DataQuest M

DataQuest

M a company of

The Dun & Bradstreet Corporation

7th April

Dear Client,

NEW FORMAT—MARKET SHARE DATA

Dataquest's Eviropean Components Group completed preliminary 1988 European semiconductor market share estimates, which are enclosed herein.

In the past, clients of the European Semiconductor Industry Service (ESIS) have received this data as a loose-leaf service section to be filed in their binder set. For your convenience we are now publishing this data in the form of a booklet. This booklet can still be filed as before, but offers much greater ease of use "on the move".

We have also presented the market share estimates in a ranked format, rather than in alphabetical format, for your ease in comparing of vendors' market positions in different products and technologies. The previous year's rank is also shown for reference. Extra analysis is given, such as percentage market share for each vendor, for further ease in interpreting the estimates.

We hope this helps make our estimates more usefuL to you. We would be interested in your comments regarding this new format.

Yours sincerely

%Y^^ •

Bypon Harding

Research Analyst

European Components Group.

1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292

European

Semiconductor Industry Service

Volume III—Companies

E)ataQuest

n n acompanyof

I I S I TheDun&Biadstreetcorporation

12^ Ridder Park Drive

San Jose, California 95131-2398

(408) 437-8000

Telex: 171973

I ^ : (408) 437-0292

Sales/Service Offices:

UNITED KINGDOM

Dataquest Europe Limited

Roussel House,

Broadwater Park

Denham, Uxbridge, Middx UB9 5HP

England

0895-835050

Telex: 266195

Fax: 0895 835260-1-2

GERMANY

Dataquest Europe GmbH

Rosenkavalierplatz 17

D-8000 Munich 81

West Germany

(089)91 10 64

Telex: 5218070

Fax: (089)91 21 89

FRANCE

Dataquest Europe SA

Tour Gallieni 2

36, avenue Gallieni

93175 Bagnolet Cedex

France

(1)48 97 31 00

Telex: 233 263

Fax: (1)48 97 34 00

EASTERN U.S.

Dataquest Boston

1740 Massachusetts Ave.

Boxborough, MA 01719-2209

(508) 264-4373

Telex: 171973

Fax: (508) 635-0183

JAPAN

Dataquest Japan, Ltd.

Taiyo Ginza Building/2nd Floor

7-14-16 Ginza, Chuo-ku

Tokyo 104 Japan

(03)546-3191

Telex: 32768

Fax: (03)546-3198

KOREA

Dataquest Korea

Daeheung Bldg. 505

648-23 Yeoksam-dong

Kangnam-gu, Seoul 135 Korea

011-82-2-552-2332

Fax: 011-82-2-552-2661

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

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

Printed in the United States of America. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems, or transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or otherwise—without the prior written permission of the publisher.

© 1990 Dataquest Incorporated

Introduction to the Service

EUROPEAN SEMICONDUCTOR INDUSTRY SERVICE

Dataquest's European Semiconductor Industry Service (ESIS) is a comprehensive information service covering the European semiconductor industry. It is a product-oriented, executive-level perspective intended to assist with strategic decisions of key executives and product managers of semiconductor manufacturing companies, suppliers to the semiconductor industry, semiconductor users, and other businesses or institutions interested in the semiconductor industry. The service consists of the following:

• Data-base reference notebooks containing sections that are continually revised and updated as developments occur or additional information becomes available

Research newsletters and bulletins on current industry issues and events

An inquiry service providing access to Dataquest's European Components

Group Client Inquiry Center and access to the European Components

Group Research Staff

The IC Europe monthly report, providing timely information on European high-technology industries and 1992

An annual conference in Europe, with industry experts discussing developments of current interest and importance

Access to Dataquest's semiconductor on-line information service and The

PQ Monday Report, providing pricing and lead-time updates

Access to Dataquest's European semiconductor library resources

SERVICE STRUCTURE

The service analyzes and reports on the products, markets, and major companies in the semiconductor industry in Europe as a whole and in individual countries. The service does the following:

• Provides semiconductor consumption forecasts in the following ways:

By product technology

By product function

By application market—includes data processing, communications, industrial, military, consumer, and transportation

ESIS Volume III © 1989 Dataquest Incorporated February

0003069

Introduction to the Service

• Analyzes European semiconductor markets for the following regions:

Benelux—includes Belgium, Luxembourg, and the Netherlands

France

Italy

Scandinavia—includes Denmark, Finland, Norway, and Sweden

United Kingdom and Ireland

West Germany

Rest of Europe—includes Austria, Portugal, Spain, and Switzerland

• Identifies services and suppliers to the European semiconductor industry

• Analyzes the forces affecting the European semiconductor market, such as:

Supply and demand

Technological developments

- Economic issues

Government policies

Distribution

SERVICE ORGANIZATION

Volume I

Volume I contains separate sections for each of the European geographical regions covered by the service, and each regional section covers the following topics:

• Overview—discussion of the economic environment

• Semiconductor Device Markets—analysis of the local markets by technology and function

% © 1989 Dataquest Incorporated February ESIS Volume IE

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Introduction to the Service

• Application Markets—analysis of local application markets for semiconductors in data processing, communications, industrial, consumer, military, and transportation sectors

• Plant Locations—manufacturing locations by company within the region

• Design Center Locations—semiconductor design center locations by company for the region

Volume n

Volume n, which discusses Europe as a whole, is divided into the following topics:

European Overview—covers analysis of trends in capital and research and development expenditures, venture capital, and government and private investment; discusses the European economic environment and channels of distribution

Semiconductor Device Markets—analyzes the European market for integrated circuits, discrete devices, and optoelectronics, by technology and function

Semiconductor Application Markets—analyzes the European application markets for semiconductors in data processing, communications, industrial, consumer, military, and transportation sectors

Major Users—analyzes the major semiconductor users in Europe

Services and Suppliers to the Semiconductor Industry—identifies the key services and suppliers to the European semiconductor industry: assembly services, capital equipment suppliers, design services, materials suppliers, testing services, and wafer fabrication services

Memory—analyzes the European memory semiconductor markets

Microcomponents—analyzes the European microcontroller, microprocessor, and microperipheral markets

Volume m

Volume ni, which contains the company-related data, is divided into the following topics:

• European Plant Locations—lists the plant locations for all major semiconductor manufacturers

ESIS Volume III © 1989 Dataquest Incorporated February

0003069

Introduction to the Service

• European Design Center Locations—lists the design center locations for worldwide semiconductor companies in Europe

• European Semiconductor Production—analyzes wafer fabrication in Europe

• Company Profiles—profiles selected companies active in Europe

Also included in Volume III are Dataquest's Market Share Estimates, which consist of the following:

• Worldwide market shares of European companies

• European market shares of:

European companies

U.S. companies

Japanese companies

Rest of World companies

Other Components

The ASIC binder contains quantitative and qualitative analyses of the European gate array, cell-based IC, programmable logic, and full-custom businesses.

IC Europe is a monthly report on European high-technology industry. It covers a monthly update to the status of the industry, industry highlights, research update, semiconductor pricing and analysis, a thought for the month, and a monthly update on events leading up to 1992.

The Newsletters 1988-89 binder contains industry newsletters and bulletins devoted to current topics of specific European interest.

In addition, Volumes I, II, and III contain yearly exchange rate tables. The quarterly exchange rate newsletter may be found in the newsletter volume.

SERVICE FEATURES AND PROCEDURES

Service Sections

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

© 1989 Dataquest Incorporated February ESIS Volume ID

0003069

Introduction to the Service

Newsletters

Newsletters are published regularly throughout the year and should be filed in the latest newsletter volume. The newsletters provide executive summaries of key industry events and serve to underscore significant changes in the reference material presented in the data-base notebooks. In addition, newsletters of an analytical nature are published periodically on a variety of topics not regularly covered in the service.

Inquiry Privilege

There are two forms of inquiry available to the client: access to Dataquest's

European Semiconductor Inquiry Center and access to the ESIS semiconductor staff. The registered binderholder has the privilege of direct access to the Inquiry Center, where the staff provides assistance in finding and interpreting material in the data notebooks or other Dataquest-published material. In addition, binderholders have access to the

European Semiconductor Industry Service research staff; this privilege allows the client to seek additional commentary on or clarification of the published material, although it is not intended to provide individualized custom research. Using this feature of the service, clients may interact with industry experts on a one-to-one basis to discuss attitudes and opinions about topics covered in the service.

Annual Conference

Each year Dataquest's European Semiconductor Industry Service hosts a two-day conference. In this forum, leading experts and decision makers throughout the industry share their views on the future and on critical external issues affecting the growth of the

European semiconductor business. The conference allows executive-to-executive communication about important topics through formal presentations, workshops, and informal discussion periods.

Dataquest's Library Services

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

Semiconductor On-Line Information

All our clients receive ESIS On-line and the DO Mondav Report as part of the service. The ESIS On-line service holds the ESIS data base, enabling clients receive immediate updates to the data base. The DO Mondav Report gives updates of prices and lead times for 25 selected semiconductor devices. Prices are reported for the United

States, Europe, Japan, Taiwan, Hong Kong, and Korea for IK, lOK, and contract quantities.

ESIS Volume III © 1989 Dataquest Incorporated February

0003069

Introduction to the Service

PRODUCT TECHNOLOGY DEFINITIONS

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

Integrated Circuits (ICs)

ICs include bipolar devices, MOS devices, and analog devices, broken down as follows:

• Bipolar—bipolar memory, bipolar logic

Bipolar Memory—ECL RAM, ROM, PROM, flip-flops, latches, register files, shift registers

Bipolar Logic—bipolar ASIC, bipolar standard logic, bipolar other logic

Bipolar ASIC—includes gate arrays, PLDs (programmable logic devices), CBICs (cell-based ICs) and full-custom

Bipolar standard logic—includes TTL, ECL, and other family logic, as well as TTL-compatible SSI, MSI, LSI; CML, ECL. I2L, ISL, STL with TTL levels; standard, AS, FAST, LS, ALS lines;

ECL-compatible SSI, MSI, LSI; RTL and DTL

Bipolar other logic—includes ASSPs (application-specific standard products), bipolar bit-slice (e.g., 2900, 29300 families), ALU, control unit, multiplier, floating point, digital filters; also includes bipolar support chips and chip sets for MPUs

• MOS—MOS memory, MOS microcomponents, MOS logic

MOS Memory—DRAM, SRAM, ROM/other

DRAM—Dynamic RAM

SRAM—Static RAM

ROM/other—includes ROM, PROM, EPROM, EEPROM, flip-flops, latches, register files, shift registers

MOS Microcomponents—MOS microprocessor, MOS microcontroller,

MOS microperipheral, DSP

© 1989 Dataquest Incorporated February ESIS Volume HI

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Introduction to the Service

Microprocessor (MPU)—includes all microprocessors such as Intel

X86 family, Motorola 68XXX family, RISC

Microcontroller (MCU)—includes single-chip controllers such as

Intel 8051 and Motorola 68HC05

Microperipheral (MPR)—includes MPU support chips used in system support (e.g., timer, intemipt control, DMA, MMU), peripheral controllers (e.g., disk, graphics display, CRT, keyboard), communications controllers (e.g., UART); also includes MOS chip sets for MPU support, LAN coprocessors, accelerator coprocessors

(e.g., floating-point unit, graphics coprocessor, image processor)

Digital signal processor (DSP)—includes single-chip DSPs, MOS bit-slice, ALC, mulipliers, accumulators, and digital filters

MOS Logic—MOS ASIC, MOS standard logic, MOS other logic

MOS ASIC—includes gate arrays, PLDs (programmable logic devices), CBICs (cell-based ICs), and full-custom

MOS standard logic—includes MOS family logic such as HC, HCT, and FACT lines

MOS other logic—includes application-specific standard products

(ASSPs) (e.g., motor control ICs); also MOS ALC, MAC, digital filters, and other building blocks

Analog (linear)—monolithic, general-purpose, specialty-purpose, analog ASIC, hybrid

Monolithic—includes bipolar and MOS monolithic linear ICs with more than 50 percent analog circuits by area on the die

General-purpose—includes input/ouput and power applications

Specialty-purpose—includes telecommimications and consumer applications

Analog ASIC—includes linear arrays, linear CBIC, and linear full-custom

Hybrid—includes hybrid packages sold by semiconductor vendors, used mostly in linear applications

ESIS Volume III © 1989 Dataquest Incorporated February

0003069

Introduction to the Service

Discrete Devices

Discrete devices include transistor, diode, thyristor, and other discrete devices, as follows:

• Transistor—includes small signal and power transistors, and field effect transistors (FET)

• Diode—includes small signal and power diodes, Zener diodes, and rectifiers

• Thyristors—includes all unidirectional and bidirectional thyristors

• Other discrete—includes tunnel and varactor diodes, microwave diodes, and other polycrystalline devices optoelectronic Devices

Optoelectronic devices include light-emitting diodes (LEDs), infrared lamps, LED displays, laser devices, optoelectronic couplers, and sensors (photo diodes, selenium rectifiers, solar cells). They exclude LCD displays and incandescent and fluorescent lamps and displays.

APPLICATION MARKET DEFINTTIONS

Dataquest segments and defines the semiconductor application markets as follows:

• Data Processing—This includes all equipment whose main function is flexible information processing. Included in this segment are all personal computers, regardless of price, distribution, or use in the office, education, or home environment.

• Communications—Within the communications market, Dataquest classifies telecommunications as a subsegment that consists of customer premises and public telecommunications equipment. The other communications categories include radio, studio, and broadcast equipment.

• Industrial—The industrial segment includes all manufacturing-related equipment, including scientific, medical, and dedicated systems.

• Consumer—This is equipment that is designed primarily for home or personal use, the primary function of which is not flexible information processing.

Audio and video equipment and appliances are typical examples of equipment that is classified in the consumer application market.

© 1989 Dataquest Incorporated February ESIS Volume in

0003069

Introduction to the Service

• Military—Military electronic equipment is primarily defense-oriented electronic equipment and is classified by major budget area. It does not include all electronic equipment procured by the government because such a breakout would double-count equipment that logically belongs in other market segments.

• Transportation—This segment consists mainly of automotive and light truck electronics. This designation leaves room to analyze other markets, such as off-highway equipment, that are potentially large users of semiconductors.

Further definitions of these segments are included in the European Semiconductor

Applications Market (ESAM) binder.

ABOUT DATAQUEST

Dataquest's research covers an entire generation of high-technology industries, with a primary focus on the following six broad areas:

Semiconductors

Information systems

Peripherals

Office equipment

Industrial automation

Telecommunications

Within these primary areas, Dataquest tracks and serves more than 25 separate industries.

Dataquest provides a comprehensive line of products and services designed to meet the varying research and analysis needs of corporate decision makers. The products include the following:

• Industry services similar in nature to the European Semiconductor Industry

Service

• Executive and Financial Programs—A series of business opportunity and technology advisory programs specifically designed for senior executives involved in high technology

• Focus Reports—Highly detailed landmark publications on specific issues of topical interest

ESIS Volume III © 1989 Dataquest Incorporated February

0003069

Introduction to the Service

Newsletters—General overviews and analyses of specific industries or markets

Product Specification Guides

Who's Who Industry Guides

Consultancy

DATAQUEST LOCATIONS

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

Dataquest Incorporated

1290 Ridder Park Drive

San Jose, California 95131-2398

USA

Telephone: (408) 437-8000

Telex: 171973

Fax: (408)437-0292

Dataquest UK Ltd.

103 New Oxford Street

13th Floor, Centrepoint

London WCl AIDD

United Kingdom

Telephone: (01)379 6257

Telex: 266195

Fax: (01)240 3653

Dataquest GmbH

Roseiikavalierplatz

D-8000 Munich 81

West Germany

Telephone: (089) 91 1064

Telex: 5218070

Fax: (089) 91 2189

Dataquest Japan, Ltd.

Taiyo Ginza Building/2nd Fir

7-14-16 Ginza, Chou-ku

Tokyo 104

Japan

Telephone: (03)546 3191

Telex: J32768

Fax: (03)546 3198

Dataquest SARL

Dataquest Intelligent Electronics

Tour Gallieni

36, Avenue Gallieni

93175 Bagnolet Cedex

Y'TSXIOG

Telephone: (1) 48 97 31 00

Telex: 233263

Fax: (1)48 97 34 00

10

© 1989 Dataquest Incorporated February

ESIS Volume III

0003069

Table of Contents

Volume I

Tide Page

INTRODUCTION'

Introduction to the Service

TABLE OF CONTENTS

Table of Contents

Newsletter Index

1. BENELUX

1.1 Benelux Overview

1.2 Benelux Semiconductor Device Markets

1.5 Benelux Plant Locations

1.6 Benelux Design Center Locations

2. FRANCE

2.1 France Overview

2.2 French Semiconductor Device Markets

2.5 French Plant Locations

2.6 French Design Center Locations

3. ITALY

3.1 Italy Overview

3.2 Italian Semiconductor Device Markets

3.5 Italian Plant Locations

3.6 Italian Design Center Locations

4. SCANDINAVIA

4.1 Scandinavia Overview

4.2 Scandinavian Semiconductor Device Markets

4.5 Scandinavian Plant Locations

4.6 Scandinavian Design Center Locations

'Titles in capital letters signify tabs.

ESIS Volume III ©1990 Dataquest Incoiporated February

0006448

Table of Contents

Volume I (Continued)

5. UNITED KINGDOM AND IRELAND'

5.1 U.K. and Ireland Overview

5.2 U.K. and Irish Semiconductor Device Markets

5.5 U.K. and Irish Plant Locations

5.6 U.K. and Irish Design Center Locations

6. WEST GERMANY

6.1 West Germany Overview

6.2 West German Semiconductor Device Markets

6.5 West German Plant Locations

6.6 West German Design Center Locations

7. REST OF EUROPE

7.1 Rest of Europe Overview

7.2 Rest of Europe Semiconductor Device Markets

7.5 Rest of Europe Plant Locations

7.6 Rest of Europe Design Center Locations

EXCHANGE RATE TABLES

Exchange Rate Tables

Volume II

Title Page

INTRODUCTION

Introduction to the Service

TABLE OF CONTENTS

Table of Contents

Newsletter Index

'Titles in u^tal letten rigniiy tabs.

©1990 Dataquest Incorporated February ESIS Volume HI

0006448

Table of Contents

Volume II (Continued)

1. EUROPEAN OVERVIEW

1.0 Capital Investment

1.1 R&D Investment

1.2 Venture Capital

1.3 Government and Private Investment

1.4 The European Economic Environment

1.5 Channel of Distribution

2. SEMICONDUCTOR DEVICE MARKETS

European Semiconductor Consumption Estimates 1984-1994 by Product and Technology^

- Benelux

- France

- Italy

- Scandinavia

- U.K. and Ireland

- West Germany

- Rest of Europe

3. SEMICONDUCTOR END-USER MARKETS

3.0 Semiconductor End-User Markets

4. MAJOR USERS

4 Major Users

4.1 Electronic Equipment Company Revenue

4.2 User Company Profiles

5. SERVICES AND SUPPLIERS

5.0 Services and Suppliers to the Semiconductor Industry

-Air Products and Chemicals, Inc.

-Balzers

-The BOC Group PLC

-Compugraphic International

-General Signal

-LTX Corporation

-MEMC Electronic Materials S.p.A.

-Merck Group •'

'Titles in capital letten signify tabs.

In bocddet format

ESIS Volume in ©1990 DaUquest Incorporated February

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Table of Contents

Volume II (Continued)

5. SERVICES AND SUPPLIERS' (Continued)

-Micro-Image Technology Ltd.

-Monsanto Company

-Olin Corporation

-The Perkin-Elmer Corporation

-Plasma Technology Ltd.

-Teradyne Inc.

-VG Instruments PLC

-Wacker-Chemitronic GmbH

6.'

1.'

8.'

9. MEMORY

European MOS Memory Market—

Consumption Forecast 1988-1994,

Market Share Rankings 1988'

10. MICROPROCESSOR

10.1 Microcomponent Device Market

10.2 Microcomponent Device Supply

ECONOMIC DATA AND OUTLOOK

Economic Outlook Update 1988-1990'

Economic Data and Outlook 1988-1989'

EXCHANGE RATE TABLES

Exchange Rate Tables

'Titles in ciqntal letters sigmiy tabs. lo booklet fonuat

I n bSDSltlOQ

©1990 Dataquest Incorporated February ESIS Volume m

0006448

Volume III

Title Page

INTRODUCTION'

Introduction to the Service

TABLE OF CONTENTS

Table of Contents

Newsletter Index

1. EUROPEAN PLANT LOCATIONS

1. European Plant Locations

2. EUROPEAN DESIGN CENTER LOCATIONS

2. European Design Service Locations

3. EUROPEAN SEMICONDUCTOR PRODUCTION

3. European Semiconductor Production

3.1 Wafer Fabrication

4. COMPANY PROFILES

4. Company Profiles

A-B

Advanced Micro Devices, Inc.

Analog Devices, Inc.

ASEA Brown Boveri •

Austria Mikro Systeme International GmbH

C-D

E-F

Ericsson Components AB

European Silicon Structures

Eurosil Electronic GmbH

Fujitsu Limited

Titles in cs^ntal letteis sigmfy tabs.

ESIS Volume m ©1990 Dataquest Incoiporated February

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Table of Contents

Table of Contents

Volume III (Continued)

4. COMPANY PROFILES' (Continued)

G-H

General Instrument Corporation

Harris Corporation

Hewlett-Packard Company

I-J

Hitachi ltd.

Intel Corporation

ITT Corporation

K-L

LSI Logic Corporation

M-N

Marconi Electronic Devices Ltd.

Matra-Harris Semiconducteurs

Mitsubishi Electric Corporation

Motorola, Inc.

National Semiconductor Corporation

NEC Corporation

O-P

N.V. Philips Gloeilampenfabrieken

The Plessey Company PLC

Q-R

S-T

Semikron International

SGS-Thomson Microelectronics

Siemens AG

Telefunken Electronic GmbH

Texas Instruments, Inc.

Toshiba Corporation

TRW, Inc.

U-V

w-x

Y-Z

Zilog, Inc.

'Titles in c^tal letters signify tabs.

©1990 Dataquest Incorporated February ESIS Volume III

0006448

Volume n i (Continued)

MARKET SHARE DATA'

European Semiconductor Market Share Estimates—^Final 1988*

Worldwide Semiconductor Market Shares by Vendor Base

European Semiconductor Market Shares by Vendor Base

Worldwide Semiconductor Market Share Rankings

European Semiconductor Market Share Rankings

EXCHANGE RATE TABLES

Exchange Rate Tables

Table of Contents

'Htles in c^rital letters signify tabs.

ID booklet formal

ESIS Volume m ©1990 Dataquest Incoiporated February

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Table of Contents

ASIC

Title Page

INTRODUCTION'

Introduction to the Binder

TABLE OF CONTENTS

Table of Contents

ASIC OVERVIEW

ASIC—Executive Summary

ASIC—^Family Tree and Definitions

ASIC—^Forecast Summary

ASIC—Market

ASIC—^Historical Shipment Data

GATE ARRAYS

Gate Arrays—Executive Summary

Gate Arrays—Forecast

Gate Arrays—Product Analysis

Gate Arrays—Competitive Analysis

Gate Arrays—Emerging Technologies and Trends

Gate Arrays—Historical Shipment Data

PROGRAMMABLE LOGIC DEVICES

PLD—^Executive Summary

PLD—^Forecast

PLD—^Product Analysis

PLD—Competitive Analysis

PLD—^Emerging Technology and Trends

PLD—^Application and User Issues

PLD—^Historical Shipment Data

^Uties in c ^ t a l letters signiiy tabs.

©1990 Dataquest Incorporated February ESIS Volume III

0006448

ASIC (Continued)

CELL-BASED ICs'

CBICs—^Executive Summary

CBICs—Forecast

CBICs—^Product Analysis

CBICs—^Emerging Technologies and Trends

CBICs—^Historical Shipment Data

FULL-CUSTOM DEVICES

Full-Custom Devices—^Executive Summary

Full-Custom Devices—^Forecast

Full-Custom Devices—^Historical Shipment Data

EUROPEAN DESIGN CENTERS

European Design Service Locations—^Executive Sunrmiary

European Design Service Locations

European Full-Custom IC Design Service Locations

European CBIC Design Service Locations

European Gate Array Design Service Locations

EXCHANGE RATE TABLES

European Cvurency Exchange Rates

Table of Contents

'Htles in ci^nlal letteis signify tabs.

ESIS Volume III ©1990 Dataquest Incorporated February

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Table of Contents

Volume IV

Newsletters 1988-1989

1989-29 European MOS Gate Array and CBIC Design Starts Analysis

1989-28 European Semiconductor Procurement Survey

1989-27 European Quarterly Industry Forecast Third Quarter Update

1989-26 GaAs PLDs Attack the Silicon TTL PLD Market

1989-25 Exchange Rate Quarterly Newsletter

1989-24 Closing the Gap: Will Japan Become the World's Largest

November

October

October

September

September

September

Producer of Fab Equipment?

1989-23 Less Buoyancy Expected in the U.K Economy; More Confidence in the Irish Economy

1989-22 Mixed Analog/Digital ASIC—An Embryonic Market

1989-21 The PLD Evolution

1989-20 Dataquest European Semiconductor Industry Conference: "The

European Renaissance"

1989-19 The ASIC Package Proliferation

1989-18 International Semiconductor Trade Issues—Dominance,

Dependence, and Future Strategies

1989-17 The Shape of Post-1992 Distribution in Europe

1989-16 Exchange Rate Quarterly Newsletter

1989-15 Final 1988 Market Share Estimates—^European Semiconductor

Market

August

September

July

July

July

July

June

June

June

May

April

1989-14 European DRAM Market Update

1989-13 European Quarterly Forecast Update

1989-12 Unexpected Buoyancy of the French Economy

1989-11 European Personal Computer Production and Its Impact on the

Semiconductor Market

March

1989-10 Preliminary European MOS Gate Array and CBIC Market Share

Rankings

April

March

March

March

1989-09 Regional Review 1989—A Year of Consolidation

1989-08 EISA—Will It Be an Alternative to MCA?

1989-07 Understanding the NEC/Intel Decision

1989-06 Europe—A Healthy Marketplace for UNIX

1989-05 ASICs Surpass $7.4 BUlion in 1988

1989-04 Exchange Rate Quarteriy Newsletter

1989-03 Hitachi and TI Share the Risk: The 16Mb DRAM Agreement

1989-02 The EEC Rules on "Made in Europe"—Article 5 No. 802/68

Analyzed

1989-01 Preliminary 1988 Market Share Estimates—^European

March

March

March

March

March

March

January

Semiconductor Marketplace

1988-29 Europe Refreshes Its Stagnant White Goods Market

1988-28 The Semiconductor Chip Protection Act Is Finalized

November

November

10

©1990 Dataquest Incorporated Febraary

ESIS Volume III

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Table of Contents

Volume IV (Continued)

Newsletters 1988-1989

1988-27 GEC-Siemens' Joint Bid for Plessey November

1988-26 European Quarterly Forecast Update October

1988-25 Exchange Rate Quarterly Newsletter November

1988-24 Straw Poll of 1992: Regional Attitudes October

1988-23 DRAM Alliance: The United States Talks, The British Act October

1988-22 West Germany: Facing Up to the Economic Challenge October

1988-21 Component Distribution in 1992 September

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

1988-19 Harris Corporation to Acquire GE Solid State September

1988-18 ASIC Midyear Update September

1988-17 European Quarterly Forecast Update August

1988-16 Exchange Rate Quarterly Newsletter September

1988-15 Standard Logic Is at Life's Crossroads August

1988-14 Dataquest European Semiconductor Industry Conference: "Plan- July ning and Positioning for the '90s"

1988-13 1992—What's in a Number? July

1988-11 Semiconductor Recovery Gathers Momentum June

1988-10 U.K. Semiconductor Distributors' 1987 Revenue May

1988-9 "Intelligent" ICs Power Their Way mto $1.1 Million May

Semiconductor Application Market

1988-8 Semicon Europa: A Slow Show for a Year of Slow European March

Equipment Sales

1988-7 An Introduction to 1992 March

1988-6 DRAM Deja Vu March

1988-5 1988 European Regional Semiconductor Outlook March

1988-4 Ericsson Gets Leaner while Nokia Continues Acquisitions February

1988-3 Exchange Rate Quarterly Newsletter February

1988-2 Exchange Rate Quarterly Newsletter January

1988-1 1987 Preliminary Market Share Broad-Based Recovery in January

Semiconductors

I.C. EUROPE

Monthly reports containing:

State of the Industry

Industry Highlights

Research Update

Semiconductor Pricing and Analysis

Thought for the Month

1992

ESIS Volume ID

0006448

©1990 Dataquest Incorporated February

11

Newsletter Index

BY SUBJECT

Subject

Newsletter

1992 Introduction to 1992

1922—What's in a Number?

Component Distribution in 1992

I.e. Europe Thought for the Month—

Japanese Perception of Europe

The Shape of Post-1992 Distribution in Europe

The EEC Rules on "Made in

Europe"—Article 5 No. 802/68

Analyzed

I.e. Europe Thought for the Month—

European Semiconductor Supply

Note: Also see 1992 Section in I.C. Europe each month.

Acquisitions

AMI

Ericsson Gets Leaner while Nokia

Continues Acquisitions

Harris Corporation to Acquire GE

Solid State

Can CaUfomia Micro Devices Inject

New Life into AMI?

Can California Micro Devices Inject

New Life into AMI?

Analog

Application Markets

I.e. Europe Research Update—Analog

Market Analysis

I.e. Europe Research Update—

Quarterly Electronics Industry Update

European Personal Computer

Production and Its Impact on the

Semiconductor Market

EISA—^Will It Be an Alternative to

MCA?

Europe—A Healthy Marketplace for

UNIX

Date

1988-07

1988-13

1988-22

September 1988

1989-17

1989-02

July 1989

1988-04

1988-19

1988-20

1988-20

March 1989

August 1988

1989-11

1989-08

1989-06

ESIS Newsletter

0006459

©1990 Dataquest Incorporated February

Newsletter Index

Subject

Application Markets

(Continued)

Asia

ASICs

Newsletter

Europe Refreshes Its Stagnant White

Goods Market

I.e. Europe Thought for the Month—

Workstation Market Opportunities

I.e. Europe Thought for the Month—

Cordless Telephones

I.e. Europe Research Update—

European Military Market

I.e. Europe Thought for the Month—

ISDN: Aging before Birth?

I.e. Europe Research Update—

European Laptop Market Analysis

I.e. Europe Research Update—

CT2: A Rising Star in Europe

I.e. Europe Research Update—U.K.

V32 Modem Race

I.e. Europe Research Update—^The

Next Graphics Standard

I.e. Europe Research Update—Dynamic

European CAD/CAM Market

I.e. Europe Research Update—^Military/

Aerospace Semiconductor Demand

I.e. Europe Thought for the Month—

EC's Green Paper on Telecommunications

I.e. Europe Research Update—^The

Tigers Prepare for Graduation

ASIC Midyear Update

European MOS Gate Array and CBIC

Design Starts Analysis

Mixed Analog/Digital ASIC—An

Embryonic Market

The ASIC Package Proliferation

Preliminary European MOS Gate Array and CBIC Market Share Rankings

ASICs Surpass $7.4 BiUion in 1988

Date

1988-29

February 1989

October 1988

November 1988

December 1988/

January 1989

April 1989

June 1989

July 1989

August 1989

September 1989

November 1989

November 1989

March 1988

1988-18

1989-29

1989-22

1989-19

1989-10

1989-05

©1990 Dataquest Incorporated Febniaiy ESIS Newsletter

0006459

Subject

ASICs (Continued)

CAD/CAM

California Micro Devices

Capital Spending

Cellular Radio

Chip Protection Act

Communications

Companies

Newsletter Index

Newsletter

I.e. Europe Research Update—Gate

Array Design Start Forecast Slashed

I.e. Europe Research Update—^Dynamic

European CAD/CAM Market

Can California Micro Devices Inject

New Life into AMI?

I.e. Europe Research Update—

Quarterly Electronics Industry Update

I.e. Europe Research Update—

European Cellular Market

The Semicoductor Chip Protection Act is Finalized

I.e. Europe Research Update—^The

Final Frontier in Voiceband Modems

I.e. Europe Thought for the Month—

Satellites

I.e. Europe Research Update—

European Cellular Market

I.e. Europe Thought for the Month—

Cordless Telephones

I.e. Europe Thought for the Month—

ISDN: Aging before Birth?

I.e. Europe Research Update—

CT2: A Rising Star in Europe

I.e. Europe Research Update—^U.K.

V32 Modem Race

I.C. Europe Thought for the M o n t h -

EC's Green Paper on Telecommmunications

I.e. Europe Thought for the M o n t h -

Company Results

I.e. Europe Research Update—South

Korean Companies

I.e. Europe Thought for the Month—

Cordless Telephones

Date

December 1989

September 1989

1988-20

August 1988

September 1988

1988-28

July 1988

August 1988

September 1988

October 1988

Dec/Jan 1989

June 1989

July 1989

November 1989

January 1988

October 1988

October 1988

ESIS Newsletter

0006459

©1990 Dataquest Incoiporated February

Newsletter Index

Subject

Computers

Conferences

Consumer

Consumption Data

Newsletter

Date

European Personal Computer

Production and Its Impact on the

Semiconductor Market

Europe—^A Healthy Marketplace for

UNIX

I.e. Europe Thought for the Month—

Workstation Market Opportunities

I.e. Europe Research Update—

European Laptop Market Analysis

I.e. Europe Research Update—^The

Next Graphics Standard

1989-11

1989-06

February 1989

April 1989

August 1989

Semicon Europa: A Slow Show for a

Year of Slow European Equipment

Sales 1988-08

Dataquest's 1988 European Semiconductor Industry Conference: Planning and Positioning for the '908 1988-14

1992—What's in a Number? 1988-13

Dataquest's 1989 European Semiconductor Industry Conference: "The

European Renaissance"

Europe Refreshes Its Stagnant White

Goods Market 1988-29

1988 European Regional Semiconductor

Outlook

Semiconductor Recovery Gathers

Momentum

European Quarterly Forecast Update

European Quarterly Industry Forecast—

Third Quarter Update

European Quarterly Forecast Update

Regional Review 1989—A Year of

ConsoUdation

ASICs Surpass $7.4 Billion in 1988

I.e. Europe Research Update—

Worldwide Semiconductor Forecast

Low

1988-05

1988-11

1988-17

1989-27

1989-13

1989-09

1989-05

October 1989

©1990 Dataquest Incoiporated February

ESIS Newsletter

0006459

Newsletter Index

Date

Consumption Data

(Continued)

Deregulation

Design Starts

Distribution

EC

Economy

Equipment and Materials

Ericsson

Subject

Newsletter

I.e. Europe Research Update—Gate

Array Design Start Forecast Slashed

I.e. Europe Thought for the Month—

Government Policies

I.e. Europe Research Update—^EC's

Green Paper on Telecommunications

European MOS Gate Array and CBIC

Design Starts Analysis

U.K. Semiconductor Distributors' 1987

Revenue

Component Distribution in 1992

The Shape of Post-1992 Distribution in Europe

I.e. Europe Thought for the Month—

Distribution in Europe

I.e. Europe Thought for the Month—

European Community Not a Technological Backwater

I.e. Europe Thought for the Month—

Business Prospects

I.e. Europe Thought for the Month—

Government PoUcies

Less Buoyancy Expected in the U.K.

Economy; More Confidence in the

Irish Economy

Unexpected Buoyancy of the French

Economy

Semicon Europa: A Slow Show for a

Year of Slow European Equipment

Sales

I.e. Europe Research Update—General

Signal Acquires GCA

Ericsson Gets Leaner while Nokia

Continues Acquisitions

December 1989

May 1988

November 1989

1989-29

1988-10

1988-21

1989-17

November 1988

June 1989

February 1988

May 1988

1989-23

1989-12

1988-08

May 1988

1988-04

ESIS Newsletter

0006459

©1990 Dataquest Incorporated February

1

Newsletter Index

Subject

Exchange Rates

GaAs

GCA

GEC

General Signal

Harris

Hitachi

Industry Trends

Newsletter

Exchange Rate Quarterly Newsletter

Exchange Rate Quarterly Newsletter

Exchange Rate Quarterly Newsletter

Exchange Rate Quarterly Newsletter

Exchange Rate Quarterly Newsletter

GaAs PLDs Attack the Silicon TTL

PLD Market

I.e. Europe Research Update—General

Signal Acquires GCA

GEC-Siemens' Joint Bid for Plessey

I.e. Europe Research Update—General

Signal Acquires GCA

Harris Corporation to Acquire GE

Sohd State

Hitachi and Tl Share the Risk: The

16Mb DRAM Agreement

I.e. Europe Research Update—Hitachi/

TI DRAM Deal

1988 European Regional Semiconductor

Outlook

DRAM D6ja Vu

Semiconductor Recovery Gathers

Momentum

Standard Logic Is at Life's Crossroads

ASIC Midyear European Quarterly

Forecast Update

European Quarterly Forecast Update

I.e. Europe Research Update—^RISC

Architecture

I.e. Europe Thought for the Month—

DRAMs

I.e. Europe Research Update—

Quarterly Electronics Industry Update

Date

1988-16

1988-02

1989-25

1989-16

1989-04

1989-26

May 1988

1988-27

May 1988

1988-19

1989-03

February 1989

1988-05

1988-06

1988-11

1988-15

1988-18

1988-17

April 1988

July 1988

August 1988

©1990 Dataquest Incorporated Febraary

ESIS Newsletter

0006459

Subject

Industry Trends

(Continued)

Intel

Investment

Japan

Market Shares

Memory

.

ESIS Newsletter

0006459

Newsletter Index

Newsletter

European DRAM Market Update

European Quarterly Forecast Update

Regional Review 1989—A Year of

Consolidation

I.e. Europe Research Update-

Worldwide Semiconductor Forecast

Low

European Quarterly Industry Forecast—

Third Quarter Update

Intel Turns Twenty: Is There Life after

DOS?

Understanding the NEC/Intel Decision

I.e. Europe Thought for the Month—

European Community not a Technological Backwater

I.e. Europe Thought for the Month—

Japanese Perception of Europe

. PreUminary 1987 Market Share

Estimates

Final 1988 Market Share Estimates—

European Semiconductor Market

Preliminary European MOS Gate Array and CBIC Market Share Rankings

Preliminary 1988 Market Share

Estimates—^European Semiconductor

Marketplace

I.e. Europe Research Update—

Worldwide Market Share Analysis

I.e. Europe Research Update—Analog

Market Analysis

DRAM D6}h Vu

European DRAM Market Update

Hitachi and TI Share the Risk: The

16Mb DRAM Agreement

Date

1989-14

1989-13

1989-09

October 1989

1989-27

1988-12

1989-07

June 1989

September 1988

1988-01

1989-15

1989-10

1989-01

Dec/Jan 1989

February 1989

1988-06

1989-14

1989-03

©1990 Dataquest Incorporated February

Newsletter Index

Memory (Continued)

Mergers

Microelectronic Tube

Military

Subject

Microcomponents

Modems

NEC

Nokia

Offshore Manufacturing

Plessey

PLDs

Newsletter

I.e. Europe Thought for the Month—

Business Prospects

I.e. Europe Thought for the Month—

DRAMs

I.e. Europe Research Update—^Hitachi/

TI DRAM Deal

I.e. Europe Thought for the Month—

Users Erupt Against DRAM Proposals

I.e. Europe Research Update—

Managing the Mergers

Intel Turns Twenty: Is There Life after

DOS?

Understanding the NEC/Intel Decision

I.e. Europe Research Update—A

RISe-less Approach

I.e. Europe Thought for the Month—

Return of the Tube

I.e. Europe Research Update—

European MiUtary Market

I.e. Europe Research Update—Military/

Aerospace Semiconductor Demand

Date

February 1988

July 1988

February 1989

September 1989

June 1988

1988-12

1989-07

April 1989

December 1989

November 1988

November 1989

I.e. Europe Research Update—^The

Final Frontier in Voiceband Modems

July 1988

1988-07

Understanding the NEC Intel Decision

Ericsson Gets Leaner while Nokia

Continues Acquisitions 1988-04

I.e. Europe Thought for the Month—

Japanese Printer Manufacturers June 1988

GEC-Siemens' Joint Bid for Plessey 1988-27

GaAs PLDs Attack the Silicon TTL

PLD Market 1989-26

The PLD Evolution 1989-21

©1990 Dataquest Incorporated February

ESIS Newsletter

00064S9

Subject

Power ICs

Printers

Procvuement

Quality

RISC

SateUites

SOS-Thomson

Siemens

South Korea

Standard Logic

Takeovers

Tariffs

ESIS Newsletter

0006459

Newsletter Index

Newsletter

Intelligent ICs Power Their Way into $1.1 Billion Semiconductor

Application Market

I.e. Europe Thought for the Month—

Japanese Printer Manufacturers

European Semicoductor Procurement

Survey

I.e. Europe Thought for the Month—

Perception versus Measurement

I.e. Europe Research Update—^RISC

Architecture

I.e. Europe Research Update—^A

RISC-less Approach

I.e. Europe Thought for the Month—

Satellites

I.e. Europe Research Update—

Managing the Mergers

GEC-Siemens' Joint Bid for Plessey

I.e. Europe Research Update—South

Korean Companies

I.e. Europe Thought for the Month—

Cordless Telephones

Standard Logic Is at Life's Crossroads

GEC-Siemens' Joint Bid for Plessey

I.e. Europe Research Update—^The

Tigers Prepare for Graduation

The EEC Rules on "Made in

Europe"—Article 5 No. 802/68

Analyzed

I.e. Europe Thought for the Month—

Regional Aid Policy

Date

1988-09

June 1988

1989-28

March 1988

April 1988

April 1989

August 1988

June 1988

1988-27

October 1989

October 1988

1988-15

1988-27

March 1988

1989-02

April 1989 .

©1990 Dataquest Incorporated Februaiy

Newsletter Index

Subject

Tariffs (Continued)

TI

Trade Issues

U.K. Markets

UNIX

Users

USSR

Venture Capital

Vertical Integration

Wafer Fabrication

Newsletter

I.e. Europe Thought for the Month—

European Semiconductor Supply

Hitachi and TI Share the Risk: The

16Mb DRAM Agreement

I.e. Europe Research Update—Hitachi/

TI DRAM Deal

International Semiconductor Trade

Issues—^Dominance, Dependence, and

Future Issues

The EEC Rules on "Made in

Europe"—Article 5 No. 802/68

Analyzed

U.K. Semiconductor Distributors' 1987

Revenue

Europe—A Healthy Marketplace for

UNIX

I.e. Europe Thought for the Month—

Users Erupt against DRAM Proposals

I.e. Europe Thought for the Month—

An Era of Glasnost and Perestroika

I.e. Europe Thought for the Month—

Changing Role of Equity in Europe

I.e. Europe Thought for the Month—

Forward Vertical Integration

Closing the Gap: Will Japan Become the World's Largest Producer of Fab

Equipment?

Date

July 1989

1989-03

February 1989

1989-18

1989-02

1988-10

1989-06

September 1989

March 1989

October 1989

August 1989

1989-24

10

©1990 Dataquest Incoiporated February

ESIS Newsletter

0006459

j l . European Pt

Locations

luropean Fab Database

November 1991

DataQuest

Semiconductors Europe

Dataquest

European Fab Database

November 1991

Dataquest Semiconductors Europe

Source:

Dataquest

i

Published by Dataquest Incorporated

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

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

© 1991 Dataquest Incorporated m

November 1991 ^

European Fab Database

Background

The material in this booklet applies to the

European portions of Dataquest's Semiconductors Europe service Wafer Fab Database. The

Wafer Fab Database is updated on an ongoing basis, employing both primary and secondary research methodologies. The tables included in this booklet highlight both production and pilot line wafer fabs.

General Definitions

A fab line is a processing line in a clean room that is equipped to d o all front-end wafer processing. Occasionally there are two separate product-specific fab lines or two different wafer sizes in a clean room. In this situation, a clean room will b e documented as two fab lines if the equipment is dedicated to each wafer size or product line. There can b e many fab lines at one location.

Front-end wafer processing is defined as all steps involved with semiconductor processing, beginning with initial oxide and ending at wjifer probe.

A production fab is defined as a wafer fab capable of front-end processing more than

1,250 wafers per w e e k (type = F).

A pilot fab is defined as a wafer fab capable of front-end processing 1,250 wafers or less per week (type = P).

Definitions of Table Columns

The Products Produced column contains product information for seven p r o d u a categories.

The information in this column can be very detailed, depending o n the information's availability. The nomenclature used within the seven product groups of the fab database is as follows, with definitions where warranted:

• Analog

- UN—^Linear/analog devices

- A/D D/A—Analog-to-digital, digital-toanalog converters

- AUTOMOTIVE—^Dedicated to automobile applications

- CODEC—Coder/decoder

- DSriERFACE—Interface IC

- MESFET (GaAs)—Metal Schottky fieldeffect transistor

- MODFET (GaAs)

- MDIODE (GaAs)—Microwave diode

- MFET (GaAs)—Microwave field-effect transistor

- MODEM—Modulator/demodulator

- MMIC—^Monolithic microwave IC

- OP AMP—Operational amplifier

- PWR IC—^Power IC

- REG—Voltage regulator

- SMART PWR—Smart power

- SWITCHES—Switching device

- TELECOM—^Telecommunications chips

Memory

- MEM—Memory

- RAM—Random-access memory

- DRAM—Dynamic RAM

- SRAM 4 TR.—Static RAM uses a

4-transistor cell design

- SRAM 6 TR.—Static RAM uses a

6-transistor cell design

- VRAM—Video RAM

- ROM—^Read-only memory

- PROM—^Programmable ROM

- EPROM—^Ultraviolet erasable PROM

- EEPROM or E2—^Electrically erasable

PROM

- FERRAM—^Ferroelectric RAM

- NVMEM—^Nonvolatile memory (ROM,

PROM, EPROM, EEPROM, FEREIAM)

- FIFO—^First-in, first-out memory

- SPMEM—Other specialty memory (dual port, shift-register, color look-up, etc.)

Micrologic

- ASSP—Application-specific standard product

- BIT—^Bit slice (subset of MPU functions)

- DSP—^Digital signal processor

- MCU—Microcontroller unit

- MPR—^Microperipheral

- MPRCOM—MPR digital communications

(ISDN, LAN, UART, modem)

- MPU—Microprocessor unit

- LISP—^32-bit list instruction set processor for AI applications

- RISC—^Reduced-instruction-set computation

32-bit MPU

• Standard logic

- LOG—Standard logic

• ASIC logic

- ASIC—^Application-specific IC

- ARRAYS—Gate arrays

- CBIC—Cell-based IC

- CUSTOM—Full-custom IC (single user)

- PLD—^Programmable logic device

• Discrete

- DIS—Discrete

- DIODE

- PET—^Field-effect transistor

- GTO—Gate turn-off thyristor

- HEMT (GaAs)—^High-electron-mobility transistor

- MOSFET—MOS-based field-effect transistor

- PWR TRAN—Power transistor

- RECTIFIER

- RF—^Radio frequency

- SCR—Schottky rectifier

- SENSORS

- SST—^SmaU-signal transistor

- THYRISTOR

- TRAN—^Transistor

- ZENER DIODE

• Optoelectronic

- OPTO—Optoelectronic

- CCD—Charge-coupled device (imaging)

- COUPLERS—^Photocouplers

- lED—^Infrared-emitting diode

- IMAGE SENSOR

- LASER (GaP)—Semiconductor laser or laser IC

- LED—Light-emitting diode

- PDIODE—Photo diode

European Fab Database

- PTRAN—^Photo transistor

- SAW—Surface acoustic wave device

- Srr IMAGE SENSOR—Static induction transistor image sensor

The Process Technology column lists four major types of technologies. This column also lists a few uncommon technologies along with information on levels of m e t ^ type of well, and logic structure, when available. Definitions of the nomenclature used in the Process Technology column are as foUows:

• MOS (silicon-based)

- CMOS—Complementary metal-oxide semiconductor

- MOS—^n-channel metal-oxide semiconductor (NMOS) and p-channel metal-oxide semiconductor (PMOS) (More than

90 percent of the MOS fabs use n-channel MOS.)

- Ml—Single-level metal

- M2—^Double-level metal

- M3—Triple-level metal

- N-WELL

- P-WELL

- POLYl—Single-level polysilicon

- POLY2—Double-level polysilicon

- POLY3—Triple-level polysilicon

• BiCMOS (silicon-based)

- BICMOS—Bipolar and CMOS combined o n a chip

- BIMOS—^Bipolar and MOS combined on a chip

- ECL I/O—^ECL input/output

- TTL I / O — ^ m input/output

• Bipolar (silicon-based)

- BIP—Bipolar

- ECL—Emitter-coupled logic

- TTL—^Transistor-transistor logic

- STTL—Schottky TTL

• Gallium arsenide and other compound semiconductor materials

- GaAs—Gallium arsenide

- GaAlAs—Gallium aluminum arsenide

- GaAs on Si—Gallium arsenide on silicon

- GaP—Gallium phosphide

©1991 Dataquest Incorporated November—Reproduction Prohibited

- HgCdTe—Mercuric cadmium telluride

- InAs—^Indium arsenide

- InP—^Indium phosphide

- InSb—Indium antimony

- LiNb03—^Lithium niobate

- SOS—Silicon on sapphire

The number in the Minimum lAnewidth column represents the minimum linewidth at the critical mask layers as drawn. This number is stated in microns and is defined in Dataquest's fab survey as being available in production volumes.

The Wafer Size column represents the wafer diameter expressed colloquially in inches.

However, for wafers greater than 3 inches in diameter, the colloquial expression is inaccurate. When calculating square inches, the following approximations are used:

Wafer-Start Capacity is defined in the fab survey as the equipment-limited wafer-start capacity per four-week period. Start capacity is not limited by current staffing or the number of

European Fab Database

shifts operating; it is limited only by the installed equipment in the fab and the complexity of the process it runs. Start capacity in square inches is calculated using the approximate diameter and the wafer-start capacity.

The Clean Room Class column represents the level of cleanliness in the cleanest part of the clean room. This area represents the true environment to which the wafer is exposed.

The Origin of Oumer column represents the country where the parent company is headquartered.

The Merchant or Captive column categorizes each fab line on the tables as one of these two types. Definitions of the various categories are as follows:

• A Merchant fab line is a fab line that produces devices that end up available on the merchant market

• A Captive fab line does not sell any of its devices on the merchant market. All production is consumed by the owner of the fab line.

©1991 Dataquest Incorporated November-Reproduction Prohibited

Table 1

European Existing Pilot and Production Fab Llne»

(Including Fabs Going into Productloti During 1992)

Company

ABB-BAFO AB

City

JABTALLA

Country

SHEDEH

Fab

Name

K/A

Products

Produced

Proceaa

Technology

Mln.

LineWaf. width Size

Max.

W/Start

Capacity

Start Room

Capacity (square

(4 wks.)

S<i*

I n .

<4 wks.)

Clean feet)

DIS OBIO BIF CMOS SOS 1.50

5,000 60,850 6,000

A£Q A S (DAIMLER BENZ)

AHALOO DEVICES

ANALOe DEVICES

ANSALDO IRASPORTI

LAHPERTHEIM

4SW

CKNOA II9UiX.;

H/A

PHR DIS

LIN

3D ICs mn-HAVE

OPTO

0.00

16,000 113,120

0

mx-

LIN AD/DA

TELECOM

CMOS BICMOS 1.00 15,000 182,550 10,000

K/X

LIN AD/DA

TELECOM

BIP BICMOS 1.20 20,000 547,600

0

6,000 73,020

ASCOM FAVAS SWITZEBUNC N/A

ARRAYS

CUSTOM

3.00 1,000 12,170

I

Table 1 (Continued)

European Existing Pilot and Production Fab Lines

(Including Fabs Going into Production During 1992)

Company

City

Country

Max. Sq. In. Clean

Mln. n/Start Start Room

Fab Products Process Line- naf. Capacity Capacity (square

Name Produced Technology width Size (4 vks.) (4 »ks.) feet)

ATtT HICROELECTBONICS SPAIN H/A CBIC

CUSTOM

CMOS M2 1.25 6 14,000 383,320 25,00

#/A

SM

EPROM

EEPROM

ARRAYS

O.ni •' 5,000 243,350

I

AOSTRIA HIKROSXSIEME GMBH i

DIGITAL EQUIPMENT

I

EUK>S GMBH

I

if ft

ABRnys

BICMOS

1.00

.:f

25,000 304,250 10,0

SOUTH QUEENSFERRY SCOTLAND mA HPD FPU CMOS

LOO

0.70 e. 3,000 62,140 28,0

DORTMUND GERMANY H / A L I N CUSTOM CMOS 1.50 4 4,166 50,700

N/A H/A l.GO 9

ES2 EUROPEAN SILICON STRUCTURES ROUSSET CEDEX

CBIC

ARRAYS

CUSTOM MIL

CMOS M2 0.80

:&

1,000 19,020

Table 1 (Continued)

European Existing PUot and Production Fab lines

(Including Fabs Galas Into Production During 1992)

Company City Country fab

Name

Kax. Sq. In, Clean

Min. n/Start Start Room

Products Proceaa

Produced Technology

Line- ffaf. Capacity Capacity (square width Size (4 wks.) (4 wks.) feet)

•s r p j i w o

O SEC PLESSEY S/C

i fi

a

I

esc PLESSEX S/C

n

GEC PLESSEY S/C

O,

§

3'

I

S. GEC PLESSEY S/C

GEC PLESSEY S/C

NEWIOH AYCLIFFE BNeUUn} PHASE 1

4Mb DRAM

ASIC

LINCOLN j«G£»tt' n/&

LIN HPD

ABBAYS

SBAH COST

•^ifm^ Mm

KM

1.00 6 25,000 684,500

1.50 4. 13,000 158,210 12,000

'3^(K^ 15,000 182,550

SWINDON

N/A

ASIC DSP

TELECOM

CMOS MHOS H3 0.70 6,000 164,280 1», 906

H/A.

DIODES DIS

LIN flK^^Sp:

V/K

VXf'

S ; M 5 12,000 228,240 29,000

3.00 4 14,000 170,380

I

I

I

Table 1 (Continued)

European Existing Pilot and Production Fab lines

(Including Fabs Going Into Pfoducdon During 1992)

Company

HHT city

BRDGG

Country

Fab

Name

SniTZERIAND N/A

Products

Produced

Process

Technology

CONSUMER

ICs

Max. Sq.

In.

Clean

Min. N/Start Start Room

Line- Waf. Capacity Capacity (square width Size <4 vks.) (4 vks.) feet)

0.00 3 15,000 106,050 15,00

«

HDGHES HICROELECT. GLENROTHES SCOTLAND

ilflfh

CBIC EPROH

COSIOM

BOEBLIHCEN GEBHANX J | ^

PHR DIS

BYBRID

0.00 ^ 20,000 243,400

I

2.00

)»>

40,000 760,600 50,00

m-

COBBEIL-ESSONNES FBUICE N/A

ARRAYS LIN BIP

CUSTOM

COBBEIL-ESSOHHES FRANCE

K/A

25eK DRAM

64K SRAM

CMOS MOS Xim 9 25,000 475,500 25,00

7,000 340,690

ifr/*

IHb DRAM CMOS

IKf

gi^p; t 20,000 243,400

H/A

g a

I

I mi

©

l-J

Table 1 (Continued)

European Existing Pilot anij Ptoducdon Fab IJne<j

(tncludli^ Fabs Going Into Fix>diictlon Dutlng 1992)

Company c i t y

SimiELFINQEN

C o u n t r y

GEBHAinC

Fab

Name

SM

ProductB

Produced

Proceas

Technology

ARRAYS BIP

Max. Sq. In. Clean

Min. n/Start Start Room

Line- ffaf. Capacity Capacity (square width Size (4 vtks.) (4 wks.) feet)

2 . 0 0 5 1 5 , 0 0 0 2 8 5 , 3 0 0 2 0 , 0 0 0

SINDELflNGEN

N/A 1Mb DEUU4

4Mb DRAM

SIHDELFINGEN

GEBMANX

tl/fk,

25eK DRAM

SBAH DSP

HPD

O.SO 8 2 0 , 0 0 0 9 7 3 , 4 0 0 4 5 , 0 0 0

1 . 5 0 i 2 5 , 0 0 0 4 7 5 , 5 0 0 2 0 , 0 0 0

V/k-:

CDSTCM Bit 1.50 S 15,000 285,300 20,000 SIHDELFINGEN

vm

4Hb DRAM CHOS 0.80 B 30,000 1,460,100 45,000 a

O IBM

I

INST. SCIENCE

i

TECB.

SINDELFINGEN

VA

B0I,GARIA N/A

1«K DRAM,

64K DRAM

J^X

0.00 ff

0.00 4 10,000 121,700

Table 1 [Continued)

European Existing PUot and Production Fab lines

(Including Fabs Going Into Production During 1991)

Conrpany

INTL. BECTIFIER

City

IDKIN

Country

IIAilt

Fab

Name

BORGARO

Max.

Products Procesa

Produced Technology

Hln.

Linewidth

Waf.

Size

W/Start

Capacity

(4 vks.)

Sq. In. Clean

Start Room

Capacity (square

(4 Hks.) feet)

BECTIFIER N/A

TBIRISIOR

0.00 4 15,000 182,550 13,00

•§

1 ttlTL. RECTIFIER

BECTIFIER

THYRISTOR

N/A 0.00 4 10,000 121,700

9,49 -A 5,000 35,350

YUGOSLAVIA N/A

I

BARTLEPOOL ENGLAND H/A 0.00 0

I

• 8

I

I

N/A

H/A

0.00 0

GERHANX mfit.

PtlR TRAN

DIS

BIP HOS ^^t^S < 42,000 511,140

GEEJOlWf H/A DSP NVHEH

CDSTOH

CMOS HOS 1.20 5 21,500 408,930

Table 1 (Continued)

European Existing Pilot and Production Fab Lines

(Indudii^ Fabs Going into Production During 1992)

Company

IVT

City

FREIBDKG

Country

GEBHANY

Fab

Name

N/A

Products

Produced

Process

Technology

Max. Sq. In. Clean

Mln. W/Start Start Room

Line- Haf. Capacity Capacity (square width Size (4 wka.) (4 wka.) feet)

DIS CUSTOM BIP 5.00 4 16,500 200,805

0

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

MATRA HHS/CYPRESS

HICOBELECT. -MARIN

(QCROELECT. -MARIN

HICRONAS, INC.

t/*

..ptKW

N/A

256K SRAM CMOS BICHOS 0.70

:» 10,000 190,200 21,500

MCO ASIC H2

LIN

TRAMCB

H/A S/A H/A

SniTZERLAND H/A CDSKW H/A

0 . 0 0 4 1 0 , 0 0 0 1 2 1 , 7 0 0

SWIIZERUmD N/A

ARRAYS LIN CMOS

COSIOH

3 . 0 0 i 1 0 , 0 0 0 1 2 1 , 7 0 0

FINLAND K/A LIN CBIC CMOS M2

COSTOM

2.00

4,000 48,680 12,912

Table 1 (Continued)

European Existing Pilot and Production Fab lines

(Including Pabs Going Into Production During 1992)

Company

HtETEC ALCATEL

City

OODENAARDE

Country

BELOIOM

Fab

Name

Max. Sq. In. Clean

Min. N/Start Start Room

Products Process Line- Waf. Capacity Capacity (square

Produced Technology width Size (4 vks.) (4 vks.) feet)

CUSTOM MOS CMOS

CBIC ANA BICMOS

1.00 4 15,000 182,550 21,5

»-*

D MOTOROLA

C

I

I

I

1

^ MOTOROLA

EAST KILBRIDE SCOTLAND HOS-1

HCt; MEM CMOS MOS Ml 3,00

LOG

4 20,000 243,400 25,6

BAST KILBRIDE SCOTLAND

WH"^

'^^ ''^ '^'^'^ ^ ^ 2-M:

t:

45,000 855,900 35,0

LOG

EAST KILBRIDE SCOTLAND XKlS-tf SRAM 1Mb CMOS TOSHIBA 1 . 0 0

DRAM 6 8 0 4 0

MPO

6 25,000 684,500 34,0

BIP PHR PHR TRAH BIP

10.00 9 12,000 228,240 8,7

I

2.00 4 25,000 304,250 22,0

'i^llJii«

v/x

TELECOM OP BIP

AMP RES

AOTO

UES

0.00 4 14,000 170,380 5,8

I

Table 1 (Continued)

Suropean Existing Pilot tnt^ ncpdocOsa Fab lines

(InchifUng Fabs Going Ini^ Stojilte^otl I>uring 1992)

C o u n t r y

SCOTLAND

Fab

Name

Max, Sq. In. Clean

Mln. H/Stai± Start Room

Products Process Line- Waf. Capacity Capacity {square

Produced Technology width Sise (4 wka.) (4 wks.) feet)

BIP 4 LOG BIP 5.00 4 40,000 486,800 10,000

Company

@

NATIONAL 5/C

i-»

D

NATIONAI. S/C

i

(b

I

3 NATIONAL S/C

I

I

SCOTLAND t m x e VM

'SI*

SCOTLAND OK 6" LOG COSIOM BIP

ARRAYS

0.00 5 15,000 285,300 15,000 a.50 « 7,000 191,660 10,000

LIVINGSTON, WEST SCOTLAND PBASE 1 IHb DRAM CMOS M2 H3 0.70 $ 9,000 171,180 19,500

LOTHIAN 4Mb DRAM

LIVINGSTON, REST SCOTIiAND

LOTHIAN

4Hb DRAM CMOS

2S6K SRAM

MPn

0.00 6 9,000 246,420 19,500

0.00 4 10,000 121,700

NEmOSKET MICBOSYS.

w&m :W^

NDOVA HISTRAL S . P . A .

SEBHONETA

i l ^

R/A

DIODE

DIODES

N/A

3.00 3 15,000 106,050 10,76

Table 1 (Continued)

European Existing iHlgl ^0A IPnilliinctla^

(Including Fabs Goii^ J^tHk ^^^llUi^ia^ tkHitis 1992)

Company City

Country

Max. Sq. In. Clean

Mln. W/Start Start Room

Fab Products Process Line- Waf. Capacity Capacity <aquare

Name Produced Technology width Size {4 wks,} (4 wks.) feet)

K/A

CONSUMER BIPOLAR H2 M3 1.50

ICS

£ 18,000 342,360

§

PHILIPS

•2

HAMBURG

CONSDHER CON 1.20 5 18,000 342,360 16,14

DISCBEIS DIS

W * 1ft

22,000 267,740

Kt^Cfep:

'^MEJUili'

%^

BAZELGROVE, ENGLAND

STOCKPORT CHESHIRE

8-BIT HCD CMOS HOS HI 1.00

16-BIT HCD H2

EEPROM

ASIC

5 12,500 237,750 32,28

IRAN DIODE BIP

RECTIFIER

10.00 t 45,000 547,650 19,36

STOCKPORT CHESHIRE

3.00 4. 10,000 121,700 11,83

SMART PWR

»/A

S/A

iii»M

3.00 1 26,000 316,420 23,45

@

O

Table 1 (ContlQued)

European Existing PJIot and Production Fab lines

(Inchidlng Fabs Going Into Production During 1992)

Company

City

Country

Fab

Hame

Max. Sq. In. Clean

Hin. W/Start Start Room

Products Proceaa Line- Naf. Capacity Capacity (square

Produced Technology width Size (4 wka.) (4 wks.) feet)

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

NETHEBLAHDS H/A t ^

MOS BICMOS 1 . 5 0 j l : 2 0 , 0 0 0 3 8 0 , 4 0 0 3 9 , 3 3 8

BIS

I

f

I

I

PHILIPS

NEIHERLANDS K/A

Pmt DIS R/lk

DIODES

0.70

4

Q

12,912

STAOSKANAAL NEISEBLANDS N/A KECTIFIER BIP H3 0.00 3 70,000 494,900 0 iliat^^ ;;K^. intig «.«0 S 12,000 228,240 12,58

PBILIPS BTC

I

PBILIPS/FASELEC

'^euir

SniTZEBLAND N/A 1 ^ CMOS IH 2.00 f 12,000 146,040 21,52

M/*. J»3$;Kiii s ^ Q.OO 3 10,000 70,700 13,00

?ml»:

OBANOLLEKS

Table 1 (Contiiiiied)

European Existing Pilot and Production Fab lines

(Including Fabs Going Into Production During 19?2)

Cc»npany City

Country

Fab

Name

Max, Sq. In. Clean

Min. n/Start Start Room

ProductB Proceaa Line- Waf. Capacity Capacity (square

Produced Technology width Size (4 wks.) <4 wks.) feet)

EHCXAND H/A N/A

0 . 0 0 3 1 0 , 0 0 0 7 0 , 7 0 0

«

S RIFA AB

StlEDEH H/A WR DJS B I S

0.00 4 25,000 304,250 92,00 a

I

:'W(stK

n/t,. $/ji,. :iB5Kji!iesr 0.00 ^ 10,000 121,700

CDSTOM

BIP BICHOS

3^'lSfa

4 20,000 243,400

5" SEAGATE KECROELBCI. LIVIMGSrON SCOTLAND »/& LIN M P

H2

3.00 4 5,000 60,850 16,1

!3

I

GLENROTHES

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

OPTO

ttfk vti

«i» 0.00 4 10,000 121,700

CRICKLADE

g SGS-THOMSON

I

I

SGS-TBOMSON

SGS-THOMSON

I

'0

a SGS-THOMSON

SGS-IHOHSON

Table 1 (Continued)

European Existing Pilot and Production Fab lines

(Including Fabs Going Into Production During 1992)

Company

SEHITRON

City Country

Fab

Name

S/A

Max. Sq. In. Clean

Hin, W/Start Start Room

Products Process Line- Waf. Capacity Capacity (square

Produced Technology width Size (4 HICS.) (4 wka.) feet)

»IS

JtlB

0.00 4 10,000 121,700

35041 SENNES

N/A

^

5.00 S i e , 0 0 0 304,320

m

Wfft'

LIN ARRAYS BIP BICHOS 4.00 S 16,000 304,320 22,000

LOGIC

AGR&TE (MILAN) : X M t S 64K 2S6K

1Mb EPROH

PLD LIN

ARRAYS

W^

i^

aw

H/A

0.70 S 28,000 766,640 22,000

$.99: 5 34,000 646,680

'^ifXjfjiifi]^

COSTALEITO n/k

LOO LIN

COSTOM

H/A

3.00 4: 21,000 255,570

O.OO

SSS-IHOHSON

T^le 1 (Continued)

European Existing Pilot and Production Fab IJnes

(Including Fabs Going Into Production Duiing 1992)

Conp&Ay City Country

Fab

Name

Max. Sq. In. Clean

Mln. W/Start Start Room

Products Process Line- Waf. Capacity Capacity (square

Produced Technology width Size (4 wks.) (4 wks.) feet)

FSUICE N/A LIN PHR IC BIP CMOS

CDSTOM

1 . 5 0 4 2 0 , 0 0 0 2 4 3 , 4 0 0 1 4 , 0 0

«

SQS-IHOHSON

I

•g SGS-THOMSON

8!

I

SSS-THOHSOH

SQS-TBOHSON

MODDLE 4 MPD LIB CMOS MOS 2 . 0 0 * 2 2 , 0 0 0 2 6 7 , 7 4 0

XRANCE MODOLE 5 NVHEH HPO CMOS MOS 1 . 5 0 S 1 6 , 0 0 0 3 0 4 , 3 2 0 rSAHCK tIESA K/A

5.00 3 70,000 494,900

I

S6S-TH0HS0N tfDNICH

^idA^' ^lii^si" IHT^

• » * ;

^^fib ill 20,000 243,400

BALANSTRAS ASIC BIP

CDSIOH LIN

2.00 S 15,000 285,300

BALANSTRAS ASIC

COSTOH

CMOS MOS t>:W ;S. 15,000 285,300

^

8 SIEMENS f

Table 1 fContinucd)

European Existing Pilot and Production Fab Lines

(Including Fabs Going into Production During 1992)

CoK^any

City

Country

Fab

Name

Products

Produced

Process

Technology

Max. Sq. In. Clean

Min. W/Start Start Room

Line- ffaf. Capacity Capacity (square width Size (4 wks.) (4 vks.) feet)

BEGENSBDHG e&RHAinr MEGA 1

IHb DRAM

4Mb DRAH

KEOENSBDRG

0.80 e 20,800 569,504

MEGA 2 4Hb DRAM CMOS

0.80 « 16,000 438,080

I g' SIEMENS

g.

BEGENSBOBG

GEBHMiy R ^

•ixm-

WHi-

d;,;Oq; 4. 10,000 121,700

i^i|^ippk' p» i,

6 4 K DRAM

LOG

2.00 4 40,000 486,800

AOSTRIA FAB 2 25 6K DRAH MOS

1,20 5 40,000 760,800

• « *

0.00

A

10,000 121,700 SHIIZEBLAND N/A

:3.«ll

j^

24,000 292,080 3,000

TELEFDNKEH SCBIHG

GEBMAHX N/A

LOG HPD

HCU ARRAYS

I

I

I

Table 1 CCoatlnued.)

European Existing Pilot and Producdon Pab lines

(Including Fabs Going Into Production During 1992)

Company C i t y C o u n t r y

Tab

Name

Max. Sq. In. Clean

Min. W/Start Start Room

Products Froceaa Line- Waf. Capacity Capacity (square

Produced Technology width Size (4 wka.) (4 wks.) feet)

COST amwMre H / A CDSTOM L I N B I P MOS CMOS i . o o A 2 0 , 0 0 0 2 4 3 , 4 0 0

DIS HCV

^ TELEFDNKEN ELECT.

I

B

•g lELEFUNKEN ELECT.

I

8.

Z lELEFDHKEN ELECT.

BEILBRONN

GESHANY ' l l / A

OPTO HIGH BIP

FBEQOEHCY

N/A

1.00 ia 5 , 0 0 0 3 5 , 3 5 0

1 . 0 0 :ti 3,000 9,420 raiwcE n / A D I » M/X

0 . 0 0 4 1 0 , 0 0 0 1 2 1 , 7 0 0 2 5 , 0 0

txiait-

PHASE 1 4Hb DRAM CHOS

ASSP CBIC

0 . 8 0 S 2 3 , 7 4 0 6 5 0 , 0 0 1 4 6 , 0 0

ENStAHD PHR FAB PWR DIS BIP

0 . 0 0 il 1 4 , 3 7 9 1 7 4 , 9 9 2 9 , 0

GEBHKHy H/A LIH ASSP BIP CMOS

BICMOS

0 . 8 0 i 9 , 4 6 3 1 7 9 , 9 8 6 1 0 , 0

Table 1 (Continued)

European Existing Pilot and Production Fab Lines

(Includli^ FatM Going into Production During 1992)

Company City Country

Fab

Name

Max. Sq. In. Clean

Min, W/Start Start Room

Products Frocesa Line- Waf. Capacity Capacity (square

Produced Technology width Size (4 wks.) (4 wks.) feet)

N/A

CBIC LIN CMOS BICMOS 0,80 5 10,515 199,995 17,000

ASSP

FINLAND |(/JL n j t £ H ^ : 5.00 3 290; 1,414

VAISAUV

I

f

VEB GLEICBRICHTERDERK

STABNSDORF GERHMHy H/A FHR DIS N/A 0.00 0'

0.00 0 VEB HALBLEIIERHERK

I

I

VEB KOMBINAT HIKROELEKTRONIK

FBAHKFORT (ODER) GERHANX

It/K

l i ^

fM

GERHMn- ,iJEA:: D / A c^K>s MOS O . O O O

NEOBADS AH RENtmEG GERMANY M M RHW W M

0 . 0 0 «(

VEB ROEHRENDERK

VEB NERK FDER FEBNSEEELEKTRONIK BERLIN-OBERSCBOENE 6ERHANX

11/K.

SENSOR CCD N/A

WEIDE

0.00

0

H '

•§

9!

B

I

Table 1 (Continued)

European Existing Wlot and Production Fab lines

(Inctudins Fabs Going into Prodiictlon During 1992)

Company City

C m m t r y

Fab

Name

Max. Sq. In. Clean

Hin. W/Start Start Room

Products ProceSB Line- Haf. Capacity Capacity (square

Produced Technology width Size (4 vks.) (4 wks.) feet)

NESTCODE S/C

I

I

MA - Not Available

Source: Dataquest (November 1991)

CRIPPEH8AH H/A

Wh

H/A 0 . 0 0 4 1 0 , 0 0 0 1 2 1 , 7 0 0 l . S O 5 1 0 , 0 0 0 1 9 0 , 2 0 0 2 6 , 0 0 0

I

Table 2

Buropean Future Pilot and Production Fab lines

(Planned Facilities Going Into Production by Yeaf)

Target Wafer Sq. In. Clean

Date Mln. Start Start Room

Fab Process Fab Prod. Line- Waf. Capacity Capacity (Square

Company City Country Name Products Technology Type Begins width Size (4 wka.) (4 wks.) Feet)

Production Begins; 1992

HITACHI LANOSHDT GEttMAHY N/A 4Hb DRAH 25eK N/A

IHb SRAM

»

01/01/92 0.80 e 16,000 778,720

s-

HITSOBISHI KLSDOBF GERMANY N/A 4Hb DRAM HPU CMOS

IHb DRAH

FAT 03/01/92 0.80 6 22,000 602,360 25,0

5" TI AVEZZANO ITAIiY PHASE 2 16Hb DRAH CMOS T 0 2 / 0 1 / 9 2 0 . 6 0 8 20,000 973,400 3 0 , 0

I

9

Production Begins: 1993

„ FOJITSn NEWTON AYCLIFFE ENGLAND PHASE 2 4Mb DBAM ASIC CMOS

/ / 0.80 6 45,000 1,232,100 f

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

MPU LOG

HIETEC ALCATEL OODENAARDE BELGIDM FAB 2 ASIC

CMOS M2 FAT 07/01/93 0.50 6 5,000 136,900 12,9

P0Ly2

I g Production Begins! 1994

S FtJJITSD NEWTON AYCLIFFE ENGLAND PHASE 3 16Mb DRAM CMOS

g-

I

Dataquest (October 1990

/ / 0.60 a 30,000 1,460,100

DataQuest

Dataquest Research and Sales Offices:

Dataquest Incorporated

1290 Rldder Park Drive

San Jose, California 95131-2398

Phone: 01 (408) 437-8000

Telex: 171973

Fax: 01 (408) 437-0292

Technology Products Group

Phone: (800) 624-3280

Dataquest Incorporated

Ledgeway/Dataquest

The Corporate Center

550 Cochituate Road

Framingham, MA 01701

Phone: 01 (508) 370-5555

Fax: 01 (508) 370-6262

Dataquest Incorporated

Invitational Computer Conferences Division

3151 Airway Avenue, C-2

Costa Mesa, California 92626

Phone: 01 (714) 957-0171

Fax: 01 (714) 957-0903

Dataquest Australia

Suite 1, Century Plaza

80 Berry Street

North Sydney, NSW 2060

Australia

Phone: 61 (2) 959-4544

Fax: 61 (2) 929-0635

Dataquest Europe Limited

Roussel House, Broadwater Park

Denham, Uxbridge, Middx UB9 5HP

England

Phone: 44 (895) 835050

Fax: 44 (895) 835260/1

Dataquest Europe SA

Tour Gallieni 2

36, avenue du General-de-Gaulle

93175 Bagnolet Cedex

France

Phone: 33 (D 48 97 31 00

Telex: 233 263

Fax: 33 (1) 48 97 34 00

Dataquest Germany

In der Schneithohl 17

6242 Kronbeig 2

Germany

Phone: 49 6l73/6l685

Fax: 49 6173/67901

Dataquest Hong Kong

Km. 401. Connaught Comm. Bldg.

185 Wanchai Rd.

Wanchai, Hong Kong

Phone: (852) 8387336

Fax: (852) 5722375

Dataquest Japan Limited

Shinkawa Sanko Building

1-3-17 Shinkawa, Chuo-ku

Tokyo, 104

Japan

Phone: 81 (3) 5566-0411

Fax: 81 (3) 5566-0425

Dataquest Korea

Daeheung Bldg. 1105

648-23 Yeoksam-dong

Kangnam-gu

Seoul, Korea 135

Phone: 82 (2) 556-4166

Fax: 82 (2) 552-2661

Dataquest Singapore

4012 Ang Mo Kio Industrial Park 1

Ave 10, #03-10 to #03-12

Singapore 2056

Phone: 65 4597181

Telex: 38257

Fax: 65 4563129

Dataquest Taiwan

Room 801/8th Floor

Ever Spring Building

147, Sec. 2, Chien Kuo N. Rd.

Taipei, Taiwan R.O.C. 104

Phone: 886 (2) 501-7960

886 (2) 501-5592

Fax: 886 (2) 505-4265

(

1 European Plant Locations

The following list gives plant locations for all major semiconductor manufacturing operations in Western Europe.

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

ESIS Volume III © 1989 Dataquest Incorporated March 1-1

0003512

1 European Plant Locations

(Page intentionally left blank)

1-2 © 1988 Dataquest Incorporated March ESIS Volume m

0003512

1 European Plant Locations

ESIS Volume ffl

0003512

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11

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InnoB

I n t e l

Intecnationai Rectifier

International Rectifier

Iskra

LSI Logic

LSI Logic

HEDL

HEDL

MatiTB-RarriB

Coed Rheydn

Hewpoct

Tel Avlw

Ox ted

Turin

Trbovlje

Braunschweig

Sldcup

Lincoln

Wembley

Nantes

Micro Circuit Bng^jLMWTing Tewtteebury

Microelectronic ft-^l^n Marin

Micronas Inc.

Hietec

Bapoo

Oudenaarde

Mistral

Mitel

Motorola ftatorola

Motorola

NEC

NBC

National Semiconductor

Sermoneta

Newport

Toulouse

Schatibogen

East KUbrldtt

Livln9Ston

Ballivor

Furstenfeldbruck

Greenock

National Semicoriductor

National Senicotiductar

Newmarket Hiccoayatefis

Phillpa

Philipa

Midgnl Haemek

Kewmacliet

Eindhos^en

NiJRHigan

Phillpa

Phillpa IFaaelac)

Philip* (Valvo)

Phillpa Co^>onanta

Phillpa HlcrOHBVe

Stadskanaal

Zurich

Hamburg

Stockport

Caen

Wales wales

Israel

England

Italy

Jugoslavia

West Germany

England

England

England

France

England

«0S LSI, Micro

MOS ISl, Micro

MOS LSI

D i s c r e t e s

D i s c r e t e s

BPD, D i s c r e t e s

MOS LSI, Custom, SeaicuEtorn

BiOIOS, Custom, Seinicustorn

D i s c r e t e s , MOS LSI, Microwave

D i s c r e t e s , MOS LSI

MOS LSI, L i n e a r , RPO

MOS LSI

Switlecland

Finland

Belgium

Italy

Custom I^I

Custom MOS LSI

Custom MOS, BiCMOS

D i s c r e t e s

Wales

France

VTest Gernsiq;

S c o t l a n d

Custom LSI

BPD, D i s c r e t e s ,

L i n e a r

Standard L o g i c ,

Semiciffitpn

MOS LSI

S c o t l a n d

I r e l a n d

Heat Germany

S c o t l a n d

I s r a e l

England

H05 LSI

HOE LSI

BPD, L i n e a r , MOS LSI

BPD, L i n e a r . MOS LSI

MOS LSI

Gate \ r r a y

N e t h e r l a n d s

N e t h e r l a n d a

N e t h e r l a n d s

S w i t z e r l a n d

West Germany

Q i g l a n d

F r a n c e

BPD, D i s , L i n e a r , HOS LSI, Opto

8P0, D i s , L i n e a r , MOS LSI

D i s c r e t e s , Opto

MOS LSI, L i n e a r , Custom

BPD, D i s c r e t e s , O p t o , MOS LSI

D i s c r e t e s

BPD, D i s , L i n , MOS L S I , O p t o , GaAs

Maoitfjtcturln

Fab T e a t A

1 European Plant Locations

ESIS Volume III

0003512

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Teiefunken Electronic

Telefunken Electronic

Texas Instrumenta

Texas Inatrumanta

Texas Inatruntents

Tftxas Inatrunenta

Texas Instrunenta

Texas Instrunents

Texat

Toahib* <M)H

Unitrode

Swanaea

C a s c a l a

Zurich

Braunau

H e i l b r o n n

Vbcklabruqh

Bedford

F r a i s l n q

H o c e i r a

R l s t l

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Nice

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Ennia

Vaiaala

Heatcode

Httlalnkl

Qilppenham

Wolf son N i c r o a l « Q t | c b n i c a Edinburgh

Wales Discretes, m s LSI

Portugal Discretes

Switzerland Discretes

Austria Discretes, Opto

West Germany BPD, Dis, Linear, »03 U I , Opto

Austria Discretes, Opto

England Discretes, MOS I£I, Senicuatom

West Germany BPD, Linear, HOS LSI

Portugal BPD, Linear

Italy Discretes, HOS LSI

France Custom LSI, HOS LSI

Italy Production starts 1992

Prance Discretes

West Germany HOS LSI

Ireland Discretes

Finland HOS LSI, CMOS Standard Circuits

England Discretes

Scotland Semicuatom

Wwiutaotwrtw) A c t

S o u r c e : Da

Ma

European Semiconductor

Design Locations

Dataquest

Semiconductors Europe

>

European Semiconductor

Design Locations

I

I

Semiconductors Europe

Source:

Dataquest

Published by Dataquest Eurcpe Limited

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

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

~ — — ^ -

© 1991 Dataquest Europe Limited

OctobCT 1991

0009926

i

>

Table of Contents

INTRODUCTION

DEFINITIONS

Design Center

Design Service

Independent Design Service Locations

Page

List of Tables

Table P i ^

1 European Semiconductor Design Locations ... 3

2 European Standard Product Design

Locations 10

3 European Custom ASIC Design Locations.... 12

4 European Cell-Based ASIC Design

I

I ill

European Semiconductor Design Locations

i

©1991 Dataqnest Europe Limited October—Reproduction Profaibited i

European Semiconductor Design

Locations

Introduction

Currendy 258 semiconductor design locations are established or under development in Western

Europe. This is a small decrease over the number of locations in 1990, when there were 264 design locations. This booklet lists the semiconductor design locations in Tables 1 to 6, and identifies the locations on the basis of the products designed there. development of design tools is such that some design centers are not located with the semiconductor manufacturer, and may be with the larger user of semiconductor products. Design centers will have schematic capture, simulation and layout software, and normally have the software for checking the manufacturability of the product in the design center.

Definitions

The design locations are divided into merchant or captive locations. Merchant locations are those which design semiconductors for sale to any company. Captive locations are those which design semiconductors for use by the parent company only, and will not be re-sold as semiconductor products to another company.

The design services offered by these locations are categorized as:

• Category A: Design Center

• Category B: Design Service

• Category C: Independent

The products designed by these locations are categorized as:

• Category 1: Standard Products

• Category 2: Custom ASIC

• Category 3: Cell-Based ASIC

• Category 4: Gate Array ASIC

• Category 5: Discrete or Optoelectronic

D e s i g n Center

A design center has all the hardware and software design tools required, in addition to the engineering resources needed to design standard products and ASICs, Design centers are normally the domain of semiconductor manufacturers, but tJie

D e s i g n Service

A design service location has the hardware and software required to take a design from the initial concept to functional simulation. This site normally designs ASICs only, and is usually a workstation and applications engineer providing design support. The final layout of the device is performed by the semiconductor manufacmrer at his main design center. The semiconductor manufacturer usually performs the post-layout simulation, but he can often provide the postlayout data to allow the engineer to perform postlayout simulation at his own site.

Many design service locations are owned by the semiconductor vendors, and they rent w^orkstation time to their customers. However, some of the larger OEMs have invested in their own facilities for internal design groups.

I n d e p e n d e n t D e s i g n Service Locations

An i n d e p e n d e n t design service location is equipped with all the hardware and software required to take a design from the initial concept to functional simulation. The final layout of the device is normally performed by the semiconductor manufacturer, but often the independent centers will have the layout and manufacturability software themselves. The independent locations normally design ASIC products only. These centers are third-party locations, and are not tied to a single semiconductor vendor. Independent centers usually have similar facilities to design service locations, but can provide additional system expertise in product and circuit board design, which may not be available at the semiconductor vendor's site.

European Semiconductor Design Locations

Standard Products

Standard products are those which are sold to more than one customer by the semiconductor manufacturer. Standard products are normally only designed in major design centers, and these centers are o w n e d by the semiconductor manufacturer.

Gate Array ASIC

Gate array ASICs are devices which are customized using the final layers of interconnect.

Base wafers with embedded functions such as static random access memory are included in this category. Gate array ASICs are sold to a single user only. Products sold to more than one user are standard products.

Custom ASIC

Custom ASICs are products which are manufactured using a full set of masks, and require manual placement and routing of the cells during design. Custom ASICs are sold to a single user only. Products sold to more than one user are standard products.

Discrete o r O p t o e l e c t r o n i c Products

Discrete products are devices which are unit building blocks and perform a fundamental semiconductor function. Optoelectronic products are semiconductor products in which photons induce the flow of electrons, or vice versa.

CeU-Based ASIC

Cell-based ASICs are devices which are manufactured using a single set of masks, and use automatic cell placement and automatic cell routing.

Cell-based ASICs are sold to a single user only.

Products sold to more than one user are standard products.

i

I

©1991 Dataquest Europe Limited October—Reproduction Prohibited

i

European Semiconductor Design Locations

C o m p a n y

ABB

ABB

ABB

ABB

Alcatel Norkrets

Analog Devices

Analog Devices

Analog Devices

Ansaldo

Anzac

Ascom—Favag

ATAC Diffusion

AT&T

AT&T

AT&T

Auris

Austria Mikro Systeme

Austria Mikro Systeme

Austria Mikro Systeme

Britcomp Sales

British Aerospace

British Telecom

Bull SA

Burr-Brown

Bytech

California Devices

Cetehor

Compugraph

Dectrosuisse

Dectrosuisse

Denyer Walmley Micro

Dialog

Dolphin Integration

DSP Group

Electronique Lyonnaise

Elgaplex

Elgaplex

EM Microelectronics

Enatechnic

Ericsson Components

Euridice

European Silicon Structures

European Silicon Structures

European Silicon Structures

Table 1

European Semiconductor Design Locations—All Center?

Location

Baden

Guildford

Paris

Stockholm

Oslo

Cork

Limerick

Newbury

Genoa

Slough

Bevais

Sevres

Bracknell

Madrid

Munich

Grenoble

Camberley

Dresden

Graz

Leatherhead

Bristol

Martlesham

Clayes-sous-Bois

Livingstone

Slough

Paris

Besanfon

Trappes

Neuchatel

Zurich

Loanhead

Swindon

Grenoble

Givat Shmuel

Lyon

Waldshut

Wettringen

Marin

Hamburg

Kista

NA

Bracknell

's-Hertogenbosh

Milan

France

France

France

Switzerland

Switzerland

Scotland

England

France

Israel

France

Germany

Switzerland

Switzerland

Germany

Sweden

Belgium

England

Netherlands

Italy

England

Spain

Germany

France

England

Germany

Austria

England

England

England

France

Scotland

England

Country Code* 1

Germany M

England

France

Sweden

M

M

M

Norway

Eire

Eire

England

Italy

England

Switzerland

France

M

/

/

/

M • •

M

M

M

M

M

M

/

M

M

M

M

M

M

M

M

M

C

C

C

C

M

M

M

/

M

/

M • •

M

M /

M

M

M

M

M • •

M

M

M

M

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

4 5

/

/

/

/

/

/

/

(Continued)

©1991 Dataquest Europe Limited October—Reproduction Prohibited

European Semiconductor Design Locations

C o m p a n y

European Silicon Structures

Europ>ean Silicon Structures

Eurosil

Fujitsu

Fujitsu

Fujitsu

Fujitsu

GEC Marconi

GEC Plessey Semiconduaors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

Giltspur Micro

Goldstar

Gothic Crellon

Harris Semiconduaor

Harris Semiconductor

Harris Semiconduaor

Harris Semiconduaor

Harris Semiconduaor

Harris Semiconduaor

Hitachi

HMT

Honeywell

Hughes

Inmos

Inmos

Intel

Intel

International Rectifier

ITT Intermetall

ITT (BTM)

ITT (FACE)

ITT (ITTA)

ITT (SESA)

ITT (SRT) i r r (SRT)

Logical Integration

LSI Logic

LSI Logic

Table 1 (Continued)

European Semiconductor Design Locations—All Centers

Location

Munich

Paris

Eching

Frankfurt

Maidenhead

Paris

West Gorton

Chelmsford

Brussels

Lincoln

C o u n t r y

Germany

France

Germany

Germany

England

France

England

Milan

Munich

Oldham

Paris

Swindon

Wembley

Newbury

Dublin

Reading

Brussels

Camberley

Hamburg

Milan

Munich

England

Belgium

England

Italy

Germany

England

France

England

England

England

Eire

England

Belgium

England

Germany

Paris

Maidenhead

Brugg

Bracknell

Glenrothes

Bristol

Italy

Germany

France

England

Switzerland

England

Newport

Haifa

Paris

Scodand

England

Wales

Israel

France

Borgaro Torinese Italy

Freiburg Germany

Antwerp

Solamo

Belgium

Italy

Austria

Vienna

Madrid

Oslo

Zurich

Spain

Norway

Switzerland

England

Thame

Agrate

Biel

Italy

Switzerland

C o d e '

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

C

M

M

M

M

M

M

M

M

C

c c

M

c c c

1

/

/

2

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

3

/

/

/

/

/

/

/

4

/

/

5 A B C

• •

• •

• •

• /

• •

(Continued)

©1991 Dataquest Europe Limited October—Repnxluction Prohibited

European Semiconductor Design Locations

Company

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

Lucas

Macro Marketing

Mastair

Matra-MHS

Matra-MHS

Matra-MHS

Matra-MHS

Matra-MHS

Matra-MHS

MBB

MCE

Merlin Gerin

Micronas

Mietec

Migration Technology

Mikron

Missil

Mistral

Mitel

Mitsubishi

Morari

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

National Semiconduaor

National Semiconductor

National Semiconductor

National Semiconduaor

Table 1 (Continued)

; European Semiconductor Design Ijocations—All Centers

Location

Boulogne

Bracknell

Dflsseldorf

Livingstone

Munich

Oslo

Oss

Stuttgart

Tel Aviv

Sutton Coldfield

Slough

NA

Bracknell

Milan

Munich

Nantes

Paris

Stockholm

Stuttgart

Tewksbury

Grenoble

Espoo

Brussels

Pincheim

Munich

Paris

Cotmtry Code* 1

France

M

England

Germany

Scodand

Germany

M

M

M

M

Norway

Netherlands

Germany

Israel

England

England

France

England

Italy

Germany

France

France

Sweden

Germany

England

France

Finland

Belgium

Germany

Germany

France

M

M

M

M

C

M

M

M

M

M

M

M

M

C

M

C

M

M

M

M

M

Sermoneta

Caldicot

Ratingen

Montpelier

Aylesbury

East Kilbride

Geneva

Haifa

Milan

Munich

Paris

Stockholm

Toulouse

Eindhoven

Greenock

Milan

Munich

Paris

Italy

Wales

Germany

France

England

Scodand

Switzerland

Israel

Italy

Germany

France

Sweden

France

Netherlands

Scotland

Italy

Germany

France

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

C

M

M

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

©1991 Dataquest Europe Limited October—Reproduction Prohibited

(Continued)

B

/

/

/

/

European Semiconductor Design Locations

C o m p a n y

National Semiconductor

National Semiconduaor

National Semiconduaor

NCR

NEC

NEC

NEC

NEC

NEC

NEC

NEC

NEC

Newmarket Micro

Newtek

Nordic VLSI

Norsk Data

Oki

Olivetti

Panasonic (Matsushita)

Panasonic (Matsushita)

PDT-Pynenburg

Philips

Philips

Philips

Philips—Fasalec

Philips (Mullard)

Philips (RTC)

PhUips (RTC)

Philips (Valvo)

Quarndorn

Qudos

Racal Microelectronics

Racal Redac

Racal Redac

Rapid Silicon

Robert Bosch

S2PI

SAAB

Sagem

SDM

Seiko-Epson

Seiko-Epson

Semiconductores

Semikron

Table 1 (Continued)

European Semiconductor Design Locations—All Centers

Eindhoven

Milan

Stockholm

Zurich

Mitcham

Caen

Paris

Hamburg

Derby

Cambridge

Reading

Munich

Tewksbury

Location

Stockholm

Swindon

Tel Aviv

Maidenhead

Diisseldorf

Eindhoven

Milan

Milton Keynes

Munich

Paris

Stockholm

Stuttgan

Newmarket

Bordeaux

Trondheim

Oslo

Neuss

Ivrea

Bracknell

Grassbrunn

Vught

Reading

Reutlingen

Palaiseau

Trollattan

Paris

NA

Munich

Milton Keynes

NA

Niimbuig

England

England

Germany

England

England

Germany

France

Sweden

France

Belgium

Germany

England

Spain

Germany

Coiuitry

Sweden

Norway

Germany

Italy

England

Germany

Netherlands

Netherlands

Italy

Sweden

Switzerland

England

France

France

Germany

England

England

Israel

England

Germany

Germany

Germany

England

Germany

France

Germany

Germany

England

France

Norway

Code*

M

M

M

M

M

M

M

M

M

M

M

M

M

C

M

M

M

M

M

M

M

M

M

M

C

M

C

M

M

M

/

/

1

M

M

C

M

M

C

M

M

M

M

M

M

M

M

/

2

/

/

/

/

/

3

/

/

/

/

/

/

/

/

/

4 5

A

/ •

/

/

/

/ •

/

/

/

B

/

C

(Continued)

©1991 Dataquest Europe Limited October—Reproduction Prohibited

European Semiconductor Design Locations

Table 1 (Continued)

European Semiconductor Design Locations-^All Centers

Company

Semitron

SES

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson-IST

SGS-Thomson-IST

SGS-Thomson-IST

SGS-Thomson-IST

SGS-Thomson-IST

Sharp

SiCon

Siemens

Siemens

Siemens

Siemens

Siemens

Siemens

Siemens

Sierra Semiconductor

Sierra Semiconductor

Sierra Semiconductor

Sigrid

Silicon and Software Systems

Silicon Microsystems

Siliconix

Smartech Oy

Sorep

Sorep

Sorep

STC (Stantel)

STC (STL)

Swindon Silicon Systems

Symbionics

Sysraic

System Electronic Vertriebs

Systems Sud

Tadiran

Tektronix

Telefunken

Telic Alcatel

C

M

M

M

M

M

M

M

M

C

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

Eire

England

Wales

Finland

France

France

France

England

England

England

England

Germany

Italy

Germany

Germany

Austria

Switzerland

Netherlands

Italy

Germany

France

England

Germany

Italy

Italy

Italy

France

England

France

Italy

Germany

Spain

France

Sweden

Germany

Sweden

Germany

France

Germany

France

Israel

England

Germany

France

Location

Cricklade

Nordlingen

Agrate

Castelleto

Catania

Grenoble

Marlow

Rennes

Agrate

Grafing

Madrid

Paris

Stockholm

Hamburg

Linkoping

DOsseldorf

Hannover

Milan

Munich

Stuttgart

Villach

Zurich

's-Hertogenbosh

Milan

Munich

Toulon

Dublin

Malmesbury

Swansea

Tamjjere

Grenoble

Les Ulis

Rennes

Sidcup

Harlow

Swindon

Cambridge

Aix-en^Provence

Braunschweig

Toulouse

NA

Marlow

Eching

Strasbourg

1

/

/

/

/

2

/

/

/

/

/

/

/

/

/

/

/

/

3

/

/

/

/

/

B

C

/

/

^

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

/

• /

/

/

/

(Continued)

/

/

/

/

/

©1991 Dataquest Europe Limited October—^Reproduction Prohibited

European Semiconductor Design Locations

Table 1 (Continued)

European Semiconductor Design LocationsAll Centers

Company

Teimos

Texas Instmmenis

Texas Instruments

Texas Instruments

Texas Instruments

Texas Instruments

Texet

Location

Munich

Bedford

Freisiag

Hannover

Milan

Villeneuve-Loubet France

Nice France

Thomson CSF

Thomson CSF

Thomson CSF

Thomson CSF

Thomson CSF

Thomson CSF

Thomson CSF

Thomson CSF—-Cetia

Thomson Electronic Components Basingstoke

TMS

TMS

Toshiba

Toshiba

Aix-en-Provence

Grenoble

Milan

Munich

Rousset

Tours

Velizy

Toulon

Corbevoie

Saint-Egrdve

Camberley

DOsseldorf

Country

Germany

England

Germany

Germany

Italy

France

France

Italy

Germany

France

France

France

France

England

France

France

England

Germany

Toshiba

Toshiba

Toshiba

Toshiba

Toshiba

TRW

Milan

Munich

Paris

Stockholm

Stuttgart

Bordeaux-Lac

Italy

Germany

France

Sweden

Germany

France

Ua-Alcatel

Vaisala

VDI-Zentrum

VLSI Technology

VLSI Technology

VLSI Technology

VLSI Technology

Wolfeon Microelectronics

Les Ulis

Helsinki

Berlin

Milan

Milton Keynes

Munich

Paris

Edinburgh

France

Finland

Germany

Italy

England

Germany

France

Scotland

Zeltron

Zymos

Zymos

Zymos

Campformido

Offenbach

Stockholm

Welwyn

Garden City

Italy

Germany

Sweden

England

• Merchant (M) or Captive ( O

NA - Not Available

Source: Oataquest (October 1991)

M

M

M

M

M

M

M

M

M

M

M

M

M

Code*

M

M

M

M

M

/

1

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

2

/

3

/

/

/

4

/

/

5

A

/

/

B

C

• t

©1991 Dataquest Europe Limited October—Reproduction Prohibited

European Semiconductor D e s i ^ Locations

Table 2

Eiu-opean Standard Product Design Location

Design Design Independent

Center Service Center Company

Analog Devices

AT&T

Austria Mikro Systeme

Dolphin Integration

DSP Group

EM Microelectronics

Ericsson Components

Eurosil

GEC Plessey Semiconductors

GEC Plessey Semiconduaors

GEC Plessey Semiconduaors

Goldstar

HMT

Inmos

Inmos

Intel

Intel

IVIatra-MHS

MBB

MCE

Micronas

Mitsubishi

Motorola

Motorola

Motorola

Motorola

National Semiconductor

Nordic VLSI

Panasonic (Matsushita)

Philips

Philips—^Fasalec

PhUips (RTC)

Philips CValvo)

Robert Bosch

SGS-Thomson

Siemens

Siemens

Siemens

Sierra Semiconductor

Silicon and Software Systems

Location

Cork

Bracknell

Graz

Grenoble

Givat Shmuel

Marin

Kista

Eching

Lincoln

Oldham

Swindon

Dublin

Brugg

Bristol

Newp)ort

Paris

Haifa

Nantes

Stuttgart

Tewksbury

Espoo

Ratingen

Toulouse

Haifa

East Kilbride

Geneva

Greenock

Trondheim

Grassbrunn

Eindhoven

Zurich

Caen

Hamburg

Reutlingen

Marlow

Villach

DOsseldorf

Munich

's-Hertogenbosh

Dublin

Country

Eire

England

Austria

France

Israel

Switzerland

Sweden

Germany

England

England

England

Eire

Switzerland

England

Wales

France

Israel

France

Germany

England

Finland

Germany

France

Israel

Scotland

Switzerland

Scotiand

Norway

Germany

Netherlands

Switzerland

France

Germany

Germany

England

Austria

Germany

Germany

Netherlands

Eire

C

M

M

M

M

M

M

M

M

C

M

M

M

M

C

M

M

M

M

M

C

M

M

M

M

M

M

M

M

M

M

M

M

Code*

M

M

M

M

M

M

M

/

/

/

/

/

(Continued)

©1991 Dataquest Europe Limited October—Reproduction Prohibited

10

C o m p a n y

Siliconix

Telefunken

Texas Instruments

Texas Instruments

Thomson CSF

Thomson CSF

Thomson CSF

Thomson CSF—Cetia

TMS

Vaisala

VLSI Technology

Wolfson Microelearonics

Merchant (M) or Captive (C)

Source: Dauquest (October 1991)

European Semiconductor Design Locations

Table 2 (Continued)

European Standard Product Design Location

Location

Swansea

Eching

Bedford

Villeneu ve-Lou bet

Aix-en-Provence

Grenoble

Rousset

Toulon

Saint Egrdve

Helsinki

Milton Keynes

Edinburgh

Country

Wales

Germany

England

France

France

France

France

France

France

Finland

England

Scotland

M

M

M

M

M

M

M

Code*

M

M

M

M

M

Design

Center

/

Design

Service

Independent

Center

/

/

/

/

i

©1991 Dataquest Europe limited October—Reproduction Prohibited

i

European Semiconductor Design Locations

11

Table 3

European Ciistom ASIC Design Locations

Company

ABB

ABB

ABB

ABB

Analog Devices

Analog Devices

Analog Devices

Ascom—^Favag

AT&T

AT&T

AT&T

Auris

Austria Mikro Systeme

Austria Mikro Systeme

Austria Mikro Systeme

British Telecom

Bull SA

Compugraph

Dectrosuisse

Dectrosuisse

Denyer Walmley Micro

Dialog

Dolphin Integration

EM Microelectronics

Ericsson Components

Eurosil

Fujitsu

Fujitsu

Fujitsu

GEO Plessey Semiconductors

GEC Plessey Semiconduaors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

HMT

Hughes

ITT Intermetall

ITT CBTM) m * (FACE)

ITT aTTA)

Location

Baden

Guildford

Paris

Stockholm

Cork

Limerick

Newbury

Bevais

Bracknell

Madrid

Munich

Grenoble

Camberley

Dresden

Graz

Martlesham

Clayes-sous-Bois

Trapf)es

NeuchStel

Zurich

Loanhead

Swindon

Grenoble

Marin

Kista

Eching

Maidenhead

Paris

West Gorton

Brussels

Lincoln

Oldham

Paris

Swindon

Brugg

Glenrothes

Freiburg

Antwerp

Solamo

Vienna

France

France

Switzerland

Switzerland

Scotland

England

France

Switzerland

Sweden

Germany

England

France

England

Belgium

England

England

France

England

Switzerland

Scotland

Germany

Belgium

Italy

Austria

Country

Germany

England

France

Sweden

Eire

Eire

England

Switzerland

England

Spain

Germany

France

England

Germany

Austria

England

C

C

M

M

M

M

M

M

M

M

M

M

M

M

Code*

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

C

C

c

Design I>esign Independent

Center Service Center

(Continued)

©1991 Dataquest Europe Limited October—^Reproduction Prohibited

12

Company

ITT (SESA)

ITT (SRT)

ITT (SRT)

Logical Integration

Lucas

Macro Marketing

Matra-MHS

Matra-iVIHS

MBB

MCE

Micronas

Mietec

Missil

Mitel

Morari

Motorola

Motorola

Motorola

National Semiconductor

National SemiconduCTor

National Semiconduaor

Newmarket Micro

Olivetti

Panasonic (Matsushita)

Panasonic (Matsushita)

PDT-Pynenburg

Philips

Philips—^Fasalec

Philips (RTC)

Philips (Valvo)

Robert Bosch

SAAB

SDM

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson-IST

Coimtry

Spain

Norway

Switzerland

England

England

England

England

France

Germany

England

Finland

Belgium

France

Wales

France

Scotland

Switzerland

France

Scotland

Germany

England

England

Italy

England

Germany

Netherlands

Netherlands

Switzerland

France

Germany

Germany

Sweden

Belgium

Italy

Italy

Italy

France

England

France

Spain

Hamburg

Reutlingen

TroUattan

NA

Agrate

Castelleto

Catania

Grenoble

Marlow

Rennes

Madrid

East Kilbride

Geneva

Toulouse

Greenock

Munich

Swindon

Newmarket

Ivrea

Bracknell

Grassbrunn

Vught

Eindhoven

Zurich

Caen

Location

Madrid

Oslo

Zurich

Thame

Sutton Coldfield

Slough

Bracknell

Nantes

Stuttgart

Tewksbury

Espoo

Brussels

Paris

Caldicot

Montpelier

M

M

M

M

M

M

C

M

M

M

M

M

M

M

C

M

C

M

M

M

M

M

M

M

M

C

M

M

M

M

C

M

Code*

C

C

C

M

C

M

M

M

European Semiconductor Design Locations

Table 3 (Continued)

European Custom ASIC Design Locations

Design

Center

Design

Service

Independent

Center

/

/

/

/

(Continued)

I

I i

©1991 Dataquest Europe limited October—Reproduction Prohibited

European Semiconductor Design Locations

13

Table 3 (Continued)

European Custom ASIC Design Locations

Design

Center Company

Siemens

Siemens

Siemens

Sierra Semiconduaor

Sierra Semiconduaor

Sierra Semiconductor

Sigrid

Silicon and Software Systems

Silicon Microsystems

Siliconix

Sorep

Sorep

Sorep

STC (Stantel)

STC (STL)

Swindon Silicon Systems

Symbionics

System Electronic Vertriebs

Telefunken

Telic Alcatel

Telmos

Texas Instruments

Texas Instruments

Texas Instruments

Texas Instruments

Thomson CSF

Thomson CSF

Thomson CSF—Cetia

TMS

Toshiba

UCI-Alcatel

VLSI Technology

VLSI Technology

VLSI Technology

Wolfson Microelectronics

Zeltron

Merchaiu OD or CapUve (C)

NA - Not Available

Source: E>aCaquest (October 1991)

Location

Dasseldorf

Munich

Villach

's-Hertogenbosh

Milan

Munich

Toulon

Dublin

Malmesbury

Swansea

Grenoble

Les Ulis

Rennes

Sidcup

Harlow

Swindon

Cambridge

Braunschweig

Eching

Strasbourg

Munich

Bedford

Freising

Hannover

Villeneuve-Loubet

Grenoble

Rousset

Toulon

Saint Egrdve

Diisseldorf

Les Ulis

Milton Keynes

Munich

Paris

Edinburgh

Campformido

France

Germany

England

Germany

Germany

France

France

France

France

France

Germany

France

England

Germany

France

Scotland

Italy

Country

Germany

Germany

Austria

Netherlands

Italy

Germany

France

Eire

England

Wales

France

France

France

England

England

England

England

Germany

Germany

M

M

M

C

M

M

M

M

M

M

M

C

M

Code'

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

/

/

/

/

/

/

/

/

Design

Service

/

Independent

Center

• y

©1991 Dataquest Europe Limited October—Reproduction Prohibited

14

Company

ABB

ABB

Alcatel Norkrets

Analog Devices

Analog Devices

Analog Devices

Anzac

ATAC Diffusion

AT&T

AT&T

AT&T

Auris

Austria Mikro Systeme

Austria Mikro Systeme

Austria Mikro Systeme

Britcomp Sales

British Aerospace

British Telecom

Bull SA

Bytech

California Devices

Cetehor

Compugraph

Dectrosuisse

Dectrosuisse

Denyer Walmley Micro

Dialog

Dolphin Integration

Electronique Lyonnaise

Elgaplex

Sgaplex

EM Microelectronics

Enatechnic

Ericsson Components

Euridice

European Silicon Structures

European Silicon Structures

European Silicon Structures

Eurojjean Silicon Structures

Eurofjean Silicon Structures

Fujitsu

Fujitsu

Fujitsu

European Semiconductor Design Locations

Table 4

European Cell-Based ASIC Design Locations

Location

Guildford

Paris

Oslo

Cork

Limerick

Newbury

Slough

Sevres

Bracknell

Madrid

Munich

Grenoble

Camberley

Dresden

Graz

Leatherhead

Bristol

Martlesham

Clayes-sous-Bois

Slough

Paris

Besanfon

Trapfjes

Neuchatel

Zurich

Loanhead

Swindon

Grenoble

Lyon

Waldshut

Wettringen

Marin

Hamburg

Kista

NA

Bracknell

's-Hertogenbosh

Milan

Munich

Paris

Frankfurt

Maidenhead

Paris

Country

England

France

Norway

Eire

Eire

England

England

France

England

Spain

Germany

France

England

Germany

Austria

England

England

England

France

England

France

France

France

Switzerland

Switzerland

Scotland

England

France

France

Germany

Switzerland

Switzerland

Germany

Sweden

Belgium

England

Netherlands

Italy

Germany

France

Germany

England

France

Code*

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

C

C

C

M

Design Design Independent

Center Service Center

/

/

/

/

/

(Continued)

©1991 Dataquest Europe Liinited Octolser—Reproduction Prohibited

European Semiconductor Design Locations

Table 4 (Continued)

European Cell-Based ASIC Design Locations

C o m p a n y

Fujitsu

GEC Marconi

GEO Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconductors

GEC Plessey Semiconduaors

GEC Plessey Semiconduaors

Giltspur Micro

Gothic Crellon

Harris Semiconductor

Harris Semiconductor

Harris Semiconduaor

Harris Semiconduaor

Harris Semiconduaor

Harris Semiconduaor

Hitachi

Honeywell

Hughes

Intel

Intel

Logical Integration

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

Lucas

Macro Marketing

Mastair

Matra-MHS

MBB

MCE

Meriin Gerin

Microtias

Location

West Gorton

Chelmsford

Brussels

Lincoln

C o u n t r y

MUan

Munich

Oldham

Paris

Swindon

Wembley

Newbury

Reading

Brussels

Camberley

Hamburg

Milan

Munich

Paris

Maidenhead

Bracknell

Glenrothes

Haifa

Paris

Thame

Agrate

Biel

Boulogne

Bracknell

DOsseldorf

Livingstone

Munich

France

England

Italy

Switzerland

France

England

Germany

Scotland

Germany

Oslo

Oss

Stuttgart

Norway

Netherlands

Germany

Tel Aviv

Sutton Coldfield

Israel

England

England Slough

NA

Bracknell

France

England

Germany

Stuttgart

Tewksbury

Grenoble

Espoo

England

France

Finland

England

England

Belgium

England

Italy

Germany

England

France

England

England

England

England

Belgium

England

Germany

Italy

Germany

France

England

England

Scotland

Israel

M

M

M

M

M

M

M

M

M

M

M

M

M

Code*

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

C

C

M

C

M

M

M

M

M

Design

Center

/

/

/

/

/

/

/

Design

Service

Independent

Center

/

/

15

(Continued)

©1991 Dataquest Europe Limited October—^Reproduction Prohibited

16

Company

Mietec

Migration Technology

Mikron

Missil

Mitsubishi

Morari

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

National Semiconductor

National Semiconductor

National Semiconductor

National Semiconductor

National Semiconductor

National Semiconductor

National Semiconductor

NCR

NEC

NEC

NEC

NEC

NEC

NEC

NEC

NEC

Newmarket Micro

Newtek

Nordic VLSI

Norsk Data

Olivetti

Panasonic (Matsushita)

Panasonic (Matsushita)

PDT-Pynenburg

Philips

Philips

Philips

European Semiconductor Design Locations

Table 4 (Continued)

European Cell-Based ASIC Design Locations

Location

Brussels

Pincheim

Munich

Paris

Ratingen

Montpelier

Aylesbury

East Kilbride

Geneva

Haifa

Milan

Munich

Paris

Stockholm

Toulouse

Eindhoven

Greenock

Milan

Munich

Paris

Stockholm

Swindon

Tel Aviv

Maidenhead

DOsseldorf

Eindhoven

Milan

Milton Keynes

Munich

Paris

Stockholm

Stuttgart

Newmarket

Bordeaux

Trondheim

Oslo

Ivrea

Bracknell

Grassbrunn

Vught

Eindhoven

Milan

Stockholm

France

Netherlands

Scotland

Italy

Germany

France

Sweden

England

Israel

England

Germany

Germany

Germany

England

Country

Belgium

Germany

Germany

France

Germany

France

England

Scotland

Switzerland

Israel

Italy

Germany

France

Sweden

Germany

France

Germany

Germany

England

France

Norway

Norway

Italy

England

Germany

Netherlands

Netherlands

Italy

Sweden

M

M

M

M

M

C

M

M

M

M

M

M

M

M

M

C

M

C

M

M

M

M

Code*

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

Design Design Independent

Center Service Center

/

/

(Continued)

I i

©1991 Dataquest Europe Limited October—Reproduction Prohibited

European Semiconductor Design Locations

Table 4 (Continued)

European Cell-Based ASIC Design Locations

Company

Philips—^Fasalec

Philips (MuUard)

Philips (RTC)

Philips (RTC)

Philips (Valvo)

Quarndom

Qudos

Racal Microelectronics

Racal Redac

Racal Redac

Rapid Silicon

Robert Bosch

SAAB

Sagem

SDM

Seiko-Epson

Seiko-Epson

Semiconduaores

SES

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson-IST

SGS-Thomson-IST

SGS-Thomson-IST

SGS-Thomson-IST

SGS-Thomson-IST

SiCon

Siemens

Siemens

Siemens

Siemens

Siemens

Siemens

Siemens

Sierra Semiconduaor

Sierra Semiconduaor

Sierra Semiconductor

Silicon and Software Systems

Silicon Microsystems

Country

France

Belgium

Germany

England

Spain

Germany

Italy

Italy

Italy

France

England

France

Italy

Germany

Spain

France

Sweden

Switzerland

England

France

France

Germany

England

England

England

Germany

England

England

Germany

Sweden

Sweden

Germany

Germany

Italy

Germany

Germany

Austria

Switzerland

Netherlands

Italy

Germany

Eire

England

Location

Zurich

Mitcham

Caen

Paris

Hamburg

Derby

Cambridge

Reading

Munich

Tewksbury

Reading

Reutlingen

TroUattan

Paris

NA

Munich

Milton Keynes

NA

Nordlingen

Agrate

Castelleto

Catania

Grenoble

Marlow

Rennes

Agrate

Grafing

Madrid

Paris

Stockholm

Linkoping

Dusseldorf

Hannover

Milan

Munich

Stuttgart

Villach

Zurich

's-Hertogenbosh

Milan

Munich

Dublin

Malmesbury

C o d e '

M

M

M

C

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

C

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

/

/

/

/

Design

Center

/

/

/

/

/

/

/

/

/

^

17

Design

Service

Independent

Center

(Continued)

©1991 Dataquest Europe Limited Oaober—^Reproduction Prohibited

18

Company

Smartech Oy

Sorep

Sorep

Sorep

STC (Stantel)

STC (STL)

Swindon Silicon Systems

Symbionics

Sysmic

System Electronic Vertriebs

Systems Sud

Tadiran

Telic Alcatel

Texas Instruments

Texas Instruments

Texas Instruments

Texas Instruments

Thomson CSF

Thomson CSF

Thomson CSF

Thomson CSF—Cetia

TMS

TMS

Toshiba

Toshiba

Toshiba

Toshiba

Toshiba

Toshiba

Toshiba

Ua-Alcatel

A'DI-Zentrum

VLSI Technology

VLSI Technology

VLSI Technology

VLSI Technology

Wolfson Microelectronics

Zeltron

Zymos

Zymos

Zymos

• Merchant (M) or Captive (O

NA - Not Available

Source: Dataquest (October 1991)

European Semiconductor Design Locations

Table 4 (Continued)

European Cell-Based ASIC Design Locations

Design

Center

Country

England

Germany

Germany

Italy

France

Italy

France

France

France

France

England

Germany

Italy

Germany

Finland

France

France

France

England

England

England

England

France

Germany

France

Israel

France

France

Sweden

Germany

France

Germany

Italy

England

Germany

France

Scotland

Italy

Germany

Sweden

England

Location

Tampere

Grenoble

Les Ulis

Rennes

Sidcup

Harlow

Swindon

Cambridge

Aix-en-Provence

Braunschweig

Toulouse

NA

Strasbourg

Bedford

Freising

Hannover

Milan

Grenoble

Milan

Velizy

Toulon

Corbevoie

Saint Egrdve

Camberley

Dusseldorf

Milan

Munich

Paris

Stockholm

Stuttgart

Les Ulis

Berlin

Milan

Milton Keynes

Munich

Paris

Edinburgh

Campformido

Offenbach

Stockholm

Welwyn

Garden City

/

Code*

M

M

M

M

M

C

M

M

M

M

M

M c

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

/

/

Design

Service

Independent

Center

/

/

/

/

©1991 Dataquest Europe Limited October—Reproduction Prohibited

European Semiconductor Design Locations

19

C o m p a n y

Anzac

ATAC Diffusion

AT&T

Auris

Austria Mikro Systeme

Austria Mikro Systeme

Britcomp Sales

British Aerospace

British Telecom

Bull SA

Bytech

California Devices

Compugraph

Dectrosuisse

Dectrosuisse

Denyer Walmley Micro

Dolphin Integration

Electronique Lyonnaise

Elgaplex

Elgaplex

EM Microelectronics

Enatechnic

Ericsson Components

Euridice

European Silicon Structures

European Silicon Structures

Europ)ean Silicon Structures

European Silicon Structures

European Silicon Structures

Eurosil

Fujitsu

GEC Plessey Semiconduaors

GEC Plessey Semiconductors

GEC Plessey Semiconduaors

GEC Plessey Semiconductors

GEC Plessey Semiconduaors

Giltspur Micro

Gothic Crellon

Harris Semiconduaor

Harris Semiconduaor

Table 5

European Gate Array ASIC Design Locations

Design

Center

Bracknell

's-Hertogenbosh

Milan

Munich

Paris

Eching

Frankfurt

Lincoln

Milan

Munich

Oldham

Swindon

Newbury

Reading

Brussels

Camberley

Paris

Trapp>es

Neuchatel

Zurich

Loanhead

Grenoble

Lyon

Waldshut

"Wettringen

Marin

Hamburg

Kista

NA

Location

Slough

Sevres

Bracknell

Grenoble

Dresden

Graz

Leatherhead

Bristol

Martiesham

Clayes-sous-Bois

Slough

Country

England

France

England

France

Germany

Austria

England

England

England

France

England

France

France

Switzerland

Switzerland

Scotland

France

France

Germany

Switzerland

Switzerland

Germany

Sweden

Belgium

England

Netherlands

Italy

Germany

France

Germany

Germany

England

Italy

Germany

England

England

England

England

Belgium

England

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

C

C

C

Code*

M

M

M

M

M

Design

Service

Independent

Center

/

/

/

/

(Continued)

©1991 Dataquest Europe Limited October—Reproduction Prohibited

20

C o m p a n y

Harris Semiconductor

Harris Semiconductor

Harris Semiconductor

Harris Semiconductor

Hitachi

HMT

Honeywell

Logical Integration

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

Lucas

Macro Marketing

Mastair

Matra-MHS

Matra-MHS

Matra-MHS

Matra-MHS

Matra-MHS

MBB

MCE

Microtias

Mietec

Migration Technology

Mikron

Missil

Mitsubishi

Morari

Motorola

Motorola

Motoitjla

Motorola

European Semiconductor Design Locations

Table 5 (Continued)

European Gate Array ASIC Design Locations

Location

Hamburg

Milan

Munich

Paris

Maidenhead

Brugg

Bracknell

Coimtry

Germany

Italy

Germany

France

England

Switzerland

England

England

Italy

Thame

Agrate

Biel

Boulogne

Bracknell

Dusseldorf

Livingstone

Munich

Oslo

Oss

Stuttgart

Switzerland

France

England

Germany

Scotland

Germany

Norway

Netherlands

Germany

Tel Aviv Israel

Sutton Coldfield England

Slough

NA

Bracknell

Milan

Munich

Paris

England

France

England

Italy

Germany

Stockholm

Stuttgart

Tewksbury

France

Sweden

Germany

England

Espoo

Brussels

Pincheim

Munich

Paris

Ratingen

Montpelier

Aylesbury

East Kilbride

Geneva

Finland

Belgium

Germany

Germany

France

Germany

France

England

Scotland

Switzerland

Haifa Israel

M

M

M

M

M

M

M

M

M

M

Code*

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

C

C

M

M

M

M

M

M

M

M

Design D e s ^ n Independent

Center Service Center

(Continued)

i

I

©1991 Dataquest Europe Liinited October—Reproduction Prohibited

C o m p a n y

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

National Semiconductor

National Semiconductor

National Semiconduaor

National Semiconductor

National Semiconductor

National Semiconduaor

NEC

NEC

NEC

NEC

NEC

NEC

NEC

NEC

Newmarket Micro

Newtek

Norsk Data

Oki

Olivetti

PDT-Pynenburg

Philips

Philips

Philips

Philips (MuUard)

Philips (RTC)

Philips (RTC)

Philips (Valvo)

Q u a m d o m

Qudos

Racal Microelectronics

Racal Redac

Racal Redac

Rapid Silicon

Robert Bosch

European Semiconductor Design Locations

21

Table 5 (Continued)

European Gate Array ASIC Design Locations

Design

Center

France

France

Germany

England

England

England

Germany

England

England

Germany

France

Germany

Germany

England

France

Norway

Germany

Italy

Netherlands

Netherlands

Italy

Sweden

England

Country

Italy

Germany

France

Sweden

France

Netherlands

Scotland

Italy

Germany

France

Sweden

Israel

Germany

Germany

Germany

England

Germany

Location

Milan

Munich

Paris

Stockholm

Toulouse

Eindhoven

Greenock

Milan

Munich

Paris

Stockholm

Tel Aviv

Diisseldorf

Eindhoven

Milan

Milton Keynes

Munich

Paris

Stockholm

Stuttgart

Newmarket

Bordeaux

Oslo

Neuss

Ivrea

Vught

Eindhoven

Milan

Stockholm

Mitcham

Caen

Paris

Hamburg

Derby

Cambridge

Reading

Munich

Tewksbury

Reading

Reutlingen

M

M

M

M

M

M

M

M

M

M

M

M

C

M

C

M

M

M

M

M

C

Code*

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

/

/

/

Design

Service

/

Independent

Center

/

/

/

/

/

/

/

/

(Continued)

©1991 Dataquest Eurojje Limited October—^Reproduction Prohibited

•£l

Company

S2PI

SAAB

Sagem

SDM

Seiko-Epson

Seiko-Epson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson-IST

SGS-Thomson-IST

SGS-Thomson-IST

SGS-Thomson-IST

SGS-Thomson-IST

Sharp

SiCon

Siemens

Siemens

Siemens

Siemens

Siemens

Siemens

Siemens

Silicon Microsystems

Smartech Oy

Sorep

Sorep

Sorep

STC (Stantel)

STC (STL)

Swindon Silicon Systems

Sysmic

System Electronic Vertriebs

Systems Sud

Tadiran

Tekoronix

Telic Alcatel

European Semiconductor Design Locations

Table 5 (Continued)

European Gate Array ASIC Design Locations

Design

Center Location

Palaiseau

TroUattan

Paris

NA

Munich

Milton Keynes

Agrate

Castelleto

Catania

Grenoble

Country

France

Sweden

France

Belgium

Germany

England

Italy

Italy

Italy

France

Marlow

Rennes

Agrate

Grafing

Madrid

Paris

Stockholm

England

France

Italy

Germany

Spain

France

Hamburg

Linkoping

Diisseldorf

Hannover

Milan

Munich

Stuttgart

Villach

Zurich

Malmesbury

Sweden

Germany

Sweden

Germany

Germany

Italy

Germany

Germany

Tamjjere

Grenoble

Les Ulis

Rennes

Sidcup

Harlow

Swindon

Aix-en-Provence

Braunschweig

Toulouse

NA

Marlow

Strasbourg

England

France

Austria

Switzerland

England

Finland

France

France

France

England

England

England

France

Germany

France

Israel

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

Code*

M

M

M

M

M

M

M

M

C

M

M

M

M

C

M

M

M

C

/

Design

Service

Independent

Center

/

/

/

(Continued)

©1991 Dataquest Europe Umited October—Reproduction Prohibited

European Semiconductor Design Locations

23

Table 5 (Continued)

European Gate Array ASIC Design Locations

Design

Center

C o m p a n y

Telmos

Location

Munich

Texas Instalments

Texas Instruments

Texas Instruments

Texas Instruments

Thomson CSF

Thomson CSF

Thomson CSF

Thomson CSF

Thomson CSF—Cetia

Thomson Electronic Components

Bedford

Freising

Hannover

Milan

Grenoble

Milan

Munich

Velizy

Toulon

Basingstoke

TMS

Toshiba

Toshiba

Toshiba

Toshiba

Toshiba

Toshiba

Toshiba ua-Alcatel

VDI-Zentrum

VLSI Technology

VLSI Technology

VLSI Technology

VLSI Technology

Wolfson Microelectronics

Zeltron

Meidiani or Captive ( O

NA - Not Available

Source: Dataquest (October 1991)

Saint Egrdve

Camberley

Dtisseldorf

Milan

Munich

Paris

Stockholm

Stuttgan

Les Ulis

Berlin

Milan

Milton Keynes

Munich

Paris

Edinburgh

Campformido

C o u n t r y

Germany

England

Germany

Germany

Italy

France

Italy

Germany

France

France

England

France

England

Germany

Italy

Germany

France

Sweden

Germany

France

Germany

Italy

England

Germany

France

Scotland

Italy

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

Code*

M

M

M

M

M

M

M

M

M

M

M

Design

Service

Independent

Center

/

/

/

/

/

/

/

/

/

/

©1991 Dataquest Europe Limited October—Reproduction Prohibited

24 European Semiconductor Design Locations

Table 6

European Discrete and Optoelectronic Design Locations

Company

ABB

ABB

Ansaldo

British Telecom

Burr-Brown

GEC Plessey Semiconductors

GEC Plessey Semiconductors

Harris Semiconductor

International Rectifier

ITT Intermetall

Mistral

Motorola

Philips

Philips (RTC)

Robert Bosch

Semikron

Semitron

Siemens

Texet

Thomson CSF

Thomson CSF

Thomson CSF

TRW

VDI-Zentrum

• Merchant (M) or Captive (C)

Source: Dataquest (October 1991)

Location

Baden

Stockholm

Genoa

Martlesham

Livingstone

Lincoln

Swindon

Brussels

Borgaro Torinese

Freiburg

Sermoneta

Toulouse

Eindhoven

Caen

Reutlingen

NOmburg

Cricklade

Munich

Nice

Aix-en-Provence

Grenoble

Tours

Bordeaux-Lac

Berlin

Country

Germany

Sweden

Italy

England

Scotland

England

England

Belgium

Italy

Germany

Italy

France

Netherlands

France

Germany

Germany

England

Germany

France

France

France

France

France

Germany

M

M

M

M

C

M

M

M

M

M

M

M

M

M

M

M

M

Code'

M

M

M

C

C

M

M

Design Design Independent

Center Service Center

/

/

/

/

/

/

I

i

©1991 Dataquest Europe Limited October—Reproduction Prohibited

i

Dataquest

n n ^onipan;M>f

The Dun & Bradstreet Corporation

Dataquest Research and Sales Offices:

Dataquest Incorporated

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886 (2) 501-5592

Fax: 886 (2) 505-4265

(WC»»26

i

2 European Design Service Locations

Currently, 264 semiconductor design service locations are established or under development in Western Europe; of these locations, 22 are captive and 242 are merchant The locations can be divided into three categories, which Dataquest identifies as follows:

• Category A: Design Center

- A full design center has all the hardware and software design tools, in addition to engineering resources, necessary to design standard products as well as ASICs.

- Design centers are the domain of semiconductor manufacturers, although the semiconductors produced may be for merchant or captive consumption.

- There are 78 design centers in Europe.

• Category B: Design Service Locations

- A design service location is equipped with workstations capable of performing design, schematic capture, and functional simulation of a device. By far the majority of design service locations are used for designing ASIC gate arrays for cell-based

ICs (CBICs).

- Most design service locations are owned by semiconductor vendors that rent workstation time to customers for a fee; however, some of the larger OEMs have invested in their own facilities for internal design groups (e.g.. Bull, Lucas, MBB, and Olivetti). Essentially, these are captive design service locations.

- There are 147 design service locations in Europe.

• Category C: Independent Design Service Locations

- An independent design service location is equipped with workstations capable of performing design, schematic capture, and functional simulation of a device.

However, the location is owned by a third party independent of semiconductor vendors and is not dedicated to a specific OEM.

- Third-party design services provide training and rent workstation time for ASIC gate array and cell-based IC (CBIC) design. They tend to support several vendors'

ASIC products.

- There are 39 independent design service locations in Europe.

Table 2-1 lists European design service locations for worldwide semiconductor companies.

Each company listing shows the major products designed and type of design performed at each site for both merchant and captive manufacturers.

ESIS Volume III ©1990 Dataquest Incorporated June 2-1

0007242 Reference material—will not be republished

2 European Design Service Locations

Company

ABB

ABB

AMCC

AMCC

AMCC

AMCC

AMCC

AMCC

Analog Devices

Analog Devices

Ansaldo

ATAC Diffusion

AT&T

AT&T

AT&T

Auris

Austria Mikro Systeme

Austria Mikro Systeme

Austria Mikro Systeme

Austria Mikro Systeme

Austria Mikro Systeme

Austria Mikro Systeme

British Telecom

Bull SA

Burr-Brown

Califoniia Devices

Cetehor

Cetia

Compugraph

Cotec

Dectrosuisse

Denyer Walmsley Micro

Dolphin Integration

Electr(»uque Lycsmaise

Ericsson Components

European Silicon Structures

European Silicon Structures

European Silicon Structures

European Silicon Structures

European Silicon Structures

European Silicon Structures

Eurosil

Baden

Stockholm

Basingstoke

Milan

Munich

Orsay

Stockholm

Tel Aviv

Limerick

Newbury

Goioa

Sevres

Bracknell

Madrid

Munich

Grenoble

Graz

Milan

Munich

Paris

Stockholm

Swindon

Martlesham

Clayes-Sous-Bois

Livingstone

Paris

Besancon

Les-Ullis Toulon

Trappes

Bordeaux

Neuchatel

Loanhead

Grenoble

Lyon

Kista

Amsterdam

Bracknell

Gothenbeig

Milan

Munich

Paris

Eching

Table 2-1

European Semiconductor Design Service Locations

Location Country Code*

1

Product

Category

2 3 4 5

Type of

Design

Service

A B C

M

M

M

M

M

M

M

M

C

C

M

M

M

M

M

M

M

C

M

M

M

M

M

R!

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

West Germany

Sweden

England

Italy

West Germany

France

Sweden

Israel

Ireland

England

Italy

France

England

Spain

West Germany

France

Austria

Italy

West Germany

France

Sweden

England

England

France

Scotland

France

France

France

France

France

Switzerland

Scotland

France

France

Sweden

Netherlands

England

Sweden

Italy

West Germany

France

West Germany

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

' X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

(Continued)

X

X

X

X

X

X

X

X

1-2

©1990 Dataquest Incorporated June

Reference material—will not be republished

ESIS Volume Ifl

0007242

2 European Design Service Locations

Table 2-1 (Continued)

Company

Faselec

Favag

Fujitsu

Fujitsu

Fujitsu

Fujitsu

Giltspur Micro

Hands Semiconductor

Hairis Semiconductor

Hanis Semiccmductor

Harris Semiconductor

Harris Semiconductor

Harris Semiconductor

Hitachi

Hitachi

HMT

Honeywell

HonejrweU

Hughes

Hu^es

IBM

roM

IMI

Bvn

IMI

IMI

IMI

IMP

IMP

Inmos

Inmos

Intel

Intel

Intel

International Rectifier

International Rectifier m Semiconductors n r (BTM)

ITT (FACE) n r (ITTA)

rrr (SESA)

m (SRT)

Zurich

Bevaix

Frankfurt

Maidenhead

Paris

West Gorton

Newbury

Brussels

Camberley

Hamburg

Milan

Munich

Paris

Munich

Watford

Brugg

Bracknell

Newh(»ise

Glenrothes

Weybridge

Bordeaux

Stuttgart

Basingstoke

Munich

Paris

Tel Aviv

Trieste

Munich

Swindon

Bristol

Newport

Haifa

Paris

Swindon

Boigaro Torinese

Oxted

Freiberg

Antwerp

Solamo

Vienna

Madrid

Oslo

European Semiconductor Design Service Locations

Location Country

Switzerland

Switzerland

West Germany

England

England

England

Belgium

England

West Germany

Italy

West Germsmy

France

West Germany

England

Switzerland

England

Scodand

Scotland

England

France

West Germany

England

West Germany

France

Israel

Italy

West Germany

England

&igland

Wales

Israel

France

England

Italy

England

West Germany

Belgium

Italy

Austria

Spain

Norway

Code'

Product.

Category

1 2 3

Type of

Design

Service

4 5 A B C

M

M

M

M

M

M

M

M

M

M

M

M

C

C

M

M

M

M

M

M

C

C

C

C

C

M

M

M

M

M

M

M

M

M

M

M

M

M

M •

M

M

X

X

X

X

X

X

X

X X

X

X

X

X

X

X

X

X

X

X

X X

X

X

X

X X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

:t.

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

(CoQtmued)

ESIS Volume IE

0007242

©1990 Dataquest Incorporated June

Reference material—will not be republished

2-3

2 European Design Service Locations

Company n r (SRT)

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LSI Logic

LTC

Lucas

Marco Marketing

Mastair

Matra-MHS

Matra-MHS

Matra-MHS

Matra-MHS

Matra-MHS

Matra-MHS

MBB

MCE

MEDL

MEDL

MEM

Mexlin Gerin

Micronas

Mietec

Mietec

Mietec

Mietec

Mikron

MUU

Mistral

Mitel

Mitsubishi

Morari

Motorola

Motorola

Table 2-1 (Continued)

European Semiconductor Design Service Locations

Location Country

Code* 1

Product

Category*

2 3

Type of

Design

Service

4 5 A B C

Zurich

Agrate

Biel

Boulogne

Bracknell

Dusseldorf

Livingstone

Munich

Oslo

Oss

Sidcup

Stuttgart

Tel Aviv

Paris

Sutton Coldfield

Slough

To Be Announced

Bracknell

Milan

Munich

Nantes

Paris

Stockholm

Smttgart

Tewkesbury

Lincoln

Wembley

Marin

Grenoble

Helsinki

Bracknell

Brussels

Munich

Paris

Mimich

Rungis

Sermoneta

Caldicot

Ratingen

Montpellier

Aylesbury

East Kilbride

Switzerland

Italy

Switzerland

France

England

West Gemiany

- Scotland

West Germany

Norway

Netherlands

England

West Germany

Israel

France

England

England

France

England

Italy

West Germany

France

France

Sweden

West Germany

England

England

England

Switzerland

France

Finland

England

Belgium

West Germany

France

West Germany

France

Italy

Wales

West Germany

France

England

Scotland

M

M

M

M

M

M

M

M

M

M/C

M

M

M

M

M

M

M

M

C

M

M

M

M

M

M

M

M

C

C

M

C

M

M

M

M

M

M

M

M

M

M

M

X

X

X

X

'

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X X

X X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

(Contiaued)

2A

©1990 Dataquest Incorporated June

Reference mateiial—will not be republished

ESIS Volume III

0007242

2 European Design Service Locations

Table 2-1 (Continued)

Company

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Mc^rola

National Semiconductor

National SemiconductOT

N ^ o n a l SemiconductcH'

N ^ o n a l SoniconductOT

National S^niconductor

Natiimal Semiconductor

National Semiconductor

NCR

NEC

NEC

NEC

NEC

NEC

NEC

NEC

NEC

Neohm

Newmarket Micro

Newtek

Norsk Data

Olivetti

Panasonic (Matsushita)

Philips

Hulips

Philips

Philips (Mullard)

Philips (RTQ

Philips (RTQ

Philips (Volvo)

Plessey

Plessey

Plessey

Plessey

Plessey

Plessey/Ferranti

Geneva

Haifa

Milan

Munich

Paris

Stocldiolm

Toulouse

Greenock

Milan

Munich

Paris

Stockholm

Swindon

Tel Aviv

Maidenhead

Dusseldoif

Eindhoven

Milan

Milton Keynes

Munich

Paris

Stockholm

Stuttgart

Turin

Newmarket

Bordeaux

Oslo

Ivrea

Bracknell

Eindhoven

Milan

Stockholm

Mitcham

Caen Cedex

Paris

Hamburg

Brussels

Caswell

Leini

Munich

Swindon

Oldham

European Semiconductor Design Service Locations

Location Country

Code*

1

Product

Category

2 3 4 5 A

Type of

Design

Service

B C

Switzerland

Israel

Italy

Wea Germany

France

Sweden

France

Scotland

Italy

West Germany

France

Sweden

England

Israel

&igland

West Germany

Netherlands

Italy

England

West Germany

France

Sweden

West G^many

Italy

England

France

Norway

Italy

Bigland

Netherlands

Italy

Sweden

England

France

France

West Germany

Belgium

England

Italy

West Gnmany

England

England

M

M

M

M

M

M

M

C

C

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M/C

M

M

M

M

M

M

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X X

X

X

X X X

X X

X

X

X

X

X

X

X

X

X

X X

X

X

X

X X

X X X

X

X

X

X X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

(Cootmued)

ESIS Volume IH

0007242

©1990 Dataquest Incorporated June

Reference material—will not be republished

2-5

2 European Design Service Locations

Table 2-1 (Continued)

Company

Plessey/Fetranti

Precisi.'-n Monolithics

PDT-Pynenburg

PYE TMC

Quamdon

Qudos

Racal Microelectronics

Racal Redac

Racal Redac

Rapid Silicon

Robot Bosch

S2PI

SAAB

Sagem

SDMF

Semikron

Semikron

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson

SGS-Thomson—1ST

SGS-Thomson—1ST

SGS-Thomsoit—1ST

SGS-Thomson—1ST

SGS ThomscMi—1ST

Seiko-EpscHi

Siemens

Si^nens

Siemens

Siemens

Siem<ms

Siemens

Siemens

Siemens

Sieira Senr onductor

Sieira Semiccmductor

Sieira Semiconductor

Sigrid

Silicon Microsystems

European Semiconductor Design Service Locations

Location

Country Code* 1

Type of

Product

Category

2 3 4 5 A

Design

Service

B C

Marlow

Rennes

Agrate

Grafing

Paris

Madrid

Stockholm

Milt<»i Keynes

Dusseldorf

Hannover

Milan

Munich

Paris

Stuttgart

Villach

Zurich

Milan

S-Hertogenbosch

Munich

Les Ullis

Malmesbuiy

Paris

Cork

To Be Announced

Malmesbury

Derby

Cambridge

Reading

Munich

Tewkesbury

High 'SN^ccMnbe

Reutlingen

Palaiseau

Trollattan

Paris

Rungis

Cricklade

Nuremburg

Agrate

Castelletto

Catania

Grenoble

France

Ireland

Netherlands

England

England

England

England

West Germany

England

England

West Germany

France

Sweden

France

France

England

West Germany

Italy

Italy

Italy

France

England

France

Italy

West Germany

France

Spain

Sweden

&igland

West Germany

West Germany

Italy

West Germany

France

West Germany

Austria

Switzerland

Italy

Netherlands

West Germany

France

&igland

M

M

M

M

M

M

C

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

C

M

M

M

M

M

M

M

M

X

X:

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

. X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

JC:

(CoQtiinied)

2-6

©1990 Dataquest Incorporated June

Reference material—will not be republished

ESIS Volume HI

0007242

2 European Design Service Locations

Table 2-1 (Continued)

Company

Siliconix

S(H^

Sorep

Sorep

STC (Stantel)

STC (STL)

Swindon Siliccm Systems

Sysmic

Systons Sud

Tadiran

TAG

Tektronix

TddCunken

Telefuiyeoi

Telle Alcatel

Telmos

Texas Instruments

Texas Instruments

Texas Instiuments

Texas Instniments

Texas Instruments

Texas Instrumraits

Texas Instruments

Texas bistruments

Texas Instruments

Texet

TTiomson-CSF

Thomson-CSF

Thomson-CSF

Thomson-CSF

Thomson-CSF

Thomson-CSF

Thomson-CSF

Thomson-CSF

Thomson-CSF

Toshiba

Toshiba

Toshiba

Toshiba

Toshiba

Toshiba

TRW

Swansea

Grenotde

Les mils

Rennes

Sidcup

Hariow

Swindon

Aix-En-Provence

Toulouse

To Be Announced

Zurich

Marlow

Elching

Heilbroim

Strasbourg

Munich

Bedford

Rieti

Franldurt

Freising

Hannover

Milan

Stockholm

Velizy

Villeneuve-Loubet

Nice

Aix-En-Provence

Basingstoke

Grenoble

Milan

Munich

Rousset

Saint Egreve

Toure

Velizy

Camberley

Dusseldorf

Milan

Munich

Paris

Stockholm

Bordeaux-Lac

European Semiconductor Design Service Locations

Location Country

Wales

France

France

France

Sweden

England

England

France

France

Israel

Switzerland

England

West Germany

West Gomany

France

West Germany

England

Italy

West Germany

West Gramaiy

West Germany

Italy

Swedoi

France

France

France

France

&igland

France

Italy

West Germany

Frsmce

France

France

France

England

West Germany

Italy

West Germany

France

Sweden

France

Code*

1

Product

Category

2 3 4 5

M

M

M

M

M

C

M

M

M

C

M

M

M

M

M

M

M

M

-M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M

M '

X

M

M

M

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Type of

Design

Service

A B

c

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

(Cootinued)

ESIS Volume ffl

0007242

©1990 Dataquest Incorporated June

Kcference mucnal—:wiil not be icpublisbed

2-7

2 European Design Service Locations

Table 2-1 (Continued)

Company

Ua-Alcatel

Vaisala

VDI Zentrum

VLSI Technology

VLSI Tecbnology

VLSI Technology

VLSI Technology

Westcode

Wolfson Microelectronics

Zeltron

ZyMOS

ZyMOS

ZyMOS

European Semiconductor Design Service Locations

Location

Country Code* 1

Product

Category

2 3 4 5

Type of

Design

Service

A B C

Les Ullis

Helsinki

Berlin

Milan

Milton Keynes

Munich

Paris

Chippenham

Edinbuigh

Campformido

Offenbach

StocJdiolm

Welwyn Gdn. City

France

Finland

West Germany

Italy

England

West Germany

France

England

Scotland

Italy

West Gennany

Sweden

England

M

M

M

M

M

M

M

M

M

M

M

M

M

X X X

X-

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

'Code

M = Merchant

C = Captive

^Product Category

1 = Standard integrated circuits

2 s Custom circuits

3 = Standard cells

4 = Gate arrays

5 3s Discretes and optoelectronics

*iype of Design

Service

A

B Design center service

C

: design service locations

Soiuce: Dataquest (June 1990)

2-8 ©1990 Dataquest Incorporated June

Reference material—will oot be republished

ESIS Volume IE

0007242

4 Company Profiles

This section provides an overview of major semiconductor suppliers' activities in

Europe.

Profiles of European suppliers provide an in-depth analysis of corporate and semiconductor operations in Europe and worldwide. Briefs on U.S. and Japanese suppliers comprise introductory corporate data and in-depth discussions of their

European semiconductor operations.

In most cases, European company profiles include information under the following headings:

• Background

Discusses the company's background and the nature of its business activities.

• Operations

Discusses the major industry segments of the company. Significant changes or trends are noted.

• International Operations

Detailed discussions of the European and worldwide operations of the company. Significant international manufacturing operations, subsidiaries, and distributors are noted.

• Research and Development

Discussion of the research and development activities in the company with emphasis on semiconductor development work.

• Company Structure

Discussion of any structural changes, number of employees, and marketing, sales, and distribution organization.

• Facilities

Brief discussion of the major semiconductor-related facilities of the company, year established, capacity, products, and processes.

• Prior Year Highlights

Brief discussion of the developments and critical events for the company during the past year.

ESIS Volume III © 1988 Dataquest Incorporated April

4 Company Profiles

• Outlook

Comments on the near-term future for the company—markets, strategy, and financial prospects—with emphasis on semiconductor products.

• Major Activities

A brief discussion of each major group's or division's activities.

• Semiconductor Activities

Discusses the company's European semiconductor operations, activities, products, and business strategies and includes worldwide and European semiconductor revenue tables by product line, by region, and by end use.

• Corporate Financial and Market Data

Financial data (except for semiconductor revenue tables) are derived from publicly available corporate sources. Since Company Law may differ in various countries, the information Dataquest requires for general corporate financial reporting may not always be available.

In most cases, the Japanese and U.S. company profiles include information under the following headings:

• Overview

Discusses the company's background and European operations including origin, key milestones, size, number of employees, main business lines, and profitability.

• European Semiconductor Facilities

Briefly discusses the major European semiconductor-related facilities of the company, year established, capacity, products, and processes.

• European Semiconductor Activities and Market Data

Discusses the company's European semiconductor operations, activities, products, and business strategies and includes European semiconductor revenue tables by product line, by region, and by end use.

© 1988 Dataquest Incorporated April ESIS Volume III

4 Company Profiles

The European, Japanese, and U.S. company briefs include information under the following headings:

• Background and Overview

Discusses the company's background and European operations, including origin and key milestones, and includes European semiconductor revenue tables by product line. For European companies only, also included are worldwide semiconductor revenue tables by product line.

• Products and Markets Served

Discusses the company's semiconductor products and business strategies.

• Outlook

Discusses the near-term outlook for the company.

ESIS Volume III © 1988 Dataquest Incorporated April

4 Company Profiles

(Page intentionally left blank)

© 1988 Dataquest Incorporated April ESIS Volume III

tD

Advanced Micro Devices Inc.

901 Thompson Place

Sunnyvale, California 94086

Telephone: (408) 732-2400

Fax: (408) 982-6161

Dun's Number: 04-863-4059

Date Founded: May 1, 1969

CORPORATE STRATEGIC DIRECTION

share with $291.0 miUion in 1990. AMD also ranks second in 16-bit microprocessors with a 23.8 percent market share in 1990.

Advanced Micro Devices Inc. (AMD) was founded in

1969 by former Fairchild Semiconductor employees with a new business idea—to build a semiconductor company that produced pin-compatible devices with high-performance upgrades of existing products.

Thus, initially, AMD's reputation was built not as a second source but as an alternate sotu°ce. In recent years, the company has vigorously forged ahead with development of new proprietaiy products, which in

1990 accounted for over half of total sales. AMD designs, manufactures, and markets microprocessors and related peripherals, memories, and programmable logic devices (PLDs) for telcommunications, office automation, and netwoiking appUcadons. The company's products are based on CMOS, NMOS, and bipolar process technologies.

Nineteen-ninety was a year of important transformations for AMD. Over ^ e last four years, AMD has gradually been making the transition from bipolar to

CMOS technology. In the fourth quarter of 1990, sales of CMOS products surpassed sales of bipolar products for the first time, bringing in $113 million in quarterly revenue and representing 43 percent of sales. For 1990 as a vi)xA&, CMOS sales increased

47 percent. The company will continue to emphasize

CMOS technology in the coming years, eventually phasing bipolar products into a minor role. The primary goal of AMD today is to supply submicron CMOS solutions to the manufacturers of equipment for personal and network computation and communications.

According to Dataquest, AMD held a 1.8 percent market share of the 1990 worldwide semiconductor market, ranking the company nineteenth. These figures are similar to AMD's numbers of 1989, when the company held a 1.9 percent market share and ranked eighteenth. Dataquest also estimates that

AMD is the eighth largest Nordi American manufacturer of semiconductors with $516.0 milhon* in factory revenue in 1990.

The company is currendy focused around three core businesses: memory devices such as programmable logic devices (PLDs), erasable programmable readonly memories (EPROMs), and microcomponents.

AMD also classifies two emerging areas of business—^network products and communication.

Dataquest estimates that AMD ranks first in the PLD worldwide market, garnering a 35.1 percent market

*A11 dollar amounts are in U.S. dollars.

In the fourth quarter of 1990, AMD started operations in the new Submicron Development Center (SDC) in

Sunnjrvale, California. AMD's management views the

SDC as instrumental to the company's success throughout the 1990s, as they believe that the ability to manufacture ICs at the submicron level wiU represent the difference between successful and unsuccessfiil IC companies. AMD expects the process technology developed at the SDC to lead to 0.5-micron feature devices by 1992 and 0.35-micron devices by

1994. If successful, these technologies will provide a substantial growth opportunity for AMD to be on the leading edge of submicron technology. The SDC represents a substantial $200 million investment for

AMD. At the time of initial wafer production at the

SDC, the facility boasted the world's cleanest facUity, with the clean room possessing only one particle per cubic foot no larger than 0.1 micron, substantially under the Class 1 standard level of one particle per cubic foot no larger than 0.5 micron.

0011Q20

©1991 Dataquest Incorporated October—Reproduction Prohibited

Advanced Micro Devices Inc.

The transformations of 1990 were also quite evident in changes in AMD's manufacturing facilities. Recognizing die shift toward submicron CMOS technology,

AMD has closed 10 aged wafer fabrication areas in the past four years. AMD also sold its Manila assembly plant in January 1989 and subsequendy commenced assembly operations in a new automated facility in Bangkok in 1989. These manufacturing changes further reflect AMD's shift toward CMOS products, which the company expects to compose the bulk of sales by die end of 1991. reductions, and a substantial increase in investments in capital equipment. The decision with Brooktree

Corporation is currentiy under appeal, and a ruling in

ANflD's favor could significantiy affect net income in fiscal 1991.

R&D expenditure was $203.7 million in fiscal 1990, or 19.2 percent of revenue. AMD reported capital expenditure of $313.4 million in fiscal 1990, representing 29.6 percent of total revenue. This figure for capital expenditure nearly doubled the 1989 figure of $158 million, primarily as a result of investment in the SDC facility. AMD markets and distributes its products through company headquarters in Sunnjrvale, California, and through a network of U.S. field sales offices, independent representatives and distributors, and foreign subsidiaries. The overseas sales subsidiaries have offices in Belgium, Canada, France, Italy, Japan,

Sweden, the United Kingdom, and Germany. A marketing and distribution agreement with Siemens AG also provides for worldwide distribution of AMD's products, with primary efforts in the West European,

South African, and South American markets.

Intemational sales represented 51.2 percent of total revenue for AMD in 1990, totaling $538 million.

North American revenue represented 48.8 percent,

European revenue 26.1 percent, Japanese revenue

13.2 percent, and revenue from the rest of the world

11.9 percent of total revenue. At the end of 1990,

AMD employed 11,997 people worldwide.

More detailed iofonnation is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 5 at the end of this backgrounder provide comprehensive financial information.

AMD has been involved in one of the most bitter litigation batties in semiconductor history with Intel

Corporation. The integrated circuit in question was

Intel's 80386 32-bit microprocessor, the microprocessor behind a generation of IBM-compatible computers. Intel and AMD had signed a technology exchange agreement in 1982. When Intel introduced its 80386 in 1985, AMD expected Intel to transfer the technology as part of the 1982 agreement Intel did not transfer the technology, and AMD took the matter to arbitration in 1987. In October 1990, after tiiree years of exhaustive litigation, an arbitrator ruled that

Intel had breached the terms of the 1982 contract and owed AMD damages. The amount has not been setded, but AMD is seeking over $500 million in monetary damages, as well as equitable relief for other damages, which would include the technology and manufacturing rights to Intel's 386 microprocessor. The matter is scheduled to be resolved in mid-1991.

AMD reported consolidated revenue for fiscal 1990 of $1.1 billion, a 4.1 percent decrease from fiscal

1989. AMD's net income decreased 216.3 percent to a net loss of $53.6 million, down from a net gain of

$46.0 mUlion in 1989. Numerous factors contributed to this loss, including a $28 million adverse decision in litigation with Brooktree Corporation, a $10 million one-time charge associated with work force

BUSINESS SEGMENT STRATEGIC

DIRECTION

Progranunable Logic Products

As previously mentioned, AMD is die industry leader in high-speed, field-programmable integrated circuits known as PLDs. These PLDs are used in PC-based systems to connect microprocessors widi other circuitry, with applications including digital switches, phone systems, and test and medical equipment The conq>any's HJDs combine the off-lhe-shelf availability, ease of use, and low cost of standard products, while adding the capability for semicustom design.

The initial design time and cost in customizing a PLD is less than designing a traditional custom IC or gate array. AMD began shipping its MACH family of mid-density PLDs in 1990, offering an alternative to low-density gate arrays.

©1991 Dataquest Incorporated October—^Reproduction Prohibited

00U020

Advanced Micro Devices Inc.

With $291 million in total PLD factory revenue,

AMD has more than double the factory revenue of its nearest competitor, Texas Instruments. AMD has held a soUd leadership position in the bipolar PLD market and continued to do so in 1990, owning a leading

58.9 percent share of the market The company has pledged to strengdien its market ^laie in the emeiging field of CMOS PLDs. CMOS PLDs represent the fastest-growing segment of the market, and AMD increased its factory revenue by 56 percent to $42.0 million in 1990, ranking the company fourth in the market.

High-Performance Memories first alternative to Intel's 386 microprocessor, which has been an industty standaid since its introduction in

1985.

AMD also has targeted the vast embedded processor market with the Am29000 processor. The Am29000 is a 32-bit reduced-instruction-set computing (RISC) device, whose applications include laser printers, high-performance graphics and network controllers, and accelerator cards. Hewlett-Packard Company recendy introduced the LaserJet nisi, a 17 pages-perminute laser-beam printer based on the Am29000.

The HP LaserJet joins a list of more than 300 designs based on the Ajn29000, which continues to gain acceptance as the leader in the RISC microprocessor market for embedded control applications.

A significant portion of AMD's revenue is generated from the sale of EPROMs. EPROMs are used to store data when a system's power is off and are used in personal computers, laser printers, automobile engine controllers, video games, and other eqtiipment where programmed data storage is needed. AMD offers a family of CMOS EPROM devices that range from

64K to 4Mb in density. The company has completed its transition from NMOS to CMOS technology in its

EPROMs, with all EPROMs now using CMOS technology. The company also offers a family of specialty memory devices consisting of first in/first out (FIFO) buffer memories, dual-port memories, content addressable memories (CAMs), and static randomaccess memories (SRAMs).

Networks and Communications Systems

AMD supplies a wide range of solutions for a broad spectrum of connectivity problems. These include applications in central office switches, PBX equipment voice/data terminals, and different performance classes of LANs used in connecting workstations and personal computers. The company not only offers the integrated circuits for these applications but also provides a number of hardware evaluation tools, development software, and interface software.

AMD estimates that it is the second-largest supplier of EPROMs in the worldwide market.

Microprocessors and Related Peripherals

AMD is one of the leading suppliers of subscriber line interface circuit (SLIC) and subscriber line audio-processing ciiruit (SLAC) devices that are a fundamental part of digital telephone switching equipment The SLIC connects the user's telephone wire to the telephone company's digital switching equipment the SLAC is a coder/decoder that converts analog voice signals to a digital format and back.

Through a 1982 technology exchange agreement with

Intel Corporation, AMD manufactures certain iAPX products, including the 8051 single-chip microcontroller and the 8086, 8088, 80186, and 80286 microprocessors. Dataquest estimates that, on the strength of its 80286 microprocessor, AMD holds

23.8 percent of the 1990 worldwide 16-bit microprocessor market, second only to Intel.

In 1990, AMD finally completed "Project Longhom," the company's venture to develop a 32-bit 80386 microprocessor. The result was the 32-bit Am386 microprocessor, designed to enter the 386-driven IBM

PC market The first shipments of the Am386 commenced in the first quarter of 1991 and were immediately profitable, bringing in more than $10 million in quarterly factory revenue. The Am386 provides the

AMD's agreement with Siemens calls for alternative sourcing of existing devices and joint development of future products for the Integrated Services Digital

Network (ISDN), an emerging network that is digitally linking telephones and computers internationally.

The network is unique in that it was formed out of a set of standards developed by the Consultative Committee for International Telegraph and Telephone

(CCTTT), a branch of the United Nations. ISDN allows a user to commurucate digitally on three separate charmels simultaneously over a single analog telephone line. This gives the user the capability of simultaneously communicating by telephone, computer, and video equipment ISDN is especially powerful in that it requires no modification to the

0011020

©1991 Dataquest Incorporated October—^Reproduction Prohibited

Advanced Micro Devices Inc. wiring and cabling of the telephone systems in effect today. ISDN is functional with only the purchase of a new phone-line interface and management software.

Apphcations currently include mail order services, stock brokerages, computer services, and medicine, with significant potential for future expansion. ISDN has signed on such customers as AMD, Bally Inc.,

Hayes Microcomputer Products Inc., Massachusetts

Institute of Technology, McDonald's Corporation,

Sandia Laboratories, Shell Oil, 3M Company, and

Tenneco.

AMD is also active in the fiber-distributed data interface (FDDI) information exchange network. AMD provides the SUPERNET integrated chip set for the

FDDI system, which uses LANs to connect computers, workstations, data storage imits and other systems that need to exchange information rapidly.

FDDI uses fiber-optic cables as the conduit thix>ugh which information passes, instead of the traditional metal coaxial or twisted-pair cables. This use of fiber optics allows larger blocks of information to be moved at faster speeds and for longer distances than had been possible in the past

Office Automation

AMD, having identified specific high-volume apphcations in office automation equipment, developed proprietary circuits that add functionality, improved performance, and reduced cost to the equipment

These apphcations include graphics, compression/ expansion processing for storing images, dedicated devices for laser printers, and magnetic and optical disk control.

Further Information

For further information about the company's business segments, please contact the appropriate Dataquest industry service.

4

©1991 Dataquest Incorporated October—Reproduction Prohibited

00U020

Advanced Micro Devices Inc.

Table 1

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

Kve-Year Revenue

Percent Change

1986

576.1

(38.13)

1987

997.1

73.08

Capital Expenditure

Percent of Revenue

136.9

23.76

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

183.9

31.92

13,689

42.08

1988

1,125.9

12.92

137.9 '

13.83

247.8

24.85

18,015

55.35

133.1

11.82

208.3

18.50

14,817

75.99

Net Income

Percent Change

(36.6)

(127.03)

(64.0)

(74.86)

19.3

130.16

1989 Calendar Year

Quarterly Revenue

Quarterly Profit

Q i

271.4

13.2

Q2

267.7

(5.9)

1989

1,104.6

(1.89)

158.8

14.38

201.8

18.27

13,072

84.50

46.1

138.86

1990

1.059.2

(4.11)

313.4

29.59

203.7

19.23

11,997

88.29

(53.6)

(216.27)

Q3 Q4

254.2 265.9

(

:17.8) (43.0)

Annual Repoits

Dataquest (October 1991)

Table 2

Revenue by Geographic Region (Percent)

Region

North America

Europe

Asia/Pacific

1986

76.00

21.00

3.00

1987

73.00

19.00

8.00

1988

69.00

19.00

12.00

1989 1990

67.20 64.35

20.20 21.20

12.60 14.45

Source: Advanced Micro Devices Inc.

Annual Reports

Dataquest (October 1991)

0011Q20

©1991 Dataquest Incorporated October—Reproduction Prohibited

Advanced Micro Devices Inc.

1990 SALES OFFICE LOCATIONS

North America—40

Europe—10

Japan—1

ROW—3

Advanced Micro Devices Export Corp. (United

States)

Advanced Micro Devices Overseas Corp. (United

States)

Advanced Micro Devices Overseas (Delaware Corp.)

(United States)

Advanced Micro Ltd. (United States)

AMD Corp. (United States)

AMD Far East Inc. (United States)

AMD International Sales and Service Ltd. (United

States)

AMD Properties (United States)

MANUFACTURING LOCATIONS

North America

Austin, Texas (3)

MOS, MPUs, PLDs, communications ICs,

SRAMs, CMOS/MOS, EPROMs, BiCMOS, logic,

RISC MPUs

Santa Clara, California (2)

Bipolar, PROMs, PLDs, CMOS

Sunnyvale, California (2)

CMOS/BiCMOS, RISC MPUs, EPROMs, bipolar, interface logic

Europe

Europe

Advanced Micro Devices AB (Sweden)

Advanced Micro Devices Belgium S.A.N.V.

(Belgium)

Advanced Micro Devices GmbH (Germany)

Advanced Micro Devices Overseas Corp. (Belgium)

Advanced Micro Devices S.A. (France)

Advanced Micro Devices S.A. (Switzerland)

Advanced Micro Devices S.p.A. (Italy)

Advanced Micro Devices (U.K.) Ltd. (United

Kingdom)

Monolithic Memories (France) S.A.R.L. (France)

Monolithic Memories GmbH (Germany)

Monolithic Memories Inc. Ltd. (United Kingdom)

Monolithic Memories Ltd. (United Kingdom)

Basingstoke, England

Test and assembly

Japan

Advanced Micro Devices K.K. (Japan)

MMI-Japan K.K. (Japan)

AsialPacific

Atsugi, Japan

Product testing

Bangkok, Thailand

Test and assembly

Penang, Malaysia

Test and assembly

Singapore

Test and assembly

SUBSIDIARIES

North America

Advanced Micro Computers Export Corporation Inc.

(United States)

Advanced Micro Devices (Canada) Ltd. (Canada)

ROW

Advanced Micro Devices Export Sdn. Bhd (Malaysia)

Advanced Micro Devices (Philippines) Inc.

Advanced Micro Devices Sdn. Bhd. (Malaysia)

Advanced Micro Devices Products Sdn. Bhd.

(Malaysia)

Advanced Micro Devices (Singapore) Pte. Ltd.

Advanced Micro Devices Technology Sdn. Bhd.

(Malaysia)

AMD Atlantic Ltd.

AMD Foreign Sales Corp.

AMD (International) Ltd. (Bermuda)

AMD Overseas Financial Ltd.

AMD (Overseas Financial) Ltd. (Bermuda)

AMD (Thailand) Ltd.

MMI Integrated Circuits (Singapore) Pte Ltd.

Monolithic Memories Foreign Sales Corp.

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011020

Advanced Micro Devices Inc.

ALLIANCES, JOINT VENTURES, AND

LICENSING A G R E E M E N T S

M E R G E R S AND ACQUISITIONS

Information is not available.

1991

Sony Corporation

AMD and Sony agreed to a broad patent and copyright cross-licensing agreement covering wafer processes, design, and architecture for integrated circuits. The agreement is designed to facilitate the development of 0.5-micron CMOS process technology.

Taiwan Semiconductor Manufacturing Corp.

(TSMC)

AMD and TSMC signed an agreement under which TSMC will act as a foundry for some of

AMD's EPROMs.

1990

Oak Technology Corp.

AMD granted manufacturing and marketing rights to Oak Technology for AMD's Am95C71 Video

Compression and Expansion Processor.

1989

Scorpion Technologies

Scorpion purchased the proprietary rights to the

P-Channel silicon gate MOS technology from

AMD.

KEY O F F I C E R S

W. J. Sanders i n

Chief executive officer, chairman of the board

Anthony B. Holbrook

Vice chairman and chief technical officer

Richard Previte

President and chief operating officer

Marvin Burkett

Senior vice president and chief financial officer

Stephen Zelencik

Senior vice president and chief marketing executive

Gene Conner

Senior vice president. Memory Manufacturing and

Technology

Thomas W. Armstrong

\^ce president and general counsel

W. Curtis Francis

Vvx president. Corporate Operations Plaiming

Stanley Winvick

Vice president. Human Resources

1988

Communication Machinery Corp. (CMC)

The two companies agreed to jointly develop and market intelligent FDDI VMEbus processors.

CMC will integrate its TCP/IP and ISO software and CMC's expertise in building high-performance

Ethernet processors with AMD's SUPERNET chip set.

PRINCIPAL INVESTORS

Information is not available.

FOUNDERS

Siemens AG

The two companies announced a technology agreement under which they will jointly develop, manufacture, and market chips for data communications and telecommunications with emphasis on

ISDN. Both companies will manufacture and market the chip sets and jointly develop future ISDN products.

W. J. Sanders m

Jack Gifford

Larry Stenger

James Giles

Frank Botte

John Carey

Sven Simsonsen

Ed Tumey

0011020

©1991 Dataquest Incorporated October—^Reproduction Prohibited

Advanced Micro Devices Inc.

Table 3

Comprehensive Financial Statement

Fiscal Year Ending in December

(Millions of U.S. Dollars, except Per Share Data)

Balance Sheet

Cash

Receivables

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equi^

1986*

15.4

109.0

42.5

76.2

243.1

486.5

1.9

731.5

142.5

151.6

48.2

342.3

0

0.6

119.4

269.2

389.2

1987'

235.2

176.5

81.9

21.3

514.9

524.3

17.9

1,057.1

254.6

135.9

43.1

433.6

0.1

0.8

459.8

162.8

623.5

731.5

1,057.1

Fiscal years ending March

1987 and 1988 have been restated to reflect consolidation of AMD and Monolithic

Memories as detailed in the 1988 Annual Report Additionally, in 1987, AMD changed its fiscal year to end the last Suiday in December. 1987 and 1988 are restated to sliow these changes.

1988*

286.8

167.4

90.5

27.7

572.4

495.5

13.5

1,081.4

266.2

130.4

40.0

436.6

0.1

0.8

472.3

171.7

644.9

1989

278.8

183.6

90.5

40.8

593.7

505.9

22.9

1,122.5

275.8

126.4

29.3

431.8

0.1

0.8

482.6

207.5

691.0

1.081.5 1,122.5

1,111.7

Source: Advanced Micro Devices Inc.

Annual Reports and FWms 10-K

Dataquest (October 1991)

1990

115.1

153.5

90.0

37.9

396.5

647.0

68.2

1,111.7

317.5

131.3

26.6

475.4

0.1

0.8

491.9

143.5

636.3

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011020

Advanced Micro Devices Inc.

Table 4

Consolidated Income Statement

Fiscal Year Ending in December

(Millions of U.S. Dollars, except Per Share Data)

Income Statement

Revenue

U.S. Revenue

Non-U.S. Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

1986*

576.1

438.6

137.5

347.8

183.9

122.3

136.9

(84.7)

(14.70)

(46.00)

(36.6)

56.3

(0.65)

NA

6.91

(0.92)

NA

8.01

Fiscal yeais ending March

1987 and 1988 have been restated to reflect consolidation of AMD and Monolithic

Memories as detailed in the 1988 Ammal Report Additionally, in 1987, AMD changed its fiscal year to end the last Sunday in December. 1987 and 1988 are restated to show these changes.

NA = Not available

1987'

997.1

725.4

271.7

562.3

247.8

203.2

137.9

(45.6)

(4.57)

40.00

(64.0)

77.8

1988*

1,125.9

777.6

348.3

661.9

208.3

224.2

133.1

19.3

1.71

34.00

19.3

80.8

1989

1,104.6

742.2

362.4

643.4

201.8

221.0

158.8

49.9

4.52

34.00

46.1

82.0

1990

1,059.2

681.6

377.6

678.5

203.7

228.4

313.4

(53.6)

(5.06)

(34.00)

(53.6)

81.9

0.11

NA

7.98

0.44

NA

8.43

(0.78)

NA

7.77

Somce: Advanced Micro Devices Inc.

Annual Reports and Fbrms 10-K

Dataquest (October 1991)

0011020

©1991 Dataquest Incorporated October—^Reproduction Prohibited

Advanced Micro Devices Inc.

Table 5

Key Financial Ratios

Fiscal Year Ending in December

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue ($K)/Employee

Capital Spending % of Assets

1986'

1.71

187.95

36.61

87.95

(5.00)

(9.40)

(6.35)

31.92

23.76

13,689

42.08

18.71

1987'

2.02

169.54

40.83

69.54

(6.05)

(10.26)

(6.42)

24.85

13.83

18,015

55.35

13.05

Fiscal years endiiig March

1987 and 1988 have been restated to reflect consolidation of AMD and Monolithic

Memories as detailed in the 1988 Annual Repent Additionally, in 1987, AMD c f a a n ^ its fiscal year to end die last Sunday in December. 1987 and 1988 are restated to show these changes.

1988'

1989

1990

2.15

167.68

41.28

67.68

1.78

2.99

1.71

2.15

162.45

39.91

62.45

4.11

6.67

4.17

1.25

174.71

49.90

74.71

(4.82)

(8.42)

(5.06)

18.50

11.82

14,817

75.99

12.31

18.27

14.38

13,072

84.50

14.15

19.23

29,.59

11,997

88.29

27.36

Source: Advanced Micro Devices Inc.

Ar.r'ri! Reports r est (October 1991)

10

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011020

Company Backgrounder by Dataquest

Analog Devices Inc.

One Technology Way

Norwood, Massachusetts 02062

Telephone: (617) 329-4700

Fax: (617) 326-8703

Dun's Number: 00-141-8417

Date Founded: 1965

CORPORATE STRATEGIC DIRECTION

Analog Devices Inc. is a leading manufacturer of precision linear, digital, and mixed-signal integrated circuits used in analog and digital signal-processing appUcations, as well as modular and board-level products used in data acquisition and measurement and control systems and subsystems. Analog Devices also manufactures a broad range of products that employ assembled product technology, including modules and board-level systems and subsystems.

The company's products are used primarily in computerized equipment and systems that involve processing information obtained from real-world sensors measuring such phenomena as temperature, pressure, and light intensity. The major application markets for Analog Devices' products are instrumentation (engineering, scientific, and medical), mihtary/ aerospace, industrial automation, telecommunications, computer equipment, and the consumer market.

Fiscal year 1990 was filled with major transformations for Analog. The event of the year occurred in

August, when Analog officially announced the purchase of a competitor. Precision Monolithics Inc.

(PMI). Analog purchased PMI from Bourns Inc. for

$60.5 million* in cash plus $12.5 million in stock warrants. The acquisition of Santa Clara, Californiabased PMI strengthened Analog's akeady soUd niche in the high-performance analog IC arena. According to Analog, the move makes the company the second largest nonconsumer linear IC supplier, trailing only

National Semiconductor Corporation.

Analog Devices' sales increased 7.0 percent in fiscal

1990 to $485.2 million. Net income in fiscal 1990 was a net loss of $12.9 million, representing a decrease of 146.3 percent fi-om the 1989 profit of

$27.9 miUion. The main reason for this net loss was a restructuring charge of $21.5 million covering costs

'''All dollar amounts are in U.S. dollars. associated with organizational changes in the company as well as costs associated with the integration of PMI. Analog Devices also took a $12 miUion reserve against the Analog Devices Enterprises

(ADE) portfolio.

Research and development expenditure for fiscal

1990 totaled $80.3 million, or 16.6 percent of revenue. Capital expenditure totaled $39.0 million, or

8.0 percent of revenue, for the same period.

Analog Devices has a fairly even mix of domestic and intemational sales. In 1990, 53.2 percent of sales came from domestic operations and 46.8 percent frani intemational operations, with a further breakdown of

31.5 percent coming from Europe and 15.3 percent from Asia. The company employed 5,700 people at the end of fiscal year 1990.

Accompanying its major acquisition during fiscal year 1990, Analog also began a major organizational transformation. Traditionally, Analog has had a largely decentralized organizational structure, with product divisions differentiated by manufacturing technology. Traditional divisions had corresponded to the respective technologies, such as hybrids, bipolar

ICs, and CMOS ICs. With the recent advances in technology, many of these previously distinct technologies can be combined, resulting in blurred divisions between the product lines. As a result. Analog has decided to shift toward a more centralized organizational structure that is more responsive to applicationspecific and market-specific demands. The company consolidated six of the existing product divisions into two new divisions, the Systems IC Products Division

(SPD) and the Industrial Electronics Division (lED).

The SPD combines the Digital Signal Processing

(DSP) and Mixed-Signal ASIC Divisions. The SPD plans to focus on application-specific devices that can be sold to customers who require varying applications

0010846

©1991 Dataquest Incorporated September—^Reproduction Prohibited

Analog Devices Inc. iuvolving digital and mixed-signal system-level VLSI

ICs. These applications include such product lines as image processing, digital mobile radio, high-speed modems, and facsimile machines. its 1989 position of 29th. Widi die acquisition of Precision MonoUthics, Analog Devices' overall market share increases to 0.9 percent, ranking the company 24th.

The newly formed lED combines the previous divisions of Indiistrial Products, Microelectronics, Memory Devices, and Computer Labs. The lED will focus on industrial automation, automatic test equipment, industrial control, and motion control systems.

Three divisions in Analog's structure wiU remain unaltered. The Bipolar IC Division, the CMOS

IC Division, and the Precision Monolithics Division will remain intact These divisions are being asked to increase their already solidly established leadership positions in the general-purpose IC market.

Products under the auspices of these divisions include data converters, precision amplifiers, and voltage references.

Analog Devices has developed a series of proprietary semiconductor processes for use in designing state-ofthe-art products. These include a fine-line CMOS process for use in DSP products; a combined bipolar/

MOS process called ABCMOS (Advanced Bipolar

CMOS) for use in mixed-signal devices, including analog-to-digital (ADC) and digital-to-analog (DAC) converters and VLSI application-specific devices; and a complementary bipolar (CB) process for use in such devices as high-speed, high-performance amplifiers.

The company believes that the continued development of its process technology is an important factor in maintaining a competitive advantage in the marketplace. However, it also expects to develop an alliance with a larger company that would give Analog access to state-of-the-art submicron CMOS processes.

Traditionally, Analog Devices' strategy for entering new markets and acquiring new technologies was investment in start-up companies. In 1980, Analog

Devices Enterprises (ADE) was foimded. ADE is an internal venture capital group that provides start-up funding to companies that have technologies aligned with Analog Devices' strategic interests. Its first investment was Signal Processing Circuits Inc. of Salt

Lake City, Utah. This small start-up was engaged in the design of digital signal processing devices, which

Analog had identified as one of its major strategic interests. Since the inception of ADE, the company has invested in 12 companies. Analog Devices has begun to downplay this strategy in the last five years, culminating in the fourth quarter of 1990 when the company took a $12.0 miUion writedown of ADE, reducing ADE to its near-term Uquidation value.

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highUghts and revenue by regioa Information on revenue by distribution channel is not available. Table 3, a comprehensive financial statement, is at the end of this backgroimder.

Systems IC Products Division

The SPD, which combines the DSP and the Mixed-

Signal ASIC Divisions, is fociising on digital and mixed-signal system-level VLSI ICs.

DSP

Analog Devices has become a significant player in the

DSP IC market by focusing on processors whose architecture is optimized for real-world signal processing applications. The ADSP-2100 was the first

DSP processor in this family, which has since been followed by the ADSP-2101, ADSP-2102, and

ADSP-2105 DSP processors. The company has also introduced the ADSP-21msp50 processor, which includes on-board A/D and D/A capabifity, and recendy announced the ADSP-21020 Floating Point

DSP processor, which is the highest-performance floating point device currentiy on the market The company expects many of its future mixed-signal

VLSI products to include an embedded DSP function.

ASSP and ASICs

BUSINESS SEGMENT STRATEGIC

DIRECTION

Semiconductors

According to Dataquest, Analog Devices held

0.7 percent of the 1990 world semiconductor market, ranking the company 27th, a slight increase fix>m

Analog Devices expects a significant portion of its future growth to come from mixed-signal VLSI ICs, with the company's primary focus being on application specific standard products (ASSPs) targeted at high-volume opportunities in computer peripherals, telecommunications, and consumer products. Appfications in these markets include hard disk drives, high-resolution graphics displays, digital cellular phones, high-speed modems, facsimile machines,

©1991 Dataquest Incorporated September—Reproduction Prohibited

001C»46

Analog Devices Inc.

HDTV, DAT, and Surround Sound decoders. It is the company's intention that the products developed for these applications wiU essentially be standard products sold with litde or no individual modifications.

In addition, the company is establishing design centers in a few key geographic areas that wiU focus on working with a limited number of customers to develop mixed-signal VLSI ICs to meet their specific needs. These products will be developed using the company's proprietary CAD tools and cell library.

Computer Peripherals ICs

Analog has become increasingly involved in supplying linear and mixed-signal ICs for use in computer peripherals such as hard disk drives and highresolution graphics displays. Among its products for hard disk drives is the AD890/AD891 IC pair, which processes the signal from a hard disk read head at rates of up to 50 Mbps. More recently, the company introduced the AD897, a single IC that performs the same function at up to 40 Mbps. The company also has a number of ICs used in head positioning server applications, including the recently introduced

AD7774, a complete analog input/output port that includes a 4-chamiel, 8-bit A/D converter and two

8-bit D/A converters.

Industrial Electronics Division

The lED, which combines Analog Devices' traditional divisions of Industrial Products, Microelectronics, Memory Devices, and Computer Labs, wDl target the fields of automatic test equipment (ATE), industrial automation, industrial controls, and motion control systems, with an emphasis on ATE.

Analog Devices has targeted ATE as one of the fastest growing applications of Unear and mixedsignal technology. TTie company's strategy io the ATE market is to become the leading merchant supplier of linear and mixed-signal ICs used for pin electronics in ATE. Analog currently manufactures ICs for both the computer mainframe and pin electronics portions of large mainframe testers. As the pin count for logic and memory testers increases from 512 pins to

1,024 pins, the indiistry is facing an urgent need to reduce the cost per pin. The challenge facing Analog is to convince customers to buy Analog's ICs instead of making their own.

Bipolar IC, CMOS IC, and Precision

Monolithics Divisions

The bipolar and CMOS IC divisions remain intact under Analog's new central reorganization and with the newly acquired Precision MonoUthics Division will target general-purpose IC applications such as data converters, precision amplifiers, and voltage references. Analog looks to these divisions to increase the market and leadership positions previously held in the aforementioned applications. The company also hopes that these divisions will begin to expand into the consimier, transportation, and computer peripherals markets.

Data Conversion ICs

The world market for data conversion products is

$875.0 million. Analog Devices is the market leader in all segments of this market, with a 24.9 percent market share. The applications for the digital-toanalog (DAC) or analog-to-digital converters (ADC) are widespread, with the most growth potential in the computer peripherals and consumer markets.

Analog has become the leading supplier of RAM digital analog converters (DACs) used in plug-in

VGA display cards for standard PCs. More recendy, it has moved toward greater participation in this market with the AD7146 Continuous Edge Graphics (CEG)

DAC, which makes it possible to display photographic-quality images on a standard VGA PC screen. The company has also begun sampling its

AD7150 true color video DAC, which Analog feels is the key to the next major advance in large-screen workstation graphics.

Consumer Products ICs

The company's initial entries into consumer products markets were D/A converters used in CD players.

Future products will be primarily aimed at high-end products, including DAT recorders, audio/visual receivers, and projection television receivers. One of the company's most recent ICs in this category is its fully mtegrated SSM-2125 Dolby Surround Sound decoder.

Analog is also pursuing opportunities in the automotive market, with a particular focus on "smart sensors," which are sensors that include on-board conditioning. Analog's Hall effect and current sensors are designed into passenger cars in the United States and

Europe. The company has also begun sampling its proprietary micromachined accelerometer, which is potentially suitable for such applications as sensing deceleration to trigger airbag deployment in the event of a car accident

Further Information

For further information about Analog Devices' business segments, please contact Dataquest's Semiconductors Worldwide service.

0010346

©1991 Dataquest Incorporated September—Reproduction Prohibited

Analog Devices Inc.

Table 1

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

Five-Year Revenue

Percent Change

1986

334.4

3.72

1987

370.4

10.77

Capital Expenditure

Percent of Revenue

36.7

10.97

43.0

11.61

45.3

13.55

56.0

15.12

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

4,959

67.43

23.4

•21.21

5,219

70.97

18.7

-20.09

1990 Fiscal Year

Quarterly Revenue

Quarterly Profit

Ql

109.7

0.8

1988

439.2

18.57

49.2

11.20

60.5

13.78

5,347

82.14

38.0

103.21

1989

453.4

3.23

51.0

11.25

68.9

15.20

5,213

86.97

27.9

-26.58

1990

485.2

7.01

39.0

8.04

80.3

16.55

5,700

85.13

-12.9

-146.24

Q2

116.4

4.7

Q3

120.7

5.2

Q4

138.5

-23.6

Source: Analog Devices Inc.

Annual Reports and Fbnns 10-K

Dataquest (September 1991)

Table 2

Revenue by Geographic Region (Percent)

Region

North America

Europe

Asia

1986

56.00

31.00

13.00

1987

57.00

29.00

14.00

1988

55.74

27.98

16.28

1989

55.60

29.20

15.20

1990

53.20

31.47

15.33

Source: Analog Devices Inc.

Annual Reports and Forms 10-K

Dataquest (September 1991)

©1991 Dataquest Incorporated September—Reproduction Prohibited

0010846

Analog Devices Inc.

1990 SALES OFFICE LOCATIONS

North America—^25

Europe—^25

Japan—^3

ROW—3

All Others—3

MANUFACTURING LOCATIONS

Analog Devices Ltd. (United Kingdom)

Analog Devices Marketing Ltd. (United Kingdom)

Analog Devices Nederland B.V (Netherlands)

Analog Devices S.A. (France)

Analog Devices S.A. (Switzerland)

Analog Devices S.r.l. (Italy)

Memory Devices Ltd. (United Kingdom)

ROW

Analog Devices Finance Bermuda Ltd. (Bermuda)

Analog Devices Finance N.V. (Netherlands Antilles)

Analog Devices Inc. (Philippines)

Analog Devices Israel Inc. (Israel)

North America

Norwood, Massachusetts

Assembly of technology products

Santa Qara, California

Precision Monolithics division; bipolar and CMOS

ICs

Wilmington, Massachusetts

Bipolar, mixed-signal, and CMOS ICs

Japan

Tokyo, Japan

Assembly and testing for electronic components

Europe

Limerick, Ireland

CMOS ICs

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

1990

Edsun Laboratories

Analog Devices and Edsun signed an agreement forming an alliance for the development, manufacturing, and marketing of a new line of PC graphics

ICs. The alliance will blend Analog's mixed-signal and DSP knowledge with Edsun's continuous edge graphics (CEG) architecture.

Sipex Corporation

Analog agreed to exchange technology and second-source products with Sipex Corporation.

Sipex will acquire Analog's mixed-signal

BiCMOS technology, and Sipex will make line drivers and receivers in return.

ROW

Manila, PhOippiaes

Assembly of electronic components

SUBSIDIARIES

1988

Brooktree Corporation

Brooktree signed Analog Devices as a second source of die Bt471 and Bt478 video DACs, which are designed for the PSy2 and VGA add-in boards.

North America

Analog Devices International Inc. (Massachusetts)

Analog Devices International Sales Corp. (Delaware)

MERGERS AND ACQUISITIONS

Europe

Analog Devices A.B. (Sweden)

Analog Devices

Analog Devices

A.S. (Denmark)

Analog Devices

(Netiierlands)

B.V. (Netherlands)

Foreign Sales Corp. B.V.

Analog Devices

Analog Devices

Analog Devices

Analog Devices

GmbH (Germany)

Hardelsgesellschaft mbH (Austria)

Holdings B.V. (Netherlands)

Ltd. (Scotland)

1990

Precision Monolithics Inc.

Analog purchased Precision Monolithics Inc.

(PMI) from Bourns for $60.5 million in cash in addition to warrants for 1 miUion shares of Analog

Devices' stock valued at $12 per share. The purchase allows Analog to move into Silicon Valley for the first time, as well as acquire PMI's primary product lines of precision op amps, data conversion circuits, and voltage references.

0010846

©1991 Dataquest Incorporated September—Reproduction Prohibited

Analog Devices Inc.

KEY OFFICERS

Ray Stata

Chairman of the board, president

Jerald G. Fishman

Executive vice president

Joseph M. Hinchey

Senior vice president. Finance

Melvin J. Sallen

Senior vice president

Arnold F. Kanarick

Vice president. Human Resources

Joseph E. McDonough

"V^ce president and treasurer

PRINCIPAL INVESTORS

Ray Stata

Matthew Lorber

FOUNDERS

Ray Stata

Matthew Lorber

©1991 Dataquest Incorporated September—Reproduction Prohibited

0010846

Analog Devices Inc.

Table 3

Comprehensive Financial Statement

Fiscal Year Ending October 29

(Millions of U.S. Dollars, except Per Share Data)

Balance Sheet 1986

Total Current Assets

Cash

Receivables

Inventory

Other Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Total Shareholders' Equity

Converted Preferred Stock

Common Stock

Other Equity

Retained Earnings

Total Liabilities and

Shareholders' Equity 369.1

59.9

20.2

18.5

98.6

270.5

0.1

7.4

114.5

148.5

161.8

6.3

65.6

79.1

10.8

173.2

34.1

369.1

Income Statement

Revenue

U.S. Revenue

Non-U.S. Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

0.51

-

5.88

1986

334.4

188.8

145.6

151.4

45.3

97.4

36.7

32.1

9.60

27.00

23.4

46.0

397.3

1987

370.4

212.3

158.1

171.7

56.0

108.2

43.0

25.6

6.91

27.00

18.7

46.6

1987

57.7

23.4

18.7

99.7

297.5

0.1

7.6

122.6

167.2

176.4

5.8

76.3

83.8

10.5

186.2

34.7

397.3

0.40

-

6.39

449.4

1988

439.2

244.8

194.4

200.8

60.5

122.5

49.2

51.6

11.75

26.00

38.0

47.7

1988

72.8

18.5

16.9

108.2

341.2

0.1

7.8

128.2

205.1

221.3

22.7

87.9

97.4

13.3

200.7

27.4

449.4

0.80

-

7.15

452.5

1989

453.4

252.1

201.3

215.1

68.9

125.5

51.0

36.4

8.03

23.00

27.9

48.3

1989

63.2

10.3

15.7

89.2

363.3

0.1

8.1

122.1

233.0

223.0

30.2

81.7

97.5

13.8

208.7

20.8

452.5

0.58

-

7.52

487.2

1990

485.2

258.1

227.1

244.3

80.3

135.9

39.0

-13.6

-2.80

5.00

-12.9

46.9

1990

106.4

22.8

15.3

144.5

342.7

0

8.2

114.4

220.1

232.4

8.3

97.6

107.6

18.9

223.9

30.9

487.2

-0.28

-

7.31

0010846

©1991 Dataquest Incorporated September—Reproduction Prohibited

Analog Devices Inc.

Table 3 (Continued)

Comprehensive Financial Statement

Fiscal Year Ending October 29

(Millions of U.S. Dollars, except Per Share Data)

Key Financial Ratios

1986

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue ($K)/Employee

Capital Spending % of Assets

2.70

136.45

22.14

36.45

6.34

8.65

7.00

13.55

10.97

4,959

67.43

9.94

1987

3.06

133.55

19.38

33.52

4.71

6.28

5.05

15.12

11.61

5,219

70.97

10.82

1988 1989 1990

3.04

131.71

21.34

31.71

3.53

124.45

17.40

24.55

2.18

142.17

31.05

42.17

8.46

11.14

8.65

6.17

7.68

6.15

-2.65

-3.76

-2.66

13.78

11.20

5,347

82.14

10.95

15.20

11.25

5,213

86.97

11.27

16.55

8.04

5,700

85.13

8.00

Source: Analog Devices Inc.

Annual Report and Forms 10-K

Dataquest (September 1991)

a

©1991 Dataquest Incorporated September—Reproduction Prohibited

0 0 1 0 8 ^

ASEA Brown Boveri

BACKGROUND AND OVERVIEW

In November 1987, ASEA of Sweden merged with Brown Boveri of Switzerland to form the world's biggest electrical engineering concern, called ASEA Brown Boveri, with estimated sales of $14 billion a year. The new group started trading on January 1, 1988.

Substantial restructuring is expected at both companies; these changes eventually will mean that greater pressure will be placed on some of ASEA Brown Boveri's weaker competitors in electrical engineering.

ASEA Brown Boveri is to be organized into the following four main business areas:

• Power plants—Covering steam and gas turbines, hydropower, nuclear power, thermal power plants for utilities and industry, and power plant control

• Power transmission—Including high-voltage switch gear, power transmission systems, power network control, transformers and components, relays, and cable and wire

• Power distribution—Including low-voltage systems and control equipment, electrical installation, medium-voltage apparatus and systems, and industrial switch gear

• Industrial equipment—Including electric drives, industrial plants, metallurgy, automation, and oil and gas

ASEA Brown Boveri, which will be the world's biggest electrical engineering concern, will have about 30 separate business areas, falling both within and outside the

4 main business areas. Those outside the 4 main business areas include Flaekt, ASEA's gas and air treatment subsidiary; SAE, Brown Boveri's line-building group in Italy; and instrumentation companies in the Kent group.

Tables 1 and 2 show ASEA-Hafo's European and worldwide semiconductor revenue from 1983 through 1986. Tables 3 and 4 show Brown Boveri European and worldwide semiconductor revenue from 1983 through 1986.

As shown in Table 5, Dataquest estimates that ASEA Brown Boveri's Eun^sean semiconductor revenue was $72 million in 1987. Table 6 shows Dataquest's estimates of the Company's worldwide semiconductor revenue.

ESIS Volume III © 1988 Dataquest Incorporated June

0000542

ASEA Brown Boveri

Table 1

ASEA-Hafo AB

Estimated European Semiconductcx* Revenue by Product Line

(Millions of U.S. Dollars)

1993

1994

1995 1995

:al Semiconductor

$14 $21 $25 $32

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

$ 7

0

7

0

$ 4

0

0

2

2

$12

0

12

0

$ 5

0

0

2

3

$15

0

15

0

$ 5

0

0

2

3

$ 3

$ 4 $ 5

$ 6

$19

0

19

0

$ 7

0

0

4

3

Table 2

ASEA-Hafo AB

Estimated Worldwide Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

1993

1984

1995

1986 al Semiconductor $14

$22 $28

$35

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

$ 7

0

7

0

$ 4

0

0

2

2

$13

0

13

0

$ 5

0

0

2

3

$18

0

18

0

$ 5

0

0

2

3

$22

0

22

0

$ 7

0

0

4

3

Total Optoelectronic $ 3 $ 4

$ 5

$ 6

June 1988

© 1988 Dataquest Incorporated June

ESIS Volume m

0000542

ASEA Brown Boveri

Table 3

Brown Boveri

Estimated Eur(^>ean SemioHiductor Revenue by Product Line

(Millions of U.S. Dollars)

ISM ISM 2M5. ISM

Total Semiconductor

$18

$22 $24 $26

Total Integrated Circuit

Bipolar Digital

MOS

Linear

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

$18

6

7

3

2

$22

7

8

4

3

$24

8

8

5

3

$26

0

9

16

1 al Semiconductor

Table 4

Brown Boveri

Estimated Worldwide Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

1983

12M

1985 1986

$20 $25 $29

$29

Total Integrated Circuit

Bipolar Digital

MOS

Linear

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

$20

6

7

5

2

0

$25

7

8

7

3

0

$29

8

9

9

3

0

$32

0

12

18

2

0

June 1988

ESIS Volume HI

0000542

© 1988 Dataquest Incorporated June

ASEA Brown Boveri

Table 5

ASEA Brown Boveri

Estimated Eur(q>ean Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

1987

Total Semiconductor

$72

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

$23

0

23

0

$44

1

13

22

8

$ 5

Table 6

ASEA Brown Boveri

Estimated Worldwide Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

1987

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

$84

$26

0

26

0

$50

1

15

24

10

$ 8

Source: Dataquest

June 1988

© 1988 Dataquest Incorporated June

ESIS Volume III

0000542

ASEA Brown Boveri

PRODUCTS AND MARKETS SERVED

ASEA Brown Boveri's expanded markets include Scandinavia (ASEA's strongest market). West Germany, Switzerland, Austria, and Italy (Brown Boveri's strongest market). About two-thirds of the new group's sales will be derived from Europe.

The main products include power generation, transmission, and distribution; railway electrification; industrial process control; automation systems; robots; pollution control equipment; standard products and semifinished goods; and electronics.

OUTLOOK

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

ESIS Volume III © 1988 Dataquest Incorporated June

0000542

Austria Mikro Systeme International GmbH

BACKGROUND AND OVERVIEW

Austria Mikro Systeme International GmbH (AMS), formerly Austria Microsystems

International (AMI), was set up in 1981 as a joint venture between the company that was then called Gould-American Microsystems, Inc., (51 percent ownership) and Voest-

Alpine, the Austrian industrial conglomerate (49 percent ownership). A $60 million

11,700-square-meter facility was built near Graz, Austria, to manufacture integrated circuits. It comprises design engineering, maskmaking, wafer fabrication, assembly, and test areas. Lead times offered are competitive—4 weeks for gate arrays, 8 weeks for standard cells, 20 weeks for full custom circuits, and 4 weeks for ROMs, from specification or code approval until delivery of first samples.

In autumn 1986, the name Gould-American Microsystems was changed to Gould

Semiconductor Division (supplier of AMI products). Gould Semiconductor Division does not operate in Europe.

In 1982, AMS pioneered SCEPTRE (Standard Cell Placement and Routing

Environment) at its Swindon, United Kingdom, design center. SCEPTRE is a system intended to offer small to medium-size electronic equipment manufacturers a chip design capability at low cost. At present, this system supports designs using AMS's

CMOS and NMOS 3 - , 4-, and 5-micron standard cell families.

In 1985, AMS completed a major investment program and increased its production by

40 percent over 1984. However, because of the depressed market condition, a loss in revenue was reported in 1985. The joint owners, Gould-American Microsystems and

Voest Alpine, then injected a further $33 million into the company to enable it to finance future investments with equity.

In 1986, AMS launched Super Sceptre, a standalone PC-based semicustom IC design workstation for gate array and standard cell. The product provides a full range of semicustom IC design software capabilities running on the IBM PC AT. It is the culmination of four years of user experience with the Sceptre and its enhanced version,

Sceptre II.

Also in 1986, AMS launched a commercial MOS multiproduct wafer service through which customers can cut their development costs. To accomplish this, customers can share a batch of wafers with other clients or can place several of their chip designs on a fast turnaround, dedicated wafer batch.

In February 1987, AMS announced expansion of its mask processing capability. At the same time, the Company announced the S2570 combined loop disconnect/multifrequency (LD/MF) dialer IC for push-button telephones.

In March 1987, AMS announced the S2573, a new pulse dialer IC in €MOS for push-button telephones.

In April 1987, AMS announced the S2571 pulse dialer device in CMOS for push-button telephones. At the same time, the Company added high-performance analog, digital, and peripheral cells to its IC design library.

ESIS Volume III © 1988 Dataquest Incorporated April

Austria Mikro Systeme International GmbH

As shown in Table 1, Dataquest estimates that AMS's European revenue in 1986 was

US$21 million.

Table 1

Austria Mikro Systeme International GmbH

Estimated European Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

T o t a l D i s c r e t e

T r a n s i s t o r

Diode

T h y r i s t o r

Other

T o t a l O p t o e l e c t r o n i c

1982

$26

$26

0

26

0

0

0

0

0

0

1983

$13

$13

0

13

0

0

0

0

0

0

1984

$20

$20

0

20

0

0

0

0

0

0

1985

$18

$18

0

18

0

0

0

0

0

0

1986

$21

$21

0

21

0

0

0

0

0

0

S o u r c e : D a t a q u e s t

A p r i l 1988

PRODUCTS AND MARKETS SERVED

AMS offers a complete range of custom and semicustom MOS/VLSI capabilities, including gate arrays, standard cell, and full custom circuits, as well as silicon foundry facilities for customer-designed circuits. CAD/CAE tools and IC design training are also available.

AMS's telecommunications and data communications circuits, ROMs, microcomputers, and peripheral devices provide standard solutions for specific applications.

AMS serves the telecommunications, automotive, industrial, instrumentation, EDP, and consumer markets.

© 1988 Dataquest Incorporated April

ESIS Volume III

Austria Mikro Systeme International GmbH

In addition to the Graz facility, AMS has design centers in Swindon (United

Kingdom), Stockholm (Sweden), Munich and Hamburg (West Germany), Paris (France), and Milan (Italy). The Company has a network of representatives in Denmark, Israel,

Spain, Switzerland, and Yugoslavia.

OUTLOOK

In July 1987, Gould sold its 51 percent stake in AMI to Voest-Alpine. The takeover means that AMS, now called Austria Mikro Systeme, is now entirely Austrian owned.

Gould stated that it will return to the European marketplace with custom and semicustom chip sets from its U.S. base.

ESIS Volume III © 1988 Dataquest Incorporated April

Ericsson Components AB

INTRODUCTION

On March 1, 1988, Ericsson sold its capacitor business and the RIFA name to Finvest

AB of Finland. All operations, excluding the capacitor business, were transferred to a new company called Ericsson Components AB. Bert Jeppsson is the new Senior Vice

President.

BACKGROUND AND OVERVIEW

Radiolndustrins Fabriks Aktiebolag, known as RIFA, was founded in 1942 to secure the supply of components to Swedish radio companies during the war. Four years later, the company was acquired by LM Ericsson and Asea. Asea turned its shares over to

Ericsson after a few years. In the beginning, RIFA's main product was capacitors for

Ericsson's telephone exchanges.

Export operations were begun on a modest scale during the mid-1960's. Naturally, capacitors dominated. In 1968, Svenska Elektronr5r (SER) merged with RIFA, thus providing know-how covering semiconductors, transistors and diodes.

At the beginning of the 1970s, Ericsson began producing hybrid circuits in thick film to be used in its transmission systems. Integrated circuit (IC) production also began the same year.

The first integrated circuits were exported in 1974. As a complement to bipolar methods developed by the company, NMOS technology was added in 1982. The CMOS process soon followed. In 1984 a production line for components made of gallium arsenide (GaAs) was started up. The following year, the production of Subscriber Line

Interface Circuit (SLIC) was begun for Automated Exchange Equipment (AXE) exchanges.

In 1981 development work was started on power products at RIFA. Two years later, the first products, DC/DC converter modules for telephone exchanges, were introduced on the world market. The same year, Ericsson's power division, with a history dating back to 1878 and with extensive know-how of telecom power, was merged with RIFA.

In March 1988, capacitor production, which accounted for 20 percent of the company's operations, was sold to the Finnish group Finvest AB. This included the name

RIFA, which is intimately joined with capacitors. As a result, activities could be further concentrated on the strategic areas of microelectronics and power supply equipment.

In 1983, the Ericsson Group was reorganized into eight business areas (BAs) listed below, all reporting to the Group executive committee.

• Public telecommunications

• Information systems

ESIS Volume III © 1988 Dataquest Incorporated September

0000770

Ericsson Components AB

Cable

Defense systems

Radio communication

Network engineering and construction

Components (Ericsson Components AB is part of this BA)

Other operations

Table 1 lists statistics for the components business area, and Table 2 lists the turnover figures for the components group external sales.

Ericsson Components has the following three product areas:

• Microcircuits: accounts for approximately 40 percent of total sales.

• Power Systems and Units: accounts for approximately 30 percent of total sales.

• Capacitors and Standard Components: accounts for approximately 30 percent of total sales.

Table 3 shows Dataquest's estimates of Ericsson European semiconductor revenue by product line. For 1987, Dataquest estimates Components European revenue to be U.S.

$34 million.

Table 1

Components Business Area Statistics

(Millions of Swedish Krona)

Net Sales, External

Net Sales, Internal

Total Sales

Operating Income

Employees

1984

1985 1986 1987

SKr 799

426

SKr 852

609

SKr 788

721

SKr 763

1.047

SKrl,225

4,231

SKrl,461

4,343

SKrl,509

SKr 34 SKr 22

SKr 31 SKr 88

3,919

SKrl,810

3,578

Source: Dataquest

September 1988

© 1988 Dataquest Incorporated September ESIS Volume III

0000770

Ericsson Components AB

Table 2

Geographic Distribution of External Sales

(Percent)

Europe, Excluding Sweden

Sweden

Asia

Australia

United States and Canada

Latin America

Africa

T o t a l

1986

41%

21

10

9

4

12

3

100%

1987

48%

24

10

7

6

3

2

100%

Table 3

Ericsson Components*

Estimated European Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

:al Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

1984 1985 1986 1987

$11 $11 $41

$11

9

2

0

$11

9

2

0

$14

$12

5

4

3

$39

12

11

16

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Optoelectronic $ 2 $ 2

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

Source: Dataquest

September 1988

ESIS Volume III

0 0 0 0 7 7 0

© 1988 Dataquest Incorporated September

Ericsson Components AB

(Page intentionally left blank)

© 1988 Dataquest Incorporated September ESIS Volume III

0000770

European Silicon Structures

BACKGROUND AND OVERVIEW

European Silicon Structures GmbH was established in September of 1985 and had

250 employees in May 1988.

The following is a corporate profile for European Silicon Structures GmbH.

Business Centers

Germany (Headg[uarters)

I n d u s t r i e s t r a s s e 17

D-8034 Germering

West Germany

T e l . No. 49 84 84 93 90

F a x . 49 89 84 93 920

T e l e x : 17897453

United Kingdom

GS2 (Business Centre)

Mount Lane

Bracknell, Berkshire

United Kingdom

Tel. No. 0344 54 54 54

Telex: 847724

Fax: 847724

Fax: 034 59412

The Netherlands

ES2 (Business Centre)

Beekvlietstraat 5

P 0 Box 84

5270

KB

Sint-Michielsgestel

Tel No: 31 41 05 3299

Fax No: 31 41 05 4500

Telex: 50760

France

ES2 (Business Centre)

72-78 Grande Rue

92310 Sevres

France

Tel. No. 33 146 26 44 95

Telex: 631439

Fax: 01 33 45071423

Sweden

ES2 (Business Centre)

Chalmers Teknikpark

S-912 88 Gothenburg

Tel No: 46 31 724 215

Fax: 46 10 724 216

United States

US2 (Business Centre)

1971 Concourse Drive

San Jose, CA 95131

U.S.A.

Tel No: 408 435 1355

Fax: 408 435 0504

France

Silicon Manufacturing Centre

Zone Industrielle

13106 Rousset

France

Tel No: 33 42 33 4000

Fax: 33 42 33 4001

Telex: 403147

ESIS Volume III

0001307

© 1988 Dataquest Incorporated September

European Silicon Structures

Company Executives

Position

Name

Prior Company Prior Position

Co-Chairman

Co-Chairman

CEO/Managing

Director

Vice President

Finance/

Administration

Vice President

Manufacturing

Vice President

Software

Technology

Vice President

Operations

Vice President

Northern Europe

Vice President

Central Europe

Vice President

Southern Europe

Robert Heikes

Robert W. Wilmot

NSC

ICL

J.L. Grand-Clement Motorola

Pierre Lesieur

Bernard Pruniauz

Colin Adams

Rod Attwooll

Robin Saxby

H.P. Friedrich

J.P. Demange

Motorola

Thomson CSF

Digital Equipment

Texas Instruments

Motorola

Je rmyn-Ge rmany

NSC

Corporate VP

Chairman

VP Europe Group

Director Finance

Director Operations

Software Manager

Managing Director

Sales Manager

General Manager

VP Strategic

Marketing

Vice President

Technology John Gray

Lattice Logic

Founder

Financing

P»te

1985

December 1985

Round Sources Amount

Initial Advent, London; Techno-Venture $ 5M

Management Corp., Munich

Brown Boveri and Cie. (Switzerland); $40M*

Ing. C. Olivetti & Co. (Italy);

Saab-Scania, AB (Sweden);

N.V. Philips (Netherlands);

Telefonica (Spain)

January 1986

British Aerospace

Honeywell Bull

October 1987

Department of Trade and Industry £328K

•Includes financing from British Aerospace and Honeywell Bull

© 1988 Dataquest Incorporated September

ESIS Volume HI

0001307

European Silicon Structures

Services

• Foxondry

• Design

• Silicon compiler tools

• Manufacturing

• Packaging

• Test

• Education/training

Process Technology

• 2.0-micron double-metal CMOS

• E-beam on 5-inch wafers

• 1.5-micron double-metal (1988)

• 1.25-micron double-metal (1989)

Products

• SOLO 1000

• SOLO 1200

• First SOLO

• 2000 ASIC Design Software

European Silicon Structures (ES2) was formed to supply quick-turnaround full-custom application-specific integrated circuits (ASICs) for European electronic equipment manufacturers. ES2 is dedicated to servicing the ASIC requirements of companies looking for all-layer custom devices. To this end, it is focusing on educating small and medium-size companies on the potential advantages to be gained by using customized chips in their products. Agreements made with Texas Instruments and

Philips offer ES2's customers a pathway into high-volume production. ES2 uses a combination of silicon compilers technology for design and direct-write-on-wafer

E-beam lithography for wafer production. This technology permits chips to be produced by direct writing on a wafer, thus eliminating the costly and time-consuming process of producing a mask for etching the silicon.

ESIS Volume III © 1988 Dataquest Incorporated September 3

0001307

European Silicon Structures

ES2 is incorporated in Luxembourg and headquartered in Munich, West Germany.

Software development is centered in Edinburgh, Scotland, and Bracknell, England.

Originally, Silicon production was carried out in the United States, but it has been transferred to a totally new production plant near Aix-en-Provence in southern France.

ES2 has opened local business centers in Bracknell, England; Sevres, France; Germering,

West Germany; Gothenburg, Sweden; Holland; and San Jose, California (US2).

In addition to the ES2 Business Centers, a wide network of greater than 20 Franchise

Technology Centers (FTCs) have been set up over Europe.

ES2'S PRODUCTS—ASIC DESIGN SOFTWARE

ES2's SOLO family of silicon compiler products is based on Lattice Logic's products. The software places in the hands of electronic engineers ASIC design software capable of back-annotated simulation and layout within the bounds of a desktop system, similar in nature to an MPU development system. A design engineer can re-layout a chip as many times as he needs prior to shipping a tape to ES2 for manufacture.

The software is capable of incorporating random logic, a range of digital blocks, and a range of analog I/O pads into a mixed ASIC. The analog library contains such devices as an ADC, a DAC, operational amplifiers, a voltage reference, and digital oscillators.

The SOLO family includes:

• SOLO 1000, which runs on a variety of workstations such as Sun, Apollo, and

Digital and can integrate up to 10,000 gates

• The SOLO 1200 system, which includes blocks and a comprehensive analog library

• First SOLO, which runs on a PC with the addition of a coprocessor card

In addition to the SOLO family, ES2 also distributes in Europe SDA's set of full-custom design tools, which are designed to support the requirements of even the most experienced IC designers.

Silicon Manufacturing Services

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

© 1988 Dataquest Incorporated September ESIS Volume ni

0001307

European Silicon Structures

Volume Production

Once prototyped, ES2 can support volume production. If the quantity is low (10 to

5,000), it will be produced via E-beam technology; but if the volume is sufficiently high, it is cheaper to use conventional mask production. ES2 can handle the transparent transfer of a design to one of its foundry partners.

To help companies understand ASIC technology and IC design software and to minimize the trauma of a first design, ES2 has put in place education and design consultancy groups. These operate from all the local ES2 Business Centers.

ALLIANCES

Lattice Logic

1985

January 1986

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

British Aerospace invested $5 million in ES2.

British

Aerospace

SDA Systems

Texas

Instruments

Philips

Tektronix

January 1986

March 1987

ES2 signed a key marketing agreement with

Solomon Design Associates (SDA) Systems.

Under this agreement, ES2 will market SDA design systems throughout Europe and will also use them in a number o£ planned design centers. SDA's Designer Edge series of EDA systems will be installed in all ES2 design center locations.

December 1986

ES2 signed an agreement to ensure that Texas

Instruments and ES2 adopt a common approach in their design methods for semicustom chips.

Texas Instruments has a similar agreement with Philips, allowing the three companies to offer a wide range of choice, with ES2 concentrating on very low-voliune products and

TI and Philips on larger volume.

Tektronix and ES2 collaborated to make ES2's

ASIC library available on Tek's CAE2000 systems, with an interface called CADLINK-T.

ESIS Volume ffl

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© 1988 Dataquest Incorporated September

European Silicon Structures

Philips March 1988 Philips has agreed to adopt the proprietary

E-beam direct-write technology of ES2 for high-voliune production of ASICs. Conversely/

ES2 has agreed to apply to the manufacture of its own ASIC prototypes. Philips'

1.5-micron dual-layer metal CMOS process, which together with Philips, it will take down to 1.2 microns by the end of 1988.

COMPANY HIGHLIGHTS

December 1985

Six European companies invested $25 million, representing

39 percent of ES2.

January 1986

British Aerospace invested $5 million in ES2.

ES2 signed a key marketing agreement with Solomon Design

Associates (SDA) Systems. Under this agreement, ES2 will market SDA design systems throughout Europe and will also use them in a number of planned design centers. SDA's

Designer Edge series will be installed in all ES2 design center locations.

April 1986

ES2 announced its first contract—a $60,000 deal with a

Belgian design center to supply two SOLO Electronic CAE systems based on the Vlhitecbapel workstation and the Lattice

Logic compilation software tools.

June 1986

First Quarter

1986

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

ES2 received its first orders and made its first shipment, with the shipments coming from the sale of software and design services. The Company plans to have

an

ES2 proprietary software product that will represent the first step toward the behavioral compiler by the second half of

1987. A complete behavioral compiler will be introduced one year later. Expected worldwide sales for The Company are

$5 million in the first 12 months of operation.

February 1987 Gothic Crellon became an ASIC design broker for ES2. Gothic

Crellon will do introductory design work and will sell the

ES2 range of chip design tools.

© 1988 Dataquest Incorpwrated September

ESIS Volume m

0001307

European Silicon Structures

March 1987

April 1987

July 1987

October 1987

March 1988

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

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

United Silicon Structures US2, a wholly owned subsidiary of

ES2, was launched at the Design Automation Show in Miami,

Florida. US2 has its headquarters in San Jose and offers the full range of ES2 products to the U.S. market.

ES2 opened for foundry business at Rousset, France. ES2 unveiled an enhanced set of ASIC design tools, its SOLO

1200, to coincide with the opening of the Rousset plant.

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

Business Centers in Europe.

ESIS Volume HI

0001307

© 1988 Dataquest Incorporated September

Eurosil Electronic GmbH

BACKGROUND AND OVERVIEW

Eurosil Electronic GmbH (Eurosil) was formed in 1967 by Jean Hoemi, one of the founders of Fairchild Semiconductor Corporation. Mr. Hoemi previously founded

Intersil, although apart from this link, the two companies remained independent. The

Company was taken over by the Diehl Groi^, the West German industrial and commercial products company, in 1972.

Eurosil originally supplied integrated circuits for the watch, clock, and telecommionications industries. Subsequently, the Company e}q)anded into other consumer areas including integrated circuits for hand-held, flat screen pocket games.

Early in 1982, United Technologies Corporation GJTC), the U.S. conglomerate, through its Mostek subsidiary, and Telefunken Electronic GmbH, the West German semiconductor company, bought the majority of the Eurosil equity from Diehl. Together with the Diehl Group, they formed a new joint-venture company. The Diehl Group retained 13 percent of the shares, with Mostek and Telefunken Electronic GmbH splitting the remainder equally.

The agreement was for the new company to take over the activities and assets of

Diehl's Eurosil GmbH. The new joint venture would concentrate its activities in the development, production, and marketing of customized integrated circuits and CAD software services.

In mid-1986, UTC sold off its 49 percent stake in Eurosil Electronic, although it still holds a 49 percent share in Telefunken Electronics GmbH. Telefunken Electronics GmbH has raised its stake in Eurosil from 49 percent through UTC's disposal. Telefunken

Electronic GmbH now has obtained total management responsibility for the former joint venture.

PRODUCTS AND MARKETS SERVED

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

OUTLOOK

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

Tables 1 and 2.

ESIS Volume III © 1989 Dataquest Incorporated January

0002204

Eurosil Electronic GmbH

Table 1

Eurosil Electronic GmbH

Estimated EunY>ean Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

1983

1 M 4

1985

199^

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

$8

$8

0

8

0

0

0

0

0

0

$10

$10

0

10

0

0

0

0

0

0

$10

$10

0

10

0

0

0

0

0

0

$14

$14

0

14

0

0

0

0

0

0

Source: Dataguest

January 1989

1997

$11

$11

0

11

0

0

0

0

0

0

Table 2

Eurosil Electnmic GmbH

Estimated Worldwide Semioxiductor Revenue by Product Line

(Millions of U.S. Dollars)

2M1

1994 1995

2M&

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

$15

$15

0

15

0

0

0

0

0

0

$20

$20

0

20

0

0

0

0

0

0

$21

21

0

21

0

0

0

0

0

0

$32

$32

0

32

0

0

0

0

0

0

Source: Dataguest

January 1989

1997

$25

$25

0

25

0

0

0

0

0

0

© 1989 Dataquest Incorporated January ESIS Volume HI

0002204

Ferranti pic

BACKGROUND AND OVERVIEW

Ferranti pic, which was incorporated in 1905, has its origins In the business formed by Sebastian Ziani de Ferranti in 1882 to manufacture the alternator invented independently by himself and Sir William Thomson. Mr. de Ferranti's interest in the electrical field led to subsequent inventions and the expansion of his business to include the manufacture of alternators, meters, transformers, fuses, and switch gear.

The Company ran into financial difficulties in 1974, but was rescued by the

U.K. government through the National Enterprise Board (NEB) with a £15 million investment. This investment gave the NEB 62.5 percent of the Company's equity. The

NEB holding subsequently was reduced to 50 percent in 1978 and was reduced again in

July 1980 when the majority of the NEB's holdings were placed with various financial institutions in London and in Scotland. It was a condition of this placement that the shares would not be traded for two years. The equity is held widely by financial institutions and the public, with Ferranti family interests retaining a minority holding.

In 1977, Ferranti acquired Interdesign Inc., a Sunnyvale, California, compariy founded in 1970 to provide application-specific integrated circuits (ASICs). This complemented the ASIC gate array—uncommitted logic array (ULA)—activity already firmly established by Ferranti in the United Kingdom since the 1970s. Interdesign is now one of the leading U.S. manufacturers of integrated circuits.

In 1982, Ferranti joined forces with the Wheelock Marden Group of Hong Kong to form a new company for the design and manufacture of ASICs for the Far East electronics industry. The new company is called Ferranti Wheelock Microelectronics

Limited and is the first company in Hong Kong to offer such design and manufacturing facilities.

In January 1984, as a result of its continuing success in ASICs, Ferranti completed and opened a new wafer fabrication and assembly facility for integrated circuits in

Oldham. Manchester, the United Kingdom. This facility consists of 85,000 square feet of production area and is capable of producing 7,000 4-inch wafers per week in the class

10 clean-room area. Also in early 1984, Ferranti bought TRW Control Corp. of Texas, to broaden its market base in the United States.

In September 1987, Ferranti and International Signal and Control GSC) announced

that they were to merge.

In November 1987, Ferranti sold its semiconductor division to Plessey for

$49 million. Ferranti Semiconductor had assets valued at $64 million and worldwide semiconductor revenue of $102 million for 1987. Ferranti employs 2,000 people in its

semiconductor operation.

ESIS Volume III © 1988 Dataquest Incorporated September

0000830

Ferranti pic

Ferranti pic is currently divided into six main business areas:

• Ferranti Defense Systems

• Ferranti Industrial Electronics

• Ferranti Computer Systems

• Ferranti Electronics

• Ferranti Instrumentation

• Ferranti Other Activities

- Ferranti GTE

- Ferranti Engineering

Ferranti Venus Scientific

As shown in Table 1, Dataquest estimates that Ferranti's European semiconductor revenue in 1987 was $67 million; worldwide revenue was an estimated $102 million, as shown in Table 2.

© 1988 Dataquest Incorporated September

ESIS Volume m

0000830

Ferranti pic

Table 1

Ferranti pic

Estimated £ur(^>ean Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

1994

$67

$52

26

8

18

$15

8

7

0

0

199?

$65

$50

28

4

18

$15

8

7

0

0

1986

$66

$52

29

4

19

$14

5

9

0

0

1-997

$67

$51

26

4

21

$16

6

10

0

Source: Dataquest

September 1988

ESIS Volume HI

0000830

© 1988 Dataquest Incorporated September

Ferranti pic

Table 2

Ferranti pic

Estimated Worldwide Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

1994

$105

$ 85

46

12

27

$ 20

11

9

0

0

1995

$98

$78

49

6

23

$20

11

9

0

0

199^

$95

$78

43

11

24

$17

8

9

0

0

1987

$102

$ 80

37

12

31

$22

9

13

0

0

Source:

Dataquest

September 1988

OUTLOOK

Dataquest believes that acquiring Ferranti clearly is a step in the right direction for

Plessey. The purchase of Ferranti will help Plessey considerably in its efforts to penetrate European and North American markets. Ferranti has a markedly higher marketing profile in North America than Plessey. The increased revenue will help support Plessey's R&D activities in the ASIC product range. Plessey will also benefit from Ferranti's technology and existing customer base.

The emerging company looks decidedly ASIC in nature. But a closer inspection shows that the useful technology that Ferranti brings to Plessey is its mixed analog/digital expertise. The resulting ASIC capability would be enhanced with a core

CPU and high-density memory cells. This may well lead Plessey to look for other acquisitions, and with $389 million in cash in the bank, there may be more expansion in the pipeline.

Tables 3 and 4 show Dataquest's estimate of Plessey and Ferranti's 1987 European and worldwide semiconductor revenue.

© 1988 Dataquest Incorporated September

ESIS Volume HI

0000830

Ferranti pic

Table 3

Plessey and Ferranti

Estimated 1987 Eur<Y>ean Semiconductor Revenue

(Millions of U.S. Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

Plessey

$84

$69

15

31

23

0

0

0

0

0

$15

Ferranti

$67

$51

26

4

21

$16

6

10

0

0

$151

$120

41

35

44

$ 16

6

10

0

0

$ 15

Source: Dataquest

September 1988

ESIS Volume UI

0000830

© 1988 Dataquest Incorporated September

Ferranti pic

Table 4

Plessey and Ferranti

Estimated 1987 Worldwide Semiconductor Revenue

(Millions of U.S. Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

Plessey

$120

$103

31

39

33

0

0

0

0

$ 17

Ferranti

$102

$ 80

37

12

31

$ 22

9

13

0

0

$222

$183

68

51

64

$ 22

9

13

0

0

$ 17

Source: Dataquest

September 1988

© 1988 Dataquest Incorporated September

ESIS Volume HI

0000830

Company Backgrounder by Dataquest

Fujitsu Limited

6-1, Marunouchi 1-chome

Chiyoda-ku, Tokyo 100, Japan

Telephone: 03-3216-3211

Fax: 03-3216-9365

Dun's Number: 08-292-1644

Date Founded: 1935

CORPORATE STRATEGIC DIRECTION

Fujitsu Limited, founded in 1935 as a spin-off of the

Communications Division of Fuji Electric Company

Ltd., is a multinational Japanese firm. Fujitsu designs, manufactures, and markets computers and information processing systems, telecommunications equipment, and electronic devices. To organize and unify such a diverse product offering, Fujitsu has segmented its corporate structure into the abovementioned main divisions, as well as a category called "Other Operations," which includes electronic products such as car stereos, CD players, and digital audiotape players.

United Kingdom and Germany came nearer to completion, while the system between Japan and the

United States went into operation.

Since the 1Mb DRAM market remained depressed in the world marke^lace, business in electronic devices was difficult Fujitsu, however, expanded the sales of its products in ASICs, microprocessors, and compoimd semiconductors.

Although worldwide economic growth was slower than expected because of the Gulf War and a slowdown in U.S. and European economies, Fujitsu experienced a significant growth in btisiness. The company had an increase of almost 18 percent in total revenue fi-om $17.8 billion* in fiscal year 1990 to $21.0 billion in fiscal 1991. To achieve this growth, Fujitsu, as a total systems suppUer, endeavored to offer a wide range of products from largescale systems to personal equipment

Almost 70 percent of Fujitsu's revenue was derived fi-om the Computers and Infonnation Processing Systems Division. The greatest focus in this division was on M Series general-purpose computers, UNIX open systems, and advanced value-added software services.

Also showing considerable growth was the demand for office machines and personal equipment

According to Fujitsu, significant changes are occurring in the industry in downsizing, networks, and open systems. The company believes that these changes will define the technology that will be developed in the 1990s. Although downsizing has reduced their size and weight, products are being created with greater power and performance.

Fujitsu has continued to develop products that directly support Intematioiud Service Digital Network

(ISDN) and to offer Corporate Information Network

System (COINS), which can be tailored to meet individual company needs. In addition, Fujitsu announced Multi-environment Information Systems

Solution by Domain Concept (MISSION/DC), a domain-based mainframe concept diat gives users the flexibility necessary to structure the systems they need. Fujitsu also announced a new approach to netwodc system construction tliat offers a user-friendly connection to Fujitsu mainframes from workstations and PCs. This product is called

MESSAGE 90s.

In the telecommunications field, Fujitsu supplied synchronous digital hierarchy (SDH) equipment to

Nippon Telegraph and Telephone Corporation ( N i l ) in Japan and pioneered synchronous optical transmission (SONET) systems in the United States. In addition, the optical submarine cable system between the

*A11 dollar amounts are in U.S. dollars.

In the field of open systems, Fujitsu is promoting worldwide standardization of the UNIX operating system across industries, offering a full lineup of

UNIX products from workstations to supercomputers.

The company also developed the first operating system for mainframes and supercomputers to use UNIX

System V Release 4. Other computers across the

©1991 Dataquest Incorporated December—^Reproduction Prohibited

0012369

Fujitsu Limited

Fujitsu product line will be developed to run under this operating system.

In 1990, Fujitsu took a major step toward increasing its global presence by acquiring an 80 percent share in ICL pic, a computer unit of STC pic In January

1991, as the first joiM project between the two companies, Fujitsu began the marketing of DS/90 UNIX server systems, developed by ICL and distributed through Fujitsu's overseas marketing network.

More detailed infoimation is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highfights and revenue by region. Tnfnrmatinn on revenue by distribution channel is not available. Tables 3 through 7, at the end of this backgrounder, present comprehensive financial infomiadoiL supercomputers. The new systems, the VP2400/40 and VP2200/40, feature a four-scalar processor, twovector processor configuration, which enables enhanced high-speed program processing,

In September 1990, Fujitsu annoimced the M-1800

Model Group of large-scale computers, which consists of five models. This was the first product introduction within the framework of MISSION/DC.

Fujitsu plans to have the MISSION/DC be a major influence on its future product introductions.

Research and development costs were 11,1 percent of revenue in fiscal 1991. Hiis increase represents

$2.3 billion as compared to $2.1 billion for 1990.

R&D continues to be an important part of Fujitsu's future strategy. During fiscal 1991, the R&D fiinds were used to maintain the company's position as a pioneer in the competitive field of electronics. Future

R&D products produced by Fujitsu will be more powerfiil and targeted at customer networks, especially at the low end such as hand-held PCs and cellular telephones.

According to Dataquest, in the worldwide business supercomputer market, Fujitsu ranks first with a

56.03 percent market share for 1990; in the worldwide technical supercomputer market, it ranks fourth with a 9.39 percent market share. In the worldwide business mainfiame market, Fujitsu ranks fourth, with a 5.01 percent market share. In the worldwide technical mainframe market, it also ranks fourth with a 7.44 percent market share. Finally, in the worldwide business midrange market, Fujitsu ranks fifth with 5.56 percent of the market share.

Office Automation

Within the ofi&ce automation product line, Fujitsu ofifers small business computers, workstations, word processors, and personal computers, including business, hyperaiedia, desktop, portable, and laptop. In the worldwide personal computer market, including desktop, portable, laptop, and notebooks, Fujitsu had less than 1 percent of the market share in each of these categories.

BUSINESS SEGMENT STRATEGIC

DIRECTION

Computers and Data Processing

The Computers and Information Processing Systems

Division's net sales increased approximately 23.1 percent to $14.6 billion in fiscal 1991, accounting for

69 percent of the company's total net sales. This increase was mainly due to weU-received mainframe systems, including the new M-1800 group of verylarge-scale general-purpose computers, and to the strong performance of office machines and personal equipment in the domestic market, as well as the contribution of ICL.

Computer Systems

Within the computer systems product line, Fujitsu offers products from supercomputers to generalpurpose computers. In August 1991, Fujitsu

'introduced two new models of the VP2000 Series

VAN Services

^ t h i n the VAN services product line, Fujitsu offers industry VANs, local VANs, corporate VANs, and personal communications services. During fiscal

1991, Fujitsu expanded the FENICS VAN service network, enhanced database services, and started

FENICS-INS packet-switehed services. To respond to the expansion of international VAN services in Asia,

Fujitsu started a data switehing service between Japan and Singapore. In addition, the NUTY-Serve personal computer commimications service was expanded to include English-to-Japanese machine translation, electronic niail, facsimile, and other services. As of

March 31, 1991, this service has more than 260,000 subscribers.

Computer Storage

Fujitsu built its reputation in the rigid disk drive market with solutions for high-end computers. The

©1991 Dataquest Incorporated December—^Reproduction Prohibited

0012369

Fujitsu Limited company produces rigid dislc drives in a variety of sizes from 2.5-inch to 14-inch. According to

Dataquest, during 1990 Fujitsu ranked eighth in the worldwide overall total rigid disk drive market with a

2.9 percent market share. In the 8- to 14-inch worldwide rigid disk drive maiket, it ranked fourth with a 13.8 percent market share. and the C-NAP n/CASE technical support tool for analyzing system requirements. Also, to expand the computer-integrated manufacturing business, the company started consulting and basic planning services to support system structuring in the fields of production and product distribution.

In September 1990, Fujitsu announced the M2671P, an 8-inch disk drive that provides 2.6GB of storage and o&as a data transfer rate of 4.78 MB/sec. and a seek time of less than 12ms.

ID September 1991, Fujitsu introduced a line of h i ^ capacity, low-profile, 2.5-inch rigid disk drives. This product line consists of three disk drives all backed by a 150,000 hour mean time between failures rating, a comprehensive warranty program, and capacities of

45MB, 67MB, and 90MB. All four drives feahne an average seek time of 18ms, burst data transfer rates of up to 6 MB/sec, and an average latency of 8.3ins.

Fujitsu also produces tape drives in 1/2-inch reelto-reel, start-stop, and streaming. During calendar

1990, according to Dataquest, Fujitsu ranked fourth in the 1/2-inch worldwide tape drive market with a 9.0 percent market share. It also ranked fifth in the 1/2-inch worldwide reel-to-reel worldwide t^)e drive market with a 7.3 percent market share.

Electronic Printers

The company manufactures and markets lineimpacted, fully formed printers, serial impact dot matrix printers, baud printers, and laser printers.

According to Dataquest, during 1990 the company had less than 1 percent of the total worldwide printer market.

Telecommunications

The Telecommunications Division's product line is

ISDN systems, COINS, mobUe communication, switching systems, and transmission systems. In fiscal

1991, the division recorded net sales of $3.1 billion, an increase of approximately 13 percent over fiscal

1990. Net sales of the division accounted for

15 percent of total net sales.

ISDN

NTT's new ISDN service INS net 64/1500 is achieving acceptance, and many users are applying the network to fit their applications. In fiscal 1991, the packet communications mode in INS net was approved and the new INS-P service was started. In addition, demand increased for the ISDN-compatible systems, which support the entire scope of these

ISDN services.

COINS

COINS is a corporate information network system that is receiving significant interest from companies as a multimedia network with excellent economy and extendability. It integrates data, voice, and images. By die end of March 1991, Fujitsu had strengthened

COINS to implement ISDN communications forms by adding 1.5Mb line-switcMng and packet-switching functions to conventional private ISDN functions.

Software

Within the software product line, Fujitsu offers operating system software, application software, translation support systems, and architectures. In May 1991,

MESSAGE 90s was introduced as a new approach to system construcdotL Its function is to help organizations process infoimation effectively and set up systems quickly through linked software products, l i i s product line allows the use of hardware and software from other vendors to be used in Fujitsu systems. For example, NEC or IBM PCs can run LOTUS 1-2-3 seamlessly in a Fujitsu-based network.

During fiscal 1991, Fujitsu strengthened System

Development Architecture and Support ^cilities, with the SDEM90 standard method of system development

Mobile Communication

Demand increased sharply for small, lightweight cellular telephones in the field of mobile communication. NTT is promoting development of very small and lightweight cellular telephones, Fujitsu is participating in this development under contract with

NTT. In the U.S. cellular telephone handset mariiiet,

Fujitsu ranked sixdi with a 7.2 percent market share.

Switching Systems

Within the switching systems product line, Fujitsu offers central office switching systems and digital

PBX switching systems. During fiscal 1991, Fujitsu developed and delivered a prototype of the nextgeneration node system for the D-70. For digital

PBXs, the company added appUcation packages to

0012369

©1991 Dataquest Incorporated December—Reproduction Prohibited

Fujitsu Limited the series. Fujitsu also released the cost-effective

E-lOO Series of information switching systems. In the

U.S. PBX systems market, with 1,000 plus lines

(new), Fujitsu ranked sixth with a 2.5 percent maiket share. In die 101 to 400 lines (new) segment, the company ranked eighth with a market share of 2.5 percent. a gate delay of 0.5ns and contain up to 14,000 gates.

The remaining eight feature a gate delay of 0.35ns and contain up to 102,0(X) gates. In the worldwide total ASIC market, Fujitsu ranked number one with a market share of 13.0 percent

Compound Semiconductors

Transmission Systems

Within the transmission systems product line, Fujitsu offers digital commtmications equipment and earth station systems for satellite communication. The company implemented SDH, an international standard that will open conununicadons environments and enable ISDN and other new services to be used more ef&dently. In Japan, NTT is actively promoting the conversion to SDH, while Fujitsu is delivering many transmission systems and radio equipment that comply with SDH.

During fiscal 1991, the compotmd semiconductor market developed a strong demand for low-noise high electron mobility transistors (HEMTs) for satellite broadcasting receivers. Fujitsu developed and released a super HEMT that can capture very weak signals because of dramatic improvements in gain and signal-to-noise ratio. Fujitsu also developed and released a GaAs gate array that features high-speed, large-scale integration and low power consimiption.

To respond to future increases in demand for HEMTs,

GaAs FETs, and GaAs ICs, Fujitsu constructed a plant targeted for GaAs products.

Electronic Devices

The Electronic Devices Division includes IC memories, ASICs, compotmd semiconductors, and other electronic devices. Dataquest estimates ^ t Fujitsu ranked sixth in the worldwide semiconductor market, with 4.9 percent of the market share and revenue totaling $2.9 billion during calendar year 1990. This includes captive sales, which are excluded from the

Electronic Devices Division's sales, as reported in the annual report Net sales within this division decreased by 1.0 percent from $2.49 billion to $2.47 billion. llie division accounted for 12.0 percent of total net sales. The semiconductor product line can be segmented into IC memories (MOS and bipolar technology), ASICs (MOS and bipolar technology), largescale integrations (LSIs), and electronic components.

Other Electronic Devices

In fiscal 1991, in response to rising use in home electrical appliances, telephones, and office machines,

Fujitsu added apphcation specific microcontrollers to its market offerings. Fujitsu also developed a 16-bit microcontroller that performs fuU 16-bit processing with an instruction cycle of 100ns. In addition, significant releases included a 16-inch plasma display with a resolution of 1280 x 1024 pixels and a membrane keyboard with a small foo^nint and low profile.

Other Operations

IC Memories

In fiscal 1991, Fujitsu increased its production of

4Mb DRAMs. The company also started delivering samples of 16Mb DRAMs, which will be the next generation of computer memory. In February 1991,

Fujitsu announced a prototype of a 64Mb DRAM that uses new photo lithography expostire technology.

This new technology will make mass production possible. Also, in February 1991, Fujitsu annotmced the

4Mb BiCMOS ECL SRAM, with an access time of

7ns.

Other operations range from products such as car stereos to automatic vehicle monitors. Although in fiscal 1991, this division accounted for only 4 percent of total net sales, it increased approximately 16 percent to $885.

Further Information

For further information pertaining to the company's business segments, please contact the appropriate

Dataquest industry service.

ASICs

In fiscal 1991, demand rose for faster and larger-scale

CMOS gate arrays. To meet this demand, Fujitsu released 15 new products, 7 of which feature

©1991 Dataquest Incorporated December—Reproduction Prohibited

0012369

Fujitsu Limited

Table 1

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

Five-Year Revenue

Percent Change

1987

11,218

46.71

1988

14,830

32.19

Capital Expenditure

Percent of Revenue

R&D Expenditure

Percent of Revenue

814

7.25

1,043

9.30

1,209

8.16

1,378

9.29

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

Exchange Rate (U.S.$1=^

89,293

126

135

(23.00)

159.51

94,825

156

305

125.24

138.02

1991 Fiscal Year

Quarterly Revenue

Quarterly Profit

NA = Not available

Qi

NA

NA

Q2

NA

NA

1989

18,616

25.53

1,825

9.81

1,925

10.34

104,503

178

545

78.74

128.25

1990

17,839

(4.17)

2,105

11.80

2,093

11.73

115,000

155

607

11.29

142.93

Q3

NA

NA

Q4

NA

NA

Source: Fujitsu Uonited

Ammal Reports

Dataquest (December 1991)

1991

21,043

17.96

2,231

10.60

2,336

11.10

145,000

145

585

(3.55)

141.21

Table 2

Revenue by Geographic Region

(Percent)

Region

Japan

International

1987

78.06

21.94

1988

77.89

22.11

1989

77.87

22.13

1990

76.13

23.87

1991

75.17

24.83

Somce: Fujitsu T imUlvt

Ammal Reports

Dataquest (December 1991)

0012369

©1991 Dataquest Incorporated December—Reproduction Prohibited

Fujitsu Limited

1991 SALES OFFICE LOCATIONS

North America—^3

Europe—4

Asia^'acific—90

Japan—82

ROW—3

MANUFACTURING LOCATIONS

North America

Fujitsu America

Communications and information processing equipment, development of software

Fujitsu Business Communications Systems

Communications equipment

Fujitsu Microelectronics

Semiconductor devices

InteUistor Inc.

Development of information processing equipment

Europe

Fujitsu Espana (Spain)

Communications and information processing equipment

Fujitsu Microelectronics (Ireland)

Semiconductor devices

Fujitsu Microelectronics (United Kingdom)

Development of ASICs

Asia/Pacific

FKL-Dongwa (South Korea)

Magnetic floppy disk drive heads

Fuji Electrochemical (Japan)

Ferrites, electronic equipment, dry batteries

Fuji Facom (Japan)

Development of computer systems for control

Fujitsu (Singapore)

Electronic parts (digital switching systems)

Fujitsu Australia (Australia)

Digital key telephones, digital PBXs

Fujitsu Automation (Japan)

Automation equipment

Fujitsu Buhin (Japan)

Electronic parts

Fujitsu Component (Malaysia)

Electronic parts (relays, keyboards, connectors)

Fujitsu Computer Technology (Japan)

Development of LSIs, software for infonnation processing equipment

Fujitsu Denso (Japan)

Communications/electronic equipment

Fujitsu General (Japan)

Home electric appliances, communications equipment, data processing equipment

Fujitsu Isotec (Japan)

Printers

Fujitsu Kasei (Japan)

Plastic products for communications equipment

Fujitsu Kiden (Japan)

Data processing equipment, indicators, molds

Fujitsu Microelectronics Asia (Singapore)

Semiconductor devices

Fujitsu Microelectronics (Malaysia)

Semiconductor devices

Fujitsu Miyagi Electronics (Japan)

Semiconductor devices

Fujitsu Peripherals (Japan)

Peripherids

Fujitsu TEN (Japan)

Car radios, stereos

Fujitsu Thailand (Thailand)

Magnetic disk drive heads, magnetic heads for printers

Fujitsu Tohoku Electronics (Japan)

Semiconductor devices

Fujitsu VLSI (Japan)

Development of semiconductor devices

Fujitsu Yamanashi Electronics (Japan)

Semiconductor devices

Hasegawa Electric (Japan)

Communications equipment

Kjrushu Fujitsu Electronics (Japan)

Semiconductor devices

Nihon Dengyon (Japan)

Radio and digital communications equipment

PFU Ltd. (Japan)

Microcomputers, peripherals

Shinano Fujitsu (Japan)

Electronic parts

Shinko Electric Industries (Japan)

Semiconductor parts

Takamisawa Electric (Japan)

Switching systems, parts

Towa Electron (Japan)

Capacitors, hybrid ICs

Yamagata Fujitsu (Japan)

Magnetic disk drives

«

©1991 Dataquest Incorporated December—^Reproduction Prohibited

0012369

Fujitsu Limited

SUBSIDIARIES

North America

Fujitsu America Inc. (United States)

Fujitsu Business Communications Systems Inc.

(United States)

Fujitsu Canada Inc. (Canada)

Fujitsu Component of America Inc. (United States)

Fujitsu Computer Packaging Technologies Inc.

(United States)

Fujitsu Computer Products of America Inc. (United

States)

Fujitsu Customer Service of America Inc. (United

States)

Fujitsu Imaging Systems of America Inc. (United

States)

Fujitsu Microelectronics Inc. (United States)

Fujitsu Network Switching of America Inc. (United

States)

Fujitsu Network Transmission Systems Inc. (United

States)

Fujitsu Systems of America Inc. (United States)

Fujitsu Systems Business of America Inc. (United

States)

Intellistor Inc. (United States)

Poqet Computer Corp. (United States)

Europe

Fujitsu Deutschland GmbH (Germany)

Fujitsu Espana S.A. (Spain)

Fujitsu Europe Ltd. (England)

Fujitsu Europe Telecom R&D Centre Limited (United

Kingdom)

Fujitsu Finance (U.K.) pic (United Kingdom)

Fujitsu International Finance (Netherlands) B.V.

(Netherlands)

Fujitsu Italia S.p.A. (Italy)

Fujitsu Microelectronics Ireland Ltd. (Ireland)

Fujitsu Microelectronics Italia Sxl. (Italy)

Fujitsu Microelectronics Ltd. (England)

Fujitsu Mikroelektronik GmbH (Germany)

Fujitsu Nordic AB (Sweden)

Fulcrum Communications Limited (United Kingdom)

AsialPacific

Beijing Fujitsu Systems Ltd. (China)

Fuji Electrochemical Co. Ltd. (Japan)

Fujitsu Advanced Printing and Publishing Co. Ltd.

(Japan)

Fujitsu Aichi Engineering Limited (Japan)

Fujitsu Australia Ltd. (Australia)

Fujitsu Australia Software Technology Pty. Ltd.

(Australia)

Fujitsu Australia Wholesale Pty. Ltd. (Australia)

Fujitsu Automation Limited (Japan)

Fujitsu Basic Software Corporation (Japan)

Rijitsu Business Systems (Japan) Ltd. (Japan)

Fujitsu Communications Systems (Japan)

Fujitsu Component (Malaysia) Sdn. Bhd. (Malaysia)

Fujitsu Computer Technologies (Japan)

Fujitsu Dai-ichi Commimication Software Limited

(Japan)

Fujitsu Dai-ichi System Engineering Limited (Japan)

Fujitsu Denso Ltd. (Japan)

Fujitsu Devices Inc. (Japan)

Fujitsu Digital Technology Limited (Japan)

Fujitsu Distribution Systems Engineering Limited

(Japan)

Fujitsu Documents Service Limited (Japan)

Fujitsu Electronics (Singapore) Pte. Ltd. (Singapore)

Fujitsu FACOM Infonnation Processing Coiporation

(Japan)

Fujitsu Financial Information Systems Limited

(Japan)

Fujitsu Fudosan Ltd. (Japan)

Fujitsu Hong Kong Lfal. (Hong Kong)

Fujitsu Isotec Limited (Japan)

Fujitsu Kansai Communication Systems Limited

(Japan)

Fujitsu Kansai System Engineering Limited (Japan)

Fujitsu Kasei Ltd. (Japan)

Fujitsu Keihin Systems Engineering Limited (Japan)

Fujitsu Kiden Ltd. (Japan)

Fujitsu Korea Ltd, (Korea)

Fujitsu Kosan Limited (Japan)

Fujitsu Kyushu Communication Systems Limited

(Japan)

Fujitsu Kyushu Systems Engineering Ltd. (Japan)

Fujitsu Laboratories Ltd. (Japan)

Fujitsu Lease (Japan)

Fujitsu Logistics Limited (Japan)

Fujitsu Microelectronics Asia Pte. Ltd. (Singapore)

Fujitsu Microelectronics (Malaysia) Sdn. Bhd.

(Malaysia)

Fujitsu Microelectronics PacijBc Asia Ltd. (Hong

Kong)

Fujitsu Minami-Kyushu Systems Engineering Limited

(Japan)

Fujitsu Miyagi Electronics Ltd. (Japan)

Fujitsu Nagano Systems Engineering Limited (Japan)

Fujitsu Network Engineering Limited (Japan)

Fujitsu New Zealand Holdings Ltd. (New Zealand)

Fujitsu New Zealand Ltd. (New Zealand)

Fujitsu OA Limited (Japan)

Fujitsu Office Machines Limited (Japan)

0012369

©1991 Dataquest Incorporated December—Reproduction Prohibited

Fujitsu Limited

Fujitsu Oita Software Laboratories Limited (Japan)

Fujitsu Peripherals Limited (Japan)

Fujitsu Program Laboratories Limited (Japan)

Fujitsu Shikoku Infortcc Limited (Japan)

Fujitsu Sbizuoka Engineering Limited (Japan)

Fujitsu (Singapore) Pte. Ltd. (Singapore)

Fujitsu Simer Limited (Japan)

Fujitsu Social Science Laboratory Limited (Japan)

Fujitsu Social Systems Engineering Limited (Japan)

Fujitsu Supplies Limited (Japan)

Fujitsu System Integration Laboratories Ltd. (Japan)

Fujitsu Systems Constructiou (Japan)

Fujitsu Systems Consulting (Japan)

Fujitsu Technosystems Limited (Japan)

Fujitsu TEN Limited (Japan)

Fujitsu (Thailand) Co. Ltd (Thailand)

Fujitsu Tohoku Electronics Ltd. (Japan)

Fujitsu Tohoku Systems Engineering Limited (Japan)

Fujitsu Tokia Systems Engineering Limited (Japan)

Fujitsu Trading Ltd. (Japan)

Fujitsu "VLSI Limited (Japan)

Fujitsu Quantum Devices Ltd. (Japan)

Gunma Fujitsu limited (Japan)

Hasegawa Electric Co. Ltd. (Japan)

Ishikawa Fujitsu Software Limited (Japan)

Iwaka Densi Ltd. (Japan)

Kyushu Fujitsu Electronics Ltd. (Japan)

Nihon Dengyo Limited (Japan)

Okinawa Fujitsu Systems Engineering Limited

(Japan)

PFU Limited (Japan)

SMmane Fujitsu (Japan)

Shinano Fujitsu Ltd. (Japan)

Shin-Etsu Fujitsu (Japan)

Shinko Electric Industries Co. Ltd. (Japan)

Ten Orikyo Ltd. (Japan)

Totalizator Engineering Limited (Japan)

Toyama Fujitsu (Japan)

Yamagata Fujitsu Limited (Japan)

Yonago Fujitsu (Japan)

ROW

Fujitsu de BrasU Limitada (Brazil)

Fujitsu Vitonia Computadores e Services Ltda

(Brazil)

Corporation and several publishing houses to establish a standard for CD-ROM electronic books.

Hitachi Ltd., Sony Corporation, Texas Instruments Japan Ltd.

Fujitsu Ltd., Hitachi Ltd., Sony Corporation, and

Texas Instruments Japan Ltd. signed an agreement to codevelop the MUSE decoder integrated circuits. MUSE is the standard high-definition television format in JapaiL The cooperative efforts by the four companies is expected to accelerate the development of a small, low-cost, next generation

MUSE decoder.

Texas Instruments

Fujitsu and Texas Instruments signed a five-year global semiconductor patent cross-licensing agreement The deal encompasses most of the semiconductor patents by the two firms except the Texas

Instruments Kilby patent

Cadence Design Systems

Cadence Design Systems and Fujitsu have signed a joint development agreement to produce ASIC software tools.

Quotient pic

Quotient pic and Fujitsu signed a joint development agreement to produce financial software systems.

KBS2 Corp.

KBS2 Corp. and Fujitsu signed a joint development agreement to develop crashworthiness software.

Rodime pic

Rodime pic entered into a nonexclusive royaltyfree patent cross-licensing agreement with Fujitsu

Ltd. The agreement is for the use of Rodime patents that apply to 3.S-inch drives.

Cincom Systems

Cincom Systems and Fujitsu will combine business efforts in the Canadian market to offer highperformance software.

McDonnell Douglas Information Systems International (MDISI)

MDISI and Fujitsu have made an agreeement to port the PRO-rV 4GL software package developed by MDISI to Fujitsu's K Series office computers.

The two firms wiU then market the software.

ALLIANCES, J O I N T VENTURES, AND

LICENSING A G R E E M E N T S

1991

EPWING Consortium

The EPWING Consortium was created with Sony

1990

Novell K.K.

A joint marketing venture to sell Netware products in Japan was formed with Novell and six partners,

Fujitsu being one of them.

t

©1991 Dataquest Incorporated December—^Reproduction Prohibited

00123S9

Fujitsu Limited

Isuzu

The two companies have formed an automotive electronics venture and currently are attempting to get General Motors to join.

Matsushita Electric Industrial

The two companies plan to strengthen their business relationship by mutually supplying their computers on an OEM basis. Fujitsu wiU supply Matsushita with its high-end laptop and desktop 32-bit

PCs; Matsushita will supply Fujitsu with die M550 and M600 series of 32-bit desktop personal computers.

Poqet Computer

Fujitsu will produce and market Poqet Computer's pocket-size conqjuter under hcense, Fujitsu's stake in Poqet Computer has grown gradually over the last two years because of mutual agreement and investments into R&D and manufacture of Poqet's product lineup.

Nokia Data Systems Oy

An agreement has been made whereby Nokia will act as an OEM of digital PBX systems (die F-620 and F-640) for Fujitsu.

Matsushita Electric Industrial

The two companies plan to strengthen their business relationship by mumaUy supplying their computers on an OEM basis.

UNIX International

Fujitsu has joined a new marketing group comprising 21 other high-tech companies. The group wUl promote UNIX's System V release 4 and furdier standard developments.

Molecular Design Ltd. and IBM

Fujitsu has formed a relationship with the two con^anies to ensure that Molecular Design software for managing and communicating scientific information will run on their computers.

Mitsui Bank Research Institute

The two companies have agreed to establish a system consulting service.

MEDIAGENIC

MEDIAGENIC has agreed to develop entertainment software for the Fujitsu FM TOWNS.

Daisy/Cadnetix Inc.

The companies jointiy produced an ASIC design kit developed for the DAZIX design environment on the Sun-4 family of workstations running on

UNIX.

Vitesse Semiconductor Corporation

The companies have entered into an alternate sotu°ce agreement with regard to Vitesse's Fury gallium arsenide (GaAs) VLSI gate-array family.

1989

Japan Tobacco Inc.

Fujitsu formed a tie-up agreement with Japan

Tobacco whereby Fujitsu will market two of Japan

Tobacco's software modules.

The Australian National University in Canberra

The two organizations signed an R&D agreement for two three-year projects. One project is to develop a small image processing system; the other is to develop software for parallel processors.

Vitesse Semiconductor

The two companies agreed to jointiy develop

GaAs gate arrays.

Southern New England Telecommunications

Systems

Southern New England Telecommunications agreed to market Fujitsu's ISDN telecommtmications equipment in the United States on an exclusive basis. The list of products includes digital telephones and terminal adapters.

NTT Data Communications Systems

The two companies will jointiy market their respective logic chip design software products as a total CAE design system.

Sony Corporation

The two companies jointiy developed a trial common rule to develop CD-ROM XA software for their personal computers.

BeU Atlantic Optical Network (SONET)

Fujitsu agreed to sell Bell Atlantic's transmission products under a two-year, $2 million contract

Fujitsu wiU provide its FLM 50/150 Fiber LOOP

Multiplexer for deployment in Bell Atlantic areas.

Poqet Computer Corporate

An agreement provides Poqet with funding and credit guarantees; the companies made a cooperative technology agreement allowing for mutual adaptation of technologies and joint development of new technology.

Sun Microsystems Inc.

Sun and Fujitsu will jointiy develop a high-speed

RISC chip.

1988

Telecom Australia

Telecom Australia agreed to sell Fujitsu's digital

PBXs in Australia; the companies established a sales joint-venture, Information Switching

Technology.

0012369

©1991 Dataquest Incorporated December—Reproduction Prohibited

Fujitsu Limited

Daisy Systems

Fujitsu's FAME was made available on Daisy's

Advansys Series of CAD/CAE systems.

Hitachi Ltd.

The two companies agreed to cooperate on the development of a 32-bit MPU and peripheral LSI family based on TRON architecture.

ICL pic

Fujitsu purchased 80 percent of ICL, a subsidiary of STC pic. The merger increases Fujitsu's global presence and makes it the second largest computer manufacturer in the world.

K E Y OFFICERS

M E R G E R S AND ACQUISITIONS

Takuma Yamamoto

Chairman and representative director

Matami Yasufuku

Vice chairman and representative director

Fulcrum Communications Ltd.

British Telecommunications pic sold the manufacturing division of Fulcrum Communications to

Fujitsu Ltd. but will retain a 25.1 percent interest in the new company. The company makes and markets pubUc switched telephone network equipment such as call monitoring and logging products, call queueing, exchange monitoring, and fiberoptic tools.

Tadashl Sekizawa

President and representative director

Kazuo Watanabe

Vice president and representative director

Mikio Ohtsuki

Executive vice president

Nokia Data

Nokia Data, which is one of Europe's largest computer companies, was purchased by ICL Ltd.

(80 percent owned by Fujitsu). ICL Ltd. will pay $402.3 miUion for the company and will assume about $174.9 million of Nokia's debt. Nokia's parent corporation, Nokia Corporation, wUl receive a 5 percent stake in ICL Ltd.

Motojiro Shiromizu

Executive director

Mamoru Mitsugi

Executive director

Tokio Tatsuta

Executive director

Poqet Computer Corporation

Fujitsu increased its stake to 85 percent in Poqet

Computer Corporation for $37 milUon. In 1988,

Fujitsu had purchased a 28 percent equity stake in the firm. Fujitsu has been working with Poqet

Computer to develop Japanese versions of pocket computers.

Eigo Kato

Executive director

Matsuro Umezu

Executive director

Ryoichi Sugioka

Executive director

Softway

Fujitsu acquired a 40 percent interest in Softway, an Australian software company. Both companies will collaborate on UNIX systems development

Continental Venture Capital, Softway, and Techway staff also hold a 20 percent interest in the company.

PRINCIPAL INVESTORS

Fuji Electric Co. Ltd.—13.5 percent

Asahi Mutual Life Insurance Company—6.5 percent

Hal Computer Systems Inc.

Fujitsu Ltd. acquired a 44 percent interest totaling

$40.2 million in Hal Computer Systems. The company is developing a family of high-performance open systems based on the SPARC architecture and UNIX System V Release 4.

FOUNDERS

Information is not available.

10

©1991 Dataquest Incorporated December—^Reproduction Prohibited

0012369

Fujitsu Limited

Table 3

Balance Sheet

Fiscal Year Ending March 31

(Millions of U.S. DoUars)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained Eamings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

Exchange Rate (U.S.$1=^

NA = Not available

1987

1,125

2,904

137

2,562

307

7,035

3,424

2,067

12,527

4,991

2,117

1,153

8,261

NA

2.115

71

2,080

4,266

12,527

159.51

1988

1,764

3,645

648

3,354

408

9,818

4,289

2,678

16,784

7,059

2,185

1,548

10,792

NA

3,364

92

2,536

5,992

16,784

138.02

1989

2,379

4,615

189

3,734

452

11,369

5,481

3,617

20,467

8,581

2,467

1,924

12,973

NA

4,252

110

3,133

7,495

1990

1,833

5,104

225

4,097

265

11,523

5,777

3,489

20,789

8,979

2,368

1,849

13,197

NA

4,219

110

3,264

7,592

1991

2,906

6,025

159

5,038

599

14,726

6,947

4,792

26,465

11,939

4,091

2,225

18,256

NA

4,350

123

3,737

8,210

20,467

128.25

20,789

142.93

26,465

141.21

Source: Fujitsn Limited

Amnial Reports

Dataquest (December 1991)

0012369

©1991 Dataquest Incorporated December—Reproduction Prohibited 11

Fujitsu Limited

Table 4

Consolidated Income Statement

Fiscal Year Ending March 31

(MiUions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

1987

Revenue

Domestic

Overseas

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (U.S.$1=¥)

11,218

8,757

2,461

7,728

1,043

2,057

814

301

2.68

135

1,593.3

13.40

8.00

2.68

159.51

1988

14,830

11,551

3,279

9,703

1,378

2,883

1,209

768

5.18

305

1,710.0

23.50

8.00

3.50

138.02

1989

18,616

14,496

4,120

11,914

1,925

3,328

1,825

1,210

6.50

545

1,760.1

1990

17,839

13,581

4,258

11,043

2,093

3,337

2,105

1,191

6.68

607

1.760.1

1991

21,043

15,818

5,225

12,893

2,336

4,298

2,231

1,088

5.17

585

1,760.1

36.80

9.00

4.26

128.25

36.80

9.00

4.31

142.93

$36.80

9.00

4.66

141.21

Somce: Fujitsn Limited

Amnial Reports

Dataquest (December 1991)

12

©1991 Dataquest Incoiporated December—^Reproduction Prohibited

0012369

Fujitsu Limited

Table 5

Balance Sheet

Fiscal Year Ending March 31

(Millions of Yen)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

Exchange Rate ( U . S . $ 1 ^

NA = Not available

1987

179,409

463,150

21,863

408,718

49,035

1,122,175

546,233

329,779

1,998,187

796,143

337,660

183,980

1,317,783

NA

337,308

11,359

311,737

680,404

1988

243,492

503,035

89,402

462,869

56,326

1,355,124

591,921

369,549

2,316,594

974,268

301,618

213,685

1,489,571

NA

464,365

12,659

349,999

827,023

1989

305,166

591,815

24,219

478,840

58,017

1,458,057

702,988

463,882

2,624,927

1,100,577

316,395

246,778

1,663,750

NA

545,369

14,050

401,758

961,177

1990

261,928

729,471

32,154

585,546

37,867

1,646,975

825,757

498,633

2,971,365

1,283,409

338,481

264,347

1,886,237

NA

602,980

15,658

466,490

1,085,128

1991

410,365

850,761

22,413

711,392

84,579

2,079,510

980,961

676,699

3,737,170

1,685,950

577,700

314,221

2,577,871

NA

614,205

17,381

527,713

1,159,299

1,998,187

159.51

2,316,594

138.02

2,624,927

128.25

2,971,365

142.93

3,737,170

141.21

Somce: Fujitsu Limited

Annual Reports

Dataquest (December 1991)

0012369

©1991 Dataquest Incorporated December—Reproduction Prohibited 13

Fujitsu Limited

Table 6

Consolidated Income Statement

Fiscal Year Ending March 31

(Millions of Yen, except Per Share Data)

Consolidated Income Statement

Revenue

Domestic

Overseas

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (U.S.$1=^

1987

1,789,417

1,396,876

392,541

1,232,722

166,342

328,184

129,822

48,012

2.68

21,609

1,593.3

13.40

8.00

427.04

159.51

1988

2,046,802

1,594,193

452,609

1,339,183

190,130

397,968

166,924

106,048

5.18

42,115

1,710.0

1989

2,387,442

1,859,129

528,313

1,527,908

246,906

426,779

234,113

155,152

6.50

69,948

1,760.1

23.50

8.00

483.64

138.02

36.80

9.00

546.09

128.25

1990

2,549,773

1,941,075

608,698

1,578,343

299,107

476,979

300,822

170,216

6.68

86,758

1,802.4

45.40

9.00

602.05

142.93

1991

2,971,462

2,233,493

737,969

1.820,554

329,823

606,890

315,109

153,573

5.17

82,673

1,812.1

42.20

10.00

639.75

141.21

Source: Fujitsu Lhnited

Annual Reports

Dataquest (December 1991)

14

©1991 Dataquest Incorporated December—^Reproduction Prohibited

0012369

Fujitsu Limited

Table 7

Key Financial Ratios

Fiscal Year Ending March 31

Key Financial Ratios

Liquidity

Current (llines)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue (¥)/Employee

Capital Spending % of Assets

Exchange Rate (U.S.$1=^

1987

1.41

293.68

117.01

193.68

1.08

3.40

1.21

9.30

7.25

89^93

20,040

6.50

159.51

1988

1989 1990 1991

1.39

280.11

117.80

180.11

1.82

6.19

2.06

9.29

8.16

94,825

21,585

7.21

138.02

1.32

273.10

114.50

173.10

1.28

273.83

118.27

173.83

1.23

322.36

145.43

222.36

2.66

8.46

2.93

2.92

9.03

3.40

2.21

7.62

2.78

10.34

9.81

104,503

22,846

8.92

128.25

11.73

11.80

115,000

22,172

10.12

142.93

11.10

10.60

145,000

20,493

8.43

141.21

Source: Fajitsu limited

Ammal Reports

Dataqaest (December 1991)

0012369

©1991 Dataquest Incorporated December—Reproduction Prohibited

15

General Instrument Corporation

BACKGROUND AND OVERVIEW

General Instrument Corporation (GI), for more than 50 years, has been among the leaders in the application of modem technology to entertainment, industrial, military, data, and communications electronics.

In 1960, GI entered the transistor business with the acquisition of General Transistor

Corporation, founded by Herman Fialkov. Mr. Fialkov, who became head of GI's semiconductor division in the United States, was intrigued at the time by the potential of

MOS technology. With the recruitment of Frank Wanlass, a key member of the MOS development team at Fairchild, and a team of designers, GI was able to begin a push in

MOS development.

The advent of the digital cable converter in the 1970s convinced GI that it could gain leverage not only through cable product sales but through all communications equipment sales by applying its semiconductor expertise. During this time, the Company was transformed from a components manufacturer to a communications company.

GI's early success in Europe emphasized the consumer end-user market segment, starting with the emerging calculator business. In the early 1970s, GI shifted its emphasis to the emerging strong, feature-oriented European television receiver market.

By 1975, the Company had its ICs designed into almost every European television set.

These circuits were all specified, designed, and produced at the GI facility in Glenrothes,

Scotland. Later, the first game chip was designed at this facility, together with a range of telecommunications circuits.

In November 1980, Racal, in the United Kingdom, and GI signed an agreement in which both companies would cooperate on process and product development of silicon gate CMOS devices. In December 1981, Plessey Semiconductors and GI signed a second-sourcing agreement whereby Plessey would second-source GI's PLC family of single-chip microcomputers and provide a new bipolar integrated data slicer circuit.

In October 1982, GI opened a major new facility at Glenrothes, Scotland, which greatly expanded its existing operation. The new plant is dedicated to silicon gate production in NMOS, CMOS, and nonvolatile memory processes. Announced concurrently with the opening of the new facility were three new products to extend GI's EEPROM range.

In February 1983, GI introduced the first commercial IC combining elements of speech recognition and speech synthesis on the same chip. This chip was the result of a joint development between GI and Milton Bradley (a U.S. manufacturer of low-cost electronics products). Also in February 1983, GI announced a voice-synthesis module.

The module, containing a single-chip NMOS IC, is able to synthesize any phrase in the

English language.

ESIS Volume III © 1988 Dataquest Incorporated November

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General Instrument Corporation

In April 1983, Texas Instruments and GI signed a second-sourcing agreement whereby GI would second-source Texas Instruments* TMS 7000 family of NMOS and

CMOS 8-bit, single-chip microcomputers. In November 1984, this agreement was extended to include the TMS 70120 single-chip microcomputer.

Having sustained considerable losses in 1985, GI shut down its Glenrothes plant in

Scotland. The Company also discontinued or consolidated a number of (q>erations in the

United States, including the movement of all electronics (^>erations from Hicksville, New

York, to GI's Chandler, Arizona, facility.

In 1986, in an attempt to revamp the Company's microelectronics division and to break into the military market, GI recruited five key managers from other semiconductor companies.

In September 1986, General Instrument acquired the Cable/Home Communications

Division of M/A-COM Inc., a manufacturer of coaxial cable and encryption/decryption equipment. This acquisition was reportedly made for $220,000 in cash plus assumed liabilities of $32,858.

In January 1988, General Instrument announced that it would split its semiconductor operation into two parts. The Power Semiconductor Division would remain under the control of General Instrument, and the microelectronics (^>eration would trade as an independent company under the name of Microchip Technology Inc.

In February 1988, Microchip Technology announced that it had filed papers with the

Security and Exchange Commission so that it could bring out an offer for 2.3 million shares, eiq^ecting to raise some $27.6 million from the offer. General Instrument would contribute $10 million toward the new organization, becoming a minority shareholder.

As shown in Table 1, Dataquest estimates that CI's European revenue was

$40 million in 1987. Table 2 shows the key financial figures, and Table 3 shows a breakdown of revenue by geographic area.

© 1988 Dataquest Incorporated November ESIS Volume HI

0001400

General Instrument Corporation

Table 1

General Instrument Corpwation

Estimated £ur(^>ean Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

1984 1985 IfiM 1987

Total Semiconductor $50 $42 $37 $40

Total Integrated Circuit

Bipolar Digital

MOS

Linear

$28

0

24

4

$21

0

17

4

$12

0

10

2

$13

0

11

2

Total Discrete

Transistor

Diode

Thyristor

Other

$13

0

13

0

0

$12

0

12

0

0

$15

0

15

0

0

$16

0

16

0

0

Total Optoelectronic $ 9 $ 9 $10 $11

Source: Dataguest

November 1988

Table 2

General Instrument

Key Financial Inf(Hinati<m

(Millions of U.S. Dollars)

1984 1985 1986 ISfil 1988

Revenue $680.8 $728.0 $612.4 $787.8 $1,155.5*

Profit (before taxes) $ 76.5 $ 15.7 ($ 31.7) $ 29.7 $ 107.9

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

Note: Year Ending February 29.

*First-quarter 1988 revenue reached $312.9 million compared with

$280.1 million in the first quarter of 1987.

Source: General Instrument Corporation

1988 Annual Report

ESIS Volume ffl © 1988 Dataquest Incorporated November

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General Instrument Corporation

Table 3

General Instrument

Revenue by Geograi^c Area

(In Millions of U.S. Dollars)

1984 1985 1986 1987 1988

United States N/A $610.8 $495.5 $660.0 $1,031.0

Western Europe M/A $ 51.4 $ 56.7 $ 79.3 $ 73.8

Far East N/A $ 20.6 $ 11.8 $ 17.0 $ 23.0

Other N/A $ 45.2 $ 48.4 $ 31.5 $ 27.7

N/A = Not Available

Source: General Instrument Corporation

1988 Annual Report

Products and Markets Served

GI is the world's leading producer of low-current, iq)-to-30-ampere rectifiers, and is a major manufacturer of cable TV products, off-track and on-track wagering systems, and apparatus for defense applications. The Company also has interests in high-volume application-specific products for lamp dimming, home control, and entertainment.

One of GI's traditional strengths lies in nonvolatile memory and speech synthesis.

The Company's speech chip product lines comprise a range of processors with enough on-board ROM for up to 20 seconds of natural speech; a range of speech ROMs of 16K,

32K, and 128K density; a range of speec^l interface circuits; and a complete speech synthesis module containing a 32-word vocabulary. Recently, GI also has become strong in the field of DSPs, and 1986 saw the introduction of a 2-micron CMOS DSP.

GI's main products in the nonvolatile memory field are 16K, 32K, and 64K ROMs and

IK, 4K, 8K, and 16K EEPROMs. GI also has a 4K NVRAM—a chip that has both static

RAM and EEPROM on the same substrate. A 1Mb ROM was planned for volume introduction in 1985, having been announced in 1984, but GI decided to deemphasize the

ROM line and is presently not producing ROMs greater than 2S6K.

The GI CMOS range was extended in 1985 and early 1986. In late 1985,

GI announced a 256K CMOS UV EPROM, the first in a family of CMOS EPROMs soon to be made available. In early 1986, GI introduced both the 64K CMOS EEPROM and a

2-micron CMOS DSP device that is a licensed second-source from Texas Instruments

TMS320 Services.

© 1988 Dataquest Incorporated November ESIS Volume III

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General Instrument Corporation

OUTLOOK

General Instrument is concentrating its resources in two principal areas: communications systems and components. In the 1987 fiscal year, GI made provisions for discontinuing businesses in the areas of semiconductors and venture investment. In the semiconductor area, the Company discontinued its microelectronics and optoelectronics

(^>eration5. It eliminated the semiconductor segment and consolidated the Power

Semiconductor Division into the components segment.

In Europe, Dataquest expects General Instrument to continue to enjoy success in targetable areas of expertise. In the United States, cable q?erations have standardized on the GI videocypher chip set. Recently, GT Europe announced its success in signing i ^

Europe's first direct-broadcast syndicate (BSB) as a customer for a modified conditioning access system.

ESIS Volume HI © 1988 Dataquest Incorporated November

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General Instrument Corporation

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© 1988 Dataquest Incorporated November ESIS Volume HI

0001400

Harris Corporation

BACKGROUND AND OVERVIEW

Harris Corporation is the successor of a 1967 merger between Harris-Inter type

Corporation, a leading manufacturer of printing equipment, and Radiation Inc., an electronics company engaged in the design, development, and manufacture of advanced communications and information-processing equipment and systems. In February 1980,

Farinon Corporation, a producer of microwave transmission and telephone equipment, merged with Harris Corporation. In April 1983, Harris sold its Printing Equipment Sector and became a 100 percent electronics company. In July 1983, Harris Corporation and

Lanier Business Products, Inc., agreed in principle to the merger of Lanier into Harris on a pooling-of-interest basis. Lanier produces and distributes office automation products.

Harris Corporation designs, produces, and markets communications and information-processing equipment, systems, and components. The Company's products are used in voice and video communications, data processing, data communications, and graphics communications systems.

Immediately following the merger of Radiation and Harris-Intertype, Harris

Semiconductor became a division of the new Company. In 1977, it became a group, and in April 1982, Harris Semiconductor reached sector status within the Harris Corporation

(the other four sectors being Communications, Information Systems, Lanier Business

Products, and Government Systems).

Organizationally, Harris Semiconductor is composed of four divisions and a joint venture in Europe (Matra-Harris). (See Figure 1 for details.) Harris Corporation's executive offices and semiconductor fabrication facilities are located in Melbourne,

Florida, in the United States. Harris Semiconductor operates a large assembly plant in

Kuala Lumpur, Malaysia. The Company has plans for another offshore assembly facility to supplement existing domestic assembly capability.

In September 1979, Harris and Matra, the French state-controlled arms and electronics group, formed a European joint venture known as Matra-Harris. This venture was formed to manufacture semiconductor devices for the European markets, particularly the French.

In 1985, Harris and Analogic announced a linear IC pact in which Analogic is second-sourcing new Harris products, and there is a joint development of new hybrid products.

In early 1986, Harris and Matra-Harris began a new sales strategy. Their European sales force and distributor network was separated to permit both companies direct and independent access to European customers. Also in early 1986, Harris closed its Scottish factory in Irvine, Strathclyde, and sold it to a U.S. company.

Harris and 3M (the U.S. industrial and consumer products group), formed a joint-venture company called Harris/3M in 1986. Harris/3M is a worldwide supplier of copying and facsimile products.

ESIS Vol. Ill © 1988 Dataquest Incorporated November

0001432

Harris Corporation

Figure 1

Harris Corporation

Company Organization Chart

Harris

Corporation

Sectors

Commiin I cations

Sector

Divisions

Analog

Division

Information

Systems

Sector

Semloonduotor

Sector

Lanier Business

Products

Sector

Government

Systems

Sector

Marketing

Digital

Division

Sales

Custom ICs

Devision

Microwave

Division

Administration

M a tra-Harris

Finances

0001432-1

Source: Harris Corporation

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

In 1987, Harris successfully subdued a takeover bid by Plessey of the United

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

© 1988 Dataquest Incorporated November

ESIS Vol. Ill

0001432

Harris Corporation

Table 1 shows Dataquest's estimates of Harris' European revenue.

Table 1

Harris Corporation

Estimated European Semiconductor Group Revenue by Product Line

(Millions of U.S. Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total D i s c r e t e

T r a n s i s t o r

Diode

Other

Total O p t o e l e c t r o n i c

1983 1984 1985 1986 1987

$28 $40 $31

$38 $40

$28 $40 $38 $40

14

10

4

0

0

0

0 b

20

14

6

0

0

0

0

$31

19

7

5

0

0

0

0

0

14

24

0

0

0

0

0

14

26

0

0

0

0

0 0

9

0

Source: Dataquest

November 1988

PRODUCTS AND MARKETS SERVED

Although the U.S. defense business remains Harris's main revenue earner

(approximately 40 percent of sales), the Company plans to move to nondefense-related government sectors. For example, Harris was awarded a contract for a mobile communications system for the Federal Emergency Management Agency. The Company hopes to win contracts from the U.S. Army, the Federal Aviation Administration, and

NASA. Harris is also expanding its commercial client base.

In 1988, Harris expanded its activities in the United Kingdom with the establishment of an affiliated assembly operation. The new plant, owned by MTL Microtechnology, a subsidiary of Cambridge Electronic Industries, is part of a concerted drive to develop

Harris' sales throughout Western Europe. It produces specialized high-powered microprocessors mainly for the U.K. military market, an area where Harris sees scope for expansion. Harris also gained the top level of U.K. standards approval for its 80C86

CMOS processor family, making it the first choice for many applications. The Company now plans to seek approval for a wide range of devices.

ESIS Vol. Ill

0001432

© 1988 Dataquest Incorporated November

Harris Corporation

OUTLOOK

Harris is optimistic about the future. The Company plans a more determined push into Western Europe, while looking for other opportunities to expand. The main reason for this strategy is the cutbacks in U.S. military spending, which are driving Harris to cut its dependence on 85 percent of sales from the United States to about 65 percent by

1990. The Company hopes to get 25 percent of semiconductor sales from Europe.

At the time of this printing, it had just been announced that Harris had bought the semiconductor operations of General Electric (GE) for an undisclosed amount. The purchase includes the RCA semiconductor operation that GE bought two years ago.

Further details of this merger and its implications will be published in a newsletter.

© 1988 Dataquest Incorporated November ESIS Vol. Ill

0 0 0 1 4 3 2

Company Backgrounder by Dataquest

Hewlett-Packard Company

3000 Hanover Street

Palo Alto, California 94303

Telephone: (415) 857-1501

Fax: (415) 857-5518

Dun's Number: Not available

Date Founded: January 1, 1939

CORPORATE STRATEGIC DIRECTION

Hewlett-Packard Company (HP) is engaged worldwide in the design, manufacture, and servicing of a broad array of precision electronic instruments and systems for measurement, analysis, and computation.

HP offers integrated systems solutions to specific customer problems. Founded in 1939 by Bill Hewlett and Dave Packard, HP employs 92,000 people worldwide and had revenue of $13.2 billion* during 1990. formed as a result of the reorganization: the Computer Systems Organization, the Computer Products

Organization, and the Test and Measurement

Organization.

The reorganization aligned businesses that bad traditionally operated separately in HP's structure, but had been converging in form and function in recent years.

The Computer Systems Organization unites HP's workstation and multiuser systems businesses, the

Computer Products Organization combines the company's PCs and peripherals businesses, and the Test and Measurement Organization combines the activities of the company's Electronic Instruments and

Microwave and Communications groups.

The $13.2 biUion revenue in fiscal 1990 represented an increase of 11.2 percent over 1989's total revenue of $11.9 billioiL Net income decreased 10.9 percent to $739 million in fiscal 1990, down from a 1989 record net income of $829 million. A large factor in this decrease in net income deals was the increasing proportion of HP's sales to volume purchasers such as dealers and OEMs, who receive discounts on the HP products they purchase. These discounts reduce earnings by driving up HP's cost of selling its products.

Domestic sales totaled $6.0 billion, $5.6 billion, and

$4.8 billion, respectively, during fiscal years 1990,

1989, and 1988. International sales reached $7.2 billion, $6.3 billion, and $5.1 billion in fiscal years

1990, 1989, and 1988, representing 54.5, 53.3, and

51.6 percent of total revenue, respectively. The majority of international orders were from the commercial sector, primarily in Europe. The percentage of total respective international revenue derived fixjm

Europe during fiscal years 1990, 1989, and 1988 was

66.1, 65.2, and 65.2 percent

Although HP's structure has been recently reorganized, the company continues to financially divide operations into six business segments, all of which are engaged in the design and manufacture of precision electronic equipment for measurement, analysis, and computation. The six business segments are

Measurement, Design, Information, and Manufacturing Equipment and Systems; Peripherals and Network

Products; Service for Equipment, Systems, and

Peripherals; Medical Electronic Equipment and

Service; Analytical Instrumentation and Service; and

Electronic Components. The Measurement segment continued to be the largest source of income in fiscal

1990 for the conq)any, with $5 billion in revenue, or 36.9 percent of total revenue. The Service for

Equipment, Systems, and Peripherals segment showed the highest rate of increase in 1990, increasing 21.3 percent to $2.6 billion.

In October 1990, HP began to implement a major reorganization in its management structure to reduce operating expenses and facilitate the management of research and development, manufacturing, and marketing activities. Three new organizations were

*A11 dollar amounts are in U.S. dollars.

HP has more than 480 sales and service offices in approximately 150 cities throughout the United States and in 107 countries worldwide. Approximately

31 percent of the sales and service offices are located in die United States. In areas where HP has no sales or service offices, it markets through more than ISO distributorships located in more than

60 countries.

0011509

©1991 Dataquest Incorporated October—Reproduction Prohibited

Hewlett-Packard Company

HP markets approximately 70 percent of its products directly through its own sales organizatiorL

Marketing operations are supported by approximately

30,000 individuals, including field service engineers, service personnel, and administrative support staff.

The remaining revenue is obtained through valueadded resale channels including dealers and OEMs.

Research and development expenses totaled $1.4 bil-

Uon in 1990, representing 10.3 percent of total revenue. Capital expenses reached an all-time high in

1990 of $955 million, representing 7.2 percent of total income. The R&D and capital expense totals for

1989 were $1.3 bUlion and $857 miUion, respectively, representing 10.7 and 7.2 percent of total revenue.

HP currendy offers more than 10,000 products, which range from scientific measuring instruments to handheld calculators. HP's traditional key areas of strength have been test and measurement equipment and minicomputers. The company recenfly successfully established itself in the UNIX workstation market

HP possesses the key ingredients to be a major force in computer-integrated manufacturing (CIM), with its high-performance instruments, peripherals products,

UNIX platforms, and networking products. Local

R&D has allowed HP to quickly adapt its products to suit local European markets.

More detailed information is available in Tables 1 through 3, which appear after "Business Segment

Strategic Direction" and present corporate highlights and revenue by region and distribution channel.

Tables 4 through 6 at the end of this backgrounder present comprehensive financial information.

BUSINESS SEGMENT STRATEGIC

DIRECTION

In 1990, HP announced HP NewWave Computing, a strategy to link a variety of computers in a network so they operate as one. The company has based this approach on open systems and advanced software technology, enabling users to build on computing resources currently in their possessioiL Other major announcements in 1990 included the HP 9000 Model

1240, the company's entrant in the emerging fault-tolerant UNIX-based computer market; the HP

LaserJet HI printer, and the HP 400 Series woricstation, the company's first workstation developed from the combination of HP and recently acquired

Apollo Computer Inc.

In November 1989, HP introduced HP NewWave

Office, an integrated office system enabling users to share data and information, even with computers and software from different vendors. More than 100 software developers and resellers are supporting HP

NewWave Office with a full range of word processing, spreadsheet, database, graphics, communications, and multimedia applications as well as vertical market solutions.

According to Dataquest estimates, HP ranked first in the 1990 worldwide traditional workstation market for 1990 with a 24.98 percent market share and

$709.3 million in factory revenue. Dataquest also estimates that HP was the market leader in the medical workstation and superworkstation worldwide markets in 1990.

Technical Computers

The HP 9000 series includes desktop-size workstations and midtiuser systems originally intended to be used by scientists and engineers. Iff* offers a wide range of workstation products, with applications including the commercial client-server marketplace, electronic publishing, computer-aided design (CAD), computer-aided manufacturing (CAM), computeraided software engineering (CASE), and other advanced graphics markets.

With the HP NewWave line, HP has unveiled its office-systems strategy for the 1990s: to deliver a complete office system that combines industry standards with emerging technologies, allowing customers to quickly and easily receive the infonnation they need. A major part of the strategy is to integrate existing applications and systems frxim multiple vendors to protect customers' computing investments.

In May 1991, HP introduced three new models in the

HP ApoUo 9000 Series 400 workstation family: die

425e, 425t, and 425s models. The Series 400 models run the HP-UX and Domain/OS operating systems and are compatible with HP's Motorola-based workstation family. The 425e is powered by Motorola's

25-MHz MC68040 processor, performs at 22.1 mips and 2.6 mflops, and offers a 2-D, frame-buffer graphics system that is tuned for X ^^^dow System performance at 2,017 operations per second (ops). The 425e has an internal storage capacity of 840MB, a total disk capacity of 9.11GB, and storage options consisting of an integrated, DOS-compatible 3.5-inch

©1991 Dataquest Incorporated October—^Reproduction Prohibited

00US09

Hewlett-Packard Company floppy drive or an internal CD-ROM drive. The 425e is designed for use in commercial or desktop pubUshing, CASE, and entry-level CAD markets. computer philosophy for customers with a multivendor or multiarchitecture environment

The 425t and 425s models are more advanced models than the 425e, offering increased X Window performance at 3,100 ops. The 425t is a desktop model based on the 25-MHz MC68040 microprocessor, while the 425s is a desk-side system with increased expansion and performance capabilities. The 425s comes with four extended industry standard architecture (EISA) or three DIO-II expansion slots, and three full-height 5.25-inch storage slots for disks, CD-

ROM, or digital audio tapes (DATs). Internal disk storage options range from 660MB to 3.9GB, with a maximum disk storage capacity of 27.3GB. The 425t and 425 s models are targeted for mechanicalengineering and electrical-engineering design customers.

HP unveiled eight new multiuser HP 3000 systems in

January 1990: 980/100, 980/200, 949, 922LX,

922RX, 922, 932, and the MICRO 3000RX. The

Series 980/100 and 980/200 are the first to use advanced complementary metal-oxide semiconductor

(CMOS) technology on a single VLSI chip. The 980/

100 operates between 60 and 70 transactions per second (^s); and the 980/200 operates at more than

100 tps. The 922LX, 922RX, 922, and 932 perform at

7.7 tps and are designed to support 16 to 240 users in small to medium-size businesses, departments of large corporations, or branch offices. The HP MICRO

3000RX is a complete entry-level business system that can support up to 24 users. It is fully compatible with the HP 3000 product line and includes a system disk, tape cartridge, console, 16 terminal ports, operating system, database, and a menu-driven interface.

Other members of the HP Apollo 9000 family include the 300, 700, and 800 Series. The 300 Series mcludes

HP's most basic workstation models. Introduced in

March 1991, the 700 Series revolutionized performance levels in the workstation market with system performance exceeding 76 mips, the fastest on the market. The 700 Series is available in both desktop and desk-side models. The 800 Series of superminicomputers is oriented toward technical and realtime computing in the manufacturing sector and toward general-purpose UNIX computing in the government and commercial markets. These computers are based on HP Precision Architecture (HP-

PA) reduced-instruction-set computiag (RISC) technology, allowing users access to more than

3,500 RISC appUcations and tools from more than

220 independent software vendors.

In April 1989, HP acquired Apollo for $500 millioa

The acquisition gave HP an installed base of about

84,000 Apollo machines at almost 3,000 sites and another proprietary RISC architecture.

The company recendy aimoimced 10 new models for the HP 3(X)0 line, which should be available in

October 1991. These new models in the 900 Series are powered by the same Precision Architecture-RISC

(PA-RISC) chips used in the 700 Series, making HP an industry leader in offering compatible RISC-based products from the desktop level to enterprisewide data center systems.

Personal Computers

Since its entry into the PC business, HP has been a high-end PC vendor aiming at the business market

The company's Vectra product line has met with considerable success since its introduction in 1986.

The Vectra line consists of computers based on Intel's

80286, 80386, and 80486 microprocessors. Dataquest estimates that HP ranked 11th in the worldwide PC market in calendar year 1990, with a market share of

1.77 percent and factory revenue of $884.6 million.

Business Computers

The HP 3000 series of supermimcomputer systems spans a broad performance range and is designed for business data processing appUcations. Introduced in

1970, the 3000 Series is suited for on-line transaction processing (OLTP) and distributed processing and is compatible throughout the product line. The HP 3000 family shares the MPE operating system and uses

HP's Precision Architecture in the higher-end systems. All HP 3000 computers use an open network

The HP Vectra 486 personal computer is the highestperformiog member of the HP Vectra family. It is a floor-standing unit based on the Intel i486 microprocessor. It uses the EISA, and the design optimizes performance for high-end personal computing (for example PC CAD multiuser, LAN serve) and provides the speed for high-powered single-user applications. The 486 supports up to 64MB of RAM on a single memory board, 1.3GB of mass storage, and a video graphics adapter. It comes standard with

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2MB of RAM; one 5.25-inch, 1.2MB flexible disk drive; two serial (RS-232-C) ports; one parallel (Centronics) port; connections for four flexible disks and tow-embedded hard disks; keyboard (Mini-DIN) and mouse (Mini-DIN) ports; HP disk-cache software; and memory management software. It also offers an array of hard disk drives, memory, and video products.

Dataquest estimates that the Vectra 486 PC was the third-ranked 80486 model in 1990, with $113.7 million in factory revenue and a 4.76 percent market share. HP ranked third overall in the worldwide

80486 computer market, based on $146.7 million in factory revenue and a 6.14 percent market share. the HP NewWave 3.0, a software applications environment that runs on any industry-compatible

MS-DOS PC with an Intel 80286 or 80386 microprocessor. The HP NewWave 3.0 utilizes the enhancements made by Microsoft to Windows, including improvements to memory management and the user interface. From this, HP NewWave 3.0 requires only 2MB of extended memory to run several applications. More than 100 independent software vendors, including Micrografx Inc. and

Microsoft Corporation, have committed resources to develop future HP NewWave applications. FutureSoft

Engineering Inc., Lotus Development Corporation,

New Media Graphics Corporation, and VideoLogic have all begun shipping NewWave. HP also has licensing agreements for HP NewWave with AT&T

Computer Systems Inc., Canon Inc., Data General

Corporation, and NCR Corporation.

In April 1991, HP released the much-heralded HP

95LX palmtop PC, the first hand-held computer to combine PC power with the capabUities of Lotus

1-2-3 in a device the size of a business calculator. The

Uoz 95LX is designed to work as a companion to desktop and laptop PCs, and will run MS-DOS

3.22 in addition to Lotus 1-2-3 Release 2.2. According to Dataquest estunates, the 95LX will propel HP into the leading position in 1991 in terms of units shipped in the notebook market

In January 1991, HP announced that its SoflBench and Encapsulator products, which had previously only been offered for HP/Apollo workstations, would be compatible with Sun's SPARCstation computers.

SoftBench is a software-development product for

CASE that coordinates and controls the separate software programs that engineers use to design, build, and test software products. Encapsidator allows the customization of SoftBench through the addition of

CASE tools of the user's choice. The move by HP further demonstrates the company's commitment to open systems environments.

Supercomputers and Visualization Systems

Through its Apollo Systems Division, HP offers the

Apollo Series 10000 personal supercomputers and visualization systems designed for graphic-intensive applications. Both systems incorporate multiprocessing capabilities, parallel-instruction dispatch and extension, advanced-compiler technology, a RISCbased instruction set, and the capability to be configured with the IBM Token-Ring network or Ethernet as native networks. During 1990, the major components of the Series 10000 received the following upgrades: a new PRISM CPU that doubles computer power from 22 mips to 44 mips (12 mflops) per processor, parallelizing and vectorizing compilers that increase system performance two to four times; a specialized software-development environment for parallel programs and an interactive scientificsoftware computation and visualization environment; main memory capacity expanded fourfold, disk capacity improved by a factor of six, and local area network (LAN) bandwidth increased by a factor of 10.

HP released several new software products in the first half of 1991. In May, the company released HP

SharedX, a distributed-computing software product that allows geographically separated work groups to view and modify information simultaneously on their

UNIX-based workstations and X terminals. The program is a breakthrough in real-time computing and can be used immediately by current X '^ndow System users with no modification to their existing systems. In June, the company released HP Open'^ew

Interconnect Manager, a network-management program that greatly reduces mapping time on networks.

Peripherals

Software

Although HP offers a selection of software for business and technical applications, a vital part of its

Cooperative Computing Enviromnent is the New-

Wave environment, which has continued to gain widespread acceptance. In May 1990, HP introduced

HP's peripherals products include video display terminals, magnetic disk and tape drives, plotters, and laser printers. HP's laser printers were first introduced in 1975. Technology exchanges and license agreements with Canon led to HP's 2680 laser printer series, which includes the 2689, an IBM-compatible version.

©1991 Dataquest Incorporated October—^Reproduction Prohibited

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Hewlett-Packard Company

HP expanded its printer product line in March 1991 with the release of the high-end HP LaserJet nisi printer. Designed for the business environment, the

LaserJet nisi prints 17 pages per minute (ppm) and uses Resolution Enhancement technology ^id HP's

PCL 5 printer language. Options include a networkprinter interface card for direct connection to a LAN, a two-sided printing mechanism, and a power envelope feeder that holds up to 100 envelopes. as a single, integrated system, regardless of location, vendor, or operating system. These networks will manage the simultaneous transmission of voices, data, and video. The restilting distributed system can integrate diverse applications, environments, and computers, and will allow more effective processing of information.

Semiconductors

According to Dataquest, HP led the North American

1- to 10-ppm PNPP printer market with a 53.5 percent market share in 1990, based on $1.96 billion in factory revenue.

HP has also been a market leader in the X \^ndow

System graphics terminals market HP released the

HP 700/X family of X Window graphics terminals in

1989, and the family has continued to gain market share. The 700/X family consists of a comprehensive set of color and monochrome network-based graphics terminals based on the industry-standard X Window

System from the Massachusetts Instimte of Technology (MIT). The terminals are designed to operate in multivendor networked environments and provide the equivalent graphics and LAN performance of an entry-level workstation configured as an X server.

According to Dataquest HP ranked 21st in the 1990

North American total semiconductor market, with a market share of 1 percent HP is the market leader in the North American optoelectronic semiconductor market, holding a 40 percent market share in 1990 with $132 nuUion in factory revenue.

HP manufactures a number of dedicated integrated circuits (ICs) for internal consumption only. These are supported by a wide range of optoelectronic devices

(both components and modides) that are generally available on the merchant market together with several specialized diode and transistor products.

Computer Storage

Dataquest estimates that HP ranked third in the 1990 worldwide X Window terminal market with a

12.4 percent market share and $22.3 million in factory revenue. HP was the market leader in the 1990 worldwide Color X Window market, garnering

20.3 percent of the inarket with $17.0 milUon in factory revenue.

HP's storage devices family includes 5.25-inch harddisk storage systems for entry-level through high-end computer systems; digital data storage (DDS) format tape drives for HP computer systems; and a famUy of mass-storage systems that combine a high-capacity hard-disk mechanism with a choice of two additional drives (DAT drive, CD-ROM drive, rewritable-optical disk drive, and/or additional hard-disk drives).

HP also provides monitors for workstations, where

Dataquest estimates that HP ranked second in the

1990 worldwide workstation monitor market, with

$175.5 million in revenue and a 22.2 percent maiket share.

Dataquest estimates that HP ranked eighth in the worldwide 5.25-inch rigid disk drive market in 1990, with a 1.7 percent market share. HP also ranked second in the worldwide 1/2-inch reel-to-reel tape drive market with 14.9 percent of the market

Telecommunication

HP's vision of future information technology is called the Cooperative Computing Environment Its goal is to develop integrated networks of both generalpurpose and specialized computers working together

Further Information

For further information about the biisiness segments, please contact the appropriate industry service.

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Table 1

Five-Year Corporate Highlights

(MiUions of U.S. Dollars)

Five-Year Revenue

Percent Change

Capital Expenditure

Percent of Revenue

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

1990 Fiscal Year

Quarterly Revenue

Quarterly Profit

1986

7,102

9.18

497

7.00

824

11.60

82,000

86.61

516

5.52

Q i

3,103

173

1987

8,090

13.91

510

6.30

901

11.14

82,000

98.66

644

24.81

Q2

3,308

186

1988

9,831

21.52

648

6.59

1,056

10.74

87,000

113.00

816

26.71

1989

11,899

21.04

857

7.20

1,269

10.66

95,000

125.25

829

1.59

1990

13,233

11.21

955

7.22

1,367

10.33

92,000

143.84

739

(10.86)

Q3

3,242

178

Q4

3,580

202

Sonice: Hewlett-Padcaid Company

Anaual Reports

Dataquest (October 1991)

Table 2

Revenue by Geographic Region (Percent)

Region

North America

International

AU Others

1986

54.00

31.00

15.00

1987

51.00

33.00

16.00

1988

48.00

34.00

18.00

1989

46.73

34.72

18.55

1990

45.53

36.00

18.47

Source: Hewlett-Packaid Company

Annual Reports

Dataquest (October 1991)

Table 3

Revenue by Distribution Channel (Percent)

Channel

Direct Sales

Indirect Sales

Distributors

Dealers

OEMs

*Conq>uter systems only

NA = Not available

1987*

58

42

1

1

40

1988*

60

40

1

1

38

1989

60

40

NA

NA

NA

Source: Hewlett-Packard Company

Annual Reports

Dataquest (October 1991)

©1991 Dataquest Incorporated October—Reproduction Prohibited

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Hewlett-Packard Company

1990/1991 SALES OFFICE LOCATIONS*

North America-

Eiffope—111

Japan—^28

-129

ROW—191

•Includes service offices

MANUFACTURING LOCATIONS

North America

AguadiUa, Puerto Rico

Terminals

Andover, Massachusetts

Medical equipment

Avondale, Pennsylvania

Analytical instruments

Boise, Idaho

Disk drives, printers

Chelmsford, Massachusetts

Workstations

Colorado Springs, Colorado

Electronic test instruments, telecom test equipment

CorvaUis, Oregon

Calculators, hand-held computers, ASICs

Cupertino, California

Minicomputers

Everett, Washington

Electronic instruments

Exeter, New Hampshire

Workstation components

Fort CoUins, Colorado

Workstations, network controllers, ASICs, RISC

Processors

Greeley, Colorado

Printers, tape drives

Loveland, Colorado

Logic design systems, high-frequency linear digital oscilloscopes

McMinnviile, Oregon

Medical equipment

Palo Alto, California

Test equipment

Rockaway, New Jersey

Test equipment

Rohnert Park, California

Test equipment

Roseville, California

Network products, personal computers

San Diego, California

Plotters

San Jose, CaUfomia

Microwave, opto, diode, transistors

Santa Qara, CaUfomia

Electronic instruments, ASICs

Santa Rosa, CaUfomia

Microwave test equipment, opto, diode, transistors

Spokane, Washington

Test equipment

Sunnyvale, CaUfomia

Computer-integrated manufacturing systems, workstation systems integration, PCs, workstations

Waltham, Massachusetts

Medical equipment

Waterloo, Canada

X terminals, industrial terminals

Vancouver, Washington

Printers

Europe

Barcelona, Spain

Printers, drives

Bergamo, Italy

Network products

Boeblingen, Germany

Workstations, midrange computers, analytical instruments, medical instruments

Bristol, England

Disk drives

Grenoble, France

Networking products, personal computers

Lyon, France

Midrange computers

Pineswood, England

Software

South Queensfeny, Scotland

Telecom test equipment, microwave test equipment

\^efontaine, France

A-series and various industrial automation and medical products, networks, telecom

Waldbronn, Germany

Analytical instruments

Japan

Hachioji, Japan

Test equipment

Kobe, Japan

Test equijonent

ROW

Bangalore, India

Distribution

Guadalajara, Mexico

PCs, multiuser systems

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Penang, Malaysia

Semiconductor devices

Singapore

Software networks, printers, graphics imaging components, calculators, keyboards, terminals, optoelectronic LED components

Seoul, South Korea

Instruments, peripherals, distribution

Taipei, Taiwan

Asian language PC products

Aguadilla, Puerto Rico

Printed circuit devices

SUBSIDIARIES

North America

Hewlett-Packard Benelux B.V. (Netherlands)

Hewlett-Packard DDR (Germany)

Hewlett-Packard Equipment Leasing Ltd. (Great

Britain)

Hewlett-Packard Espanola S.A. (Spain)

Hewlett-Packard Finance Ltd. (Great Britain)

Hewlett-Packard France (France) Hewlett-Packard

GmbH (Germany)

Hewlett-Packard International Sales Corporation B.V.

(Netherlands)

Hewlett-Packard Ireland Ltd. (Ireland)

Hewlett-Packard Italiana S.p.A. (Italy)

Hewlett-Packard Leasing Ltd. (Great Britain)

Hewlett-Packard Ltd. (Great Britain)

Hewlett-Packard Nederland B.V. (Netherlands)

Hewlett-Packard Norge A/S (Norway)

Hewlett-Packard OY (Finland)

Hewlett-Packard Product Leasing Ltd. (Great Britain)

Hewlett-Packard S.A. (Switzerland)

Hewlett-Packard (Schweiz) A.G.

Hewlett-Packard Singapore (PTE) Ltd. (Singapore)

Hewlett-Packard Sverige A.B. (Sweden)

Hewlett-Packard Technical B.V. (Netherlands)

Hewlett-Packard Trading S.A. (Switzerland)

IDACOM Electronics (Germany)

ApoUo Computer Inc. (United States)

Apollo World Trade Inc. (United States)

Applied Optoelectronic Technology Corp. (United

States)

EON Systems Inc. (United States)

Fleet Systems Inc. (United States)

Hewlett-Packard Atlantic Inc. (United States)

Hewlett-Packard (Canada) Ltd. (Canada)

Hewlett-Packard Delaware Inc. (United States)

Hewlett-Packard Delaware Funding Inc. (United

States)

Hewlett-Packard Delaware Holding Inc. (United

States)

Hewlett-Packard Delaware Investment Inc. (United

States)

Hewlett-Packard European Distribution Operations

Netherlands Inc. (United States)

Hewlett-Packard Finance Company (United States)

Hewlett-Packard Hellas Inc. (United States)

Hewlett-Packard Inter-Americas Corp. (United

States)

Hewlett-Packard Laboratories Japan Inc. (United

States)

Hewlett-Packard Pipeline Co. (United States)

Hewlett-Packard Puerto Rico (United States)

Hewlett-Packard World Trade Inc. (United States)

IDACOM Electronics Inc. (United States)

The Tall Tree Insurance Company (United States)

Europe

Geneva Investments N.V. (Netherlands Antilles)

Hewlett-Packard A/S (Denmark)

Hewlett-Packard (Austria) Ges.m.b.H. (Austria)

Hewlett-Packard Belgium S.A.N.V. (Belgium)

Japan

Yogokawa Hewlett-Packard Design Systems

Laboratory Ltd. (Japan)

Yokogawa Hewlett-Packard Ltd. (Japan)

ROW

Applied Optoelectronic Technology (Asia) PTE Ltd.

(Singapore)

Applied Optoelectronic Technology Taiwan Ltd.

(Taiwan)

Arrendadora Hewlett-Packard S.A. de C.V. (Mexico)

China Hewlett-Packard Company Ltd. (China)

China Hewlett-Packard (Shenzhen) Company Ltd.

(China)

E.I. Industria e Cuercio S.A. (Brazil)

Grupo Hewlett-Packard S.A. de C.V. (Mexico)

Hewlett-Packard Argentina S.A. (Argentina)

Hewlett-Packard Asia Pacific Limited (Hong Kong)

Hewlett-Packard Australia Finance Ltd. (Australia)

Hewlett-Packard Australia Ltd. (Australia)

Hewlett-Packard Bilgisayar Ve Oleum Sistemleri

Anonim Sirketi (Turkey)

Hewlett-Packard de Venezuela C.A. (Venezuela)

Hewlett-Packard do Brasil S.A. (Brazil)

Hewlett-Packard Far East Pte. Ltd. (Singapore)

Hewlett-Packard FPG (China)

Hewlett-Packard Hong Kong Ltd. (Hong Kong)

i

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Hewlett-Packard (India) Private Ltd. (India)

Hewlett-Packard (India) Software Operation Private

Ltd. (India)

Hewlett-Packard Investment Ltd. (Liberia)

Hewlett-Packard (Malaysia) SDN.BHD. (Malaysia)

Hewlett-Packard Malaysia Technology, Sdn. Bhd.

(Malaysia)

Hewlett-Packard (N.Z.) Ltd. (New Zealand)

Hewlett-Packard Penang Sdn. Bhd. (Malaysia)

Hewlett-Packard S.A. de C.V. (Mexico)

Hewlett-Packard Sales (Malaysia) Sdn. Bhd.

Hewlett-Packard Singapore (Sales) Pte. Ltd.

(Singapore)

Hewlett-Packard Taiwan Ltd. (China)

Hewlett-Packard (Thailand) Ltd. (Thailand)

Hewlett-Packard USSR (USSR)

Moriya Pty. Inc. (Australia)

Samsung Hewlett-Packard Ltd. (Korea)

Sispar Participacoes Ltda. (Brazil)

Telecom Hewlett-Packard Pty. Ltd. (Austtalia)

Informix Software Inc.

HP and Informix signed a five-year joint agreement to develop, market, and sell faster versions of

HP hardware and Informix software primarily for

OLTP and CASE.

Ithaca Software

HP and Ithaca Software agreed to a licensing arrangement under which Ithaca will incorporate

HP Advanced Rendering Technology into its

HOOPS graphics development system.

Lotus Development Corporation

HP and Lotus agreed to a marketing and development treaty designed to make Lotus 1T2-3 software available on HP workstations.

Mentor Graphics and Serveco

HP, Mentor Graphics, and Serveco signed an agreement to manufacture CAD systems in the

Soviet Union for use in electronic equipment design. Serveco, a Soviet-Swiss joint venture, will be the distributor and servicer on the Soviet market

Mentor Graphics will provide specialized CAD software and HP's USSR subsidiary (HP USSR) will manufacture the hardware.

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

1991

Computer Associates International Inc.

HP and Computer Associates agreed to codevelop systems management, database, and applications software for HP's 9000 Series computers that run the HP/UX UNIX-based operating system.

Hermes Plus

HP and Hermes jointly formed the Yugoslavianbased Hermes Plus Company, which will market and service HP personal computers and peripherals in Yugoslavia.

Hitachi Ltd.

HP and Hitachi entered a cooperative agreement to develop expert-systems technology based on an enhanced version of Hitachi's ES/Kemel for HP's

Motorola-based 9000 workstations and Precision

Architecture RISC-based computers.

Microsoft Corporation

HP and Microsoft signed an agreement authorizing

HP to provide worldwide support for Microsoft

LAN Manager, Microsoft Windows graphical environment 3.0, MS-DOS and OS/2 operating systems, and Microsoft SQL Server.

Microtest Inc.

HP and Microtest entered into an agreement in which Microtest will supply its LAN test products to HP, and HP will market them.

Mitsubishi Electric Corporation

HP and Mitsubishi signed an agreement whereby

Mitsubishi will be supplied with a new RISC workstation that it will market in Japan.

Mitsumi Electric Company

HP and Mitsumi signed a contract giving HP an exclusive supply of 3.5-inch DAT meclianisms from Mitsumi for HP's 2GB and 8GB DAT drives.

IBM Corporation

HP and IBM signed a licensing agreement licensing HP's SoftBench integration framework and

Encapsulator software technologies for use in future CASE solutions targeted to IBM's AIXbased RISC System/6000 family of workstations and servers.

Northern Telecom Limited

HP and Northern Telecom signed an agreement in which the companies will jointiy market centtal office-based call handling capabilities based on a link between Northern's DMS-100 central office switch and HP's UNIX-based Apphed Computerized Telephony.

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9

Hewlett-Packard Company

Panacea Inc.

HP and Panacea signed a nonexclusive licensing agreement allowing a version of Panacea's Display

List Driver (DLD) to be tailored to the HP Intelligent Graphics Controllers (IGCs).

Sequoia Systems Inc.

HP extended its OEM and technology-licensing agreement with Sequoia Systems through 1994.

The new agreement extends HP's exclusive marketing rights for Sequoia systems to the worldwide telecommunications market and increases the number of Sequoia's fault-tolerant systems HP is committed to sell in 1992.

Software AG

HP and the Germany-based Software AG made a marketing agreement imder which Software AG's

Adabas database management system. Network networking product, and Natural fourth-generation language will be made available on HP's UNIX platforms.

Sun Microsystems Inc.

HP and Sun entered a joint-development agreement to create a common, next-generation, objectoriented distributed confuting environment called

Distributed Application Architecture (DAA). The move brings together two of the leading operating systems in Sun's Open Network Computing

(ONC) and HP's Network Computing System

(NCS).

HP and Sun also signed an agreement by which

HP will port its mechanical computer-aided design (MCAD) software to Sun SPARCstation workstations.

1990

Actel Corporation

HP and Actel Corporation annoimced that they will cooperate in developing, licensing, and manufacturing an advanced family of field programmable gate arrays (FPGAs). Under the terms of the five-year agreement, HP has immediate access to Actel's FPGA design software and will make a 5 percent equity investment in ActeL

AT&T Computer Systems

HP signed an agreement to license HP NewWave software to AT&T Computer Systems. Terms of the contract were not disclosed.

Cascade Microtech Inc.

HP purchased a minority equity position in Cascade Microtech Inc. and licensed some waferprobing technology to Cascade.

Cognos

HP entered into an agreement with Cognos, establishing Cognos' PowerHouse fourth-generation language (4GL) software as a growth path for users of HP's RAPID and ALLBASE tool sets.

Emerald Systems Corporation

HP signed Emerald Systems to a distribution agreement in which Emerald will offer RAMP backup and restore software for use with the HP

Network Mass Storage System.

Hughes Aircraft Company

HP and Hughes Aircraft Company signed a strategic agreement to develop and manufacture advanced workstations, personal computers, and other related equipment

MAI Basic Four Inc.

MAI Basic Four became an HP VAR. Under the

VAR agreement, MAI Basic Four wiU resell the computers with MANBASE, its MRP 11 (manufacturing/resource/planning) software solution to manufacturers.

McDonnell Douglas Systems Integration Co.

HP and McDonnell Douglas Systems Integration entered into a three-year, $75 million VAR agreement that allows McDonnell Douglas to resell

HP's Motorola and RISC-based HP 9000 family of workstations with its Unigraphics software.

Mentor Graphics Corporation

HP and Mentor Graphics announced a multimillion-dollar software-marketing agreement

Under the terms of the agreement HP will adapt

Mentor Graphics' design and analysis software for board-test applications and will market it with future HP board-test products.

NCR/Data General/Canon

HP signed an agreement to license the HP

NewWave software environment to NCR, Data

General, and Canon.

Novell Inc.

HP and Novell signed a licensing agreement that will enable HP to offer Novell's Portable NetWare network operating system to users of its HP 3000

Model 900 RISC-based minicomputers.

Numetrix Inc.

HP and Numetrix Inc. signed an agreement in which Numetrix's Schedulex production scheduling software will be ported to HP 9000 Series 800

HP-PA computers and HP Vectra personal computers. HP and Numetrix will market the HP-based

Schedulex software solution to process manufacturers in the food, beverage, pulp and paper, chemical, pharmaceutical, and consumer packaged goods industries.

10

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Hewlett-Packard Company

Octet Communications Corporation

HP and Octel Communications Corporation have become strategic partners in bringing highperformance voice-processing equipment to

Europe.

Blue Star Ltd.

HP has established Hewlett-Packard India PvL

Ltd., a joint-venture company with Blue Star Ltd., the sole distributor of HP products in India. HP will have 40 percent equity in the venture and Blue

Star 20 percent The remaining 40 percent will be in the form of pubUc shares to be issued in 1990.

Penstock Inc.

HP announced that Penstock Inc. has become a distributor of HP RF and microwave components and integrated products in the United States and

Canada. Under the terms of the agreement. Penstock win focus on selling devices above 1 GHz and will stock a broad line of silicon and gallium arsenide (GaAs) beam-lead and chip devices, as well as packaged versions of these products. In addition. Penstock will have inventory of selected

HP mechanical switches, programmable step attentuators, and fixed coaxial attentuators.

Carlisle Memory Products Group

HP signed a $4.5 million contract that renews and expands a previous agreement to purchase Carlisle half-inch tape reels in all worldwide locations.

Compression Labs Inc. (CLI)

Compression Labs Inc. signed an agreement with

HP to provide videoconferencing systems for HP's international communications network. The agreement, worth more than $2 million, calls for CLI to provide 50 videoconferencing systems over a twoyear period.

Sequoia Systems Inc.

HP and Sequoia Systems Inc. announced a strategic relationship that includes a matketing agreement, technology hcensing, and an equity investment. Under the technology licensing agreement,

HP has the right to use most of Sequoia's faulttolerance, muiltiprocessor technology in future HP systems. The agreement also calls for the crosslicensing of any improvements to this technology by either company.

Visual Information Technologies Inc. (VITec)

HP and VITec signed an agreement to develop and market a high-end, image-processing workstation that runs on the recently introduced HP Apollo

9000 Model 400s.

Decision Data Inc. (DDI)

HP and Decision Data Inc. established an OEM agreement in which DDI intends to purchase $20 miUion worth of newly developed HP terminals compatible with IBM System/3X and AS/400 computers. The new terminals will be resold by

Decision Data Computer Corporation, a subsidiary of DDI. The OEM terminals, developed jointly by

HP and DDI, are manufactured at HP's automotated facility in RosevUle, California. The terminals will be sold exclusively to DDI.

Interphase

HP, through its Apollo Division, extended its OEM agreement with Inteiphase for another two years at a value of approximately $2.1 million.

1989

3Com Corporation

HP announced a strategic alliance with 3Com, which will license its OS/2-based 3+Open LAN

Manager network operating system to HP. HP will sell the product under the name HP3+Open LAN

Manager.

Aeritalia's Systems and RPVs Group of Italy

HP, Aeritalia's Systems, and RPVs Group of Italy signed a joint agreement to market EMC measurement systems.

AGFA Compugraphic Division

HP and AGFA Compugraphic Division joindy developed Type Director, which is based on

Compugraphic's InteUifont font-scaling technology and has been implemented according to HP's specifications.

Microsoft Corporation

The two companies engaged in joint development to port the MS LAN Manager OS/2 technology to the UNIX system environment.

NEC Corporation

HP and NEC announced an agreement to develop comprehensive development tools for several NEC original microprocessors and microcomputers.

Under the terms of the agreement, HP will develop, sell, and support HP 64700 series emulators for many of NEX's original microprocessors and microcontrollers.

National Semiconductor Corporation

HP and National Semiconductor Corporation announced joint development efforts aimed at providing integrated semiconductor and system network products that conform to the IEEE

802.3 lOBASE-T network standard.

0011509

©1991 Dataquest Incorporated October—^Reproduction Prohibited 11

Hewlett-Packard Company

Nellcor Inc.

HP was granted a license imder Nellcor Inc.'s sensor-coding patents to use NeUcor's oximeter sensors with HP patent-monitoring systems.

MERGERS AND ACQUISITIONS

Oki Electric Industry Co. Ltd.

The two companies agreed to build and operate a printed circuit board facility in Puerto Rico.

Oracle Corporation

HP, through its Apollo Division, announced a marketing agreement with Oracle under which both companies will promote and market the Oracle relational database management systems software products.

1991

Applied Optoelectronic Technology

HP purchased Milpitas, California-based Applied

Optoelectronic Technology, thereby expanding

HP's range of semiconductor test gear. AOT makes automatic testing gear for smart-power modules and integrated circuits.

1989

Philips Components

HP and Phihps Components of the Netherlands announced an agreement to develop and make high-voltage optocouplers.

Samsung Electronics Co. Ltd.

HP and Samsung Electronics Co. in Korea formed an agreement for Samsung to develop, manufacture, and resell chip sets, workstations, and other computers using HP's RISC technology.

Sony of America

Sony of America will supply 5.25-inch rewritable optical disk storage products to HP for the HP

C17QA Optical Disk Library System, the first rewritable optical disk autochanger. The Sony drive and controller will also be used for a standalone rewritable optical disk subsystem, the

HP C1711A, which is fully compatible with the

Optical Disk Library System.

Apollo Computer Inc.

This merger with Apollo gave HP a strong foothold in the networking arena, with a 30.4 percent shate of the 1988 workstation market. The acquisition gave HP an installed base of about 84,000

Apollo machines at almost 3,000 sites and another proprietary RISC architecture.

Spatial Technology Inc.

HP and Spatial Technology Inc. agreed to jointly market solid-modeling software for the mechanical computer-aided design and computer-aided manufacturing market HP bought about a 10 percent equity stake in Spatial.

David Packard

Chairman of the board

John A. Young

President, chief executive officer

Dean O. Morton

Executive vice president, chief operating officer

VHA Supply Company Inc.

HP and VHA Supply Company signed a two-year extension to a three-year purchase agreement signed in 1987, covering a variety of HP medicalelectronic and computer products. Under the terms of the agreement, HP will provide cridcal-care and diagnostic equipment as well as computer systems to VHA's national network of 669 locally owned hospitals and their 177 affiliates. Included in the critical-care equipment are the HP CareVue 9000 clinical information system and the HP Component

Monitoring System.

Optotech

HP purchased certain assets of Optotech, a privately held company that designs and develops optical disk drives.

KEY OFFICERS

Richard C. Alberding

Executive vice president. Marketing and International

John L. Doyle

Executive vice president. Business Development

Richard A. Hackborn

Executive vice president, Computer Products

Organization

Lewis E. Piatt

Executive vice president. Computer Systems

Organization

m

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011509

Hewlett-Packard Company

William E. Terry

Executive vice president. Measurement Systems

• • • • • • ^

Robert Wayman FOUNDERS

Senior vice president, chief financial officer

William R. Hewlett (stepped down as Vice President

^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ M of board of directors, February 1987)

David Packard

PRINCIPAL INVESTORS

David Packard—17.1 percent

William R. Hewlett—12.2 percent

0011509

©1991 Dataquest Incorporated October—Repnxiuction Prohibited 13

Hewlett-Packard Company

Table 4

Balance Sheet

Fiscal Year Ending October 31

(Millions of U.S. Dollars)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

1986

1,372

1,344

0

981

117

3,814

2,236

237

6,287

1,518

110

285

1,913

0

712

0

3,662

4,374

6,287

1987

2,645

1,561

0

1,117

167

5,490

2,328

315

8,133

2,735

88

288

3,111

0

776

0

4,246

5,022

8,133

1988

814

1,982

118

1,478

170

4,562

2,516

780

7,858

2,589

392

344

3,325

0

234

0

4,299

4,533

1989

906

2,494

20

1,947

364

5,731

2,893

1,451

10,075

3,743

474

412

4,629

0

459

0

4,987

5,446

1990

1,077

2,883

0

2,092

458

6,510

3,201

1,684

11,395

4,443

139

450

5,032

0

739

0

5,624

6,363

7,858 10,075 11,395

Soutce: Hewlett-Packard Company

Annual Reports and Fbims 10-K.

Dataquest (October 1991)

14

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011509

Hewlett-Packard Company

Table 5

Consolidated Income Statement

Fiscal Year Ending October 31

(Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

U.S. Revenue

Non-U.S. Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

2.02

0.22

17.09

1986

7,102

3,812

3,290

3,353

824

2,145

497

780

10.98

33.90

516

256

1987

8,090

4,122

3,968

3,785

901

2,442

510

962

11.89

33.10

644

257

2.50

0.23

19.54

1988

9,831

4,763

5,068

4,832

1,056

2,859

648

1,142

11.62

28.50

816

234

1989

11,899

5,561

6,338

6,091

1,269

3,327

857

1,151

9.67

28.00

829

238

3.36

0.28

19.37

3.52

0.36

22.88

3.06

0.42

26.08

Sovce: Hewlett-Packard Company

Annual Reports and Fonns 10-K

Dataquest (October 1991)

1990

13,233

6,025

7,208

6,993

1,367

3,711

955

1,056

7.98

0

739

244

Table 6

Key Financial Ratios

Fiscal Year Ending October 31

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue ($K)/Employee

Capital Spending % of Assets

1986

2.51

143.74

34.71

43.74

8.21

11.80

7.27

11.60

7.00

82,000

86.61

7.91

1987

2.01

161.95

54.46

61.95

7.92

12.82

7.96

11.14

6.30

82,000

98.66

6.27

1988 1989

1990

1.76

173.35

57.11

73.35

1.53

185.00

68.73

85.00

1.47

179.08

69.83

79.08

10.38

18.00

8.30

8.23

15.22

6.97

6.49

11.61

5.58

10.74

6.59

87,000

113.00

8.25

10,66

7.20

95,000

125.25

8.51

10.33

7.22

92,000

143.84

8.38

Source: Hewlett-Packard Con^wny

Annual Reports

Dataquest (October 1991)

15

0011509

©1991 Dataquest Incorporated October—^Reproduction Prohibited

Hitachi Ltd.

6, Kanda-Surugadai

4-chome, Chiyuoda-ku

Tokyo 101, Japan

Telephone: (03) 258-1111

Fax: (03) 253-2186

Dun's Number: 69-054-1503

Date Founded: 1910

CORPORATE STRATEGIC DIRECTION

Hitachi Ltd. was foimded to develop indigenous Japanese electrical power equipment manufacturing technology. Initially, the company emphasized the development of heavy electrical equipment and industrial machinery. After World War H, Hitachi expanded into the consumer product area and in the 1950s entered the electronics field, producing computers, semiconductors, and other electronic devices.

Over the years, most of Hitachi's business operations involved large equipment such as power plants and industrial machinery. The plant-as-profit-center concept was the basis of the management system. Today, however, a large percentage of Hitachi's business relates to electric and electronic consumer goods, office automation equipment, and other mass-market products. made an effort to expand production at overseas sites.

As part of this expansion, a company was set up in

France for manufacturing computer products. Hitachi also increased the production capacity of a number of bases in other parts of the world.

During fiscal year 1991, operating income was held back by the high value of the yen, the economic slowdown in the United States and Europe, and the transition to a new generation of products in key computer and semiconductor sectors. In order to offset these factors, Hitachi increased its plant and equipment investment by 19 percent to ¥781,488 million (U.S.$55.6 million). (Percentage changes refer only to ¥ amounts; U.S.$ percentage changes will differ because of fluctuations in Dataquest exchange rates.) Most of these funds were used to strengthen and consolidate the computer and semiconductor operations.

Under the new system, the business divisions make the decisions regarding product development and coordinate the work of the laboratory, plant, and sales division in all phases of the development process, from R&D to marketing. This new system created the

Semiconductor Design and Development Center and the Instimte of Advanced Business Systems, as well as a system for promoting the development and marketing of new products in new business fields. During

1990, the office computer system design operations, which had been split between two works, were consolidated under die newly established Center for

Small-Scale Processors and Workstations Development. Thus, a new profit center was created under the wing of the computer division.

Hitachi also consoUdated the operations of its subsidiaries in each of the three major regions—^United

States, Europe, and Asia—where the company has production and marketing bases. Hitachi also

Hitachi's consolidated revenue of ¥7,737.0 billion

(U.S.$54.8 billion) for fiscal 1991 was an increase of

10.65 percent from ¥7,077.8 biUion (U.S.$49.5 bUlion) during fiscal 1990.

Hitachi is divided into four separate segments: Information Systems and Electronics, Power and Industrial

Systems, Consumer Products, and Materials and

Others. Information Systems and Electronics was the largest contributor of revenue with 34 percent or

¥2,781,351 million (U.S.$19,798 million); Power and Industrial Systems contributed 28 percent or ¥2,357,892 million (U.S.$16,783 million);

Materials and Others contributed 25 percent or

¥2,100,870 million (U.S.$14,953 million); and

Consumer Products contributed 13 percent or

¥1,107,388 milhon (U.S.$7,882 miUion).

0012329

©1991 Dataquest Incorporated November—Reproduction Prohibited I

Hitachi Ltd.

Net income increased by 10.4 percent to ¥230.2 billion (U.S.$1.6 billion) for fiscal 1991, compared with ¥211.0 billion (U.S.$1.5 biUion) in fiscal 1990.

The improved results were attributed to the company's steady expansion on a worldwide scale. Hitachi employs more than 290,000 people worldwide.

Research and development expenditure increased to

¥490.7 billion (U.S.$3.5 biUion) and represented

6.3 percent of total revenue for the period. Over

60 percent of this expenditure was channeled into the

Information Systems and Electronics division. During

1990, Advanced Research Laboratory was relocated to Saitama Prefecture, Japan. This laboratory concentrates on long-temi research projects with a duration of 10 to 20 years. It is currently engaged in research in the areas of quantum measurement, software science, biotechnology, and materials science.

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highlights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 7 at the end of this backgrounder provide comprehensive financial information.

BUSINESS SEGMENT STRATEGIC

DIRECTION

In the second half of 1990, the supply of MOS memories exceeded demand, increasing the downward pressure on prices. Therefore, as a result of industry cutbacks in the production of 1Mb DRAMs implemented in fall 1990, prices stabilized. During the latter half of 1990, there was a growing demand for 4Mb DRAMs for use in new workstations and

32-bit personal computers. According to Dataquest estimates, Hitachi increased its DRAM market share firam 8.5 percent in 1989 to 9.7 percent in 1990, and the company ranked fourth worldwide in DRAM production, accounting for U.S.$697 million in revenue.

Computers

During fiscal 1990, Hitachi introduced the large-scale general-purpose HITACHI M-880 Processor Group.

This system will become a mainstay product in

Hitachi's computer operations. In addition, the technology involved will be applied extensively in other products. During 1990, in the business computer market, Hitachi had a 12.45 percent worldwide market share and ranked third in supercomputers. In mainframes, it ranked second with a 7.40 percent worldwide market share. In the technical computer market, Hitachi had a 2.09 percent worldwide market share and ranked tenth in supercomputers. In mainframes, it ranked third with a 7.79 percent worldwide market share. In the personal computer market,

Hitachi had less than one percent of the market

Computer Storage

Semiconductors

During calendar year 1990, Hitachi was the third largest worldwide semiconductor manufacturer with

U.S.$3,893 million, representing a 6.7 percent market share. Dataquest estimates the company's single largest market to be Japan, which generated approximately U.S.$2.8 million, representing 12.1 percent of the semiconductor market during 1990. Dataquest ranks Hitachi third of all Japanese companies in this market. Hitachi's next largest market is North America, where Hitachi's sales were U.S.$517 million in calendar 1990, ranking eighth, with a 3.0 percent market share.

In addition to intioducing the HITACHI M-880, the company also introduced die H-6587 series of massstorage magnetic disk storage subsystems for large computers. Dataquest estimates that Hitachi ranks third in the worldwide total optical disk drive market with 11.5 percent of the maiket and U.S.$23.4 million in 1990 revenue. In the CD-ROM optical disk drive market, Hitachi ranks second worldwide with revenue of U.S.$10.4 milUon and a market share of 17.5 percent. Hitachi also ranks third in the worldwide

12-inch WORM optical disk drive maiket with a

20 percent maiket share and U.S.$13 million in revenue.

Hitachi was the third largest worldwide supplier of Other Products

MOS memory in 1990, accounting for approximately

U.S.$1,366 million in revenue worldwide. This

Hitachi's Power and Industrial Systems witnessed represented a 10 percent share of the worldwide a 5 percent increase in fiscal 1990 sales over 1989. market, which is an increase of about 10 percent over

The main contributing factors were a higher level of

1989. industrial demand accompanying the continuing

©1991 Dataquest Incorporated November—Reproduction Prohibited

0012329

Hitachi Ltd.

expansion of the domestic economy. Sales in

Hitachi's Consxmier Products division grew 10 percent in 1990 firom 1989. In Japan, sales were derived from air conditioners, washing machines, and 8mm camera/recorders. Although overseas sales were severely affected by the depressed state of the U.S. market, there was a recovery in exports of color television sets and VCRs to China and brisk exports to the USSR and Eastern Europe. The Materials and

Others division posted an increase of 12 percent over

1989. Hitachi Cable Ltd. achieved an increase in sales based on a combination of strong domestic demand, mostly from the electric equipment and construction industries and brisk exports. At Hitachi Metals Ltd., sales were pushed up by demand from the automobile and electronics-related industries. Active business in the electronics equipment and industries, plus a high level of new housing starts, led to increased sales for

Hitachi Chemical Co. Ltd. The major part of the service sector business was derived from Hitachi

Transport System. The continuing driviog pace of the

Japanese economy generated strong demand for freight-hauling services and produced an increase in company sales.

Further Information

For further information pertaining to die company's business segments, please contact the appropriate

Dataquest industry service.

0012329

©1991 Dataquest Incorporated November—Reproduction Prohibited

Hitachi Ltd.

Table 1

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

Five-Year Revenue

Percent Change

1987

30.4

34.19

1988

36.0

18.61

Capital Expenditure

Percent of Revenue

4.1

13.56

2.7

7.49

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

Exchange Rate ( U . S . $ 1 ^

1.9

6.34

161,325

0.19

0.6

38.67

159.56

2.3

6.51

159,910

0.23

1.0

60.22

138.03

1989

49.9

38.48

1990

49.5

(0.79)

1991

54.8

10.65

4.0

8.04

2.9

5.83

3.6

7.27

3.0

6.07

5.3

9.61

3.5

6.34

274,508

0.18

290,000

0.17

310,000

0.18

1.4

46.02

128.25

1.5

2.01

142.93

Source: Hitachi Lid.

Annual Reports

Dataquest (November 1991)

1.6

10.43

141.21

Table 2

Revenue by Geographic Region (Percent)

Region

Japan

International

1987

73.82

26.18

1988

76.00

24.00

1989

77.05

22.95

1990

76.58

23.42

1991

76.02

23.98

Source: Hitachi, Ltd.

Annual Reports

Dataquest (November 1991)

©1991 Dataquest Incorporated November—Reproduction Prohibited

0012329

Hitachi Ltd.

1991 SALES OFFICE LOCATIONS

Hitachi Consumer Products (U.K.), United Kingdom

Color TVs

Hitachi Semiconductor Europe, Germany

Semiconductors

North America—2

Europe—2

Asia/Pacific—61

Japan—50

ROW—9

MANUFACTURING LOCATIONS

North America

High Voltage Breakers, Norcross, Georgia

SF6 gas breakers

Hitachi Automotive Products, Farmingtonhills,

Michigan

Electronic auto parts

Hitachi Cable Manchester Inc., Manchester, New

Hampshire

Cables

Hitachi Cable Manchester Inc., New Albany, Indiana

Automobile brake hose

Hitachi Computer Products (America), Norman,

Oklahoma

Computer products (magnetic disk devices, magnetic tape cartridges)

Hitachi Construction Machinery Corp., Brampton,

Ontario

Excavators, cranes, tunnel shield machines

Hitachi Electronic Devices USA Inc., Greenville,

South Carolina

Color picture mbes

Hitachi Home Electronics of America, Anaheim,

California

Color TVs, VCRs

Hitachi Denshi (Canada) Ltd., Scarborough, Ontario

Broadcast and professional video, CCTV equipment, test and instrumentation

Hitachi (HSC) Canada Inc., Pointe Claire, Quebec

TVs, VCRs, and household electric appliances

Hitachi Instruments Inc.

Medical instruments

Hitachi Semiconductor (America), Irving, Texas

Semiconductors

Hitachi Telecom, Norcross, Georgia

Digital PBXs

Europe

Hitachi Consumer Products (Europe), Germany

VCRs

AsialPacific

Akita Electronic Co., Akita, Japan

MOS, bipolar IC

Hanshi Electric, Japan

Ignition coils for automobiles

Haramachi Semiconductor Ltd., Ibaraga, Japan

Diodes, thyristors

Hitachi Computer Engineering, Japan

Development of automatic designing systems

Hitachi Consumer Products, Malaysia

TV parts

Hitachi Consumer Products, Singapore

Color TVs, audio equipment, vacuum cleaners

Hitachi Consumer Products, Thailand

Electric fans, refrigerators, TVs, motors, air conditioners, electric rice cookers

Hitachi Cubu Electric, Japan

Switchboards

Hitachi Denshi, Japan

Communications equipment, measuring instruments, information equipment

Hitachi Electronic Devices, Singapore

Color CRTs

Hitachi Electronics Engineering, Japan

Information equipment, semiconductor devices, energy-saving equipment

Hitachi Elevator Engineering, Singapore

Elevators, escalators

Hitachi Engineering, Japan

Electric/electronic equipment, plant engineering

Hitachi Haramachi Semiconductor, Japan

Semiconductor parts

Hitachi Kiden Kogyo, Japan

Cranes, water treatment equipment, FA-related equipment

Hitachi Kyowa Kogyo, Japan

Electric equipment

Hitachi Maxell, Japan

Dry batteries, magnetic tapes, electronic devices

Hitachi Medical, Japan

Medical equipment

Hitachi Microcomputer Engineering, Tokyo, Japan

MPUs, ASICs

Hitachi Mizusawa, Japan

Transformers for TVs

Hitachi Naka Seiki, Japan

Chromatographic equipment, scientific instruments

Hitachi Nissin Electronics, Japan

Electronic parts

0012329

©1991 Dataquest Incorporated November—Reproduction Prohibited

Hitachi Ltd.

Hitachi Ohira Industrial, Japan

Parts for refrigerators, air conditioners

Hitachi Process Computer Engineering, Japan

Process computers

Hitachi Semiconductor, Malaysia

Semiconductors

Hitachi Setsubi Engineering, Japan

FA equipment

Hitachi Techno Engineering, Japan

Electronic part manufacturing equipment

Hitachi Telecom Technologies, Japan

Switching systems

Hitachi Television, Taiwan

Color TVs, audio equipment, displays

Hitachi Video Engineering, Japan

Development of video equipment

Hitachi Works, Ibaraga, Japan

Discrete devices

Hitachi Yomezawa Electronic, Japan

Semiconductor elements

Hokkai Semiconductor, Hokkaido, Japan

SRAMs

Horiba Ltd., Japan

Electric measuring instruments

Japan Servo, Japan

Precision motors

Jidosha Denki Kogyo, Japan

Electrical auto parts

Kaohsiung Hitachi Electronics, Taiwan

Electronic parts, transistors, LCDs

Kokusai Electric, Japan

Electric communications equipment

Kokusan Denki, Japan

Electrical auto parts, generators, motors

Komoro Works, Nagano, Japan

Photo devices, hybrid ICs

Mobara Works, Chiba, Japan

DRAMs, CMOS logic, LCDs

Musashi Works, Tokyo, Japan

MPUs, diodes, DRAMs, SRAMs

Naka Works, Ibaraga, Japan

Semiconductor sensors, DRAMs, SRAMs

Nakayo Telecommunications, Japan

Telephone and switching systems

Nigata Works, Nigata, Japan

Linear, bipolar digital ICs

Nippon Colimibia, Japan

Records, stereos, and other audio equipment

Nissin Electronics Ltd., Ibaraga, Japan

MOS

Taga Sangyo, Japan

Electric equipment

Taiwan Hitachi, Taiwan

Room air conditioners

Takasaki Woiks, Gunma, Japan

Bipolar and MOS ICs, EPROMs, CMOS logic

Tobu Semiconductor Ltd., Aomari, Japan

Bipolar ICs

Tobu Semiconductor Ltd., Saitama, Japan

Transistor, hybrid ICs

Tokico Ltd., Japan

Electrical auto parts and equipment

Tokyo Electronics Co., Yamanashi, Japan

Diodes, bipolar ICs

Yagi Antenna, Japan

Antennas

Yomezawa Electronic Co., Yamagata, Japan

MOS

ROW

ladustrias Hitachi, Brazil

Distribution equipment, air conditioners, electronic parts, transformers, switches

Hitachi Consumer Products de Mexico, Mexico

Televisions

SUBSIDIARIES

North America

Hitachi America Ltd. (United States)

Hitachi Automotive Products (USA) Inc.

(United States)

Hitachi (Canadian) Ltd. (Canada)

Hitachi Computer Products (America) Inc.

(United States)

I£tachi Electronic Devices (United States)

Hitachi Farmington Technical Center (United States)

Hitachi Home Electronics of America Inc.

(United States)

Ifitachi Micro Systems Inc. (United States)

Hitachi Semiconductor (America) Inc. (United States)

Hitachi Telecom (USA) Inc. (United States)

Europe

Hitachi Consumer Products Europe Ltd.

(United Kingdom)

Ifitachi Semiconductor Europe (Germany)

Hitachi Consumer Products (Europe) (Germany)

Asia/Pacific

Asahi Kogyo Co. Ltd. (Japan)

Babcock-Hitachi K.K. (Japan)

Chuo Shoji Ltd. (Japan)

©1991 Dataquest Incorporated November—Reproduction Prohibited

0012329

Hitachi Ltd.

Hitachi Air Conditioning & Refrigeration Co. Ltd.

(Japan)

Hitachi Australia Ltd. (Australia)

Hitachi Automobile Appliances Sales Co. Ltd.

(Japan)

Hitachi Cable Ltd. (Japan)

Hitachi Chemical Co. Ltd. (Japan)

Hitachi Construction Machinery Co. Ltd. (Japan)

Hitachi Consumer Products (Malaysia) Sdn. Bhd.

(Malaysia)

Hitachi Consumer Products Pte. Ltd.

Hitachi Credit Corporation (Japan)

Hitachi Electronic Components (Asia) Ltd.

(Hong Kong)

Hitachi Electronic Devices (Singapore) Pte. Ltd.

(Singapore)

Hitachi Denshi Ltd. (Japan)

Hitachi Electronics Engineering Co. Ltd. (Japan)

Hitachi Electronics Service Co. Ltd. (Japan)

Hitachi Elevator Engiaeering and Service Co. Ltd.

(Japan)

Hitachi Engineering Co. Ltd. (Japan)

Hitachi Heating Appliances Co. Ltd. (Japan)

Hitachi Higashi Shohin Engineering Ltd. (Japan)

Hitachi Hokkai Semiconductor Ltd. (Japan)

Hitachi Kiden Kogyo Ltd. (Japan)

Hitachi Lighting Ltd. (Japan)

Hitachi Machinery and ^gineering Ltd. (Japan)

Hitachi Maxell Ltd. (Japan)

Hitachi Medical Corporation (Japan)

Hitachi Metals Ltd. (Japan)

Hitachi Mokuzai Jisho Ltd. (Japan)

Hitachi Nishi Shohin Engineering Ltd. (Japan)

Hitachi Plant Engineering & Construction Co. Ltd.

(Japan)

Hitachi Power Engineering Co. Ltd. (Japan)

Hitachi Printing Co. Ltd. (Japan)

Hitachi Sales Corporation (Japan)

Hitachi Seiko Ltd. (Japan)

Hitachi Semiconductor (Malaysia) Sdn. Bhd.

(Malaysia)

Hitachi Service Engineering Co. Ltd. (Japan)

Hitachi Software Engineering Co. Ltd. (Japan)

Hitachi Techno Engineering Co. Ltd. (Japan)

Hitachi Telecom Technologie Ltd. (Japan)

Hitachi Television Ltd. (Taiwan)

Hitachi Tochigi Electronics Co. Ltd. (Japan)

Hitachi Tohbu Semiconductor Ltd. (Japan)

Hitachi Tokyo Electronics Co. Ltd. (Japan)

Hitachi Transport System Ltd. (Japan)

Hitachi Welfare Service Ltd. (Japan)

Japan Servo Co. Ltd. (Japan)

Nippon Business Consultant Co. Ltd. (Japan)

Nissei Sangyo Co. Ltd. (Japan)

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

1991

Texas Instruments Inc., Fujitsu Ltd., and Sony

Corporation

Texas Instruments, Fujitsu, and Sony, along with

Hitachi Ltd., have agreed to collaborate on HDTV chip development Texas Instruments will be doing the frame memory store, Fujitsu the signal processors, Sony the analog components, and Hitachi the audio circuits. The full Muse chip set is scheduled for completion duriug the first quarter of 1992.

Bull CP8 S.A.

Bull CP8 S.A., a subsidiary of Groupe BuU, located in Trappes France, has signed Hitachi Ltd. as the first Japanese licensee of its selfprogrammable one-chip microcomputer (SPOM) patent Hitachi's chips for microcomputer cards will be made available in Japan through Tokyobased SPOM Japan KK, a joint venture between

Bull CP8 and Dai Nippon Printing Co. Ltd, and worldwide through Hitachi's overseas sales office.

Dongfang Power Corp.

Hitachi Ltd. is planning to supply thermal power plant construction technology to Dongfang Power

Corp., a Chinese company located in Sichuan

Province. Under a 10-year agreement with the Chinese company, Hitachi will provide technology relating to steam turbines and generator for use in

600,000kw class thermal power stations. The two companies will then jointiy construct four power plants.

TRW Inc.

Hitachi Ltd. and TRW Inc. formed a 15-year strategic alliance to joindy pursue opportunities in space systems and related ground systems and technologies. The two companies signed an agreement to set up a management team that will meet periodically to review future space programs, market opportunities, and technology requirements.

Ultra-Network Technologies

Ultra-Network Technologies, a U.S. network system manufacturer, and Hitachi Ltd. have formed a software agreement. The agreement will allow

Hitachi to port ULTRANET software, a high-speed network software package developed by Ultra-

Network, to its mainframe computers. The new

0012329

©1991 Dataquest Incorporated November—Reproduction Prohibited

Hitachi Ltd. version of ULTRANET will run under Hitachi's

VOS3 operating system.

Hewlett-Packard Company

Hewlett-Packard Company (HP) and Hitachi Ltd. have agreed to joindy develop an ardficial intelligence software product based on Hitachi's ES/

Kernel expert systems technology. The new software will run on HP 9000 UNIX workstation as weU as on Hitachi workstations.

National Semiconductor Corporation

National Semiconductor Corporation and Hitachi

Ltd. have signed a 10-year patent cross-licensing agreement that covers aU semiconductor products and technologies developed by either company in tbe past and during the course of the agreement

The new agreement expands and replaces a previous cross-hcensing agreement between the two companies concerning FACT logic products.

Goldstar Electron Company Ltd.

Hitachi Ltd. licensed Lucky Goldstar Group's

Goldstar Electron Company Ltd. to fabricate 4Mb memory chips to Hitachi's design. Part of the ou^ut will be sold back to Hitachi.

1990

Comparex Information Systems GmbH

Comparex Information Systems GmbH agreed to ship Hitachi's new Integrated Vector Feature for its

8/9X series of processors.

VLSI Technology Inc.

Hitachi plans to supply SRAMs to VLSI Technology on an OEM basis. The SRAMs have been joindy developed by the two companies.

Kansai Electric Power Co., Matsushita Electric

Industrial Co. Ltd., Toshiba Corporation, Mitsubishi Electronics Corporation, Sumitomo Electric Industries Ltd., Kawasaki Heavy Industries

Ltd., and Kobe Steel Ltd.

Hitachi agreed to set up a new company, which wiU perform research and development for free electron lasers with the preceding companies.

Sears, Roebuck and Company

Hitachi agreed to let Sears market its VY15A video printer.

Zuken Inc.

Hitachi agreed to allow Zuken to develop CAD/

CAM/CAE software packages for the 2050G

Series of engineering workstations made by

Hitachi.

Adaptive Information Systems (AIS)

AIS has been formed by Hitachi to market document image processing systems using optical storage technology.

Hewlett-Packard

Hewlett-Packard is hcensing its proprietary Precision Architecture to Hitachi. The two companies also agreed to joindy develop a new set of chips using HP's proprietary Precision Architecture

RISC MPU technology.

Texas Instruments Inc.

Texas Instruments supplied SRAMs to Hitachi on an OEM basis.

GoldStar

Hitachi signed a major pact with South Korea's

GoldStar Company covering 1Mb DRAMs, for which Hitachi wiU provide technical consultations and manufacturing technology. Hitachi will get royalty payments fix)m GoldStar and eventually will buy chips to sell under its own label.

Cray litis agreement gives each company the right to make use of the other's patents in designing computer hardware.

National Semiconductor

Under this production agreement for FACT logic devices, both companies can mutually produce independently defined and independentiy developed new fimctions.

MERGERS AND ACQUISITIONS

1991

Hitachi has made no merger or acquisition in 1991.

1989

Sun Microsystems Inc.

Hitachi licensed Sun's Open Network Computing/

Network File System technology for implementation on Hitachi's mainframe computers.

1990

Dataproducts Corporation

Two Hitachi affiliates, Hitachi Koki and Nissei

Sangyo, acquired Dataproducts Corporation for approximately $160 million. Dataproducts

«

©1991 Dataquest Incorporated November—Reproduction Prohibited

0012329

Hitachi Ltd.

manufactures a broad range of band, dot matnx, laser, solid ink, and thermal printers, and a wide range of printer supplies. Dataproducts is counting on solid ink jet printers to play a significant role in the printer industry and is investing heavily to finance this strategically important technology. The

1988 acquisition of Imaging Solutions Inc. gave

Dataproducts 100 percent ownership of this new technology. Dataproducts had sales of $353 million in fiscal 1989.

Takeo Miura

Executive vice president and representative director

Toshi Kitamura

Executive vice president and representative director

Tadashi Okita

Executive vice president and representative director

National Advanced Systems

Hitachi purchased National Advanced Systems from National Semiconductor Corporation. The name of the company was changed to Hitachi Data

Systems. The company markets and services mainframe computers and peripheral subsystems.

Iwao Matsuoka

Executive vice president and representative director

PRINCIPAL INVESTORS

Nippon Life Insurance—^3.8 percent

Sumitomo Trust—2.7 percent

Mitsubishi Trust—2.1 percent

Dai-ichi Life Insurance—2.6 percent

K E Y OFFICERS

Katsushige Mita

Chairman and representative director

Tsutomu Kanai

President and representative director

Yutaka Sonoyama

Executive vice president and representative director

Sutezo Hata

Executive vice president and representative director

FOUNDERS

Namihei Odaira

0012329

©1991 Dataquest Incorporated November—Reproduction Prohibited

Hitachi Ltd.

Table 3

Balance Sheet

Fiscal Year Ending in March

(Billions of U.S. Dollars)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Minority Interests

Total Liabilities and

Shareholders' Equity

Exchange Rate (U.S.$1=¥)

1987

5.6

6.3

2.9

5.6

1.1

21.6

7.4

4.4

33.4

14.3

3.1

2.2

19.6

0

0.9

1.3

9.3

11.4

2.3

33.4

159.56

1988

8.0

7.8

3.0

7.0

1.4

27.2

8,2

5.3

40.7

17.4

3.1

2.8

23.3

0

1.3

1.8

11.5

14.6

2.8

40.7

138.03

1989

12.8

10.7

3.0

9.7

1.7

38.0

11.5

4.6

54.1

24.8

4.1

3.8

32.6

0

1.7

2.5

13.6

17.8

3.7

1990

13.0

11.2

2.3

9.5

1.8

37.7

12.0

4.9

54.6

23.2

6.2

3.5

32.9

0

1.7

2.5

13.7

17.9

3.8

1991

11.7

13.0

2.7

11.3

2.0

40.7

14.1

5.6

60.4

26.2

6.3

3.7

36.2

0

1.9

2.9

15.1

19.9

4.3

54.1

128.25

54.6

142.93

SoDtce: Hitachi Ltd.

Anaual Reports

Dataqnest (November 1991)

60.4

141.21

10 ©1991 Dataquest Incoiporated November—Reproduction Prohibited

0012329

Hitachi Ltd.

Table 4

Consolidated Income Statement

Fiscal Year Ending in March

(Billions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

Japanese Revenue

Non-Japanese Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate ( U . S . $ 1 ^

0.21

0.06

0

159.56

1987

30.4

22.4

8.0

23.0

1.9

6.0

4.1

1.6

5.33

57.50

0.6

2,816.3

1988

36.0

27.3

8.7

28.7

2.3

7.5

2.7

2.4

6.66

56.10

1.0

2,921.7

0.32

0.07

0.01

138.03

1989

49.9

38.4

11.5

35.5

2.9

11.0

4.0

3.8

7.67

56.10

1.4

3,017.7

1990

49.5

38.1

11.6

35.1

3.0

10.7

3.6

3.7

7.49

53.90

1.5

3,072.8

1991

54.8

40.8

13.1

38.4

3.5

12.8

5.3

4.0

7.27

51.20

1.6

3,273.7

0.46

0.07

0.01

128.25

0.43

0.06

0.01

142.93

Source: Hitacbi Ltd.

Annual Reports

Dataquest (November 1991)

0.44

0.06

0.01

141.21

0012329

©1991 Dataquest Incorporated November—Reproduction Prohibited

11

Hitachi Ltd.

Table 5

Balance Sheet

Fiscal Year Ending in March

(Billions of Yen)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained Ejumings

Total Shareholders' Equity

Minority Interests

Total Liabilities and

Shareholders' Equity

Exchange Rate (U.S.$1=*)

1987

892.9

1,010.6

470.6

898.5

172.2

3,444.8

1,179.1

704.1

5,327.9

2,288.5

488.9

352.3

3,129.7

0

141.2

199.6

1,485.0

1,825.8

372.4

5,327.9

159.56

1988

1,103.9

1,080.7

412.3

960.6

199.9

3,757.4

1,133.0

730.7

5,621.1

2,399.0

432.8

381.9

3,213.7

0

180.3

244.4

1,593.9

2,018.6

388.8

5,621.1

138.03

3,183.5

520.9

481.0

4,185.4

0

219.4

322.0

1,740.3

2,281.7

470.4

1989

1,638.3

1,372.2

385.1

1,250.0

224.4

4,870.0

1,473.1

594.4

6,937.5

1990

1,853.7

1,594.3

324.8

1,355.0

263.1

5,390.9

1,708.9

705.3

7,805.1

3,314.9

886.8

494.0

4,695.7

0

246.9

357.8

1,956.1

2,560.8

548.6

3,694.3

891.0

520.1

5,105.4

0

269.7

410.4

2,131.0

2,811.1

609.5

1991

1,648.5

1,833.9

384.9

1,597.1

286.6

5,751.0

1,985.7

789.3

8,526.0

6,937.5

128.25

7,805.1

142.93

8,526.0

141.21

Souce: Hitachi Ltd.

Annual Reports and

Dataquest (November 1991)

12

©1991 Dataquest Incorporated November—Reproduction Prohibited

0012329

Hitachi Ltd.

Table 6

Consolidated Income Statement

Fiscal Year Ending in March

(Billions of Yen, except Per Share Data)

Consolidated Income Statement

Revenue

Japanese Revenue

Non-Japanese Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (U.S.$1=¥)

1987

4.848.7

3,579.3

1,269.4

3,675.0

307.6

958.8

657.4

258.3

5.33

57.50

98.7

2,816.3

33.45

9.00

0.65

159.56

1988

4,975.0

3,781.0

1,194.0

3,961.9

324.0

1,032.4

320.4

331.1

6.66

56.10

136.8

2,921.7

44.14

9.00

0.69

138.03

1989

6,401.4

4,932.3

1,469.1

4,552.1

373.5

1,416.1

532.4

491.1

7.67

55.50

185.6

3,017.7

1990

7,077.8

5,420.1

1,657.7

5,023.5

429.4

1,533.2

514.9

530.0

7.49

53.10

211.0

3,072.8

58.94

9.00

0.76

128.25

61.71

9.00

0.83

142.93

Source: Hitachi Ltd.

Amnial Reports

Dataquest (November 1991)

65.96

9.00

0.86

141.21

1991

7,737.0

5,881.6

1,855.4

5,417.2

490.7

1,813.4

743.4

562.1

7.27

51.70

230.2

3,273.7

Table 7

Key Financial Ratios

Fiscal Year Ending in March

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue (¥K)/Employee

Capital Spending % of Assets

Exchange Rate (U.S.$1=¥)

1987

1.51

291.81

125.34

171.42

1.85

5.41

2.04

6.34

13.56

161,325

30.06

12.34

159.56

1988

1.57

278.47

118.84

159.20

2.43

6.78

2.75

6.51

6.44

159,910

31.11

5.70

138.03

1989

1990

1991

1.53

304.05

139.52

183.43

1.63

304.79

129.45

183.37

1.56

303.30

131.42

181.62

2.68

8.13

2.90

2.70

8.24

2.98

2.70

8.19

2.98

5.83

8.32

274,508

23.32

7.67

128.25

6.07

7.27

290,000

24.41

6.60

142.93

6.34

9.61

290,000

26.68

8.72

141.21

Source: Hitachi Ltd.

Annual Reports

Dataquest (November 1991)

(X)12329

©1991 Dataquest Incorporated November—Reproduction Prohibited

13

Inmos International pic

BACKGROUND AND OVERVIEW

Inmos International pic was founded in 1978 by two Americans, Richard Petritz and

Paul Schroeder, and an Englishman, lann Barron. Inmos was primarily a spin-off company from Mostek Corporation. Mr. Petritz was a foimder of Mostek, and

Mr. Schroeder was one of Mostek's key memory design managers. Under the original agreement, Inmos Ltd. was to be a British-backed semiconductor venture funded by the

National Enterprise Board (NEB). The concept called for design and manufacturing facilities in both the United States and the United Kingdom. In this way, Inmos planned to gain synergy from the existing high-technology base in the United States. The Labor government in the United Kingdom approved the plan in May 1978 and invested an initial

£50 million in the Company. Inmos' strategy was to start out by making high price/performance ICs. These were to be marketed to customers in demanding areas

(e.g., telecommunications, measuring equipment, military equipment, and large computers). Once established in this market, Inmos planned to move into commodity products and more competitive markets.

In January 1979, Inmos opened the Harrison Park facility in Colorado Springs,

Colorado, in the United States. Wafer fabrication operations began within a few months. Inmos faced an uncertain future, however, with the Conservative government election victory in 1979. Under the Conservative government, the NEB—later renamed the British Technology Group (BTG)—started divesting its investments acquired under the previous government. At the same time, Inmos was seeking further funding. After an eight-month delay, the NEB invested an additional £25 million in August 1980. This brought the total of U.K. taxpayers* investment, in Inmos to approximately £100 million.

Attached to the loan was the condition that the new U.K. production facility should be situated in Newport, South Wales, an economically depressed area some distance from the Company's Bristol design and corporate headquarters facility.

By December 1980, Inmos' first product, a 16K NMOS SRAM, went on the market.

In February 1981, a second facility in Colorado Springs, Colorado, was opened in the

United States. By May 1982, Inmos had completed its family of high-performance

64K DRAMs.

From its inception, Inmos has been engaged in parallel architecture microprocessor development. This resulted in the parallel architecture of the transputer requiring a totally different programming solution, which led Inmos to develop OCCAM, a special language. This met with some resistance in the market because the concept was too advanced for its time. Design engineers were used to the sequential languages, such as

FORTRAN and Pascal.

As with most revolutionary products, the transputer took a long time to ramp up revenue. The transputer is now an established architecture in leading applications such as imaging, laser printers, and parallel processors.

ESIS Volume III © 1988 Dataquest Incorporated November

0001483

Inmos International pic

In 1984, the IMS 1423, a 16K CMOS SRAM, was introduced. Toward the end of the year, the IMS 1600, a 64K CMOS SRAM, was sampled. The DRAM range was also extended to include two new versions of the IMS 2600 64K DRAM.

The 1984 semiconductor boom confirmed a need for an assembly operation under

Inmos' direct control and near the Newport production site. In September 1984, the

Company broke ground for a 100,000-square-foot assembly facility at Coed Rhedyn,

Newport. This facility was to assemble a high percentage of the existing Newport production and to test all devices made there, thus freeing space in Newport for expansion of existing activities. By 1985, the facility was almost complete; however, it was mothballed because of the depressed state of the semiconductor industry. In 1986,

Inmos announced that it would reopen the Coed Rhedyn facility.

At the end of 1984, Inmos had 2,135 employees worldwide, with 1,014 in the

United Kingdom and 1,121 in the United States. The Company invested $32 million in capital expenditure in 1984, a large proportion of it in developing the Newport operation. The semiconductor recession resulted in a large amount of redundancies, and the size of the Company was reduced by one-half, both in the United States and the

United Kingdom. Working hours were cut also.

In September 1984, Thom-EMI acquired the U.K. government's 76.1 percent shareholding in Inmos for £95 million. On March 31, 1987, the total holding of

Thom-EMI in Inmos stood at 99.9 percent. Thom-EMI started restmcturing Inmos to bring it to profitability. In 1985 and 1986, when it licensed the technology to NMB semiconductors of Japan, Inmos pulled out of the DRAM market. Production at the

Colorado Springs facility ceased, leaving behind only research and development (R&D), pilot wafer fabrication, and marketing. Subsequently, in December 1987, the rest of the facility was closed. The plant's activities were transferred to the Newport site in the

United Kingdom for an annual savings of $20 million.

The divestments are indicative of Inmos' increasing reliance on its transputer products. In December 1987, the transputer accounted for more than 50 percent of sales; this will increase to between 70 and 80 percent by 1989. Thom-EMI is currently seeking a majority partner that can finance the future capital investments required for

Inmos to continue further development of its transputer, memory, and DSP lines.

PRODUCTS AND MARKETS SERVED

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

© 1988 Dataquest Incorporated November ESIS Volume III

0001483

Inmos International pic

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

OUTLOOK

Table 1 shows Dataquest's estimates of Inmos' European semiconductor revenue.

Table 2 shows Dataquest's estimates of Inmos' worldwide semiconductor revenue.

Despite an uncertain future at times, Inmos has come a long way since its inception. The Company's range of transputer products are complex and have taken longer to generate substantive revenue than originally planned. Dataquest believes that the parallel processing applications in imaging, graphics, laser writers, and workstations are just beginning to play a significant role in the marketplace, and the transputer is well placed to take advantage of them. With substantial design wins in Japan, the

United States, and Europe under its belt, the future outlook for the transputer range is very bright. Besides transputers, Inmos has its color look-up table designed in many graphics applications including the PS/2. Inmos' new range of innovative DSP chips is creating a stir in the marketplace, and we expect Inmos to be a significant participant in the function-specific DSP market.

ESIS Volume III © 1988 Dataquest Incorporated November

0001483

Inmos International pic

Table 1

Inmos International pic

Estimated European Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

1983 1984

Total Semiconductor

$9 $25

1995

$18

1995

$18

Total Integrated Circuit

Bipolar Digital

MOS

Linear

$9

0

9

0

$25

0

25

0

$18

0

18

0

$18

0

18

0

Total Discrete

Transistor

Diode

Thyristor

Other

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Optoelectronic

1997

$20

$20

0

20

0

0

0

0

0

0

Table 2

Inmos International pic

Estimated Worldwide Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

Total Semiconductor

X993

$58

1984

$146

1995

$85

1986

$80

Total Integrated Circuit

Bipolar Digital

MOS

Linear

$58

0

58

0

$146

0

146

0

$85

0

85

0

$80

0

80

0

Total Discrete

Transistor

Diode

Thyristor other

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Optoelectronic

Source: Dataquest

November 1988

1987

$91

$91

0

91

0

0

0

0

0

0

© 1988 Dataquest Incorporated November ESIS Volume III

0001483

Intel Corporation

3065 Bowers Avenue

Santa Clara, California 95052-8131

Telephone: (408) 765-8080

Fax: (408) 987-5686

Dun's Number: 04-789-7855

Date Founded: 1968

CORPORATE STRATEGIC DIRECTION

Founded in 1968, Intel Corporation originally flourished as a supplier of semiconductor memory for mainframe and minicomputer manufacturers. Today,

Intel and its subsidiaries are engaged primarily in the business of designing, developing, manufacturing, and marketing advanced microcomputer components and related products at various levels of integration.

Microcomputers based on Intel technology can be found in thotisands of appUcations ranging from personal computers and automobiles to robots and supercomputers.

As a leader in the semiconductor industry, Intel has helped revolutionize the computing industry with such inventions as the microprocessor and the erasable programmable read-only memory (EPROM) device. In addition to being a dominant player in the microprocessor and memory markets, Intel is an important participant in other semiconductor areas.

The company manufactures microprocessor peripheral components, embedded control products, software, microcomputer systems, and development tools. increased, with a net profit of $650.3 million being reported in fiscal 1990. This represents a 66.3 percent gain over 1989's net income of $391.0 million.

Most of Intel's products are sold or Ucensed through a network of 79 sales offices located in 21 nations throughout the world. Additionally, the company uses distributors and representatives to distribute its products in the United States and elsewhere. Typically, distributors handle a wide variety of products, including those competitive with Intel products, and fill orders for small quantities. Sales representatives generally do not offer competitive products, but may cany complementary items mantifactured by other companies. Representatives do not maintain a product inventory; instead, their customers place large quantity orders directly with Intel and refer smaller orders to distributors.

The North American region continued to account for the majority of Intel's 1990 revenue, and over the past five years that number has fluctuated between

54 percent and 61 percent of the company's total revenue. In 1990, Europe and Japan accoimted for

22 percent and 10 percent, respectively, of Intel's total revenue. The company employs 23,900 people worldwide.

In terms of profitability, Intel had an excellent year in fiscal 1990, as both net revenue and net income posted substantial gains over previous company records. Net revenue increased 25.4 percent to

$3.92 billion* in 1990, up from $3.13 billion recorded in 1989. Intel attributes the increase primarily to strong unit growth of its high-performance proprietary components and to systems based on these components. The associated revenue growth was moderated by lower average selling prices following a normal product maturity/pricing trend. For the fourth year in a row, the company's net income

*A11 dollar amounts are in U.S. dollars

In 1990, R&D expense totaled $516.7 million, an increase of 41.5 percent compared with 1989's result of $365.1 million. Intel's new submicron development facility in Santa Qara, CaUfomia, which began operation in 1990, contributed largely to this increase.

As a percentage of revenue, R&D expense increased to 13.2 percent in 1990 ft-om 11.7 percent and

11.1 percent in 1989 and 1988, respectively. According to Intel, these results were primarily due to continued investment in strategic programs. The company believes that high investment in R&D is necessary for the company to remain competitive and

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Intel Corporation

provide the flow of new products necessary to meet the continuing demands of the marketplace.

More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highhghts and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 5 at the end of this backgroimder present comprehensive financial information. applications. The Intel 386 and Intel 486 fanuhes include the 386DX microprocessor, the 386SX microprocessor, and the 486DX microprocessor. In

1990, the 20-MHz 386SL microprocessor was introduced. It is designed for portable systems and incorporates the 386 microprocessor core, cache, and main memory controllers, bus controller, and a power management unit During April 1991, Intel introduced its low-end 486SX microprocessor, a 20-MHz version of the 486DX chip without the 486DX's math coprocessor. The 486SX is targeted primarily at highend desktop machines but will also be aimed at the entry-level and medium-size LAN server and multiuser markets.

BUSINESS S E G M E N T STRATEGIC

DIRECTION

Semiconductors

According to Dataquest, Intel jumped from the position of eighth-largest worldwide semiconductor vendor in 1989 to fifth-largest in 1990, based on 1990 factory revenue of $3.17 billion. In the MOS digital market, Intel ranked second with a 9.8 percent market share based on 1990 factory revenue of $3.16 billion.

MOS microcomponents accounted for $2.73 billion, or 86.3 percent, of this amount. MOS memory devices accounted for $371 million, or 11.8 percent of MOS digital revenue, while MOS logic devices accounted for the final $60 miUion, or 1.9 percent of revenue.

Intel's i860 microprocessor, a 64-bit reducedinstruction-set computing (RISC) microprocessor, is designed for high-speed multiprocessing systems, technical workstations, and graphics subsystems. In mid-1991, Intel unveiled the i860 XP, an upgrade of the two-year-old i860 chip, which is twice as fast as its predecessor and has 2.5 miUion transistors, making it more than twice as large as the older chip. In addition, the i860 XP doubles the data cache of the i860 from 8MB to 16MB and quadruples the instruction cache from 4MB to 16MB.

Microprocessor Peripheral Components

Intel offers microprocessors in three main families: the 32-bit Intel 386 and Intel 486 family, which is the latest addition to the line of x86 architecture products; the i860 family of 64-bit central processing tmits

(CPUs); and the i960 family, which is used in embedded control applications and is described in that section.

A microprocessor peripheral component is a specialpurpose chip that works with a CPU in managing selected input/output or other system functions.

Peripheral devices, such as graphics coprocessors, control the visual screen display of graphic and text information, while mathematics coprocessors handle high-speed calculations. Other peripheral components control floppy disk drives, 'Mnchester disk drives, keyboards, and printers. Through the use of communications peripherals, computers can operate in networks and communicate locally and over long distances.

The 32-bit family of Intel 386 and Intel 486 microprocessors serves as the "brains" in PCs, as do

Intel's earlier 16-bit microprocessors, which include the 8086, 8088, and 80286 CPUs. Additionally, the higher performance of microprocessors in the Intel

386 and Intel 486 famihes has enabled the microprocessors to be used in minicomputers, parallel processing systems, engineering workstations, and artificial intelligence and telecommunications apphcations. The Intel 386 and Intel 486 microprocessors are compatible vidth the earlier 16-bit CPUs and are compatible with software used in office automation

Intel's microprocessor peripheral components are available for controlling all of these functions and are designed to be fully compatible with its microprocessors. In 1990, Intel announced the 82360SL peripheral unit, the 89C024FT modem chip set, the

8SC224 and 8SC060 programmable logic devices, and the Smart Cache for the Intel 386 microprocessor.

The 82360SL peripheral unit contains most of the input/output circuitry necessary for an industrystandard architecture desktop system. Like the 386SL microprocessor, the unit was designed for portable computers.

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011165

Intel Corporation

Digital Video Interactive (DVI) technology allows applications developers to access a full range of multimedia capabilities such as compressing video and audio into digital form, combining them with still images and graphics, and then storing the resultant application program on CD-ROM disks. The i750 video processor, a very large scale integration (VLSI) chip set that brings motion video, still images, graphics, and audio to desktop systems, was introduced in

1990. It consists of two separate components, the

82750PB pixel processor, which compresses and retrieves information, and the 82750DB display processor, which controls the display of information.

Memory Components

Memory components are used to store computer programs and data entered during system operation. Intel supplies a broad line of memory components, including EPROMs, flash memories, dynamic randomaccess memories (DRAMs), and static random-access memories (SRAMs).

Intel's product line consists of 32-bit microcontrollers, including the i960 CPUs, 16-bit microcontrollers, such as the 8096 and the 80C196, and 8-bit microcontrollers, such as the 8048 and the 8051.

The i960 family of processors offers features and performance in variotis configurations to meet varied customer needs. The i960 family includes the i960

CA microprocessor, the first microprocessor capable of executing two instructions in one tick of the microprocessor's clock. The i960 CA is well suited for high-performance embedded apphcations such as the printer controller in laser printers. During 1990,

Intel introduced the low-cost i960 SA and i960 SB processors, which both feature 32-bit internal performance and 16-bit external data btises. The i960 SB is equivalent to the i960 SA, with the SB containing a floating-point unit for high-performance math processing.

Software

According to Dataquest, Intel was the top-ranked supplier of EPROMs in 1990, based on estimated revenue of $234.6 million, finishing just ahead of

Advanced Micro Devices. Intel offers 128Kb, 256Kb, and 512Kb EPROMs, in addition to 1Mb, 2Mb, and

4Mb EPROMs. In 1988, the company introduced its flash memory devices to the marketplace. In 1990,

Intel expanded its offerings of flash memory devices with the introduction of a 2Mb device. This device is easier and faster to update than EPROMs are because it can be reprogrammed without removal from its applications. Intel also introduced a flash memory card, designed to serve as a rugged storage medium in small portable computer systems, as well as in factory floor, medical, and technical instrumentation applications. In addition, the company continues to sell DRAMs and SRAMs, all of which are produced for Intel by subcontractors.

Embedded Control Products

Intel offers software for microcomputer operating systems, high-level networking, and developmental and debug support for OEMs incorporating Intel microprocessors and microprocessor-based systems into their end-user products.

Intel markets its iRMX real-time operating system as well as the iRMK Real-Time Kernel, an operating system kemel for the Intel 386 microprocessor that is used in industrial control applications. Real-time operating systems are used in both embedded and reprogrammable applications where an ever-changing operating environment requires continual updating of system conditions. During 1990, Intel introduced a new version of its 32-bit iRMX-IH real-time operating system that permits users to run MS-DOS as a task while iRMX-m is running. The enhanced version, called IX)S/RMX, supports the use of Microsoft

Windows and allows MS-DOS applications to be converted to a 32-bit environment and gain access to

4GB of memory.

Embedded control products (microprocessors and microcontrollers) are designed to be embedded within an application and to be programmed to control the operation of that application. Embedded control products typically incorporate a CPU, random-access memory, program memory, and input/output circuitry on one chip. They are utilized in computer and communications systems, automobile control applications, robotics, electronic instrumentation, keyboards, and home video machines.

Microcomputer Systems

Microcomputer system and module offerings firom

Intel include microcomputer platforms, as weU as more than 150 single-board computer modules that can be used as the building blocks of microcomputer and real-time control systems. All are based on Intel

f»11165

©1991 Dataquest Incorporated October—^Reproduction Prohibited

Intel Corporation

components. In 1990, Intel introduced the iSBC

386SX Embeddable PC, a Multibus I board designed to be embedded within industrial, scientific, and medical applications, and the iSBC 486/133SE, a

Multibus n board that has a 33-MHz Intel 486 CPU and is designed for high-performance applications.

Two industry standard architecture (ISA)-compatible systems, the Microcomputer Model 402, which comes with a 25-MHz 486 CPU, and the Model

300LPSX-I6, which comes with a 16-MHz 386SX microprocessor, also began shipping during 1990.

Defense Advanced Research F*rojects Agency/Information Science &. Technology Office (DARPA/ISTO) to advance the state-of-the-art in scalable multicomputer systems. In September 1990, Intel demonstrated the third of four major Touchstone Program prototype systems. Called Delta System, this prototype is scalable to over 500 processors, has aggregate peak performance of over 30 billion floating-point operations per second, -and a new interconnect network based on a

Caltech-designed router chip. Late in 1991, Intel expects to demonstrate the final Touchstone program prototype, Sigma System, which will comprise more than 2,000 processors and produce peak performance of 150 billion floating-point operations per second.

Other system products provided by Intel include personal computer enhancement products and mainframe connectivity and networking products. Enhancement products for PCs are add-in cards and components that provide additional processing power, memory, and conmiunications capabilities. In 1990, Intel introduced the SatisFAXtion board, a PC fax board that allows users to fax files directly from their systems to facsimile machines. The company also announced the NetPort print server, which gives system users easy access to printers on Novell networks.

Intel also sells a line of parallel supercomputers. In early 1990, the company introduced the iPSC/860 supercomputer based on the i860 microprocessor technology. Intel's iPSC/2 is a parallel supercomputer based on the Intel 386 microprocessor.

Development Tools

Development tools are used by engineers to develop and debug hardware and software for microcomputerbased systems. Intel developed the first in-circuit emulator (ICE) in 1975. The ICE module can be substituted for the microprocessor or microcontroller diat is used in the customer's systems, providing an effective way to develop and debug the customer's designs. In 1990, Intel introduced several emulators for Intel architectures, including the ICE-486.

Further Information

The company's Touchstone Program is a comprehensive R&D project cosponsored by Intel and the

For further information on Intel's business segments, please contact Dataquest's Semiconductors service.

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011165

Intel Corporation

Table 1

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

Five-Year Revenue

Percent Change

1986

,265,011

1987

1,907,105

50.76

Capital Expenditure

Percent of Revenue

154,827

12.24

301,530

15.81

1988

2,874,769

50.74

477,460

16.61

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

228,250

18.04

18,200

69.51

173,165)

259,794

13.62

19,200

99.33

248,055

243.24

318,331

11.07

20,800

138.21

452,922

82.59

1990 Fiscal Year

Quarterly Revenue

Quarterly Profit

Q l

894,457

143,768

1989

3,126,833

8.77

422,102

13.50

365,104

11.68

21,700

144.09

391,021

(13.67)

1990

3,921,274

25.41

679,546

17.33

516,747

13.18

23,900

164.07

650,261

66.30

Q2

968,301

170,693

Q3

1,012,441

171,924

Q4

1,046,075

163,876

Source: Intel Coiporation

Amraal Reports and Foims 10-K

Dataqaest (October 1991)

Table 2

Revenue by Geographic Region (Percent)

Region

North America

Europe

Japan

ROW

1986

60.15

26.78

8.54

4.53

1987

61.19

23.48

8.94

6.39

1988

57.06

23.60

11.33

8.01

1989

56.75

22.09

10.90

10.26

1990

53.96

22.07

10.21

13.76

Source: Intel Corporation

Annual Reports and Forms 10-K

Dataquest (October 1991)

0011165

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Intel Corporation

1990 SALES OFFICE LOCATIONS

Intel Overseas Corporation (United States)

Intel Puerto Rico hic. (Puerto Rico)

Intel Semiconductor of Canada Ltd. (Canada)

Jupiter Technology Inc. (United States)

North America—^52

Europe—12

Japan—1

ROW—8

MANUFACTURING LOCATIONS

Europe

Intel Corporation Italia S.p.A. (Italy)

Intel Corporation Ltd. (United Kingdom)

Intel Corporation S.A.R.L. (France)

Intel Finland OY (Finland)

Intel Iberica S.A. (Spain)

Intel Semiconductor A.G. (Switzerland)

Intel Semiconductor B.V. (Netherlands)

Intel Semiconductor GmbH (Germany)

Intel Sweden A.B. (Sweden)

North America

Aloha, Oregon

High-volume commodity and logic, 386 microprocessors, logic SRAMs

Chandler, Arizona

Military microcontrollers, microprocessors

Fokom, California

HiUsboro, Oregon

Microcomputers, memory boards, systems

Las Piedras, Puerto Rico

Microcomputers, memory boards, systems

Rio Rancho, New Mexico

Component production

Santa Clara, California

Flash 512K, 1Mb and 4Mb EPROMs, arrays, bum-in equipment

Japan

Intel Japan K.K.

ROW

Intel Asia Electronics Inc. (India)

Intel AustraUa Pty. Ltd. (Australia)

Intel PRC Corporation (China)

Intel Semicondutores do Brazil LTDA (Brazil)

Intel Semiconductor Ltd. (Hong Kong)

Intel Singapore Technology Ltd. (Singapore)

Intel Technology Asia Ltd. (Korea)

Intel Technology Far East Ltd. (Taiwan)

Europe

Leixlip, Ireland

PC platforms for European market

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

ROW

Jerusalem, Israel

VLSI wafer production, 386 microprocessors

Manila, Philippines

VLSI component assembly and testing

Penang, Malaysia

VLSI component assembly and testing

SUBSIDIARIES

North America

Intel Electronics Ltd. (United States)

Intel International Inc. (United States)

Intel Investment Ltd. (United States)

1991

Dialogue and Computer Aided Technologies

(CAT)

Intel signed its first two distributors for the Soviet

Union, Dialogue and CAT, which will each market

Intel's board- and box-level products.

Digital Equipment Corporation (DEC)

Intel entered into an agreement with DEC under which Digital will introduce a new family of personal computers using Intel's 80386 and 80486 microprocessors. Intel's Computer System Division will manufacture the network PCs, which are designed to be connected together in an office environment

©1991 Dataquest Incorporated October—^Reproduction Prohibited

001U6S

Intel Corporation

NMB Semiconductor Inc.

The two companies entered into a new supply agreement whereby NMB will turn one of its plants into a flash memory foundry dedicated to

Intel. Under the agreement, NMB will manufacture flash EPROMs and cards for Intel, and will not have any rights to the products. This deal replaces a contract in which Intel and NMB ran into problems with a DRAM manufacturing agreement

That agreement, in contrast, was based on NMB's selling its own DRAMs to Intel for marketing under Intel's name.

Defense Advanced Research Projects Agency

(DARPA)

Intel Scientific Computers (ISC), an internal start-up company, signed a $7.6 million research agreement with DARPA to develop a prototype of a system that ultimately wUl contain as many as

2,000 processors that are equivalent to CRAY-1 power.

IBM Corporation

Intel signed an agreement with IBM to develop an

MCA board to utilize DVI for die IBM PS/2 family.

Pacific Bell

Pacific BeU signed an agreement with Intel's Network and Services Division to market network integration services and equipment in conjunction with its Data Communications Group.

Tartan Laboratories Inc.

Tartan Laboratories and Intel's Military Division signed an agreement by which the two companies will jointly market Tartan's Ada 960MC Compilation System for the Intel 80960MC processor.

Tartan's 960MC runs on either Sun or DEC VAX

workstations running V M S .

1990

1989

AT&T, Convergent Technologies, Ing. C. Olivetti

S.p.A., Prime Computer Incorporated

Intel annoimced a joint engineering effort with these four companies to create a multiprocessing version of the UNIX System V Release 4.0 operating system for the i860 processor.

1988

China Aviation Technology Import Export

Corporation

TTie two companies formed Intel China, a joint venture firm that has as its objective to take advantage of Intel's advanced microprocessor technology to raise the quaUty of computers in China.

Siemens AG

The two companies announced the formation of a joindy owned corporation, called BiiN, that will mani^acture and supply mission-critical information systems. Both Siemens and Intel will hold

50 percent stakes in the company. In late 1989, the two companies dissolved BiiN after determining it would take too long to achieve an acceptable return on investment.

IBM Corporation

Intel obtained exclusive marketiag rights to IBM's

Parallel Interface (PI) Bus Interface Unit The PI

Bus Interface Unit (PBIU) is currently fielded in the IBM's Common Avionics Modules. The

M82916, Intel's version of the PBIU, integrates on a single chip the hardware necessary to design modules and systems based on the FI Bus standard protocol for parallel backplane buses.

MERGERS AND ACQUISITIONS

1991

LANSystems Inc.

Intel acquired the Network Products Division

(NPD) of New York-based LANSystems as part of its ongoing thrust into the market for LAN software and hardware. NPD will become part of

Intel's Personal Computer Enhancement DivisioiL

AT&T Microelectronics

AT&T Microelectronics and Intel signed a fiveyear agreement to provide OEMs with an array of products supporting ISDN and LANs available from a common source.

1989

Jupiter Technology Inc.

Intel acquired Jupiter Technology, a supplier of data communications computers and operating systems. With its line of network-to-network and network-to-user device products, Jupiter Technology is expected to broaden Intel's offerings in the connectivity market.

0011165

©1991 Dataquest Incorporated October—^Reproduction Prohibited

Intel Corporation

Harold E. Hughes, Jr.

Vice president and chief financial officer

KEY OFFICERS

Gordon E. Moore

Chairman of the board

Andrew S. Grove

President and chief executive officer

Craig R. Barrett

Executive vice president

Frank C. Gill

Senior vice president and president, Systems

Group

David L. House

Senior vice president and general manager,

Architecture and Applications Group

Robert W. Reed

Senior vice president and general manager. Semiconductor Products Group

Leslie L. Vadasz

Senior vice president and director, Corporate Business Development

Michael Aymar

Vice president and general manager. Entry Level

Products Group

Kenneth B. Fine

Vice president and general manager. Multimedia and Supercomputing Components Group

Paul S. Otellini

Vice president and general manager. Microprocessor Products Group

Ronald J. Whittier

^^ce president and general manager. Software

Technology Group

Albert Y. C. Yu

Vice president and general manager. Microprocessor Products Group

PRINCIPAL INVESTORS

Gordon E. Moore—6.6 percent

Equitable Life Assurance Society—^5.6 percent

Capital Group Inc.—^5.0 percent

FOUNDERS

Dr. Robert N. Noyce

Dr. Gordon E. Moore

Dr. Andrew S. Grove

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011165

Intel Corporation

Table 3

Balance Sheet

Fiscal Year Ending in December

(Thousands of U.S. Dollars)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Long-Term Investments

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Capital Stock

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

1986

74,528

298,378

298,696

197,931

154,124

1,023,657

779,321

209,195

67,893

2,080,066

374,282

286,600

143,957

804,839

770,236

504,991

1,275,227

1987*

629,845

439,022

50,287

235,527

36,144

1,390,825

891,196

203,760

13,003

2,498,784

884,841

298,062

39,456

1,222,359

736,941

539,484

1,276,425

1988

929,712

506,477

41,388

365,936

126,345

1,969,858

1,122,459

421,900

35,519

3,549,736

933,948

479,273

56,461

1,469,682

1,087,648

992,406

2,080,054

1989

1,063,734

568,709

26,005

347,077

157,348

2,162,873

1,284,050

507,669

39,391

3,993,983

921,226

412,480

111,474

1,445,180

1,165,376

1,383,427

2,548,803

1990

1,619,648

709,658

165,239

415,433

209,203

3,119,181

1,657,568

561,477

38,082

5,376,308

1,313,751

344,605

126,446

1,784,802

1,572,755

2,018,751

3,591,506

accounting policy Intel implemented daring fiscal 1988.

2,080,066 2,498,784 3,549,736 3,993,983 5,376,308

Sonrce: Intel Coiporatian

Annual Reports and Fbnns 10-K

Dataquest (October 1991)

001116S

©1991 Dataquest Incorporated October—Reproduction Prohibited

Intel Corporation

Table 4

Consolidated Income Statement

Fiscal Year Ending in December

(Thousands of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

U.S. Revenue

Non-U.S. Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

1986

1,265,011

760,895

504,116

860,680

228,250

311,340

154,827

(174,634)

(13.80)

-

(173,165)

175,538

(0.99)

-

7.26

1987

1,907,105

1,166,943

740,162

1,043,504

259,794

357,871

301,530

287,886

15.10

14.00

248,055

180,358

1.38

-

7.08

1988

2,874,769

1,640,216

1,234,553

1,505,925

318,331

456,200

477,460

629,062

21.88

28.00

452,922

180,437

2.51

-

11.53

1989

3,126,833

1,774,585

1,352,248

1,720,979

365,104

483,436

422,102

583,021

18.65

33.00

391,021

188,778

2.07

-

13.50

1990

3,921,274

2,115,957

1,805,317

1,930,288

516,747

615,904

679,546

986,261

25.15

34.00

650,261

202,911

3.20

-

17.70

Source: Intel Corporation

Annual Reports and Fonns 10-K

Dataquest (October 1991)

Table 5

Key Financial Ratios

Fiscal Year Ending in December

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue ($K)/Employee

Capital Spending % of Assets

1986

2.73

163.11

29.35

63.11

(8.32)

(13.58)

(13.69)

18.04

12.24

18,200

69.51

7.44

1987

1.57

195.76

69.32

95.76

9.93

19.43

13.01

13.62

15.81

19.200

99.33

12.07

1988

2.11

170.66

44.90

70.66

12.76

21.77

15.76

1989

2.35

156.70

36.14

56.70

9.79

15.34

12.51

1990

2.37

149.70

36.58

49.70

12.09

18.11

16.58

11.07

16.61

20,800

138.21

13.45

11.68

13.50

21,700

144.09

10.57

13.18

17.33

23,900

164.07

12.64

Source: Intel Coiporation

Annual Repoits and Fonns 10-K

Dataquest (October 1991)

10

©1991 Dataquest Incorporated October—^Reproduction Prohibited

(X)1116S

ITT Corporation

BACKGROUND AND OVERVIEW

The ITT Corporation (ITT) was founded by Sosthenes Behn in 1920 as the

International Telephone and Telegraph Company. It was based in the Caribbean at that time.

In 1924, ITT took over the Spanish telephone network and thus started its penetration into European markets. A policy of intense Europeanization and consolidation followed, particularly with ITT's 1925 purchase of the European marketing and research facilities of Western Electric Company. By the beginning of World War II,

ITT had established a presence in every West European country except Finland. ITT established operations in Finland in 1954.

World War n halted the Company's expansion plans. In 1945, ITT began rebuilding its networks abroad and developing new products. One new product was a telephone switching system, Pentaconta, that was adopted throughout the world.

In 1960, Harold S. Geneen became president of ITT. Under his guidance, the

Company's structure, management, and image changed to such an extent that by the end of the 1960s, ITT was a different organization. It had diversified into numerous product lines, including industrial equipment, services, natural resources, insurance, automotive products, telecommunications, and consumer products. The Company's planning, financial reporting, and control systems were modified accordingly.

In a 1971 consent decree following the Company's acquisition of the Hartford Fire

Insurance Company in the United States, ITT agreed to a reduction in certain assets and

10-year restrictions on fvirther acquisitions.

Operations

ITT is a diversified company made up of nine business segments, automotive products, electronic components, fluid teciinology, defense technology, insurance finance, communication and information services, hotels and community development, pulp, and timber. Half of its 1987 sales of $17.4 billion came from insurance and financial services. The rest includes hotels, auto parts, defense electronics, and paper products.

In recent years, the Company has sold off all or part of 112 companies and the number of employees has decreased from 348,000 in 1980 to 120,000 in 1987. These changes are part of the asset redevelopment program that began in 1979. The intent of this program was to divest nonstrategic businesses, focus more sharply on selected. industries, streamline operations, and reduce debt.

The proceeds from the redevelopment program have provided working capital needs and expansion of the remaining businesses. This has made possible the reduction of the

1987 year-end ratio of debt to total capitalization of 27 percent, the lowest in more than

25 years. Additionally, proceeds are being used for a $10 million share common stock repurchase program implemented by the Company during 1987.

ESIS Volume III © 1988 Dataquest Incorporated November 1

0001402

ITT Corporation

In 1987, ITT's non-U.S. sales accounted for approximately 44 percent of the total

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

Table 1

ITT Corporation

Revenue by Geographic Segment

(Millions of U.S. Dollars)

ITT and Consolidated Subsidiaries

United States

Western Europe

Canada and Other

Subtotal

Insurance and Finance

United States

Western Europe

Canada and Other

Subtotal

Total

2M5.

$

4,393

1,825

345

$

6,563

1986 1987

$

4,609

2,572

415

$

7,596 •

$

4,788

3,342

421

$

8,551

$

6,797

1,058

245

$

8,100

$14,663

$

8,648

683

510

$

9,841

$17,437

$

9,846

841

287

$10,974

$19,525

S o u r c e : ITT C o r p o r a t i o n

1987 Annual R e p o r t

November 1988

Semicomiuctor Facilities

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

© 1988 Dataquest Incorporated November

ESIS Volume III

0 0 0 1 4 0 2

ITT Corporation

Table 2

ITT Corporation

SemioMxluctor Facilities

Lawrence. Massachusetts. U.S.A.

Size;

Number of employees:

Year established:

Products/technologies:

Wafer outs:

Wafer size: gh^jl^Qn. Cgni^gctAcut;,

TJ,^,k,

Size:

Number of employees:

Year established:

Products/technologies:

8,000 square meters

520

1962

Discretes; wafer fabrication, assembly, and testing

8,000/month

3 inches

4 , 0 0 0 sqtiare meters

200

1983

Integrated circuits; wafer fabrication, assembly, and testing (In 1985, the plant was converted to serve the merchant market—class 10 operation with NMOS and CMOS (p-well) processes.)

10,000/month

4 inches

Wafer outs:

Wafer size:

Colmar. France

Size:

Number of employees:

Year established:

Products/technologies:

Wafer outs:

Wafer size:

Freiburg. West Germany

Size:

Number of employees:

Year established:

Products/technologies:

Wafer outs:

Wafer size:

4,000 square meters

350

1966

MOS and bipolar ICs, discretes; assembly

No wafer fabrication

Not applicable

40,000 square meters

1,400

1952, extension completed in 1983

MOS and bipolar ICs and discretes; assembly and testing

25,000/month

3, 4, and 5 inches

(Continued)

ESIS Volume III

0001402

© 1988 Dataquest Incorporated November

ITT Corporation

Table 2 (Continued) rrr Corporation

Semiconductor Facilities

Nuremberg, West Germany

S i z e :

Ntunber of employees:

Year established:

Products/technologies:

Wafer outs:

Wafer size:

Latina. Italy

Size:

Number of employees:

Year established:

Products/technologies;

Wafer outs:

Wafer size:

4,000 square meters

300

1961

Discretes; assembly and testing

10,000/month

4 and 5 inches

3,000 square meters

150

1981

Discretes; assembly and testing

No wafer fabrication

Not applicable

Source: Dataquest

November 1988

Eur(^)ean Semiconductor Activities

ITT's European semiconductor revenue increased from $215 million in 1986 to

$243 million in 1987. A more detailed breakdown is given in Table 3. Because ITT's worldwide semiconductor operations are headquartered in Europe, Dataquest has, for this profile, included the Company's worldwide semiconductor revenue, which is shown in

Table 4.

ITT's Semiconductors Group employs 2,800 people, 150 of whom are involved in marketing. Only 500 employees work at its two U.S. plants, and the rest are based in

Europe at Latina (Italy), Colmar (France), Nuremberg (West Germany), and Freiburg

(West Germany). The group's policy is to concentrate design and manufacturing of telecommunications devices in the United States and products for the consumer industry in Europe. Since all the plants now use the same 1.5-micron technolo©^, they are geared to operate as second sources for each other if needed.

Geographically, about 70 percent of ITT's semiconductor sales are in Europe; approximately 15 percent are in the United States; and the remaining 15 percent are in

Japan and the rest of the world.

© 1988 Dataquest Incorporated November

ESIS Volume III

0001402

ITT Corporation

Table 3 rrr Corporation

Estimated European Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

1983 1994

1995

1996

$126 $171 $185

$215

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

$ 61

0

33

28

$ 87

0

53

34

$ 95

0

57

38

$115

0

69

46

1997

$243

$132

0

99

33

Total Discrete

Transistor

Diode

Thyristor

Other

$ 65

15

50

0

0

$ 84

19

65

0

0

$ 90

22

68

0

0

$100

36

64

0

0

$111

39

72

0

0

Total Optoelectronic

Source: Dataquest

November 1988

Table 4

ITT Corporation

Estimated Worldwide SemiconductcH- Revenue by Product Line

(Millions of U.S. Dollars)

1993 1994

1985 1986 1987

Total Semiconductor

$185 $250 $270 $312

$357

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

$ 90

0

56

34

$ 95

26

69

0

0

$125

0

80

45

$125

36

89

0

0

$140

0

90

50

$130

38

92

0

0

$168

0

107

61

$144

53

91

0

0

$197

0

146

51

$160

57

103

0

0

Total Optoelectronic

Source: Dataquest

November 1988

ESIS Volume III

0001402

© 1988 Dataquest Incorporated November

ITT Corporation

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

The Company is hoping that the sale of its telecommunications activities to the new

Alcatel consortium will bring in more business, since the new consortium has only a small activity in semiconductors. ITT retains a 37 percent interest in the joint-venture company called Alcatel NV.

m Semiconductor Organization

The reporting structure of ITT Semiconductors is shown in Figure 1.

D01402-1

Figure 1

ITT Semiconductors

Organization Chart

Components Europe and Semiconductors Worldwide Group

(Headquarters in Freiburg, West Germany)

ITT Semiconductors Worldwide

(Headquarters in Freiburg, West Germany)

1

U.S. Division

(Lawrence, Massachusetts)

(Shelton, Conneticut)

Continent

1 al Europe

(Frieburg, We

Freiberg —

(West Germany)

Colmar

_ Nuremberg

(West Germany)

(France)

Latina

(Italy)

Source: Dataquest

N o v e m b e r 1988

© 1988 Dataquest Incorporated November ESIS Volume III

0001402

ITT Corporation

Highlights of recently published information on ITT's semiconductor-related activities include the following:

• In February 1988, ITT Cannon, United Kingdom, invested more than £1 million in production line and quality control facilities for telecommunications interconnect products. The Company has been working with British Telecom and suppliers on new product specifications and standards.

• In January 1988, ITT Semiconductors released a pair of ICs (the SAF 1091 and

1092) that can be used in the design of programmable speedometers and mileage indicators in cars. The system can also be adapted for use with a digital dashboard display.

• In October 1987, Intermetall GmbH released a new controller called FP (fast processor). It is a standard macrocell that is a microcontroller core for use with any of the Company's digital signal processors.

• In October 1987, ITT sold its remaining 24 percent stake in STC PLC to

Northern Telecom for $730 million. This means that ITT's presence in the world telecommunications market is now reduced to its investment in Alcatel

NV, a joint venture with the French CGE and two smaller investors.

• In October 1987, it was announced that Intermetall GmbH will henceforth design and lay out all new circuits so that they can be fabricated in CMOS technology with structures as small as 0.8 micron—part of the Company's strategy to keep ahead of its competitors in consumer product ICs.

• In June 1987, ITT joined other U.S. multinationals and pulled out of South

Africa. It sold its subsidiary, Alfred Teves Engineering SA Ltd., and announced the future sale of its minority holding in South African telephone directory and cable businesses.

OUTLOOK

With the consumer market as its main focus, ITT Semiconductors is pursuing a carefully targeted strategy that is paying off, despite the volatility of the semiconductor market as a whole.

By specializing in signal processors and digital television devices, the Company has set itself at the leading edge of VLSI technology. Thanks to its narrow product range, its priority to automization of production lines, and its refusal to shift assembly to Asia

(thus maintaining close interface between its designers, manufacturing engineers, and customers), ITT Semiconductors has positioned itself strongly in the market.

ESIS Volume III © 1988 Dataquest Incorporated November

0001402

ITT Corporation

(Page intentionally left blank)

4 © 1988 Dataquest Incorporated November ESIS Volume III

0001402

LSI Logic Corporation

1551 McCarthy Boulevard

Milpitas, California 95035

Telephone: (408) 433-8000

Fax: (408) 434-6457

Dun's Number: 01-244-4253

Date Founded: 1981

CORPORATE STRATEGIC DIRECTION

Founded in 1981, LSI Logic Corporation designs, develops, manufactures, and markets integrated circuit (IC) products and provides computer-aided design (CAD) and technology services and tools based on application-specific integrated circuit

(ASIC) technologies. The company's products and services are marketed primarily to manufacturers in the electronic data processing (EDP), military/ aerospace, telecommunications, and consumer electronics industries. The company's key product lines are ASICs, which include gate arrays and cell-based circuits; 32-bit MIPS and SPARC reducedinstruction-set computing (RISC) microprocessors and peripherals; and application-specific standard products (ASSPs) consisting of chip sets and graphics products used in IBM-compatible personal computers. In addition, LSI Logic offers a growing line of video compression and digital signal processing

(DSP) products. AU product areas are supported by the company's Concurrent Modular Design Environment (C-MDE) software tools, submicron CMOS and

BiCMOS processing technologies, and high-pin-count packaging and test capabilities.

R&D expense increased over $7 million to

$60.2 miUion in 1990. The company attributes the increase mainly to the development of advanced products. LSI Logic is committed to technological leadership in the ASIC, RISC, and chip set markets and anticipates investing approximately 9 to 11 percent of its revenue in R&D in future years.

LSI Logic operates in three major regions: North

America, Europe, and the Far East, with the majority of its sales occurring in North America. The company markets its products and services through its worldwide direct sales and marketing organization and through independent sales representatives and distributors. LSI Logic employed approximately 4,400 people worldwide at the end of 1990.

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highlights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 5 at the end of this backgrounder present comprehensive financial information.

LSI Logic's revenue growth in 1990 outpaced that of the semiconductor industry. The company's revenue increased nearly 20 percent to $655.5 million*, while worldwide semiconductor industry revenue increased

2 percent, according to DataquesL However, a net loss of $33 million was also reported for fiscal 1990, primarily as a result of a $44 million charge to cost of revenue during the fourth quarter of 1990. The primary elements of this charge were the writedown of certain manufacturing and production equipment at the company's United Kingdom wafer fab facility plus the write-off of goodwill in coimection with LSI

Logic's 1988 acquisition of Video Seven Inc., a graphics board company.

*A11 dollar amounts are in U.S. dollars.

BUSINESS SEGMENT STRATEGIC

DIRECTION

ASICs

A metal programmable array, also known as a gate array, is a matrix of uncommitted logic functions contained on a single chip of silicoiL The gate array remains uncommitted through most of its complex processing cycle and is programmed or customized only in the last steps of the wafer fabrication process.

This enables the manufacturer to produce large quantities of uncommitted gate arrays, called base arrays, and benefit from the economies of volume chip production.

0011168

©1991 Dataquest Incorporated October—Reproduction Prohibited

LSI Logic Corporation

For the past several years, LSI Logic has consistently ranked among the top gate array suppliers in the world. According to Dataquest, LSI Logic ranked third in the total gate array market in 1990 with a

12.0 percent market share, based on estimated factory revenue of $464 million. According to Dataquest, the company ranked first in the MOS gate array market with factory revenue of $461 million and an

18.0 percent market share and sixth in the BiCMOS gate array market with factory revenue of $3 million in 1990.

During 1991, LSI Logic introduced the LCA200K

Compacted Array Turbo gate array family that boasts usable gate counts of up to 200,000. The company is introducing new libraries, proprietary tools, packaging options, and unique power management alternatives to support these products. The company also infinoduced the LEA200K Embedded Array series.

Embedded arrays are masterslices containing customer-defined memory functions such as randomaccess memories (RAMs), read-only memories

(ROMs), computer-aided manufacturing (CAMs), and first-in/first-outs (FIFOs) in addition to uncommitted gate logic. Both the LCA200K and LEA200K products are fabricated using advanced 0.7-micron drawn channel-length high-performance CMOS

(HCMOS) technology.

The company's cell-based technology allows the customer to combine standard cells, memories such as static RAM, metal programmable ROM, static multiport RAM, and other dedicated very large scale integration (VLSI) building blocks called megacells onto a single chip. LSI Logic's cell-based products allow for up to 2(X),000 equivalent gates of integration on a single chip, which through combinations of these various structures can provide the user with optimal solutions to digital design problems.

In October 1990, LSI Logic's SPARC Division introduced its SparKIT, a chip set that enables systems designers to clone the SPARCstation 1 workstation from Sun Microsystems. The company also offers ASIC cores for SPARC embedded applications.

The MIPS Division at LSI Logic recently introduced a five-chip family for the MIPS architecture. Called the MipSET, this chip set can reduce the MIPS

LR3000-based workstation design time and eliminate

LR3000 noise and timing problems. The MipSET, which is available in 20- and 25-MHz speeds, can replace 40 or more standard logic circuits. In late

1990, the company introduced an embedded version of its 32-bit MIPS RISC microprocessor, called the

LR33(X)0 Self-Embedding processor. This processor was designed for use in highly integrated, performance-oriented applications such as laser printers, X ^ ^ d o w terminals, disk controllers, protocol converters, and military/avionic products. LSI

Logic also introduced the Ngine module, a highperformance subsystem that offers system designers a proven central processing unit (CPU) implementation and simplified interface, thus minimizing system development time and risk.

The company also offers 16-bit microprocessor products that implement the MIL-STD-1750A instruction set and a family of high-speed digital signal and image processing devices that perform a wide variety of common DSP operations. These components are designed to operate in standalone or multiprocessing configurations.

Software

Microprocessors

During 1990, the company further expanded emphasis on its microprocessor product families. LSI Logic's principal microprocessor product focus is on the two 32-bit RISC microprocessor architectures that have met with broad market acceptance. These are the MIPS and SPARC architectures, which were originally developed by MIPS Computer Systems Inc. and Sun Microsystems Inc., respectively. Both of these architectures are designed to facilitate an "open system" design.

LSI Logic has made a number of new product annoimcements in the microprocessor field recently.

LSI Logic also offers a proprietary software for the

CAD market. The company's Modular Design

Environment (MDE) software is a computer-aided engineering (CAE) design system consisting of a core design software module and a number of other software programs that improve the circtiit designer's productivity. During 1990, the company debuted an advanced software methodology for ASIC design known as C-MDE. C-MDE software is a graphic and icon-based suite of design tools that are interactive and provide the designer with the capability of performing design activities based on a single unified database. LSI Logic expects to make C-MDE availa-

Ue during ifae second half of 1991. In addition, tibe company has coupled key elements of its software programs with software products offered by selected

CAE companies, thereby increasing the potential customer base available to LSI Logic.

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011168

LSI Logic Corporation

In mid-1990, LSI Logic demonstrated a prerelease version of a VHDL-based CAD software suite that is intended to expand the company's ASIC technology capabilities by further automation of the IC design process. Called "Silicon 1076," this software is intended to allow a chip designer to move from product concept to the layout of the final chip design and mask generation piu^uant to a more automated and integrated procedure than is currently available from most other semiconductor design software products.

Headland Technology

During 1989, LSI Logic's subsidiaries, previously known as G2 Incorporated and Video Seven Inc., merged into one subsidiary company, which changed its name to Headland Technology Inc. Headland's products, which are based on the product lines of the two predecessor companies, are sold to manufacturers and in certain instances resellers, of IBM and IBMcompatible personal computers. products can be tailored to a particular customer's specifications.

Headland Technology also develops and markets high-performance video graphics technology boardbased products under its \^deo Seven label principally for business and professional PC users.

According to Dataquest, Headland ranked fourth in the worldwide low-end PC graphics board market in

1990 with an estimated 7.3 percent market share, based on estimated revenue of $45.6 million. Headland's graphic and video interface products enable

IBM and IBM-compatible PC users to generate highresolution monochrome or color text and graphics on the monitor screea While supporting industry standards, the Yideo Seven lines of products offer customers the opportunity to take advantage of new levels of performance for existing IBM and IBMcompatible PC hardware and software.

Further Information

Headland's IC products consist primarily of highly integrated graphics chips and logic chip sets. Through use of LSI Logic's MDE software, tb&se Headland

For further information about the company's business segments, please contact either Dataquest's Semiconductor industry service or Graphics and Displays industry service.

0011168

©1991 Dataquest Incorporated October—Reproduction Prohibited

LSI Logic Corporation

Table 1

Five-Year Corporate Highlights

(Thousands of U.S. Dollars)

Five-Year Revenue

Percent Change

Capital Expenditure

Percent of Revenue

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

1990 Fiscal Year

Quarterly Revenue

Quarterly Profit

1986

.94,335

63,398

32.62

21.558

11.09

1,821

106.72

3,855

Q i

139.072

2,096

1987

262,131

34.89

138,993

53.02

28,919

11.03

2,322

112.89

11,340

194.16

1988

378,908

44.55

100,961

26.65

36,964

9.76

3,329

113.82

24,702

117.83

1989

546,870

44.33

114,494

20.94

52,457

9.59

3,700

147.80

(24,892)

(200.77)

1990

655,491

19.86

61,998

9.46

60,196

9.18

4,400

148.98

(32,995)

(32.55)

Q2

159,698

6,203

Q3 Q4

172,471 184,250

4,189 (45,483)

Souce: LSI Logic

Animal Repons and Fomis 10-K

Dataquest (October 1991)

Table 2

Revenue by Geographic Region (Percent)

Region

North America

Europe

Japan

1986

85.00

13.00

2.00

1987

81.00

14.00

5.00

1988 1989 1990

77.00 75.00 72.00

12.00 13.00 14.00

11.00 12.00 14.00

Somce: LSI Logic

Ammal Repoits

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011168

LSI Logic Corporation

1990 SALES OFMCE LOCATIONS

North America—^31

Europe—9

Japan—2

ROW—3

MANUFACTURING LOCATIONS

North America

Edmonton, Alberta, Canada

Fremont, California

Milpitas, California

Sydney, Nova Scotia, Canada

Europe

Braunschweig, Germany

Japan

Tsukuba

SUBSIDIARIES

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

1990

Synopsys Inc.

Synopsys granted a license to LSI Logic that will allow LSI to install Synopsys' software in its design centers and incorporate Synopsys' logic synthesis tools into its Silicon 1076 VHDL-based design environment

Sun Microsystems Inc.

LSI Logic signed a licensing agreement with Sun permitting LSI to sell worldwide the ASIC devices developed for the original SPARCstation I workstation.

NHK

In an agreement with NHK, Japan's state broadcasting authority, LSI Logic's Japanese subsidiary,

LSI Logic K.K., will license NHK's Muse decoder system. LSI Logic K.K. intends to use die system to enter the Japanese HDTV market in collaboration with a Japanese television manufacturer and further develop technology for use in U.S. and

European markets when they are established.

Opus Systems

The two companies announced an agreement whereby Opus will design a SPARC-compatible workstation and port the Sun Microsystems operating system to it, using the LSI SparKIT chip set

LSI will then license the design to would-be

SPARC doners.

Vantage Analysis Systems Inc.

LSI Logic's proprietary Silicon 1076 product will incorporate VHDL simulation tools from Vantage.

Under the terms of the agreement. Vantage's comprehensive simulation tools will be available in all of LSI's design centers worldwide.

North America

Headland Technology Inc. (United States)

LSI Logic Corporation of Canada, Inc. (Canada)

Europe

LSI Logic (Europe) pic (United Kingdom)

Japan

LSI Logic K.K. (Japan)

Nihon Semiconductor Inc. (Japan)

0011168

7959

Synopsys Inc.

LSI and Synopsys entered into a cooperative agreement for LSI to develop and market certified logic synthesis libraries for the Synopsys Design

Compiler. As part of the agreement, LSI will purchase Synopsys synthesis tools for internal use.

©1991 Dataquest Incorporated October—Reproduction Prohibited

LSI Logic Corporation

7955

Crosscheck Technology Corporation

Under terms of a technology license and development agreement, LSI will license patented test structures from Crosscheck that will embed into the base-silicon cell structure of high-density gate arrays. Crosscheck will also supply a test generation package running on Sun workstations that will be integrated into LSI's gate array layout software.

KEY O F F I C E R S

Wilfred J. Corrigan

Chairman and chief executive officer

George D. Wells

President and chief operating officer

Imaging Technology Inc. (ITI)

The two companies signed a marketing and technology agreement under which m will design a new generation of imaging products using LSI's

L64200 series of real-time image-processing chips.

Cyril F. Hannon

Executive vice president. Worldwide Operations

Robert Blair

Senior vice president, ASIC Marketing

Sun Microsystems Inc.

Sun gave LSI worldwide licensing rights to manufacture, market, modify, and enhance MPUs, related components, software, and systems using the SPARC architecture.

Brian L. Halla

Senior vice president. Microprocessor and DSP

Products

James S. Koford

Senior vice president, ASIC Engineering, and chief technical officer

M E R G E R S AND ACQUISITIONS

PRINCIPAL INVESTORS

1989

G-2 Incorporated and Video Seven Inc.

LSI merged the activities of G-2 and \^deo Seven to form Headland Technology, which wiU produce logic chip sets and graphics for PCs.

Wilfred J. Corrigan—11.0 percent

FOUNDERS

1988

Video Seven Inc.

LSI acquired \^deo Seven, a designer, manufacturer, and marketer of graphics boards.

Wilfred J. Conigan

Robert Walker

William O'Meara

Mitchell D. Bohn

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011168

LSI Logic Corporation

Table 3

Balance Sheet

Fiscal Year Ending in December

(Thousands of U.S. DoUars)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Minority Interest

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Eqtiity

1986

197,451

44,502

5,525

26,636

6,432

280,546

159,058

11,800

451,404

32,150

106,908

11,680

49,677

200,415

0

196,380

18,310

36,299

250,989

1987

195,583

59,031

71,715

51,195

5,006

382,530

290,479

26,389

699,398

72,172

187,909

14,862

116,225

391,168

0

401

260,190

47,639

308,230

1988

187,975

101,640

15,643

112,225

7,245

424,728

334,510

28,261

787,499

130,338

191,857

21,730

111,970

455,895

0

405

258,858

72,341

331,604

1989

120,035

105,839

32,867

114,918

18,193

391,852

349,348

23,961

765,161

150,808

204,443

17,826

94,735

467,812

0

411

249,489

47,449

297,349

1990

140,270

114,978

18,417

124,831

40,385

438,881

328,707

16,418

784,006

192,797

189,795

27,092

98,583

508,267

0

421

260,864

14,454

275,739

451,404 699,398 787,499 765,161

784,006

Souice: LSI Logic Coipoiation

Annual Reports and Fbnns 10-K

Dataquest (October 1991)

0011168

©1991 Dataquest Incorporated October—^Reproduction Prohibited

LSI Logic Corporation

Table 4

Consolidated Income Statement

Fiscal Year Ending in December

(Thousands of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

U.S. Revenue

Non-U.S. Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

1986

194,335

172,372

21,963

129,150

21,558

40,200

63,398

8,535

4.39

48.00

3,855

40,191

0.10

-

6.24

1987

262,131

223,859

38,272

168,403

28,919

55,726

138,993

17,294

6.60

41.00

11,340

40,674

0.28

-

7.58

1988

378,908

332,644

46,264

235,671

36,964

80,145

100,961

31,202

8.23

42.00

24,702

41,133

1989

546,870

499,308

47,562

424,544

52,457

99,885

114,494

(34,863)

(6.38)

(14.00)

(24,892)

41,305

1990

655,491

579,564

75,927

487,759

60,196

117,318

61,998

(18,521)

(2.83)

(89.00)

(32,995)

42,063

0.60

-

8.06

(0.60)

-

7.20

(0.78)

-

6.56

Source: LSI Logic Coiporation

Animal Rq)orts and Ftems 10-K

Dataquest (October 1991)

Table 5

Key Financial Ratios

Fiscal Year Ending in December

Key Financial Ratios

Liquidity

Current (Hmes)

Total Assets/Equity (%)

Current LiabiUties/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue ($K)/Employee

Capital Spending % of Assets

1986

8.73

179.85

12.81

79.85

0.85

1.54

1.98

11.09

32.62

1,821

106,72

14.04

1987

5.30

226.91

23.41

126.91

1.62

3.68

4.33

11.03

53.02

2,322

112.89

19.87

1988

3.26

237.48

39.31

137.48

3.14

7.45

6.52

1989

2.60

257.33

50.72

157.33

(3.25)

(8.37)

(4.55)

1990

2.28

284.33

69.92

184.33

(4.21)

(11.97)

(5.03)

9.76

26.65

3,329

113.82

12.82

9.59

20.94

3,700

147.80

14.96

9.18

9.46

4,400

148.98

7.91

Source: LSI Logic Coiparation

Annual Reports and Forms 10-K

Dataquest (October 1991)

©1991 Dataquest Incorporated October—^Reproduction Prohibited

(X)11168

Marconi Electronic Devices Limited

BACKGROUND AND OVERVIEW

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

Systems. The following is a list of MEDL operational sites worldwide:

• Doddington Road, Lincoln, United Kingdom

VLSI CMOS IC manufacturing

RF, microwave, and millimeter-wave active devices, components, and subsystems manufacturing

Headquarters of Marconi Electronic Devices Limited

• Carholme Road, Lincoln, United Kingdom

Power semiconductor devices, stacks, and assembly manufacturing

• East Lane, Wembley, United Kingdom

LSI computer-aided design (CAD) center

• Hargreaves Road, Swindon, United Kingdom

High-volume, thick-film microelectronics circuits for the telecommunications and industrial markets

• The Railway Triangle, Portsmouth, United Kingdom

Custom-designed, thick-film hybrid and microelectronic circuits for defense and specialized industrial markets

• Radford Crescent, Billericay, United Kingdom

- Fourier transforms, microwave and millimeter-wave materials, passive components, and waveguide elements

• Marconi Electronic Devices, Inc., Hauppauge, New York

Sales and marketing, IC design, power, microsystem, and microwave organizations

ESIS Volume III © 1988 Dataquest Incorporated December

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Marconi Electronic Devices Limited

• Marconi Electronic Devices, S.A., Asnieres, France

Sales and marketing, IC design, power, microsystem, and microwave organizations

Marconi Electronic Devices also has a U.S. facility called CTI in Farmingdale, New

York, working with hi-rel custom-designed, thick-film microelectronics for defense applications.

The Company's Europe and United States-based organization is divided into four manufacturing divisions:

• Integrated circuits

• Microwave devices

• Power semiconductors

• Microsystems

Table 1 shows MEDL's turnover by business division.

Table 1

Marconi Electronic Devices Limited

Turnover by Business Division

(Percent of Revenue)

1987-1988 1986-1987

Microsystems

CTI

IC

Microwave

Power

28%

26"^

18%

17%

11%

26%

24%

19%

16%

15%

Note: Some of the IC, power, and microwave s a l e s were captive to CTI.

Source: MEDL

IC Division

The IC Division has now been centralized. MEDL has changed the organization to a single business group covering both IC product lines: silicon on sapphire (SOS) for space and defense, and CMOS for industrial and telecommunications markets and applications.

Formerly Telecoms/Industrial and Space/Defense, the new single operational group manufactures products in VLSI CMOS for the communications industry and provides SOS and VLSI CMOS for space and defense applications.

© 1988 Dataquest Incorporated December ESIS Volume III

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Marconi Electronic Devices Limited

Microwave Division

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

Power Semiconductor Division

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

Microsystems Division

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

MEDL REVENUE

Dataquest estimates that MEDL revenue for 1987 was $47 million worldwide, of which $37 million was from Europe. The Company is predominantly a domestic supplier, but has recently made efforts to penetrate niche markets in the United States. It also markets some power products in Asia. Tables 2 and 3 show Dataquest's estimates for

MEDL European and worldwide revenue, respectively.

Table 2

Marconi Electronic Devices Limited

Estimated European Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

.al Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

1983

$21

$11

0

11

0

$10

2

3

3

2

1984

$26

$15

0

15

0

$11

2

3

3

3

1985

$30

$19

0

19

0

$11

2

3

3

3

1986

$32

$17

0

17

0

$15

3

4

8

0

1987

$37

$21

0

21

0

$16

4

4

8

0

Source:

Dataquest

December 1988

ESIS Volume III

0001916

© 1988 Dataquest Incorporated December

Marconi Electronic Devices Limited

Table 3

Marconi Electronic Devices Limited

Estimated Worldwide Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

:al Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

1983

$25

$12

0

12

0

$13

3

4

3

3

19?4

$31

$16

0

16

0

$15

3

4

4

4

19?5

$35

$20

0

20

0

$15

3

4

4

4

1996

$43

$21

0

21

0

$22

4

5

9

4

1987

$47

$27

0

27

0

$20

5

5

10

0

Source:

Dataguest

December 1988

PRODUCTS AND MARKETS SERVED

In 1987, MEDL's activities appeared to be evenly spread among its IC, Power

Semiconductor, Microwave, and Microsystems Divisions. The Company also manufactures some power transistors, microwave discretes, and hybrid components.

Much of the consumption is internal by companies within the GEC organization, particularly for telecommunications and military applications. The following is a list of

MEDL's main product lines:

• Standard products manufactured in CMOS

Telephone dialers

Telephone exchange products

Industrial PWM generator

Databuse products—1553

Speech scramblers

4

© 1988 Dataquest Incorporated December

ESIS Volume III

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Marconi Electronic Devices Limited

• Standard Products in SOS for radiation-hard applications in space

64K SRAM

Databuse 1553

- Viper/1750/2901 microprocessors

Digital speech synthesizer (DSP) chips

MEDL has won a contract from the United States Air Force for products to be incorporated into the F16 and F18 aircraft. The Company is intent on extending its business base in the United States, building on its niche-oriented product and its stable business base in the United Kingdom.

Semicustom CMOS Products

MEDL's semicustom CMOS products are as follows:

• 3-micron, double-level metal gate arrays: 1,000 to 3,800 gates

• 2-micron, double-level metal gate arrays: 3,900 to 10,000 gates

• 3-micron, analog/digital gate arrays with analog cells covering op-amps to

D/A and A/D converters on double-poly, double-metal 10 volt CMOS

• Standard cell on 3-micron, double-poly, double-metal 10-volt CMOS—

MACROMOS, with digital cell library-BITMOS and analog cell library-

ANAMOS (The analog cell library includes converter and full-filter capability.)

Semicustom SOS Products

MEDL's semicustom SOS products are as follows:

• 3-micron, double-level metal gate arrays: 2,400 to 4,000 gates

• Standard cell 3-micron MACROMOS with digital library and analog functions

• 1.5-micron SOS to be developed next

ESIS Volume III © 1988 Dataquest Incorporated December

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Marconi Electronic Devices Limited

Discrete Products

Discrete devices include the following:

• Large-area, high-power, high-voltage products for electric traction and power transmission projects

• Fast-switching thyristors and transistors with fast-recovery diodes for chopper and inverter duty

• High-current devices for mining, electrochemical, motor drive, environmental control, and welding applications

• Asymmetrical thyristors and fast epitaxial diodes for specialized high-frequency circuits

New Products

The Company's new products are as follows:

• Video speed CMOS convertors

• Standard filter chips

MEDL's Microwave Division designs, develops, and manufactures an extensive range of Schottky barrier, backward, PIN, varactor, and Gunn diodes; transistors; microwave integrated circuit (MIC) components; and subsystems. These products operate at frequencies that range from 10 MHz to 100 GHz in ECM, radar, and communications systems.

Maximizing the in-house capability in solid-state device and thick-film technology, the MIC facility uses advanced CAD and automatic test equipment (ATE) to produce a wide range of microwave and millimeter-wave components. These include the following:

Single-ended balanced/double-balanced image rejection and harmonic mixers

(500 MHz to 100 GHz)

Small-signal bipolar amplifiers (50 MHz to 18 GHz)

GaAs FET amplifiers (50 MHz to 18 GHz)

High-stability Gunn oscillators (4 GHz to 100 GHz)

Active/passive limiters

Alternators, modulators, digital/analog phase shifters

Single multithrow switches (1 GHz to 40 GHz)

© 1988 Dataquest Incorporated December ESIS Volume III

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Marconi Electronic Devices Limited

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

OUTLOOK

During 1987 and 1988, MEDL suffered an operating loss of £1.8 million. This compares with an operating loss of £3.9 million in 1986 and 1987.

MEDL's total employment fell from 2,585 in 1986 and 1987 to 2,475 in 1987 and

1988.

However, the future holds some good prospects for MEDL in the telecommunications area and the military markets. MEDL has a strong market share in the U.K. telephone dialer business. It is estimated that MEDL supplies approximately 80 percent of dialers currently built into telecommunications main exchange systems (e.g., System-X), with the gate array content estimated at approximately 10 to 15 percent of the total business.

MEDL is also supplying mixed analog/digital systems on a chip, using two process technologies: CMOS and CMOS SOS. (SOS is MEDL's radiation-tolerant analog.)

MEDL has rights to the 1750 microprocessor and the Viper microprocessor, which is built to the U.K. Defence Ministry specification for use in safety-critical systems. The

Viper-1 applications include aircraft and medical electronics, process control, signaling, robotics, and F>ower-station control.

The strength of MEDL's discrete portfolio traditionally has helped its operation to better withstand the cyclic perturbations of the IC marketplace.

Dataquest believes that MEDL's future growth will depend on the Company's ability to expand its defense and telecommunications contract business into new areas.

ESIS Volume III © 1988 Dataquest Incorporated December

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Marconi Electronic Devices Limited

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© 1988 Dataquest Incorporated December ESIS Volume III

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Matra-Harris Semiconducteurs

BACKGROUND AND OVERVIEW

Matra-Harris Semiconducteurs (MHS) was formed in 1979 as a joint-venture company between Matra of France and Harris Corporation of the United States. The venture was supported by the then French government, which was keen to develop high technology in France. The Company built a 12,000-square-meter factory near Nantes,

France, an area designated for industrial development. This allowed MHS to gain government financial assistance for the scheme.

Prior to this formal link, Matra and Harris had made agreements for CMOS technology transfer. Initial wafer production at the Nantes plant began in December

1980. Production capability has now reached 80,000 five-inch wafers per year, and MHS ships more than 12 million circuits annually.

In 1981, MHS signed an agreement with Intel Corporation covering the manufacture of NMOS circuits in Nantes and the establishment of a joint-design facility called

Cimetal for telecom chips and video controllers. Following this agreement with Intel,

MHS was able to manufacture Intel's 8086, 8088, 8051, and 8052, as well as Harris'

80C86/88. MHS was also entitled to design CMOS versions of the 8051 MCU family, which is now one of MHS' key areas.

MHS increasingly has become involved in joint ventures. In 1985, MHS and SGS

Microelectronics (now SGS Thomson Microelectronics) signed an agreement to develop a fully automated assembly and test line for integrated circuits. In a deal with Cypress

Semiconductor of the Silicon Valley, MHS received licensing rights to manufacture

Cypress fast 16K and 64K CMOS SRAMs and to use Cypress fast 1.2 and 0.8 micron processes. In April 1988, MHS extended its links with Cypress in a deal that will provide

$4.75 million for MHS' research into bipolar technology.

MHS developed an advanced submicronic process (Super-CMOS) with France's national telecom research labs (CNET), to combine speed and low power consumption.

Most new devices will be designed using this process, which is now ramping-up at MHS.

MHS has also signed a second-source agreement with NEC covering the mutual manufacture and design rights to NEC's 78312 16-bit microcontroller family.

From 1982 to 1986, MHS and Harris had common marketing operations in Europe. In

1986, they separated their sales forces and distributor networks to permit both companies to have direct and independent access to European customers. In 1987, MHS totally separated its marketing from Harris, and now has its own worldwide sales and distribution network, with direct subsidiaries in Santa Clara, London, Milan, Munich,

Hong Kong, and Stockholm. As a result, MHS and Harris no longer sell each other's products.

Matra currently controls more than 80 percent of MHS.

ESIS Volume III © 1988 Dataquest Incorporated October

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Matra-Harris Semiconducteurs

PRODUCTS AND MARKETS SERVED

MHS offers four main product areas, all in CMOS. Most circuits are available in commercial, industrial, and military temperature ranges.

MHS is also a manufacturer of hi-rel devices for military, aeronautics, and space applications; its factory has been qualified AQAP-1, and a variety of products have been approved by the corresponding agencies.

Below is a listing of MHS products.

Static RAMs

• Fast 16K and 64K devices: HM65728/767/768 (down to 15ns) and

HM65764/787-790, and a fast 8Kx9:HM65779

• Very low power 16K and 64K memories (6 transistors per cell): HM65162/262 and HM65641 (8Kx8, 55ns, luA)

• 64K SRAM, such as HM65687:35ns, luA

Microcontrollers

The 8051 family in CMOS, for which MHS is one of the leaders:

• ROM capacity from 4K to 16Kbytes: 80C51, 83C154

• Low-voltage (2.7V), fuse-protected "secret ROM," high-speed (18 MHz) versions and a specific single-chip keyboard controller: 80C752

CMOS ASIC

Five gate-array families, with gate counts from 250 to 55,000 gates, ultrafast

CMOS arrays, proprietary software tools running on VAX or turnkey systems such as Daisy, Hewlett Packard, Mentor, and Valid

Two families of composite arrays mixing optimized blocks (RAM, ROM, and others) with regular gate arrays

Specific smart software for system analysis and logical synthesis

Digital and/or analog custom design capabilities using standard software from

Genesil, GDT, and Silicon Compilers Systems Inc.

© 1988 Dataquest Incorporated October ESIS Volume III

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Matra-Harris Semiconducteurs

Dedicated Telecom Products

A family of combo devices (HC3054/57) compatible with a market standard

(NS)

Specific chips for modem applications, the 29C42 error correction circuit for

V42 modems, the HC55421 21 interface, etc.

OUTLOOK

MHS is conducting a major development effort to introduce a semiconductor family dedicated to ISDN PABX, terminals and adapters. These products, to be made available in 1989, are targeted for next-generation equipment.

MHS' strategy is to develop its position as a specialist in CMOS system integration—a "toolbox" methodology that uses all basic functions (e.g., microcontrollers, memories, DSP, etc.) with the best-suited design tools and the

Super-CMOS process to offer semiconductor solutions for specific applications.

ESIS Volume III © 1988 Dataquest Incorporated October

0001589

Matsushita Electric Industrial Co. Ltd.

1006 Kadoma, Kadoma City

Osaka 571, Japan

Telephone: (06) 908-1121

Fax: (06) 906-1762

Dun's Number: 69-053-6552

Date Founded: 1918

CORPORATE STRATEGIC DIRECTION

Matsushita Electric Industrial Co. Ltd. was founded as a family business in 1918 by Konosuke Matsushita to produce and market an electric adapter plug for consumer products. Today, Matsushita is a worldwide electric and electronics manufacturer with products that range from consumer electronics equipment, home appliances, and housing-related products through sophisticated industrial and communications equipment, including electronic components. of AV information networks employing sateUite signals. To meet emerging markets, such as integrated services digital network (ISDN)-related products and systems and intraorganizational information systems, the company is currentiy constructing the Tokyo

Information and Communications Development

Center.

Construction Electronics

Matsushita is currently divided into four major business segments. These segments are discussed below:

Audiovisual (AV) Products and Home

Appliances

The audiovisual products and home appliances segment is Matsushita's core business. Matsushita strengthened its position as a digital video industry leader by introducing its composite digital 1/2-iach tape VCR system (D3) for broadcast use. This system win be used as the official system for the 1992

Barcelona Olympic Games.

Matsushita is a major manufacturer of virtually all of the key equipment needed in homes, offices, and other buildings, including air-conditioning equipment, gas water-heating equipment, kitchen-related products, lighting fixtures and elevators, as well as appliances and communications equipment used in the home. Drawing on its capabilities as a manufacturer of a comprehensive range of products, Matsushita is using this approach to develop a totally integrated package concept and proposing it to the constmction industiy. To foster this concept, the company established tiie Construction Electronics Business Group.

Components and Industrial Gk)ods

Fiulher advances in intelligent products are expected in home appliances, ' ^ t h Matsushita's success of appliances employing fuzzy logic and neuro-fiizzy logic, the company is worldng to develop nextgeneration technologies. It is pursuing basic R&D into artificial intelligence and home-use robots.

Matsushita supplies a vast array of electronic components including semiconductors. The company is also one of Japan's leading suppliers of factory automation equipment It plans to continue developing a wellbalanced semiconductor business, stressing not only memory devices but also bipolar ICs, microprocessors, logic ICs and charge-coupled devices.

Information and Communications Equipment

In systems and networks, Matsushita has made advances in urban cable TV (CATV) systems, as well as in airport traffic control systems and subway information management systems that use optical fiber

LANs. The company is also increasing installations

Within the four major segments, Matsushita has six major product categories: video equipment, communications and industrial equipment, electronic components, home appliances, audio equipment, and batteries and kitchen-related products.

0012543

©1992 Dataquest Incorporated January—Reproduction Prohibited

Matsushita Electric Industrial Co. Ltd.

Matsushita's products are sold in more than 160 coimtries under the brand names National, Panasonic,

Technics, and Quasar and under other trade names including JVC.

The company reported consolidated sales of

$46.7 biUion* for the fiscal year ended March 31,

1991. Net income for the year increased over

13 percent, to $1.8 billion, versus $1.6 billion in fiscal 1990. International sales accounted for 45 percent of revenue in fiscal 1991. ''Mthin the major product categories, video equipment sales increased

9 percent; audio equipment sales rose 8 percent; home apphances sales increased 13 percent; communications and industrial equipment had a sales growth of 14 percent; electronic components' sales grew

9 percent; and batteries and kitchen-related products had sales gains of 13 percent (Note; Percentage growth figures apply to U.S. dollar-based growth.)

In December 1990, Matsushita acquired MCA Inc. for approximately $6.1 billion. MCA Inc. is a leading

U.S. entertainment company, which includes Universal Pictures Production. It engages primarily in the film, music, and publishing business. MCA's strength in the production of film and music software will widen Matsushita's business scope in the audiovisual field.

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highlights and revenue by region. Liformation on revenue by distribution channel is not available. Tables 3 through 7 at the end of this backgrounder provide comprehensive financial information.

Communications and Industrial Equipment

The second-largest revenue-producing category for the company is commimications and industrial equipment This category accoimted for 24 percent of fiscal

1991 revenue. Total sales increased 14 percent over the previous period to $11.0 billion and include

Matsushita's targeted growth areas of information/ commtmication and factory automation. Products include facsimile and copier equipment PCs and workstations, printers, telephones and private branch exchange systems, industrial robots, electronic parts mounting equipment welding machines, air conditioners, and compressors.

Computers

Matsushita has expanded its desktop and laptop PC lines, resuming exports to Eiux>pe and North America, which were ctirtailed in 1987. The company is manufacturing 8-, 16-, and 32-bit IBM-compatible laptops in Japan, imder the Panasonic label, for sale in Europe. In the U.S. market the company is selling

16- and 32-bit models made by Tandy Corporation on an OEM basis. According to Dataquest Matsushita had less than 1 percent of the worldwide market share for desktop and laptop PCs during 1990.

Facsimiles

During 1989, Matsushita merged its Panafax Corporation into the larger Office Automation Group of

Panasonic Communications & Systems Company.

The company intends to expand its presence across the entire spectrum of facsimile product markets through the merger of the two groups. According to

Dataquest, Panasonic facsimile sales in the North

American market during 1990 were more than 95,000 units, placing Panasonic/Matsushita among the top five vendors in the market with a 6.8 percent market share.

BUSINESS SEGMENT STRATEGIC

DIRECTION

In addition to sales by its Panasonic subsidiary, Matsushita manufactures facsimile eqiiipment sold by

Pimey Bowes Inc. and several models sold by Fujitsu,

Tandy, and Telautograph.

Mdeo Ekiuipment

The video equipment category remains Matsushita's largest revenue producer, accounting for 26 percent of fiscal 1991 revenue. Sales totaled $12,144 million for this period. This category includes VCRs, camcorders and related equipment; color, projection, and liquid crystal display televisions; videodisc players; and satellite broadcast receivers.

*AI1 dollar amoimts are in U.S. dollars.

In April 1990, Matsushita's Quasar subsidiary announced a facsimile model for sale in the U.S. market, manufactured by Matsushita in Japan.

Copiers

Selling copiers under the Panasonic label, Matsushita continued to gain market share during 1990. Panasonic copiers compete in segments 1 through 4 of the six Dataquest copier segments. Based on plain paper

©1992 Dataquest Incorporated January—Reproduction Prohibited

0012543

Matsushita Electric Industrial Co. Ltd. copier placements, Dataquest ranked Panasonic thirteenth in 1990, with 30.7 thousand units. In the

Westem Etmjpean copier market, Panasonic's 1990 sales rose to a total of 24.9 thousand units, up from

23.1 for 1989.

In addition to copier sales under the Panasonic label,

Matsushita manufactures several models sold under the Lanier label in the United States and tmder the

Adler-Royal label in Europe.

Sales for the period were $6,370 million, up

13 percent from $5,614 million for the previous period.

Products in fiie home appliances category include refrigerators, room air conditioneTs, laundry equipment, vacuum cleaners, electric irons, microwave ovens, electric fans, electric blankets, and cooking appliances. Apphances using fiizzy or neuro-fuzzy logic and air conditioners with heating and cooling capabiliti^ sold especially well.

Printers

Matsushita also manufactures and markets its printers under the Panasonic label. Its product line focus is primarily on the serial printer market According to

Dataquest, Panasonic ranked fourth among page printer vendors in North America during 1990, with

75.S thousand units and a market share of 3.6 percent

In the serial printer market, the company had unit shipments of 1.2 million with a market share of

20.8 percent

Audio Equipment

Matsushita's audio equipment category accounted for

9 percent of the oornpany's revenue, with sales of

$4,234 million for ±c period ended March 31, 1991.

Although audio equipment in Japan was generally slow during this fiscal year, compact discs (CDs), radio/cassette recorders, and portable headphone cassette players continued as sales leaders in this segment

Electronic Components

The electronic components categoty accounted for

13 percent of Matsushita's fiscal 1991 revenue, with sales of $5,961 nuUion. In the general components field, sales gains domestically as well as overseas were led by surface-mounted components and microwave parts used in audiovisual and mobile conmnmications equipment, as well as parts for office automation equipment

Semiconductors

Matsushita's 1990 worldwide semiconductor ranking went from ninth in worldwide semiconductor sales to tenth, based on revenue of $1,942 million. Its semiconductor sales include MOS digital ICs, analog devices, discrete devices, optoelectronics, and bipolar digital ICs. The total revenue and worldwide market share breakdown is as follows: MOS digital,

$819 miUion with a 2.5 percent market share; MOS memory, $284 million with a 2.2 percent market share; MOS microcomponents, $250 mUlion with a

2.5 percent market share; MOS logic, $285 miUion with a 3.1 percent market share; analog devices,

$410 million with a 3.9 percent market share; discrete devices, $374 million with a 4.5 percent market share; and optoelectronics, $325 million with a

12.1 percent market share.

Other products under the audio equipment category are radios, tape recorders, stereo hi-fi and related equipment, car audio products, and electronic musical instruments.

Batteries and Kitchen-Related Products

The batteries and kitchen-related products category accounted for 5 percent of Matsushita's revenue,

$2,474 million for the fiscal year 1991. Batteries include compact batteries such as nickel-cadmium batteries. These batteries are used in video camcorders, portable phones, notebook-size personal computers, and other portable electronic products. lidiium batteries are also produced and used in cameras and for of&ce automation equipment memory backups.

Others

The balance of Matsushita's business includes sales of bicycles, cameras and flash units, prerecorded t^pes and discs, water purifiers, and imported materials and products such as nonferrous metals, lumber, paper, medical equipment, and cabin cruisers. This category accounted for 10 percent of the company's total revenue for fiscal 1991, with total sales of

$4,551 million.

Home Appliances

The home appliances category accounted for 14 percent of total revenue during the 1991 fiscal year.

Further Information

For further information on the company's business segments, please contact the appropriate Dataquest industry service.

0012543

©1992 Dataquest Incorporated January—Reproduction Prohibited

Matsushita Electric Industrial Co. Ltd.

Table 1

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

Four-Year Revenue

Percent Change

1988* 1989 1990 1991

36,710.8

NA

42,918.1

16.91

41,998.1

-2.14

46,733.9

11.28

Capital Expenditure

Percent of Revenue

1,679,8

4.58

2,537.5

5.91

2,482.0

5.91

3,377.9

7.23

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

2,022.7

5.51

134,186

273.58

1,192.7

NA

2,488.1

5.80

193,088

222.27

1,664.4

39.56

2,418.5

5.76

198,299

211.79

1,648.1

-0.98

2,718.6

5.82

210,848

221.65

1,833.4

11.25

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

1991 Fiscal Year Ql Q2 Q3 Q4

Quarterly Revenue 11,162.8 11,831.9 12,635.8 11,103.5

Quarterly Profit 413.02 486.13 596.03 338.36

NA = Not applicable Source: Matsushita Electric Industrial Co. Ltd.

*In 1987, Matsushita changed its fiscal year-end from November to March 31. Anmial Reports

Fiscal 1987 represents only four months from November 1986 to March 31, 1987. Dataquest (January 1992)

Because of these changes, no infonnation is included for 1987.

Table 2

Revenue by Geographic Region (Percent)

Region

Japan

International

1988*

59

41

1989

58

42

1990

56

44

1991

55

45

*In 1987, Matsushita changed its fiscal year-end from November to March 31. Source: Matsushita Electric Industrial Co. Ltd.

Fiscal 1987 represents o i ^ four mondis from November 1986 to March 31, 1987. Annual Reports

Because of these changes, no information is included for 1987. Dataquest (January 1992)

©1992 Dataquest Incorporated January—Reproduction Prohibited 0012543

Matsushita Electric Industrial Co. Ltd.

1991 SALES OFFICE LOCATIONS

North America—9

Europe—15

Asia/Pacific—142

Japan—132

ROW—12

MANUFACTURING LOCATIONS

North America

America Kotobuki Electronics Industries

(United States)

VCRs

American Matsushita Electronics Corporation

(United States)

Color TV picture tubes

Kyushu Matsushita Electric Corporation of America

(United States)

Deflection yokes

Matsushita Communication Industrial Corporation of

America (United States)

Car telephones, pagers, point-of-sale electronic cash register systems

Matsushita Compressor Corporation of America

(United States)

Air conditioning con^ressors

Matsushita Computer Company (United States)

Personal computers, workstations

Matsushita Electronic Components Corporation of

America (United States)

Electrolytic capacitors, car audio speakers, filters, switchers

Matsushita Industrial Canada (Canada)

Color TVs, speaker boxes, TV cabinets, AV racks

Matsushita Industrial de Baja Califomia S A. de C.V.

(United States)

TV chassis, color TVs

Matsushita Refrigeration Co. of America

(United States)

Refrigerators

Matsushita Semiconductor Corporation of America

(United States)

Semiconductors

Matsushita-Ultra Tech. Battery Corp. (United States)

Batteries

Panasonic Technologies (United States)

R&D

Europe

Kyushu Matsushita Electric (United Kingdom)

Electronic typewriters, printers

Matsushita Business Machine (Germany)

Plain paper copiers

Matsushita Communication Deutschland (Germany)

Car radios/stereos

Matsushita Communication Industrial (United

Kingdom)

Car telephones

Matsushita Electric (United Kingdom)

Color TVs, microwave ovens

Matsushita Electric Motor (Germany)

Motors

Matsushita Electronic Components (Germany)

Electronic parts, materials

Matsushita Electronic Components (United Kingdom)

Transformers, LC filters

Matsushita Electronic Magnetron Corp. (United

Kingdom)

Magnetrons for microwave ovens

Matsushita Graphic Communication Systems Ltd.

(United Kingdom)

Fax machines

Matsushita "V^deo Manufacturing (Germany)

VCR mechanisms

MB 'Video (Germany)

VCRs, CD players

Panasonic Espana (Spain)

Electric equipment

Panasonic France S.A. (France)

Consumer electronics

AsialPacific

A.P. National (Thailand)

Home electrical appliances

Asahi Kogyo (Japan)

Tape recorders

Beijing-Matsushita Color CRT (China)

Color CRTs

International Fan Manufacturing (Hong Kong)

Electric fans

Katano Matsushita (Japan)

Audio equipment

Kibi Matsushita (Japan)

Video equipment

Kyushu Matsushita Electric (Japan)

Data processing, business machines, magnetic heads

Matsue Matsushita Denki (Japan)

Capacitors

Matsusaka Seimitsu (Japan)

Assembly of motors

Matsushita Air-Conditioning Corporation (Malaysia)

Air conditioners

0012543

©1992 Dataquest Incorporated January—Reproduction I*rohibited

Matsushita Electric Industrial Co. Ltd.

Matsushita Communication Industrial (Japan)

Data processing, commimication, control, video equipment

Matsushita Commimication Industrial Corp. of the

Philippines (Philippines)

FDDs, ECM

Matsushita Compressor & Motor (Malaysia)

Compressors, fan motors

Matsushita Denshi (Singapore)

IC production, large-scale integration (LSI) design

Matsushita Electric (Australia)

TVs, audio equipment

Matsushita Electric (Malaysia)

Home electrical appliances

Matsushita Electric CTaiwan)

Electrical appliances

Matsushita Electric Instimte of Technology (Taiwan)

R&D

Matsushita Electric Works (Japan)

Electrical housing equipment

Matsushita Electronic Components (Japan)

Electronic equipment parts

Matsushita Electronic Components (Malaysia)

Electronic parts

Matsushita Electronic Components (Singapore)

Electronic parts

Matsushita Electronic Motor (Malaysia)

Electronic motors

Matsushita Electronic Motor (Singapore)

Precision motors, applied equipment

Matsushita Electronics (Japan)

Semiconductors, electron tubes, lighting equipment

Matsushita Electronics (Singapore)

Audio equipment

Matsushita Graphic Commimication Systems (Japan)

Facsimiles, graphics equipment

Matsushita Graphic Communications Systems

(Singapore)

Fax machines

Matsushita Industrial (Malaysia)

Air conditioners, compressors

Matsushita Industrial Equipment (Japan)

Industrial equipment

Matsushita-Kotobuki Electronics (Japan)

Video equipment, TVs, tape recorders

Matsushita Precision Industrial (Malaysia)

Flyback transformers, coils

Matsushita Refrigeration (Japan)

Refrigerators, air conditioners

Matsushita Refrigeration Industries (Malaysia)

Refrigerator/freezers

Matsushita Refrigeration Industries (Singapore)

Compressors

Matsushita Refrigeration Industries (Thailand)

Refrigerator/freezers

Matsushita Research Institute (Japan)

Electronics research

ROW

Matsushita Seiko (Japan)

Electric fans, ventilators, air conditioners

Matsushita Seiko Hong Kong International

Manufacturing Co. Ltd. (Hong Kong)

Air conditioners

Matsushita Technical Center (Singapore)

Production equipment

Matsushita Television (Malaysia)

Color TVs

Miyazaki Matsushita Denki (Japan)

Ceramics, magnetic materials, resistant materials

National Micromotor (Japan)

Microprecision motors

National Thai (Thailand)

Home electrical appliances

PFU Ltd. (Japan)

Minicomputers

Precision Electronics (Philippines)

Home electrical appliances

P.T. Matsushita Gobel Battery Industry (Indonesia)

Batteries

P.T. National Gobel (Indonesia)

Home electrical appliances

Takefu Matsushita Electric (Japan)

Micromotors

•N^ctor Company of Japan (Japan)

Video/audio equipment, TVs

Wakayama Precision (Japan)

Refrigerators, air conditioners

Matsushita Electric (East Africa)

Radios, radio cassette recorders, dry batteries

Matsushita Electrica de Guatemala (Guatemala)

Audio equipment

Matsushita Electric de El Salvador (El Salvador)

Audio equipment

Matsushita Industrial de Baja California (Mexico)

Color TV chassis

National Centroamericana

Dry batteries, audio equipment

National Componentes Electronicos do Brazil (Brazil)

Electronic parts

National do Brazil (Brazil)

Matsushita group products

National Electric Cote d'lvoire (Ivory Coast)

TVs, radio cassette recorders

National Panasonic Fueguina

Color TVs, radio cassette recorders

National Peruana (Peru)

Home electrical appliances

Panasonic de Mexico (Mexico)

Audio equipment, electronic parts

Panasonic Industrial de Venezuela C.A. (Venezuela)

Consumer electronic products

©1992 Dataquest Incorporated January—Reproduction Prohibited

0012543

Matsushita Electric Industrial Co. Ltd.

Springer National Componentes (Brazil)

Assembly of micromotors, CRT sockets, PC boards

Springer National da Amazonia (Brazil)

Color TVs, audio equipment

ALLIANCES, J O I N T VENTURES, AND

LICENSING A G R E E M E N T S

1991

SUBSIDIARIES

Digital Tape Licensing

Matsushita will share its digital compact cassette tape technology, which was jointly developed with

Philips, with third parties. Tbe aim is to make the digital tape format, which competes against digital audio tape, a standard in the industry.

North America

Matsushita Electric Corporation of America

(United States)

Solboume Computer (United States)

Europe

Matsushita Electric (U.K.) Ltd. (United Kingdom)

Matsushita Electronic Magnetron Corp. (United

Kingdom)

Matsushita Graphic Communication Systems U.K.

Ltd. (United Kingdom)

Panasoiuc Espana S.A. (Spain)

Panasonic France S.A. (France)

Tandy Corporation

Tandy Corporation and Matstishita have signed a joint venture to manufacture laptop and notebook computers. Both companies will be equal partners and share in the technology of the new company called PTCC Inc.

Texas Instruments Inc. (TI)

TI and Matsushita signed a cross-Ucensing agreement This five-year agreement replaced the previous agreement fliat expired in 1990. TI will continue to receive royalty payments from Matsushita based on worldwide sales of chips by the two

Japanese firms.

Asia/Pacific

Kyushu Matsushita Electric Co. Ltd. (Japan)

Matsushita Battery Industrial Co. Ltd. (Japan)

Matsushita Communications Industrial Co. Ltd.

(Japan)

Matsushita Electric (Taiwan) Co. Ltd. (Taiwan)

Matsushita Electronic Components Co. Ltd. (Japan)

Matsushita Electronics Corporation (Japan)

Matsushita Electronics (S) Pte. Ltd. (Singapore)

Matsushita Graphic Communications Systems Inc.

(Japan)

Matsushita Housing Products Co. Ltd. (Japan)

Matsushita Industrial Equipment Co. Ltd. (Japan)

Matsushita Industrial Corporation Sdn. Bhd.

(Malaysia)

Matsushita Kotobuki Electronics Industries Ltd.

(Japan)

Matsushita Refrigeration Company (Japan)

Matsushita Refrigeration Industries (S) Pte. Ltd.

(Singapore)

Matstishita Seiko Co. Ltd. (Japan)

\^ctor Company of Japan Ltd. (Japan)

Energy Conversion Devices Co. (ECD)

ECD and Matsushita have signed a patent Ucensing agreement for ECD's patented phase transformation optical disk system, "^th this agreement

Matsushita wiU be able to sell optical disks worldwide.

Siemens Nixdorf Information Systems (SNI)

SNI and Matsushita have signed an agreement to develop PC peripherals. The development will include an expansion tinit for 16-bit and 32-bit notebook-size PCs. The unit will contain extra memory and space for an additional battery unit

Matsushita will produce the expansion unit The company wiU market it in Europe and will also supply the device to SNI on an OEM basis.

Sun Microsystems Inc.

Sun Microsystems Inc. has signed an agreement with Matsushita, Fujitsu, and Toshiba whereby Sun will exchange information wifii the other firms on image-processing techniques for multimedia workstations.

0012543

©1992 Dataquest Incorporated January—Reproduction Prohibited

Matsushita Electric Industrial Co. Ltd.

1990

The Santa Cruz Operation

The Santa Cruz Operation and Matsushita have signed an agreement to codevelop a Japanese version of a UNIX operating system. Matsushita will manufacture the new product on an OEM basis, while The Santa Cruz Operation will be responsible for marketing efforts through a new branch office to be established in Japan.

SNI

SNI and Matstishita signed an agreement to have

SNI supply desktop PCs to Matsushita. In return,

Matsushita will supply laptop PCs to SNI on an

OEM basis.

Tosoh

The companies agreed to jointiy develop conductive electron-beam resist that completely solves the electrification problem occurring with direct-write e-beams.

Motorola

Matsushita agreed to purchase Motorola semiconductors for use in videocassette recorders.

7957

NEC Corporation

NEC and Matsushita agreed to develop the next generation of steppers for very large scale integration (VLSI) manufacturing.

1989

Signetics Company

Signetics and Matsushita entered a sales agency agreement for memory products.

Weitek Corporation

Weitek and Matsushita are joindy developing a microprocessor product

Siemens

Matsushita and Siemens formed a joint venture for producing passive electronic components.

Office Workstations Ltd.

Matsushita and Office Workstations of Scotland formed a joint venture for development of office automation software products.

SAE Inc.

SAE and Matsushita agreed to joindy develop a

64-bit microprocessor with plans for a 64-bit engineering workstation in 1989.

Philips

Philips and Matsushita renewed a business cooperation agreement for the next ten years in which

Matsushita Electric will continue to own 65 percent of Matsushita Electronics and Philips will own 35 percent Matsushita agreed to supply LSIs for compact discs to Philips, and the companies made a second-source agreement for 8-bit CMOS microcontrollers.

Intel

Matsushita obtained a license from Intel for the

8051 and three other 8-bit microcontrollers.

1988

Hewlett-Packard Company, IBM Corporation,

Intel

Matsushita agreed to supply these companies with a total of more than 1 milUon 1Mb DRAMs per month.

TRW

The companies agreed to jointly develop a

0.8-micron-wavelength GaAlAs semiconductor laser for space communications.

Nikon Corporation

The companies jointiy developed advanced i-line steppers and excimer lasers for next-generation

VLSIs.

Intel Corporation

Matsushita agreed to subcontract production of

Intel's 8-bit microcontrollers for the Japanese market The companies also agreed to jointiy develop a sub-0.5-micron 16Mb DRAM process.

MERGERS AND ACQUISITIONS

Sun Microsystems

The SPARC RISC chip was licensed for use in workstations being developed by Solboume Computer, a Matsushita subsidiary.

1991

Matsushita made no mergers or acquisitions in 1991.

©1992 Dataquest Incorporated January—Reproduction Prohibited

0012543

Matsushita Electric Industrial Co. Ltd.

1990

MCA Inc.

MCA Inc. was acquired by Matsushita for approximately $6.1 billioa MCA is primarily engaged in the production and distribution of motion pictures and musical recordings, theme parks, book publishing, retailing, and real estate development.

Keiya Toyonaga

Senior managing director

Hiroyuki Mizuno

Senior managing director

Tsuzo Murase

Senior managing director

1989

Matsushita made no mergers or acquisitions in 1989.

7955

Matsushita Electric IVading Co. Ltd. (MET)

MET, a 51.24 pox^nt owned consolidated subsidiary, was merged into the company in exchange for 73.4 million shares of Matsushita common stock having a fair market value of $1.1 billion.

KEY OFFICERS

PRINCIPAL INVESTORS

Sumitomo Bank—4.4 percent

Sumitomo Life Insurance—4.4 percent

Nippon Life Insurance—4.0 percent

Matsushita Investment and Development-

3.2 percent

Mitsubishi Trust—^3.0 percent

Sumitomo Trust—^2.9 percent

Konosuke Matsushita—2.6 percent

Toyo Trust—-2.0 percent

Kyowa Bank—^2.0 percent

Masaharu Matsushita

Chairman of the board

Akio Tanii

President

Shoji Sakuma

Executive vice president

Masahiko Hirata

Executive vice president

FOUNDERS

Konosuke Matsushita

0012543

©1992 Dataquest Incorporated January—^Reproduction Prohibited

Matsushita Electric Industrial Co. Ltd.

Table 3

Balance Sheet

Fiscal Year Ending March 31

(MiUions of U.S. Dollars)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Investments

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Total Liabilities and Shareholders' Eauitv

Exchange Rate (U.S.$1=^

*In 1987, Matsushita changed its fiscal year-end from November to March 31.

Fiscal 1987 represents only four months &om November 1986 to March 31, 1987.

Because of these changes, no information is included for 1987.

13,359.1

4,093.6

6,005.4

23,458.1

1,048,2

1,815.8

15,175.1

18,039.1

41,497.2

138.03

1988*

10,016.4

4,915.5

2,562.6

4,857.9

1,967.2

24,319.6

5,056.0

8,971.7

3,149.8

41,497.2

1989

11,229.2

6,137.8

1,652.8

6,210.6

2,303.0

27,533.4

6,426.6

11,828.3

4,128.9

49,917.3

16,717.6

4,849.1

5,999.5

27,566.3

1,280.7

3,266.7

17,803.6

22,351.0

49,917.3

128.25

1990

14,068.8

7,782.4

2,346.6

5,919.0

2,157.4

32,274.3

6,700.1

11,527.1

4,429.0

54,930.5

18,208.2

8,375.3

5,952.1

32,535.6

1,293.9

3,700.2

17,400.8

22,394.9

54,930.5

142.93

22,500.5

8,665.8

6,553.4

37,719.7

1,383.0

3,688.8

19,251.5

24,323.3

62,043.1

141.21

1991

11,737.8

9,062.4

1,294.5

6,593.7

2,491.3

31,179.8

8,202.7

17,420.9

5,239.7

62,043.1

Source: Matsushita Electric Industrial Co. Inc.

Annual Reports

Dataquest (January 1992)

10 ©1992 Dataquest Incorporated January—^Reproduction Prohibited

0012S43

Matsushita Electric Industrial Co. Ltd.

Table 4

Consolidated Income Statement

Fiscal Year Ending March 31

(Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

1988*

36,710.8

24,223.1

2,022.7

9,880.5

1,679.8

3,283.6

8.94

55.50

1,192.7

1,861.8

1989

42,918.1

28,622.9

2,488.1

11,042.3

2,537.5

4,128.2

9.62

54.20

1,664.4

1,955.6

1990

41,998.1

28,052.8

2,418.5

10,777.8

2,482.0

4,000.1

9.52

52.60

1,648.1

2,080.2

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (U.S.$1=¥)

0.67

0.80

9.69

138.03

*In 1987, Matsushita changed its fiscal year-end from November to March 31.

Fiscal 1987 represents only four months from November 1986 to March 31, 1987.

Because of these changes, no information is included for 1987.

0.76

0.90

11.43

128.25

0.68

0.63

10.77

142.93

0.83

0.89

11.62

141.21

Source: Matsushita Electric Industrial Co. Ltd.

Aimual Reports

Dataquest (January 1992)

1991

46,733.9

31,113.2

2,718.6

12,273.9

3,377.9

4,230.6

9.05

51.10

1,833.4

2,093.4

0012543

©1992 Dataquest Incorporated January—Reproduction Prohibited

11

Matsushita Electric Industrial Co. Ltd.

Table 5

Balance Sheet

Fiscal Year Ending March 31

(Billions of Yen)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Investments

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Total Liabilities and Sliareholders' Equity

Exchange Rate (U.S.$1=¥)

*In 1987, Matsushita changed its fiscal year-end from November to March 31.

Hscal 1987 represents only four months from November 1986 to March 31, 1987.

Because of these changes, no information is included for 1987.

1,843.9

565.0

828.9

3,237.8

144.7

250.7

2,094.7

2,490.1

5.727.9

138.03

1988*

1,382.6

678.5

353.7

670.5

271.5

3.356.8

697.9

1,238.4

434.8

5,727.9

1989

1,440.1

787.2

212.0

796.5

295.4

3,531.2

824.2

1,516.9

529.6

6,401.9

2,144.0

621.9

769.4

3,535.3

164.3

419.0

2,283.3

2,866.6

6,401.9

128.25

1990

2,010.8

1,112.3

335.4

846.0

308.4

4,612.9

957.6

1,647.6

633.0

7,851.1

2,602.5

1,197.1

850.7

4,650.3

184.9

528.9

2.487.1

3,200.9

7.851.2

142.93

3,177.3

1,223.7

925.4

5,326.4

195.3

520.9

2,718.5

3,434.7

8,761.1

141.21

1991

1.657.5

1,279.7

182.8

931.1

351.8

4,402.9

1,158.3

2,460.0

739.9

8,761.1

Source: Matsushita Electhc Industrial Co. Ltd.

Annual Reports

Dataquest (January 1992)

12

©1992 Dataquest Incorporated January—^Reproduction Prohibited

0012543

Matsushita Electric Industrial Co. Ltd.

Table 6

Consolidated Income Statement

Fiscal Year Ending March 31

(Billions of Yen, except Per Share Data)

Income Statement

1988* 1989 1990 1991

Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

5,067.2

3,343.5

279.2

1,363.8

231.9

453.2

8.94

55.50

164.6

1,861.8

80.34

9.52

1.34

5,504.3

• 3,670.9

319.1

1,416.2

325.4

529.4

9.62

54.20

213.5

1,955.6

99.94

11.90

1.47

6,002.8

4,009.6

345.7

1,540.5

354.8

571.7

9.52

52.60

235.6

2,080.2

108.34

10.00

1.54

6,599.3

4,393.5

383.9

1,733.2

477.0

597.4

9.05

51.10

258.9

2,093.4

117.12

12.50

1.64

Exchange Rate ( U . S . $ 1 ^

138.03

*In 1987, Matsushita changed its fiscal year-end from November to March 31.

Fiscal 1987 represents only four months from November 1986 to March 31, 1987.

Because of these changes, no information is included for 1987.

128.25

142.93 141.21

Source: Matsushita Electric Industrial Co.

Annual Reports

Dataquest (January 1992)

Ltd.

Table 7

Key Financial Ratios

Fiscal Year Ending March 31

Key Financial Ratios

Liquidity

Current (Hmes)

Fixed Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue OfM)/Employec

Capital Spending % of Assets

Exchange Rate (U.S.$1=^

1988*

1.82

230.03

74.05

130.03

2.87

6.61

3.25

5.51

4.58

134,186

37.76

4.05

138.03

*In 1987, Matsushita changed its fiscal year-end from November to March 31.

Fiscal 1987 represents only four months from November 1986 to March 31, 1987.

Because'of these changes, no information is included for 1987.

1989

1.65

223.33

74.79

123.33

3.33

7.45

3.88

1990

1.77

245.28

81.31

145.28

3.00

7.36

3.92

1991

1.39

255.08

92.51

155.08

2.96

7.54

3.92

5.80

5.91

193,088

28.51

5.08

128.25

5.76

5.91

198,299

30.27

4.52

142.93

5.82

7.23

210,848

31.30

5.44

141.21

Source: Matsushita Electric Industrial Co. I4d.

Annual Reports

Dataquest (Jamaiy 1992)

0012S43

©1992 Dataquest Incorporated January—^Reproduction Prohibited

13

Mitsubishi Electric Corporation

BACKGROUND AND OVERVIEW

Mitsubishi Electric Corporation began in 1898 as a heavy electrical equipment plant adjacent to the Nagasaki Shipyard. A related plant was set up in 1905 at Mitsubishi

Shipbuilding's Kobe Works. In 1921, these two vmits were consolidated to form Mitsubishi

Electric Manufacturing Company. During the Company's early years, it established heavy electrical equipment factories throughout Japan. In 1923, a technical cooperation agreement was made with Westinghouse Electric International; production of consumer goods began in the 1930s.

In 1958, Mitsubishi established separate groups for heavy machinery, electronics, consumer products, and overseas business. The Semiconductor Marketing Division began in 1972, and the Computer Marketing Division was founded in 1976. Mitsubishi is the fourth largest Japanese electronics company, following Matsushita, Hitachi, and Toshiba.

Mitsubishi has been a major supplier of electronic equipment to the Japan Defense

Agency for more than twenty years. The Company produces missiles and electronics for use in land, sea, and air vehicles; active phased-array radar used in fire control systems; the next-generation warning control radar; and computers for fighter planes. Mitsubishi also was the prime contractor for 9 of the 18 satellites lavmched by Japan's National

Space Development Agency.

Table 1 shows Dataquest estimates of Mitsubishi's Em"opean semiconductor revenue.

Table 1

Mitsubishi Electric CorpcH'ation

Estimated European Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

1983 1984 1985 1986 1987

$15 $21

$17

$33

$39

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

$14

0

13

1

$ 1

0

0

0

1

$20

0

19

1

$ 1

0

0

0

1

$15

1

14

0

$ 1

0

0

0

1

$29

1

28

0

$ 3

2

1

0

0

$34

2

32

0

$ 2

2

0

0

0

Total Optoelectronic f

0

$ 1 $ 1 $ 3

Source: Dataquest

September

1988

ESIS Volume III

0000829

© 1988 Dataquest Incorporated September

Mitsubishi Electric Corporation

PRODUCTS AND MARKETS SERVED

Mitsubishi's main product strengths are in the areas of EPROMS and DRAMs. The

Company is now a mass producer of the 1-megabit DRAM and at the forefront of development of the 4-megabit device. Mitsubishi's semiconductor product line includes the following:

• Bipolar digital logic—Low-power Schottky TTL (LSTTL) and ALSTTL

• MOS memory—64K, 256K, and 1Mb DRAMS; NMOS and CMOS SRAMs; ROMs; and EPROMs

• MOS microcomponents—Second-sourcing of Intel microcontroller in NMOS and CMOS, 8-bit CMOS and NMOS microperipherals, and original 8-bit microprocessors

• Linear—Transistor arrays, op amps, voltage comparators and regulators, timer

ICs, and current drivers

Mitsubishi also manufactures gallium arsenide (GaAs) field-effect transistors (FETs).

Some recent developments in the Company's semiconductor-related activities are related below:

• In March 1988, Mitsubishi announced an investment of £3 million at its video recorder plant in Livingston, Scotland, creating approximately 250 jobs over the next two years.

• In March 1988, profits at the top five Japanese electronics companies rocketed in the half year that started in September, 1987. Mitsubishi topped the list with a 26 percent rise in profits. The Japanese companies' success is generally attributed to the industry's efforts to put emphasis on domestic sales, to streamline plant operations, and to a general recovery in the semiconductor market.

• In March 1988, it was reported that Mitsubishi had begun talks with the major

European banks and computer houses in order to interest them in its family of

"smart" cards and memory cards. It is Mitsubishi's plan to dominate the

European IC card market. The Company also announced the launch of a range of logic ICs: two new families. Advanced Schottky TTL (MAST), and

74HC-advanced high speed CMOS; as well as both conventional and industry-standard families.

• In August 1987, Mitsubishi announced plans to build a £12 million plastics component plant at Bridgend in Wales. It will make plastic covers and panels for television sets and electronic office equipment.

© 1988 Dataquest Incorporated September ESIS Volume III

0000829

Mitsubishi Electric Corporation

In August 1987, Mitsubishi and Intel signed an agreement whereby Mitsubishi would make EPROMs for Intel in Japan. The devices will be sold in the

Japanese market under the Intel brand name. The contract is open-ended and will last until the two parties dissolve it.

In July 1987, NTT and Mitsubishi formed a joint venture company based in the

United States to develop and sell integrated circuit technology made from optical fiber.

OUTLOOK

Mitsubishi is continuing market penetration in Europe. Its U.K. subsidiary,

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

ESIS Volume III © 1988 Dataquest Incorporated September

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Mitsubishi Electric Corporation

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© 1988 Dataquest Incorporated September ESIS Volume III

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Motorola Incorporated

1303 E. Algonquin Road

Schaumberg, Illinois 60196

Telephone: (708) 576-5000

Fax: (708) 576-7653

Dun's Number: 00-132-5463

Date Founded: 1928

CORPORATE STRATEGIC DIRECTION

Motorola Incorporated is one of the world's leading suppliers of electronic equipment, systems, components, and services. Applications range from the telecommunications market to the semiconductors market, with products including two-way radios, pagers, cellular telephones and systems, semiconductors, defense and aerospace electronics equipment, automotive and industrial electronics equipment, computers, data communications equipment, and information processing and handling equipment.

Founded in 1928 for the purpose of manufacturing automobile radios. Motorola has grown from a radio equipment and communications manufacturer to a

$10.9 billion* Fortune 100 company with operations in diverse electronics markets.

Products group continues to close the gap with the

Communications Products segment, bringing in

$3.4 billion in revenue in 1990, accounting for

31.5 percent of revenue. The General Systems

Products group represented the highest rate of growth in 1990, as the group's revenue increased 39.2 percent to $2.6 billion in sales. General Systems has increased 140.3 percent in the last two years, up from the 1988 net sales total of $1.1 biUioa

Motorola's total revenue increased 13.1 percent to

$10.9 billion in fiscal 1990 from $9.6 billion in fiscal

1989. Net income increased 0.2 percent to

$499.0 million in fiscal 1990 from $498.0 million in fiscal 1989. Motorola employs approximately

115,400 people worldwide.

Motorola entered the semiconductor industry early in its history in 1948, when semiconductor operations were established to develop automobile radio applications. Today, Motorola maintains one of the broadest product lines of all semiconductor manufacturers and offers electronics products in other sectors as well.

Motorola is the largest semiconductor producer based in the United States.

The international market continues to increase its impact on Motorola's total revenue figures. In fiscal

1985, international sales accounted for 25 percent of revenue, while in fiscal 1990 the figure had increased to 44 percent of total revenue. Over the last two years, international sales revenue has increased

48.6 percent, nearly doubling the domestic growth of

24.8 percent Motorola expects this international growth trend to continue in fiscal 1991, with the main growth coming from Asia and Europe.

Motorola divides its operations into eight main groups: Land MobUe Products, Paging and Telepoint

Systems, Semiconductor Products, General Systems

Products, Information Systems Products, Government

Electronics Products, and the Automotive and Industrial Electronics groups. The Communications

Products segment, which includes the Land Mobile

Products and Paging and Telepoint Systems groups, remains the largest segment in terms of net sales, bringing in $3.6 biUion and accounting for 32.7 percent of revenue in fiscal 1990. The Semiconductor

*A11 dollar amounts are in U.S. dollars.

Accordingly, Motorola has continued to expand its operations on a global scale. In 1990, international highlights included the opening of a new semiconductor facility in Hong Kong, the provision of the radio system for the Asian games in China, and the cementing of plans to supply the communications system for the Channel Tunnel that will link England and

France. The company also began operations in the emerging eastern Europe maikets, selling two-way radios in Romania and Yugoslavia and cellular telephones in Hungary.

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Research and development expenditure totaled

$1.0 billion in fiscal 1990, representing 9.3 percent of revenue. Capital spending expenditure totaled

$1.3 billion in fiscal 1990, representing 12 percent of revenue.

Land Mobile Products

Nineteen-ninety was an active year for the Land

Mobile Products sector, as Motorola continued to invest heavily in future technologies. Using this newly formed sector, the company is active in the development of Specialized Mobile Radio (SMR) systems, wireless data communications, and digital trunking.

More detailed information is available in Tables 1 and 2, which appear after "Business Segment Strategic Direction" and present corporate highlights and revenue by region. Information on revenue by distribution diannd is not available. Table 3, a conqsiehensive financial statement, is at the end of this backgroimder.

Motorola took major steps toward the completion of its Coverage Plus SMR system, a nationwide voice and data communications and vehicle location network currently being implemented in the United

States. The system enables dispatchers to locate and communicate direcdy with vehicles ans^where on the network either by voice or data messages. Over

500 sites have been installed to date in the United

States. The company also implemented SMR systems in China and Germany.

BUSINESS SEGMENT STRATEGIC

DIRECTION

Communications Products

Motorola introduced a number of new models of trunked radio system products in 1990. The JSMR-II, the company's first 1.5-GHz shared trunked radio system, was installed in Japan. The system features newly developed repeaters and subscriber radios in the new frequency band. Motorola also began distribution of the company's first 1.5-GHz mobile radio, the MG-100, and the MIB-5000, an 800-MHz system that boasts the world's smallest trunked mobile radio.

The Communications Products segment accounted for

32.7 percent of Motorola's 1990 net sales, bringing in

$3.6 billion in factory revenue. This group produces a wide variety of radio communications equipment, including base stations, digital voice communications systems, high-frequency single-banded radio systems, mobile/portable data communications, FM two-way radio communications systems, and radio paging systems. Motorola can claim the distinction of being the first foreign supplier to join Japanese competitors in selling to Japan's national telephone company, Nippon Telegraph and Telephone Company. Motorola is a market leader in radio paging equipment.

Motorola continued production of the ARDIS radio data communications system, a result of a joint venture with IBM. The system provides communications networking applications in the areas of field service, insurance claims, and public safety and transportation. The company also introduced two modems that are compatible with networks such as ARDIS—the

RPM 840 integrated portable radio data modem and the RPM 400i modem for laptop and other hand-held computers.

The group's 1990 revenue of $3.6 billion represented a 7.6 percent increase over 1989*s revenue of

$3.3 biUion. Operating profits decreased 25.5 percent to $225 million in 1990, down from $302 million in

1989. Motorola attributes this decline to increased research and development costs in the areas of radio frequency (RF) cormnimications and radio data communications, expenses associated with expansion of international distribution, changes in domestic distribution, and shortfalls in implementation and efficiency in certain areas of business. At the end of fiscal 1990, the Commxmications Products sector was divided into two divisions: the Land Mobile Products group and the Paging and Telepoint Systems Group.

Paging and Telepoint Systems

Motorola introduced a number of new products in

1990 under the auspices of the Paging and Telepoint

Systems group. The introduction of the CT-2 cordless telephone marked Motorola's entrance into the second-generation digital cordless telephone market

The CT-2 technology provides cordless technology that allows the personal cordless telephones to be utilized in the home or office through conventional methods. The technology also allows use of the CT-2 telephones outside the home and office through the use of base stations known as telepoints, providing limited-range access. The CT-2 system was especially

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Motorola Incorporated popular in the international markets, as Motorola received substantial orders for the CT-2 from Singapore Telecom and other companies in Malaysia, Thailand, and Hong Kong. onto the number two position in 1990 with 9.8 percent of the worldwide market share, with discrete revenue amounting to $808 million.

Motorola offers a diverse line of pagers and is a market leader in radio paging equipment In 1990, the company introduced the Advisor pager, an alphanumeric unit with a four-line display and up to 32,000 characters of memory. FuU production of the revolutionary Wristwatch pager began in the fourth quarter of 1990. The Wristwatch pager, the result of a joint venture with Timex, combines a numeric display pager with a digital watch and is compatible with existing paging systems throughout the world.

Serving the broad range of discrete markets also requires a broad range of capabilities, including advanced submicron technology for such products as

RF semiconductors, power MOS and small-signal devices, and leading-edge manufacturing and packaging technologies for mature, high-volume semiconductors. These new technologies often combine discrete and integrated circuit technologies to provide new products containing substantial added value. The company also offers a broad range of silicon pressure sensing devices including a new fully signalconditioned integrated pressure sensor.

Semiconductor Products

In an era of increasing specialization and niche market-oriented companies. Motorola represents an unusual breed of U.S. semiconductor manufacturers.

As the largest U.S. chipmaker. Motorola continues to be one of the few remaining broad-based semiconductor suppliers in the natioa The company considers its wide product breadth to be critical to its semiconductor strategy and has charted a course that provides an extensive product portfolio.

Optoelectronics

Motorola's optoelectronic products include emitter/ detectors, optocouplers, optointerrupters, and fiberoptic switches and components. However, with revenue of $26 million during fiscal 1990, Motorola is a small player in the $2.7 billion optoelectronics market. Dataquest fotmd Motorola to rank nineteenth in the worldwide optoelectronics market during 1990.

The company's semiconductor revenue in 1990 was

$3.43 billion, an increase of 13.1 percent over 1989.

The semiconductor products segment accounted for

31.5 percent of total sales for fiscal 1990. According to Dataquest, Motorola possessed 6.3 percent of the

1990 worldwide semiconductor market, ranking it fourth among more than 140 vendors. The company ranks first in the North American semiconductor market with 11.3 percent market share and $2.0 billion in factory revenue. A review of Motorola's product portfolio shows that the company is manifestly strong in the areas of discrete devices and analog, logic, and microcomponent products. It is investing to establish a stronger position in memory through the development of a competitive fast SRAM offering, as well as a strategic position in DRAMs under a technology agreement with Toshiba.

Analog

Motorola's growing portfolio of analog circuits is targeted primarily toward automotive, telecommunications, and consumer applications. Using bipolar and

CMOS technologies. Motorola has developed a variety of proprietary and custom devices. In 1990, Motorola held a 4.6 percent market share and ranked sixth in the worldwide analog market, according to

Dataquest

Logic

Motorola offers a variety of logic products in standard logic, gate arrays, and custom products. The company has long been a leading producer of standard logic circuits, producing a variety of products in TTL,

ECL, and CMOS technologies. In die standard logic arena. Motorola is a major market participant, ranking fourth in the bipolar and digital logic markets and third in the MOS logic market during 1990, according to Dataquest

Discrete Devices

Although many semiconductor producers had abandoned discrete products for integrated circuits. Motorola remains an important force in discretes such as transistors, diodes, and thyiistors. In a market dominated by Japanese companies. Motorola had been the leading supplier and was dislodged from the number one position only in 1987 by Toshiba. Motorola held

Application-Specific ICs (ASICs)

In addition to working closely with key customers to offer high-performance system solutions in both bipolar and CMOS technologies. Motorola drives the indtistry standards for computer-aided design (CAD) actively in order to accelerate the availabiUty and

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Utility of open architecture alternatives. These activities are key features of the company's strategy in the

ASIC markets.

Motorola closed the gap with second-place NEC in

1990, pulling to within $74 million in yearly revenue.

During 1989, Motorola introduced a new design concept for ASICs called Customer-Defined Arrays.

Customer-Defined Arrays combine array- and cellbased chip architectures with multiple process technologies on a single circuit Motorola's new Open

Architecture CAD System gives customers a complete ASIC development environment using industrystandard workstations and leading third-party design and verification tools.

Motorola is the leading supplier of ECL gate arrays to the merchant market Motorola's MCA HI process supports 2,200- and 10,000-gate ECL arrays featuring

12C^s typical gate delays and 1,200- to 1,500-MHz input firequencies. In 1990, Motorola extended the line by introducing an ETL series providing mixed

ECL, TTL, and pseudo-ECL interfaces in 750-,

3,200-, and 6,200-gate densities. System clock speeds up to 2,500 MHz are supported. Motorola also offers bipolar foundry services based on the MCA V process with four-layer metal and 0.8-inicron emitters. Typical gate delays of 80ps are achieved in a channeUess architecture. Next-generation bipolar arrays wiU shrink emitter width and include a BiCMOS process option for high-speed embedded memory. Initial products will allow 20,000 to 30,000 gates of 50ps logic combined with 256,000 bits of BiCMOS RAM.

Motorola is the leading supplier of 8-bit microcontrollers in terms of units shipped, garnering a

23.9 percent share of the worldwide market The company's 68HC05 continues to be the top microcontroller on the market in terms of unit shipments, with over 73.6 million units shipped in 1990. A leading application for these 8-bit MCUs is in the automotive industry.

The company introduced its first 16-bit microcontroller, the MC68HC16, in 1990. The MC68HC16 features on-chip control-oriented digital signal processing (DSP) capability, with plaimed applications including future vehicles from Chrysler

Corporation.

Motorola also tmveiled the 68332, a 32-bit embedded microcontroller. It is based on Motorola's 68020 central processing unit and has been chosen by General

Motors for control functions in future vehicles. The

68302 Integrated Multiprotocol Processor was developed for communications applications. In addition, the company introduced the 68HC16 microcontroller family, its first 16-bit MCU device, to provide a smooth migration path from 8-bit to 32-bit microcontroller appUcations.

In the arena of CMOS process technology. Motorola has a family of high-density CMOS gate arrays manufactured in a submicron process. The H4C

Series utilizes a sea-of-gates architecture and ranges in gate count from approximately 27,000 to 318,000 gates. Utilizing triple layer metal routing, the H4C

Series combines user-configurable RAMs up to

256Kb, digital phase-locked loops, and low power consumption for true systems integration.

Microcomponents

The company is also prominent in high-end microprocessors, where it has a full line of products including high-performance floating-point coprocessors and DSP support. Motorola ranked second in the

32-bit microprocessor market with a 30.5 percent market share in 1990, according to Dataquest estimates. Motorola had the advantage of a head start in the emerging 32-bit microprocessor market with its

68020 and 68030 devices. Because the M68000 microprocessor, a 16-bit microprocessor introduced in

1979, had a 32-bit internal architecture. Motorola was able to upgrade 16-bit data bus paths to a fuU 32-bit architecture with the 68020 a full two years before its competitors.

Motorola is a leading participant in the microcomponents market The company has been a long-time supplier of proprietary microprocessors, microcontrollers, and microperipherals to this market With estimated revenue of $1.0 billion in an approximately

$10.1 billion market a 10.0 percent market share,

Motorola ranks as the third-largest microcomponent manufacturer in the world. Motorola has ranked consistendy as the number three supplier to this market, behind Intel and NEC. According to Dataquest

In early 1987, Motorola produced silicon for the

68030, a second-generation 32-bit microprocessor that incorporated such functions as a paged MMU, an instruction cache, and a data cache with burst-fillable mode in a Harvard-style architecture. These devices have found tisage in a variety of applications, including business systems, artificial intelligence platforms, robotics, telecommunications, multiprocessor systems, military products, and most prominently in technical workstations.

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Motorola Incorporated

In the fourth quarter of 1990, Motorola began fullscale production of its next-generation complexinstruction-set computing (CISC) microprocessor, the

MC68040. With 1.2 million transistors, the MC68040 dehvers 20 mips and a sustained rate of 3.5 mfiops at

25 MHz. Fabricated with Motorola's 0.8-micron highperformance HCMOS process, the MC68040 features an integer unit, a floating-point unit, two memorymanagement units, and two 4KB cache memories

(one for data and one for instructions). It is compatible with the software base of the M68000 family. It has been endorsed as a platform for future products by customers including Apple Computer Inc., Bull,

Commodore, Hewlett-Packard/Apollo, NeXT, Nixdorf, and Unisys.

In 1989, the CPUAX, the new superdup containing

4 million transistors, was designed by TRW and fabricated by Motorola under the U.S. Department of

Defense Very High Speed Integrated Circuits

(VHSIC) Phase 2 program. This 0.5-micron device can perform 200 mflops and can automatically configure and repair itself. Originally intended by TRW for defense and space applications, the processing knowledge will be used by Motorola in future commercial products.

In digital signal processing. Motorola has introduced its 96002 Media Engine, a 32-bit IEEE floating-point processor. Based on the same architecture as the company's 24-bit fixed-point device, the 96002 is able to create vivid color graphics while generating stereo sound.

Memories

Motorola's 88000 reduced-instruction-set computing

(RISC) family of 32-bit microprocessors, first introduced in 1988, has been endorsed by more than

50 computer and telecommunications systems manufacturers, with more than 20 systems already announced. More than 1,500 software packages are under development for the 88000, usmg its applications software compatibility standard. The company plans to release its second-generation RISC engine, die 88110, during fiscal 1991. Based on Symmetric

Superscaler technology, the 88110 will permit instructions to be executed simultaneously and will also eliminate instruction-sensitive performance degradation foimd in competing RISC processors.

According to Dataquest estimates. Motorola climbed to 9th in the worldwide MOS memory market with a market share of 3.0 percent in 1990, up from a

12th-place ranking and a 2.5 percent market share in

1989.

General Systems Products

As a part of a proposed three-way technology alliance among Apple, IBM Corporation, and Motorola, the companies announced in July 1991 that Motorola will codesign and manufacture a single-chip implementation of IBM's RS/6000 Power Architecture to be called Power PC. The new RISC chip will be the hardware base of a new entry-level software product to be developed and marketed by Apple and IBM. It will also be the base hardware for future Apple

Macintosh computers. This chip will become the third high-performance processor platform in Motorola's portfolio, joining die 68000 and 88000 families.

Motorola manufactures a variety of DRAMs and fast

SRAMs using CMOS and BiCMOS technologies.

The company has developed a strategic supply position in DRAMs as a part of its technology agreement with Toshiba. Motorola is producing 1Mb DRAMs in two of its own fabrication faciUties and in its joint venture with Toshiba in Sendai, Japan. A variety of microcomponents also are produced at ths site.

The General Systems sector includes the Motorola

Cellular group and the Motorola Computer Systems group, formerly called Four-Phase Systems before its acquisition by Motorola in 1982. TTie General Systems sector was the fastest-growing sector for Motorola in fiscal 1990, with sales increasing 39.2 percent to $2.6 biUioa The sector accounted for 24.3 percent of Motorola's total revenue in fiscal 1990, up from the 19.8 percent that the sector's revenue accoimted for in 1989.

The Cellular group produces mobile and portable subscriber products and telephone systems, conventional car telephone systems, electronic mobile exchanges, IMTS car telephones, and low-density cellular base stations. As a leader in the fast-growing cellular telephone industry. Motorola is one of the top suppliers of celltilar telephone systems as well as mobile and portable phones. Motorola is the market leader in cellular telephones, garnering a 15.2 percent market share with $400 million in revenue in 1990.

More than half of the company's cellular revenue comes from outside the United States. Motorola believes that in many underdeveloped countries with limited wireline systems, cellular radiotelephones may become the principal telecommunications system.

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The MicroTAC personal telephone, introduced in

1989, continues to grow in popularity. One of the smallest and Ughtest cellular telephones currently on the market, the MicroTAC is the size of a checkbook and fits into a pocket or purse while offering the same power, features, and performance as larger cellular phones. The MicroTAC won Japan's 1990 foreign product design award from the Ministry of International Trade and Industry. Motorola is currently testing a new cellular call handling system, the Narrow

Band AMPS, which has the potential to multiply cellular system capacity more than threefold using existing cellular standards.

The Computer Systems group develops, manufactures, markets, and services multiuser, supermicroclass computers and board-level products. The group's products are based on industry standards, such as the VMEbus hardware standard, the UNIX operating system, and industry-standard peripheral interfaces. Computer products are marketed to enduser customers, OEMs, VARs, and distributors worldwide. Motorola's 68000 microprocessors and the

88000 series RISC microprocessors are at the core of the VME board-level products.

In 1990, the MultiPersonal Computer was introduced by the Computer Systems group. Based on the 88000

RISC microprocessor, AT&T's UNIX operating system, and the X Window graphics standard developed by Massachusetts Institute of Technology, the

MultiPersonal Computer is designed to integrate the commercial desktop computer into the office environment. Features include the MultiPersonal Image

Exchange, which allows users to send and receive facsimile documents on-line and route them to the proper user. Also in 1990, Motorola began full-scale production of the MVME165, a VME processor module built around the company's 68040 microprocessor. The MVME165 is designed for embedded control and distributed real-time applications.

Information Systems Products

The Information Systems Products segment accounted for 5.5 percent, or $599 million, of Motorola's total revenue for fiscal 1990. The products are designed and manufactured by Codex Corporation and Universal Data Systems Inc. (UDS). offered alone and, increasingly, in systems, which have been configured to transmit information between dispersed business machines, terminals, and other peripheral devices, and host computers. Codex also sells communications products that it does not manufacture.

Codex was active in 1990 with the addition of a host of new products. The Codex 3600 Communications platform is a new proprietary communications platform that can be configured as a 24,000-bps modem or a digital transmission device, offering customers increased flexibiUty. The platform is complemented by two new releases: the 3500 Digital Service Unit/

Channel Service Unit and a terminal adaptor for the

Integrated Services Digital Network (ISDN). Release

3 of the Codex 9800 Network Management System offers an operational Interface kit that allows the integration of non-Codex products. Interfaces were also released for the "supermanagers" offered by

AT&T, Digital Equipment Corporation, and IBM.

UDS manufactures and sells data communications modems, multiplexers, digital data systems (DDS) service units, and ISDN equipment UDS' 9,600-bps

V.32 modems, introduced in 1989, continued to gain popularity in 1990 as shipments more than doubled.

The V.32 modems, which are of the plug-in variety and support the IBM PS/2 computer family, won international support with major orders coming from

Japan, Germany, and Egypt.

Government Electronics Products

The Government Electronics group is engaged in the design, development, and production of electronic systems and products. During tiscal 1990, it accounted for 6.3 percent of Motorola's total revenue.

The group produces diversified military and space electronics equipment, including aerospace telecommunications systems, military communications equipment, radar systems, data links, display systems, positioning and navigation systems, instrumentation products, countenneasuies systems, missile guidance equipment, electronic ordnance devices, and drone electronic systems. According to Dataquest, Motorola ranked second in the worldwide military/aerospace semiconductor market in 1990, garnering a 6.7 percent market share.

Codex manufactures and sells high-speed leased-line and dial modems; data/voice, time division, and statistical multiplexers; network management and control systems; X.25 networking equipment; and

LAN interconnection products. These products are

Major contracts awarded in 1990 included a

$78.5 million contract for the FMU-139 fuze and a

$36.9 million contract for the MK45 target-detecting device used on die Standard missile. A new product introduced in 1990 was the latest model of the Lightweight Satellite Terminal system, the LST-5C. The

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Motorola Incorporated

LST-5C radio weighs only 8.5 pounds and provides full power to establish and maintain a worldwide satellite communications link with only the use of a hthium battery.

Automotive and Industrial Electronics

farm equipment manufacturers. In 1990, the group began production of new programs in passenger car and light vehicle applications with Chrysler/Jeep and

Ford Motor Company. The group also started shipping diesel engine control models to Cummins

Engine Co. and Vehicle Management and Control

(V-MAC) modules to Mack Trucks Inc.

The Automotive and Industrial Electronics group manufactures and markets soUd-state electronic ignition systems, engine management controls, sensors, automotive instruments, and other automotive electronic products. These products are sold to

OEMs, including foreign and domestic automobile manufacturers, heavy vehicle manufacturers, and

Further Information

For further information about Motorola's business segments, please contact the appropriate Dataquest industry service.

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Table 1

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

Five-Year Revenue

Percent Change

1986

5,888.0

8.18

1987

6,727.0

14.25

Capital Expenditure

Percent of Revenue

R&D Expenditure

Percent of Revenue

567.0

9.63

481.0

8.17

658.0

9.78

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

94,400

62.37

194.0

169.44

524.0

7.79

97,700

68.85

308.0

58.76

1988

8,250.0

22.64

899.0

10.58

665.0

8.06

102,000

80.88

445.0

44.48

1989

9,620.0

16.61

1,094.0

11.37

810.0

8.42

104,000

92.50

498.0

11.91

1990

10,885,0

13.15

1,256.0

11.54

1,008.0

9.26

115,400

94.32

499.0

0.20

1990 Fiscal Year

Quarterly Revenue

Quarterly Profit

Ql

2,533.0

127.0

Q2

2,715.0

161.0

Q3

2,703.0

102.0

Q4

2,934.0

1,095.0

Source: Motorola Incoiporated

Aonual Reports

Dataquest (October 1991)

Table 2

Revenue by Geographic Region (Percent)

Region

North America

International

1986

71.31

28.69

1987

67.94

32.06

1988

63.85

36.15

1989

59.65

40.35

1990

55.70

44.30

Source: Motorola Incorporated

Annual Reports

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Motorola Incorporated

1990 SALES OFFICE LOCATIONS

North America—209

Europe—^21

Japan—4

ROW—26

Schaumberg, Illinois

Communications products

Seguin, Texas

Automotive electronics products

Tempe, Arizona

Semiconductor products, general information system products

Vega Baja, Puerto Rico

Communications products

"WiUowdale, Canada

Communications products

MANUFACTURING LOCATIONS

Europe

North America

Albuquerque, New Mexico

Communications products

Arlington Heights, Illinois

Cellular telephone products

Austin, Texas

CMOS logic, MOS digital/analog, ASICs, MCUs,

FSRAMs, complex MPUs

Boynton Beach, Florida

Communications products

Carlisle, Pennsylvania

Communications products

Chandler, Arizona

Semiconductor products

Cupertino, California

General information system products

Elma, New York

Automotive electronics products

Fort Worfli, Texas

Communications products

Huntsville, Alabama

Modems

Lawndale, CaUfomia

Semiconductor products

Mansfield, Massachusetts

Data communications products

Mesa, Arizona

MPUs, ASICs, DRAMs, MOS digital/analog, telecom, regulators, op amps, automotive bipolar logic, gate arrays, logic

M t Pleasant, Iowa

Communications products

Northbrook, Illinois

Automotive electronics products

Phoenix, Arizona

Power products, RF power products, small-signal sensors, thyristors, TMOS power, Zener diodes, rectifiers

Plantation, Florida

Communications products

Basingstoke, England

Communications products

Bordeaux, France

Semiconductor products

Camberly, England

Communications products

Copenhagen, Denmark

Communications products

E. Kilbride, Scotland

MCUs, logic, MOS digital/analog, MPUs, memory

Flensburg, Germany

Communications products

Munich, Germany

Semiconductor products

Stotfield, England

General information system products

Swindon, England

Cellular telephone products

Taunusstein, Germany

Communications products

Toulouse, France

Power products, telecom, consumer, regulators, op amps, auto, rectifiers

Asia/Pacific

Aizu Wakamatsu, Japan

Logic, power, standard cells, MCUs, memory

Chung Li, Taiwan

Communications products, semiconductor products

Kowloon, Hong Kong

Semiconductor products

Kuala Lumpur, Malaysia

Semiconductor products

Manila, Philippines

Communications products, semiconductor products

Melbourne, Australia

Communications products

Penang, Malaysia

Communications products

Sendai, Japan

DRAMs, SRAMs, FSRAMs, ASICs, MCUs

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Seoul, Korea

Communications products, semiconductor products

Seremban, Malaysia

Small-signal products

Singapore

Communications products

Tokyo, Japan

Communications products

Motorola de Mexico S.A. (Mexico)

Motorola Israel Ltd. (Israel)

Motorola Stomo S.A. (Mexico)

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

ROW

Arad, Israel

Communications products

Guadalajara, Mexico

Power products

Leon, Mexico

Communications products

San Jose, Costa Rica

Commimications products

Tel Aviv, Israel

Communications products, general information system products

1991

Apple Computer Inc. and IBM Corporation

Motorola signed a preliminary technology agreement with Apple and IBM to share technology in the production of a new Motorola-produced RISC chip that wiU be the hardware base of a new entry-level software product to be developed and sold by IBM and Apple. This chip will also serve as the base hardware for future Apple Macintosh computers.

SUBSIDIARIES

Europe

Motorola GmbH (Germany)

Motorola Ltd. (United Kingdom)

Motorola Semiconducteurs S.A. (France)

GRID Systems

Motorola and GRID signed an agreement allowing

Motorola's Mobile Data division to become an official VAR for GRiD's laptop computer.

North America

Codex Corporation (United States)

Motorola Canada Ltd. (Canada)

Motorola Components de Puerto Rico Inc. (Puerto

Rico)

Motorola Credit Corp. (United States)

Motorola International Corp. (United States)

Motorola International Development Corp. (United

States)

Motorola Portatiles de Puerto Rico Inc. (Puerto Rico)

Motorola Portavoz de Puerto Rico Inc. (Puerto Rico)

Motorola Telcarro de Puerto Rico Inc. (Puerto Rico)

Universal Data Systems (United States)

Integrated Micro Products Ltd.

Motorola and Integrated Micro Products signed an

OEM agreement involving a special adaptation of the latter's fault-tolerant UNIX for use in Motorola's trunked radio systems for police and emergency radio services.

Lansdale Semiconductor Inc.

Lansdale purchased the exclusive rights to manufacture the DTL, HTL, RTL, and TTL military integrated-circuit series from Motorola.

Lockheed

Motorola and Lockheed will jointly conduct the

Iridium global personal communications project

Lockheed will supply the 77 teleconununications satellites for the Iridium system.

ROW

Motorola

Motorola

Motorola

Motorola

Motorola

Motorola

Asia Ltd.. (Hong Kong)

Electronics Pte. Ltd. (Singapore)

Electronics Taiwan Ltd. (Taiwan)

Korea Ltd. (South Korea)

Malaysia Sdn. Bdh. (Malaysia)

Semiconductor Sdn. Bdh. (Malaysia)

Northern Telecom Limited

Motorola and Northern Telecom signed an agreement to develop major enhancements to their existing cellular products for global markets.

Ontario Systems Corp.

Ontario signed an agreement with Motorola hcensing Ontario to sell Motorola's Delta 8000 RISCbased systems.

10 ©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011021

Motorola Incorporated

OSC Communications Corp.

Motorola and OSC Communications agreed to cooperate in developing open cellular systems interface standards for worldwide cellular telephone markets.

PacTel Corp.

Motorola and PacTel signed an agreement to conduct an extensive field test and market trial of the code division multiple access (CDMA) digital cellular telephone technology.

Softsel Computer Products Ltd.

Softsel signed an agreement with Motorola allowing the former to distribute Motorola's Delta and

M88000 RISC systems in the United Kingdom.

Tech Data Corp.

Motorola named Tech Data as a distributor of its

Altair wireless ethemet products.

Unitrode Corp.

Motorola and Unitrode signed a technology partnership agreement to develop proprietary techniques to be used in the manufacture of direct wafer bonded silicon wafers.

XcelleNet Inc.

Motorola and XcelleNet signed a joint marketing agreement providing network access and information delivery capabilities for widely distributed organizations.

1990

BT Tymnet Inc.

BT Tymnet awarded Motorola a contract to provide networking for the Coverage PLUS veWcle communications system.

IBM

Motorola and IBM formed a joint venture to provide a nationwide radio data information service in the United States. The new service, called

ARDIS, will give companies with mobile work forces access to company computer databases and information systems through two-way radio data terminals.

Interphase

Interphase signed a three-year OEM contract with

Motorola valued at $8 million.

Liant Software

The companies reached a two-year agreement for

Motorola to sell Liant's RM/COBOL-85 programming language system to users of Motorola's

UNIX-based computer systems.

Philips International

Motorola and Philips signed an agreement to supply a full-screen, full-motion video IC for CD-

Interactive appUcations.

Synopsys Inc.

Motorola and Synopsys signed a technology partnership agreement to joindy develop software libraries and models for Motorola's ECL ASICs.

Tekelec

Tekelec signed an agreement to supply Motorola with communications test equipment

1989

Digital Equipment Corporation (DEC)

The companies will jointly design a fiberdistributed data interface chip set that Motorola will manufacture and mariceL

IBM

Motorola will fund and assign personnel to an

R&D program for an X-ray lithograph project

Interphase Corp.

Motorola bought 20 percent of this disk controller maker.

Oracle

Oracle will port its popular ORACLE relational database management system and related

ORACLE tools to Motorola's M88000-based computer systems.

Philips International

The companies will cooperate on VSLI integrated circuits for interactive compact discs.

Thomson-CSF

Thomson-CSF wiU standardize its military and defense products to Motorola's M88000 RISC microprocessor family.

1988

Data General

Data General is to develop an ultrahigh-speed version of the M88000 RISC microprocessor family.

Omnirel

The two companies jointly introduced power

MOSFET devices intended for military appUcations.

Unisoft Group

Unisoft is acting as Motorola's exclusive agent for future products based on UNIX Release V.

0011Q21

©1991 Dataquest Incorporated October—^Reproduction Prohibited 11

Motorola Incorporated

MERGERS AND ACQUISITIONS

1991

UNIX Systems Laboratories

Motorola joined 10 other companies in the purchase of 20 percent of the stock of AT&T-owned

UNIX Systems Laboratories.

James Donnelly

Executive vice president and director of Personnel

David W. Hickie

Executive vice president and chief corporate staff officer

David G. Wolfe

Executive vice president and general manager,

Government Electonics group

Edward F. Staiano

President and general manager. General Systems sector

KEY OFFICERS

George M. C. Fisher

Chairman of the board and chief executive officer

Gary L. Tooker

President and chief operating officer

Christopher B. Galvin

Senior executive vice president and assistant chief operating officer

Donald R. Jones

Executive vice president and chief financial officer

Arnold S. Brenner

Executive vice president and general manager,

Japanese group

PRINCIPAL INVESTORS

Information is not available.

FOUNDERS

Information is not available.

12

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011021.

Motorola Incorporated

Table 3

Comprehensive Financial Statement

Fiscal Year Ending in December

(Millions of U.S. Dollars, except Per Share Data)

Balance Sheet

Cash

Receivables

Marketable Seciirities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Common Stock

Odier Equity

Retained Emiings

Total Shareholders' Equity

Total Liabilities and Shareholders' Equity

4,682.0

1986

42.0

851.0

143.0

819.0

384.0

2,239.0

2,140.0

303.0

4,682.0

1,371.0

334.0

223.0

1,928.0

385.0

817.0

1,552.0

2,754.0

1987

47.0

1,101.0

211.0

909.0

439.0

2,707.0

2,329.0

285.0

5,321.0

1,668.0

344.0

301.0

2,313.0

388.0

843.0

1,777.0

3,008.0

5,321.0

1988

195.0

1,400.0

145.0

1,144,0

496.0

3,380.0

2,854.0

476.0

6,710.0

2,691.0

343.0

301.0

3,335.0

389.0

851.0

2,135.0

3,375.0

1989

231.0

1,683.0

202.0

1,173.0

626.0

3,915.0

3,337.0

434.0

7,686.0

2,751.0

755.0

377.0

3,883.0

391.0

878.0

2,534.0

3,803.0

1990

265.0

1,857.0

312.0

1,245.0

773.0

4,452.0

3,778.0

512.0

8,742.0

3,048.0

792.0

645.0

4,485.0

395.0

929.0

2.933.0

4,257.0

6,710.0 7,686.0

8,742.0

Source: Motorola Incorporated

Animal Reports

Dataquest (October 1991)

0011021

©1991 Dataquest Incorporated October—^Reproduction Prohibited

13

Motorola Incorporated

Table 4

Consolidated Income Statement

Fiscal Year Ending in December

(Millions of U.S. Dollars, except Per Share Data)

Income Statement

Revenue

U.S. Revenue*

Non-U.S. Revenue*

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

*Dataquest estimate

1.53

0.64

21.77

1986

5,888.0

4,124.0

1,764.0

3,647.0

481.0

1,431.0

567.0

265.0

4.50

46.00

194.0

126.5

1987

6,727.0

4,482.0

2,245.0

4,059.0

524.0

1,659.0

658.0

416.0

6.18

40.00

308.0

128.9

2.39

0.64

23.34

1988

8,250.0

5,269.0

2,981.0

5,040.0

665.0

1.957.0

899.0

612.0

7.42

34.00

445.0

129.7

1989

9,620.0

5,997.0

3,623.0

5,905.0

810.0

2,289.0

1,094.0

646.0

6.72

34.00

498.0

130.0

3.43

0.67

26.02

3.83

0.76

29.25

3.80

0.76

32.32

Sonice: Motorola Incorporated

Aimual Reports

Dataquest (October 1991)

1990

10,885.0

6,063.0

4,822.0

6,822.0

1,008.0

2,414.0

1,256.0

666.0

6.12

34.00

499.0

131.7

Table 5

Key Financial Ratios

Fiscal Year Ending in December

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue (K)/Employee

Capital Spending % of Assets

1986

1.63

170.01

49.78

70.01

4.14

7.04

3.29

8.17

9.63

94,400

62.37

12.11

1987

1.62

176.89

55.45

76.89

5.79

10.24

4.58

7.79

9.78

97,700

68.85

12.37

1988

1.26

198.81

79.73

98.81

6.63

13.19

5.39

1989

1.48

202.10

69.79

102.10

6.48

13.09

5.18

1990

1.46

205.36

71.60

105.36

5.71

11.72

4.58

8.06

10.58

102,000

80.88

13.01

8.42

11.37

104.000

92.50

14.23

9.26

11.54

115,400

94.32

14.37

Source: Motorola Incorporated

Annual Reports

Dataquest (October 1991)

14

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011021

National Semiconductor Corporation

2900 Semiconductor Drive

Santa Clara, California 95052-8090

Telephone: (408) 721-5000

Fax: (408) 732-9742

Dun's Number: 04-147-2986

Date Founded: 1959

CORPORATE STRATEGIC DIRECTION

National Semiconductor Corporation was formed in

1959 in Danbury, Connecticut, as a manufacturer of transistors. In 1967, when Charles E. Sporck was named president and CEO, the company moved its headquarters to Santa Clara, CaUfomia, and began producing proprietary integrated circuits (ICs). In

January 1991, Mr. Sporck announced his retirement and Dr. Gilbert F. Amelio was named president and

CEO. Dr. Amelio took over in May 1991.

The company reported revenue of $1.7 bUlion* for the fiscal year ending in May 1991, an increase of

1.6 percent from the previous year. National reported a net loss of $151.4 million for fiscal 1991. The year's financial results reflect the impact of the restructuring activity that the company annotmced in

August 1990, including a one-time pretax charge of

$143.6 million, taken in the first quarter. Following this restructuring, the remaining three quarters showed modest but improved profitability. The company employs 29,000 people worldwide.

Under Dr. Amelio, National has been reorganized into two major business groups, the Communications and

Computing Group and the Standard Products Group.

In addition to the two groups, Military/Aerospace operates as a separate division. This decentralization is an attempt by the company to provide principal operating groups with fuU responsibility and control of their operations.

The Communications and Computing Group is structured aroimd applications-focused product lines that use the company's VLSI technologies to serve selected vertical markets. The group is made up of six businesses: Innovative Products, Local Area Networks (including the Computer Enhancement Group and board level products). Mass Storage, Embedded

Control, Office Automation (formerly known as

Imaging), and ASIC.

The second major business group is the Standard

Products Group, which focuses on broad, horizontal markets. The Standard Products Group is made up of large, high-volimie product lines, including digital logic, linear, memory and programmable products, and discretes.

National considers research and development essential to the future profitability of the company. For

1990, R&D expenditure was $198.6 million, which equates to 11.67 percent of revenue.

National's primary process technology is built on a core CMOS process called M2CMOS. To this core, modules ate added for analog, E2 memory, EPROM, and BiCMOS applications. The woridiorse M2CMOS process appears across the board in several product lines. National offers a range of M2CMOS processes with design rules ranging down to 0.8 microiL The company plans to further shrink M2CMOS to

0.5 micron by the middle of the decade. M2CMOS uses dual-layer metalization with an optional third layer of metal.

In addition to M2CMOS is the company's highperformance core VLSI bipolar process. Advanced

Single-Poll Emitter-Coupled Technology (ASPECT).

ASPECT and its BiCMOS module. Advanced

BiCMOS (ABiC), are used for high-performance gate array and communications devices. ASPECT has been scaled from 2.5 microns to 0.8 micron and will be scaled in the future to 0.5 micron.

*AI1 dollar amounts are in U.S. dollais.

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011283

National Semiconductor Corporation

In advanced packaging technology, the company uses a range of surface-mount devices including smalloutline packages, plastic chip carriers, and both lead and leadless ceramic chip carriers. National also commercialized tape-automated bonding with the development of TapePak. come largely from the Communications and Computing Group, grew 44 percent in calendar year 1990, placing National ninth in the worldwide market share rankings in this category.

Innovative Products Division

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highlights and revenue by region and distribution channel. Tables 3 through 5, at the end of this backgrounder, present comprehensive financial information.

The Innovative Products Division is a new division within the Communications and Computing Group designed to service new and developing businesses.

The product lines currently in this division are: ^ ^ e less Communications (formerly known as Digital

Mobil Radio), Advanced Communications (FDDI),

Telecom, and PC Products.

BUSINESS S E G M E N T STRATEGIC

D I R E C T I O N

Dataquest estimates that National Semiconductor held

11th place in both the 1989 and 1990 worldwide semiconductor market share rankings. The majority of National's semiconductor sales came firom the

United States, which contributed revenue of

$894 million. Asia/Pacific-ROWwas second with

$417 million, followed by Europe with sales of

$408 million.

Under the Innovative Products Division, the

Advanced Communications Business Unit supports the fiber-distributed data interface (FDDI) market

National introduced its BiCMOS FDDI chip set in

April 1990. In late 1990, National and Cabletron agreed to develop a transceiver to allow FDDI to be used for an unshielded twisted pair (UTP) transceiver.

The Telecommimications Business Unit includes

National in the noncaptive analog line card market with its COMBO family of CODECs. The COMBO I and COMBO n were developed by National and

Ucensed to SGS-Thomson as a second source. The

COMBO is the mdustry's first CMOS coder/decoder circuit (CODEC filter), and National holds foiupatents on this product

National offers analog, logic, memory, discrete, microcontroller, and ASIC products. Given the company's calendar year 1990 revenue of $619 million,

Dataquest ranks National number 2 in the worldwide manufacture of analog ICs, representing 36 percent of the company's total semiconductor sales; number 4 in the worldwide manufacture of bipolar digital logic sales, representing 25 percent of the company's total semiconductor sales; number 13 in the worldwide manufacture of MOS digital, representing 35 percent of the company's total semiconductor sales; and number 24 in the worldwide manufacture of discrete devices, representing 4 percent of the company's total semiconductor sales.

The Personal Computer Product line includes floppy disk controllers, universal asynchronous receiver transmitters (UARTs), PC chips including the

Enhanced AT, Super l^O, Video Graphics Adapter, and Biphase Communications Processor.

Local Area Network Division

Communications and Computing Group

The six divisions tmder the Communications and

Computing Group are Innovative Products, Local

Area Network, Mass Storage, Embedded Control,

Office Automation, and ASIC. Dataquest estimates that National's MOS microcomponent sales, which

The Local Area Network Division is the largest of the six product areas. According to National, this division has an estimated 80 percent market share of the

PC LAN ethemet adapter board market The division has introduced new LAN products, such as the 32-bit

SONIC (Systems-Oriented Network Interface Controller), and the ST-NIC, the industry's first singlechip lObase-T Ethemet Serial Network Interface

Controller.

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011283

National Semiconductor Corporation

Mass Storage Division

According to National, the Mass Storage Division grew 28 percent in fiscal year 1991. The company focuses on high-performance drives and supplies pulse detectors, data synchronizers, encoders/ decoders, servo controllers, and disk controllers. supplier worldwide, with calendar year 1990 sales of

$590 million holding a 6.4 percent market share.

Analog Division

The Analog Division supports four business units:

Standard Linear Products, Systems Products, Interface, and Custom Linear ASIC (CLASIC).

Embedded Control Division

National offers 4-, 8-, and 16-bit microcontrollers through its Embedded Control Division. For calendar year 1990, Dataquest estimates that National ranks ninth as the worldwide supplier of 4-bit microcontrollers, with 4.7 percent of the market share; eighth as the supplier of 8-bit microcontrollers with

3.0 percent of the market share; and foxirth as suppUer of 16-bit microcontrollers with 9.6 percent of the market share. Dataquest estimates that National's total

MOS microcontroller sales were $99 miUion in calendar year 1990, an increase of 46 percent over the previous year.

The Standard Linear Business Unit produces operational amplifiers, power management circuits (motion control and voltage regulators), and data acquisition circuits. New products within the Standard Linear

Business Unit are high-speed VIP amplifiers, 12bit self-caUbrating Analog to Digital and Simple

Switchers.

The Linear Systems Business Unit suppUes the audio/ video and automotive markets with applicationsspecific products including video monitors and consumer audio and other automotive applicators.

Office Automation Division

The Office Automation DivisionCformerly the Imaging Group) manufactures image processors for laserbeam printers, high-speed facsimile machines, scanners, and other imaging peripherals needing embedded control processors. The group produces five imaging processors that range from 3 to 100 mips.

These processors include the NS32CG160 Integrated

System Processor, which is designed for use in midrange office peripherals including page printers and scanners; the NS32FX16 Imaging/Signal Processor, designed for use in fax machines and page printers; and the NS32GX320 high-performance

32-bit Integrated System Processor, a highperformance counterpart of the NS32FX16.

The Interface Business Unit offers both bipolar and

CMOS products. Product offerings include real-time clocks, DRAM memory management, and peripheral drivers using mixed technology. The group offers a range of line drivers and receivers, as well as bus circuits. Several of the transmitter-devices are based on backplane transceiver logic (BTL), a technology invented by National. A set of four BTL-based transceivers and controllers for Futurebus was announced in early 1991.

CLASIC, National's linear ASIC product, employs over ISO cells in its standard linear library, many of which are tailored to specific market segments.

National offers CLASIC capability in bipolar, CMOS, and BiCMOS technologies. CLASIC addresses many mixed-signal applications and design methodologies.

ASIC Division

In the ASIC arena. National services market segments such as ECL gate arrays, mixed-analog and digital products, and BiCMOS gate arrays. Dataquest estimates that National's ASIC sales were $114 million in calendar year 1990. National's ASIC processes include M2CMOS, ASPECT, and its BiCMOS module ABiC.

Standard Products Group

The Standard Products Group consists of four divisions: Analog, Memory and Programmable Products,

Logic, and Discretes. Dataquest estimates that

National is the niimber one monoUthic analog IC

Memory and Programmable Products Division

National's memory products sales worldwide amounted to $172 milUon in calendar year 1990.

National's memory product line is comprised of

EPROMS and EEPROMS. National offers 16Kb to

4Mb CMOS EPROMS ranging in speed firom 90ns to

250ns. EEPROM densities range fiom 256 bit to

4Mb. National also offers fast CMOS TTLIO

SRAMS ranging from 64 bit to 1MB with access times of 20ns to 45ns. The programmable logic products include high-performance TTL and ECL

PALs, as well as high-performance/high-density

CMOS PLDs. In the CMOS market. National produces CMOS GALS as well as the newly released high-density MAPL family.

0011283

©1991 Dataquest Incorporated October—^Reproduction Prohibited

National Semiconductor Corporation

Logic Division

National's digital logic product line spans three technologies bipolar: CMOS, and BiCMOS. National offers appUcation targeted high-performance logic in the following industry recognized standard product famihes: FACTQS, FASTr, BCT, 100k ECL.

Discretes Division

Computing Group and the Standard Products Group.

The company has manufactured products in the aerospace industry for the past twenty years. The company's devices have been used in satellites and lunar probes. National's products have qualified to Class S of the government's MIL-M-38510 specification and have participated in the U.S. Air Force Monitored

Line program (administered by Lockheed Missiles and Space Company), which provides circuits for defense satellite systems. European and Japanese space programs also use National components.

National has discrete manufacturing facilities located in the Philippines and Brazil.

Further Information

Military/Aerospace Division

National's Military/Aerospace Division functions independently of both the Communications and

For further information on the company's business segments, please contact Dataquest's Semiconductor industry service.

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011283

National Semiconductor Corporation

Table 1

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

Five-Year Revenue

Percent Change

1987

1,867.9

NA

1988

1,432.1

(23.33)

Capital Expenditure

Percent of Revenue

94.7

5.07

154.2

10.77

R&D Expenditure

Percent of Revenue

218.9

11.72

225.6

15.75

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

29,200

63.97

(24.6)

NA

37,700

37.99

62.7

(354.88)

Fiscal Year 1990

Quarterly Revenue

Net Income

Qi

442.7

(165.5)

1989

1,647.9

15.07

277.6

16.85

264.8

16.07

32,200

51.18

(23.2)

(137.00)

1990

1,675.0

1.64

182.0

10.87

252.4

15.07

32,700

51.22

(25.0)

7.76

1991

1,701.8

1.60

97.6

5.74

198.6

11.67

29,000

58.68

(151.4)

505.60

Q2

427.4

3.5

Q3

386.8

3.5

Q4

444.9

5.6

Souice: Nadonal Semiconductor Coip.

Annual Reports and Forms 10-K

Dataquest (October 1991)

Table 2

Revenue by Geographic Region (Percent)

Region

North America

Europe

Asia

1987

58.00

25.00

17.00

1988

55.00

24.00

21.00

1989

55.00

23.00

22.00

1990

55.00

21.00

24.00

1991

52.53

23.97

24.50

Source: Nationid SSemiconductor Corp.

Atmual Reports and Fbrms 10-K

Dataquest (October 1991)

0011283

©1991 Dataquest Incorporated October—^Reproduction Prohibited

National Semiconductor Corporation

1990 SALES O F n C E LOCATIONS

Information is not available.

Cadence Design Systems Inc.

National is a member of Cadence's Analog Alliance to develop future CAD systems for analog and mixed-analog/digital circuits.

Valid Logic Systems Inc.

National has an agreement with Valid to jointly develop models for Simple Switcher products.

MANUFACTURING LOCATIONS

Information is not available.

SUBSIDIARIES

Information is not available.

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

1988

Analogy

National and Analogy will jointly develop models for Simple Switcher products.

Cadence Design Systems Inc.

National and Cadence Design Systems signed three agreements, the first of which is a technology partnership involving collaboration on an IC design system. The second is for Cadence to supply software to National's engineering organization for use in National's workstations. The third allows

National to develop and market a fourth-generation

ASIC design automation system using IC design products from Cadence.

SGS-Thomson Microelectronics B.V.

SGS-Thomson and National are codeveloping

ISDN devices.

1991

Hitachi Ltd.

National entered into a broad patent cross-licensing agreement with Hitachi. The agreement is effective for 10 years and includes patents for products and technologies during that time frame, as well as those previously developed.

MERGERS AND ACQUISITIONS

1990

WaferScale Integration (WSI)

National and WSI signed a five-year manufacturing and technology exchange agreement for highspeed, high-density CMOS EPROM products.

Additionally, National has made an investment in

WSI and is licensed to manufacture and market worldwide certain families of WSI's high-density

EPROM products.

1989

Ifitachi Ltd.

Hitachi Data Systems puidiased National Advanced

Systems fiom National Semiconductor.

ICL Inc.

National sold its retail systems unit, Datachedca*

Systems, to ICL.

1989

Acer Inc.

Acer and National developed an enhanced I/O chip for use in 286 AT and 386 AT computers.

Hitachi Ltd.

Hitachi will second-source the FACT line of standard logic.

KEY OFFICERS

Peter J. Sprague

Chairman of the board

Charles E. Sporck

President and chief executive officer from 1966 to

1991, member of the board of directors

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011283

National Semiconductor Corporation

Dr. Gilbert F. Amelio

President and chief executive officer, member of the board of directors

Donald P. Beadle

Senior vice president. International Business

Group

Patrick J. Brockett

Corporate vice president. International Business

Group

Charles P. Carinalli

Executive vice president, Communications and

Computing Group

David S. Dahmen

Treasurer

Raymond J. Farnham

President, Communications and Computing Group

Michael E. Hawkins

Senior vice president. Human Resources

Don Macleod

Senior vice president. Finance, and chief financial officer

Robert B. Mahoney

Controller

R. Thomas Odell

Copresident, Standard Products Group

Jim Owens

Senior vice president. Quality and Strategic Operations

Edgar R. Parker

Senior vice president, Military/Aerospace

Kirk Pond

Copresident, Standard Products Group

George Scalise

Senior vice president. Planning and Development

Richard L. Sanquini

Senior vice president. Business Development

John G. Webb

Senior vice president. General Counsel and secretary

PRINCIPLE INVESTORS

Information is not available.

FOUNDERS

Information is not available.

0011283

©1991 Dataquest Incorporated October—^Reproduction Prohibited

National Semiconductor Corporation

Table 3

Balance Sheet

Fiscal Year Ending in May

(Millions of Dollars)

Balance Sheet

Cash

Receivables

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Preferred Stock

Common Stock

Other Equi^

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

1987

189.1

269.2

270.1

96.5

824.9

633.9

40.6

1,499.4

473.5

35.7

99.1

608.3

0.1

51.3

687.2

152.5

891.1

1,499.4

1988

147.2

401.5

417.0

76.1

1,041.8

683.6

51.6

1,777.0

669.8

37.3

56.3

763.4

0.1

53.9

142.1

142.1

1,013.6

1,777.0

1989

228.0

194.2

218.9

37.3

678.4

696.5

41.2

1,416.1

448.8

52.2

66.6

567.6

0.1

51.3

108.9

108.9

848.5

1990

128.7

211.4

220.0

64.9

625.0

702.2

50.4

1.377.6

401.6

64.2

95.0

560.8

0.1

51.6

73.9

73.9

816.8

1991

192.5

200.3

188.4

31.4

612.6

527.4

50.7

1,190.7

416.5

19.9

96.0

532.4

0.1

52.0

(87.5)

(87.5)

658.3

1,416.1 1,377.6 1,190.7

Source: National Semicondactor Coip.

Ammal Reports and Fonns 10-K

Dataquest (October 1991)

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011283

National Semiconductor Corporation

Table 4

Consolidated Income Statement

Fiscal Year Ending in May

(Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

U.S. Revenue

Non-U.S. Revenue

Cost of Sales

R&D Expense

Restructuring Costs

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividends

Book Value

1987

1,867.9

1,080.9

787.0

1,319.1

218.9

NA

94.7

(9.3)

(0.50)

46.00

(24.6)

91.7

(1.73)

0

9.72

NA = Not available

1988

1,432.1

799.2

623.9

979.9

225.6

NA

154.2

31.7

2.21

35.00

62.7

107.7

0.49

0

9.41

1989

1,647.9

908.1

739.8

1,280.3

264.8

53.6

277.6

(198.5)

(12.05)

34.00

(23.2)

103.1

1990

1,675.0

921.0

754.0

1,251.1

252.4

(8.0)

182.0

(32.4)

(1.93)

NA

(25.0)

102.7

1991

1,701.8

894.0

825.0

1,294.3

198.6

119.6

97.6

(149.0)

(8.76)

NA

(151.4)

103.4

(0.32)

0

8.23

(0.34)

0

7.95

(0.34)

0

6.37

Source:

National Semiconductor Corp.

Annual Reports and Fbnns 10-K

Dataquest (October 1991)

Table 5

Key Financial Ratios

Fiscal Year Ending in May

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue ($K)/Employee

Capital Spending % of Assets

NA = Not available

1987

1.74

168.26

53.14

68.26

(1.64)

(2.76)

(1.32)

11.72

5.07

29,200

63.97

6.32

1988

1.56

175.32

66.08

75.32

3.53

6.19

4.38

15.75

10.77

37,700

37.99

8.68

1989

1990 1991

1.51

166.89

52.89

66.89

1.56

168.66

49.17

68.66

1.47

180.87

63.27

80.87

(1.64)

(2.73)

(1.41)

(1.81)

(3.06)

(1.49)

(12.72)

(23.00)

(8.90)

16.07

16.85

32,200

51.18

19.60

15.07

10.87

32,700

51.22

13.21

11.67

5.74

29,000

58.68

8.20

Source: National Semiconductor Corp.

Annual Reports and Forms 10-K

Dataquest (October 1991)

0011283

©1991 Dataquest Incorporated October—^Reproduction Prohibited

Company Backgrounder by Dataquest

NEC Corporation

33-1 Shiba 5-chome

Minato-ku, Tokyo 108, Japan

Telephone: (03) 454-1111

Fax: (03) 452-6351

Dun's Number: 00-183-6014

Date Founded: July 1899

CORPORATE STRATEGIC DIRECTION

NEC Corporation (known as Nippon Electric Company Ltd. prior to April 1, 1983) was founded in

1899 to manufacture telephone sets and switchboards.

NEC is a leading global supplier of a broad range of communications systems and equipment, computers and industrial electronic systems, electron devices, consumer electronics, and information services. The company bases its activities on the synergistic integration of computers and communications systems. operating results. NEC operates 56 consoUdated subsidiaries, 62 manufacturing plants, and more than 300 sales offices in Japan. Domestic sales in 1990 totaled

¥2.55 trillion, accounting for 74.0 percent of total sales. Overseas, NEC markets its products through a network of 68 subsidiaries and affiliates in 28 countries. Overseas sales increased 15.0 percent in 1990, chmbmg to ¥892.1 billion, or 25.9 percent of total revenue.

Capital expenditure increased 20.3 percent during fiscal 1990 to ¥343.8 biUion, representing 10 percent of total revenue. Research and development expenditure totaled ¥552.9 bUUon for fiscal 1990, representing 16.1 percent of revenue.

NEC divides its operations into five main product groups: Communications Systems and Equipment,

Computers and Industrial Electronic Systems, Electron Devices, Home Electronic Products, and Other

Operations. In 1990, the Computers and Industrial

Electronic Systems group remained the largest in terms of percentage of total revenue, with sales totaling ¥1.5 trilhon (U.S.$9.5 billion), which accounted for 43.7 percent of total revenue. (Percentage changes refer only to ¥ amounts; U.S.$ percentage changes will differ because of fluctuations in Dataquest exchange rates.) This figure was up 13 percent from the group's

1989 revenue of ¥1.3 trillion (U.S.$8.4 billion). The biggest rate of increase in 1990 came from the Other

Operations group, whose 1990 revenue of ¥192.9 billion represented a 23.7 percent increase over the 1989 total of ¥155.9 billion.

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highhghts and revenue by region and distribution channel. Information on revenue by distribution chaimel is not available.

Tables 3 through 5, at the end of this backgroimder, present comprehensive financial information.

BUSINESS SEGMENT STRATEGIC

DIRECTION

NEC reported consolidated revenue for fiscal year ending March 31, 1990, of ¥3.44 trillion, or approximately U.S.$22.2 biUion, up 11.7 percent from fiscal

1989's total of ¥3.08 trillion (U.S.$19.5 billion). Net income rose 32.1 percent from ¥64.48 billion

(U.S.$408.1 miUion) in fiscal 1989 to ¥85.22 billion

(U.S.$539.4 miUion) in fiscal 1990.

Computers and Industrial Electronic Systems

NEC's Computers and Industrial Electronic Systems group manufactures, designs, and markets a diverse product line of mainframe computers, personal computers, small business computers, peripherals, software, and industrial electronics systems. In 1990, sales of computers and industrial electromc systems rose 13.1 percent to ¥1.51 trillion, accounting for

43.8 percent of total sales.

NEC points to the strength of the domestic Japanese economy as a major contributor to its strong

NEC introduced a number of new products designed to strengthen and expand its product line in 1990. In

0011240

©1991 Dataquest Incorporated October—Reproduction Prohibited J

NEC Corpora tiun

February, NEC released the NEC System 3600 series of large-scale maintrame computers, a series featuring bipolar complemeniaiy metal oxide semiconductors

(BiCMOS) to increase processing speed and reduce power consumplioiL NEC also added 12 new models to its popular PC-9800 series. Designed for scientific and engineering calculations, image processing, and

(xmimunication that requires high-speed processing, the PC-H98 features new extended standard architecture, a 32-bit bus architecture offering a faster data transfer rate. OtlKr PC-9800 series addidons include the PC-9801N NOTE laptop and a new addidon to the PC PowerMate series that adopts the cxtendecd industry standard architecture. In the software market,

NEC released SPECDESSIN, a development support system for business-application software that improves efficiency in system design for mainframes. total IC, the MOS Digital, and the MOS Logic markets with respective market shares of 8,9, 10.8, and 11.3 percent

During fiscal 1990, NEC began production of 4Mb

DRAMs at its manufactming facilities in Yamaguchi and Kyushu. Production of 4Mb DRAMs also began in 1990 at NEC's new Hiroshima manufacturing planL Other major accomplishments for the group in

1990 included a joint ventine with AT&T Microelectronics of the United States, involving cooperation on semiconductor technologies such as gate arrays; the development of the world's fastest 4Mb SRAM; the introduction of the company's first 32-bit RISC products, die VR3000 and the VR30I0; the release of a 75mW helium-neon (He-Ne) laser designed for spectral analysis and holography; and the release of a new galhum arsenide prescaler IC for VSATs that responds at frequencies up to 14 GHz.

NEC's PC product line centers around the PC-9800 and PowerMate scries. According to Dataquest estimates, the PC-980] XXXX was the sixth-rated model in the 1990 worldwide desktop computer market, with a market share of 2.09 percent based on 312,000 units shipped. NEC ranked third in the 1990 worldwide desloop market, trailing only IBM Corporation and Apple Computer Inc. NEC garnered 7.85 percent of the market with sales totaling $2.5 biUion. The

PC-9801 N/NV laptop computer was the leading model in the 1S)90 worldvride laptop D/C market, bringing in $319-9 miUion in factory revenue and an

8.11 percent market share. NEC ranked second overall in the 1990 woridwide laptop D/C market with an

18.17 percent market share and $715.6 million in factory revenue. NEC is also active in the computer storage market; Dataquest estimates that NEC ranked sixth in the total rigid disk drive market, with

2.1 miUioQ units shipped in 1990 and a 7.1 percent market share. The company's strongest entry in [he storage inark^t is 8- to 14-inch disk drives; NEC ranked third in the worldwide market in 1990 with a

13.8 percent market share.

Communications Systems and Equipment

Communications systems are an integral part of

NEC's vision of "C&C," the company's corporate strategy of integrating computers and communicatioiL

NEC's product line in the communications industry includes digital switching systems, fiber-optic and radio transmission systems, space electronics, mobUc communications systems, customer premises equipment, and broadcast equipment. The Commuiucations

Systems and Equipment group's revenue increased

9.1 pcrccru in 1990 to ¥875 billion, representing

25.4 percent of total revenue.

Dataquest estimates that NEC ranked fifth in the 1990

North American PBX systems market with 309,400 lines installed and a 6.9 percent market share. NEC also ranked third in 1990 in Segment 5 of the North

American facsimile equipment market with a

7.8 percent market share.

Electron Devices

NEC is active in the production of various memories, microcontrollers, microcomponents, integrated circuits (ICs), gate arrays, and logic devices through its

Electron Devices product group. TTie group's sales increased 7,1 percent lo ¥605,9 billion in 1990, comprising 17.6 percent of total revenue. Dataquest estimates that NEC was the world leader in semiconductor sales m 1990, possessing an 8.4 percent maiicet share based on $4.9 billion in factory revenue. NEC was also the worldwide market leader in 1990 in the

Major contracts m 1990 included an order for an optical submarine cable system, which will link

Japan, Hong Kong, and the Republic of Korea. Two

NEC satcUites were released in 1990 by Japan's

National AeroSpace Development Agency: the

Momo-Ib marine observation satellite and the Fuji 2 amateur radio satellite. NEC also strengthened its

Integrated Services Digital Nctwoii (ISDN) product line in fiscal 1990 with the introduction of two new products: the (34 fs:simile NEFAX D800, (ksigned to meet the needs of ISDN services primarily in domestic financial institudotis and local govenmient, and the Advanced P K Series digital key telephone system.

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011Z40

NEC Corporation

Home Electronics Products

revenue increased 23.7 percent to ¥193 billion, representing 5.6 percent of total revenue.

Home electronics products in NEC's portfoho include color TV receivers and projectors, VCRs, videodisk players, and other small home electronics devices such as electronic diaries. The group's sales increased

16.8 percent to ¥264 biUion in 1990, and accounted for 7.7 percent of total revenue. NEC has been active in the introduction of 4he state-of-the-art broadcast satellite visual audio home entertainment system. In

1990, the PARABOLA series of home-use direct broadcast satellite receiver systems was released, consisting of antennas, tuners, televisions, VCRs, and projection televisions using the new tuning systems.

The VAN information system has continued to gain widespread acceptance both in Japan and internationally. The number of subscribers to the company's

PC-based VAN service doubled during 1990; flie current total is more dian 100,000 subscribers. In 1990,

NEC released the C&C Marine VAN Service, which provides ships at sea with the same communications services offered to onshore subscribers. NEC also released the AF-8410P memory testing system in

1990, which boasts the world's highest test rate of

500 MHz.

Other Operations

Other services offered by NEC include value-added network (VAN) information services, electrical connectors, and measuring and testing systems. The

Other Operations group was NEC's fastest-rising group in terms of revenue in fiscal 1990. The group's

Further Information

For further information about the company's business segments, please contact the appropriate industry service.

0011240

©1991 Dataquest Incorporated October—^Reproduction Prohibited

NEC Corporation

Table 1

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

Five-Year Revenue

Percent Change

1986

13,501

46.24

1987

17,159

27.09

Capital Expenditure

Percent of Revenue

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

1,648

12.20

1,836

13.60

95,796

140.94

153

(42.92)

1,326

7.73

2,629

15.32

101,227

169.51

103

(32.55)

1990 Fiscal Year

Quarterly Revenue

Quarterly Profit

NA = Not available

Q i

N/A

NA

Q2

NA

NA

1988

22,220

29.49

2,016

9.07

3,496

15.73

102,452

216.88

205

98.54

1989

23,510

5.81

- 2,148

9.14

3,657

15.56

104,022

226.01

485

137.07

Q3

NA

NA

Q4

NA

NA

Source: NEC Coipoiation

Annual Rq)orts

Dataquest (October 1991)

1990

22,179

(5.66)

2,176

9.81

3,499

15.78

104,022

213.22

539

11.26

Table 2

Revenue by Geographic Region (Percent)

Region

Japan

All Others

1986

67.00

33.00

1987

72.00

28.00

1988

73.00

27.00

1989

75.00

25.00

1990

74.00

26.00

Source: NEC Cotpoiation

Annual Reports

Dataquest (October 1991)

©1991 Dataquest Incorporated October—Reproduction Prohibited

(X)11240

NEC Corporation

1990 SALES OFFICE LOCATIONS

Japan—More than 300

Overseas—170

MANUFACTURING LOCATIONS

Japan

Ando Electric

Measiuing and testing systems

Anelva Corp.

Semiconductor manufacturing equipment, vacuum equipment

Amitsu Corp.

Communications and electronic equipment, measuring instruments

Anten Kogyo

Antennas, related equipment

Japan Aviation Electronics

Electrical connectors, electronic equipment

Kaijo Denki

Lidustrial marine equipment

NEC Akita

ICs, discrete semiconductor devices

NEC Data Terminals

Computer terminals

NEC Fukui

ICs, discrete semiconductor devices

NEC Fukuoka

ICs

NEC Fiikusbima

Communications equipment, related components

NEC Gunma

Computers, related systems

NEC Hiroshima

4Mb DRAMs

NEC Home Electronics

TVs, home electronic appUances, electronic parts

NEC Hyogo

Communications equipment parts

NEC Ibaraki

Computers, related systems

NEC Kagoshima

Electronic devices

NEC Kansai

ICs, discrete semiconductor devices, electronic devices

NEC Kofu

Development of computers

NEC Kiunamoto

ICs

NEC Kyushu

ICs

NEC Miyagi

Communications equipment, related components

NEC Nagano

Home electrical appliances

NEC Niigata

Computers, related systems

NEC Oita

ICs

NEC Radio & Electronics

Communications equipment, related components

NEC Saitama

Communications equipment, related components

NEC San-ei Instruments

Medical electronic eqmpment, industrial measuring systems

NEC Shizuoka

Communications equipment, computer terminals

NEC Tohoku

Communications equipment, computer terminals

NEC Toyama

Electronic devices

NEC Yamagata

ICs, discrete semiconductor devices

NEC Yamaguchi

ICs

NEC Yonezawa

Communications equipment, computer terminals

Nico Electronics

Special communications equipment, vending machines

Nippon Avionics

Electromc equipment for aircraft

Nippon Electric Glass

CRTs, other glass products

Nippon Electric Industry

Electrical machinery, precision instruments

Nitsuko Ltd.

Communications equipment and parts

Showa Koki Seizo

Optical precision instruments

Takasago Ltd.

Telephones, communications equipment

Tama Electric

Resistors

Tohoku Metal Industries

Magnetic materials

Tokin Corp.

Magnetic materials, electric parts

Toyo Communication Equipment

Communications equipment and parts

0011240

©1991 Dataquest Incoiporated October—Reproduction Prohibited

NEC Corporation

North America

NEC America

Faxes, printers, magnetic disk drives

NEC Electronics

256K DRAMs

NEC Home Electronics

Home electronic products, laptop PCs

NEC Information Systems

Office computers, printers, etc.

NEC Research Institute

R&D center

Europe

NEC Ireland

ICs

NEC Semiconductor, United Kingdom

256K DRAMs

NEC Technologies, United Kingdom

VCRs, printers, car telephones, faxes

Asia/Pacific

NEC Electronics Singapore

Linear ICs, 256K DRAMs

NEC Home Electronics, Malaysia

Home electronic products

NEC Semiconductor, Malaysia

ICs, discrete semiconductor devices

NEC Technologies, Thailand

Telephones

PERNAS NEC Telecommunications, Malaysia

Communications equipment

Siam NEC Company (Thailand)

Color TVs

Taiwan Telecommunications Ind.

Communications equipment

ROW

NEC Australia

ICs

NEC de Mexico

Communications equipment

NEC do Brazil

Telephone switching systems, radio equipment electronics

NEC Home Electronics, Australia

Color TVs

PECOM-NEC, Argentina

Digital electronic switching

Philco Argentina

TVs, radios, etc.

SUBSIDIARIES

Japan

ANELVA Corporation

Ando Electric Company Ltd.

Japan Aviation Electronics Industry Ltd.

NEC Aldta Ltd.

NEC Data Terminals Ltd.

NEC Engineering Ltd.

NEC Factory Engineering Ltd.

NEC Field Service Ltd.

NEC Fukui Ltd.

NEC Fukuoka Ltd.

NEC Fukushima Ltd.

NEC Gunma Ltd.

NEC Home Electronics Ltd.

NEC Hyogo Ltd.

NEC Ibaraki Ltd.

NEC Information Service Ltd.

NEC Kagoshima Ltd.

NEC Kansai Ltd.

NEC Kumamoto Ltd.

NEC Kyushu Ltd.

NEC Miyagi Ltd.

NEC Nagano Ltd.

NEC Niigata Ltd.

NEC Oita Ltd.

NEC Radio & Electronics Ltd.

NEC Saitama Ltd.

NEC San-ei Instruments Ltd.

NEC Shizuoka Ltd.

NEC Software Ltd.

NEC System Integration & Construction Ltd.

NEC Tohoku Ltd.

NEC-Toshiba Information Systems Inc.

NEC Toyama Ltd.

NEC Warehouse and Distribution Ltd.

NEC Yamagata Ltd.

NEC Yamaguchi Ltd.

NEC Yonezawa Ltd.

Nippon Avionics Co. Ltd.

North America

HNSX Supercomputers Inc. (United States)

NEC America Inc. (United States)

NEC Business Communication Systems

(United States)

NEC Canada Inc. (Canada)

NEC Electronics Inc. (United States)

NEC Industries Inc. (United States)

NEC Logistics America Inc. (United States)

NEC Research Institute Inc. (United States)

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011240

NEC Corporation

NEC USA Inc. (United States)

NMI Corporation (United States)

Europe

NEC Business Systems (Italiana) s.r.l. (Italy)

NEC Deutschland GmbH (Germany)

NEC Electronics (Europe) GmbH (Germany)

NEC Electronics (France) S.A. (France)

NEC Electronics (Germany) GmbH (Germany)

NEC Electronics Italiana s.r.l. (Italy)

NEC Electronics (UK) Limited (United Kingdom)

NEC Finland OY (Finland)

NEC France S.A. (France)

NEC Electronics GmbH (West Germany)

NEC Iberia S.A. (Spain)

NEC Industries Netherlands B.V. (Netherlands)

NEC Scandinavia AB (Sweden)

NEC Semiconductors Ireland Limited (Ireland)

NEC Semiconductors (UK) Limited (United

Kingdom)

NEC Technologies (UK) Ltd. (United Kingdom)

NEC (UK) Ltd. (United Kingdom)

ROW

NEC Technologies (Thailand) Co. Ltd. (Thailand)

NEC (Thailand) Ltd. (Thailand)

NEC de Venezuela (Venezuela)

New Zealand Telecommunications Systems Support

Centre Limited (New Zealand)

PERNAS NEC Telecommunications Sdn. Bhd.

(Malaysia)

Siam NEC Co. Ltd. (Thailand)

Taiwan Telecommunication Industry Co. Ltd.

(Taiwan)

Hanjin NEC Telecommunications Engineering Co.

Ltd. (China)

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

1991

AT&T Corporation

The two companies agreed to jointly produce digital car telephone systems tai;geted at Japanese communications companies. In a separate agreement, the two companies also agreed to joindy develop

0.35-micron CMOS technologies.

Home Electronics Co. Ltd. (Thailand)

NEC Argentina S.A. (Argentina)

NEC Australia Pty. Ltd. (Australia)

NEC do Brasil S.A. (Brazil)

NEC Chile S.A. (CMle)

NEC Colombia S.A. (Colombia)

NEC Communication Systems (Thailand) Co. Ltd.

(Thailand)

NEC Customer Services (Australia) Pty. Ltd.

(Australia)

NEC Electronics Hong Kong Limited (Hong Kong)

NEC Electronics Singapore Pte. Ltd. (Singapore)

NEC Electronics Taiwan Limited (Taiwan)

NEC Engineering (Thailand) Co. Ltd. (Thailand)

NEC Home Electronics Australia Pty. Ltd. (Australia)

NEC Home Electronics (Malaysia) Sdn. Bhd.

(Malaysia)

NEC Hong Kong Limited (Hong Kong)

NEC Information Systems Australia Pty. Ltd.

(Australia)

NEC de Mexico, S.A. de C.V. (Mexico)

NEC Nigeria Limited (Nigeria)

NEC Sales (Malaysia) Sdn. Bhd. (Malaysia)

NEC Saudi Arabia Limited (Saudi Arabia)

NEC Semiconductors Sdn. Bhd. (Malaysia)

NEC Singapore Pte. Ltd. (Singapore)

NEC Taiwan Ltd. (Taiwan)

NEC Technologies Hong Kong Limited (Hong Kong)

NEC Technologies Philippines Inc. (Philippines)

Robert Bosch GmbH

The two companies signed an agreement giving

NEC worldwide rights to design, develop, and maiket large-scale integrated circuits that conform with Bosch's Controller Area Network specification.

DEC Corporation

NEC joined DEC'S PowerFrame Synergy

Programme, a union of 23 companies designed to promote industry standards in ASIC design.

IBM Japan Ltd.

NEC and IBM Japan signed an agreement whereby

IBM Japan will market NEC's SX-3 supercomputer.

NTT Corporation

NEC and NTT signed a joint technology agreement dealing with the joint development of a digital portable telephone with a volume of only

195CC.

Otsuka Shokai and Matra Datavision K.K.

NEC and Otsuka Shokai made an agreement with

Matra Datavision K.K., under which NEC and

Otsuka Shokai will market a version of Matra

Datavision's EUCLID-IS 3-D mechanical CAD/

CAM/CAE software.

0011240

©1991 Dataquest Incorporated October—^Reproduction Prohibited

NEC Corporation

Sanyo Corporation

Sanyo entered the UNIX engineering market by signing a technology agreement with NEC that allows Sanyo to sell NEC's EWS4800 Series engineering workstations.

Honeywell Bull

NEC Computer Systems and Honeywell Bull will cooperate in R&D of artificial intelligence.

Valid Logic Systems Inc.

Valid Logic Systems signed a $1 miUion technology development agreement with NEC for the development of analog IC tools.

Corvus Systems

NEC and Corvus Systems are involved in joint development of a CMOS single-chip controller.

Digital Research Incorporated

NEC has a joint-marketing agreement with Digital

Research regarding a CP/M operadng system for the V Series.

1990

Hughes Aircraft Company

Hughes Aircraft hcensed NEC to build C-Nite night-attack fire control equipment for Japanese

Groimd Self Defense Force AH-IS antitank helicopters.

Philips NV

NEC and Philips signed a licensing agreement to manufacture and market chips using Philips I(2)Cbus system technology.

Texas Instruments Inc. (TI)

NEC and TI renewed their five-year semiconductor patent cross-licensing agreement

Oki

NEC has developed a CMOS signal processor

(UPD77C20) with Oki.

Sharp Electronics Corporation

NEC and Sharp agreed to joinfly develop and produce V Series microperipherals. Under the agreement, NEC will provide its original microperipherals to Sharp on an OEM basis, and

Sharp will develop new microprocessors for NEC.

Sharp and Sony

Sharp and Sony have been announced as second sources for the NEC V Series.

1989

MIPS Computer Systems Inc.

MIPS entered into a royalty-bearing technology exchange with Siemens and NEC for its RISC

MPUs. NEC plans to manufacture the R2000A and

R3000 devices and peripherals in Japan and

Europe. Siemens will manufacture in Europe.

MERGERS AND ACQUISITIONS

Infonnation is not available.

1988

Optoelectronics Research Labs

Photodiodes

Summit Microcircuits

64K/256K fast SRAMS

Enabling Technologies Inc.

Enabling Technologies entered into a strategic alUance with NEC Home Electronics (United States) to develop products and explore new technologies in graphics manipulation, animation, and optical media.

British Telecom U.K.

NEC's U.K. subsidiary, NEC Technologies, manufactures jointly developed car telephones for

British Telecom.

KEY OFFICERS

Kenzo Nakamura

Chairman of the board

Tadahiro Sekimoto

President

Yoshiteru Ishii

Senior executive vice president

Koji Maeda

Senior executive vice president

Toshiro Kunihiro

Senior executive vice president

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011240

PRINCIPAL INVESTORS

Sumitomo Life Insurance

Sumitomo IVust & Banking

Sumitomo Bank

Mitsubishi Trust & Banking

Nippon Life Insurance

Dai-ichi Mutual Life Insurance

Sumitomo Marine & Fire Insurance

Toyo Trust «fe Banking

Sumitomo Electric Industries

Sumitomo Corporation

NEC Corporation

0011240

©1991 Dataquest Incorporated October—^Reproduction Prohibited 9

>fEC Corporation

Table 3

Balance Sheet

Fiscal Year Ending March 31

(Millions of LI.S. Dollars)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Long-Term Receivables and Investments

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Common Stock

Additional Paid-in Capital

Other Equity

Retained Earnings

Treasury Stock

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity 14,529.1

1986

822.6

3,635.7

437.0

3,087.9

748.1

8,731.3

1,563.9

3,621.0

612.8

14,529.0

7,987.6

3,579.7

163.7

11,731.0

600.0

953.6

44.9

1,199.7

(0.1)

2,798.2

1987

1,229.0

4,670.8

558.8

4,100.2

1,493.4

12,052.2

1,662.1

4,395.2

834.9

18,944.4

10,162.9

5,052.8

206.4

15,422.1

784.3

1220.0

49.1

1,470.0

(0.8)

3,523.4

1988

1,685.9

5,987.3

404.9

5,243.0

1,436.5

14,757.6

2,101.1

5,490.5

1,077.5

23,426.7

12,878.5

5,480.4

283.9

18,642.8

1,184.9

1716.7

64.0

1,818.8

(0.2)

4,784.4

18,944.7

1989

2,930.5

6,568.7

442.9

5,140.1

889.2

15,971.4

2,247.4

5,787.7

1,154.6

25,161.1

13,234.8

6,431.1

311.9

19,977.8

1,202.8

1842.9

75.1

2,068.9

(6.5)

5.189.7

23,427.0 25,161.0 23,316.4

Source: NEC Corporation

Annual Reports

Dataquest (October 1991)

1990

2,230.8

6,329.5

424.3

4,657.6

516.6

14,158.8

1,970.4

6,061.6

1,125.6

23,316.4

12,408.9

5,478.8

332.6

18,220.3

1,109.8

1,700.9

289.8

1,995.7

(0.1)

5,096.2

10

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011240

NEC Corporation

Table 4

Consolidated Income Statement

Fiscal Year Ending March 31

(Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (U.S.$1:^

0.11

0.05

2.02

178

1986

13,501.3

8,868.7

1,836.2

3,422.9

1,647.7

661.9

4.90

58.00

152.7

1,387

1987

17,159.1

1,1654.5

2,629.2

4,492.3

1,326.2

397.6

2.32

58.00

103.0

1,408

0.07

0.06

2.50

146

1988

22,219.5

15,120.0

3,495.7

5,863.0

2,016.0

566.0

2.55

56.00

204.5

1,469

1989

23,509.5

15,778.2

3,657.4

6,011.2

2,148.3

993.9

4.23

56.00

484.8

1,494

0.14

0.07

3.26

124

0.31

0.07

3.47

133

0.33

0.07

3.35

158

Source: NEC Coiporation

Annual Reports

Dataquest (October 1991)

1990

22,179.2

14,451.6

3,499.3

5,869.9

2,175.8

1,099.6

4.96

54.00

539.4

1,520

Table 5

Key Financial Ratios

Fiscal Year Ending March 31

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Cuixent Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue ($K)/Employee

Capital Spending % of Assets

Exchange Rate (U.S.$1=^

1986

1.09

519.23

285.45

419.23

1.05

4.56

1.13

13.60

12.20

95,796

140.94

11.34

178

1987

1.19

537.67

288.44

437.71

0.54

2.92

0.60

15.32

7.73

101,227

169.51

7.00

146

1988

1.15

489.65

269.18

389.66

0.87

4.27

0.92

1989

1.21

484.83

255.02

384.95

1.93

9.34

2.06

1990

1.14

457.53

243.49

357.53

2,31

10.58

2.43

15.73

9.07

102,452

216.88

8.61

124

15.56

9.14

104,022

226.01

8.54

133

15.78

9.81

104,022

213.22

9,33

158

Source: NEC Corporation

Annual Reports

Dataquest (October 1991)

11

(X)11240

©1991 Dataquest Incorporated October—^Reproduction Prohibited

Company Backgrounder by Dataquest

N.V. Philips Gloeilampenfabrieken

Groenewoudseweg 1

5621 BA Eindhoven

The Netherlands

Telephone: (31-40) 786022

Fax: (31-40) 785486

Dun's Number: 40-455-3240

Date Founded: 1891

CORPORATE STRATEGIC DIRECTION

N.V. Philips Gloeilampenfabrieken (Philips), incorporated in 1912, is a widely diversified multinatioiial group of companies, engaged primarily in the manufacturing and distribution of electronic and electrical products, systems, and equipment. The legal entity, N.V. Gcmeenschappehjk Bezit van Aandeelcn

Phihps Gloeilampenfabrieken (Philips N.V), operates solely as a holding company for share capital of N.V

Phihps Gloeilampenfabrieken (Piuhps), of which it holds 99.99 percent Phihps Industries functions as the primary holding conqiany for the company's nimieious national organizations, which are wholly owned subsidiaries operating in over 60 cotmtries.

These subsidiaries' businesses vary from simple marketing organizations to fiilly integrated manufacturing and marketing concerns. PhiUps' product activities are grouped into five product sectors: Lighting, Constmier Plx>ducts, Professional Products and Systems,

Components, and Miscellaneous. to lasting profitability and in:]|)roving its financial structure. As part of this revitaUzation process, drastic restructuring measures were taken to put Ptulips'

Components product sector and Information Systems

Division on a sound footing. At the same time, it was decided to launch a worldwide campaign to improve efficiency in all organizational units. This efficiency drive is aimed at achieving substantial cost reductions within a short period of time and at promoting a permanent mindset toward profit and costs. The campaign is also aimed at intensifying quality and customer orientation.

The measures to turn aroimd die Coniponents product sector and the Information Systems Division, in addition to the woridwide campaign to improve efficiency, will result in a reduction of 45,000 to 55,000 jobs between September 1990 and the end of 1991. In addition, since the end of 1990, Phihps has been reappraising the organization and composition of the businesses in which the company operates. This portfoUo analysis will result in the divestment, closure, or drastic reorganization of some units, while in odier cases it will give rise to a strengthening and expansion of operations or the creation of alliances.

Fiscal year 1990 was a year of fundamental reappraisal for Philips. Persistently large losses on information systems and integrated circuits had been causing a drain on the company's equity and even threatening the continuation of healthy growth in other sectors. In Europe and the United States, the con^any's Lighting product sector had to contend with intense price competition, which could be only partly offset by improvements in efficiency. Furthermore, exchange rate movements and appreciable rises in interest rates had an adverse impact on both

Philips' earnings and its competitiveness.

A total of F 4.6 billion (US$2.5 billion) was charged against operating income in fiscal 1990 for the implementation of the whole revitalization program.

(Percentage changes refer only to F amounts; US$ percentage changes will differ because of flucmations in Dataquest exchange rates.) As a result, the year was concluded with a net loss of F 4.24 billion

(US$2.34 biUion).

Against titiis backdrop, Phihps decided that the measures taken in the past few years to enhance the company's maneuverability should he radically intensified and speeded up. A revitalization process was started with the aim of rapidly restoring the company

In fiscal 1990, net revenue decreased 3 percent to

F 55.76 bilKon (US$30.81 bilHon) fiom F 57.22 bilhon (US$26.87 billion) in fiscal 1989. However, die

1989 sales figure included Phihps* defense businesses in Europe, which have since been disposed of. A

00X1336

©1991 Dataquest Incorporated October—Reproduction Prohibited

N.V. Philips Gloeilampenfabrieken number of other, smaller changes in consolidations took place as a result of the disposal and acquisition of other businesses. Disregarding the effects of these changes and of exchange rate movements, net sales on a comparable basis increased 5 percent in fiscal 1990.

Philips remains the world leader in lightLng and color picture tubes and is second in size only to Matsushita, of which the company owns 35 percent, in consumer electronics revenue. On an overall basis, Philips* main revenue comes from the European market, which has accounted for approximately 60 percent of the company's total sales over the past five years.

The company's R&D expense decreased 4 percent to

F 4.38 billion (US$2.42 billion) in fiscal 1990 firom

F 4.56 billion (US$2.14 billion) in fiscal 1989, but remained at approximately 8 percent of net revenue.

This decline in R&D expenditure was entirely due to the divestment of Philips' defense businesses.

Approximately 35,000 employees are engaged in product development and in the development of production methods and equipment The responsibility for the development of products and production methods lies withJba each individual product divlsioiL

The divisions have development laboratories at their disposal in 25 countries throughout the world.

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highlights and revenue by region. Infomiation on revenue by distribution channel is not available. Tables 3 through 7, at the end of this backgrounder, present comprehensive financial informatioiL

Communications Systems

The company's Commtmications Systems products include private branch exchanges and key telephone systems, cable transmission and network access equipment, switching and netwoik management systems, radio trunk transmissions and subscriber access systems, copper and fiber-optic cables, and optical fiber. The company also produces car and cordless telephones, mobile radio truncated networks, and wide area paging systems.

In September 1990, AT&T repurchased Philips' 15 percent stake in AT&T Network Systems Ihtemational B.V., which was founded in 1983 as AT&T-

Phihps Telecommunications. At its founding. Philips held 50 percent of the company, which makes and markets AT&T switches overseas. Philips then cut back its stake to 40 percent, and later transferred another 25 percent back to AT&T.

Information Systems

The company's Information Systems products include personal computers and workstations, doctmient handling systems, optical media, peripherals, and dictation systems. In 1990, sales in this division declined as a result of sharp falls in prices affecting virtually all information systems products. As a result of reduced sales and low margins, appreciable losses were incurred in this division. According to Philips, radical restructuring measures are being carried out to remedy this situatioa

BUSINESS S E G M E N T STRATEGIC

D I R E C T I O N

Professional Products and Systems Division

Philips launched a number of new personal computer models in 1990 to help die company reach its new goals, which include a 5 percent market share by

1993. The company created two groups of PC products, one aimed at small businesses and home users and the other targeted at systems integrators,

VARs, and corporate businesses. The company's new personal computers range from an entry-level

12-MHz 286-based system to a 25-MHz 486-based rc that features 4MB RAM and a hard disk drive expandable to 650MB.

The Professional Products and Systems Division comprises Communications Systems, Information

Systems, Medical Systems, Industrial and Electro-

Acoustic Systems, and Defense and Control Systems, all serving the professional market Sales in the

Professional Products and Systems Division decreased 17 percent to F 13.06 billion (US$7.21 bilhon) in 1990 and accounted for 23.4 percent of

Philips' total revenue.

During 1990, Philips introduced its first portable personal computer, the Magnavox Metalis/286, which has a 20MB hard drive and an internal 1.44MB

3.5-inch floppy drive. Targeted at the nonstop user, the Metalis/286 features battery life of up to four hours per charge, with full recharge in imder four hours. It also features 1MB of RAM (expandable to

8MB), and is equipped with a backlit video graphics array (VGA) monitor.

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011336

N.V. Philips Gloeilampenfabrielten

The company's image processing system, Megadoc, is based on optical recording. During mid-1990,

Philips introduced the Megadoc 10, a PC-based version of Megadoc that can be networked but will be offered mainly as a standalone system. The Megadoc

10 runs unders MS-DOS, and conforms to UNIX

System V.4 and Posix, enabling users to integrate existing software and add other appUcations more easily.

During 1990, significant steps were taken to reduce

Philips' defense activities, lite company disposed of a major portion of its Western European defense business to the French cott^any Thomson-CSF, selling an 80 percent interest in Philips' Dutch subsidiary

HoUandse Signaalapparaten B.V., along with that subsidiary's interest in the Belgium company MBLE

Defense, and a 99 percent stake in Philips' French company TRT Defense. In addition, PhUips sold its

British defense businesses to Thom-EMI, and disposed of its German defense activities via a management buy-out

Smart cards, which are optical media products, are memory components that are the size of a credit card and contain an integrated circuit Philips currently markets these cards for personal, business, and industrial applications. Sales have been slow for these cards because of cost/benefit factors.

Components Division

Medical Systems

The company's Medical Systems activities focus primarily on the production of diagnostic imaging systems, such as equipment based on X-radiation

(including computer tomography), ultrasound, and magnetic resonance. Philips also produces systems for radiation therapy and provides consultancy services on the operational structure within hospitsds and clinics. The company's medical products are sold to hospitals, other institutions, and governments directly and, in certain countries, through agents. The market for medical systems is subject to rapid change due to developments in technology and diagnostic effectiveness.

Industrial and Electro-Acoustic Systems

The Industrial and Electro-Acoustic Systems Division concentrates on the production and marketing of products and systems for applications in research, industry, business, and government A large range of electronic test and measuring equipment is produced, including oscilloscopes, logic analyzers, and automatic test equipment.

The Philips Components Division is a supplier of components and subassemblies for both its own products and outside parties. Philips produces a broad range of components such as integrated circuits, discrete semiconductors, passive components, liquid crystal displays, and magnetic products. Component sales accoimted for 14.6 percent of total net sales in

1990. Sales from this division fell 3.7 percent to

F 8.16 billion (US$4.51 billion) in fiscal 1990 from

F 8.74 billion (US$4.10 billion) in fiscal 1989.

Semiconductors

In early 1991, Philips removed its semiconductor activities from its Components Products Division to form the Semiconductor Products Division, which win handle aU of Hiilips' IC and discrete semiconductor business. The new division will also encompass Philips Components-Signetics, a subsidiary located in Svmnyvale, California. According to

Philips, the move will allow the company to react better to the rapid changes in the semiconductor market Under the new structure, approximately onethird of Philips' employees in its Components

Products Division will work in the Semiconductor

Products Division, with the remainder (approximately

50,000) working in the scaled-down Components

Product Division.

Defense and Control Systems

The Defense and Control Systems Division develops and produces electronic systems, subsystems, equipment and strategic components for shipbome, landbased, and airborne military applications and civil derivatives. Products manufactured by this division include radars, optoelectronics, sonars, and electronic warfare equipment, including electronic systems measures, electronic countenneasures, electronic counter countetmeasures, and chaff/flare launchers.

Philips considers its semiconductors to be the heart of its electronics product business. The company's general IC goal is to strengthen its position as an applications-oriented suppUer to the world markets.

According to Dataquest Philips moved up one place to rank as the ninth-largest vendor in the worldwide semiconductor market in 1990, based on estimated factory revenue of $2.01 billion. Net sales for the company increased 17 percent while as a whole, the semiconductor market grew at only 2 percent in

0011336

©1991 Dataquest Incorporated October—^Reproduction Prohibited

N.V. Philips Gloeilampenfabrieken calendar 1990. Among European semiconductor companies, Philips continued to be the top-ranked manufacturer, with the company's main competition in this region coming from SGS-Thomson Microelectronics B.V. and Siemens AG.

In the worldwide analog integrated circuit market,

Philips jumped from fourth place to the leading position, holding a 6.2 percent market share based on estimated factory revenue of $653 miUion.

Video Products

Video products include television sets (including receivers equipped for Teletext and stereo sound), video recorders, and camera recorders (cameras with a built-in video recorder), very high resolution monitors, and other displays. Products in this sector are sold primarily to the OEM market Philips brand names in the United States include Philips, Magnavox, Sylvania, and Philco.

As part of the company's restructuring, an enq)hasis was placed on reducing losses in the Components

Divisioa Along these lines. Philips pulled out of static RAM (SRAM) development and pilot production as one of several cost-cutting measures. The company also dropped out of the $5 billion Joint

European Submicron Silicon (JESSI) program, a consortium of European chip vendors. Other cost-cutdng actions included the closing of PhiUps' IC Advanced

Development and Manufacturing center (located in

Eindhoven) and concentration of advanced application-specific integrated circuit (ASIC) development in Hamburg, Germany.

Home Office Equipment

Home office equipment products include personal computers, videotex terminals, and other peripheral equipment, which are marketed specifically toward the home market. For personal computers for business applications, see Communications Systems.

Philips' Compact Disk Interactive (CD-I) system is an interactive, fully digital, multimedia system that allows audio, video, text, and graphics to be stored and integrated on a single compact disk. CD-I is schediiled to be introduced in the consumer market in the United States and Japan during late 1991 and in

Europe in 1992.

Passive Components

PolyGram

The company is the world's leading supplier of passive components with product lines consisting of a variety of capacitors and resistors in both leaded and

SMD versions. A wide range of crystals and oscillators is available for professional, industrial, and consumer equipment

Another division of the Consumer Products Division is PolyGram Records Inc., which engages primarily in the acquisition, production, marketing, and distribution of recorded music.

Domestic Appliances and Personal Care

Consumer Products Division

The Consumer Products Division includes the consumer electronics product division, PolyGram

Records division, domestic appliances, and personal care products. Major categories in consumer electronics are audio, video, and home office eqmpment

Sales in 1990 in the Consumer Products Division accounted for 45.5 percent of the total net sales. Sales increased 8.0 percent to F 25.40 billion (US$14.03 billion) in fiscal 1990 fit)m F 23.58 billion (US$11.07 billion) in fiscal 1989.

The domestic appliances and personal care division includes home comfort and kitchen appliances, shavers, and other personal care products. Philips' main product of this division is Philishave, based on rotary shaving technology. Along with the other personal care products and domestic appliances,

Philishave is mariceted under the Norelco brand in the

United States.

Lighting Division

Audio Products

Audio products include portable radios, radio receivers, car radios, receivers, amplifiers, tuners, cassette recorders, turntables, and compact disc systems. Compact disc players and changers are still the fastest-growing products in the consiuner electronic market

The company has been in the lighting business since its founding in 1891. The Lighting Division's products serve a broad range of apphcations, including general hghting service lamps, gas-discharge and special lamps, fixtures, special products, and batteries. Net sales of the Lighting Division accounted for

12.6 percent of total net sales, or F 7.03 billion

(US$3.88 billion). Lighting sales decreased 7 percent in fiscal 1990.

©1991 Dataquest Incorporated October—Reproduction Prohibited

00U336

N.V. Philips Gloeilampenfabrieken

Miscellaneous

Miscellaneous business activities, which are outside die company's basic range of products, include ancillary activities obtained as part of other acquisitions.

Included in this sector are the operations in major domestic appliances in some countries that have not been transferred to Philips' joint venture with

Whirlpool, begun in 1989. During 1990, Philips divested two of its larger U.S. subsidiaries incorporated in the Miscellaneous sector. Anchor Advanced

Products Inc. and Genie Manufacturing Inc. Miscellaneous sales accounted for 3.8 percent of total net revenue in 1990. Sales in this division grew

8.0 percent to F 2.12 bilUon (US$1.17 billion).

Further Information

For further information about the company's business segments, please contact the appropriate Dataquest industry service.

0011336

©1991 Dataquest Incorporated October—Reproduction Prohibited

N.V. Philips Gloeilampenfabrieken

Table 1

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

Rve-Year Revenue

Percent Change

1986

22,464.1

1987

25,968.0

15.60

Capital Expenditure

Percent of Revenue

1,904.9

8.48

2,342.9

9.02

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

Exchange Rate (US$1=F)

1,706.9

7.60

343,800

65.34

414.3

F 2.45

2,149.8

8.28

336,700

77.12

403.0

(2.73)

F 2.03

1988

28,322.7

9.07

2,093.4

7.39

2,334.8

8.24

310,300

91.28

533.3

32.36

F 1.98

1989

26,865.7

(5.14)

1,483.6

5.52

2,139.4

7.96

304,800

88.14

645.1

20.95

F 2.13

1990

30,808.8

14.68

1,569.1

5.09

2,418.8

7.85

272,800

112.94

(2,342.5)

(463.15)

F 1.81

1990 Fiscal Year

Quarterly Revenue

Quarterly Profit

NA = Not available

Qi

7,080.7

185.6

Q2

7,480.1

20.4

Q3

7,247.0

(1,192.8)

Q4

9,001.1

(1,355.8)

SoDice: N.V. Philips Gloeilaiiq)eiifabrieken

Animal Reports and Foims 10-K

Dataquest (October 1991)

Table 2

Revenue by Geographic Region (Percent)

Region

Europe

North America

Asia/Pacific

ROW

1986

59,20

24.30

7.60

8.90

1987

61.40

22.40

8.60

7.60

1988

61.30

22.20

8.70

7.80

1989

57.30

24.10

10.00

8.60

1990

60.90

21.20

10.50

7.40

Source: N.V. Fhilqis Gloeilampenfalsieken

Annual Reports and Forms 10-K

Dataquest (October 1991)

©1991 Dataquest Incorporated October—Repioduction Prohibited

0011336

N.V. Philips Gloeilampenfabrieken

1990 SALES OFFICE LOCATIONS

Information is not available.

MANUFACTURING LOCATIONS

North America

Albuquerque, New Mexico

Wafer fabrication of MOS ICs

Orem, Utah

Wafer fabrication of bipolar ICs, assembly and testing of logic and bipolar memory products

Riviera Beach, Florida

Passive components, discrete semiconductors

Sunnyvale, California

Wafer fabrication, MOS and bipolar ICs

United States and Canada

AH principal products

ROW

Africa

Lighting, consumer electronics, professional products and systems

Austraha and New Zealand

Lighting, professional products, systems, components

Bangkok, Thailand

Assembly and testiag

Hong Kong

Transistors, diodes

Kao-Hsixmg, Taiwan

ICs

Latin America

AJl principal products

Manila, Philippines

Transistors, diodes, optoelectronic products

Recife, Brazil

ICs

Sao Paulo, Brazil

Discrete devices

Seoul, South Korea

Assembly and testing

Europe

Barcelona, Spain

Diodes, transistors

Caen, France

Bipolar digital, bipolar analog, and consumer ICs; discrete devices, power transistors, optoelectronic products

Hamburg, Germany

NMOS microprocessors, controllers, memories, bipolar analog consumer ICs, small-signal transistors, varicap diodes

Netherlands

AH principal products

Nijmegen, Netherlands

CMOS devices

Sittard, Netherlands

Not available

Southampton, United Kingdom

NMOS ROMs, dedicated consumer logic

Stadskanaal, Netherlands

Diodes

Stockport, United Kingdom

Power transistors, power diodes

Zurich, Switzerlan4

ICs

Japan

Tokyo, Japan

Testing

SUBSIDIARIES

North America

North American Philips Corporation (United States)

Philips Canada Ltd. (Canada)

Philips Components-Signetics (United States)

PolyGram Records Inc. (United States)

Europe

Bang & Olufeen A/S (Denmark)

Compagnie Francaise Philips (France)

Europe Mij Voor Fabricage en Verkoop Van

Gloeilampcnonderdelen CE.M,G.O.) (Belgium)

Giundig Aktiengesellschaft (Gennany)

Ibcrtica de Alumbrado S.A, (Spain)

Nederlands Philips Bedrijven B.V. (Netherlands)

Norsk Atkieselskap Philips (Norway)

Osterreichische Philips Industrie GesmbH (Austria)

Oy Philips AB (Finland)

PhiUps AG (Switzerland)

Philips and Du Pont Optical Company (Netherlands)

PhiUps Beteihgungs AG (Switzerland)

Philips Communication Systems International B.V.

(Netherlands)

Philips Consumer Electronics International B.V.

(Netherlands)

Philips Danmark A/S (Denmark)

0011336

©1991 Dataquest Incorporated October—^Reproduction Prohibited

N.V. Philips Gloeilampenfabrieken

Philips Electronics Ireland Limited (Ireland)

PhiUps Export B.V. (Netherlands)

PhiUps GmbH (Germany)

PhiUps Iberica S.A.E. (Spain)

Philips Industrial S.A. Hellenique de Produits

Electrotechniques et Electroniques (Greece)

Philips Information Systems International B.V.

(Netherlands)

PhiUps International B.V. (Netherlands)

PhiUps International Finance S.A. (Luxembourg)

PhiUps Lighting Hellas Commercial and Industrial

S.A. (Greece)

PhiUps Lighting Holding B.V. (Netherlands)

PhiUps Luxembourg Consumer Products

(Luxemboiu-g)

PhiUps Luxembourg Professional Systems

(Luxembourg)

PhiUps Matsushita Battery Corporation (Belgium)

Philips Medical Systems International B.V.

(Netherlands)

PhiUps Norden Aktiebolag (Sweden)

PhiUps Portuguesa S.A. (Portugal)

PhiUps S.A. (Belgium)

PhiUps S.A. HeUenique Commerciale de Produits

Electrotechniques (Greece)

PhiUps Sistemi MedicaU S.p.A. (Italy)

PhiUps Societa per Azioni (Italy)

PhiUps Systemes Medicaux (France)

PhiUps U.K. Limited (United Kingdom)

PolyGram GmbH (Germany)

PolyGram Leisure Ltd. (United Kingdom)

PolyGram N.V. (Netherlands)

PolyGram S.A. (France)

Ttirk PhiUps Aydinlatma Sanayi ve Hcaret Anonim

Sirketi (Turkey)

Turk PhiUps Sanayi Anonim Siiketi (Turkey)

Tuik PhiUps Ticaret Anonim Siiketi (Turkey)

Whirlpool International B.V. (Netherlands)

Japan

Japan New Media Systems Inc. (Japan)

Marantz Japan Inc. (Japan)

Matsushita Electronics Corporation (Japan)

PhiUps Japan Ltd. (Japan)

PNN Corporation (Japan)

ROW

Associated Electronic Products (Nigeria) Limited

(Nigeria)

Audio Electronics Sdn. Bhd. (Malaysia)

Bangladesh Electrical Industries Limited

(Bangladesh)

Bangladesh Lamps Limited (Bangladesh)

Beijing PhiUps Audio/Video Corporation (China)

Car Audio Electronics (China) Company Limited

(China)

Electrical Lamp Manufacturers Thailand Limited

(Thailand)

Elinthai Limited (Thailand)

El Nasr Company for Electrical and Electronic

Apparatus (Egypt)

Hua Fei Colour Display Systems Company Ltd.

(China)

Inbraphil-Industrias Brasilerras PhiUps Ltda. (Brazil)

Industria de Productos Electricos Centro-Americana,

S.A. de C.V (El Salvador)

Industrias BoUvianas PhiUps S.A. (BoUvia)

Industrias PhiUps de Colombia S.A. (Colombia)

Industrias PhiUps del Uruguay S.A. (Uruguay)

Industrias Venezolanas PhiUps S.A. (Venezuela)

Malaysian Lamps Sendirian Berhad (Malaysia)

Manufacture Nationale pour la ReMgeration et

TElectronique (Morocco)

PEC Investments Limited (South Afirica)

Peico Electronics & Electricals Limited (India)

PhiUps AntiUana N. V. (Netherlands Antilles)

PhiUps Argentina S.A. de Lamparas Electricas y

Radio (Argentina)

PhiUps Bangladesh Limited (Bangladesh)

PhiUps Chilena S.A. (Chile)

PhiUps China Hong Kong Group Company Limited

(Hong Kong)

PhiUps Components (PhiUppines) Inc. (PhiUppines)

PhiUps del Paraguay S.A. (Paraguay)

PhiUps do BrasU Ltda. (Brazil)

PhiUps Ecuador C.A. (Ecuador)

PhiUps Electrical Company of Pakistan Limited

(Pakistan)

PhiUps Electrical Company of Thailand Limited

(ThaUand)

PhiUps Electrical Industries of Pakistan Limited

(Pakistan)

PhiUps Electrical Lamps Inc. (PhiUppines)

PhiUps Electrical (Private) Limited (Zimbabwe)

PhiUps Electrical Zambia Ltd. (Zambia)

PhiUps Electric Lamps (E.A.) Limited (Kenya)

PhiUps Electronic Building JBements Industries Ltd.

(Taiwan)

PhiUps Electronics Holdings Limited (South Afirica)

PhiUps Electronics Industries Ltd. (Taiwan)

PhiUps Electronics Ltd. (South Korea)

PhiUps Electronics South-East Asia Holding B.V.

(China)

PhiUps Ethiopia (Ethiopia)

PhiUps Hong Kong Limited (Hong Kong)

PhiUps Industrial Development Inc. (PhiUppines)

PhiUps Industries Holdings Limited (AustraUa)

«

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011336

N.V. Philips Gloeilampenfabrieken

Philips Industries Ltd. (South Korea)

Philips Iran Ltd. (Iran)

Philips (Kenya) Limited (Kenya)

Philips Lighting Taiwan, Ltd. (Taiwan)

Philips Malaysia Sdn. Berhad (Malaysia)

Philips Maroc (Morocco)

Philips Mexicana, S.A. de C.V, (Mexico)

Philips Midden Oosten B.V. (Egypt)

Philips Midden Oosten B.V. (Iraq)

Philips Midden Oosten B.V. (United Arab Emirates)

Philips New Zealand Limited (New 2fealand)

Philips Peruana S.A. (Peru)

Philips Semiconductor Corporation of Shanghai

(China)

Philips Singapore Private Limited (Singapore)

Philips Taiwan Ltd. (Taiwan)

P.T. Philips Development Corporation (Indonesia)

P.T. Philips-Ralin Electronics (Indonesia)

Shenzhen Shen Fei Laser Optical Systems Company

Limited (China)

Shenzhen Shen Fei Plastics and Metalware Company

Limited (China)

Signetics Korea Co. Ltd. (South Korea)

Signetics Thailand Co. Ltd. (Thailand)

Taiwan Lighting Industries Co. Ltd. (Taiwan)

Taiwan Semiconductor Manufacturing Company

Limited (Taiwan)

Thai Lamps Company Limited (Thailand)

Yangtze Optical Fibre and Cable Company Ltd.

(China)

ORIGIN, a joint venture with the Dutch software company BSO/Beheer. That same year, the two companies formed a systems integration joint venture, called BSO/Pass International.

European Development Center

Philips joined the European Development Center, which develops and supports computer-aided engineering and design tools and technology.

Fujitsu Microelectronics

A second-source and joint development agreement was made for local area network circuits.

Matsushita Electric Industrial Co. Ltd.

A joint venture was formed to develop, control, and maintain a chip standard for domestic audio and video systems.

Motorola Incorporated

Philips and Motorola signed an OEM agreement under which Philips will add Motorola's reduced instruction-set computing systems to its product line.

Silicon Systems Inc. (SSI)

Philips licensed its QUBIC BiCMOS process to

SSI to serve as the basis for mixed signal designs.

As part of the agreement, both companies have access to the o&er's foundry to augment capacity availability as QUBIC grows in acceptance.

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

Teikoka Tsishin Kogyo

The two companies formed a joint venture for the manufacture of integrated control panels for consumer electronics equipment

1991

Matsushita Electric Industrial Co. Ltd. and Sony

Corporation

Tlie three companies formed a consortiimi in Japan to laimch and promote Philips' Compact Disk

Interactive (CD-I) multimedia technology. The company will be called CD-I Consortium JapaiL

Sun Microsystems Inc.

Philips and Sun signed an agreement that will allow Philips to resell Sun's complete line of

SPARCstations.

Tesla Strasnice and Hloubetin

Philips and Tesla, a Czechoslovakian electronics company, signed a cooperation agreement to improve the public telecommunications network in

Czechoslovalda. The agreement wiU primarily focus on digital signal transmission equipment, which will facilitate multiple iise of cable routes already laid.

Texas Instruments Incorporated (TI)

TI and Philips entered into a joint sourcing agreement for the ABT high-performance bus interface logic family.

1990

BSO/Beheer B.V.

Philips service activities in the automation and information processing field were transferred to

VEB Kombinat Robotron

An agreement was reached concerning industrial measiiring systems.

0011336

©1991 Dataquest Incorporated October—Reproduction Prohibited

N.V. Philips Gloeilampenfabrieken

1989

Catalyst Semiconductor Inc.

Philips signed an agreement with Catalyst to supply Catalyst with its 12C protocol.

ES2

Philips adopted E-beam direct-wire technology for

ASICs; ES2 adopted a Philips' CMOS process.

Customers can have devices manufactured by either company.

Motorola Incorporated

An agreement was made to develop very large scale integration (VLSI) integrated circuits.

Hitachi Ltd.

Hitachi will produce and sell Philips' HD68562 and HD64941 LSI chips.

Seeq Technology Inc.

The companies signed a five-year agreement calling for Philips to second-source and codevelop the

Seeq 512Kb and 1Mb flash EPROMs. Seeq will get an alternate source for its flash EEPROM and foundry support for its 64Kb and 256Kb

EEPROMs.

Intel Corporation

The companies made an agreement giving Philips access to Intel's CHMOS process and products and

Intel access to Philips' serial buses.

Intel Corporation

Philips was chosen to second-source Intel's 8095

16-bit MCU and use Intel's 256K EPROM technology.

Sun Microsystems Inc.

The two companies signed a licensing agreement that will allow Philips components to design and market 32-bit RISC microprocessors based on

Sun's SPARC architecture.

Synercom Technology

The two companies have entered into an OEM agreement for Synercom's INFORMAP and related application software.

Motorola Incorporated

Philips was chosen to second-source Motorola's

68010 16-bit MPU.

Plessey Co. pic

The companies are manufacturing microchips for satellite broadcasting receiver systems.

Whirlpool

Philips and Whirlpool entered into a joint venture agreement concerning major domestic appliances.

1988

R. R. Donnelly & Sons and Toppan Printing

Co. Ltd.

The companies agreed to develop software for interactive disks.

Robert Bosch GmbH

The companies agreed to develop a standardized pan-European automobile telephone system.

ASM Lithography

ASM Lithography agreed to manufacture lithography equipment used to produce semiconductors for

Philips.

Siemens AG

Siemens agreed to furnish Philips with submicron technology.

AT&T

AT&T agreed to develop, manufacture, and sell telecommunications network products for Philips.

SMH

The companies completed a CMOS wafer-fab production agreement

Canon Incorporated, Data General Corporation,

Hewlett-Packard Company, Prime Computer

Incorporated, and Unisys Corporation

Philips and these companies formed a consortiiun to establish a common way to implement objectoriented software technology across a network of computers and servers.

Taiwan Semiconductor Manufacturing Co.

(TSMC)

TSMC agreed to manufacture customer-^ecific

ICs for Philips.

Texas Instruments Incorporated

TI made an agreement with Philips to develop and manufacture an advanced CMOS logic family.

E.I. du Pont de Nemours and Sony Corporation

The companies agreed to set CD-WORM standards.

Vitelec

•\^telec Ucensed Philips' process technology so tiiat

N^telec could produce CMOS SRAMs for use, license, and sale for both companies.

10

©1991 Dataquest Incorporated October—Reproduction Prohibited

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N.V. Philips Gloeilampenfabrieken

VLSI Technology Inc.

The companies made an agreement covering CAD design software, foundry services, cell libraries, and gate arrays under which VLSI would provide

IC design software and Philips would provide foundry services.

Jan D. Timmer

President, chairman of the board, chairman of

Group Management (GMC)

W. Huisman

Chairman, Communication Systems Division

Yangtze Optical Fiber Cable Company

The companies will manufacture and sell optical fiber cable in China.

W. de Kleuver

Chairman of Components Division, member of

GMC

Thierry Meyer

Chairman of Consumer Electronics Division, member of GMC

MERGERS AND ACQUISITIONS

1991

E.I. Du Pont de Nemours and Company

Philips acquired Du Font's interest in Philips & Du

Pont Optical Company, a joint venture that was created in 1986 for the manufacture of optical disks.

J.C. Tollenaar

Chairman, Domestic Appliances and Personal Care

Division

F.A. de Bruijne

Chairman, Industrial Electronics Division

L.G. Nyberg

Chairman, Information Systems Division

1990

E. Kloster

Chairman of Lighting Division, member of GMC

H. van Bree

Chairman, Medical Systems Divison

Bang & Olufsen A/S

Philips acquired a 25 percent interest in Bang &

Olufsen, a Danish conq)any that operates mainly at the top end of the audio and video market

Marantz Japan

Philips acquired the majority shareholding in

Marantz Japan and at the same time acquired rights to use the Marantz brand name in North America.

H.W. Hagmeister

Chairman, Semiconductors Division

A.M.I. Levy

Chairman, Polygram Records Division

Robert Bosch Group

Philips' interest in the Broadcast Television Systems joint venture with Robert Bosch for the production of television studio equipment was increased firom 50 percent to 75 percent.

PRINCIPAL INVESTORS

Information is not available.

1989

Taiwan Semiconductor Manufacturing Co.

(TSMC)

Philips exercised its option to acquire 51 percent of

TSMC's shares.

FOUNDERS

Gerard Philips

KEY OFFICERS

0011336

©1991 Dataquest Incorporated October—^Reproduction Prohibited

11

N.V. Philips Gloeiiampenfabrieken

Table 3

Balance Sheet

Fiscal Year Ending in December

(Millions of U.S. Dollars)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Common Stock

Odier Equity

Currency Adjustment

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

Exchange Rate (US$1=F)

1986

453.1

4,956.7

69.8

5,245.3

428.2

11,153.1

7,447.8

2,064.5

20,665.3

7,531.8

3,689.4

2,971.4

14,192.7

1,612.7

3,257.6

(1,723.0)

3,325.7

6,472.7

1987

712.3

5,870.0

175.9

5,956.7

402.5

13,117.2

9,106.9

2,376.4

24,600.5

9,159.6

4,326.1

3,472.4

16,958.1

2,447.8

4,051.7

(2,753.0)

3,896.1

7,642.4

1988

623.2

6,749.5

97.0

6,373.2

482.8

14,325.8

9,372.7

2,992.9

26,691.4

9,739.9

5,101.0

3,497.0

18,337.9

2,562.1

4,561.1

(2,942.0)

4,172.2

8,353.5

1989

657.3

6,565.3

69.0

6,028.2

984.0

14,303.8

8,730.5

2,777.5

25.811.7

10,046.0

4,711.7

3,125.4

17,883.1

2,469.0

4,190.6

(3,583.0)

4,852.1

7,928.6

20,665.3

F 2.45

24,600.5

F 2.03

1990

1,309.9

6,469.6

81.8

6,389.0

1,507.2

15,757.5

9,222.7

3,525.4

28,505.5

10,965.7

6,567.4

4,803.9

22,337.0

3,098.9

4,705.5

(5,139)

3,503.3

6,168.5

26,691.4

F 1.98

25,811.7

F 2.13

28,505.5

F 1.81

Source: N.V. Philips Gloeilanq)eiifabriekBn

Annual Reports and Foims 10-K

Dataquest (October 1991)

12

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011336

N.V. Philips Gloeilampenfabrieken

Table 4

Consolidated Income Statement

Fiscal Year Ending in December

(Millions of U.S. DoUars, except Per Share Data)

Consolidated Income Statement

Revenue

U.S. Revenue

Non-U.S. Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Thousands

1986

22,464.1

13,289.8

9,174.3

16,776.3

1,706.9

4,636.7

1,904.9

799.2

3.56

42.00

414.3

230,957

1987

25,968.0

15,942.4

10,025.6

19,553.2

2,149.8

5,432.0

2,342.9

368.0

1.42

28.00

403.0

245,500

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (US$1=:F)

1.79

0.82

28.03

F 2.45

1.64

0.99

31.13

F 2.03

1988

28,322.7

17,344.9

10,977.8

21,344.9

2,334.8

5,910.6

2,093.4

409.1

1.44

39.00

533.3

256,252

2.08

1.01

32.60

1989

26,865.7

15,403.3

11,462.4

20,252.6

2,139.4

5,657.3

1,483.6

594.8

2.21

41.20

645.1

266,508

2.42

0.94

29.75

(8.22)

-

NA

F 1.98

F 2.13 F 1.81

Source: N.V. Fbilips Gloeilampenfabrieken

Annual Reports and Fonns 10-K

Dataquest (October 1991)

1990

30,808.8

18,768.0

12,040.9

23,020.4

2,418.8

6,624.9

1.569.1

(2,266.3)

(7.36)

8.40

(2,342.5)

NA

0011336

©1991 Dataquest Incorporated October—^Reproduction Prohibited 13

N.V. Philips Gloeilampenfabrielcen

Table 5

Balance Sheet

Fiscal Year Ending in December

(Millions of Guilders)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Tenn Debt

Other Liabilities

Total Liabilities

Common Stock

Other Equity

Currency Adjustment

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

Exchange Rate (US$1=F)

1986

1,110.0

12,144.0

171.0

12,851.0

1,049.0

27,325.0

18,247.0

5,058.0

50.630.0

18,453.0

9,039.0

7,280.0

34,772.0

3,951.0

7,981.0

(4,222.0)

8,148.0

15,858.0

1987

1,446.0

11,916.0

357.0

12,092.0

817.0

26,628.0

18,487.0

4,824.0

49.939.0

18,594.0

8,782.0

7,049.0

34,425.0

4,969.0

8,225.0

(5,589.0)

7,909.0

15,514.0

50,630.0

F 2.45

49,939.0

F 2.03

1988

1,234.0

13,364.0

192.0

12,619.0

956.0

28,365.0

18,558.0

5,926.0

52,849.0

19,285.0

10,100.0

6,924.0

36,309.0

5,073.0

9,031.0

(5,825.0)

8,261.0

16,540.0

1989

1.400.0

13.984.0

147.0

12.840.0

2,096.0

30,467.0

18,596.0

5,916.0

54,979.0

21.398.0

10,036.0

6,657.0

38,091.0

5,259.0

8,926.0

(7,632.0)

10,335.0

16,888.0

52,849.0

F 1.98

54,979.0

F 2.13

51.595.0

F 1.81

Source: N.V. Fbilips Gloei]aoq)ei]fabrieken

Annual Reports and Forms 10-K

Dataquest (October 1991)

1990

2,371.0

11,710.0

148.0

11.564.0

2,728.0

28,521.0

16.693.0

6.381.0

51.595.0

19.848.0

11.887.0

8.695.0

40.430.0

5,609.0

8,517.0

(9,302.0)

6,341.0

11.165.0

14

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011336

N.V. Philips Gloeilampenfabrieken

s

Table 6

Consolidated Income Statement

Fiscal Year Ending in December

(Millions of Guilders, except Per Share Data)

Consolidated Income Statement

Revenue

European Revenue

Non-European Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Thousands

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (US$1=F)

NA s Not available

1986

55,037.0

32,560.0

22,477.0

41,102.0

4,182.0

11,360.0

4,667.0

1,958.0

3.56

42.00

1,015.0

230.957

4.39

2.00

68.66

2.45

1987

52,715.0

32,363.0

20,352.0

39,693.0

4,364.0

11,027.0

4,756.0

747.0

1.42

28.00

818.0

245,500

3.33

2.00

63.19

2.03

1988

56,079.0

34,343.0

21,736.0

42,263.0

4,623.0

11,703.0

4,145.0

810.0

1.44

39.00

1,056.0

256,252

1989

57,224.0

32,809.0

24,415.0

43,138.0

4,557.0

12,050.0

3,160.0

1,267.0

2.21

41.20

1,374.0

266,508

4.12

2.00

64.55

1.98

5.16

2.00

63.37

2.13

(14.88)

-

NA

1.81

Sooice: N.V. Philips Gloeilampenfabrieken

Annual Reports and Fbims 10-K

Dataqoest (October 1991)

1990

55,764.0

33,970.0

21,794.0

41,667.0

4,378.0

11,991.0

2,840.0

(4,102.0)

(7.36)

8.40

(4,240.0)

NA

Table 7

Key Financial Ratios

Fiscal Year Ending in December

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue (FK)/Employee

Capital Spending % of Assets

Exchange Rate (US$1=:F)

1986

1.48

319.27

116.36

2.00

6.40

1.84

7.60

8.48

343,800

160.08

9.22

2.45

1987

1.43

321.90

119.85

1.64

5.27

1.55

8.28

9.02

336,700

156.56

9.52

2.03

1988

1.47

319.52

116.60

219.52

2.00

6.38

1.88

8.24

7.39

310,300

180.73

7.84

1.98

1989

1.42

325.55

126.71

225.55

2.50

8.14

2.40

7.96

5.52

304,800

187.74

5.75

2.13

1985

1.44

462.11

177.77

362.11

(8.22)

(37.98)

(7.60)

7.85

5.09

272,800

204.41

5.50

1.81

Soujce: N.V, Riilips Gloeilampenfabfiekoi

AnmiaJ Rqjorts and Fonns 10-K

Dataqoest (October 1991)

15

0011336

©1991 Dataquest Incorporated October—^Reproduction Prohibited

The Plessey Company pic

THE COMPANY

STOP PRESS: In November 1987, Plessey acquired Ferranti Semiconductor for

$49 million. Ferranti Semiconductor has assets valued at $64 million and 1986 worldwide semiconductor revenue of $96 million. Ferranti employs 2,000 people in its semiconductor operation.

BACKGROUND AND OVERVIEW

The Plessey Company pic was founded in 1919 by Brian Clark. His son, Allen Clark, later Sir Allen, led the Company through nearly four decades of major growth, from the

1920s until his death in 1961. The present chairman and chief executive officer is

Sir John Clark; his brother, Michael Clark, is the deputy chairman.

Prior to its first major investment in semiconductors, the Company's product p o r t folio included radio communications equipment (in particular military), aircraft equipment (primarily pumps), electrical components (resistors, capacitors, and connectors), among other equipment. In line with the Company's strategy of concentrating in the high-technology product areas, many of these activities have been dispensed with during the last few years.

In 1957, Plessey began to invest in semiconductor operations. A joint activity

(51 percent Plessey and 49 percent Philco) was formed to manufacture electrochemical transistors.

During 1960 and 1961, Plessey acquired the telephone operations of ATE and

Ericsson Telephones (the U.K. arm of Ericsson) in the United Kingdom, signaling its move into British Post Office procurements and into the telecommunications market, in general.

Plessey's commitment to integrated circuits (including merchant sales) was marked by the introduction of an IC manufacturing process developed by Plessey Research

(Caswell) Limited in 1966. Plessey's IC manufacturing operation is located in Swindon,

Wiltshire, United Kingdom,

In December 1983, Plessey created a gallium arsenide IC subsidiary called the

Plessey Three-Five Group Ltd. Investment of US$75 million in the new company was spread over several years.

Throughout 1986, Plessey continued to give priority to new product development and to the modernization of production and research facilities. In February 1986, Sir James

Blyth was appointed managing director of the Company.

Throughout 1986, Plessey was locked in battle to resist takeover by General Electric

Company (GEC), the only U.K company with larger electronics sales than Plessey. The issue was whether such a merger would consolidate the fragmented U.K. electronics industry.

ESIS Volume III © 1988 Dataquest Incorporated January 1

The Plessey Company pic

The U.K. government finally ruled against GEC's $1.8 billion bid for Plessey on the grounds that the takeover would not serve the national interest.

In June 1987, GEC assured the U.K. Office of Fair Trading that it would not acquire more than 15 percent of Plessey.

PRODUCTS AND MARKETS SERVED

Plessey's current activities center on the development and supply of telecommunications and electronic defense systems. The Company's work in solid-state and electronic components supports these activities and provides a presence in the merchant component market.

The Plessey Company pic has established the following three major operational groups of logically integrated activities in which products and markets are interrelated:

• Telecommunications

• Electronic systems

• Engineering and components

All three operational groups rely extensively on silicon technology and are grouped for administrative purposes into management and trading companies and divisions.

Table 1 shows Plessey's turnover by business activity; Table 2 shows the Company's turnover by main markets; and Table 3 shows Plessey's research and development expenditure.

Plessey Telecommunications and Office Systems provides telecommunications authorities, public services, and commercial operators with equipment and systems based on software-controlled digital technology. The aim is to unite telecommunications and data processing in the new technology of integrated information handling.

Plessey Electronics Systems supplies a related group of products and services to the avionics and defense industries, as well as to the civilian communications sector.

Plessey Engineering and Components includes the Solid State Division, which manufactures standard, semicustom, and custom semiconductors and optoelectronic devices for military and industrial high-technology use, as well as components for professional applications.

Plessey Microsystems produces custom-designed and standard digital systems and subsystems based on microsystems and memories.

© 1988 Dataquest Incorporated January ESIS Volume III

The Plessey Company pic

Table 1

The Plessey Company pic

Estimated Revenue by Business Activity

(Millions of Pounds Sterling)

(Fiscal Year Ending March 28)

Activity

Telecommunications

Electronic Systems and Equipment

Microelectronics and Components

Aerospace and Engineering

Computer Peripherals

Subtotal

L e s s Intercompany C o n t e n t

T o t a l

1995

£ 681. 9

.7

.5

1986

£ 682.

4

.7

.1

Table 2

The Plessey Company pic

Revenue by Geographic Area

(Millions of Pounds Sterling)

(Fiscal Year Ending March 28)

United Kingdom

North America

Europe

Africa

Australia

Asia

Others

Total

1985

1986

£ 975.5

180.5

71.6

88.3

48.9

42.4

8.5

£1,036.9

174.5

85.9

60.5

47.5

41.3

14.5

£1,415.7

£1,461.1 isey Company pic

Dataquest

January 1988

ESIS Volume III

© 1988 Dataquest Incorporated January

The Plessey Company pic

Table 3

The Plessey Company pic

Research and Development &q>enditure

(Millions of Pounds Sterling)

(Fiscal Year Ending March 28)

Group Funded

Customer Funded

1995

£ 83.8

219.2

1986

£ 81.2

237.5

Total £303.0 £318.7

Source: The Plessey Company pic

Dataguest

January 1988

Plessey Peripheral Systems is active in hardware (minicomputer systems, microcomputer systems, add-on memories, visual displays, terminals, and printers), software

(for the range of mini/microcomputers), and service (hardware and software support and maintenance) operations.

Plessey Research covers research and applications of electronic materials, devices, and subsystems. The R&D center has pilot production lines and serves as a link between

R&D and subsequent full-scale production.

FACILITIES

Plessey's headquarters are located in Ilford, Essex, United Kingdom, and the main board's London offices are located in Millbank Tower, London, United Kingdom. Plessey is made up of about 34 subsidiaries and operates internationally through 250 establishments in 130 countries.

Plessey Semiconductors, Ltd., has its headquarters in Swindon, Wiltshire, United

Kingdom. It also maintains sales offices in France, West Germany, Italy, and Belgium.

Plessey's major semiconductor facilities are listed in Table 4.

© 1988 Dataquest Incorporated January ESIS Volume III

The Plessey Company pic

Table 4

The Plessey Company Pic

Major Semiconductor Facilities

Location

Plessey Research (Caswell) Limited

Description of Operation

Northamptonshire Products: Process research for all Plessey semiconductor products. New fabrication line is currently under construction.

A new 46,000-sguare-foot microelectronics research laboratory was completed in 1984. The facility is used for the research of submicron microcircuits and computer-aided design (CAD).

The Plessey Company pic

Towcester,

Established

Northamptonshire

Products:

Technologies:

Size:

Swindon, Wiltshire Established:

Products:

Irvine, California

Capacity:

Size

Established

Products:

Technology:

Capacity:

1940

Optoelectronic and microwave devices

GaAs, GaP, GaAsP

40,000 square feet

1957

Bipolar digital and linear integrated circuits

5,000 wafers/month, 3-inch wafers

110,000 square feet

1970

Semicustom design center, CMOS and

ECL gate arrays, Microcell semicustom

ICs, and hybrid manufacturing facility. In 1986, Plessey doubled the space of the marketing and design center.

CMOS, ECL, low-power NMOS

No wafer fabrication. In October

1984, Plessey signed an agreement with Silicon Development Systems to supplement its existing center at

Irvine. Plessey will use additional design locations in Boston and

Los Angeles, through this agreement.

(Continued)

ESIS Volume III

© 1988 Dataquest Incorporated January

The Plessey Company pic

Plympton, Devon

Roborough, near

Plymouth, Devon

Table 4 (Continued)

The Plessey Company Pic

Major Semiconductor Facilities

Location

Established:

Products:

Technologies:

Capacity:

Size:

Established:

Products:

Technology:

Capacity:

Size:

Description of Operation

1974

MOS integrated circuits

N-channel and P-channel, silicon gate and metal gate, MOS, NMOS, and CMOS

8,000 wafers/month, 4-inch wafers

32,000 square feet. New clean room built in 1985

1986. Investment was £31 million, plus another £21 million for extra equipment and facilities inside.

A second expansion phase is planned for 1989.

Gate arrays

CMOS

12,000 6-inch wafers/month (as of

July 1987)

186,000 square feet

Source: Dataguest

January 1988 fflCHLIGHTS

1987

Below activities. is a synopsis of recently published highlights of Plessey's electronics

In May 1987, Plessey was poised to announce a £160 million order from the

Australian Ministry of Defense for the Raven tactical radio system. This is the largest tactical radio contract ever awarded outside the United States.

© 1988 Dataquest Incorporated January

ESIS Volume III

The Plessey Company pic

In April 1987, Plessey announced that it expects to create more than 1,000 jobs in the semiconductor area over the next five years. This is part of an ambitious development plan to expand sales from the current £70 million to £350 million. Part of the plan also includes the new £33 million facility at Roborough, near Plymouth, Devon, for the manufacture of semicustom circuits.

In April 1987, Plessey's U.S. telecommunications subsidiary, Stromberg-Carlson

Corporation, announced profitability for the first time in years. In 1986, sales grew

28 percent, establishing the company in the U.S. telecommunications market.

In April 1987, Stromberg-Carlson Corporation won a $100 million digital telephone exchange order from BellSouth. Approximately 100 rural exchanges were installed throughout the southern United States, each with a capacity of about 6,000 lines.

In March 1987, British Telecom awarded a £64 million cooperative contract to

Plessey and GEC to supply 455,000 lines of System X equipment. Plessey and GEC have agreed to jointly market the exchange, with each company focusing on specific areas. If any orders are split between the two companies, then both would manufacture some of the exchanges. The two companies have increased their R&D spending on the exchange to $159 million annually for the next 15 years.

In March 1987, Plessey won the first major export order for System X when it received a $24 million contract from Colombia for the digital exchange.

In February 1987, Telettra and Italtel, Italian telecommunications manufacturers, approached Plessey and GEC with a view toward setting up an Anglo-Italian alliance for telecommunications equipment manufacture. The two Italian companies have already started similar discussions with Ericsson.

In February 1987, Plessey unveiled a 1-micron bipolar-technology process using three layers of metal and a 5.25-micron line pitch. This process allows for up to

20,000 gates on a device, with maximum toggle frequency of 5.5 GHz and gate delays of

70ps. In 1988, the Company's strategy is to increase the layers from three to four, to decrease the pitch to 3.5 microns, to increase the number of gates to 30,000, and to reduce gate delays to 50ps. Samples are due in January 1988 and first production should occur in December 1988. Finally, in mid-1989, the Company hopes to sample devices of

0.7 micron, with line pitch of 2.5 microns, 40,000 gates per device, a maximum toggle frequency of 11 GHz, and gate delays of 35ps. Full production of this process is envisaged in the summer of 1990.

In January 1987, Plessey and Westinghouse finalized their collaborative agreement on airborne radar, air defense, air traffic control, naval radar, electronic warfare systems, and advanced-technology research.

ESIS Volume III © 1988 Dataquest Incorporated January

The Plessey Company pic

1986

In December 1986, Plessey failed to break into the French market with its System X telephone exchange equipment. However, the French Minister of Posts and

Telecommunications indicated that other areas, such as cellular radio telephone systems and private branch exchanges, may be open to the Company in France.

In November 1986, Plessey launched six new products at the Electronica show in

Munich, West Germany. These include the ELA 6000 family of ECL gate arrays and a four-piece DSP chip set capable of 64-bit or higher accuracy.

In October 1986, Plessey announced the release of an intelligent bubble memory subsystem for the VME bus.

In September 1986, Plessey ran the first 6-inch wafers produced at its new diffusion plant at Roborough, near Plymouth, Devon.

In September 1986, Plessey and Valid Logic Systems announced a joint development program that enables designers to use Plessey semicustom libraries on Valid workstations.

In August 1986, Plessey successfully fought off a £1.2 billion takeover bid by GEC.

The U.K. government finally ruled that the takeover would be against public interest, as it would reduce competition in the United Kingdom.

In July 1986, Plessey announced that it would upgrade its gallium arsenide foundry at Towcester so that it could manufacture faster devices.

In July 1986, Plessey and Burroughs established a cooperative marketing agreement in advanced office automation systems. The agreement aims to link Burroughs' expertise in mainframe computing and Plessey's skills in telecommunications to provide integrated office networks where voice and data telephony can be combined in one system.

In July 1986, Plessey, CIT-Alcatel, and Italtel set up a £100 million project to develop a module that will upgrade the three companies' public switches. Half the funding will come from the Eureka program, and half from the companies themselves.

Dataquest's estimates of Plessey's European and worldwide semiconductor revenue are given in Tables 5 and 6, respectively.

© 1988 Dataquest Incorporated January ESIS Volume III

The Plessey Company pic

Table 5

The Plessey Company pic

Estimated European Semiconductor Revenue by Product Line

(Millions of Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

19?2

$35

$34

8

13

13

0

0

0

0

0

$ 1

1993

$38

$37

8

17

12

0

0

0

0

0

$ 1

1984

$51

$45

9

23

13

0

0

0

0

0

$ 6

1985

$66

$58

13

29

16

0

0

0

0

0

$ 8

Source: The Plessey Company pic

Dataquest

January 1988

1986

$78

$65

16

30

19

0

0

0

0

0

$13

ESIS Volume III

© 1988 Dataquest Incorporated January

The Plessey Company pic

Table 6

The Plessey Company pic

Estimated Worldwide Semiconductor Revenue by Product Line

(Millions of Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

1982

$53

$50

19

14

17

0

0

0

0

0

$ 3

1983

$61

$58

21

19

18

0

0

0

0

0

$ 3

1984

$82

$75

27

26

22

0

0

0

0

0

$ 7

1995

$99

$89

30

35

24

0

0

0

0

0

$10

Source: The Plessey Company pic

Dataquest

January 1988

1986

$112

$ 96

32

37

37

0

0

0

0

0

$ 16

OUTLOOK

Plessey's investment in the semiconductor sector over the last few years is paying off. The Company is a pioneer of semiconductor development in the United Kingdom, as well as one of the world leaders in telecommunications and defense electronics.

Plessey aims to maintain its present balance of semiconductor sales at about

80 percent merchant and 20 percent captive.

Over the next five years, Plessey Semiconductors expects to create more than

1,000 jobs. This will nearly double its present work force. The ultimate aim is to expand sales from a current £70 million to £350 million.

10

© 1988 Dataquest Incorporated January

ESIS Volume III

Company Backgrounder by Dataquest

Samsung Electronics Company Ltd.

250, 2-Ka, Eulchi-Ro

Chung-Ku, Seoul, South Korea

Phone: (02) 751-2114

Fax: (02) 753-0967

Dun's Number: 68-775-0836

Date Founded: 1969

CORPORATE STRATEGIC DIRECTION

Samsung Electronics Company Ltd. (SEC), founded in 1969 by the Samsung Group, began as a manufacturer of black-and-white televisions. In November

1988, SEC merged with Samsung Semiconductor and

Telecommunications Company. Today, SEC is a worldwide supplier of consumer electronics products, personal computers, semiconductors, factory automation systems, and telecommunications equipment.

In the Asia/Pacific-ROW market, Samsimg continues to narrow the distance behind Toshiba by pursuing a diversification strategy of its semiconductor business.

Samsung's MOS memory sales dominated 18.7 percent of the Asian captive and merchant markets.

Samsung increased sales of MOS logic devices from

US$117 million in 1989 to US$142 million in 1990.

This 21 percent increase allowed Samsimg to surpass

Toshiba in Asia/Pacific-ROW by controlling a dominant 15.3 percent of the logic market

SEC actively participates in the development of electronics industries worldwide. The company operates a global business with six offshore plants, 22 subsidiaries, and 40 international branch offices. The company also actively works to expand its markets through licensing of production technologies and the

Samsung brand name. SEC's strategy is to separate goods and services into fields of technology to improve international competitiveness. SEC continues to expand its manufacturing, production, and R&D facilities overseas.

Although actual R&D expenditure is not given, SEC reports that R&D spending is approximately 5 percent of annual sales. In addition to its R&D activities in

South Korea, SEC is expanding R&D in the United

States and Japan. SEC employs over 2,700 scientists and engineers in R&D activities worldwide. Total employment as of December 31, 1990, was approximately 43,000.

Dataquest estimates that Samsung ranks 15th in total semiconductor sales worldwide in 1990, holding a

2.3 percent market share based on estimated sales totaling over US$1.3 billioa Samsung ranks fifth worldwide in MOS memory, with annual sales estimated to be US$971 million and a market share of

7.4 percent

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highlights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 8 at the end of this backgrounder present comprehensive financial information. Complete financial data for 1990 were not available at the time this report was written; thus,

1990 was not included in the financial tables.

Dataquest believes that Samsung's business aggressiveness, coupled with South Korea's electronics equipment recovery, should enable Samsung to become Asia's number one semiconductor vendor in

1991. Dataquest anticipates that Samsung wiU focus on developing microcomponents, application-specific standard products business, and 4Mb DRAMs.

BUSINESS SEGMENT STRATEGIC

DIRECTION

SEC is divided into five major business sectors: the semiconductor business, the information systems business, the computer and systems business, the consumer electronics business, and the domestic sales business.

0011216

©1991 Dataquest Incorporated October—Reproduction Prohibited

Samsung Electronics Company Ltd.

Semiconductors

SEC began developing semiconductor products in

1974 and currently produces over 3,000 types of semiconductor products. Its memory products include

DRAMs, SRAMs, EPROMs/EEPROMs, and mask

ROMs. SEC also produces microcontrollers; application-specific integrated circuits (ASICs), including gate arrays, standard cells, and PC chip sets; bipolar and MOS linear ICs; logic devices; and transistors. The company's latest products include the

1Mb and 4Mb DRAMs, advanced linear ICs, microprocessor peripheral devices, gate arrays, logic famihes, high-efficiency MOSFETs, and power transistors.

The company's semiconductor segment headquarters are in Seoul, with major manufacturing plants in

Bucheon and Kiheung, South Korea. Established in

1985, Samsung Semiconductor Inc., in San Jose,

California, develops and markets memory products and microprocessor peripherals in the United States.

SEC also has ASIC design centers in Tokyo,

San Jose, and Seoul.

Information Systems

The telecommunications equipment segment is responsible for developing and marketing SEC's telephone products. Product lines in this category include cordless and cellular phones, key phone systems for small business or branch office use, and facsimile equipment.

The integrated communications systems group produces LAN products, factory automation (FA) systems, integrated control systems (ICS), and building automation systems. SEC uses its own FA and ICS systems at its plants in Suwon and Kiheung, South

Korea. The Suwon plant is one of the world's largest electronics integrated manufacturing complexes, covering 370 acres and producing everything from electronic parts and components to finished goods such as audio/video products and home appliances.

Computer and Systems Business

SEC produces and exports various kinds of computers including personal computers, mainframes, and supercomputers. The company also manufacdires computer products and peripherals such as printers, monitors, flexible, hard-disk drives, and workstations. In addition, SEC produces a wide range of office automation equipment, including teletext recorders, copiers, typewriters, electronic cash registers, and electronic calculators.

The company's information systems business segment includes the following subsections: fiber-optic communications systems, switching systems, telecommunications equipment, computer and office automation equipment, integrated communications systems, and home automation and new media equipment

SEC is also committed to the development of integrated communications systems such as LANs,

FA, ICS, and building automation systems.

Fiber-optic communications systems consist of optical fibers, optical cables, and optical transmission equipment. SEC products are used in long-distance telecommunications applications such as fiber-optic

LAN systems, data computer networks, and optical teleconferencing. They will also be used in South

Korea's future Integrated Services Digital Networks.

In 1991, Samsung Information Systems America Inc. introduced its first UNIX-only product, the SCGS-19

X ^^ndow Systems Terminal, a 19-inch monochrome

X-terminal based on die Advanced Micro Devices

29000 RISC microprocessor. In addition, Samsung announced the SystemMaster 486/33TE, a 33-MHz

UNIX-compatible version of its 80486-based EISA engineering workstation and file server. Both products are designed to be sold by UNIX VARs that require a competitive, low-cost solution for technical and high-end commercial applications.

The switching systems segment produces electronic switching systems. By the end of 1988, SEC had installed more than 3.5 miUion electronic circuits in

South Korea. One of the most recent product developments in this segment is SEC's TDX-1, a digital switching system. In addition, SEC is developing data communications switching equipment, known as private automatic branch exchange. Current models include the SDX-L and COREX systems.

Samsung Information Systems America also introduced a new addition to its family of slim-line

IBM-compatible computers, the DeskMaster 386S/20.

The company also announced 40- and 60MB versions of its NoteMaster 386S/16 notebook computer. The

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011216

Samsung Electronics Company Ltd.

addition of the DeskMaster 386S/20 to Samsung's

DeskMaster product line is in keeping with the company's commitment to provide corporate users with hardware solutions that maximize the capabilities of

^^^dows 3.0. SEC's overall strategy is to increase its share of the PC network hardware market, the area in which these products are targeted. electronic products. Video products include televisions, VCRs, and camcorders. Audio equipment ranges from portable cassette players to conq>act disc players to large home entertainment centers. The home appUance segment produces microwave ovens, washing machines, vacuiun cleaners, refrigerators, and commercial vending machines, and freezers.

Consumer Electronics

The consumer electronics business segment is composed of several subsegments: industrial electronics equipment, video equipment, audio equipment, and home appliances.

Samsung also produces a variety of audio and home appUance systems. SEC's line of audio equipment ranges from miniature portable cassette players to large home entertainment centers. SEC produces many different types of home appUances, including washing machines, vacuum cleaners, ulfrasonic humidifiers and dehumidifiers, and microwave ovens.

The industrial electronics equipment segment produces FA equipment The company produces a variety of automated equipment including partsinsertion machines, carriers, industrial robots, printed circuit board in-circuit testers, and line-monitoring systems.

Further Information

SEC's video, audio, and home apphance segments produce the bulk of the company's consumer

For further information on the company's business segments, please contact Dataquest's Semiconductors

Asia service.

0011216

©1991 Dataquest Incorporated October—Reproduction Prohibited

Samsung Electronics Company Ltd.

Table 1

Corporate Highlights (Millions of U.S. Dollars)

Three-Year Revenue

Percent Change

1987

2,917.0

Capital Expenditure

Percent of Revenue

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue (US$K)/Employee

193.6

6.64

NA

0

22,965

127

Net Income

Percent Change

Exchange Rate (US$1=W)

41.8

825.94

1990 Calendar Year

Quarterly Revenue

Quarterly Profit

NA = Not available

Ql

NA

NA l^ble 2

Revenue by Geographic Region

(Percent)

Region

North America

International

1988

4,249.3

45.67

279.8

6.58

NA

0

38,079

112

138.7

231.82

734.25

Q2

NA

NA

Q3

NA

NA

Q4

NA

NA

Source: Samsung Electronics Company Ltd.

Annual Reports

Dataquest (October 1991)

1989

6,063.4

31.95

1,248.1

20.58

NA

0

43,000

141

233.4

55.64

679.00

1987

27.38

72.62

1988

29.65

70.35

1989

NA

NA

Source: Samsung Electronics Company Ltd.

Animal Reports

Dataquest (October 1991)

©1991 Dataquest Incorporated October—^Reproduction Prohibited

0011216

Samsung Electronics Company Ltd.

1991 SALES OFFICE LOCATIONS SUBSIDIARIES

North America—8

Europe—7

Japan—2

Asia/Pacific-ROW—19

North America

Samsung Electronics America Inc. (United States)

Samsimg Electronics Canada Inc. (Canada)

Samsimg Information Systems America Inc. (United

States)

Samsung International Inc. (United States)

Samsung Semiconductor Inc. (United States)

MANUFACTURING LOCATIONS

North America

Ledgewood, New Jersey

Color televisions

Saddlebrook, New Jersey

Electronics

San Jose, California

Semiconductors

Europe

Samsung Electronica Portuguesa SARL (Portugal)

Samsung Electronics Espanola S.A. (Spain)

Samsimg Electronics France (France)

Samsung Electronics GmbH (Germany)

Samsung Electronics Hungarian (Hungary)

Samsung Electronics Manufacturing UK (United

Kingdom)

Samsung Hectrooics UK Ltd. (United Kingdom)

Samsung Electronics Europe GmbH (Germany)

Japan

Europe

BiUingham, England

VCRs and microwave ovens

Estoril, Portugal

Color televisions

AsialPacific

Bangkok, Thailand

Video products

Bucheon, South Korea

Linear IC, ASIC IC, Logic IC, MOS IC, MICOM, transistors

Kiheimg, South Korea

DRAM semiconductors

Kiuni, South Korea

S w i t c h i n g s y s t e m s , t e l e c o m m u n i c a t i o n s equipment, fiber-optic communications systems

Suwon, South Korea

FA equipment, video, audio, cooUng/heating systems, home appliances

ROW

Hjuana, Mexico

Color televisions

Samsung Electronics Japan Co. Ltd. (Japan)

ROW

Samsung Electronic Australia Pty Ltd. (Australia)

Samsung Electronic H.K. Co. Ltd. (Hong Kong)

Samsung Electronics Panama S.A. (Panama)

Samsung Electronics Ticaret A.S. (Turkey)

Samsung Maspion Indonesia (Indonesia)

Samsung Mexicana S.D. De C.V. (Mexico)

Thai-Samsung Electronics Co. Ltd. (Thailand)

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

1991

Army Microsystems Inc.

Under a five-year agreement with Array

Microsystems, Samsung Electronics wiU manufacture high-performance digital signal processing chips codeveloped by engineers from both Samsung and Array Microsystems. The design and development will take place in the Array

0011216

©1991 Dataquest Incorporated October—^Reproduction I*rohibited

Samsung Electronics Company Ltd.

Microsystems headquarters in Colorado Springs,

Colorado, while the manufacturing wUl take place at Samsung's manufacturing facilities in Bucheon, near Seoul, Korea. The two companies will contribute a total of about $5 million to the joint effort.

Genus Incorporated

Genus signed a joint-development pact with

Samsung Electronics Co. to develop advanced tungsten processes for Samsung's coming 16Mb and 64Mb DRAMs. Genus of Mountain "V^ew,

Cahfomia, will provide on-site support at Samsung's facility in Seoul to help Samsung develop volume-production technologies for submicron applications.

Hewlett-Packard Company

Samsung has an agreement with Hewlett-Packard whereby Samsung will manufacture the PA-RISC

MPU and will develop other compatible devices used to manufacture the HP Apollo 9000 Series

7000. (Also see Yokogawa Hewlett-Packard.) development and production support using Applied

Materials' Precision 5000 Etch system. The agreement follows an earlier one in May 1990 between the two on chemical vapor deposition process development with Samsimg's Kiheung Research and Development Center. The new agreement is aimed at meeting Samsung's current and future requirements in production fabs, and covers virtually all of Applied Materials' etch technologies, including single-crystal silicon, polysilicon, tungsten siUcide, and silicon oxide etching.

Mass860

Intel and five of its largest customers—Alliant,

IBM, Okidata, Olivetti Systems, and Samsung

Electronics—^formed a consortium called M]ass860 to speed up porting of useful applications to Intel's i860 RISC microprocessor. Besides promoting a standard ABI for a wide range of hardware platfoims using the i860, the Mass860 program will provide software developers with porting help, technical support, and joint market opportunities.

Ingram Micro Inc.

Samsung Information Systems America signed a distribution agreement with Ingram Micro, the world's largest distributor of microcomputer products. This deal makes Ingram Micro one of

Samsung's select distributors of personal computers, notebooks, peripherals, and color and monochrome monitors.

Sequa

Samsung will jointly develop nonstop minicomputers with Sequa. Samsung will supply die computers on an OEM basis to Sequa and will market them in South Korea.

Sequoia Systems Inc.

Sequoia Systems and SEC have agreed to terms of an OEM contract in which Samsung will resell

Sequoia's fault-tolerant computers and pay for development of a new low-end UNIX-based computer. The new machine will be marketed under the Samsung name in South Korea.

Texas Instruments Inc.

Texas Instruments and Samsung Electronics Co. signed a five-year cross-licensing agreement in which both companies will pay royalties to each other for the use of their respective patented memory chip technology. Texas Instruments expects royalty payments from Samsung to gready exceed the amounts received by TI imder the previous agreement, which expired at the end of 1990.

Yokogawa Hewlett-Packard (YHP)

By the end of 1991, YHP will begin to market a low-end version of the "HP Apollo 9000 Series

700" RISC station, which will be manufactured by Samsung Electronics Co. (Also see Hewlett-

Packard.)

Skydata Inc.

Skydata of Melbourne, Florida, and two other companies—Matra of Paris, France, and

Samsung—have agreed to jointiy develop a complete line of satellite and data communication products and systems. Matra will be responsible for marketing Skydata products and systems in

Europe, the Middle East, and Africa. Skydata will be responsible for product development and marketing for the remainder of the world, while

Samsung will be involved in manufacturing.

1990

Applied Materials Inc.

Applied Materials has a joint-development agreement with SEC on advanced plasma etch process

Teradyne Inc.

Teradyne and SEC have agreed to joindy develop a next-generation memory test system targeted at

16Mb and 64Mb DRAMs. Samsung will help characterize the system's capabilities and parameters; Teradyne wUl design the hardware and software.

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011216

Samsung Electronics Company Ltd.

USSR

Samsung Electronics will develop an assembly factory for VCRs, CRTs, and microwave ovens near Moscow. SEC will also export $500 million worth of semifinished VCRs and $1 billion worth of parts and equipment to the Soviet Union.

Novell Inc.

SEC signed an agreement with Novell to market

LAN hardware systems with Novell's NetWare.

Samsung Information Systems America and

Novell comarketed the PC terminal and file servers until August 1989, at which time Samsung became the sole distributor of the servers.

1989

Hewlett-Packard Company (HP)

SEC licensed HP's RISC-based Precision

Architecture (PA). SEC will manufacture the

HP-PA chips for use in HP and third-party systems. In return for manufacturing the chips, SEC gains advanced CMOS technology and a version of the UNIX operating system.

MERGERS AND ACQUISITIONS

In November, 1988, SEC merged with Samsung

Semiconductor and Telecommunications Company.

IBM Corporation

SEC and IBM signed a cross-Ucensing agreement for semiconductor technology. In addition, SEC and IBM signed an agreement giving SEC access to IBM's personal computer patents.

Intergraph Corporation

SEC was signed as the first alternate source for

Intergraph's CUpper microprocessor, a 32-bit RISC chip. Samsung also has worldwide marketing rights for the processor.

Microsoft Corporation

Samsimg licensed Microsoft's PostScript software for iise with its printer products.

USSR

Samsimg agreed to export $81 million worth of semifinished and finished VCRs to the USSR.

KEY OFFICERS

Jin-Ku Kang

Chairman and chief executive officer

Kwang-Ho Kim

President, Semiconductor Business

Yong-Moon Jung

Executive vice president. Information Systems

Sun-Doo Hwang

Executive vice president. Domestic Operations

Young-Soo Kim

Executive vice president. Computers and Systems

Jong-Yong Yun

Executive vice president, Consimier Electronics

1988

Ixys

SEC signed a licensing agreement with Ixys to produce power MOSFETs and smart-power ICs developed by Ixys.

PRINCIPAL INVESTORS

NCR Corporation

SEC and NCR signed a technology licensing and exchange agreement that gives Samsung access to

NCR's 1.5- and 2-micron CMOS ASICs. NCR will have access to manufacture and market SEC's

64K and 256K SRAMs. As part of the agreement,

SEC will also Ucense NCR's ASIC design software for workstations, NCR's high-density ROMs, and will be able to subhcense the NCR products to

SEC customers.

Samsung life Insurance—8.7 percent

Lee Kun Hee—8.5 percent

Samsung Company—4.2 percent

FOUNDERS

The Samsung Group

00U216

©1991 Dataquest Incorporated October—Reproduction Prohibited

Samsung Electronics Company Ltd.

Table 3

Balance Sheet

Fiscal Year Ending in December

(Millions of U.S. Dollars)

Balance Sheet

Cash

Receivables

Maiketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Total Liabilities and Shareholders' Equity

NA = Not available

1987

98.6

362.1

5.2

224.7

70.7

761.3

438.9

176.8

1,377.0

886.5

151.2

71.8

1,109.5

NA

84.1

50.6

132.8

267.5

1,377.0

1988

200.6

512.4

18.7

615.1

198.3

1,545.1

1,662.2

418.6

3,625.9

1,597.9

1,051.2

261.9

2,910.2

NA

266.8

130.4

318.5

715.7

3,625.9

1989

79.6

512.0

2.8

865.9

127.7

1,587.9

2,107.6

589.5

4,285.0

1,506.9

1,413.6

309.3

3,229.8

27.5

268.9

244.8

513.9

1,055.2

4,285.0

Soince: Samsimg Electronics Company Ltd.

Annual Reports

Dataquest (October 1991)

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011216

Samsung Electronics Company Ltd.

Table 4

Consolidated Income Statement

Fiscal Year Ending in December

(Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

Domestic Revenue

International Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (US$1=W)

NA = Not available

1987

2,917.0

798.6

2,118.4

2,480.5

NA

265.9

193.6

55.4

1.90

NA

41.8

13.9

1988

4,595.1

1,408.6

3,186.5

3,762.9

NA

440.6

302.5

188.4

4.10

NA

138.7

36.2

1989

6,063.4

2,370.80

3,692.6

4,554.3

NA

789.7

1,248.1

293.6

4.84

NA

233.4

36.5

9.50

0.01

15.90

8.24

0

13.42

14.08

0

28.91

825.94 734.25 679.00

Soutce: Samsung Electronics Company Ltd.

Annoal Rqxnts

Dataquest (October 1991)

0011216

©1991 Dataguest Incotporated October—Reproduction Prohibited

Samsung Electronics Company Ltd.

Table 5

Balance Sheet

Fiscal Year Ending in December

(Billions of Won)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

1987

81.5

299.0

4.3

185.6

58.4

628.8

362.6

146.1

1,137.5

732.3

124.9

59.3

916.5

69.5

41.8

109.7

221.0

1988

136.2

347.9

12.7

417.7

134.6

1,049.1

1,128.7

284.2

2,462.0

1,084.5

713.8

177.8

1,976.1

181.1

88.5

216.3

485.9

1,137.5 2,462.0 2,909.5

Source: Samsung Electronics Company Ltd.

Annual Repotts

Dataquest (October 1991)

1989

54.0

347.6

1.9

587.9

86.7

1,078.1

1,431.1

400.3

2,909.5

1,023.2

959.8

210.0

2,193.0

182.6

166.3

349.0

716.5

10

©1991 Dataquest Incorporated October—Reproduction Prohibited

0011216

Samsung Electronics Company Ltd.

Table 6

Consolidated Income Statement

Fiscal Year Ending in December

(Billions of Won, except per Share Data)

Consolidated Income Statement

Revenue

Domestic Revenue

International Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

1987

2,381.3

650.2

1,731.2

2,048.9

NA

219.7

159.9

45.8

1.92

NA

34.5

13.9

1988

3,028.2

905.7

2,122.6

2,555.0

NA

299.2

205.4

127.9

4.22

NA

101.8

36.2

7.89

0.24

15.90

5.98

0.56

13.42

9.56

0

19.63

Source: Samsniig Electronics Coiiq>any Ltd.

Annual Repoits

Dataqoest (October 1991)

1989

4,006.8

1,499.6

2,507.3

3,092.4

NA

536.2

847.4

199.4

4.98

NA

158.5

36.5

Tkble 7

Key Financial Ratios

Fiscal Year Ending in December

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue (W K)/Employee

Capital Spending % of Assets

Exchange Rate (US$1=W)

NA s Not available

0011216

1987

1988 1989

0.86

514.83

331.44

414.81

0.97

506.67

223.19

406.68

1.05

406.06

142.79

306.06

0.03

0.16

1.45

0.04

0.21

3.36

0.05

0.22

3.96

0

6.71

22,965

104

14.06

825.94

0

6.78

38,079

80

8.34

734.25

0

21.15

43,000

93

29.13

679.00

Source: Samsong Electronics Conq>any Ltd.

Annual Repoits

Dataqoest (October 1991)

©1991 Dataquest Incorporated October—^Reproduction Prohibited

11

Semikron International

BACKGROUND AND OVERVIEW

Semikron International was founded in 1951, in Nuremberg, West Germany, by

Dr. Fritz Martin and several executives from ITT Semiconductors. Initially established to produce selenium rectifiers, the Company has grown to be a profitable worldwide operation. The Company relies on niche products, technological excellence, and maximum flexibility for the customer. Tables 1 and 2 give Dataquest estimates of

Semikron's European and worldwide semiconductor revenue, respectively.

Table 1

Semikron International

Estimated Eur(q>ean Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

1983

$25

0

0

0

0

$25

0

9

10

6

1994

$27

0

0

0

0

$27

0

10

10

7

0

3-99?

$30

0

0

0

0

$30

0

11

11

8

1996

$43

0

0

0

0

$43

0

17

13

13

Source: Dataquest

January 1989

1987

$49

0

0

0

0

$49

0

19

15

15

ESIS Volume III

0002205

© 1989 Dataquest Incorporated January

Semikron International

Table 2

SemikrcMi Intemati<»al

Estimated Worldwide SemioMiductor Revenue by Product Line

(Millions of U.S. Dollars)

al Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

1993

$36

0

0

0

0

$36

0

12

14

10

0

1994

$40

0

0

0

0

$40

0

14

15

11

0

199?

$48

0

0

0

0

$48

0

18

17

13

0

1990

$72

0

0

0

0

$72

0

28

22

22

0

January

1989

1987

$79

0

0

0

0

$79

0

30

26

23

0

PRODUCTS AND MARKETS SERVED

From early production of selenium rectifiers, the Company has specialized in the development of semiconductor rectifiers, thyristors, assemblies (bridge rectifiers), and other specific power products. Semikron has a strong capability in, and a flexible approach to packaging, a key area in high-power discrete devices.

Dataquest believes that the major market outlets for Semikron's products are industrial electronic end-equipment makers, consumer electronics houses, and other end-user segments.

OUTLOOK

Semikron has estalished itself as a leader in a specialized area of the merchant semiconductor market. The Company aims to maintain this position by being innovative and flexible. Dataquest believes that Semikron will continue growing steadily and that its reputation will be enhanced, both by this and by operating results, which have shown a profit for every year of operation to date.

© 1989 Dataquest Incorporated January

ESIS Volume HI

0002205

SGS-Thomson Microelectronics

BACKGROUND AND OVERVIEW

SGS-Thomson Microelectronics B.V. (SGS-Thomson) was formed on May 21, 1987, and results from the combination of the total semiconductor business of IRI-STET and the civil semiconductor business of Thomson-CSF. The Company is owned 50 percent by

Thomson-CSF, 45 percent by IRI, and 5 percent by its subsidiary, IRI-Finmeccanica. The

Company is registered in Amsterdam, The Netherlands. The Company employs approximately 17,000 people worldwide at 18 factories, 7 R&D centers, 13 design centers, 42 direct sales offices in 20 countries, and more than 600 representatives and distributors worldwide.

Table 1 lists the locations of these facilities.

Table 1

Location of SGS^-Thomson Facilities

Total Revenue

Employees

Factories

Advanced R&D Centers

Design Centers

Sales Offices

1988: $1,085 million (1987: $859 million)

17,000

18

France: Grenoble, Maxeville (Nancy), Rennes,

Rousset (Aix-En-Provence), Tours

Italy: Agrate (Milan), Castelletto (Milan), Catania

Malaysia: Muar

Malta: Kirkop, S. Gwann

Morocco: Casablanca (2 factories)

Singapore: Ang Mo Kio, Toa Payoh

U.S.A.: Dallas, Montgomeryville (Philadelphia),

Phoenix

7

France: Grenoble, Rousset (Aix-En-Provence), Tours

Italy: Agrate (Milan), Castelletto (Milan), Catania

U.S.A.: Dallas

France: Grenoble, Rennes, Paris (Gentilly)

Italy: Agrate (Milan)

Germany: Grafing, Munich

Malaysia: Singapore

Sweden: Stockholm (Kista)

U.K.: London (Marlow)

U.S.A.: Dallas, Montgomeryville (Philadelphia),

Phoenix, Santa Clara

42 direct sales offices in 20 countries, more than

600 reps and distributors

Source: SGS-Thomson

Dataquest

June 1989

ESIS Volume III

0003912

© 1989 Dataquest Incorporated June

SGS-Thomson Microelectronics

In the last 18 months, Mr. Pasquale Pistorio, the Company's president and CEO, restructured the Company. SGS-Thomson closed or sold five factories and reorganized its production by shifting approximately 100 processes. Since January 1, 1988, the

Company has been acting as a single unit. The Company's 1988 results were good—sales grew approximately 26 percent, productivity increased from $44,000 per employee to

$62,000 per employee in the last 18 months, and there was a small operating profit of

$2.2 million. Although small in real terms, the profit is significant because it shows a reversal in the Company's performance from the day of its creation.

In 1988, approximately 20 percent of total sales was spent on R&D, and 17.6 percent was spent on capital investments. R&D efforts are focused on high-growth market segments, while a high level of cooperation is being maintained in national and European

R&D programs like ESPRIT, RACE, and Eureka.

In October 1988, SGS-Thomson, Philips, and Siemens reached an agreement over the launch of the ECU 3.8 billion (US$4.2 billion) joint research and development program called Joint European Submicron Silicon (JESSI). However, some remaining issues still have to be resolved, such as funding from the European Commission's ESPRIT programs, and the identity of other participants in parts of the program, which is expected to include smaller semiconductor companies, users, and suppliers from all over Europe.

Products and Markets Served

In 1988, SGS-Thomson's semiconductor revenue was mainly in Europe (60.0 percent) followed by the United States (21.3 percent), Asia/Pacific (17.7 percent), and Japan

(1.0 percent). By end use, the split was as follows: Industrial (24 percent), computer

(19 percent), consumer (19 percent), telecommunications (25 percent), automotive

(10 percent), and military (3 percent).

Although sales in Japan are small, that country has the same footing in the

Company's organizational structure as any other region.

SGS-Thomson's worldwide and European semiconductor activities are illustrated by product line in Tables 2 and 3, respectively.

The Company's product range includes standard ICs, dedicated ICs, discrete products, semicustom ICs, and subsystems. Table 4 lists the Company's main product licenses and cooperation agreements with other companies.

© 1989 Dataquest Incorporated June ESIS Volume III

0003912

SGS-Thomson Microelectronics

Table 2

SGS-Thomson

Estimated Worldwide Semiconductor Revenue by Product Line

(Millions of U.S. Dollars)

19H

1985 1986 1987

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

$545

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

$539

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

$700

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

$859

$646

20

344

282

$213

113

44

28

28

Total Optoelectronic

N/A := Hot Available

1988

$1,085

$ 831

20

459

352

254

142

68

44

0

SGS-TlKjmson

Estimated Eurcpean Semiconductcn* Revenue by Product Line

(Millions of U.S. Dollars)

Total Semiconductor

Total Integrated Circuit

Bipolar Digital

MOS

Linear

Total Discrete

Transistor

Diode

Thyristor

Other

Total Optoelectronic

Table 3

1984

$343

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

0

1985

$370

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

0

1986

$468

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

0

1987

$537

$397

14

209

174

$140

65

31

20

24

N/A = Not Available

Source: Dataquest

June 1989

1988

$650

$483

11

262

210

$167

85

50

32

0

ESIS Volume III

0003912

© 1989 Dataquest Incorporated June

SGS-Thomson Microelectronics

Table 4

SGS-Thomson Main Licenses and Agreements

Main Technology and Product Licenses

Motorola: MPUs-MCUs

Zilog: MPUs-MCUs

LSI-Logic; Gate arrays

NSC: MCUs

Lattice: GAL family

Cadence: CAD

Main Product Cooperation Agreements

Toshiba: High-speed CMOS

National Semiconductor: Telecom ISDN

Philips: Power package

Oki: DRAM manufacturing

Source: SGS-Thomson

Dataquest

June 1989

OUTLOOK

The corporate goal is to be a profitable and viable broad-range supplier of semiconductors and subsystems. This goal implies operating on a worldwide basis on the merchant market and growing to be, and remaining, among the top 10 suppliers in the world.

The Company has a five-year expansion program, to expand to between 4 and

5 percent of the worldwide market by 1993. Sixty-five percent of the funding for this program is expected to come from internal resources, the rest is to come from further equity injections by shareholders and from the banks.

SGS-Thomson grew 26.3 percent in 1988 over 1987. The Company believes there is room to grow without any new portfolios. However, in order to be among the leaders,

SGS-Thomson must have DRAMs and 32-bit microprocessors. Later this year, the

Company hopes to make a decision on how to incorporate DRAMs into the product portfolio (through strategic alliances or other means). As far as microprocessors are concerned, the Company hopes to have the resources through the acquisition of InMOS.

To date, SGS-Thomson has signed a letter of intent to purchase InMOS. If the Company is successful in its acquisition, it would be the first step into the personal computer market.

© 1989 Dataquest Incorporated June ESIS Volume III

0003912

Siemens AG

Wittelsbacherplatz 2, D-800 Munich

Federal Republic of Germany

Telephone: Oil 49 89 234-0

Fax: 234-42 42

Dun's Number: 31-606-7164

Date Founded: 1847

CORPORATE STRATEGIC DIRECTION Informationssysteme AG had a loss of DM 348 milhon (U.S.$216 milUon) worldwide.

Siemens AG provides a comprehensive range of products from electronic components to office and telecommunication systems, and from production equipment, power, and medical engineering to transportation systems and automotive electronics.

Siemens has positioned itself as a global company with sales to its domestic German market accounting for 45 percent and sales to the rest of world accounting for 55 percent of total worldwide sales in fiscal

1990. Currendy, Siemens' operations in the United

States exceed 10 percent of total sales.

In October 1990, the activities of Dr.-Ing Rudolf Hell

GmbH were transferred to Linotype AG. Siemens, which was the parent company of HeU, holds a minority interest in the company, which has been renamed Linotype-HeU AG. The two companies together will have an estimated annual revenue of approximately DM 500 miUion (U.S.$310.4 million).

This makes the company one of the largest electronic prepress companies in the industry.

Siemens AG is one of the world's major electrical engineering and electronics companies with 1990 sales of DM 63.1 billion (U.S.$39.2 billion). (Percentage changes refer only to DM amoimts; U.S.$ percentage changes wiU differ because of fluctuations in

Dataquest exchange rates.) According to Dataquest, in 1990 semiconductor sales totaled DM 2.0 billion

(U.S.$1.1 billion). This ranks Siemens as Europe's third-largest semiconductor company. Its data and information systems sales of DM 7.7 billion

(U.S.$4.8 biOion) rank the company as one of the world's largest information systems vendors. And with pubhc and private telecommunication equipment sales of DM 13.8 billion (U.S.$8.6 billion), Siemens is one of the world's largest telecommunication vendors.

In October 1990, Siemens acquired 49 percent interest in Maimesmann TaUy GmbH, a computer printer manufacturer. This places Europe's printer industry in a very strong positioiL Maimesmann Tally was quick to maximize on the broadened range of products by introducing a new printer that was designed-by-Siemens AG.

In November 1990, Siemens acquired a 50 percent stake in Stromberg-Carlson Corporation, a U.S. telephone exchange business from GEC Plessey

Telecommunications Ltd. (GPT). Siemens merged its

Siemens Private Commimication Systems Inc. with

Stromberg-Carlson to create Siemens Stromberg-

Carlson and became one of the largest U.S. public network equipment suppliers.

In April 1990, Siemens acquired a majority interest of common stock in Nixdorf Computer AG. On

October 1, 1990, the Data and Information Systems

Group was integrated into Nixdorf to form Siemens

Nixdorf Informationssysteme AG (SNI). The integration of Siemens and Nixdorf represents a major expansion of the company. Although the company plaimed to increase business volume by nearly

DM 6 biUion (U.S.$3.7 billion), in April 1991,

Siemens AG aimounced that Siemens Nixdorf

In addition, several structural changes took place within the company. The former Peripherals and Terminals Group was dissolved as of April 1, 1990; its fields of operation were assigned to units involved in related product hnes.

Currendy, Siemens AG has 13 business groups, 2 special divisions, and 1 legally independent unit. The

13 business groups include: Industrial and Building

0011569

©1991 Dataquest Incorporated November—^Reproduction Prohibited

1

Siemens AG

Systems, Drives and Standard Products, Automation,

Automotive Systems, Power Generation (KWU),

Power Transmission and Distribution, Semiconductors, Medical Engineering, Public Communication

Networks, Passive Components and Electron Tubes,

Private Communication Systems, Defense Electronics, and Transportation Systems. The two special divisions are Audio and Video Systems and Electromechanical Components; the legally independent imit is Osram GmbH.

Siemens' strategy is to further enhance its position in

Europe in aU important sectors of electrical engineering and electronics while continuing to build a broad business base in the United States. Siemens' goal in the new German states is to achieve the same market position that it enjoys iu the western part of the country. Over the next few years, Siemens plans to invest more than DM 1 billion in the new German estates and to employ locally some 25,000 to 30,000 people in research and development, production, distribution, installation, and service. Ehiring 1990, Siemens employed 373,000 people worldwide, which is a 2 percent increase from 1989. totaled DM 7.0 bUHon (U.S.$4.4 billion) in fiscal

1990, representing 7.0 percent of revenue. In fiscal

1990, approximately 43,000 employees worldwide were engaged in R&D activities. About 90 percent of the R&D work was carried out by the operating groups, while the remaining 10 percent was done by the Corporate Research and Development and the

Corporate Production and Logistics Division.

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate highlights and revenue by region. Information is not available on revenue by distribution chaimel. Tables 3 through 7 at the end of this backgrounder present comprehensive financial information. The financial information does not include Nixdorf Computer AG because its consohdation will not be completed until the 1990 to

1991 fiscal year.

BUSINESS SEGMENT STRATEGIC

DIRECTION

Siemens' sales by business segment, excluding intersegment sales, were as follows for fiscal 1990: Power

Generation, 5.8 percent; Power Transmission and

Distribution, 5.0 percent; Industrial and Building Systems, 7.6 percent; Drives and Standard Products,

6.3 percent; Automation, 5.5 percent; Data and Information Systems, 7.7 percent; Private Communication

Systems, 4.8 percent; Defense Electronics;-1.1 percent; Transportation Systems, 1.2 percent; Automotive Systems, 1.8 percent; Medical Engineering,

6.6 percent; Public Communication Networks,

9.1 percent; Semiconductors, 2.0 percent; Passive

Components and Electron Tubes, 1.7 percent; Electromechanical Components, 0.8 percent; Audio and

Video Systems, 0.1 percent; Osram, 2.6 percent; Hell,

1.0 percent

Data and Information Systems

The activities of Data and Information Systems were transferred to Siemens Nixdorf Informationssysteme

AG in October 1990. ^ t h a spectrum ranging ftom notebook PCs to advanced mainframes, from organizational-isolutions for offices and plants to networks for large companies with global operations,

Siemens Nixdorf Iirformationssysteme AG is the largest European computer manufacturer.

Total revenue increased by 20.7 percent to

DM 63 biUion (U.S.$39.2 bilUon) in fiscal 1990 from

DM 61 billion (U.S.$32.5 billion) in fiscal 1989. Net income increased 23.5 percent to DM 1.7 billion

(U.S.$1.1 billion) in fiscal 1990 from DM 1.5 bilUon

(U.S.$931 miUion) in fiscal 1989.

Research and development expenditure totaled

DM 7.0 billion (U.S.K3 billion) in fiscal 1990, representing 6.9 percent of revenue. Capital spending

The Data and Information Systems segment contributed significantly to Siemens' overall growth in 1990. New orders increased 15 percent to

DM 7.5 billion (U.S.$4.7 billion) and sales increased

28 percent to DM 7.7 billion (U.S.$4.8 billion) from

1989. This growth was significanfly higher than the industry average and increases were registered in both domestic and international markets. Siemens believes that a major share of this favorable business was attributable to BS2000-driven, general-purpose computers. For the third straight year, the MX300 and

MX500 Sinix computer families led both German and

European markets for multiuser computers using the

UNIX operating system. The company's market position for special systems, such as point-of-sale terminals, also continued to grow.

©1991 Dataquest Incorporated November—^Reproduction Prohibited

0011569

Siemens AG

Mainframes

The 7500 Series of general-purpose computers using the BS2000 operating system offers a broad spectrum ranging in performance from 1 to 100 mips, covering desktop units to large general-purpose computers. The

BS2000, with its high degree of upward compatibiUty, is seen as a main foundation for development and has been merged with BASF's plug-compatible marketing arm to fonn Coinparex. Siemens is attempting to gain more market share in the IBM mainframe market.

Midrange

Growth in the MX300 and MX500 Sinix computer famihes led both Grerman and European markets for multiuser computers using UNIX operating systems.

The MX300 and MX500 systems can coimect up to

24 and 64 terminals, respectively. During 1990, the

WX200 Sinix workstation was one of the new products introduced. Siemens suppUed one of the largest supphers of UNIX-based multiterminal systems in Europe. crucial standards-making committees of the CCll'l'. It is strongly entrenched in Eiu-ope and has a solid reputation for weU-engineered and well-manufactured products. It also has developed an expertise in ISDN.

Siemens plans to install 200,000 lines in the former

East Germany and to acquire a large share of this market.

In 1990, ROLM Systems, which develops and manufactures communications systems, was integrated into Siemens Private Commimication Systems Inc. (SPCS). ROLM Company, however, is a joint venture that is equally owned by IBM Corporation and Siemens. It distributes the communications systems in the United States manufactured by ROLM

Systems.

Personal Computers

MS-DOS PC sales ahnost doubled during fiscal 1990.

Growth was especially high in the high-performance category. This was, in part, the result of developing a highly regarded line of fiiUy MS-DOS-compatible PC models. The two main lines are the PC D-2, which is based on the Intel 80286 processor, and the PC D-3, which is based on the 80386 processor.

Industry Standards

Siemens strongly supports European data processing standards and was a founding member of the X Open group of European Companies working on development of a common appUcations environment

PBX

In October 1990, Siemens reorganized its PBXrelated communications businesses in the United

States. This created a new company called Siemens

Private Communication Systems Inc. This new company includes ROLM Systems, Tel Plus Communications and Siemens' interest in ROLM Company, a

50-50 joint venture with IBM. ROLM is the third largest PBX supplier in the United States, with

14.0 percent market share, while Siemens ranks sixth witii 3.9 percent SPCS will include a PBX development division, a manufacturing plant, and the Gold

Seal Dealer marketing and government sales units.

Part of the new company will also include such support functions as financial controls, strategic planning, market research, and marketing communications.'During 1990, the company's business in Spain and the Netherlands developed particularly well.

Peripherals and Terminals

Although the peripherals and terminals accoimted for about one-fifth of the Peripherals and Terminals

Group business in 1989, the activities were transferred to Data and Information Systems of Siemens

Nixdorf Informationssysteme during 1990. The strongest growth was in personal computers, fax machines, office printers, and telephone terminals, especially digital feature phones.

ISDN

This btisiness is expected to grow because of the computer-aided telephony access to ISDN. Smaller systems and worldwide networking are examples of services that offer additional benefits. In an effort to avoid problems, including interoperability, that have stood in the way of the acceptance of ISDN, an agreement was made between AT&T, Northern Telecom, Inc., and Siemens Stromberg-Carlson to implement key ISDN standards. The companies hope that the service may be extended to nuUions of users by the end of 1992.

Telecommunication

In the telecommunication business, Siemens has a global presence as a participant or leader in all of the

Digital Public Telephone Switching System

Siemens entered into alliances in eastern Germany with former state-owned businesses, including a

0011569

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Siemens AG

Leipzig plant that will manufacture public telephone switching systems (EWSD). The merger of

Stromberg-Carlson with U.S.-based Siemens Communication Systems Inc. provided additional market share in the United States. During fiscal 1990, 107 telecommunication administrators worldwide ordered

EWSD exchanges. A total of approximately 28 million lines were ordered or delivered, which is an increase of approximately 50 percent over fiscal

1989. In addition, the first contract for the installation of a digital telephone network was signed in the new

German states.

Semiconductors

Siemens reached a technological level equal to that of its major competitors with the Mega Project, its megabit DRAM development project Although shipments of 4Mb DRAMs doubled during 1990, revenue dropped because of falling prices. During fiscal 1990, the semiconductor business was marked by a dramatic fall in memory prices and fierce competition, precipitated by excess capacity on the world market and the declining exchange rates of the dollar and the yen.

Defense

In the defense sector, the acquisition of Plessey operations strengthened its competitive position. The integration of two British companies, Siemens Plessey Defence Systems Ltd. and Siemens Plessey Radar

Ltd., provided Siemens with local production facilities in two of Europe's key regional markets—Great

Britain and Germany.

Higher sales volumes were generated primarily by the

Patriot air defense missile system. Siemens is the general contractor in charge of adapting Patriot for

German defense requirements. Current political developments are expected to cause substantial changes in the structures of NATO and the German

Federal Armed Forces and will, therefore, affect previously planned development and procurement projects.

In fiscal 1990, the Semiconductor group's new orders decreased 12 percent to DM 2.1 billion

(U.S.$1.2 billion) and sales decreased 12 percent to

DM 2.0 biUion (U.S.$1.1 billion). Siemens attributes this drop in revenue to the dramatic fall in semiconductor prices, fierce competition, and the declining exchange rates of the dollar and the yen.

In addition, IBM and Siemens signed an agreement to manufacture 16Mb DRAM chips at IBM's facility in

Corbeil-Essonnes, France. Production is to begin at the end of 1991, with output set for the second half of

1992.

Further Information

For further information about the company's business segments, please contact the appropriate Dataquest industry service.

©1991 Dataquest Incorporated November—^Reproduction Prohibited

0011569

Siemens AG

Table 1

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

Five-Year Revenue

Percent Change

Capital Expenditure

Percent of Revenue

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue ($K)/Employee

Net Income

Percent Change

Exchange Rate (U.S.$1=DM)

1990 Fiscal Year

Quarterly Revenue

Quarterly Profit

NA = Not available

1986

21,669.6

1.17

3,155.8

6.71

2,488.9

5.29

359,000

60.36

679.3

30.71

2.17

Ql

NA

NA

1987

28,572.8

31.86

2,951.7

5.74

3,450.6

6.71

359,000

79.59

708.3

4.28

1.80

Q2

NA

NA

1988

33,356.2

16.74

1989

32,514.9

(2.52)

4,187.4

6.85

1990

39,245.3

20.70

2,927.0

4.93

3,640.4

6.13

353,000

94.49

781.5.1

10.32

3,656.9

5.98

365,000

89.08

838.8

7.34

1.88

4,388.8

6.95

4,335.4

6.86

373,000

105.22

1,036.0

23.51

1.61

1.78

Q3 Q4

NA

NA

NA

NA

Source: Siemens AG

Aimual Reports

Dataquest (November 1991)

Table 2

Revenue by Geographic Region (Percent)

Region

Germany

International

1986

45

55

1987

51

1988

48

1989

47

53

1990

45

55

Source: Siemens AG

Aimual Reports

Dataquest (November 1991)

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1990 SALES OFFICE LOCATIONS

North America—^70

Europe—88

Asia^acific—^25

Japan—2

ROW—60

MANUFACTURING LOCATIONS

Infonnation is not available.

SUBSIDIARIES

i^orih America

Nixdorf Computer Corporation

Siemens Automotive Ltd. (Canada)

Siemens Electric Ltd. (Canada)

Siemens Automotive L.P. (United States)

ROLM Systems (United States)

Siemens Private Communication Systems Inc.

(United States)

Siemens Components Inc. (United States)

Siemens Energy & Automation Inc. (United States)

Siemens Information Systems (United States)

Siemens KWU Inc. (United States)

Siemens Medical Systems Inc. (United States)

Ostram Ltd. (England)

Osram S.A. (France)

Osram S.A. (Spain)

Osram-GEC Ltd. (United Kingdom)

Osram Societa Ruinite Osram Edison-Qerici S.p.A.

(Italy)

Rofin-Sinar Laser GmbH (Germany)

Siemens AB, Stockholm (Sweden)

Siemens A.E., Elektrotechnische Projekte und

Erzeugnisse (Greece)

Siemens AG Osterreich (Austria)

Siemens-Albis AG (Switzerland)

Siemens A/S (Denmark)

Siemens A/S, Oslo (Norway)

Siemens Automotive S.A (France)

Siemens BeteUigungen AG (Switzerland)

Siemens-Elema AB (Sweden)

S i e m e n s F i n a n z i e r u n g s g e s e l l s c h a f t furr

Informationstechnik GmbH (Germany)

Siemens Ltd., Dublin (Ireland)

Siemens Ltd., London (United Kingdom)

Siemens Matsushita Components GmbH & Co.

(Germany)

Siemens Miet- und Portfolio- GmbH &, Co. OHG,

(Germany)

Siemens Nederland N.V. (Netherlands)

Siemens Osakeyhtio (Finland)

Siemens pic (England)

Siemens Plessy Electronic Systems Ltd. (England)

Siemens S.A. (Belgium)

Siemens S.A. (France)

Siemens S.A., Lisbon (Portugal)

Siemens S.A., Madrid (Spain)

Siemens_Sj).A. (Italy)

Siemens Telecomunicazioni S.p.A. C^taly)

Siemensstadt-Gnmdstucksverwaltung GmbH & Co.

(Germany)

Sietec Siemens-Systemtechnik imd Portfolio GmbH

& Co. (Germany)

Simko Ticaret ve Sanayi (Turkey)

Turk Siemens Kablo ve Elektrik Sanayii A.S.

CHirkey)

Vacuumschmelze GmbH (Grermany)

Europe

ATEA N.V. (Belgium)

Dr.-Ing Rudolf Hell GmbH (Germany)

Duewag AktiengeseUschaft

Heimaim GmbH (Germany)

Interatom GmbH (Germany)

Nixdorf AG (Switzerland)

Nixdorf Computer AG (Germany)

Nixdorf Computer France S.A. (France)

Nixdorf Computer Ges.m.b.H. (Austria)

Nixdorf Computer Ltd. (England)

Nixdorf Computer S.A (Spain)

Nixdorf Computer A.G. (Switzerland)

NRG Nuklearrohr-Gesellschaft GmbH (Germany)

Osram GmbH (Germany)

Japan

Siemens K.K. (Japan)

ROW

Equitel S.A. (Argentina)

Osram Argentina S.A.C.I. (Argentina)

Osram do Brasil-Companhia de Lampadas Electricas

S.A. (Brazil)

©1991 Dataquest Incorporated November—Reproduction Prohibited

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Siemens AG

Osram S.A. de C.V. (Mexico)

Siemens Components (Pte.) Ltd. (Singapore)

Siemens Components Sdn. Bhd. (Malaysia)

Siemens Ltd. (AustraUa)

Siemens Ltd. (India)

Siemens Pakistan Engineering Co. Ltd. (Pakistan)

Siemens Ltd. (South Africa)

Siemens S.A. (Columbia)

Siemens S.A. (Venezuela)

Siemens S.A. de C.V. (Mexico)

Siemens S.A., Sao Paulo (Brazil)

PBX will supply customers with ISDN-LAN connections.

IBM Corporation

IBM and Siemens signed a contract to build a factory that wiU manufacture 16Mb DRAM microprocessors at an estimated cost of $7(X) million. The facility is planned to be located in

CorbeU-Essonnes. The agreement leaves room for additional partners providing the plant produces more microprocessors than the two companies need themselves. As part of the agreement Siemens will use the chips in specialized products, while IBM wiU use the chips in its own machines.

Siemens S.A.I.C.F.I.yM. (Argentina)

Siemens Western Finance N.V. (Netherlands Antilles)

Taicom Systems Ltd. (Taipei)

Matsushita Electric Industrial Company Ltd.

Matsushita and Siemens Nixdorf Informationssysteme AG signed an alliance to exchange personal computers in Europe. Siemens will sell Mat-

ALLIANCES, J O I N T VENTURES, AND

LICENSING A G R E E M E N T S

1991

sushita notebook computers under its own name, and Matsushita will seU Siemens machines under its Panasonic trade name in Europe. Under the agreement, the equipment wiU be jointly developed by both companies' R&D operations in their respective countries.

Appian Technology

Appian Technology signed an agreement to supply

Siemens with custom VGA graphics boards for a range of personal computers.

Motorola Incorporated

Motorola and Siemens agreed to joindy market equipment for contracts imder a $30 billion Euro-

AT&T, Siemens Stromberg-Carlson, and Northern pean cellular network.

Telecom Inc.

Nippon Telephone and Telegraph (NTT)

An agreement was developed among AT&T, Siemens Stromberg-Carlson, and Northem Telecom

Inc. These companies will begin to implement

NTT selected Siemens to participate in the development of the \^sual. Intelligent and Personal program. Fiber optic cables and the asynchronous

ISDN standards in order to extend the service to transfer mode principle will be the technological minions of users by 1992. .. . .

—basis of-vaiieus services for speech, text, data, and pictures.

China Great Wall Industry

Siemens signed an agreement that allows two factories to build the Hicom 3(K) private branch exchange system. The agreement was signed with

China Great Wall Industry and permits each of the factories to produce up to 100,(XX) subscriber lines per year within 4 years.

Storage Technology Corporation

Storage Technology and Siemens Nixdorf agreed to merge their nonimpact printer operations in the

United States in a joint venture that became operational in January 1991. Siemens Nixdorf owns 51 percent, and Storage Technology owns 49 percent

GPT Ltd.

GPT Ltd. and Siemens AG merged their British

PABX distribution operations to create a joint venture. GPT Sales and Service and Siemens Communications Systems are being merged to form GPT

Communications Systems. Siemens will have a

50 percent ownership.

SynOptics Communications Inc.

Siemens signed a three-year OEM agreement with

SynOptics Communications (Santa Clara, California) in which Siemens wiU market LAN products such as concentrators, ethemet, and token-ring connections in Europe.

Gandalf Technologies

Siemens and Gandalf Technologies have agreed to jointly market Gandalf's communications server and Siemen's PBX. Under the agreement,

Gandalf's Starmaster server and Siemen's Hicom

1990

VEB Robotron

Siemens and VEB Robotron plan to enter into a joint venture. The software and computer systems company will be based in Dresden.

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Siemens AG

BB-Data GeseUschaft

Siemens and BB-Data GeseUschaft fuer

' Infonnations-und Kommumkationssysteme are to cooperate in marketing the BB-Data Domino

CASE tool. The companies also will jointly market tools for Computer Reverse Engineering (CARE).

Siemens will support BB-Data in the development of further Domino products.

Digital Equipment Corporation, Hewlett-Packard

Company, IBM Corporation, Unisys Corporation

Siemens has established worldwide PBX and computer teaming alliances with Digital Equipment,

Hewlett-Packard, IBM, and Unisys to provide voice/data solutions to end users. wiU market and support Saber as an OEM product worldwide, integrated with its SIGRAPH-EL product line.

General Electric Aerospace, Thompson-CFS,

Thorn EMI

Siemens, General Electric Aerospace, Thompson-

CFS, and Thorn EMI signed a memorandum of

' understanding establishing a consortium known as

Euro-Art. The consortium will develop an advanced groimd-based weapons-locating radar for the armed forces of France, Germany, and the

United Kingdom.

SGS-Thompson

Siemens and SGS-Thompson agreed to cooperate in the field of high-performance microcontrollers.

The objective is to provide a comprehensive and integrated common solution for high-end 8-bit and

16-bit MCU applications. Siemens and SGS-

Thompson also entered into a cooperative agreement wherein both companies agreed to act as second sources for each other's high-performance microcontrollers in 8-bit and 16-bit applications.

MAP Deutschland

Siemens and MAP Deutschland entered into a cross-licensing pact covering Siedcon connector and RV-100-4 transfer systems for the connectors.

The products are produced by the Electromechanical Component Divisions of the respective companies with Siemens manufacturing the connectors and MAP producing the transfer system.

Rational

Siemens and Rational are to cooperate on the Ada programming language for computer-aided software engineering (CASE). The move is intended to help both companies expand in the

CASE sector.

Unitrode

Siemens and the Micro Networks Division of Unitrode entered into a licensing agreement. Under the agreement, Micro Networks wiU sell Siemens' high-speed flash A/D converters. The licensing agreement initially covers the purchase and repackaging of Siemens' 6-bit and 8-bit, 75-MHz to

300-MHz sampling A/Ds.

Coming

Siemens and Coming have agreed to joindy develop passive fiber-optic transmission compo-

—aents that will-help iMing optical communications technology to the home.

Chinon Industries Inc.

Siemens and Chinon Industries entered into an agreement to cooperate in the development, production, and marketing of peripherals for PCs and of communications devices. The companies also plan to cooperate in the development of facsimile machines and image scanners.

1988 to 1989

MIPS Corporation

Siemens bought MIPS' design for the newest

32-bit RISC microprocessor.

VEB Numerik Karl Mark, VEB Niles, WMV

International Handelgesellschaft

Siemens, VEB Numerik Karl Mark, VEB NUes, and WMV International Handelgesellschaft will form a joint venture to produce electrical and electronic machine tool equipment.

BASF (Comparex)

BASF agreed to manage Siemens' IBMcompatible, non-Fujitsu-based mainframes.

Iskra

The companies are manufacturing telecom equipment (EWSD).

Analogy Inc.

Siemens and Analogy entered into an OEM agreement. Under the terms of the agreement, Siemens

ROLM Systems

Siemens acquired this telecom product marketing and servicing company.

i

©1991 Dataquest Incorporated November—Reproduction Prohibited

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Siemens AG

Advanced Integrated Circuit Design Aids (AIDA)

AIDA is developing semiconductor technology.

M E R G E R S AND ACQUISITIONS

AMD

The companies are developing a common chipsets for ISDN. AMD second sources Siemens' 80515 and 82258 DM A controllers.

1991

JESSI

Siemens participates in JESSI to develop semiconductor technology with Philips and Thomson.

Anlagenbau Teltow

.. Siemens confirmed that it will buy Anlagenbau

Teltow, the BerUn-based electrical components manufacturer.

Megaproject

Siemens is developing DRAMs and SRAMs with

Philips.

Cardion Electronics Inc.

Siemens acquired Cardion Electronics Inc. from

Ferranti International of England. The company manufactures and markets commercial and defense electronic navigation systems. The new name of the company is Cardion Inc.

Open Software Foundation (OSF)

Siemens joined this UNIX development standards group.

'Toshiba and General Electric

The companies are participating in the development of standard cell libraries.

EG&G Inc.

EG&G Inc. of Wellesley, Massachussetts, signed a letter of intent to acquire a majority interest in

Heimann, subsidiary of Siemens AG. Heimann

GmbH is a producer of optoelectronic devices based in Wiesbaden, Germany.

Acer

The companies have an OEM agreement to resell the mdustrial PC 16-05.

Apollo

The companies have an OEM agreement covering die bottom end of midrange computers.

Fujitsu

The companies have an OEM agreement to resell the MX500 processor and VP Series of vector processors.

NEC

The companies have an OEM agreement to resell die NEAX2400 PBX.

Ferranti Business Communications

Ferranti Business Communication was acquired by

Siemens. Siemens will relocate the firm to its new site in Manchester.

GPT

Siemens Communications Systems and GPT Sales and Services, the largest UK telecommunications

• manufacturer, have agreed to merge their British distribution companies for computerized switchboards. Siemens and GEC will each indirectiy own

17 percent of the venture directly with the remainder coming through its 40 percent stake of

GPT. The venture will be financially consolidated into GPT, which wUl own 83 percent

Sequent

The companies have an OEM agreement to resell

UNIX equipment and products.

Taylorix

Siemens manufactures PCs for resale.

Relcon

Relcon, producer of electronic drive systems, has been acquired by ASI, a Siemens division that is involved in drive and switchboard technology. \^a

Relcon products, Siemens aims to increase it presence in the electronic drive systems markets in the

United States and Mexico.

Toshiba

Siemens is licensed to manufacture 1.2-micFon

CMOS 1Mb DRAMs.

Zenith

The companies have an OEM agreement to resell

80286-based laptops.

Texas Instruments Inc.

Texas Instruments Inc. signed a letter of intent to sell its Industrial Controls unit to Siemens Corp.

Included in the sale are TI's products, facilities equipment, and sales/support activities.

0011569

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Siemens AG

1990

Dr.-Ing Rudolf Hell GmbH

Linotype AG acquired Dr.-Ing, parent company being Siemens. Siemens will be the largest shareholder, with 33 1/3 percent of the stock.

GPT Ltd.

GPT Ltd. and Siemens AG merged their ,.U.S. operations. The new company is called Siemens

Stromberg-Carlson. Siemens and GPT will each own 50 percent.

KEY O F F I C E R S

Karlheinz Kaske, Dr.-Ing.

President and CEO

Karl-Hermann Baumann, Dr.rer.oec.

" Executive vice president. Corporate Finance

Heinrich von Pierer, Dr. jur.

Vice chairman

Mannesmann Tally GmbH

Siemens acquired Mannesmann, a computer printer manufacturer, and merged it into Siemens' Office

Products Division. Mannesmann is now 51 percent owned by Mannesmann AG and 49 percent by

Siemens AG.

Nixdorf Computer

Siemens AG acquired 78 percent of Nixdorf Computer. The new company, a majority-owned subsidiary of Siemens called Siemens-Nixdorf Informationssyteme AG, combines the Siemens data and information systems activities with those of

Nixdorf.

1989

Hermann Franz

Executive vice president. Corporate Planning and

Development

Claus Kessler, Dr.-Ing

Executive vice president. Corporate Production and Logistics

Hans-Gerd Neglein

Executive vice president, regional administrator

Hans Baur, Dr.-Ing

Executive vice president

Klaus Barthelt, Dr.-Ing.E.h.

Executive vice president

Horst Langer, Dr.-Ing

Executive vice president

ROLM Company

Siemens acquired ROLM from IBM.

The Plessey Company

In partnership with Britain's General Electric Company (GEC), Siemens acquired The Plessey Company, an electronics firm based in Dford, Essex,

England.

PRINCIPAL INVESTORS

Information is not available.

1988

Allied Signal Inc.

Siemens AG acquired Bendix Electronics Group from AlUed Signal Inc. to strengthen its position in the automotive electronics market

F O U N D E R S

Information is not available.

10

©1991 Dataquest Incorporated November—Reproduction Prohibited

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Siemens AG

Table 3

Balance Sheet

Fiscal Year Ending September 30

(Millions of U.S. Dollars)

Balance Sheet

Cash*

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity*

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

Exchange Rate (U.S.$1=DM)

*Other capital is paid-in coital.

NA = Not available

1986

0

" • 6,644.2

NA

1,119.4

10,013.8

17,777.4

5,701.4

741.5

24,220.3

1,914.9

11,088.0

3,955.3

16,958.2

21.3

1,085.5

2,690.0

3,465.3

7,262.0

1987

0

•8,141.1

NA

1,009.4

12,805.6

21,956.1

7,467.2

1,067.8

30,491.1

1,958.9

14,334.1

5,139.6

21,432.6

25.7

1,324.4

3,348.0

4,360.4

9,058.5

24,220.3

2.17

30,491.1

1.80

1988

0

-8,858.4

NA

2,200.6

13,465.2

24,524.2

7,653.4

1,315.2

33,492.7

2,193.5

16,021.7

5,370.9

23,586.1

26.0

1,349.0

3,445.4

5,086.2

9,906.6

1989

0

10,206.5

10,364.5

3,663.6

963.0

25,197.7

7,394.3

1,661.4

34.253.3

2,248.3

16,388.5

5,747.7

24,384.4

24.6

1,299.8

3,471.6

5,072.8

9,868.9

1990

00

11,907.0

9,743.1

4,542.9

2,304.8

28,497.8

8,978.9

2,554.3

40,031.1

2,520.6

19,773.7

6,831.7

29,126.0

28.7

1,591.4

4,590.7

4,694.2

10,905.1

33,492.7

1.78

34,253.3

1.88

40,031.1

1.61

Source: Siemens AG

Annual Reports and Fonns 10-K

Dataquest (November 1991)

0011569

©1991 Dataquest Incorporated November—Reproduction Prohibited

11

Siemens AG

Table 4

Consolidated Income Statement

Fiscal Year Ending September 30

(Millions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

Domestic

International

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (U.S.$1=DM)

-

1986

21,669.6

10,184.3

11,485.3

25,508.3

2,488.9

9,807.1

3,155.8

1,245.6

5.75

46.00

679.3

48.0

14.01

5.53

143.59

2.17

1987

28,572.8

13,896.1

14,676.7

20,478.9

3,450.6

12,715.5

2,951.7

1,443.3

5.05

50.00

708.3

48.6

13.94

6.11

177.56

1.80

1988

33,356.2

17,278.1

16,111.8

23,552.8

3,640.4

13,397.3

2,927.0

1,390.4

4.17

44.00

718.5

48.9

1989

32,514.9

15,132.4

17,382.4

13,409.6

3,656.9

13,778.8

4,187.4

1,482.8

4.56

43.00

838.8

49.8

15.11

6.18

193.48

1.78

15.74

6.65

190.74

1.88

18.45

8.07

199.94

1.61

Source:

Siemens AG

Annual Reports and Fonns 10-K

Dataquest (November 1991)

1990

39,245.3

17,609.9

21,635.4

16,618.0

4,335.4

16,762.8

4,388.8

1,753.5

4.47

43.00

1,036.0

52.2

12

©1991 Dataquest Incorporated November—Reproduction Prohibited

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Siemens AG

Table 5

Balance Sheet

Fiscal Year Ending September 30

(Millions of Deutsche Marks)

Balance Sheet

Cash*

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity*

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

Exchange Rate (U.S.$1=DM)

*OtheT capital is paid-in coital.

1986

0

14,418.0

0

2,429.0

21,730.0

38.577.0

12,372.0

1,609.0

52,558.0

4,155.4

24,060.9

8,583.0

36,799.4

46.2

2,355.5

5,837.3

7,519.6

15,758.6

52,558.0

2.17

1987

0

14,654.0

0

1,817.0

23,050.0

23,050.0

39,521.0

1,922.0

54,884.0

3,526.1

25,801.3

9,251.3

38,578.7

46.2

2,383.9

6,026.4

7,848.8

16,305.3

54,884.0

1.80

1988

0

15,768.0

0

3,917.0

23,968.0

43,653.0

13,623.0

2,341.0

59,617.0

3,904.5

28,518.6

9,560.2

41,983.3

46.2

2,401.2

6,132.9

9,053.4

17,633.7

1989

0

19,188.2

19,485.3

6,887.6

1,810.5

47,371.6

13,901.2

3,123.4

64,396.2

4,226.8

30,810.3

10,805.6

45,842.7

46.2

2,443.7

6,526.7

9,536.9

18,553.5

1990

0

19,170.3

15,686.4

7,314.1

3,710.7

45,881.5

14,456.1

4,112.4

64,450.0

4,058.1

31,835.7

10,999.0

46,892.8

46.2

2,562.2

7,391.1

7,557.7

17,557.2

59,617.0

1.78

64,396.2

1.88

64,450.0

1.61

Souice: Siemens AO

Annual Reports and Forms 10-K

Dataquest (Novembor 1991)

0011569

©1991 Dataquest Incorporated November—Reproduction Prohibited

13

Siemens AG

Table 6

Consolidated Income Statement

Fiscal Year Ending September 30

(Millions of Deutsche Marks, except Per Share Data)

Consolidated Income Statement

Revenue

Domestic

International

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Millions

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate (U.S.$1=DM)

1986

47,023.0

22,100.0

24,923.0

55,353.0

5,401.0

21,281.3

6,848.0

2,703.0

5.7

46.00

1,474.0

48.0

30.40

12.00

311.60

2.17

1987

51,431.0

25,013.0

26,418.0

36,862.0

6,211.0

22,887.9

5,313.0

2,598.0

5.1

50.00

1,275.0

48.6

25.10

11.00

319.60

1.8

1988

59.374.0

30,755.0

28,679.0

41,924.0

6,480.0

23,847.2

5,210.0

2,475.0

4.2

44.00

1,391.0

48.9

26.90

11.00

344.40

1.78

1989

61,128.0

28,449.0

32,679.0

25,210.8

6,875.0

25,904.2

7,872.4

2,787.6

4.6

43.00

1,577.0

49.8

29.60

12.50

358.60

1.88

1990

63,185.0

28,352.0

34,833.0

26,754.9

6,980.0

26,988.1

7,066.0

2,823.1

4.5

0

1,668.0

52.2

29.70

13.00

321.90

1.61

Source: Siemens AG

Annual Reports and Foims 10-K

Dataquest (November 1991)

Table 7

Key Financial Ratios

Fiscal Year Ending September 30

Key Financial Ratios

Liquidity

Current (Times)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue (DM K)/Employee

Capital Spending % of Assets

Exchange Rate (U.S.$1=DM)

1986

9.28

333.52

26.37

233.52

0.06

0.09

3.13

11.49

14.56

359,000

130.98

28.27

1987

11.21

336.60

21.63

236.60

0.04

0.08

2.48

12.08

10.33

359,000

143.26

17.42

2.17

1988

11.18

338.09

22.14

238.09

0.04

0.08

2.34

10.91

8.77

353,000

168.20

15.56

1.8

1989

11.21

347.08

22.78

247.78

0.05

0.08

2.58

11.25

12.88

365,000

167.47

22.98

1.78

1990

11.31

367.09

23.11

26.09

0.04

0.10

2.64

11.05

11.18

373,000

169.40

17.65

1.88

Source: Siemens AG

Annual Reports and Forms 10-K

Dataquest (November 1991)

14

©1991 Dataquest Incorporated November—Reproduction r*rohibited

0011569

Sony Corporation

7-35, Kitashinagawa 6-chome

Shinagawa-ku

Tokyo 141, Japan

Telephone: (03) 448-2111

Fax: (03) 448-2244

Dun's Number: 04-065-3636

Date Founded: 1946

MciMst

CORPORATE STRATEGIC DIRECTION

Sony Corporation, founded in Tokyo in 1946, is one of the world's leading manufacturers of video and audio equipment, televisions, displays, semiconductors, computers, computer peripherals, factory automation equipment, and engineering workstations.

Sony's business philosophy is to provide innovative and attractive products to its customers worldwide.

Sony is one of Japan's leaders in global marketing; it had ¥3.6 trillion (IJ.S.$25.6 billion) in revenue for the fiscal year ended March 31, 1991. Because of its strong international customer base, the company is especially susceptible to fluctuations in international trade markets. The Gulf War, which occurred during fiscal 1991, had severe repercussions in the world economy and directly affected Sony's performance.

The United States entered a recession in the second half of the year, the European economy evidenced sluggish performance, and the Japanese economy faced higher interest rates. Even with this difficult environment, Sony attained the highest sales and profit figures in the company's history. Sony points to strong growth in its electronics and entertainment industries as the key factors in its growth.

Sony's long-term strategy to improve product performance and meet customer expectations includes the following policies:

• In consumer electronics, Sony will strive to accelerate the development and marketing of attractive and original products. Expansion will occur in such areas as high-definition television

(HDTV) products and information-related equipment for the home.

• In industrial electronics, Sony will seek to strengthen its operations in broadcast- and professional-use videocassette recorders and players (VTRs) and displays while addressing a varied spectrum of market needs. Other areas of targeted growth include recording media, semiconductors, electronic components, computer systems, information processing, and telecommunications.

• Sony will intensify its activities in the entertainment field by strengtiiening its music and imagebased software operations, and by creating synergy with its electronics business. Efforts will be centered on Sony Music Entertainment Inc. (known before January 1, 1991, as CBS Records Inc.) and

Columbia Pictures Entertainment Inc.

• Sony has committed to a companywide efficiency upgrade in aU areas of business, as well as to the promotion of more efficient allocation of the company's capital, personnel, and management resources.

• Sony will seek to bring aU facets of its overseas operations, including procurement of components,

R&D, production, and marketing, in closer contact with local communities.

Sony's ¥3.6 tiillion (U.S.$25.6 billion) total revenue for the year ended March 31, 1991, represents an increase of 27.11 percent over the year ended March

31, 1990. The increase in sales was led by a

178.4 percent increase in filmed entertainment revenue. Television sales increased 33.2 percent, video equipment sales grew 23.7 percent, and audio equipment sales increased 23.5 percent. Growth of

30.6 percent in the other products group can be attributed to the strong growth of information-related equipment (Percentage changes refer to U.S. dollar amounts.)

Sony is an international company with 26.3 percent of its sales occurring in Japan, 29.2 percent in the

United States, 28.1 in Europe, and 16.4 percent in all other regions. Europe posted the highest growth rate, iucreasing sales 43.9 percent, while the United States grew 24.4 percent and other international maikets grew 37.3 percent The Japanese market grew at a significantiy lower rate of 10.9 percent

0012422

©1992 Dataquest Incorporated January—^Reproduction Prohibited

I

Sony Corporation

Net income increased 13.7 percent to ¥116.9 billion

(U.S.$829.3 million) in fiscal year 1991 from

¥102.8 billion (U.S.$654.8 million) for fiscal 1990.

Sony employed approximately 112,900 people in

1990, an increase of 18.1 percent over the 1990 year-end total of 95,600 employees.

More detailed information is available in Tables 1 and

2, which appear after "Business Segment Strategic

Direction" and present corporate higUights and revenue by region. Information on revenue by distribution channel is not available. Tables 3 through 7 at the end of this backgrounder present comprehensive financial information.

R«&D expenditure increased 24.6 percent to

¥205.8 bilUon (U.S.$1.2 billion) for the year ended

March 31, 1991, fi-om ¥165.2 biUion (U.S.$1.2 bil-

Uon) in the year ended March 31, 1990. R&D represented 5.7 percent of revenue for the year ended

March 31, 1991. Capital expenditure for the year ended March 31, 1991, increased 27.1 percent from the previous year's ¥323.8 billion (U.S.$2.3 bilhon) to ¥411.7 billion (U.S.$2.9 billion), representing

11.4 percent of total revenue. The increased expenditure primarily was used for expanding production facilities for semiconductors; image-based devices such as color picture tubes; magnetic products; and audio and video equipment. About 35 percent of the capital development expenses were appropriated for overseas facilities. Sony intends to maintain a high level of capital investment and expects next year's expenditure to exceed this year's figure.

BUSINESS S E G M E N T STRATEGIC

D I R E C T I O N

Lines of Business

Video Equipment

The video equipment product group revenue totaled

¥908 biUion (U.S.$6.4 bilhon) for die year ended

March 31, 1991, or 25.1 percent of sales. Products include VTRs, video cameras, camcorder systems, videotapes, optical videodisk players, and highdefinition video systems.

Audio Equipment

Sony's pohcy is to base its manufacturing operations in markets where its products are sold. By doing this,

Sony brings its products closer to customers and avoids trade problems and exchange rate variations.

Accordingly, Sony maintains its principal manufacturing facihties in Japan, the United States, and Europe.

The audio equipment product group revenue totaled

¥883 billion (U.S.$6.2 biUion) for the year ended

March 31, 1991, or 24.4 percent of total sales.

Products include tape recorders, audiotapes, cassette players, car stereos, amplifiers, tuners, turntables, speaker systems, CD players, digital audiotape (DAT) recorders, headphones, microphones, and compact discs.

In January 1991, Sony Music Entertainment Inc.

(SMEI) and a subsidiary of Time-Warner Inc. formed

The Columbia House Company, a 50:50 partnership consisting of the former Columbia House Division of

SMEI. Columbia House is a direct marketer of music and home video products in the United States and

Canada.

Music Entertainment

In November 1989, Sony purchased Columbia Pictures Entertainment, adding image-based software to its software business. This purchase emphasized strengthening of the company's software operations primarily through the record and video business.

Sony's music entertainment business reported revenue of ¥474 bilUon (U.S.$3.4 bUUon) for the year ended

March 31, 1991, or 13.1 percent of total revenue.

Performers on the Sony label include Mariah Carey,

New Kids on the Block, George Michael, BiUy Joel,

Michael Bolton, Gloria Estefan, the Vaughan

Brothers, and Harry Connick, Jr.

TV Equipment

On January 5, 1988, Sony purchased CBS Records

Inc. and now holds 100 percent of the shares. The

U.S.$2 billion (¥256.5 billion) acquisition was based on Sony's beUef in the important relationship between the software and hardware sides of the consumer electronics business.

Sony's television product group reported revenue of

¥553.4 bUUon (U.S.$3.9 bilUon) for the year ended

March 31, 1991, or 15.3 percent of total revenue. Key products include color TVs and monitors, projection

TVs, JumboTRON, direct broadcasting sateUite reception systems, and security systems.

©1992 Dataquest Incorporated January—^Reproduction Prohibited

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Sony Corporation

Filmed Entertainment

Sony's filmed entertainment reported revenue of

¥257 billion (U.S.$1.8 billion), or 7.1 percent of sales for the year ended March 31, 1991. Fiscal 1991 fihn releases included Total Recall, Look Who's Talking

Too, Misery, Awakenings, Postcards from the Edge,

and Flatliners,

Other Products

Workstations

Sony Microsystems was formed in February 1988 to market Sony's NEWS workstation, a 32-bit UNIX workstation designed primarily for software development appUcations. Dataquest estimates that Sony had

6.6 percent of the worldwide workstation market share for calendar 1989. Dataquest estimates that

Sony ranked fourth in the entry-level workstation market with U.S.$137.2 million m factory revenue for

1989. Dataquest also estunates that Sony ranked third in the Japanese workstation market, with a 9.8 percent market share and $133.7 million in factory revenue.

The groups producing other products reported revenue of ¥543 billion (U.S.$3.8 billion) for the year ended March 31, 1991. Key products include the

3.5-inch microfloppy disk systems, microcomputers, workstations, CD-ROM systems, information processing systems, semiconductor devices, electronic components, dictating machines, word processors, induction cooking ranges, telephones, telecommunications systems, factory automation systems, batteries, accessories, and audio and video software.

Company Positioning

Computer Storage

In May 1990, Sony introduced its laptop NEWS workstation to the European market and later to the

Japanese market Sony had two major design goals for its new workstation, as follows:

• The same level of performance and fimctionahty as the NEWS desktop workstation

• Compatibility with NEWS software and hardware products

The laptop workstation is priced between $10,000 and $15,000 and is targeted toward the technical user with a requirement for a transportable, fuUy functional techiucal workstation.

Sony was one of the leading flexible disk drive

(FDD) vendors in 1990. Dataquest estimates that

Sony maintained its market leadership in the worldwide 3.5-inch FDD market with a 25 percent market share and $226.5 million ia factory revenue. We estimate that Sony shipped 5 million 3.5-inch disk drives in 1989. In the worldwide overall FDD

(3.5-inch and 5.25-inch) market, Sony dropped from third in 1989 to fourth in 1990, with a market share of

13.6 percent. Sony continues to emphasize the

3.5-inch market, beginning production of 3.5-inch drives in Malaysia in May 1990.

According to Dataquest estimates, Sony ranked first in the optical disk drive market in 1990 Avith

$125.6 million in factory revenue and a 36.2 percent market share. Sony dominates the rewritable market in optical disk drives with 49.0 percent of the market,

39,200 units shipped, and $49 miUion in factory revenue. Sony also moved up to second in the

12-inch write-once, read-many (WORM) drive market with a 29.9 percent market share and

$19.4 million in factory revenue.

Sony has entered the 3.5-inch rigid disk drive market

Dataquest expects Sony to offer a broad range of rigid drives with capacities between 40MB and

200MB and access times of less than 20ms.

In 1989, Sony introduced a RISC-based workstation using MIPS R3000 processors. Sony expanded its

NEWS line to include lower-priced models, and highperformance 32-bit CPU versions. Sony added desktop publishing software to the NEWS line of workstations.

Personal Computers

In July 1991, Sony released a new PalmTop series of personal computers, featuring the abiUty to input characters witii a ligjit pen. The PTC-300, weighing in at 35Sg, offers significant improvements in portability. Sony does not market its computers in the

United States and held less than 1 percent of the worldwide PC market, according to Dataquest estimates.

Semiconductors

Sony began marketing semiconductors in 1984 and currentiy produces a range of devices, including static random-access memory (SRAM) chips, chargecoupled devices (CCDs), and bipolar ICs for consumer audiovisual equipment In capital expansion,

Sony completed a new wing at Sony Nagasaki Corporation with a clean room for the manufacture of

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©1992 Dataquest Incorporated January—Reproduction Prohibited

Sony Corporation

SRAMs and other leading-edge semiconductor devices and a design center for large-scale integration

(LSI) technologies. In addition, Sony began operations at its first overseas semiconductor manufacturing facility, Sony Semiconductor (Thailand) Company Ltd., which will center on the assembly of bipolar ICs.

Sony ranks 19th in the total worldwide semiconductor market, while in Japan, Sony ranked 9th for the third year in a row, with a 4.0 percent market share. Japan represented 77.7 percent of Sony's semiconductor revenue for 1990.

Computer Software

In the area of research and development, Sony announced in October 1990 the successful development of the world's fastest large-scale gallium arsenide gate array. The device wiU be used in workstations, image-processing equipment, and other equipment requiring high-speed data processing capabihties.

Sony Computer Science Laboratory Inc. was established by Sony Corporation to develop distributed operating systems, programming langiiages, system architectures, and user interfaces.

Further Information

Dataquest estimates that Sony's 1990 worldwide semiconductor market share was 1.9 percent, with

U.S.$1.1 billion in revenue. Dataquest estimates that

For further information about the company's business segments, please contact the appropriate Dataquest industry services.

©1992 Dataquest Incorporated January—Reproduction Prohibited

0012422

Sony Corporation

Table 1

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

Five-Year Revenue

Percent Change

1987

3.4

-42.67

198S

10.4

202.02

Capital Expenditure

Percent of Revenue

1.0

9.33

R&D Expenditure

Percent of Revenue

Number of Employees

Revenue (U.S.$K)/Employee

Net Income

Percent Change

Exchange Rate (U.S.$1=¥)

0.6

18.55

0.8

9.27

47,583

72.15

0.1

-55.98

159.56

0.9

8.91

71,000

146.04

0.3

218.98

138.03

1991 Fiscal Year

Quarterly Revenue

Quarterly Profit

Qi

5.41

0.16

Q2

6.23

0.19

1989

16.7

41.94

1.7

10.05

1.1

6.62

78,900

212.01

0.6

112.61

128.25

1990

20.1

20.84

2.3

11.25

1.2

5.74

1991

25.6

27.11

95,600

210.76

0.7

27.23

142.93

Q3

7.84

0.39

Q4

6.34

0.11

Source: Sony Corporation

Anmial Reports

Dataquest (January 1992)

2.9

11.38

1.5

5.69

112,900

226.84

0.8

15.10

141.21

Table 2

Revenue by Geographic Region (Percent)

Region

United States

Japan

Europe

All Other Regions

1987

27

35

24

14

1988

28

35

23

14

1989

27

34

23

16

1990 1991

30 29

30 26

25 28

15 17

Source: Sony Corporation

Annual Reports

Dataquest (January 1992)

(X)12422

©1992 Dataquest Incorporated January—^Reproduction Prohibited

Sony Corporation

1990 SALES OFFICE LOCATIONS

(Includes sales subsidiaries only)

Asia/Pacific—19

Intemational—14

MANUFACTURING LOCATIONS

North America

Digital Audio Disc (United States)

CDs

Sony Engineering and Manufacturing of America

(United States)

TVs, CRTs, 32-bit workstations, 3.5-inch FDDs,

CD-ROM drives, monitors, audio speakers, factory automation equipment

Sony Magnetic Products Inc. (United States)

Magnetic tapes, flexible disks

Sony Microelectronics Corporation (United States)

Semiconductors

Sony Music Entertainment (United States)

Phonograph records, tapes, CDs

Sony Professional Products Company (United States)

Professional AV equipment

Sony USA (United States)

Electronic equipment

Europe

DADC Austria (Austria)

CDs

Sony (United Kingdom)

TVs, CRTs

Sony Espana (Spain)

TVs, VCRs

Sony France (France)

CD players, video cameras, VHS video decks

Sony-Wega Productions (United Kingdom)

TVs

Television Division Europe (France)

Development, design of TVs

AsialPacific

Aiwa Company (Japan)

High-fidelity audio systems, headphone stereos

Hagiwara Electronics (Japan)

TVMdeo equipment

Mac Precision Products (Japan)

Precision parts

Miyagi \^deo-Tech (Japan)

Magnetic tapes

Motomiya Denshi (Japan)

Trinitron gun, security systems, flat display tubes,

TV parts

Nakada Magnetics (Japan)

Ferrites

Sony Akebono Denshi (Japan)

Rrinted circuit boards

Sony Audio (Japan)

Audio, video, camera, and optical systems

Sony Bonson (Japan)

Tape recorders, flat TVs, radios

Sony Chemicals (Japan)

Magnetic tapes, chemical products

Sony Computer Science Lab (Japan)

R&D of computer systems/software

Sony Denshi (Japan)

TVs and parts

Sony Electronics (Japan)

Radiocassette tape recorders

Sony Ichinomiya (Japan)

VCRs, color TVs

Sony Inazawa (Japan)

Color CRTs

Sony Itakura (Japan)

CD players, radiocassette recorders

Sony Kisarazu (Japan)

VCRs, CD players

Sony Kohda (Japan)

Video equipment

Sony Kokubu Semiconductor (Japan)

Bipolar ICs, CCDs

Sony Magnescale (Japan)

Electronic measuring instruments

Sony Magnetic Products (Japan)

Magnetic tapes, ferrites, videotapes

Sony Minokama (Japan)

Video equipment

Sony Mizunami (Japan)

Color CRTs

Sony Nagasaki (Japan)

Semiconductors

Sony Oita (Japan)

Semiconductors

Sony Precision Engineering (Japan) ftecision parts for audio equipment for Sony's subsidiaries worldwide

Sony Semiconductor (Japan)

Bipolar ICs

©1992 Dataquest Incorporated January—^Reproduction Prohibited

0012422

Sony Corporation

Sony Shiroishi Semiconductor (Japan)

Semiconductors

Sony Soimd Tec (Japan)

Microphones, PA systems, furniture, hearing aids

Sony TV-Video (Japan)

Color TVs

Sony Tektronix (Japan)

Electronic measurements, displays, control instruments, computer graphics products

Sony Video Taiwan (Taiwan)

VCRs

Sound Magnetics (Japan)

Magnetic heads

Sound System (Japan)

VCRs, CD players

Taron Corporation (Japan)

Audio and video products

Tohkai Electronics (Japan)

PC boards

Toyo Radio (Japan)

Audio products

Video Magnetics (Japan)

Ferrites

ROW

Sony of Canada Ltd. (Canada)

Sony Pictures Entertainment (United States)

Sony Trans Com Systems Division (United States)

Sony USA Inc. (United States)

Europe

DADC Austria GesmbH (Austria)

Sony Belgium N.V. (Belgium)

Sony Broadcast & Communications Limited (United

IQngdom)

Sony Communication Products B.V. (Netherlands)

Sony Deutschland GmbH (Germany)

Sony Espana S.A. (Spain)

Sony Euro-Finance B.V. (Netherlands)

Sony Europa GmbH (Germany)

Sony France S.A. (France)

Sony GesmbH (Austria)

Sony Italia S.p.A. (Italy)

Sony Nederland B.V. ^etiierlands)

Sony Overseas S.A. (Switzerland)

Sony Portugal Lda. (Portugal)

Sony Scandinavia A/S (Denmark)

Sony (Schweiz) A.G. (Switzerland)

Sony Service Centre (Europe) N.V. (Belgium)

Sony (U.K.) Limited (United Kingdom)

Sony-Wega Productions GmbH (Germany)

Magneticos de Mexico (Mexico)

Magnetic tapes, floppy disks

Sony da Amazonia (Brazil)

VCRs

Sony de Venezuela (Venezuela)

Color TVs

Sony "V^deobras (Brazil)

Video cameras, video equipment

"N^deotec de Mexico (Mexico)

Video equipment

Asia/Pacific

SUBSIDIARIES

As of March 31, 1991, Sony had 625 consolidated subsidiaries. The list below gives the company's principal subsidiaries and affiliated con^anies as of

April 30, 1991.

North America

Digital Audio Disc Corporation (United States)

Materials Research Corporation (United States)

Sony Corporation of America (United States)

Sony Music Entertainment Inc. (United States)

Aiwa Co. Ltd. (Japan)

Akebono Electronics Inc. (Japan)

CBS/Sony Group Inc. (Japan)

Hasso Electronics Corporation (Japan)

Korea Toyo Radio Co. Ltd. (South Korea)

Max Precision Products Corporation (Japan)

Motomiya Denshi Corporation (Japan)

Sony (Australia) Pty. Limited (Australia)

Sony Asco Inc. (Japan)

Sony Bonson Corporation (Japan)

Sony Broadcast Products Corporation (Japan)

Sony Chemicals Corporation (Japan)

Sony Corporation of Hong Kong Limited (Hong

Kong)

Sony Creative Products Inc. (Japan)

Sony Denshi Corporation (Japan)

Sony Electronics (Malaysia) Sdn. Bhd. (Malaysia)

Sony Energytec Inc. (Japan)

Sony Engineering Corporation (Japan)

Sony Enterprise Co. Ltd. (Japan)

Sony Finance International Inc. (Japan)

Sony Ichinomiya Corporation (Japan)

Sony Inazawa Corporation (Japan)

Sony International (Singapore) Pte. Ltd. (Singapore)

0012422

©1992 Dataquest Incorporated January—Reproduction Prohibited

Sony Corporation

Sony Kisarazu Corporation (Japan)

Sony Kohda Corporation (Japan)

Sony Kokubu Semiconductor Corporation (Japan)

Sony Logistics (Singapore) Pte. Ltd. (Singapore)

Sony Logistics Corporation (Japan)

Sony Magnescale Inc. (Japan)

Sony Magnetic Products Inc. (Japan)

Sony Magnetic Products (Thailand)

Sony Magnetic Tape Sales Corporation (Japan)

Sony Minokamo Corporation (Japan)

Sony Mizunami Corporation (Japan)

Sony Nagasaki Corporation (Japan)

Sony Oita Corporation (Japan)

Sony PCL Inc. (Japan)

Sony Plaza Co. Ltd. (Japan)

Sony Precision Engineering Center (Singapore) Pte.

Ltd. (Singapore)

Sony Procurement Service Corporation (Japan)

Sony Pruco Life Insurance Co. Ltd. (Japan)

Sony Service Co. Ltd. (Japan)

Sony Shiroishi Semiconductor Inc. (Japan)

Sony Shoji Corporation (Japan)

Sony Singapore Pte. Ltd. (Singapore)

Sony Sound Tec Corporation (Japan)

Sony TV Video (Malaysia) Sdn. Bhd. (Malaysia)

Sony Trading Corporation (Japan)

Sony Tsukuba Corporation (Japan)

Sony Video Taiwan Co. Ltd. (Taiwan)

Sony/Tektronix Corporation (Japan)

Sound System Corporation (Japan)

Taron Corporation (Japan)

Tohkai Electronics Corporation (Japan)

ROW

Magneticos de Mexico, S.A. de C.V. (Mexico)

Sony CSA, S.A. (Panama)

Sony Chile Ltda. (Chile)

Sony Corporation of Panama S.A. (Panama)

Sony da Amazonia Ltda. (Brazil)

Sony de Venezuela S.A. (Venezuela)

Sony Saudi Arabian Company Ltd. (Saudi Arabia)

ALLIANCES, JOINT VENTURES, AND

LICENSING AGREEMENTS

Apple Computer Inc.

Sony wiU manufacture major portions of the laptop

Macintosh computer under development by Apple.

Bell Microproducts Inc.

BeU added Sony's read-write optical drives to its current franchise list.

Digital Equipment Corporation

Digital and Sony entered an agreement through which Digital will produce optical subsystems based on Sony optical disk drives.

Matsushita Electric Industrial

Matsushita Electric Industrial and seven other companies (Kyushu Matsushita Electric, Sega

Enterprises, Chinon Industries, Casio Computer,

Ricoh, Canon, and Sanyo Electric) wiU make CD-

ROMs based on Sony specifications.

Nihon Silicon Graphics K.K. (NSG)

Sony and NSG signed a marketing agreement in wliich Sony will market a high-definition computer graphics system for NSG's Iris 4-D Power "N^ion graphics workstation.

Ricoh Company

Ricoh will provide its Design Base Jr. threedimensional model-generation software package to

Sony to be bundled with Sony's new NWB-236 processor.

SGS-Thomson Microelectronics

SGS-Thomson Microelectronics wiU secondsource a chip set for high-speed serial digital video transmission developed by Sony.

Software Toolworks

Sony and Software Toolworks signed a licensing agreement allowing Sony to use special versions of

Software Toolworks' CD-ROM software with

Sony's CD-ROM optical disk player.

VideoLogic Inc.

Sony signed an agreement with \^deoLogic allowing Sony to sell multimedia products through computer resellers and video dealers.

Wave Front Technologies

Wave Front wiU supply Sony with its TPV computer graphics software, to be bimdled with Sony's latest three-dimensional computer graphics board, the NWB-256.

J991

Advanced Micro Devices Inc. (AMD)

Sony and AMD signed a broad patent and copyright cross-licensing agreement covering wafer processes, design, and architectures for integrated circuits.

1990

Exabyte Corporation

Exabyte renewed a supply agreement with Sony under which Sony wiU supply Exabs^te with

5.2S-inch form factor tape drives.

8

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Sony Corporation

Compression Labs Inc.

Sony entered into a reseller agreement with Compression Labs under which Sony will resell Compression Labs video coder/decoders. The agreement marks Sony's entry into the U.S. videoconferencing market

Apple Computer Inc.

Sony signed a contract with Apple to supply

40MB rigid disk drives for the Macintosh.

Hewlett-Packard Company (HP)

Sony agreed to supply 5.25-inch rewritable optical disk storage products to HP for the new HP

C17QA Optical Disk Library System.

Texas Instruments

Texas Instruments agreed to produce semiconductors in Europe for Sony on a consignment basis.

NJK Ltd.

NJK Ltd. signed as a distributor for Sony's NEWS workstations.

Pinnacle Micro

Sony announced plans to supply $1 million

(¥128.3 nuUion) worth of 5.25-inch rewritable optical disk storage products to Pinnacle Micro.

Fujitsu

Sony and Fujitsu jointly developed a trial common rule to develop CD-ROM XA software for their personal computers.

Advanced Micro Devices (AMD)

Sony and AMD entered a joint venture agreement for an SRAM memory product

1988

Oracle Corporation

Oracle' agreed to supply the Oracle relational database management systems and applications development software products for the Sony

NEWS family of UNIX workstations.

NoveU K.K.

Novell K.K. was formed as a joint marketing venture to sell NetWare products in Japan. Novell and six partners—Canon, Fujitsu, NEC, Softbank,

Sony, and Toshiba—Whelped fund the project

Daewoo Electronics

Sony and Daewoo agreed to jointiy develop 256K

SRAMs, 64K SRAMs, 8- and 16-bit MPUs, and other microchips.

Engineering Mechanics Research (EMR)

Sony and EMR agreed to a joint venture in CAE software technology and sales. EMR is marketing

Sony's engineering workstations (EWSs) that employ its software in the United States while

Sony supports sales agents of EMR's software in

Japan by supplying its EWS.

Advanced Micro Devices (AMD)

AMD agreed to enter a joint manufacturing and educational pact with Sony to manufacture

SRAMs.

N.V. Philips Gloeilampenfabrieken

Sony and Philips agreed to a joint development of extended architecture CD-ROMs for audio use.

Summus Computer Systems

Summus agreed to sell, distribute, and service

4mm DAT drives from Sony. Summus agreed to be an original equipment manufacturer (OEM) of

Sony and to integrate hardware and software that offers turnkey storage subsystems for the Apple

Macintosh, Digital, and Sun Microsystems Inc. PC markets.

1989

Motorola Inc.

Sony Microsystems agreed to incorporate dual

Motorola 68030 MPUs in high-end models of

Sony's NEWS UNIX workstation family.

Symbolics

Sony and SymboUcs completed a sales agreement for Sony's workstations in the U.S. market Sony

Microsystems began supplying its workstations to

Symbolics in May 1988 for sale in the United

States under the SymboUcs brand name. The two companies agreed to jointiy develop a new model of workstation using Symbolics' Al chips.

Parallex Graphics Inc.

Sony Microsystems agreed to incorporate

Parallex's color graphics and video graphics controllers in Sony's workstations.

Texas Instruments Inc. (TI)

TI Japan and Sony jointly developed the

CXD1144AP high-performance digital filter LSI for digital audio equipment

Matsushita Philips

Sony, Matsushita, and Philips agreed to develop, manufacture, and maricet interactive compact disk drives.

Advanced Micro Devices (AMD)

Sony and AMD agreed to a sales tie-up for Sony's workstations in South Korea.

0012422

©1992 Dataquest Incorporated January—Reproduction Prohibited

Sony Corporation

MERGERS AND ACQUISITIONS KEY OFFICERS

1991

Akio Morita

Chairman and representative director

National Broadcasting Company

Sony purchased NBC's 50 percent stake in RCA/

Columbia Home \^deo, resulting in Sony's complete ownership of the company.

Norio Ohga

President and chief executive officer

Masaaki Morita

Deputy president

1989

Trans Com Systems Division

Sony purchased all assets and liabilities of Trans

Com Systems, a division of Simdstrand Corporation. Trans Com designed, manufactured, and installed in-flight AV entertainment systems in commercial aircraft worldwide.

Nobuo Kanoi

Deputy president

Ken Iwaki

Deputy president

Tsunao Hashimoto

Deputy president

Materials Research Corporation (MRC)

Sony acquired all of the outstanding shares of common stock of MRC and its affihates. MRC manufactured and suppUed sputtering and etching equipment, high-purity metals, and ceramics.

PRINCIPAL INVESTORS

Columbia Pictures Entertainment

Sony acquired all of the outstanding shares of common stock of Columbia Pictures, which was primarily in the filmmaking business.

Information is not available

Guber-Peters Entertainment Company (GPEC)

Sony acquired GPEC, which was in the filmmaking business.

FOUNDERS

Masaru Ilsuka

AMo Morita

1988

CBS Records Inc.

Sony purchased CBS Records for U.S.$2 billion

(¥256.5 billion) and held 100 percent of the shares.

(The acquisition was made using U.S. currency.)

10

©1992 Dataquest Incorporated January—Reproduction Prohibited

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Sony Corporation

Table 3

Balance Sheet

Fiscal Year Ending March 31

(BilUons of U.S. Dollars)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained Earnings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

Exchange Rate (U.S.$1:^

1987*

1.0

1.6

0.8

1.9

0.5

5.8

2.2

0.9

8.8

3.7

0.9

0.5

5.0

0

0.1

0.4

3.4

3.8

8.8

159.56

1988

1.6

2.4

0.7

2.4

0.7

7.8

3.1

2.6

13.5

6.8

1.4

0.6

8.8

0

0.2

0.4

4.1

4.7

13.5

138.03

1989

8.7

1.7

0.8

11.2

0

2.3

3.4

0.7

3.8

1.0

11.2

4.2

3.0

18.4

0.9

1.5

4.8

7.2

18.4

128.25

1990

3.2

5.8

0.4

4.8

1.2

15.4

6.1

9.1

30.6

14.0

4.5

2.0

20.5

0

1.9

3.3

4.9

10.1

30.6

142.93

1991

3.1

5.8

0.2

5.2

1.5

15.8

7.4

9.4

32.6

14.9

4.9

2.3

22.1

0

2.1

2.9

5.4

10.5

32.6

141.21

*Fbr die five-month period ending Maich 31, 1987. Effective Maich 31, 1987, the paient conq)8ny Source: Sony Coipoiatlon and ahnost all subsidiaries and affiliates changed their fiscal yeai-end firom Animal Reports

October 31 to Maich 31. Accordingly, (he fiscal period ended Maich 31, 1987, inclnded Dataquest (Januaiy 1992) only 5 mondis of operations, w h « ^ other fiscal yeais consisted of 12 months.

0012422

©1992 Dataquest Incorporated January—Reproduction Prohibited

11

Sony Corporation

Table 4

Consolidated Income Statement

Fiscal Year Ending March 31

(Billions of U.S. Dollars, except Per Share Data)

Consolidated Income Statement

Revenue

Japanese Revenue

Non-Japanese Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Thousands

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate ( U . S . $ 1 ^

1987*

3.4

1.1

2.3

2.6

0.8

0.8

0.6

0.1

4.36

58.00

0.1

231,236

0.34

0.12

16.50

159.56

1988

10.4

3.5

6.9

7.7

0.9

2.4

1.0

0.5

5.14

56.00

0.3

238,769

1.04

0.32

19.71

138.03

*FoT the five-month period ending March 31, 1987. Effective Match 31, 1987, the parent conq>aDy and almost all subsidiaries and affiliates changed their fiscal year-end from

October 31 to March 31. Accordingly, the fiscal period ended March 31, 1987, included only 5 months of operations, whereas other fiscal years consisted of 12 numths.

1989

16.7

5.7

11.0

11.5

1.1

4.4

1.7

1.3

7.71

56.00

0.6

282,603

1.88

0.28

25.57

128.25

1990

20.1

6.1

14.1

13.6

1.2

5.0

2.3

1.6

7.90

54.00

0.7

331,929

2.15

0.32

30.50

142.93

1991

25.6

6.7

18.9

17.7

1.5

6.3

2.9

1.9

7.32

51.00

0.8

338,593

2.02

0.32

30.88

141.21

Source: Sony Coiporation

Annual Reports

Dataquest (Jamiaiy 1992)

12

©1992 Dataquest Incorporated January—Reproduction Prohibited

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Sony Corporation

Table 5

Balance Sheet

Fiscal Year Ending March 31

(Billions of Yen)

Balance Sheet

Cash

Receivables

Marketable Securities

Inventory

Other Current Assets

Total Current Assets

Net Property, Plants

Other Assets

Total Assets

Total Current Liabilities

Long-Term Debt

Other Liabilities

Total Liabilities

Converted Preferred Stock

Common Stock

Other Equity

Retained E^unings

Total Shareholders' Equity

Total Liabilities and

Shareholders' Equity

Exchange Rate (U.S.$1=¥)

1987*

152.9

256.6

132.2

302.9

77.6

922.2

343.1

145.9

1,411.2

587.0

143.4

72.1

802.5

0

12.0

56.5

540.2

608.7

1,411.2

159.56

1988

218.0

325.7

99.4

334.7

99.1

1,076.9

426.3

363.7

1,866.9

945.0

196.0

76.3

1,217.3

0

23.7

60.9

565.0

649.6

1,866.9

138.03

1989

297.9

433.4

91.1

483.7

127.7

1,433.8

544.7

386.2

2,364.7

1,119.0

220.8

98.2

1,438.0

0

114.6

195.6

616.5

926.7

1990

451.7

832.9

54.8

693.0

169.2

2,201.6

868.1

1,300.4

4,370.1

1,995.9

646.0

281.3

2,923.2

0

278.0

473.4

695.5

1,446.9

1991

442.9

815.1

33.5

731.7

211.2

2,234.4

1,046.8

1,321.2

4,602.4

2,104.6

694.5

327.0

3,126.1

0

296.4

413.5

766.4

1,476.3

2,364.7

128.25

4,370.1

142.93

4,602.4

141.21

Sonice: Sony Cotpoiation

Aimual Reports

Dataqoest (Jauuaiy 1992)

0012422

©1992 Dataquest Licoiporated January—^Reproduction Prohibited

13

Sony Corporation

Table 6

Consolidated Income Statement

Fiscal Year Ending March 31

(Billions of Yen, except Per Share Data)

Consolidated Income Statement

Revenue

Japanese Revenue

Non-Japanese Revenue

Cost of Sales

R&D Expense

SG&A Expense

Capital Expense

Pretax Income

Pretax Margin (%)

Effective Tax Rate (%)

Net Income

Shares Outstanding, Thousands

Per Share Data

Earnings

Dividend

Book Value

Exchange Rate ( U . S . $ 1 ^

1986

547.8

177.5

370.3

407.8

131.2

131.0

101.6

23.6

4.36

58.00

13.3

231,236

54.2

18.5

0

159.56

143.8

44.6

0

138.03

*For the five-month period ending March 31, 1987. Effective March 31, 1987, the parent coiiq)any and almost all subsidiaries and afiSUates changed their fiscal year-end from

October 31 to March 31. Accordingly, the fiscal period ended March 31, 1987, included only S months of operations, whereas other fiscal years consisted of 12 months.

1987

1,431.2

479.4

951.8

1,064.6

127.5

336.3

133.5

73.5

5.14

56.00

36.7

238,769

1988

2,145.3

731.3

1,414.0

1,475.4

142.1

565.6

215.6

165.5

7.71

56.00

72.5

282,603

219.7

40.5

0

128.25

1989

2,879.9

869.5

2,010.4

1,938.0

165.2

712.0

324.0

227.4

7.90

54.00

102.8

331,929

279.0

45.5

0

142.93

Source: Sony Corporation

Aniiual Reports

Dataquest (January 1992)

285.9

45.5

0

141.21

1990

3,616.5

952.5

2,664.0

2,505.6

205.8

887.8

411.7

264.6

7.32

51.00

116.9

338,593

Table 7

Key Financial Ratios

Fiscal Year Ending March 31

Key Financial Ratios

Liquidity

Current (Hmes)

Total Assets/Equity (%)

Current Liabilities/Equity (%)

Total Liabilities/Equity (%)

Profitability (%)

Return on Assets

Return on Equity

Profit Margin

Other Key Ratios

R&D Spending % of Revenue

Capital Spending % of Revenue

Employees

Revenue (¥M)/Employee

Capital Spendine % of Assets

Exchange Rate (U.S.$1=*)

1987

1.57

231.85

96.44

131.84

0.94

2.19

2.43

23.95

18.55

47,583

11.51

7.20

159.56

1988

1.14

287.39

145.47

187.39

2.24

5.83

2.56

8.91

9.33

71,000

20.16

7.15

138.03

1989

1.28

255.17

120.75

155.17

3.43

9.20

3.38

6.62

10.05

78,900

27.19

9.12

128.25

1990

1.10

302.03

137.94

202.03

3.05

8.66

3.57

5.74

11.25

95,600

30.12

7.41

142.93

1991

1.06

311.75

142.56

211.75

2.23

6.96

2.84

4.57

8.96

112,900

32.03

7.04

141.21

Source: Sony Corporation

Aniuial Reports

Dataquest (Jamiary 1992)

14

©1992 Dataquest Incorporated January—^Reproduction Prohibited

0012422

Telefunken Electronic GmbH

BACKGROUND AND OVERVIEW

AEG-Telefunken

AEG-Telefunken was founded in 1893 and quickly grew to become West Germany's second-largest electrical group. Early in 1970, the Company started to face financial difficulties after it lost a nuclear power contract, and in September 1978, Siemens took over AEG-Telefunken's nuclear power activities by buying out AEG-Telefunken's stake in Kraftenwerk-Union.

AEG-Telefunken's semiconductor division, based in Heilbronn, West Germany, suffered tremendously during this period. Although the division had many good designs—for example, it developed the first European microprocessor, the CP3-F—it was increasingly starved of funds from its ailing parent company. As a result, many new development programs had to be postponed or scrapped. In addition, the division was required to behave more like a captive supplier, building semiconductor devices that its parent wanted for its own end-equipment production. Many of these devices were relatively unsuccessful on the open semiconductor market.

In 1979, faced with near bankruptcy, AEG-Telefunken was rescued by a group of

West German banks after the West German government refused to supply it with direct aid. The prime purpose of this rescue plan was to provide the Company with protection from its creditors while it carried out a major reorganization of its activities.

It was against this background, coupled with the global semiconductor recession of the early 1980s, that the semiconductor division sought to reestablish itself. This was achieved by forming an alliance with United Technologies Corporation (UTC) of

Hartford, Connecticut, and its Texas-based subsidiary, Mostek Corporation.