 23 28

Employees 322 295 335 480 500

Company Overview and Strategy

Founded in 1984, Sierra Semiconductor and its wholly owned subsidiary, PMC-Sierra, Inc., develop and market high-performance semiconductor system solutions for advanced communications applications. The company participates in the broadband communications infrastructure and local area networking segments of the communications industry with its product lines of ATM (Asynchronous Transfer Mode), T1/E1, DS3/E3, and Sonet/SDH ICs and subsystems developed and marketed by PMC-Sierra. Sierra also offers products for multimedia personal computers, such as highly integrated data and voice communications devices and graphics/imaging products.

In August 1996, the company announced its decision to exit the PC modem chipset business and put the product line up for sale in an effort to focus on its networking and infrastructure semiconductor business. Also part of this effort was the acquisition of the Ethernet switching technology and assets of Bit, Inc., a small, fabless firm in Beaverton, Oregon. Bit was folded into PMC-Sierra and operates as a new product group focused on Ethernet applications.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-307 Sierra Semiconductor North American Company Profiles

Burnaby, British Columbia-based PMC-Sierra was originally established in 1992 as Pacific Microelectronics Centre, a spinoff of MPR Teltech Ltd., the research arm of the British Columbia phone company. The spinoff was supported by a significant investment from Sierra for 61 percent of PMC’s stock. PMC was then fully acquired by Sierra in the third quarter of 1994 and subsequently renamed PMC-Sierra.

International sales accounted for over 50 percent of Sierra’s total revenues in 1996.

Management

James V. Diller Chairman, President, and Chief Executive Officer Glenn C. Jones Senior Vice President, Finance and Chief Financial Officer George D. Antenucci Vice President, Human Resources Naresh K. Batra Vice President and General Manager, Multimedia Products Alden J. Chauvin, Jr. Vice President, Worldwide Sales Victor Godbole Vice President, Strategic Planning and System Engineering Raman K. Rao Vice President, Operations Marc E. Robinson Vice President, Technology Development and Quality Robert L. Bailey President and Chief Executive Officer, PMC-Sierra, Inc.

Products and Processes

Sierra's semiconductor product offerings include WAN and LAN chipsets and subsystems; audio, voice synthesis, and voice recognition circuits; and graphics and imaging products. Much of the company’s development efforts are focused on ATM and related products.

Sierra uses what it calls a "Triple Technology" process that uses its competencies in analog, digital, and EEPROM technologies to provide complex IC system solutions.

Semiconductor Fabrication Facilities

Sierra Semiconductor is a fabless IC operation, with the majority of its wafers (as much as 60 percent) being manufactured by Chartered Semiconductor. In 1987, the company formed Chartered Semiconductor as a fab- and-test joint venture with Singapore Technologies Industrial Corporation Pte. Ltd. Sierra originally held a minority interest in the venture and licensed Chartered Semiconductor to use its manufacturing processes and test technologies. In 1993, Singapore Technologies purchased all of the shares held by Sierra.

Sierra also uses Taiwan Semiconductor Manufacturing Co. (TSMC), LG Semicon, and IC Works for the fabrication of its wafers.

1-308 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Signal Processing Technologies

SIGNAL PROCESSING TECHNOLOGIES (SPT)

Signal Processing Technologies, Inc. 4755 Forge Road Colorado Springs, Colorado 80907 Telephone: (719) 528-2300 Fax: (719) 528-2370 Web Site: www.spt.com

Fabless IC Supplier

Employees 100

Company Overview and Strategy

Signal Processing Technologies (SPT) is a supplier of high-performance data conversion and signal conditioning integrated circuits. It was formed in 1983 as a business unit of Honeywell's semiconductor group. SPT was then acquired in 1989 by a group of private investors and an employee team and was established as a separate corporation. In June 1990, the company became a wholly-owned subsidiary of Japan's Toko, Inc., a worldwide supplier of electronic components and integrated circuits.

Management

Ben Takada General Manager Richard Mintle Director, Sales and Marketing Alfi Moscovici Director, Engineering Mike Ruebenson Director, Finance and Administration

Products and Processes

SPT offers a portfolio of products that includes high-speed comparators and A/D and D/A converters. The company's primary focus is on developing proprietary, high-performance signal conditioning and data conversion products. It has received funding from its parent to develop new analog products designed for a variety of commercial, industrial, and military applications.

Semiconductor Fabrication Facilities

Toko acts as the foundry for SPT. In late 1992, SPT purchased a former Digital Equipment Corp. R&D facility, which more than doubled the company's engineering and test area. The facility includes a 10,000 square-foot space that SPT may convert into a Class 10 or Class 1 fab in the future.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-309 Siliconix North American Company Profiles

SILICONIX

Siliconix Incorporated (Member of TEMIC Semiconductors) 2201 Laurelwood Road Santa Clara, California 95056-0951 Telephone: (408) 988-8000 Fax: (408) 970-3950

IC Manufacturer

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

1992 1993 1994 1995 1996 Sales 155 171 197 250 269 IC Sales 43 36 34 64 65 Discrete Sales 112 135 163 186 204 Net Income 5 7 11 24 26 R&D Expenditures 8 13 16 19 21 Capital Expenditures 13 18 25 28 40

Employees 1,202 1,211 1,172 1,269 1,228

Company Overview and Strategy

Founded in 1962, Siliconix designs, manufactures, and markets ICs and discrete components for switching, motor control, and power management in computers, automotive, instrumentation, and telecommunications applications. AEG Capital Corporation became a majority shareholder of the company in December 1990, increasing its ownership from 38 percent to 80 percent of the company's outstanding stock. In July 1992, Siliconix was joined with Telefunken Semiconductors, Matra MHS, and Dialog Semiconductor to form the semiconductor division of TEMIC, the microelectronics group of Daimler-Benz AG, a German automotive, electronics, and aerospace conglomerate.

In 1996, Siliconix restructured its business to better reach its target markets. Power MOS, Power IC, and Signal Processing product units were created with profit and loss responsibilities for their respective product lines. The Power MOS and Signal Processing units report jointly to Siliconix and the Discrete Components Division of TEMIC Semiconductors. The Power IC unit reports jointly to Siliconix and the Integrated Circuits Division of TEMIC Semiconductors.

1-310 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Siliconix

Japan 19% North America 33% Asia Pacific 21% Europe 27%

1996 Sales by Geographic Region

Management

Richard J. Kulle President and Chief Executive Officer King Owyang Executive Vice President, Technology and Silicon Operations Jürgen F. Biehn Senior Vice President and Chief Financial Officer Michael Gingrass Vice President, Environmental and Plant Services Rod Graham Vice President, Worldwide Sales G. Thomas Simmons Vice President, Strategic Marketing and Business Development

Products and Processes

Siliconix's power transistors and integrated circuits are mainly used for power management and motion control in computers, hard disk drives, automobiles, and communications systems. The company's analog switches, analog multiplexers, and low-power transistors are used to sense, switch, and route signals in video, multimedia, instrumentation, and test equipment in both industrial and hi-rel environments.

In 1996, sales of power MOSFETs, the company’s fastest growing product group, and power ICs accounted for about 74 percent of total sales. Siliconix expects this percentage to increase as the company continues its push into the high-end disk drive market.

Analog Switch and Low-Power Discretes 26%

Power MOSFETs and Power ICs 74%

1996 Sales by Product Type

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-311 Siliconix North American Company Profiles

Siliconix provides products and technologies that directly answer the market's demand for smaller, more efficient, and more cost-effective components. The company's Lite Foot™ discrete power transistors are the industry's most compact solution for motion control in hard disk drives and for load management in portable computers. These miniaturized products can be mounted directly on the printed circuit board, and are the first such power devices small enough to fit in a PCMCIA card. The company's Little Foot® line has been designed into telecom systems, automotive air bag triggers, and numerous other applications where space-savings and efficiency are at a premium. In early 1997, Siliconix announced a family of specialized power MOSFETs as part of its Little Foot product line. The devices are designed to work with most low-voltage pulse width modulation (PWM) controllers. Each of the five new devices is designed to handle a different power level, and thus each targets a different application.

Siliconix's power integrated circuits combine the functions of two or more discrete transistors on one chip. A family of high-frequency switchmode regulator and controller ICs designed for use with Lite Foot or Little Foot discretes offers the optimal level of integration for DC-to-DC conversion in battery-operated equipment, including laptop and notebook computers. For data storage customers the company offers highly integrated chips for voice coil and spindle motor control. Other IC products include power interface devices for computers equipped with dual battery packs or PCMCIA slots, power ICs for bus control in automobiles, and analog switches and multiplexers for use in signal switching and routing in electronic instruments and industrial equipment.

Siliconix utilizes CMOS, DMOS, BiCMOS, and BiC/DMOS (BCDMOS) technologies in the manufacture of its IC and discrete products. The company's power ICs are manufactured using its proprietary self-isolated BCDMOS technologies, which include the BCD15 process for producing power ICs operating from 2.5V to 15V and the BCD60 process for producing power ICs operating up to 60V.

Semiconductor Fabrication Facilities

Siliconix Incorporated Siliconix Incorporated 2201 Laurelwood Road 2201 Laurelwood Road Santa Clara, California 95056 Santa Clara, California 95056 Fab 2 (Will be closed in 1997) Fab 3 Capacity (wafers/week): 2,000 Capacity (wafers/week): 1,500 Wafer size: 100mm Wafer size: 150mm Processes: CMOS, DMOS, BiCMOS, BCDMOS Processes: CMOS, DMOS, BiCMOS, BCDMOS Products: Linear and power ICs, discretes Products: Power ICs and discretes Feature size: 3.0µm Feature sizes: 0.8µm-1.5µm

1-312 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Siliconix

Siliconix/TEMIC Itzehoe, Germany Cleanroom size: 44,000 square feet (Class 1) Wafer sizes: 150mm, 200mm Processes: PowerMOS, BiCMOS Products: Discretes

Siliconix also uses a foundry in Taiwan for the production of some of its cost-sensitive analog switch and low-power discrete product lines.

High-volume assembly and product testing is handled at the company's facilities in Kaohsiung, Taiwan, a joint venture in Shanghai, China, called Simconix, and at subcontractors in the Philippines, India, Taiwan, and China. A limited amount of assembly and product test is performed in Santa Clara.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-313 Simtek North American Company Profiles

SIMTEK

Simtek Corporation 1465 Kelly Johnson Boulevard Colorado Springs, Colorado 80920 Telephone: (719) 531-9444 Fax: (719) 531-9481 Web Site: www.csn.net/simtek

Fabless IC Supplier

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

1992 1993 1994 1995 1996 Sales 0.5 3125 Net Income (6) (6) (4) (3) 0.1 R&D Expenditures 32211

Employees 25 32 25 17 17

Company Overview and Strategy

Simtek Corporation has designed, developed, and marketed non-volatile semiconductor memory products since it commenced business operations in 1987. Its concentration has been on the design and development of fast nvSRAMs (non-volatile SRAMs) and associated products and technologies.

Simtek's products are aimed at avionics subsystems, portable computers and instruments, medical instrumentation, navigation aids, robotics, telecommunications systems, and other high performance applications. Military product sales represented 36 percent of total sales in 1996.

North America 47% International 53%

1996 Sales by Geographic Region

1-314 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Simtek

Management

Richard L. Petritz Chairman, President, and Chief Executive Officer Jack Maxcy Vice President, Production Albert S. Weiner Vice President, Engineering Sheldon A. Taylor Director

Products and Processes

Simtek's nvSRAM product family includes 4K, 16K, 64K, and 256K devices with access speeds ranging from 25ns to 45ns. The nvSRAMs utilize a unique patented memory cell technology called Novcel, which integrates fast SRAM and EEPROM elements in each cell. In late 1993, Simtek introduced its AutoStore™ nvSRAMs, which automatically detect power loss and transfer data from SRAM into EEPROM.

Simtek uses an advanced implementation of silicon-nitride-oxide-semiconductor (SNOS) technology in the design of its products. The company's Novcel technology is compatible with basic CMOS technology, allowing nvSRAM memory cells to be incorporated with other system level semiconductor products.

Simtek’s products are based on 1.2µm and 0.8µm process technologies. In 1996, products based on 1.2µm process technology represented 68 percent of sales, while products based on 0.8µm process technology made up the remaining 32 percent.

Semiconductor Fabrication Facilities

Simtek has foundry agreements with Chartered Semiconductor Manufacturing (CSM) of Singapore and Zentrum Mikroelektronik Dresden of Germany for the manufacture of its wafers.

Key Agreements

• Simtek signed an agreement with Zentrum Mikroelektronik Dresden (ZMD) in mid-1994 to install its 1.2µm process in ZMD's fab in Germany and to jointly develop 0.8µm process technology. The agreement was later modified to bypass the installation of 1.2µm technology and instead install 0.8µm technology. ZMD also received a license to sell Simtek's 64K and 256K nvSRAMs built in the 0.8µm process.

In 1995, the two companies expanded their relationship to include the joint development of additional nvSRAMs using the 0.8µm process. ZMD agreed to finance the development in exchange for shares in Simtek. In the second quarter of 1996, ZMD began supplying Simtek with 64K finished units based on 0.8µm process technology. ZMD is the largest shareholder of Simtek, owning 30 percent.

• Simtek entered into a manufacturing and development agreement with Chartered Semiconductor Manufacturing (CSM) in 1992 for 64K through 1M nvSRAMs. CSM will provide Simtek with wafers at least through 3Q97.

• Simtek established an agreement in 1989 with GEC Plessey Semiconductors under which GEC Plessey has the right to incorporate Simtek's non-volatile memory technology into its ASICs. In 1990, the agreement was extended to grant GEC Plessey a worldwide license to manufacture and market Simtek's nvSRAM devices.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-315 Single Chip Systems North American Company Profiles

SINGLE CHIP SYSTEMS

Single Chip Systems Corporation 10905 Technology Place San Diego, California 92127 Telephone: (619) 485-9196 Fax: (619) 485-0561

Fabless IC Supplier

Company Overview and Strategy

Single Chip Systems (formerly Instant Circuit Corporation) was established in 1992 to design and sell electrically programmable integrated circuits that employ patented antifuse technology. Specifically, Single Chip Systems is developing IC products for the radio frequency identification (RF/ID) market. The company also assembles its ICs into electronic ID tags. The company has not yet sold ICs of its own, but has produced test wafers.

Management

Bruce B. Roesner, Ph.D. Chairman and Chief Technical Officer Jacob Jacobson President and Chief Executive Officer Gregory A. Bohdan Vice President and Chief Financial Officer

Products and Processes

The company's first product is an electronic ID tag and scanner system that offers a significant increase in performance and decrease in cost compared to existing systems.

Semiconductor Fabrication Facilities

Single Chip Systems' ICs are manufactured at independent foundries.

1-316 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Sipex

SIPEX

Sipex Corporation 22 Linnell Circle Billerica, Massachusetts 01821 Telephone: (508) 667-8700 Fax: (508) 667-8310 Web Site: www.sipex.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Nippon Sipex Corporation • Chiyoda-ku, Tokyo, Japan Telephone: (81) (3) 3254-5822 • Fax: (81) (3) 3254-5824

Europe: Sipex SARL • Rungis Cedex, France Telephone: (33) (1) 4687-8336 • Fax: (33) (1) 4560-0784

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

1992 1993 1994 1995 1996 Sales 29 28 23 30 23 Net Income (8) (4) (5) (2) 4 R&D Expenditures 22345 Capital Expenditures 1112

Employees 220 247

Company Overview and Strategy

Sipex Corporation is a leading designer and manufacturer of high-performance, high valued-added analog integrated circuits. The company is focused on three market areas: data communications and telecommunications; battery powered/portable products; and industrial controls/instrumentation. Sipex serves these market sectors with three primary product lines: interface circuits, low power application-specific analog circuits, and data converter products. The company pioneered the design, development, and manufacture of electroluminescent lamp (EL) driver circuits.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-317 Sipex North American Company Profiles

Sipex was established in 1965 under the name Hybrid Systems Inc. and until the late 1980’s focused on the design and manufacture of data conversion products utilizing hybrid technology, primarily for the military market. The company merged with DataLinear Corporation in 1986 and then with Dielectric Semiconductor Inc. in 1987, at which time the company name was changed to Sipex Corporation. Then in 1988, the company acquired Barvon BiCMOS Technology, Inc., a designer and manufacturer of custom and standard monolithic products for commercial markets. The development of new standard hybrid products was discontinued in 1989, and while the company continues to support the military markets with existing hybrid products, its focus today is on commercial products.

Military 20%

Commercial 80%

1996 Sales by End-Use Market

International sales account for approximately 42 percent of the company’s net sales in 1996.

Management

James E. Donegan Chairman, President, and Chief Executive Officer Frank R. DiPietro Executive Vice President and Chief Financial Officer Raymond W.B. Chow Senior Vice President Sanford Cohen Senior Vice President, Technology

Products and Processes

Sipex offers both standard and custom products. The standard products include interface (line drivers/receivers), electroluminescent lamp driver circuits, data conversion products, and other linear products, while the custom products include full-custom monolithic ICs and custom multichip products. The company also provides dielectrically isolated silicon substrates to a broad spectrum of semiconductor manufacturers.

For interface products, Sipex offers a full line of products, including low-power single interface products supporting RS-232 and RS-485 standards and programmable multi-mode serial interface transceivers allowing single chips to communicate in up to eight different standards. These products are fabricated in a high-voltage BiCMOS process technology and specialize in low-power 5V-only operation.

The low-power application-specific products utilize a proprietary dielectrically isolated (DI) BiCMOS process technology that allows both very low voltages (1V) and very high voltages (100V) to be used simultaneously on the same IC. The company’s EL driver circuits are based on this specialized process.

For data converter products, Sipex specializes in high-accuracy 12-bit A/D and D/A converters.

1-318 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Sipex

The broad base of semiconductor processes and technologies used by Sipex enable it to design products optimized for each application. Sipex focuses on leveraging its specialized dielectrically isolated BiCMOS technology, which the company believes is particularly well suited to the low-power, low-voltage requirements of battery powered/portable products.

The company utilizes its own fabrication facility for producing 3.0µm to 5.0µm dielectrically isolated complementary bipolar and BiCMOS linear devices, and has strategic foundry relationships for producing 0.8µm to 4.0µm BiCMOS and CMOS linear devices.

Semiconductor Fabrication Facilities

As already mentioned, the company’s own wafer fabrication facility produces products utilizing the company’s DI complementary bipolar and BiCMOS processes. The company’s BiCMOS and CMOS products are manufactured using fully processed wafers supplied primarily by UMC, Orbit Semiconductor, and Calogic Corporation.

Sipex Corporation 491 Fairview Way Milpitas, California 95035 Telephone: (408) 945-9080 Fax: (408) 946-6191 Capacity (wafers/week): 500 Wafer size: 100mm Processes: Bipolar, BiCMOS Products: Linear ICs Feature sizes: 3.0µm-5.0µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-319 Space Electronics North American Company Profiles

SPACE ELECTRONICS (SEI)

Space Electronics, Inc. 4031 Sorrento Valley Boulevard San Diego, California 92121-1404 Telephone: (619) 452-4167 Fax: (619) 452-5499 Web Site: www.newspace.com/spaceelec

Fabless IC Supplier

Financial History ($M)

1995 1996 Sales 4 10

Company Overview and Strategy

Space Electronics, Inc. (SEI) was established in 1992 as a spin-off of Science Applications International Corporation (SAIC) Microelectronics Technology Center. The focus of Space Electronics is to address the niche market of spacecraft microcircuits. The company’s proprietary Rad-Pak™, Rad-Coat™, and LPT™ technologies enable off-the-shelf commercial microelectronic components to survive the typical radiation levels encountered in space.

Management

Robert Czajkowski Chief Executive Officer David J. Strobel President Paul Blevins Chief Financial Officer David Czajkowski Manager, Marketing Edward Li Manager, Sales Stuart Shanken Manager, Products

Products and Processes

Space Electronics' products and services include power MOSFETs, A/D and D/A converters, FPGAs, logic ICs, interface ICs, memory (EEPROMs, DRAMs, SRAMs, flash memories, and FIFOs), processors, and coprocessors.

For demanding imaging requirements, Space Electronics provides high performance Megatek® 2D graphics accelerator cards in “S” bus and VME bus configurations.

1-320 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles SST

SILICON STORAGE TECHNOLOGY (SST)

Silicon Storage Technology, Inc. 1171 Sonora Court Sunnyvale, California 94086 Telephone: (408) 735-9110 Fax: (408) 735-9036 Web Site: www.ssti.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Silicon Storage Technology Asia • Yokohama, Japan Telephone: (81) (45) 471-1851 • Fax: (81) (45) 471-3285

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

1992 1993 1994 1995 1996 Sales 1* 4* 4 40 93 Net Income 1 0.2 (5) 6 12 R&D Expenditures 12347

Employees 143

*Primarily license revenues

Company Overview and Strategy

Silicon Storage Technology (SST) was founded in 1989 and is a supplier of non-volatile memories, specifically flash memory devices. The company currently offers medium density devices ranging from 512K to 4M, for a range of applications in the computer, communications, multimedia, and video game markets.

Product development at SST is focused on developing new memory products featuring higher densities, such as 16M and 32M flash memories, for use in digital cameras, memory cards, and digital cellular phones. For the company’s higher density products, the company is also developing advanced process technologies.

SST made its initial public offering in November 1995.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-321 SST North American Company Profiles

Other 27% Taiwan 39% U.S. 14% Japan 20%

1996 Sales by Geographic Region

Management

Bing Yeh Chairman, President, and Chief Executive Officer Thomas A. Freeze Executive Vice President and Chief Operating Officer Yaw-Wen Hu Vice President, Technology Development and Wafer Manufacturing Isao Nojima Vice President, Memory Design and Product Engineering Michael J. Praisner Vice President, Finance and Administration, and Chief Financial Officer David Sweetman Vice President, Quality and Customer Support Amy Yuen Vice President, Operations

Products and Processes

Page Mode Flash Memories— 512K Page Mode Flash Memory—2.7V-, 3V-, and 5V-only 1M Page Mode Flash Memory—2.7V-, 3V-, and 5V-only 2M Page Mode Flash Memory—2.7V-, 3V-, and 5V-only

Page Erase, Byte Program Flash Memories 4M SuperFlash Flash Memory—2.7V-, 3V-, and 5V-only 4M PCMCIA Interface Flash Memory—3V- and 5V-only

The company’s products are designed and manufactured using the company proprietary SuperFlash™ CMOS technology.

Semiconductor Fabrication Facilities

SST is a fabless company, therefore, its uses independent foundry companies for the manufacturing of its devices. The company’s primary foundry partners are Sanyo and Winbond, but SST also has foundry and licensing agreements with TSMC and Seiko Epson.

1-322 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles SST

Key Agreements

• In February 1997, SST signed an agreement with foundry partner TSMC for the production of its 2M products. As part of the agreement, SST licensed its SuperFlash technology to TSMC in exchange for manufactured wafers.

• In 1996, SST licensed its SuperFlash technology to Seiko Epson and established a foundry agreement for production capacity.

• SST established a foundry agreement with Sanyo that provides wafer production capacity to SST through 2009. SST has a similar agreement with Winbond that expires in 2008.

• SST licensed Rockwell the right to use its technology to produce and market 0.8µm embedded modem chips. The company has similar agreements with ISD and Analog Devices.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-323 Standard Microsystems North American Company Profiles

STANDARD MICROSYSTEMS (SMC)

Standard Microsystems Corporation Component Products Division 80 Arkay Drive Hauppauge, New York 11788-9725 Telephone: (516) 435-6000 Fax: (516) 271-6004 Web Site: www.smc.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Toyo Microsystems Corporation (SMC Subsidiary) • Tokyo, Japan Telephone: (81) (3) 5721-2271 • Fax: (81) (3) 5721-2270

Europe: Standard Microsystems GmbH • Munich, Germany Telephone: (49) (89) 92861170 • Fax: (49) (89) 92861190

Asia-Pacific: Standard Microsystems Corporation • Taipei, Taiwan Telephone: (886) (2) 578-7118 • Fax: (886) (2) 579-1737

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

1993 1994 1995 1996 1997 Corporate Sales 251 323 379 342 354 Net Income 16 20 24 12 (21)

Semiconductor Sales 25 57 117 139 179

Company Overview and Strategy

Standard Microsystems Corporation (SMC) is comprised of two complementary business divisions: Component Products and System Products. The System Products Division designs, produces, and markets hardware and software products for the PC local area network (LAN) market. The Component Products Division develops, manufactures, and markets VLSI microperipheral circuits. Its products are sold chiefly in the PC market for input/output and network control applications, and in industrial and transportation markets for network control applications.

1-324 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Standard Microsystems

SMC was strictly a chip manufacturer when it was founded in 1971. Then, in the early 1980's, the System Products Division was created and in 1991, Western Digital's LAN Products Division was acquired. The company's networking business grew to represent as much as 90 percent of total revenues (fiscal 1993). However, demand for the Component Products Division’s products has been strong over the past few years, boosting its share of total revenues to 50 percent in fiscal 1997.

To further its advancement into the chipset market, the Component Products Division announced the acquisition of EFAR Microsystems, Inc. in early 1996. Technologies obtained from the acquisition include the UltraCore™ PCI PC systems logic chipset for 64-bit microprocessors and the UltraCache™ PCI core logic chipset with integrated cache memory. The UltraCore was developed in cooperation with MoSys Inc. EFAR now operates as a separate business unit called the Personal Computer Systems Logic Business Unit within the Component Products Division of SMC.

In early 1997, SMC made its move toward the application specific memory (ASM) market by purchasing a 20 percent equity stake in Ontario, Canada-based Accelerix. As part of the agreement, SMC gained rights to market, second-source, and enhance technology developed by Accelerix. SMC plans to combine its skills with those of other companies associated with Accelerix to pursue the PC semiconductor market with “system-on-a-chip” devices that employ ASM technology.

Management

Standard Microsystems Corporation Paul Richman Chairman and Chief Executive Officer Eric M. Nowling Acting Chief Financial Officer Arthur Sidorsky Executive Vice President, Component Products Division Lance Murrah Senior Vice President and General Manager, System Products Division Reginald R. Maton, Jr. Vice President and Chief Information Officer

SMC’s Component Products Division John E. Burgess Vice President, Sales Douglas L. Finke Vice President and GM, Wafer Foundry Business Unit Lawrence H. Goldstein Vice President, Engineering R. Hollingsworth Vice President, Marketing Peter Ju Vice President, Personal Computer Systems Logic Business Unit Di Ma Vice President, Component Products Operations

Products and Processes

SMC's IC product and service offerings include the following:

• Personal computer I/O devices that perform many of the basic input/output functions required in every PC, including floppy disk control, IDE hard disk interface, parallel port control, and serial port control. Included is a family of Super I/O devices that integrate all of the above functions on a single IC. The Super I/O family includes other new products such as a single-chip PCI-to-IDE hard disk interface.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-325 Standard Microsystems North American Company Profiles

• Highly integrated single-chip Ethernet products such as an IC that incorporates an encoder/decoder, 10Base-T transceiver, AT bus interface, and memory management unit (MMU) on a single chip.

• ARCNET LAN devices for use in PCs and in industrial networking environments.

• Foundry services for customers desiring wafer fabrication capacity for 1.6µm geometries and above or for specialized semiconductor processing requirements that require unique thin film expertise. In early 1997, SMC announced plans to fully convert its fab to a foundry for the production of micro-electro-mechanical systems (MEMS), which are tiny systems such as sensors, motors, and valves used in a variety of applications. SMC has been producing MEMS for several years.

Semiconductor Fabrication Facilities

SMC utilizes a mix of internal and external wafer fabrication sources to manufacture its products. Its more mature products are produced at its fab in New York, while newer products, utilizing 0.6µm and 0.5µm technologies are produced by external wafer foundries in the U.S., Europe, and Asia. SMC’s core-logic products (acquired with EFAR) are built by TSMC in Taiwan.

In 1995, SMC made a $12 million investment in Lucent Technologies’ Madrid fab and a $20 million investment in Chartered Semiconductor to enhance its external wafer supply (see Key Agreements).

Standard Microsystems Corporation Component Products Division 35 Marcus Boulevard Hauppauge, New York 11788 Capacity (wafers/week): 1,500 Wafer size: 100mm Processes: CMOS, MOS Products: LAN ICs, disk controllers, discretes, foundry services Feature sizes: 1.6µm-3.0µm (This fab is being fully converted to a dedicated MEMS foundry.)

Key Agreements

• SMC and Intel agreed to work together to integrate new semiconductor I/O chips into selected Intel PC motherboard designs through the end of 1997. SMC will provide Intel with the I/O devices, which have been specifically designed to work with Intel’s newer microprocessors and core logic chipsets. Intel holds a 10 percent equity interest in SMC.

1-326 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Standard Microsystems

• In 1995, SMC made a $20 million investment in Singapore-based foundry Chartered Semiconductor Manufacturing (CSM) in return for guaranteed capacity from CSM's new 200mm wafer fab that came on-line in 2H95.

• SMC struck a foundry deal with Lucent Technologies in 1994 under which SMC agreed to boost the capacity of Lucent's fab facility in Madrid, Spain, in return for a guaranteed portion of the fab output over a five-year period. The new equipment has the capability to produce devices with 0.9µm to 0.45µm feature sizes. SMC received its first wafers in 1996.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-327 Supertex North American Company Profiles

SUPERTEX

Supertex, Inc. 1235 Bordeaux Drive Sunnyvale, California 94089 Telephone: (408) 744-0100 Fax: (408) 734-5247 Web Site: www.supertex.com

IC Manufacturer

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

1993 1994 1995 1996 1997 Sales 24 26 32 43 49 Net Income 23579 R&D Expenditures 44465 Capital Expenditures 1125n/a

Employees 240 235 265 274 280

Company Overview and Strategy

Established in 1976, Supertex is a niche-oriented company that designs, develops, manufactures, and markets high voltage semiconductor products utilizing advanced DMOS and HVCMOS process technologies. Supertex merged CMOS and DMOS processes creating its proprietary HVCMOS® technology. The company originally conducted business as a foundry. However, starting in fiscal 1990, and through fiscal 1992, the company's foundry business was phased out as sales of proprietary products steadily increased.

Supertex's proprietary products are sold to electronic equipment manufacturers in the computer, telecommunications, instrumentation, defense, medical, and consumer products industries. More specifically, Supertex's products are targeted at applications in ultrasound imaging and medical electronics, flat panel displays, non-impact printers and plotters, telecommunications, and high-reliability military and commercial aerospace systems.

Europe and Far East United States 44% 56%

1996 Sales by Geographic Region

1-328 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Supertex

Management

Henry C. Pao, Ph.D. President and Chief Executive Officer Richard E. Siegel Executive Vice President Benedict C.K. Choy Senior Vice President, Technology Development and IC Products Michael V. Bond Vice President, DMOS Products

Products and Processes

Supertex has developed advanced technologies using CMOS and DMOS (Double-diffused MOS) processes. It pioneered the merging of CMOS and DMOS processes into its proprietary HVCMOS® (high-voltage CMOS) technology. This process allows for the combination of the high speed and low power logic circuit of CMOS and the high voltage output drive of DMOS on the same chip, thus creating the high voltage IC, or HVIC. Supertex intends to maintain a leadership position in the HVIC segment of the semiconductor industry.

• The DMOS product line includes depletion-mode and low-threshold enhancement-mode transistors and arrays.

• The CMOS products encompass a range of offerings from microprocessor supervisory ICs to encoder/decoder and smoke detector chips.

• There are three distinct categories of HVIC products available, digital products, analog products, and BiCMOS products.

• The digital product family includes driver/interface ICs for flat panel displays and non-impact printers and plotters.

• The analog product family includes high voltage analog switches and multiplexers, which are used in the medical ultrasound imaging industry, and pulse width modulators (PWMs).

• The BiCMOS product family consists of DC/DC converters and power supply ICs.

Semiconductor Fabrication Facilities

Supertex, Inc. 1225 Bordeaux Drive Sunnyvale, California 94088-3607 Cleanroom size: 13,000 square feet Capacity (wafers/week): 1,500 Wafer size: 100mm Processes: CMOS, DMOS, HVCMOS, BiCMOS Products: High-voltage ICs, discretes Feature size: 3.0µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-329 Supertex North American Company Profiles

Key Agreements

• Supertex made an agreement with Texas Instruments in 1991 that provided TI the rights to use Supertex's HVCMOS process technologies in return for license fees and royalties, as well as access to TI's foundry and assembly services.

• Supertex has received funding from the U.S. Government's ARPA agency to research and develop dielectric- isolation (DI) technology. The goal of the project is to further raise the voltage and operating speed of ICs.

1-330 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Symbios Logic

SYMBIOS LOGIC

Symbios Logic Inc. 2001 Danfield Court Fort Collins, Colorado 80525-2998 Telephone: (970) 226-9550 Fax: (970) 226-9660 Web Site: www.symbios.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Symbios Logic • Munich, Germany Telephone: (49) (89) 547470-0 • Fax: (49) (89) 547470-39

Asia-Pacific: Symbios Logic • Singapore Telephone: (65) 337-6323

Financial History ($M)

1992 1993 1994 1995 1996 Sales 228 274 354 520 600

Employees 1,950 2,010 2,200 2,300

Company Overview and Strategy

Symbios Logic was established in February 1995 when Hyundai completed the purchase of the NCR Microelectronic Products Division from AT&T Global Information Solutions Co., a wholly owned subsidiary of AT&T Corporation. Originally established in 1996, NCR Microelectronic Products Division was acquired as part of NCR Corporation in 1991 by AT&T Corporation (NCR Corporation was later named AT&T Global Information Solutions). Hyundai renamed the division Symbios Logic, Symbios being a derivative from the word symbiosis, meaning a mutually beneficial relationship.

Symbios Logic, now a wholly owned, independently operated subsidiary of Hyundai Electronics America, manufactures semicustom ICs including cell-based ASICs and gate arrays, as well as a family of application-specific standard products (ASSPs). Its cell library includes extensive analog functions for cell-based mixed-signal ASICs and complex standard function macrocells (cores) for embedded SCSI, Ethernet, disk drive electronics, and serial communications. Symbios Logic is a leader in bus interface technology, offering high-performance application- specific SCSI (including an extensive family of PCI-SCSI I/O controllers), Ethernet parts, and RAID subsystems and controllers.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-331 Symbios Logic North American Company Profiles

Several firsts claimed by the company include the first SCSI protocol chip, the first OEM RAID chipset, and the first FibreChannel RAID Controller board. The company believes it holds 33 percent of the worldwide SCSI chip market, and 15 percent of the worldwide market for disk and tape drive electronics.

Management

H. Gene Patterson (acting) President and Chief Executive Officer C.S. Chung Vice President, Global Planning and Coordination, and Chief Financial Officer Jeff Dumas Vice President, General Counsel, and Secretary Dan Ellsworth Vice President, Technology Glenn Gainley Vice President, Business Units Tom Lagatta Vice President, World Sales Al Lofthus Vice President, Marketing Tim McCarthy Vice President, Manufacturing

Products and Processes

Symbios Logic is comprised of five business groups: Client/Server, OEM RAID, MetaStor, Drive Electronics, and ASIC Solutions. Listed below are the major products of each business group.

Client/Server Products • Client and server I/O products including SCSI devices. • Communications products including LAN communications devices. • SCSI host adapter boards.

OEM RAID • RAID-related products including RAID/disk array controller boards, I/O adapter boards, and OEM storage subsystems.

MetaStor • Storage related products including RAID/disk array subsystems and tape arrays.

Drive Electronics • Disk, tape, and CD-ROM drive electronic products, including data controllers, servo subsystems, and peripheral interfaces.

ASIC Solutions • ASIC products include CMOS cell-based ASICs, both digital and mixed-signal, CMOS gate arrays, and complex SYMCore™ core-related products. In November 1996, Symbios unveiled its 0.35µm, five-layer-metal, one- million-gate, cell-based ASIC family. The company’s cell and core libraries support a wide range of ASIC applications, including set-top boxes, cellular phones, PCs, workstations, telecommunications, LAN and wireless communications, and electronic data processing. Submicron mixed-signal CMOS ASICs account for more than one-third of Symbios’ cell-based ASIC sales.

1-332 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Symbios Logic

Semiconductor Fabrication Facilities

Symbios Logic Inc. Symbios Logic Inc. 2001 Danfield Court 1635 Aeroplaza Drive Fort Collins, Colorado 80525 Colorado Springs, Colorado 80916 Telephone: (970) 223-5100 Telephone: (719) 596-5795 Cleanroom size: 24,500 square feet Cleanroom size: 24,500 square feet Capacity (wafers/week): 4,300 Capacity (wafers/week): 5,000 Wafer size: 150mm Wafer size: 200mm Process: CMOS Process: CMOS Products: ASICs, ASSPs, logic ICs, foundry services Products: ASICs, ASSPs, logic ICs Feature sizes: 0.7µm-2.0µm Feature sizes: 0.35µm-2.0µm

Approximately 20 percent of Symbios Logic’s IC products are manufactured by Hyundai.

Key Agreements

• Symbios Logic Inc. formed an alliance with Hyundai Electronics Industries (HEI) and Compass Design Automation to develop a new deep sub-micron 0.35µm five-layer metal CMOS technology. The program was successfully completed in early 1997. The partnership will likely be extended to the 0.25µm level.

• In 1995, Symbios licensed Advanced RISC Machines Ltd.’s “Thumb” 32-bit RISC processor core for use in I/O channel controllers and other intelligent peripheral products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-333 Synergy Semiconductor North American Company Profiles

SYNERGY SEMICONDUCTOR

Synergy Semiconductor Corporation 3450 Central Expressway Santa Clara, California 95051 Telephone: (408) 730-1313 Fax: (408) 737-0831 Web Site: www.synergysemi.com

IC Manufacturer

Financial History ($M)

1993 1994 1995 1996 Sales 14 19 26 30

Employees 110 175 180

Company Overview and Strategy

Founded in 1987, Synergy Semiconductor Corporation designs, develops, manufactures, and markets high- performance digital and mixed-signal integrated circuits using bipolar and BiCMOS processes. Synergy’s products include precision time-clock generators for computers and workstations, and communications circuits for local and wide area networks. Synergy’s products employ proprietary design and process technology, resulting in high-performance ICs. The company’s products are designed by an internal design team, and built in the company’s in-house wafer fabrication facility.

Management

Thomas D. Mino President and Chief Executive Officer T. Olin Nichols Chief Financial Officer George W. Brown Vice President, New Business Development Tom Lauer Vice President, Sales Larry J. Pollock Vice President, Research and Development Luke Smith Vice President, Operations E. Marshall Wilder Vice President, Quality and Administration Thomas S. Wong Vice President, Engineering

Products and Processes

Synergy supplies high-speed ICs to a range of systems vendors of public network equipment, such as multiplexers and digital access cross-connect systems (DACS); LAN and WAN private network equipment, such as adapter cards and hubs; high-performance workstations and superservers; and automatic test equipment (ATE).

1-334 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Synergy Semiconductor

Synergy’s products encompass three families: the ECLinPS and Super300K family of ultra-high-speed ECL logic products, the ClockWorks family of clock generation and distribution devices, and the SuperCOM family of optical fiber transceivers, copper wire transceivers, and clock recovery devices. Synergy recently introduced a family of network and communication products for Fast Ethernet, FDDI, ATM, SONET, and SDH applications utilizing its proprietary bipolar ASSET™ (All Spacer Separated Element Transistor) technology.

Semiconductor Fabrication Facilities

Synergy Semiconductor System Microelectronic Innovation GmbH (SMI) 3450 Central Expressway Wildbahn, Markendorf Santa Clara, California 95051 O-15203 Frankfurt (Oder), Germany Telephone: (408) 730-1313 Telephone: (49) 335-46-2200 Cleanroom size: 7,000 square feet Capacity (wafers/week): 2,400 (10,500 max.) Capacity (wafers/week): 500 Wafer size: 100mm Wafer size: 100mm Processes: Bipolar, BiCMOS Processes: Bipolar, BiCMOS Products: Logic, memory, and linear ICs, ASICs Products: Transceivers, SRAMs, logic products, Feature sizes: ≥1.2µm clock control circuits, FIFOs, translators (Joint venture between Synergy and the German Feature sizes: 1.2µm, 1.5µm (bipolar); government. Synergy holds a 49 percent stake.) 1.0µm (BiCMOS); submicron in development

Wafer probing and packaged product test capabilities are performed in-house.

Key Agreements

• In April 1995, Synergy entered into a technology license agreement with Linear Technology Corporation. Under the agreement, Synergy gave LTC the right to use the its bipolar ASSET technology to develop non- competitive products.

• In March of 1993, Synergy entered into a agreement with the German government to form System Microelectronic Innovation (SMI). This is a joint venture which is currently 49 percent owned by Synergy and 51 percent owned by the German government. As part of this agreement, Synergy transferred its ASSET technology to SMI, enabling it to produce Synergy's family of ECL SRAMs, logic ICs, clock control circuits, translators, and semicustom products and market them throughout Europe.

• Synergy entered into a comprehensive strategic alliance with Toshiba Corporation in November 1990. The alliance covers foundry, joint R&D and manufacturing, technology licensing, and an equity investment in Synergy by Toshiba. Under terms of the manufacturing agreement, Toshiba is providing Synergy with the use of a high-volume (150mm, submicron) IC fabrication line, which is running Synergy's high-performance ASSET and BiCMOS technologies. This fab allows Synergy to produce its current SRAM and logic products, as well as future products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-335 TelCom Semiconductor North American Company Profiles

TELCOM SEMICONDUCTOR

TelCom Semiconductor, Inc. 1300 Terra Bella Avenue P.O. Box 7267 Mountain View, California 94039-7267 Telephone: (415) 968-9252 Fax: (415) 967-1590 Web SIte: www.telcom-semi.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: TelCom Semiconductor GmbH • Martinsried, Germany Telephone: (49) (89) 89-56-500 • Fax: (49) (89) 89-56-5002

Asia-Pacific: TelCom Semiconductor H.K. Ltd. • Kowloon, Hong Kong Telephone: (852) 2324-0122 • Fax: (852) 2354-9957

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

1994 1995 1996 Sales 25 39 38 Net Income 1 4 (1) R&D Expenditures 1 3 4 Capital Expenditures 2 4 1

Employees 125 236 296

Company Overview and Strategy

TelCom Semiconductor emerged in December 1993 as a result of a management-led buy-out of Teledyne Industries' Teledyne Components division. The operation's history stretches back to 1960 when Teledyne Industries began Amelco Semiconductor, one of Silicon Valley's first semiconductor firms. In 1970, Amelco merged with Continental Devices to form Teledyne Semiconductor. That company was then combined with three other Teledyne divisions – Philbrick, Crystalonics, and TAC – in 1990 to form Teledyne Components. Prior to the formation of TelCom, Teledyne Components' management shut down parts of the company – Philbrick and TAC – and sold the Crystalonics line. TelCom made its initial public offering in July 1995.

Today, TelCom Semiconductor is building on Teledyne's strengths in analog and mixed-signal technology to develop standard ICs for high-volume consumer and commercial markets. TelCom's future growth strategy centers on the acquisition of mixed-signal technologies addressing the portable computing, communications, and instrumentation markets. The company has also said it will target energy management products.

1-336 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles TelCom Semiconductor

Europe 25% Asia 38%

U.S. 37%

1996 Sales by Geographic Region

Management

Phillip M. Drayer President and Chief Executive Officer Edward D. Mitchell Vice President, Engineering and Chief Technical Officer R. Michael O'Malley Vice President, Chief Operating Manager, and Chief Financial Officer Gary P. Pinelli Vice President, Sales and Marketing Ali Tasdighi Vice President, New Product Development Allan I. Resnick Director, Operations

Products and Processes

TelCom's main products are divided into three areas of focus:

• Mixed-signal ICs: includes A/D converters, V/F and F/V converters, and voltage references. • Power management ICs: includes MOSFET power drivers, PWM controllers, DC/DC converters, switching regulators, CMOS voltage detectors, microprocessor supervisor circuits, and charge pumps. • Smart sensors: includes solid-state thermal management and battery management control ICs.

Semiconductor Fabrication Facilities

TelCom Semiconductor, Inc. 1300 Terra Bella Avenue Mountain View, California 94039 Cleanroom size: 9,000 square feet Capacity (wafers/week): 1,000 Wafer size: 125mm Processes: Silicon- and metal-gate CMOS, BiCMOS, CMOS/DMOS, DMOS, bipolar Feature size: 3.0µm

Key Agreements

• TelCom established a foundry agreement with IC Works (San Jose, CA) in November 1995. Under the agreement, TelCom agreed to invest $10 million in equipment and the expansion of IC Works submicron wafer fabrication facility, in return for wafer capacity. The agreement covers a five-year period, which is expected to begin in late 1997.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-337 Texas Instruments North American Company Profiles

TEXAS INSTRUMENTS (TI)

Texas Instruments Incorporated Semiconductor Group P.O. Box 655303 Dallas, Texas 75265 Telephone: (214) 995-2011 Fax: (214) 997-5250 Web Site: www.ti.com/sc

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Texas Instruments Japan Ltd. • Minato-ku, Tokyo, Japan Telephone: (81) (3) 3457-0972 • Fax: (81) (3) 3457-1259 • Web Site: www.tij.co.jp

Europe: Texas Instruments France S.A. • Saulnier, Velizy-Villacoublay Cedex, France Telephone: (33) (1) 30-70-11-65 • Fax: (33) (1) 30-70-10-32

Asia-Pacific: Texas Instruments Taiwan Ltd. • Taipei, Taiwan Telephone: (886) (2) 377-1450 • Fax: (886) (2) 377-2718

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

1992 1993 1994 1995 1996 Corporate Sales 7,440 8,523 8,608* 11,409* 9,940 Net Income 247 472 691 1,088 63 R&D Expenditures 578 842 1,181

Semiconductor Sales 3,080 4,100 5,550 7,850 6,750 IC Sales 3,000 4,040 5,500 7,800 6,700 Discrete Sales 80 60 50 50 50 Capital Expenditures 315 525 860 1,170 1,840

Employees 60,577 59,048 56,333 59,574 59,927

*Changed to reflect discontinued operations.

1-338 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Texas Instruments

Company Overview and Strategy

Texas Instruments (TI) is one of the leading high-technology companies in the U.S. and one of the top ten semiconductor manufacturers in the world. It was founded in 1930 as Geophysical Service to provide geophysical exploration services to the petroleum industry using reflection seismographs. In 1946, the company formally added electronic systems manufacturing to its operations, and in 1951, adopted its current name. Today, TI's products include semiconductors, consumer electronics products, electrical controls, and metallurgical materials.

In 1996, TI sold its printed circuit board contract manufacturing operation to Solectron Corp. TI also sold its mobile computing business to Acer Group, its printer business to Genicom Corp., and signed a definitive agreement to sell its defense systems and electronics business to Raytheon Company. In April 1997, TI sold its software business to Sterling Software Inc.

In mid-1996, TI acquired Silicon Systems, Inc., a company whose expertise is in mixed-signal/analog circuits. Tustin, California-based Silicon Systems is operating as a wholly owned subsidiary of TI.

Other

Metallurgical Materials 1% 2%

Digital Products Europe 17% 21% North America 45% Components East Asia 81% 33%

1996 Corporate Sales by 1996 Corporate Sales by Business Segment Geographic Region

Texas Instruments’ business is based principally on its broad semiconductor technology and application of that technology to selected electronic end equipment markets. The company’s participation in semiconductors dates back to the emergence of the industry in the early 1950’s. It began the research and development of semiconductor devices in 1952. Two years later, the company commercialized the transistor and in 1958, invented the integrated circuit.

Although the company is a leading producer of DRAMs, much of its semiconductor emphasis is focused on differentiated products like digital signal processors (DSPs), microcomponents, and mixed-signal interface devices. Such products represented approximately 65 percent of the company’s semiconductor revenues in 1996. TI is the world’s leading supplier of DSPs and the second largest supplier of analog/mixed-signal ICs. The company's bipolar business, meanwhile, is shifting to advanced system logic, with new differentiated products for emerging markets in computers, consumer electronics, and telecommunications.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-339 Texas Instruments North American Company Profiles

The majority (about 75 percent) of the DRAMs TI sells are sourced from the joint venture companies in which it holds a majority interest, including TI-Acer in Taiwan, KTI Semiconductor in Japan, TECH Semiconductor in Singapore, and TwinStar Semiconductor Inc. in Texas. In addition, TI announced a new joint venture with the Italian government to construct a fab facility in Italy for the manufacture of flash memories and another with Anam Industrial Co. to build DSPs at a new fab in South Korea. To date, TI and its partners have invested more than $3 billion in capital expenditures in the joint ventures. See the Semiconductor Fabrication Facilities and Key Agreements sections below for more information on these ventures.

Management

James R. Adams Chairman William P. (Pat) Weber Vice Chairman Thomas J. Engibous President and Chief Executive Officer David D. Martin Executive Vice President Richard K. Templeton Executive Vice President and President, Semiconductor Group Richard J. Agnich Senior Vice President, Secretary, and General Counsel William A. Aylesworth Senior Vice President, Treasurer, and Chief Financial Officer Kevin McGarity Senior Vice President, Semiconductor Group and Manager, Worldwide Semiconductor Group Marketing John Scarisbrick Senior Vice President, Semiconductor Group and Manager, Worldwide Application Specific Products Del Whitaker Senior Vice President, Semiconductor Group and Manager, Worldwide Mixed-Signal and Logic Products Rick Goerner Vice President, Semiconductor Group and President, Silicon Systems Mike Hames Vice President, Semiconductor Group and Manager, Worldwide DSP Products

Products and Processes

TI's principal semiconductor products include DSPs, CISC and RISC microprocessors and controllers, graphics ICs, networking chips, ASICs, memory ICs, and mixed-signal devices. Details concerning these products are provided below.

Processors Digital Signal Processors—TI offers a variety of general-purpose DSP chips, including nine generations of dedicated and programmable 16-bit fixed-point and 32-bit floating-point DSPs; customizable and application- specific DSPs; and the highest performance DSP on the market—the TMS326C6x at 1,600 MIPS/200MHz, 10 times the MIPS performance of any DSP on the market at the time of this writing. The ‘C6x DSP is based on a very- long instruction word (VLIW) architecture and a five-layer-metal, 0.25µm CMOS process technology. By the end of 1998, TI plans to move the processor to a 0.18µm process that is expected to yield 2,000 MIPS/250MHz performance.

1-340 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Texas Instruments

Microcontrollers—TI offers an expanding family of ROM, one-time programmable, and UV-erasable 8-bit microcontrollers for applications in automotive, communications, computer, consumer electronics, and industrial equipment. The company’s next-generation 8-bit and 16-bit MCUs offer higher integration levels by utilizing TI’s Prism process for reconfigurable MCU libraries.

LAN Products—This group of products includes media access controllers, switches, communications processors, and physical layer interface devices.

Mixed-Signal and Analog Devices TI offers a wide range of mixed-signal and standard analog semiconductor products, including power supply products, 1394 devices, Universal Serial Bus (USB) products, fiber channel serial buses, amplifiers, comparators, data converters, RAMDACs, telecommunications ICs, power ICs, sensor signal processors, hard disk drive ICs, speech processors, digital tapeless answering devices (DTADs), and CCDs. Several of these products are available in low-voltage (3V) versions.

Advanced System Logic Devices This family of products includes a full spectrum of devices in a variety of process technologies, including CMOS, bipolar, and BiCMOS. TI has second-source agreements with Philips Semiconductors and Hitachi for Advanced BiCMOS Technology (ABT) logic devices as well as for low-voltage logic chips.

Memory ICs TI’s extensive line of memory ICs includes a broad family of DRAMs (16M and 64M), synchronous DRAMs (SDRAMs), flash memories (512K to 4M), and FIFOs.

In non-volatile memory, TI has shifted its focus from EPROMs to flash memories. The company plans to build on its strength in DRAM technology to expand its capability in high-density flash products. Development plans for future new high-density products are being evaluated using 0.12µm-0.15µm technology derived from 1G DRAM technology.

Application-Specific ICs (ASICs) TI was the third largest North American ASIC vendor in 1996. Its application-specific IC products include high- speed bipolar and CMOS PLDs and CMOS and BiCMOS gate arrays, embedded arrays, and standard cells. The company’s most advanced ASICs are manufactured with a four-level-metal 0.35µm CMOS process, enabling designs of up to 1.7 million gates. In May 1996, TI announced its 0.18µm TImeline technology and was the first to offer the capability to place 125 million transistors on a single chip.

Texas Instruments sold its antifuse FPGA business to Actel Corporation in 1995. TI had been a licensed second source of Actel's FPGAs since 1988.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-341 Texas Instruments North American Company Profiles

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

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

Semiconductor Fabrication Facilities

Texas Instruments has several major wafer fab projects underway. At the company’s main campus in Dallas, Texas, $2 billion is being spent to put up a new DSP production facility (DMOS-6) and an R&D development fab (R&D-1). Both are expected to begin production by the end of 1997. The R&D-1 facility will be used for work on 0.18µm and 0.12µm device generations and for the company’s development of 300mm wafer technology.

In early 1997, TI announced that it had signed an agreement with the Italian government to build a second fabrication facility and an R&D center in Avezzano, Italy. The $1.2 billion fab will have the capability to process ICs on 300mm wafers, with geometries of 0.28µm and below, when operations start in 1999. Current plans call for the production of flash memories and DRAMs at the facility.

As mentioned earlier, a great deal of fab activity continues to take place at each of TI’s joint venture companies. In 1996, KTI completed an expansion of its fab that doubled the facility’s wafer capacity. TI-Acer completed construction of its second fab in early 1997. TwinStar began production in mid-1996 at its first fab. And, TECH Semiconductor is building its second wafer fab, which will have a capacity of 10,000 200mm wafers per week and is expected to be ready for production in 1998.

1-342 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Texas Instruments

In April 1997, Texas Instruments pulled out of a $1.4 billion Thailand joint DRAM venture with Charn Uswachoke, founder and CEO of Alphatec. Under the deal two companies were to be formed: Alpha-TI Semiconductor, a $1.2 billion 16M and 64M DRAM fab; and Alpha Memory, a $200 million assembly and test facility. Reasons cited for TI’s withdrawal include weakness in the DRAM market and a poor Thai economy. Construction of both facility shells has been completed, but no capital equipment orders were ever placed.

Texas Instruments Texas Instruments 13500 North Central Expressway 13500 North Central Expressway Dallas, Texas 75243 Dallas, Texas 75243 Telephone: (214) 995-2001 Telephone: (214) 995-2001 DMOS 4 DMOS 5 Cleanroom size: 50,000 square feet (Class 1) Cleanroom size: 35,000 square feet (Class 1) Capacity (wafers/week): 21,000 Capacity (wafers/week): 6,000 Wafer size: 150mm Wafer size: 200mm Process: CMOS Process: CMOS Products: DRAMs, EPROMs, logic ICs Products: DSPs, MPUs Feature sizes: 0.5µm-0.8µm Feature sizes: 0.35µm-0.5µm

Texas Instruments Texas Instruments 13500 North Central Expressway 13500 North Central Expressway Dallas, Texas 75243 Dallas, Texas 75243 Telephone: (214) 995-2001 Telephone: (214) 995-2001 DMOS 6 R&D 1 Cleanroom size: 118,000 square feet Cleanroom size: 51,000 square feet Capacity (wafers/week): 7,500 Wafer size: 200mm Wafer size: 200mm Process: CMOS Process: CMOS Products: R&D Products: DSPs Feature sizes: 0.12µm-0.25µm Feature sizes: 0.25µm, 0.35µm (Operations scheduled to begin in late 1997) (Operations scheduled to begin in late 1997)

Texas Instruments Texas Instruments 13500 North Central Expressway 13500 North Central Expressway Dallas, Texas 75243 Dallas, Texas 75243 Telephone: (214) 995-2001 Telephone: (214) 995-2001 DFAB DP1 Cleanroom size: 60,000 square feet (Class 1) Cleanroom size: 17,000 square feet (Class 1) Capacity (wafers/week): 5,375 Capacity (wafers/week): 1,000 Wafer sizes: 100mm, 150mm Wafer size: 100mm Processes: Bipolar, MOS, GaAs Process: GaAs Products: Analog and memory ICs, discretes Products: Analog and digital ICs Feature size: 0.8µm Feature sizes: 0.5µm-2.8µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-343 Texas Instruments North American Company Profiles

Texas Instruments Texas Instruments 2301 North University Highway 75 South Lubbock, Texas 79415 Sherman, Texas 70590 Telephone: (806) 741-2000 Telephone: (214) 868-5980 LMOS Fab SFAB Cleanroom size: 45,000 square feet Cleanroom size: 50,000 square feet (Class 1) Capacity (wafers/week): 8,600 Capacity (wafers/week): 10,000 Wafer size: 125mm Wafer size: 125mm Processes: CMOS, NMOS Process: Bipolar Products: EPROMs, ASICs Products: Logic ICs, MPRs Feature sizes: 0.8µm-2.0µm Feature size: 2.0µm

Texas Instruments Texas Instruments Japan Ltd. 32201 Southwest Freeway 18-36, Minami 3-chome Stafford, Texas 77477 Hatagoya-shi, Saitama Prefecture 334 Telephone: (281) 274-2000 Japan HFAB Telephone: (81) (48) 282-2211 Cleanroom size: 27,000 square feet HATO Fab Capacity (wafers/week): 8,600 Capacity (wafers/week): 4,000 Wafer size: 125mm Wafer size: 125mm Processes: CMOS, NMOS Processes: CMOS, NMOS Products: EPROMs, ASICs Products: Logic ICs, ASICs Feature sizes: 0.8µm-2.0µm Feature size: 1.0µm

Texas Instruments Japan Ltd. Texas Instruments Japan Ltd. 2355 Kihara Miho-Mura 2355 Kihara Miho-Mura Inashiki-gun, Ibaraki Prefecture Inashiki-gun, Ibaraki Prefecture Miho 300-04, Japan Miho 300-04, Japan Telephone: (81) (29) 885-3311 Telephone: (81) (29) 885-3311 MIHO 5 MIHO 6 Capacity (wafers/week): 5,750 Capacity (wafers/week): 6,250 Wafer size: 125mm Wafer size: 150mm Processes: CMOS, MOS Process: CMOS Products: ASICs, ASSPs, MCUs, DSPs Products: DRAMs, MPUs, Feature sizes: 0.5µm-1.0µm Feature sizes: 0.35µm-0.5µm

1-344 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Texas Instruments

Texas Instruments Japan Ltd. Texas Instruments Italia S.p.A. 4260 Aza-Takao Via Antonio Pacinotti 5/7 Oaza-Kawasaki Nucleo Industriale Hiji-Machi, Hayami-gun I-67051 Avezzano, Italy Oita Prefecture 979-15, Japan Telephone: (39) 863-4321 Telephone: (81) (97) 772-111 AMOS 1 HIJI Fab Cleanroom size: 45,000 square feet Capacity (wafers/week): 4,500 Capacity (wafers/week): 5,000 Wafer size: 150mm Wafer size: 150mm (plans for 200mm conversion) Processes: CMOS, BiCMOS, bipolar Process: CMOS Products: Logic and analog ICs, DRAMs Products: DRAMs Feature sizes: 0.5µm-1.0µm Feature size: 0.8µm (Joint venture with the Italian government.)

Texas Instruments Italia S.p.A. Texas Instruments Italia S.p.A. Via Antonio Pacinotti 5/7 Via Antonio Pacinotti 5/7 Nucleo Industriale Nucleo Industriale I-67051 Avezzano, Italy I-67051 Avezzano, Italy Telephone: (39) 863-4321 Telephone: (39) 863-4321 AMOS 2 AMOS 3 Capacity (wafers/week): 7000 Capacity (wafers/week): 1,650 Wafer size: 200mm Wafer size: 300mm Process: CMOS Process: CMOS Products: DRAMs Products: Flash memories, DRAMs Feature size: 0.5µm Feature size: 0.28µm (Joint venture with the Italian government.) (Joint venture with the Italian government. Operations scheduled to begin in 1999.)

Texas Instruments Deutschland GmbH Silicon Systems, Inc. (subsidiary of TI) Haggertystrasse 1 2300 Delaware Avenue Freising, Germany Santa Cruz, California 95060 Telephone: (49) 816-1801 Cleanroom size: 52,000 square feet FFAB Capacity (wafers/week): 6,500 Capacity (wafers/week): 7,500 Wafer size: 150mm Wafer size: 150mm Processes: Bipolar, CMOS, BiCMOS Processes: CMOS, BiCMOS Products: Mixed-signal ICs Products: Logic and analog ICs, ASSPs Feature sizes: 1.0µm-3.0µm Feature sizes: 0.6µm-0.8µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-345 Texas Instruments North American Company Profiles

KTI Semiconductor Ltd. TI-Acer Incorporated 189-1 Hirano-cho 4F, Industry East 9th Road Nishiwaki City Science-Based Industrial Park Hyogo Prefecture 677, Japan Hsinchu, Taiwan Cleanroom size: 48,400 square feet Telephone: (886) (3) 5785112 Capacity (wafers/week): 6,250 Fax: (886) (3) 5782038 Wafer size: 200mm Fab 1 and Fab 2 Process: CMOS Cleanroom size: 97,000 square feet Products: DRAMs, ASICs, MPUs, DSPs Capacity (wafers/week): 10,000 Feature sizes: 0.35µm-0.8µm Wafer sizes: 150mm, 200mm (Joint venture with Kobe Steel) Process: CMOS Products: DRAMs Feature sizes: 0.35µm-0.8µm

TECH Semiconductor Singapore Pte Ltd. TECH Semiconductor Singapore Pte Ltd. P.O. Box 2093, SE 9040 P.O. Box 2093, SE 9040 990 Bendemeer Road 990 Bendemeer Road Singapore 1233 Singapore 1233 Telephone: (65) 298-1122 Telephone: (65) 298-1122 Fab 1 Fab 2 Cleanroom size: 40,000 square feet Capacity (wafers/week): 10,000 Capacity (wafers/week): 6,250 Wafer size: 200mm Wafer size: 200mm Process: CMOS Process: CMOS Products: DRAMs Products: DRAMs Feature size: 0.25µm Feature sizes: 0.35µm, 0.5µm (Joint venture with the Economic Development (Joint venture with the Economic Development Board of Singapore, Canon, and HP. Operations Board of Singapore, Canon, and HP.) scheduled to begin in 1998.)

TwinStar Semiconductor Inc. 500 West Penner Road Richardson, Texas 75080 Telephone: (214) 994-5800 Cleanroom size: 48,000 square feet Capacity (wafers/week): 2,000 Wafer size: 200mm Process: CMOS Products: DRAMs Feature size: 0.35µm (Joint venture with Hitachi. Began production in mid-1996.)

1-346 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Texas Instruments

Key Agreements

• It was announced in early 1997 that Hitachi, Mitsubishi, and Texas Instruments will co-develop the cell architecture for a 1G DRAM as well as the process technology needed to manufacture it. Hitachi has a long- standing relationship with TI to jointly develop and produce DRAMs.

• TI formed an alliance with Anam Industrial Co. in South Korea calling for Anam to build an IC fabrication facility in Korea and TI to provide technical support during construction of the fab and supply the 0.35µm CMOS manufacturing technology. TI will receive, in return, a guaranteed portion of the wafer capacity for the production of DSPs. Operations at the fab are expected to begin in the first half of 1998.

• Samsung, Oki, Fujitsu, and Matsushita renewed their semiconductor patent cross-licensing agreement with TI that expired the end of 1995 by signing a 10-year deal that extends through 2005. TI has similar existing licensing agreements with LG Semicon, Micron, Hyundai, Mitsubishi, and Toshiba.

• TI is collaborating with IMEC of Leuven, Belgium, on the research of advanced lithography processes to achieve 0.18µm capabilities for manufacturing 1-gigabit-class semiconductors.

• Texas Instruments and Ericsson have a long-standing alliance in which TI has provided the Swedish company with its leading edge process technologies for wireless communications.

• Hitachi joined with Texas Instruments for 16M, 64M, and 256M DRAM development and production. The partners have built a joint 16M and 64M DRAM manufacturing facility in Texas. The $500 million factory, called TwinStar Semiconductor Inc., began producing 16M DRAMs in July 1996 and production of 64M parts is expected to start in 1997. The output is shared equally between Hitachi and TI.

• TI, Philips, and Hitachi formed a pact in 1993 covering joint development and alternate sourcing of FutureBus and BiCMOS logic IC products.

• Samsung reached an agreement with Texas Instruments in 1993 to jointly improve and operate TI’s test and assembly plant in Portugal. Each company operates separate, dedicated lines.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-347 TLSI North American Company Profiles

TLSI

TLSI, Incorporated 815 Broadhollow Road Farmingdale, New York 11735 Telephone: (516) 755-7005 Fax: (516) 755-7626

Fabless IC Supplier

Company Overview and Strategy

TLSI designs and markets analog, digital, and mixed-signal ICs for the automotive, telecommunications, industrial process control, security, home appliance, and military/aerospace markets. TLSI was formed as a division of Telephonics Corp. in 1977 to provide Telephonics with ICs needed for its military and commercial airline communication systems. Today, TLSI remains a wholly owned subsidiary of Telephonics and provides ICs to the general marketplace.

Management

Mort Pullman President R. Hartig Vice President, Business Management Jerry Powder Director, Sales

Products and Processes

TLSI offers a wide range of solutions in the area of full custom MOS, cell-based, and gate array configurations. Broken down into categories, these alternatives include the following:

Full Custom: Includes transistor-level designs. Standard Cell Library: Characterized functions with auto place-and-route using standard height and variable width cells. Standard Cell Library with Custom Interconnect: Characterized functions with Calma operator place-and-route using standard height and variable width cells. Minimum Area Cell Libraries with Custom Interconnect: Custom interconnect with minimum sized cells to reduce die area and development time/cost for higher- volume requirements where a full custom configuration may not be required. Analog and Digital Functions Combined on the Same Chip: Maximizes system integration and minimizes printed circuit board area.

When design its chips, TLSI selects any of the following process technologies that best fits the customer’s specific application: 1.5µm to 3µm CMOS, 1.5µm BiCMOS, or bipolar.

1-348 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles TranSwitch

TRANSWITCH

TranSwitch Corporation 8 Progress Drive Shelton, Connecticut 06484 Telephone: (203) 929-8810 Fax: (203) 926-9453 Web Site: www.transwitch.com

Fabless IC Supplier

Employees 100

Company Overview and Strategy

TranSwitch Corporation designs, develops, and markets highly integrated digital and mixed-signal semiconductor products for broadband telecommunications and data communications applications.

The company’s product line includes very large scale integration (VLSI) devices that serve four markets: worldwide public telephone networks, local area networks (LAN), wide area networks (WAN), and cable television (CATV) systems.

Management

Santanu Das, Ph.D. President and Chief Executive Officer Michael F. Stauff Senior Vice President, Chief Financial Officer William G. Bartholomay Vice President, Engineering John Haynes Vice President, Sales Mike McCoy Vice President, Controller Frank Middleton Vice President, PLM Transmission Products Robert G. Pico Vice President, Business Development Kandaswamy Thangamuthu Vice President, Operations Daniel C. Upp Vice President, Technology Development Jitender K. Vij Vice President, Systems Engineering

Products and Processes

TranSwitch’s IC devices include asynchronous (PDH), synchronous (Sonet/SDH), and asynchronous transfer mode (ATM) communications circuits. The asynchronous products include line interface, multiplexer/demultiplexer, framer, and data communications devices. The synchronous product line includes line termination, overhead processor, mapper, and multiplexer/demultiplexer devices. The ATM products include physical layer, ATM layer, and ATM adaptation layer devices that implement a variety of public and private switching and multiplexing products.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-349 Trident Microsystems North American Company Profiles

TRIDENT MICROSYSTEMS

Trident Microsystems, Inc. 189 North Bernardo Avenue Mountain View, California 94043-5203 Telephone: (415) 691-9211 Fax: (415) 691-9260 Web Site: www.tridentmicro.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Asia-Pacific: Trident Far East Ltd. • Kowloon, Hong Kong Telephone: (852) 2756-9666

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

1992 1993 1994 1995 1996 Sales 67 78 69 107 168 Net Income 12 10 1 8 17 R&D Expenditures 6 7 10 13 18 Foundry Fab Investment ————14

Employees 115 130 150 268 308

Company Overview and Strategy

Founded in 1987, Trident Microsystems designs, develops, and markets very large scale integrated circuit graphical user interface (GUI) accelerators, graphics controllers, and multimedia video processors targeting the mainstream PC desktop, notebook, and multimedia markets.

Trident’s initial product offerings began with SVGA controllers in 1989 and moved toward mixed-signal controllers in 1993. The year 1994 marked a year of transition for Trident that included its entrance into the GUI accelerator market. Although its revenues declined in 1994, the transition to the GUI accelerator market proved successful in the following years. Another shift in Trident’s market strategy occurred during this timeperiod. In 1994, 95 percent of Trident’s sales came from non-OEMs. In a strategic move, Trident began targeting the OEM market and currently derives about 40 percent of its sales from OEMs such as IBM, Hewlett-Packard, NEC, and Philips.

1-350 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Trident Microsystems

Trident’s product line includes a complete line of 32-bit and 64-bit integrated circuits, video accelerators, and multimedia video processing chips that provide cost-effective easy-to-use graphics solutions based on advanced technology. Trident was among the first to deliver chips for the new Unified Memory Architecture (UMA), which reduces system memory costs by efficiently using existing PC memory for the graphics frame buffer. Additionally, several of Trident’s GUI and video acceleration products include the company’s proprietary TrueVideo algorithm, the first technology to deliver horizontal/vertical interpolation and diagonal edge recovery for clearer, sharper full- motion images.

Future product development will focus on products in the high-end of the graphics market as well as the PC notebook market. In early 1997, Trident began sampling its first 3D notebook device.

Other North America 19% 22% Notebook Products GUI Accelerator 15% Desktop Products 66% Asia-Pacific 78%

1996 Sales by Product Group 1996 Sales by Geographic Region

Management

Frank C. Lin Chairman, President, and Chief Executive Officer Jung-Herng Chang, Ph.D. Vice President, Engineering Richard E. Hegberg Vice President, Worldwide Sales Peter Jen Vice President, Asia Operations James T. Lindstrom Vice President, Finance and Chief Financial Officer Amir Mashkoori Vice President, Operations Richard Silverman Vice President, Marketing Richard F. Hass Director, Marketing Communications

Products and Processes

Trident designs its products using 1.0µm, 0.8µm, and 0.6µm CMOS process technologies. The company's product line includes: 3D and MPEG ICs, advanced mixed-signal GUI accelerators, high-performance SVGA controllers, multimedia video processing devices, and LCD/CRT controllers.

In 1Q97, Trident introduced two 3D graphics controllers dubbed the 3DImage™ 975 and 3DImage™ 975DVD. Both devices are designed for 3D applications and feature 3D and 2D graphics acceleration, TV output technology, VGA imaging, and high-quality video. The 3DImage 975DVD also provides DVD playback functions for use with MMX-enabled Pentium 166MHz and higher MPUs.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-351 Trident Microsystems North American Company Profiles

Semiconductor Fabrication Facilities

Trident uses a fabless manufacturing strategy where it meets its manufacturing needs by using foundries. Prior to 1996, Trident received the majority of its wafer capacity from TSMC. In 1996, in an effort to decrease its dependence upon one foundry supplier, Trident secured additional capacity through foundry agreements with UMC and Winbond in Taiwan, and Samsung in Korea. In its agreement with UMC, Trident has purchased an equity interest in UICC, a UMC joint venture fab facility located in Taiwan. The facility was expected to begin production in mid-1997.

Key Agreements

• In May 1996, Trident and Samsung announced a long-term partnership. Samsung will provide manufacturing capacity to Trident in exchange for mixed-signal ASIC designs. In late 1996, the two companies announced the joint development of a next-generation notebook multimedia accelerator that will feature Samsung’s embedded SDRAM.

• In August 1995, Trident entered into a joint venture agreement with UMC. Under the agreement, Trident agreed to invest $60 million for a 10 percent equity interest in a new 200mm fab facility, called United Integrated Circuits Corporation (UICC). Production at the new facility, located in Taiwan, was expected to begin in mid- 1997.

• In June 1995, Trident expanded its relationship with TSMC by signing a five-year foundry agreement. Under the agreement, Trident will purchase a certain number of wafers each year from TSMC through 1999.

1-352 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles TriQuint Semiconductor

TRIQUINT SEMICONDUCTOR

TriQuint Semiconductor, Inc. 2300 NE Brookwood Parkway Hillsboro, Oregon 97124 Telephone: (503) 615-9000 Fax: (503) 615-8900 Web Site: www.triquint.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Giga A/S • Skovlunde, Denmark Telephone: (45) (44) 92-61-00 • Fax: (45) (44) 92-59-00

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

1992 1993 1994 1995 1996 Sales 29 33 30 46 60 Net Income 1 1 (10) 3 6 R&D Expenditures 7 9 10 9 11 Capital Expenditures 11114

Employees 190 195 222 285 361

Company Overview and Strategy

TriQuint Semiconductor designs, develops, manufactures, and markets a broad range of high-performance analog and mixed-signal gallium-arsenide (GaAs) ICs for the wireless communications, telecommunications, and computing markets. TriQuint's mission is to commercialize GaAs ICs for communications and computing. The company’s continued focus is on achieving new designs and introducing new products in all three market areas. In 1996, TriQuint expanded its product offerings to include GaAs foundry services.

Computing 17% International Wireless 30% Communications Telecommunications 49% United States 34% 70%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-353 TriQuint Semiconductor North American Company Profiles

TriQuint's origin can be traced back to 1978, when researchers at Tektronix Laboratories began investigating GaAs IC technology. Established as a majority-owned subsidiary in 1985, TriQuint Semiconductor was charged with developing application-specific integrated circuits (ASICs) for high-performance microwave, linear, and digital systems.

TriQuint became independent from Tektronix in 1991 when it completed a successful merger with GigaBit Logic and Gazelle Microcircuits to form a new privately-held TriQuint. In 1993, TriQuint became a public company.

Management

Steven J. Sharp President and Chief Executive Officer Edward C.V. Winn Executive Vice President, Finance and Administration, Chief Financial Officer, and Secretary Gordon Cumming, Ph.D. Vice President, Technology Bruce R. Fournier Vice President, Sales Joseph I. Martin Vice President, Corporate Development Donald Mohn Vice President and General Manager, Telecommunications and Computing David Pye Vice President, Manufacturing Operations Ron Ruebusch Vice President and General Manager, Wireless Communications

Products and Processes

TriQuint Semiconductor's standard and customer-specific products are structured into three end-market groups: wireless communications, telecommunications, and computing.

Wireless Communications—Standard products for this market are used as building blocks for multipurpose applications in radio frequency (RF) and microwave systems. These systems include personal communications networks, cellular telephones, satellite communications and navigation equipment, and wireless computer networks. In 1996, TriQuint continued to add devices to its relatively new family of high-power RF amplifier ICs for the voice and data wireless communications market.

Telecommunications—Most the company's telecommunications ICs are customer-specific, but its does offer some standard products, such as Sonet and SDH multiplexers/demultiplexers and transceivers, ATM framers, and high- performance crosspoint switches.

Computing—Standard products for this market are concentrated on solving system timing and data communications performance bottlenecks in high-performance PCs, workstations, servers, and storage systems.

The company utilizes its proprietary GaAs technology for the production of its ICs. Its GaAs process features 0.5µm to 0.7µm geometries, 4.0µm metal pitch, and a cutoff frequency of up to 21GHz.

TriQuint’s services include GaAs IC design, wafer fabrication, test engineering, package engineering, assembly, and testing.

1-354 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles TriQuint Semiconductor

Semiconductor Fabrication Facilities

TriQuint Semiconductor, Inc. 2300 NE Brookwood Parkway Hillsboro, Oregon 97124 Cleanroom size: 16,000 square feet (Class 10) Capacity (wafers/week): 1,000 Wafer size: 100mm Process: GaAs Products: ASICs, standard components, foundry services Feature sizes: 0.5µm-0.7µm

In early 1997, TriQuint moved into its new GaAs semiconductor manufacturing facility and office complex in Hillsboro, Oregon. The 165,000 square-foot site houses all of the company’s manufacturing, engineering, marketing, and administrative functions that were located in Beaverton, Oregon, with 45,000 square-feet used for the manufacturing facility.

Key Agreements

• In April 1996, TriQuint and Philips announced a wafer sourcing agreement. Under the pact, Philips will develop GaAs ICs for TriQuint to produce according to Philips’ specifications. Assembly and test will be done by Philips at a facility in Limeil, France.

• In August 1993, TriQuint and AT&T Microelectronics (now Lucent Technologies) announced a set of agreements involving the development, manufacture, and marketing of GaAs ICs for high-performance wireless and telecommunications systems. As part of the deal, Lucent discontinued its production of GaAs wafers and is instead relying on TriQuint for the manufacture of its GaAs wafers. Lucent also became a minority stockholder in TriQuint. Lucent increased its stake in TriQuint to 8.2 percent in early 1995.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-355 Tseng Labs North American Company Profiles

TSENG LABS

Tseng Labs, Inc. 6 Terry Drive Newtown, Pennsylvania 18940 Telephone: (215) 968-0502 Fax: (215) 860-7713 Web Site: www.tseng.com

Fabless IC Supplier

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

1992 1993 1994 1995 1996 Sales 75 76 79 37 26 Net Income 14 11 9 1 (14) R&D Expenditures 112315

Employees 50 95 96

Company Overview and Strategy

Tseng Labs has designed and supplied integrated circuits and board-level enhancement products for graphics and video applications since 1983, its founding year. The company's graphics and multimedia accelerator products work in conjunction with a PC’s microprocessor to enhance its overall performance by transferring the graphics and video functions from the MPU to the accelerator chip.

Until 1996, the company had mainly focused on the development of 2D graphics accelerators. However, in late 1996, the company shifted its research and development efforts away from 2D products and toward the 3D graphics market.

International 43% U.S. 57%

1996 Sales by Geographic Region

1-356 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Tseng Labs

Management

Jack Tseng Chairman, President, and Chief Executive Officer John J. Gibbons Executive Vice President and Chief Operating Officer David Kwok Ping Hui Executive Vice President, Technology Officer James E. Bauer Senior Vice President, Sales and Marketing Mark H. Karsch Senior Vice President, Finance and Administration, and Chief Financial Officer Barbara J. Hawkins Vice President and Chief Administrative Officer Thomas D. Snodgrass Vice President, Product Development

Products and Processes

The first product in the company's line of graphics accelerators, the ET4000/W32, was introduced late in 1992 and became one of the industry's more successful SVGA controllers. Two additional products were introduced in 1993—the W32i and the W32p. The W32i upgraded the W32 system with a more powerful graphics accelerator and added a new 32-bit interleaved memory controller. The W32p further enhanced graphics acceleration and added support for both local bus and the PCI bus architecture.

In November 1994, Tseng Labs introduced its VIPeR f/x advanced video image processor for multimedia systems. The VIPeR f/x enables full screen, accelerated playback of .AV1 and .MPG video files as well as simultaneous capture and display of full motion, 30 frames-per-second video.

Tseng began shipping its ET6000, the first in a family of next generation graphics controller products, in 1996. It is an advanced 128-bit graphics and multimedia engine that integrates a 2D graphics accelerator, a high quality video processor, an interface to the new high-bandwidth Multibank DRAM (MDRAM) from MoSys, Inc., and a PCI bus interface. Optimized for Windows 95 graphics performance, the ET6000 is designed to offer high resolution and color without system degradation. To complement the ET6000, Tseng also introduced the VPR6000, a video image processor, and the MPG9920, an MPEG decoder with built-in scaling capabilities. In November 1996, the company announced its plans for the ET6300 family of 3D graphics accelerators based on its ET6000 accelerator.

The company’s current products are based on CMOS process technology with line geometries as small as 0.6µm. Most of its new products are manufactured using an advanced three- or four-layer metal process and are expected to use 0.35µm process technology in the near future.

Semiconductor Fabrication Facilities

Tseng currently has foundry agreements with Chartered Semiconductor Manufacturing in Singapore, Tower Semiconductor in Israel, and Winbond Electronics in Taiwan.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-357 Tundra Semiconductor North American Company Profiles

TUNDRA SEMICONDUCTOR

Tundra Semiconductor Corporation 603 March Road Ontario, Canada K2K 2M5 Telephone: (613) 592-0714 Fax: (613) 592-1320 Web Site: www.tundra.com

Fabless IC Supplier

Employees 60

Regional Headquarters/Representative Locations

North America: Tundra Semiconductor Corporation • San Jose, California Telephone: (408) 258-3600 • Fax: (408) 258-3659

Company Overview and Strategy

Located in Canada, Tundra semiconductor is a privately-held company that designs, develops, and markets PCI and VME bus-bridging components. Tundra was established originally as Newbridge Microsystems, a division of Newbridge Networks Corporation, a leader in local and wide area networking and communications equipment, but became an independent company in December 1995. As an affiliate of Newbridge Networks, Tundra has access to advanced infrastructure resources while operating as an independent corporation.

Tundra’s product strategy is to focus on the niche market of bus-bridging ICs, which control the flow of data between different bus architectures used in computer systems. The company also designs and markets a broad line of industry standard encryption components for data security in communications networks. To address the office equipment, consumer electronics, and automotive markets, Tundra offers a line of Intel-compatible 8-bit microperipheral (MPR) devices.

Management

Adam Chowenaniec President and Chief Executive Officer Jim Roche Executive Vice President and General Manager Michael Krause Vice President, Research and Development Norm Paquette Vice President, Finance Ed Hacker Director, Sales Dave Lisk Director, Operations Richard O’Connor Director, Marketing and Business Development

1-358 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Tundra Semiconductor

Products and Processes

Tundra offers a family of embedded PCI bus bridges, VMEbus bridges, encryption components, and standard 8- bit microperipheral ICs.

PCI Bus Bridges QSpan™— PCI interface for Motorola embedded processors (e.g., 68K, PowerPC) Eighty-X™—PCI interface solution for Texas Instruments’ line of TMS320C8x digital signal processors

VMEbus Bridges Universe™—VME-to-PCI bus bridge SCV64™—High-performance VME64-to-local bus bridge Trooper™ II—Slave only, low-cost VMEbus-to-local bus bridge

Data Security Products Wide array of encryption chips based on the Data Encryption Standard (DES). These products are designed for a broad range of networking and communications systems such as cable modems, ATMs, fax machines, and satellite base solutions.

8000 Microperipheral Series Six industry standard 8-bit MPRs that support the Intel x86 microprocessor family.

Key Agreements

• Tundra has strategic technology partnerships with Motorola, Texas Instruments, and Cadence Design Systems.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-359 Unitrode North American Company Profiles

UNITRODE

Unitrode Corporation 7 Continental Boulevard Merrimack, New Hampshire 03054-0399 Telephone: (603) 424-2410 Fax: (603) 424-3460 Web Site: www.unitrode.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Unitrode (U.K.) Limited • London, England Telephone: (44) (181) 3181431 • Fax: (44) (181) 3182548

Asia-Pacific: Unitrode Electronics Asia Ltd. • Kowloon, Hong Kong Telephone: (852) 2722-1101 • Fax: (852) 2369-7596

Financial History ($M), Fiscal Year Ends January 31*

1993 1994 1995 1996 1997 Sales 50 65 87 116 134 Net Income 6 9 12 18 21 R&D Expenditures 4 6 9 15 18 Capital Expenditures 16 12 18

Employees 300 425 514 620 562

*Results excluding disposed operations.

Company Overview and Strategy

Unitrode Corporation was founded in 1960 as a manufacturer of electronic components and subsystems. In 1994, the company divested its two remaining non-strategic businesses, Powercube Corporation and Micro Networks Division, leaving only its IC business, which was established in 1981. Unitrode is now focused entirely on the design and manufacture of high-performance analog/linear integrated circuits. The company's ICs are used in a variety of applications for power management and as interface devices. For the most part, the chips are used to control switching power supplies and small electronic motors, or as high-speed interface and communication circuits between various pieces of electronic equipment.

Unitrode's customers are primarily in the EDP/computer and telecommunications markets, but also in the industrial control and instrumentation, defense/aerospace, automotive, and consumer markets. The company plans to focus its new product development efforts on the communications and industrial markets.

In fiscal 1997, about 70 percent of the company's integrated circuit sales were to international customers.

1-360 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Unitrode

Automotive/Military 8%

Communications 13% Interface 26% Power Management 40% Industrial Computer/Office 60% Motor Control 19% 34%

1997 Sales by Product Type 1997 Sales by End-Use Market

Management

Robert L. Gable Chairman and Chief Executive Officer Edward H. Browder President Cosmo S. Trapani Executive Vice President and Chief Financial Officer Allan R. Campbell Senior Vice President and General Counsel S. Kelley MacDonald Vice President, Corporate Communications Patrick Moquin Vice President, Human Resources Frederick J. Myers Vice President, International Sales

Products and Processes

Unitrode's product offering is comprised of analog ICs for power supply control, motor control, lighting, power driving, power quality, and power factoring, as well as for high-speed and high-power interface applications. Most of the products are based upon proprietary designs utilizing enhanced bipolar, BiCMOS, and BCDMOS semiconductor technologies and are considered application-specific standard products (ASSPs).

Semiconductor Fabrication Facilities

In mid-1997, the company expected to complete the first phase of construction of a new 150mm BiCMOS wafer facility. The facility is expected to begin production in fiscal year 1999.

Unitrode Corporation 7 Continental Boulevard Merrimack, New Hampshire 03054 Capacity (wafers/week): 2,000 Wafer size: 100mm Processes: Bipolar, BiCMOS, BCDMOS Feature sizes: 1.5µm-5.0µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-361 Unitrode North American Company Profiles

Unitrode has agreements with four foundries to supply additional wafers, as required. In January 1995, the company signed an agreement with GMT Microelectronics Corporation (former Commodore Semiconductor fab in Norristown, Pennsylvania) for additional wafer capacity. Under the agreement, Unitrode made a $2 million equity investment in GMT, in return for up to 30 percent of GMT's capacity. In February 1996, the company made an additional $1.5 million investment in GMT which entitles the company to favorable pricing on certain products. During fiscal year 1997, Unitrode received less than 20 percent of its output from outside foundries.

Key Agreements

• Unitrode entered into an alliance with Irvine Sensors. Under the agreement, Unitrode became a licensee and exclusive second-source for Irvine Sensors’ wireless infrared communication ICs.

• Unitrode entered into an agreement with GMT Microelectronics Corporation in early 1995 to supply wafers to Unitrode. As part of the agreement, Unitrode invested $2 million in GMT. The company made an additional investment of $1.5 million in GMT which entitles the company to favorable pricing on certain products.

• Unitrode agreed with Toko Inc. (Japan) in 1993 to jointly develop power-control ICs. The deal also calls for the cross-licensing and alternate sourcing of select proprietary products.

1-362 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Universal Semiconductor

UNIVERSAL SEMICONDUCTOR

Universal Semiconductor, Inc. 1925 Zanker Road San Jose, California 95112 Telephone: (408) 436-1906 Fax: (408) 436-1125

IC Manufacturer

Employees 30

Company Overview and Strategy

Universal Semiconductor was established in 1978 to serve as a CMOS foundry offering design and manufacturing of customers' custom/semicustom devices, gate arrays (digital and mixed-signal), dielectrically isolated (DI) high- voltage ICs, linear arrays, and DMOS FETs.

Management

Vic Hejmadi President and Chief Executive Officer Tony Telesca Director, Marketing and Sales

Products and Processes

Universal Semiconductor uses CMOS processing for all devices and offers gate arrays with up to 2,400 gates, mixed-signal gate arrays (18V breakdown), and 300V and 500V dielectrically isolated high-voltage ICs, as well as radiation-hardened devices.

Semiconductor Fabrication Facilities

Universal Semiconductor, Inc. 1925 Zanker Road San Jose, California 95112 Cleanroom size: 9,000 square feet Capacity (wafers/week): 1,500 Wafer size: 100mm Process: CMOS Products: ASICs, linear devices, discretes, foundry services Feature sizes: 1.5µm, 2.0µm, 3.0µm, 4.0µm, 5.0µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-363 UTMC Microelectronic Systems North American Company Profiles

UTMC MICROELECTRONIC SYSTEMS

UTMC Microelectronic Systems 4350 Centennial Boulevard Colorado Springs, Colorado 80907 Telephone: (719) 594-8000 Fax: (719) 594-8032 Web Site: www.utmc.com

Fabless IC Supplier

Financial History ($M)

1992 1993 1994 1995 1996 Sales 20 27 30 30 38

Employees 350 300 300 180 170

Company Overview and Strategy

UTMC Microelectronic Systems is a subsidiary of United Technologies Corp. (UTC), a $23 billion Hartford, Connecticut-based provider of high technology products to the aerospace, building systems, and automotive industries throughout the world.

Established in 1980, UTMC serves government and commercial aerospace, commercial property and residential housing, and automotive manufacturing customers. It was originally established to assist other UTC divisions with the integration of custom and semicustom microelectronics into their systems. In 1985, UTMC began supplying semicustom and military-standard VLSI circuits to external companies in the aerospace and defense industries. Today, the majority of UTMC’s business is with external companies. The company also engages in government- and customer-funded R&D.

Up to about mid-1995, UTMC manufactured its IC products in its own fab in Colorado Springs. However, the company took on a fabless strategy with the sale of its fab to Rockwell Semiconductor. UTMC reportedly sold the fab because it could not be operated economically. It was underutilized due to the fact that the company sells only a small number of wafers with relatively high value. In addition, UTMC felt that by adopting a fabless strategy, it would be able to move to 0.8µm and smaller geometries more quickly while not incurring the large capital costs associated with a submicron fab.

In 1996, UTMC underwent another strategic change. UTMC combined its IC business with the former Commercial Aircraft Electronics (CAE) division of Hamilton Standard, moved into a former Hamilton Standard facility, and changed its name to UTMC Microelectronic Systems. The newly acquired 104,000 square-foot facility houses the company’s research and development, engineering, IC assembly, test, sales and marketing, as well as the newly acquired circuit card assembly operation. The circuit card operation is a high-mix low-volume operation focusing on high reliability for the aerospace market.

1-364 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles UTMC Microelectronic Systems

Management

Charles "Nick" H. Ide President Mike Dansby Chief Financial Officer Chuck Gregory Vice President, Business Development and Engineering Dwight Deem Director, Sales and Marketing Dick Ahlquist Manager, ASIC Product Marketing

Products and Processes

UTMC offers semicustom and military-standard products. Its semicustom products include CMOS gate arrays with densities from 3,400 to 200,000 usable gates, CMOS cell-based ASICs, and radiation-hardened antifuse programmable logic arrays. The process used for the gate arrays and standard cells is a JAN-qualified low- temperature double- or triple-metal rad-hard process with 0.8µm and 1.0µm geometries.

The company also offers a large selection of radiation-hardened monolithic, ASD/ENASC-certified MIL-STD-1553 products. These include bus interface and control devices, bipolar bus transceivers, 16-bit RISC MPUs and 8-bit MCUs in both rad-hard and non-rad-hard versions, mask ROMs, PROMs, dual-port RAMs, SRAMs of up to 256K density, and CMOS PLD and MSI logic devices.

Radiation-hardened products accounted for about 50 percent of UTMC’s IC sales in 1996.

From its newly acquired circuit card assembly and test division, UTMC offers circuit board assembly and test services for low volume production runs of complex board requirements. Typical applications are commercial and military aircraft and environmental controls.

Semiconductor Fabrication Facilities

UTMC sold its fabrication facility to Rockwell Semiconductor in mid-1995. As part of the deal, Rockwell will supply UTMC with wafers through 1997 as it makes the transition to a fabless operation. In March 1996, UTMC announced a foundry deal with Lockheed-Martin Federal Systems to obtain production capacity for rad-hard products from Lockheed-Martin’s fab in Manassas, Virginia (see Key Agreements). Other foundries are expected to be added in 1997 to support new semicustom and standard products with 0.6µm and 0.5µm geometries.

Key Agreements

• UTMC established a three-year foundry supply deal with Lockheed-Martin Federal Systems in March 1996. The deal makes Lockheed-Martin UTMC’s main foundry for rad-hard CMOS devices.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-365 Vadem North American Company Profiles

VADEM

Vadem Ltd. 1960 Zanker Road San Jose, California 95112 Telephone: (408) 467-2100 Fax: (408) 467-2199 Web Site: www.vadem.com

Fabless IC Supplier

Employees 45

Company Overview and Strategy

Vadem was established in 1983 as a design house specializing in technologies for the portable computer industry that was emerging at the time. The name Vadem is a derivative of the Latin word, vade mecum—meaning “something that one carries around.”

Vadem’s first project was the development of hardware/firmware emulation technology to help PC makers resolve compatibility issues raised by the use of low-power CMOS devices. Another early project was the development of one of the world’s first laptop computers, a design that was sold to Zenith who would go on to become the first to bring a laptop into full volume production. Vadem also designed what was called a PCRadio, which was a portable system emphasizing communications rather than computing power.

In 1987, Vadem announced the development of its first IC for portable systems, a chipset for the 186 PC generation. By 1992, the company had developed a full line of chips for portable computing, including a notebook power management unit that was later sold by Intel as the 82347, a single-chip LCD VGA controller (VG- 660), and a single-chip DOS-compatible computer (VG-230) for low-cost handheld systems.

Today, Vadem is building upon its established portable design experience to become a leading designer and marketer of ICs and related software for subnotebook-size computers and personal communications products such as handheld data collection terminals, cellular telephones, and personal organizers.

1-366 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Vadem

Management

Chikok Shing Chairman John Zhao President and Chief Executive Officer Gary Rhea Chief Financial Officer Ahmet Alpdemir Vice President, Marketing Henry Fung Vice President, Engineering John C. Kamps Vice President, Sales Siu-Kuen Tsang Director, ASIC Development Norman Farquhar Manager, Software Phil Mitchell Manager, Single-Chip PC Products Geoff Teng Manager, PCMCIA Products

Products and Processes

Vadem's IC products include display controllers, microprocessors, PCMCIA host adapters, and PC card controllers for portable systems. Vadem’s product offerings also include software, firmware, and development tools. Some of these products are described below.

• VG-330—a 32MHz x86-compatible processor for handheld systems. This highly integrated processor incorporates an MPU core and core logic, memory and power management, a memory controller, a PCMCIA controller, a VGA LCD controller, a serial port with HP IR capability, an AT-style bus controller, and a serial keypad interface or scanned keyboard matrix. The device is designed for 3.3V operation.

• VG-469—a 208-pin PCMCIA card controller that is register- and software-compatible with Intel's i82365SL controller ICs. The part provides a migration path for current 5V devices, emerging 3.3V, and future lower- voltage systems and is compatible with PCMCIA 2.1 ExCA (Exchangable Card Architecture) extension, Microsoft's Plug-and-Play ISA version 1.0a, and PC Card DMA operation.

• VG-660—claimed to be the industry's first LCD VGA controller. It supports small flat panel displays with enhanced features and VGA compatibility.

Future products will include highly integrated Mips-based RISC processors.

Semiconductor Fabrication Facilities

Vadem's primary foundry sources are NEC in Japan and Samsung in Korea. Atmel, Symbios Logic, and VLSI Technology are used to a lesser extent.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-367 Vantis North American Company Profiles

VANTIS

Vantis Corporation 920 DeGuigne P.O. Box 3755 Sunnyvale, California 94088 Telephone: (408) 732-0555 Fax: (408) 774-7216 Web Site: www.vantis.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

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

Japan: Advanced Micro Devices • Shinjuku-ku, Tokyo, Japan Telephone: (81) (3) 3346-7570 • Fax: (81) (3) 3342-7606

Asia-Pacific: Advanced Micro Devices Far East Ltd. • Kowloon, Hong Kong Telephone: (852) 2956-5322 • Fax: (852) 2956-0588

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

1994 1995 1996 Sales 187 256 248

Employees 300

Company Overview and Strategy

Vantis Corporation was spun off from AMD in 1997 to form a wholly-owned programmable logic subsidiary of AMD. The company’s roots in programmable logic devices (PLDs) date back to 1978 when Monolithic Memories, Inc. announced the development of the PAL® device. MMI merged with AMD in 1987. Today, Vantis is the dominant supplier of simple PLDs and the world’s third largest supplier of all PLDs.

There are six basic areas addressed by Vantis’ PLDs: high-speed PAL devices, universal PAL devices, industry- standard PAL devices, low-power PAL devices, asynchronous PAL devices, and high-density PLDs. Much of Vantis’ emphasis is being placed on the company’s mid- to high-density MACH PLD products.

1-368 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Vantis

Vantis’ roadmap calls for CPLDs with up to 1,000 macrocells by 1998 and CPLDs with high-density macrocells and integrated cores by 1999. The company will utilize AMD’s core library including its digital signal processing, PCI, and microprocessor cores. In mid-1997, Vantis plans to introduce its first FPGA product in the 30,000-gate range and then move into the 250,000-gate range by the year 2000. Also by 2000, Vantis wants to become an independent, publicly held company.

Management

Richard Previte Chairman Richard H. Forte President and Chief Executive Officer Frank Barone Vice President and Chief Operating Officer David Chavoustie Vice President, Worldwide Sales and Marketing Al F. Frugaletti Vice President, Sales, North American and Worldwide Distribution Andy Robin Vice President, Marketing

Products and Processes

For high-performance applications in the networking, telecommunications, computing, and industrial markets, Vantis offers its MACH families of high-density EECMOS PLDs. There are five MACH families, each addressing a specific market need and all include features such as guaranteed fixed timing, PCI compliancy, power management, and 3.3V options. The MACH 5, MACH Superset, and MACH Performance Plus CPLDs come with JTAG in-system programming (ISP) support for no additional cost.

• MACH 1 and 2 Families—These families (including the MACH Performance Plus CPLD products) consist primarily of synchronous devices for synchronous subsystem applications like memory controllers and peripheral controllers and an asynchronous device for applications having asynchronous inputs and for collecting random glue logic. Characteristics include 900 to 3,600 PLD gates, 44 to 84 pins, and 32 to 128 macrocells.

• MACH 3 and 4 Families—These MACH Superset CPLDs provide approximately three times the density (up to 10,000 PLD gates), two times the number of macrocells (up to 256), and two times the amount of I/O (up to 208 pins) of the original MACH 1 and 2 families.

• MACH 5 Family—This is Vantis’ newest CPLD product family with speeds as fast as 7.5ns at 512 macrocells. The MACH 5 devices feature a new hierarchical switch-matrix architecture that allows shorter design times. While a 0.35µm (effective gate length) CMOS process is currently used to manufacture the MACH 5 PLDs, a 0.25µm six-layer-metal process is under development and expected to be implemented by 2000.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-369 Vantis North American Company Profiles

Vantis also offers one of the industry’s widest variety of PAL devices.

• High-Speed PALs—Electronically erasable (EE) CMOS and bipolar PALs with delay times as low as 5ns and 4.5ns, respectively. • Universal PALs—EECMOS PALs with user-programmable output logic macrocells. • Industry-Standard PALs—Bipolar TTL PALs in a variety of speed and power grades. • Low-Power PALs—Zero-power CMOS PALs for portable or battery-operated systems (stand-by current of less than 15µA) and quarter-power CMOS PALs that can cut system power consumption 50 percent by replacing equivalent CMOS PALs. • Asynchronous PALs—CMOS PALs that are optimized for asynchronous and bus interface applications.

Semiconductor Fabrication Facilities

All of the company’s products are manufactured in AMD’s wafer fabrication facilities in Austin, Texas, on processes dedicated to programmable logic. AMD’s Fab 25, where much of Vantis’ devices are manufactured, is a 200mm fab with 0.35µm line geometries.

1-370 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Vitesse Semiconductor

VITESSE SEMICONDUCTOR

Vitesse Semiconductor Corporation 741 Calle Plano Camarillo, California 93012 Telephone: (805) 388-3700 Fax: (805) 987-5896 Web Site: www.vitesse.com

IC Manufacturer

Regional Headquarters/Representative Locations

Europe: Vitesse Semiconductor Corp. • Morainvilliers, France Telephone: (33) (1) 3975-6310 • Fax: (33) (1) 3975-2062

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

1992 1993 1994 1995 1996 Sales 37 26 36 43 66 Net Income 1 (19) (4) 2 13 R&D Expenditures 9 10 9 9 11 Capital Expenditures 362311

Employees 300 238 201 235 320

Company Overview and Strategy

Vitesse Semiconductor, founded in 1984, is a leader in the design, development, manufacturing, and marketing of digital gallium arsenide (GaAs) ICs suitable for commercial, industrial, and military customers. The company's custom, semicustom, and standard products are used in a wide variety of industries including telecommunications, data communications, computers, defense and aerospace systems, automatic test equipment (ATE), and instrumentation.

Computers Other 4% 1% Government 11%

ATE 24% Communications 60%

1996 Sales by End-Use Market

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-371 Vitesse Semiconductor North American Company Profiles

Vitesse's mission is to be the dominant supplier of the highest performance IC solutions for communications and ATE applications. As the communications market shifts from wire to optical channels, and computers undergo a shift from large proprietary central processors to open distributed processors, Vitesse is positioning itself to provide leading high-performance digital, analog, and mixed-signal IC solutions.

ROW Foundry 2% 6%

Europe Japan 10% Standard 12% Products ASIC Products 36% 58% North America 76%

1996 Sales by Product 1996 Sales by Geographic Region

Management

James A. Cole Chairman Louis R. Tomasetta President and Chief Executive Officer Ian Burrows Vice President, Fab Operations Robert Cutter Vice President and General Manager, Colorado Springs Ira Deyhimy Vice President, Product Development Chris F. Gardner Vice President and General Manager, ATE Products Eugene F. Hovanec Vice President, Finance and Chief Financial Officer James Mikkelson Vice President, Technology Development Michael Millhollan Vice President and General Manager, Standard Products Robert Nunn Vice President and General Manager, ASIC Products Neil Rappaport Vice President, Sales Ram Venkataraman Vice President, Quality

Products and Processes

Vitesse's products are fabricated using its proprietary H-GaAs™ (high integration gallium arsenide) process technology. The current generation is the five-level metal, 0.5µm H-GaAs IV process, capable of integration levels of over one million transistors. ASIC design and simulation is supported on industry standard tools from Mentor, Cadence, Viewlogic, Synopsys, and Teradyne.

Vitesse's standard products include telecommunications and data communications ICs. Its communications products address the high-speed data transmission marketplace. Most are designed to be compatible with the Sonet (synchronous optical network), ATM, and Fibre Channel standards. The operating frequency of these devices is from 155MHz to 10GHz and they are aimed at providing physical layer solutions for copper or fiber optics communication lines.

1-372 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Vitesse Semiconductor

Vitesse's gate array product line consists of five families: GLX, FX, Viper, SCFX, and Fury™. Aimed at the communication, ATE/instrumental, and computer markets, GLX arrays are suited to switching networks, serial links, high-speed data bus transfers, DSP functions, and critical timing blocks. GLX utilizes a sea-of-gates architecture and can be powered from either a single or dual power supply, depending on I/O requirements. These gate arrays can accommodate virtually any digital application requiring up to 175,000 gates. The FX series provides solutions in super minicomputers, high-end workstations, telecommunications systems, and high-performance ATE/instrumentation. The Viper family provides solutions in computer peripherals, medical instrumentation, and communications. The SCFX family is targeted at telecommunications and data communications applications, offering maximum operating frequencies beyond 3GHz. The Fury series addresses the conventional silicon ECL user.

In early 1997, Vitesse introduced its first family of GaAs standard cell arrays targeting telecommunications and high-speed switching applications. Dubbed the SLX line, the family consists of five devices with gate densities ranging from 10K to 220K gates while operating from a single 3.3V power supply. The SLX family is based on a 0.4µm four-layer metal HGaAs-IV process and utilizes a standard cell architecture.

Semiconductor Fabrication Facilities

In late 1996, Vitesse began construction of what it claims will be the first 150mm GaAs VLSI fabrication facility in the industry. The 100,000 square-foot facility will support manufacturing and test, as well as a design center for research and development. Initial production is expected to begin in late 1998.

Vitesse Semiconductor Vitesse Semiconductor 741 Calle Plano 4323 ArrowsWest Drive Camarillo, California 93012 Colorado Springs, Colorado 80907 Cleanroom size: 5,500 square feet (Class 10) Cleanroom size: 10,000 square feet (Class 1) 6,500 square feet (Class 100) Wafer size: 150mm Capacity (wafers/week): 1,700 Process: H-GaAs E/D MESFET Wafer size: 100mm Products: Gate arrays, telecom and datacom Process: H-GaAs E/D MESFET devices, microperipherals, foundry services Products: Gate arrays, telecom and datacom devices, microperipherals, foundry services Feature sizes: 0.4µm, 0.5µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-373 Vivid Semiconductor North American Company Profiles

VIVID SEMICONDUCTOR

Vivid Semiconductor, Inc. 7400 West Detroit Street Suite 100 Chandler, Arizona 85226 Telephone: (602) 961-3200 Fax: (602) 961-1135 Web Site: www.vividsemi.com

Fabless IC Supplier

Employees 35

Regional Headquarters/Representative Locations

Asia-Pacific: Vivid Semiconductor Korea Inc. • Seoul, Korea Telephone: (82) (2) 522-3175 • Fax: (82) (2) 552-3177

Company Overview and Strategy

Vivid Semiconductor was formed in 1993 to design and market mixed-signal and analog integrated circuits for applications requiring high voltage operation at a low cost. Currently, the company is focused on providing drive electronics to manufacturers of flat panel displays (FPDs).

Using patented extended voltage-range CMOS technology, Vivid has developed technology that allows designers to build enhanced performance flat panel displays with 24-bit color and full-motion video. The key to this technology is that it can be fabricated on standard CMOS processes. Vivid’s process technology can be applied not only to FPDs but also to a broad range of other markets, from automotive to telecommunications, where extended voltage-range CMOS can make a difference in product capability, power consumption, cost, and reliability.

Management

Alex Erhart President, and Chief Executive Officer Dan Clarke Vice President, Marketing and Sales Gerry Harder Vice President, Operations Tim Vatuone Vice President and Chief Financial Officer Ed Fullman Director, Marketing

1-374 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Vivid Semiconductor

Products and Processes

Vivid Semiconductor offers three families of direct drive flat panel display column drivers—CRT replacement products, low power notebook TFT display products, and MLS/AA STN display products. Vivid’s direct drive LCD column drivers are available for a wide range of panel resolutions from VGA to UXGA.

Vivid’s column drivers are based on its patented "Dual Range" design architecture, which allows high-voltage devices to be achieved on standard, low-voltage CMOS processes. For example 10V operation on a 0.8µm process and 7V operation on a 0.5µm process can be easily achieved, and higher voltages are possible.

Semiconductor Fabrication Facilities

Unlike leading edge microprocessors and memories, Vivid’s silicon requirements can be fabricated in plants that are three process generations old. Vivid’s wafer processing, packaging, and testing functions are contracted to well-established manufacturers.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-375 VLSI Technology North American Company Profiles

VLSI TECHNOLOGY

VLSI Technology, Inc. 1109 McKay Drive San Jose, California 95131 Telephone: (408) 434-3100 Fax: (408) 263-2511 Web Site: www.vlsi.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: VLSI Technology, Inc. • Tokyo, Japan Telephone: (81) (3) 5454-3800 • Fax: (81) (3) 5454-3801

Europe: VLSI Technology, Inc. • Palaiseau Cedex, France Telephone: (33) (1) 69-19-71-00 • Fax: Fax: (33) (1) 69-19-71-01

Asia-Pacific: VLSI Technology, Inc. • Taipei, Taiwan Telephone: (886) (2) 719-5466 • Fax: (886) (2) 718-3204

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

1992 1993 1994 1995 1996 Sales 429 516 587 720 717 Net Income (32) 16 32 46 (50) R&D Expenditures 50 65 79 90 105 Capital Expenditures 40 72 94 204 245

Employees 2,379 2,659 2,728 2,986 2,948

Company Overview and Strategy

VLSI Technology is a leader in the design, manufacture, and sale of complex high-performance ASICs and ASSPs. Founded in 1979, the company has been a pioneer in the cell-based ASIC business. VLSI targets high- growth markets in which it has built expertise and can use its library of proprietary cells and FSB™ functional system blocks to assist customers in designing products and bringing them to market rapidly. The company's subsidiary, Compass Design Automation, Inc., supplies software and design libraries to the broad commercial ASIC and electronic design automation (EDA) marketplaces. Design services include system definition, complete logic and circuit design, and test program generation.

1-376 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles VLSI Technology

VLSI’s integrated circuit business is organized in a “market-focused” structure. Its three main groups are Computing Products, Communications Products, and Consumer Digital Entertainment Products.

Other Japan/ Consumer 7% Asia-Pacific Digital Communications 18% Entertainment 34% United States 26% Europe 53% Computing 29% 33%

1996 Sales by Product Group 1996 Sales by Geographic Region

The Computing Product group offers devices for the computer market, including high-end computing applications such as graphics workstations and high-end storage systems. Sales from this product group declined from representing 46 percent of total revenues in 1995 to 15 percent in 1996 due to Intel’s strengthened dominance in the core logic business and a decrease in sales for Apple Computer architecture systems. The Computing Products group is shifting its focus away from standard core logic chipsets and toward custom products for high- end applications.

The Communications Products groups offers devices for wireless and network communications applications. Within the communications area, the company continues to develop technologies supporting GSM, PHS, and DECT standards. VLSI is also developing products targeting CDMA digital cellular applications. In 1Q96, VLSI created a European subsidiary called Creative Systems Solutions. Based in Munich, Germany, Creative Systems Solutions will focus on the wireless data communications marketplace.

The Consumer Digital Entertainment Products group supplies devices for secure communications and home entertainment applications such as interactive television, satellite and cable technology, and electronic video game systems. Data encryption is one key area of focus due to increased security concerns as products become more advanced.

Future product development will include a focus on the wireless, networking, set-top box, and advanced computing markets.

Management

Alfred J. Stein Chairman and Chief Executive Officer Richard M. Beyer President and Chief Operating Officer Thierry Laurent Senior Vice President and GM, Communications Product Group Paul McLellan Senior Vice President and President, Compass Design Automation, Inc. John C. Batty Vice President and Treasurer Balakrishnan S. Iyer Vice President, Finance and Chief Financial Officer Ted Malanczuk Vice President, Operations

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-377 VLSI Technology North American Company Profiles

Products and Processes

Using advanced design capabilities, a vast cell library of predefined cells, and advanced manufacturing processes, VLSI Technology offers highly customized, highly integrated standard cell, embedded array (FlexArray), and gate array ASICs and ASSPs for applications such as computers, wireless communications equipment, electronic games, and digital set-top boxes.

The VLSI Cell Library provides an extensive and growing variety of predesigned and characterized cells, macrocells, and large functional system blocks. The company’s specialized system blocks include: UART, parallel port, SCC, SCSI, PCMCIA, PCI, SSA, Fibre Channel, and graphics functions for computing applications; T1/E1, Sonet/SDH, and ATM functions for network communications applications; GSM/DCS, DECT, CT2, PHS, CDPD, and Ruby II functions for wireless communications applications; and digital demodulation, forward error correction (FEC), MPEG-2 video and MPEG audio, microcontroller, and transport for digital entertainment applications. VLSI’s cell library also includes general-purpose system blocks such as 32-bit ARM RISC processor cores, data encryption devices, and programmable DSP cores.

In a second attempt to penetrate the data security market, VLSI has developed the GhostRider security chip for PCI-based computers, modems, web-browsers, and set-top boxes. The device is designed to protect the electronic transfer of intellectual property by integrating an on-chip RISC processor with encryption/decryption engine-functional system blocks.

In April 1997, VLSI introduced a gigabit MAC controller device, the VNS67500. The device is available as a standard product, operating at 3.3V, or may be embedded in a submicron CMOS ASIC. The device is designed for high-speed networking applications.

VLSI manufactures its ASICs and ASSPs in CMOS technology with geometries ranging from 0.35µm to 0.6µm and with up to five layers of interconnect metal. In April 1997, VLSI introduced its 0.25µm (drawn) and 0.2µm (drawn) standard-cell ASIC families, dubbed the VSC9 and VSC10 lines. Each family will have six layers of metal, a density of up to 18 million raw (14 million usable) gates, and utilize the company’s trench architecture. Volume production of the VSC9 family, which will not include gate arrays, is expected to begin in late 1997, followed by the VSC10 family in 1Q98.

Through its subsidiary, Compass Design Automation, VLSI provides IC design software (design tools and libraries) to a broad range of system and semiconductor customers.

Semiconductor Fabrication Facilities

In previous years, VLSI Technology enhanced its manufacturing capacity through wafer manufacturing relationships, primarily with Chartered Semiconductor. However, by the end of 1996, VLSI shifted substantially all its wafer manufacturing to its own facilities.

1-378 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles VLSI Technology

During 1996, VLSI completed the majority of its expansion plans of its San Antonio fab, including the conversion to 0.6µm and smaller processes. In late 1996, VLSI announced plans to close its San Jose facility, citing its technology limitations as a contributing factor in the decision. The company expects to close the San Jose facility by the end of 1997.

Addressing future capacity needs beyond 1997, VLSI signed a memorandum of understanding with the Malaysian Government that covers a site in Malaysia. However, VLSI indicated that it has no plans to construct a new facility before 2000.

VLSI Technology, Inc. VLSI Technology, Inc. 1109 McKay Drive 9641 Westover Hills Boulevard San Jose, California 95131 San Antonio, Texas 78251 Telephone: (408) 434-3000 Telephone: (210) 522-7000 Fab 1 Fab 2 Cleanroom size: 47,000 square feet Cleanroom size: 50,000 square feet (Class 1) Capacity (wafers/week): 3,400 Capacity (wafers/week): 7,400 Wafer size: 150mm Wafer size: 150mm Process: CMOS Process: CMOS Products: ASICs, ASSPs Products: ASICs, ASSPs Feature sizes: 0.6µm, 0.8µm, 1.0µm Feature sizes: 0.35µm, 0.5µm, 0.6µm (Will be closed by the end of 1997.)

VLSI subcontracts all of its IC packaging and approximately half of its final test needs. Its in-house final test functions are performed at its factories in California and Tempe, Arizona.

Key Agreements

• In November 1996, VLSI signed a memorandum of understanding with the Government of Malaysia. The memo covers the construction of a 200mm wafer fabrication facility in Malaysia. To date, the company has not announced any decision or timeframe for the facility.

• VLSI entered into an agreement with Digital Semiconductor that covers the design and manufacture of system logic devices. The devices are for use in future Alpha-based systems.

• VLSI and Hitachi renewed and expanded their 1988 standard cell and process technology exchange agreement. The new pact added gate array technology, and the two companies will develop compatible gate array families. In July 1996, Hitachi licensed its SuperH-3 RISC MPU core to VLSI, who plans to offer it as a CPU core in ASICs and ASSPs for applications such as handheld computing devices, navigation systems, digital entertainment, and multimedia peripherals.

• The DSP Group licensed its Pine™ digital signal processing core technology and its TrueSpeech™ speech compression technology to VLSI Technology in 1994. The new technologies were added to VLSI's FSB library for design in wireless communications applications.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-379 VLSI Technology North American Company Profiles

• In late 1994, VLSI licensed Santa Clara, California-based Mediametrics Inc.'s MPEG-1 and MPEG-2 video decompression technology, supporting the company's drive into the set-top box and direct broadcast satellite markets.

• VLSI announced its intention to jointly develop and market fuzzy logic-based ASIC technology for chip design and development capabilities with Togai InfraLogic, Inc. of Irvine, California.

• In February 1994, VLSI and Advanced RISC Machines, Ltd. renewed their agreement to expand market opportunities for the ARM 32-bit architecture in embedded control and portable applications.

1-380 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles VTC

VTC

VTC Inc. 2800 East Old Shakopee Road Bloomington, Minnesota 55425-1350 Telephone: (612) 853-5100 Fax: (612) 853-3355 Web Site: www.vtc.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: VTC Japan • Tokyo, Japan Telephone: (81) (3) 3389-6016

Europe: VTC Deutschland • Germany Telephone: (49) (8071) 95304

Financial History ($M)

1992 1993 1994 1995 1996 Sales 50 75 108 166 178

Employees 300 375 480 540 600

Company Overview and Strategy

VTC was founded in 1984 to design and manufacture VHSIC products for government markets. Within the first year, VTC acquired Control Data Corporation's microcircuits division (a captive chip manufacturing operation for CDC's disk drive business that had operated since 1969). VTC was privately held, but Control Data was a major investor.

Control Data purchased all of VTC in 1987, making it a wholly-owned subsidiary. In 1988, the two original founders left CDC and the company was put up for sale. In October 1990, CDC sold the bipolar portion to a management buyout led by VTC's current CEO, Larry Jodsaas. Before the end of the year, CDC also sold the CMOS fab to Cypress.

Today, VTC's strategy is to offer quality, high-performance ICs to the data storage (disk and optical drive) industry. The company's revenues come from bipolar read/write preamplifiers and channel electronics found in disk drives worldwide.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-381 VTC North American Company Profiles

Management

Larry Jodsaas President and Chief Executive Officer Cliff Boler Vice President, Engineering John Doyle Vice President, Quality Dan Griffith Vice President, Sales and Marketing Greg Peterson Vice President and Chief Financial Officer Robert Rousseau Vice President, Human Resources Ed Schnable Vice President, Manufacturing

Products and Processes

VTC offers a broad line of read/write preamplifier standard products and channel ASICs for use in rigid disk drives. Processes used by the company are complementary bipolar (CBP), ECL, and BiCMOS (called PolarMOS).

Semiconductor Fabrication Facilities

VTC Inc. 2800 East Old Shakopee Road Bloomington, Minnesota 55425-1350 Cleanroom size: 32,000 square feet Capacity (wafers/week): 5,000 Wafer size: 150mm Processes: Bipolar, complementary bipolar, BiCMOS Products: Standard and ASIC read/write preamplifiers, servo preamplifiers, and channel electronics Feature sizes: 1.2µm, 2.0µm, 3.0µm

1-382 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles WSI

WSI

WSI, Inc. 47280 Kato Road Fremont, California 94538 Telephone: (510) 656-5400 Fax: (510) 657-5916 Web site: www.wsipsd.com

Fabless IC Supplier

Financial History ($M)

1992 1993 1994 1995 1996 Sales 28 27 28 38 44

Employees 137 125 125 125 100

Company Overview and Strategy

WSI, Inc. (formerly WaferScale Integration, Inc.) was founded in 1983 as a supplier of high-performance programmable ICs. It serves embedded system designers who need to achieve higher system performance, reduce system size and power consumption, shorten product development cycles to achieve faster market entry, and reduce manufacturing costs. It offers field-programmable microcontroller peripherals as well as high- performance non-volatile EPROM products.

Management

Michael Callahan Chairman, President, and Chief Executive Officer Boaz Eitan Senior Vice President, Chief Technical Officer Yoram Cedar Vice President, New Business Development Howard Gopen Vice President, Operations Robert Hoard Vice President, Worldwide Sales Reza Kazerdunian Vice President, Research and Development Carl Mills Vice President, Finance

Products and Processes

WSI supplies several families of programmable microcontroller peripherals as well as a broad line of high performance non-volatile PROM and EPROM devices. These products are based on the company's patented self-aligned split-gate CMOS EPROM technology. WSI's fast EPROMs are available in densities ranging from 16K to 1M. The programmable peripherals integrate EPROM, SRAM, PLD, and user-configurable logic.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-383 WSI North American Company Profiles

Semiconductor Fabrication Facilities

WSI does not have its own fabrication facility. It has foundry agreements with Sharp, National Semiconductor, AMI, SGS-Thomson, and Tower Semiconductor.

Key Agreements

• In January 1997, WSI signed a long-term technology exchange and foundry agreement with Tower Semiconductor. Under the agreement, the two companies will jointly develop manufacturing process technologies such as WSI’s AMG EPROM architecture using Tower’s 0.6µm technology. The agreement also guarantees WSI access to Tower’s wafer capacity.

• National took a 10 percent stake in WSI as part of a five-year foundry and technology exchange agreement.

• WSI formed an alliance with American Microsystems to jointly develop mask-programmable versions of WSI's line of microcontroller peripherals. AMI is manufacturing the parts and the companies are marketing them separately.

1-384 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Xicor

XICOR

Xicor, Inc. 1511 Buckeye Drive Milpitas, California 95035-7493 Telephone: (408) 432-8888 Fax: (408) 432-0640 Web Site: www.xicor.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Xicor Japan K.K • Shinjuku-ku, Tokyo, Japan Telephone: (81) (3) 3225-2004 • Fax: (81) (3) 3225-2319

Europe: Xicor Ltd. • Witney, Oxford, United Kingdom Telephone: (44) (1993) 700544 • Fax: (44) (1993) 700533

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

1992 1993 1994 1995 1996 Sales 9 3 104 104 114 124 Net Income (30) (6) 2 10 14 R&D Expenditures 22 13 14 15 15 Capital Expenditures 625925

Employees 840 800 691 641 680

Company Overview and Strategy

Xicor, Inc., founded in 1978, designs and manufactures a broad line of non-volatile in-the-system programmable semiconductor ICs. In-the-system programmability enables telecommunications, consumer, computer, industrial, automotive, and military products to adapt to changing software and operating environments, and to be personalized by the user. Many of Xicor’s products consume little power and operate well from a battery powered source, making them well suited for hand-held and portable applications.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-385 Xicor North American Company Profiles

ROW Consumer Telecom Japan 11% 25% 25% 14% Industrial, Military, PCs, Peripherals United States & Transportation & Networking Europe 52% 25% 25% 23%

1996 Sales by End-Use Market 1996 Sales by Geographic Region

Xicor emphasizes the development of proprietary products that incorporate its programmable technology, enabling customers to rapidly bring to market products with improved features, efficiency and maintainability. In 1995, Xicor introduced its first SerialFlash™ memory product family, which operates from low voltage power sources. Xicor is a leading supplier of EEPROM memory products and EEPOT™ digitally controlled potentiometers.

Management

Raphael Klein Chairman, President, and Chief Executive Officer Joseph Drori Vice President, Products Design, Engineering, Quality, and Reliability Bruce Gray Vice President, Wafer Operations Geraldine N. Hench Vice President and Corporate Controller Klaus G. Hendig Vice President, Finance and Administration Timothy D. Kanemoto Vice President, Product Operations Dennis E. Krueger Vice President, North America Sales Madga M. Madriz Vice President, Human Resources Bruce W. Mattern Vice President, Sales and Marketing William H. Owen III Vice President, Technology Development and Intellectual Properties

Products and Processes

Xicor offers serial EEPROMs in 128-bit to 128K densities, parallel EEPROMs in 16K to 1M densities, Serial Flash memories in 8K to 128K densities, Secure SerialFlash devices for data security applications, NOVRAMs (nonvolatile SRAMs), NOVRAMs with Autostore™ power-loss data protection, EEPOT™ digitally controlled potentiometers, EEPROMs that interface directly with microcontrollers or microprocessor bus-based systems, and memory subsystems.

Xicor is also a licensee of the Pine 16-bit fixed-point DSP core and related development tools from DSP Group. The firm is developing products that integrate the Pine DSP core with its EEPROM technology.

1-386 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Xicor

Semiconductor Fabrication Facilities

Xicor, Inc. 1511 Buckeye Drive Milpitas, California 95035-7493 Capacity (wafers/week): 1,250 Wafer size: 150mm Processes: CMOS, NMOS Products: EEPROM-based ICs and chipsets Feature sizes: 0.6µm-1.0µm

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-387 Xilinx North American Company Profiles

XILINX

Xilinx, Inc. 2100 Logic Drive San Jose, California 95124-3400 Telephone: (408) 559-7778 Fax: (408) 559-7114 Web Site: www.xilinx.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Japan: Xilinx K.K. • Tokyo, Japan Telephone: (81) (3) 3297-9191

Europe: Xilinx Ltd. • Surrey, United Kingdom Telephone: (44) (1932) 349401

Asia-Pacific: Xilinx Asia-Pacific Ltd. • Kwai Fong, Hong Kong Telephone: (852) 2424-5200

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

1993 1994 1995 1996 1997 Sales 178 256 355 561 568 Net Income 27 41 59 102 110 R&D Expenditures 24 34 45 65 71 Foundry Fab Investment — — — 34 35

Employees 544 689 868 1,201 1,500

Company Overview and Strategy

Founded in 1984, Xilinx is the leading supplier of CMOS programmable logic devices (PLDs) and related development system software. The company’s PLD product lines include field programmable gate arrays (FPGAs) and complex PLDs (CPLDs). Xilinx is credited with the invention of the FPGA and brought the first such device to market in 1985. The company also markets HardWire™ devices, which are mask-programmed ICs functionally equivalent to programmed FPGAs.

Xilinx has remained the world’s largest supplier of FPGAs from the beginning and became the largest supplier of PLDs in general in 1994. The company ships its PLDs and related development system software to electronic equipment manufacturers in the data processing, telecommunications, networking, industrial control and instrumentation, and military markets.

1-388 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Xilinx

CPLDs System Software Hardwire 2% 3% 5% EPROMs 5% Asia-Pacific 12% Europe 23% North America FPGAs 65% 85%

1996 Sales by Product Category 1996 Sales by Geographic Region

Xilinx expanded its presence in the PLD market through the 1992 acquisition of Plus Logic, Inc., a company involved in electrically programmable logic devices (EPLDs). In April 1995, Xilinx acquired NeoCAD, Inc., a private FPGA design software producer. NeoCAD’s software technology was integrated into Xilinx’s development system software.

Xilinx continues to focus its product strategy on setting new standards for lower complexity CPLDs while maintaining a leadership position in the FPGA market, addressing high volume applications with its HardWire products, and providing support for all product families with user-friendly software.

In mid-1996, the company announced its decision to withdraw from the antifuse FPGA market and discontinue its XC8100 family of one-time-programmable antifuse devices. The company claimed the decision was based on the strong market acceptance of its SRAM- and flash-based devices. Research and development efforts previously focused on antifuse devices will be redirected toward its core FPGAs and CPLDs.

Later in 1996, Xilinx announced the formation of the Digital Signal Processing (DSP) Business Unit. The primary focus of the DSP Business Unit is to integrate DSPs into the company’s FPGAs. Xilinx plans to develop the tool kits, cores, and software integration for the FPGA-based DSPs, which Xilinx claims will operate 10 times faster than normal FPGAs.

Management

Bernard V. Vonderschmitt Chairman Willem P. Roelandts President and Chief Executive Officer R. Scott Brown Senior Vice President, Worldwide Sales Gordon M. Steel Senior Vice President, Finance, and Chief Financial Officer William S. Carter Vice President and Chief Technical Officer Lee D. Farrell Vice President, Program Management Charles A. Fox Vice President and GM, Hardwire Business Unit Steve Hayes Vice President, North American Sales Robert C. Hinckley Vice President, Strategic Plans and Programs, and Secretary Nicholas Kucharewski Vice President, CPLD Division C. Frank Myers Vice President, Operations

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-389 Xilinx North American Company Profiles

Dennis L. Segers Vice President, FPGA Product Development Richard W. Sevcik Vice President, Software Sandra L. Sully Vice President and Chief Information Officer Christine C. Taylor Vice President, Human Resources Roland Triffaux Vice President, European Sales and Marketing Sandeep Vij Vice President, Marketing Evert A. Wolsheimer Vice President and GM CPLD Business Unit Roman Iwanczuk Director, DSP Business Unit Scott Lewis Director, CPLD Marketing

Products and Processes

Xilinx’s product line consists of FPGAs, HardWire Array products, EPROMs for external storage of FPGA configuration programs, and CPLDs. All of its products are manufactured using CMOS technology, with the most advanced chips utilizing a 0.35µm, three-layer-metal process. A 0.25µm, five-layer-metal process is expected to be implemented in 2H97.

FPGA Products XC2000 family—Being discontinued. XC3000 family—General-purpose architecture with usable gate densities ranging from 1,500 to 7,500 gates. The older XC3000-70 and XC3000A products are being discontinued. XC4000 family—The company’s most successful FPGA architecture. The family consists of 13 SRAM-based members ranging in density from 3,000 to 85,000 logic gates. The older XC4000A and XC4000H sub-families are being discontinued. At the high end, Xilinx offers the XC4000EX and XC4000XL sub-families. Introduced in early 1997, the XC4000XL series features high- performance 3.3V operation through the use of a 0.35µm CMOS process. Devices with up to 125,000 usable gates are expected to sample in mid-1997 (the XC4000XZ series). XC5200 family—With a process-optimized architecture, the XC5200 parts are the first FPGAs specifically developed as a cost effective, high volume production alternative to gate arrays. XC6200 family—Sea-of-gates FPGAs designed for reconfigurable coprocessing applications within the embedded controller market. Introduced in August 1996, the XC6200 family consists of devices ranging in density from 9,000 to 100,000 gates. XC8100 family—Discontinued line of one-time programmable antifuse-based FPGAs.

HardWire Array Products The company’s hardwire process converts a Xilinx FPGA into a HardWire mask-programmed array offering quick time-to-market and a reduction in cost. For every Xilinx FPGA family, there is a corresponding hardwire family. In 1997, Xilinx expanded its HardWire product offerings with the addition of a PCI+ conversion device featuring full PCI compliance and up to 10,000 gates of customer specific logic.

1-390 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Xilinx

CPLD Products XC7000 family—High performance CPLDs with 400 to 3,800 usable gates and aimed at PAL replacement and logic integration applications. XC9500 family—Volume production of these flash memory-based CPLDs began in January 1997. The XC9500 devices features in-system programmability with more than 10,000 program/erase cycles, 36 to 576 macrocells with 800 to 12,800 usable gates, and pin-to-pin delays as low as 5ns. Xilinx expects to migrate the family from a 5V 0.6µm process to a 3.3V 0.5µm process in 1997.

The company’s newest generation of XACTstep™ CAE software is based on the NeoCAD core technologies and provides all the implementation technology required to design with Xilinx logic devices, including module generation, design optimization and mapping, placement and routing, timing analysis, and program file generation.

In mid-1996, Xilinx introduced its LogiCore™ solutions, which are high-level functions that a designer can integrate into FPGA designs. The first LogiCore product was a PCI interface for FPGAs, the PCI LogiCore™. In early 1997, the company announced a plan to broaden its core library through a partnership network program called AllianceCore. Xilinx and its third-party core partners (about 14 at the time of this writing) will work together to develop products based on the cores in order to ensure that the designs work in silicon and are properly tested. The first products will be for USB peripherals and PCMCIA cards (available in 2H97).

Semiconductor Fabrication Facilities

Xilinx does not fabricate its own ICs, but has foundry agreements with Seiko Epson, Yamaha, IC Works, and UMC.

In early 1994, Xilinx provided its foundry partner Seiko Epson with $42 million to help fund a wafer fab Seiko Epson built in Sakata, Japan. In December 1996, Xilinx announced its plans to invest up to $300 million in a new semiconductor manufacturing facility that is currently being constructed by Seiko Epson. The agreement calls for Xilinx to make incremental advanced payments in return for a specified number of wafers through 2002. Production at the facility, which is located in Sakata, Japan, is expected to begin in early 1998.

Key Agreements

• Xilinx has a second-source agreement with Harris Semiconductor for rad-hard FPGAs.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-391 Zilog North American Company Profiles

ZILOG

Zilog, Inc. 210 East Hacienda Avenue Campbell, California 95008-6600 Telephone: (408) 370-8000 Fax: (408) 370-8056 Web Site: www.zilog.com

IC Manufacturer

Regional Headquarters/Representative Locations

Japan: Zilog, Inc. • Tokyo, Japan Telephone: (81) (3) 5272-0230

Europe: Zilog, Inc. • Maidenhead, United Kingdom Telephone: (44) (1628) 392-00

Asia-Pacific: Zilog, Inc. • Taipei, Taiwan Telephone: (886) (2) 741-3125

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

1992 1993 1994 1995 1996 Sales 146 203 223 265 298 Net Income 16 27 35 43 30 R&D Expenditures 16 21 23 25 31 Capital Expenditures 27 40 69 791 117

Employees 1,400 1,500 1,500 1,575 1,650

Company Overview and Strategy

Zilog was founded in 1974 and became a wholly owned subsidiary of Exxon by 1980. In 1985, the company rechartered its course to focus on application-specific market segments. In 1989, Zilog's management, employees, and a venture capitalist purchased the company from Exxon. Zilog became a public company in February 1991.

Today, Zilog is a leader in the development, design, and manufacture of application specific standard products (ASSPs) for the consumer electronics, data communications, and computer peripheral markets. The company utilizes its Superintegration™ design methodology to combine cores and cells from its extensive library of microprocessors and controllers, DSPs, and memory and logic circuits.

1-392 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Zilog

ROW 5%

Europe 9% United States Far East 44% 42%

1996 Sales by Geographic Region

Zilog maintains its strategy of addressing the needs of specific applications by utilizing its proprietary core and cell designs, which are optimized for particular applications, to design and develop new products within its target markets. During 1996, Zilog introduced 48 new products, 37 for the consumer product controller market, eight for the computer peripheral controller market, and three for the datacommunications market.

Management

Edgar A. Sack Chairman, President, and Chief Executive Officer Michael J. Bradshaw Senior Vice President, Worldwide Operations Thomas C. Carson Senior Vice President, Worldwide Sales, and Strategic Marketing Manager, Wireless and Memory Business Unit Sally M. Baumwell Vice President, Human Resources Robert E. Collins Vice President and Chief Financial Officer James J. Magill Vice President and General Manager, Data Communications Richard L. Moore Vice President, Technology Richard R. Pickard Vice President, General Counsel Alan Secor Vice President, Consumer/Peripherals Tom Willey Vice President, Wireless Division

Products and Processes

Zilog's core library includes 8-bit microcontrollers, 8-bit, 16-bit, and 32-bit microprocessors, 16-bit digital signal processors, serial communications controllers, and peripheral circuits. These cores are available as stand-alone devices or may be combined in Superintegration products. The company’s cell library consists of logic and memory circuits that are generally combined in Superintegration products.

The Superintegration library and diverse product portfolio of over 800 items serve three distinct markets: data communications, consumer products, and intelligent peripherals.

• For data communications applications, Zilog offers ASSPs based on its Z80 microprocessor family and serial communications controllers. These ASSPs are optimized for Ethernet routers, bridges, data switches, modems, terminals, printers, workstations, local area networks, and wide area networks. The company holds a leadership position in general purpose, multiprotocol controllers for the LAN and WAN markets.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-393 Zilog North American Company Profiles

• Based on the Z8® 8-bit microcontroller, Zilog offers a family of controllers for use in consumer electronics products such as cellular phones, audiovisual equipment, automobiles, telephone answering machines, household appliances, battery chargers, garage door openers, security systems, set-top boxes, interactive TVs, and infrared remote controls.

• Zilog is an innovator in the addition of intelligence to computer peripheral chips using its line of Z80® 8-bit, Z180® 16-bit, and Z380® 32-bit microprocessors, and peripheral circuits. Adding intelligence to computer peripherals frees the central processor from micro-management tasks and upgrades the performance of the system. Common peripherals are printers, keyboards, monitors, pointing devices, hard disk and floppy disk controllers, modems, and PCMCIA bus interface products.

Semiconductor Fabrication Facilities

Zilog, Inc. Zilog, Inc. 2601 11th Avenue, North Extension 1401 North King Road Nampa, Idaho 83651 Nampa, Idaho 83651 Telephone: (208) 466-4551 Module III Fax: (208) 467-9765 Cleanroom size: 30,000 square-feet (Class 1) Modules I and II Capacity (wafers/week): 2,500 Cleanroom size: 77,000 square feet (Class 10) Wafer size: 200mm Capacity (wafers/week): 7,000 Process: CMOS Wafer sizes: 100mm, 125mm Products: ASSPs, MCUs, MPUs, DSPs Processes: NMOS, CMOS, BiCMOS Feature sizes: 0.35µm 0.6µm, 0.8µm Products: ASSPs, MCUs, MPUs, DSPs Feature sizes: 0.6µm, 0.8µm, 1.0µm, 1.2µm

Assembly and test operations are performed in company-owned facilities in Manila and Carmona, the Philippines. Contracts with outside IC fabricators Kawasaki Steel in Japan and Thesys Microelectronics in Germany, and with assembly houses in Malaysia, Indonesia, and China are back-up sources to the company's own operations.

Key Agreements

• Zilog teamed up with Analog Devices, Inc. (ADI) in early 1997, to jointly develop a new reference design for cordless telephones. Zilog agreed to supply DSP-based software and ADI agreed to supply RF technology to design a chipset for 900MHz spread spectrum cordless telephones. Production of the chipset/reference design is expected to take place in the second half of 1997.

• Zilog signed an agreement with United Kingdom-based MSU Corporation to jointly develop and manufacture chipsets targeting the low-cost TV Internet set-top applications. As part of the agreement, MSU transferred its internet service processor core to Zilog.

• Zilog licensed graphicTV (GTV) technology from TV graphics startup, Telecruz Technology, in a plan to develop ICs for television with high definition graphics. Zilog will integrate the GTV architecture into its Z90700 family of TV controllers.

1-394 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Zilog

• Zilog purchased a license in 1995 for the design and manufacture of ASSPs using Aspec Technology's high- density array and embedded array technologies.

• Zilog joined with Allegro MicroSystems and IMP in a marketing alliance. The team is marketing what they call a ZIA disk drive chipset—ZIA standing for Zilog, IMP, and Allegro.

• Oak Technology and Zilog extended a joint-development and cross-license agreement to develop integrated circuits for mass storage applications.

• Zilog has an agreement (formed in 1993) with Kawasaki Steel under which Zilog is licensed to manufacture, use, and sell the Kawasaki KC80™, an enhanced high-performance version of the Z80™ 8-bit microprocessor. Additionally, the companies are developing new Superintegration products that use the KC80 core.

• Zilog and Catalyst entered into a cross-licensing agreement in 1993 under which Zilog gained access to Catalyst's flash technology and Catalyst gained the right to develop products using Zilog's Z8 one-time- programmable (OTP) microcontroller family. The two companies then expanded their alliance to jointly develop flash memories.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 1-395 Zoran North American Company Profiles

ZORAN

Zoran Corporation 2041 Mission College Boulevard, Suite 255 Santa Clara, California 95054 Telephone: (408) 986-1314 Fax: (408) 986-1240 Web Site: www.zoran.com

Fabless IC Supplier

Regional Headquarters/Representative Locations

Asia: Zoran Microelectronics Ltd. • Haifa, Israel Telephone: (972) (4) 854-5777 • Fax: (972) (4) 855-1550

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

1992 1993 1994 1995 1996 Sales 7 5 8 23 44 Net Income (3) (8) (5) 1 2 R&D Expenditures 55469

Employees 75 135

Company Overview and Strategy

Zoran Corporation, first incorporated in 1981, and reincorporated in 1986, develops and markets integrated circuits and software for digital video and audio compression and decompression applications. The company’s ICs are used in a wide variety of products, such as professional and consumer video editing systems, PC-based and stand-alone video CD systems, DVD players, digital audio systems, filmless digital cameras, and printers/scanners.

Prior to 1991, Zoran derived the substantial majority of its revenues from digital filter processors (DFPs) and vector signal processors (VSPs), which are DSP-based ICs used for image enhancement and processing, principally in military, industrial, and medical applications. In 1989, the company repositioned its business to utilize its expertise in DSP technology to develop and market video and audio compression circuits. In mid-1994, Zoran discontinued DFP and VSP product lines.

Zoran has a strong core expertise in DSP technology, including digital filtering and frequency domain processing. Its strategy centers on building partnerships with innovative marketing and manufacturing companies and targeting high-volume, high-performance applications, such as multimedia computing and consumer video and audio systems.

1-396 INTEGRATED CIRCUIT ENGINEERING CORPORATION North American Company Profiles Zoran

In October 1996, Zoran entered the software compression market through its acquisition of CompCore Multimedia, Inc., a leading provider of digital audio and video MPEG-1 and MPEG-2 decoding technologies and products. The acquisition has broadened Zoran’s product offering to include MPEG cores and software compression products particularly for the PC-based DVD market.

Other 4% MPEG-1 9%

United States Software JPEG 26% 14% Pacific Rim 39% 43% Audio Europe 34% 31%

1996 Sales by Product Category 1996 Sales by Geographic Region

Management

Uzia Galill Chairman Levy Gerzberg, Ph.D. President and Chief Executive Officer George Haber Executive Vice President Ami Kraft Vice President, Finance, and Chief Financial Officer Paul Goldberg Vice President, Business Solutions Isaac Shenberg Vice President, Sales and Marketing Meir Tsadik Vice President, Research and Development, and Chief Operating Officer Sorin Cismas Chief Scientist Alexander Sinar Director, Manufacturing

Products and Processes

Zoran’s IC products include JPEG codecs, MPEG video decoders, Dolby AC-3 and MPEG audio decoders, and PCI multimedia controllers. The company is the leading supplier of JPEG ICs and support devices for the consumer and PC markets.

Additionally, Zoran is the leading supplier of Dolby Digital (AC-3) devices. Its third-generation Dolby AC-3/MPEG-2 digital audio processors was introduced in late 1996. The ZR38600 processor uses only 75 percent of the processors power for audio decoding, leaving the remaining 25 percent available for product differentiation. The device is targeted at home theater, DVD, and consumer multimedia applications.

Most of Zoran’s devices are fabricated using 0.6µm and 0.8µm CMOS technologies.

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Semiconductor Fabrication Facilities

For the fabrication of its wafers, Zoran has foundry agreements with Fujifilm Microdevices, Motorola, TSMC, and Tower Semiconductor.

Key Agreements

• In late 1996, Zoran announced an agreement with Toshiba which stated that Toshiba would use Zoran’s Dolby digital two-channel AC-3/MPEG audio processor in a DVD chipset.

• In 1995, Zoran signed a four-year agreement with Tower Semiconductor under which Tower will supply specified quantities of wafers to Zoran.

• Siemens and Zoran announced in 1995 they would collaborate on the development and marketing of multimedia ICs for PC and consumer electronics applications.

• Dolby Laboratories formed a long-term joint technology partnership with Zoran in August 1992. The partnership involves the development of low-cost ICs for multi-channel digital audio for motion-picture soundtracks and consumer media.

• Zoran has the marketing rights to JPEG chips produced by the company’s Japanese partner, Fujifilm.

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